Sumitomo Rubber Industries, Ltd., Receipt of Petition for Decision of Inconsequential Noncompliance, 44488-44490 [2017-20248]

Download as PDF 44488 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices group. Representatives of the Administrator and Director serve alternating 1-year terms as chairman of the advisory group. In accordance with the Act, the advisory group provides ‘‘advice, information, and recommendations to the Administrator and the Director— (1) On the implementation of this title [the Act] and the amendments made by this title; (2) On commonly accepted quiet aircraft technology for use in commercial air tour operations over a national park or tribal lands, which will receive preferential treatment in a given air tour management plan; (3) On other measures that might be taken to accommodate the interests of visitors to national parks; and (4) At the request of the Administrator and the Director, safety, environmental, and other issues related to commercial air tour operations over a national park or tribal lands.’’ Membership The current NPOAG is made up of one member representing general aviation, three members representing the commercial air tour industry, four members representing environmental concerns, and two members representing Native American interests. Current members of the NPOAG are as follows: Melissa Rudinger representing general aviation; Alan Stephen, Matt Zuccaro, and Mark Francis representing commercial air tour operators; Rob Smith representing environmental interests with three open seats; and Leigh Kuwanwisiwma and Martin Begaye representing Native American tribes. Selections The persons selected to fill the current open seats representing environmental concerns are Dick Hingson, Les Blomberg, and John Eastman. These newly selected members’ 3-year terms will begin on the publication date of this notice. Issued in Hawthorne, CA, on September 13, 2017. Keith Lusk, Program Manager, Special Programs Staff, Western-Pacific Region. [FR Doc. 2017–20332 Filed 9–21–17; 8:45 am] BILLING CODE 4910–13–P VerDate Sep<11>2014 18:11 Sep 21, 2017 Jkt 241001 DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration [Docket No. NHTSA–2017–0071; Notice 1] Sumitomo Rubber Industries, Ltd., Receipt of Petition for Decision of Inconsequential Noncompliance National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Receipt of petition. AGENCY: Sumitomo Rubber Industries, Ltd. (SRI), on behalf of itself and its subsidiary Sumitomo Rubber North America, Inc. (SRNA), have determined that certain Falken truck tires do not fully comply with Federal Motor Vehicle Safety Standard (FMVSS) No. 119, New Pneumatic Tires for Motor Vehicles with a GVWR of more than 4,536 kilograms (10,000 pounds) and Motorcycles. SRI filed a noncompliance report dated June 20, 2017. SRI also petitioned NHTSA on July 10, 2017, for a decision that the subject noncompliance is inconsequential as it relates to motor vehicle safety. DATES: The closing date for comments on the petition is October 23, 2017. ADDRESSES: Interested persons are invited to submit written data, views, and arguments on this petition. Comments must refer to the docket and notice number cited in the title of this notice and submitted by any of the following methods: • Mail: Send comments by mail addressed to U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590. • Hand Delivery: Deliver comments by hand to U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590. The Docket Section is open on weekdays from 10 a.m. to 5 p.m. except Federal Holidays. • Electronically: Submit comments electronically by logging onto the Federal Docket Management System (FDMS) Web site at https:// www.regulations.gov/. Follow the online instructions for submitting comments. • Comments may also be faxed to (202) 493–2251. Comments must be written in the English language, and be no greater than 15 pages in length, although there is no limit to the length of necessary attachments to the comments. If SUMMARY: PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 comments are submitted in hard copy form, please ensure that two copies are provided. If you wish to receive confirmation that comments you have submitted by mail were received, please enclose a stamped, self-addressed postcard with the comments. Note that all comments received will be posted without change to https:// www.regulations.gov, including any personal information provided. All comments and supporting materials received before the close of business on the closing date indicated above will be filed in the docket and will be considered. All comments and supporting materials received after the closing date will also be filed and will be considered to the fullest extent possible. When the petition is granted or denied, notice of the decision will also be published in the Federal Register pursuant to the authority indicated at the end of this notice. All comments, background documentation, and supporting materials submitted to the docket may be viewed by anyone at the address and times given above. The documents may also be viewed on the Internet at https:// www.regulations.gov by following the online instructions for accessing the dockets. The docket ID number for this petition is shown in the heading of this notice. DOT’s complete Privacy Act Statement is available for review in a Federal Register notice published on April 11, 2000 (65 FR 19477–78). SUPPLEMENTARY INFORMATION: I. Overview: Sumitomo Rubber Industries, Ltd. (SRI), on behalf of itself and its subsidiary Sumitomo Rubber North America, Inc. (SRNA), have determined that certain Falken truck tires do not fully comply with paragraph S6.5(f) of FMVSS No. 119, New Pneumatic Tires for Motor Vehicles with a GVWR of more than 4,536 kilograms (10,000 pounds) and Motorcycles. SRI filed a noncompliance report dated June 20, 2017, pursuant to 49 CFR part 573, Defect and Noncompliance Responsibility and Reports. SRI also petitioned NHTSA on July 10, 2017, pursuant to 49 U.S.C. 30118(d) and 30120(h) and 49 CFR part 556, for an exemption from the notification and remedy requirements of 49 U.S.C. Chapter 301 on the basis that this noncompliance is inconsequential as it relates to motor vehicle safety. This notice of receipt of SRI and SRNA’s petition is published under 49 U.S.C. 30118 and 30120 and does not represent any agency decision or other exercise of judgment concerning the merits of the petition. E:\FR\FM\22SEN1.SGM 22SEN1 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices II. Tires Involved: Approximately 5,408 Falken truck tires (Model RI151), size 225/70R19.5, manufactured between October 17, 2016, and April 28, 2017, are potentially involved. III. Noncompliance: SRI explains that the noncompliance is that the number of plies indicated on the sidewall of the subject tires do not match the actual number of plies in the tire construction, and therefore, do not meet all applicable requirements specified in paragraph S6.5(f) of FMVSS No. 119. Specifically, the tires are marked with ‘‘TREAD 5 PLIES STEEL’’ whereas the correct marking should be ‘‘TREAD 4 PLIES STEEL.’’ IV. Rule Text: Paragraph S6.5 of FMVSS No. 119 states, in pertinent part: S6.5 Tire Markings. Except as specified in this paragraph, each tire shall be marked on each sidewall with the information specified in paragraphs (a) through (j) of this section . . . * * * * * (f) The actual number of plies and the composition of the ply cord material in the sidewall and, if different, in the tread area. V. Summary of SRI’s Petition: As background, On June 12, 2017, SRI discovered that a population of 5,408 Falken brand truck tires, Model RI151, size 225/70Rl9.5 128/126L, manufactured from October 17, 2016 through April 28, 2017 at the company’s plant in Miyazaki, Japan, were marked with the incorrect number of plies. On July 13, 2017, SRNA was informed of the marking error, shipments of the subject tires were halted, and the company determined that the subject tires failed to comply with the tire labeling requirements of Federal motor vehicle safety standard (FMVSS) No. 119, S6.5. Specifically, the subject tires were incorrectly marked ‘‘TREAD 5 PLIES STEEL,’’ although they should have been marked ‘‘TREAD 4 PLIES STEEL.’’ Accordingly, these tires do not conform to the marking requirements of FMVSS No. 119, S6.5. The subject tires comply with the performance requirements and other marking requirements of FMVSS No. 119. SRI submitted a Part 573 noncompliance report on June 20, 2017. NHTSA Recall No. l7T–012. SRI corrected the production molds. SRI began manufacturing correct versions of these tires on June 17, 2017. SRI described the subject noncompliance and stated its belief that the noncompliance is inconsequential as it relates to motor vehicle safety. In support of its petition, SRI submitted the following reasoning: Under the Safety Act, each Federal motor vehicle safety standard VerDate Sep<11>2014 18:11 Sep 21, 2017 Jkt 241001 promulgated by the National Highway Traffic Safety Administration (NHTSA) must be ‘‘practicable, meet the need for motor vehicle safety, and be stated in objective terms.’’ 49 U.S.C. 3011l(a). The Safety Act defines ‘‘motor vehicle safety’’ as: the performance of a motor vehicle or motor vehicle equipment in a way that protects the public against unreasonable risk of accidents occurring because of the design, construction or performance of a motor vehicle, and against unreasonable risk of death or injury in an accident, and includes nonoperational safety of a motor vehicle. 49 U.S.C. 30102(a)(8) (emphasis added). The Safety Act exempts manufacturers from the Safety Act’s notice and remedy requirements when the Secretary of Transportation determines that a defect or noncompliance is inconsequential as it relates to motor vehicle safety. See 49 U.S.C. 30118(d). Section 30118(d) demonstrates Congress’s acknowledgment that there are cases where a manufacturer has failed to comply with a safety standard, yet the impact on motor vehicle safety is so slight that an exemption from the notice and remedy requirements of the Safety Act is justified. NHTSA has stated that the relevant consideration in evaluating an inconsequentiality petition is ‘‘whether an occupant who is affected by the noncompliance is likely to be exposed to a significantly greater risk than an occupant in a compliant vehicle.’’ 69 FR 19897, 19900 (April 14, 2004) (emphasis added). In the context of tires specifically, the agency has similarly stated that it ‘‘believes that one measure of inconsequentiality to motor vehicle safety is that there is no effect of the noncompliance on the operational safety of vehicles on which the tires are mounted. Another measure of inconsequentiality . . . is the safety of people working in the tire retread, repair and recycling industries.’’ See 72 FR 18210 (April 17, 2017) (granting petition for determination of inconsequential noncompliance with respect to Goodyear tires marked with the incorrect number of plies). We believe the labeling noncompliance at issue here is inconsequential to motor vehicle safety. The subject Falken tires were manufactured as designed and meet or exceed all applicable FMVSS No. 119 performance standards. Furthermore, all of the sidewall markings related to tire service (load capacity, corresponding inflation pressure, etc.) are correct and the tires correctly show that they contain steel plies. SRI does not believe PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 44489 the mislabeling of these tires presents a safety concern for consumers or retreading and recycling personnel. As noted above, the affected tire mold has been corrected and tires produced on and after June 17, 2017, are marked with the correct number of plies. NHTSA has previously granted petitions involving similar noncompliances. In the most recent of these, the agency explained: Although tire construction affects the strength and durability of tires, neither the agency nor the tire industry provides information relating tire strength and durability to the number of plies and types of ply cord material in the tread sidewall. Therefore, tire dealers and customers should consider the tire construction information along with other information such as the load capacity, maximum inflation pressure, and tread wear, temperature, and traction ratings, to assess performance capabilities of various tires. In the agency’s judgement, the incorrect labeling of the tire construction information will have an inconsequential effect on motor vehicle safety because most consumers do not base tire purchases or vehicle operation parameters on the number of plies in a tire. See 72 FR 18210 (April 17,2017). Regarding potential safety risks to the tire service industry, the agency concluded that a misstatement of the number of plies ‘‘will have no measurable effect on the safety of the tire retread, repair, and recycling industries. The use of steel cord construction in the sidewall and tread is the primary safety concern of these industries. In this case, because the sidewall markings indicate that some steel plies exist in the tire sidewall, this potential safety concern does not exist.’’ Id. As noted above, the markings on the subject tires correctly indicate that they contain steel plies (although the number is misstated as 5 instead of 4). NHTSA also granted similar petitions involving tires manufactured by Cooper Tire and Goodyear (Dunlop). See 74 FR 10804 (March 12, 2009) (granting petition submitted by Goodyear where tires were labeled ‘‘Tread 3 Polyester + 2 Steel,’’ whereas the correct marking should have been ‘‘Tread 2 Polyester + 2 Steel + 2 Polyester’’); and 82 FR 17075 (April 7, 2017) (granting petition submitted by Cooper Tire & Rubber Company where tires were marked ‘‘TREAD 1 PLY NYLON + 2 PLY STEEL + 2 PLY POLYESTER,’’ whereas the correct marking should have been ‘‘TREAD 1 PLY NYLON + 2 PLY STEEL + 1 PLY POLYESTER.’’ SRI is not aware of any warranty claims, field reports, customer complaints, legal claims, or any incidents or injuries related to the subject condition. E:\FR\FM\22SEN1.SGM 22SEN1 44490 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices SRI concluded by expressing the belief that the subject noncompliance is inconsequential as it relates to motor vehicle safety, and that its petition to be exempted from providing notification of the noncompliance, as required by 49 U.S.C. 30118, and a remedy for the noncompliance, as required by 49 U.S.C. 30120, should be granted. NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and 30120(h)) that permit manufacturers to file petitions for a determination of inconsequentiality allow NHTSA to exempt manufacturers only from the duties found in sections 30118 and 30120, respectively, to notify owners, purchasers, and dealers of a defect or noncompliance and to remedy the defect or noncompliance. Therefore, any decision on this petition only applies to the subject tires that SRI no longer controlled at the time it determined that the noncompliance existed. However, any decision on this petition does not relieve equipment distributors and dealers of the prohibitions on the sale, offer for sale, or introduction or delivery for introduction into interstate commerce of the noncompliant tires under their control after SRI notified them that the subject noncompliance existed. Authority: (49 U.S.C. 30118, 30120: delegations of authority at 49 CFR 1.95 and 501.8) Jeffrey M. Giuseppe, Director, Office of Vehicle Safety Compliance. [FR Doc. 2017–20248 Filed 9–21–17; 8:45 am] BILLING CODE 4910–59–P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request for Regulation Project Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. AGENCY: The Internal Revenue Service, as part of its effort to reduce paperwork and respondent burden, invites the general public and Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. The IRS is soliciting comments concerning Treatment of Gain From the Disposition of Interest in Certain Natural Resource Recapture Property by S Corporations and Their Shareholders. SUMMARY: VerDate Sep<11>2014 18:11 Sep 21, 2017 Jkt 241001 Written comments should be received on or before November 21, 2017 to be assured of consideration. ADDRESSES: Direct all written comments to L. Brimmer, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224. Requests for additional information or copies of the information collection should be directed to LaNita Van Dyke, or at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet, at Lanita.VanDyke@irs.gov. SUPPLEMENTARY INFORMATION: Title: Treatment of Gain From the Disposition of Interest in Certain Natural Resource Recapture Property by S Corporations and Their Shareholders. OMB Number: 1545–1493. Regulation Project Number: T.D. 8684. Abstract: This regulation prescribes rules under Code section 1254 relating to the treatment by S corporations and their shareholders of gain from the disposition of natural resource recapture property and from the sale or exchange of S corporation stock. Section 1.1254– 4(c)(2) of the regulation provides that gain recognized on the sale or exchange of S corporation stock is not treated as ordinary income if the shareholder attaches a statement to his or her return containing information establishing that the gain is not attributable to section 1254 costs. Current Actions: There is no change to this existing regulation. Type of Review: Extension of a currently approved collection. Affected Public: Business or other forprofit organizations, and individuals. Estimated Number of Respondents: 1,000. Estimated Time per Respondent: 1 hour. Estimated Total Annual Burden Hours: 1,000. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Request for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of DATES: PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Approved: September 13, 2017. L. Brimmer, Senior Tax Analyst. [FR Doc. 2017–20241 Filed 9–21–17; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request for Form 8823 Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. AGENCY: The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently, the IRS is soliciting comments concerning Form 8823, LowIncome Housing Credit Agencies Report of Noncompliance or Building Disposition. SUMMARY: Written comments should be received on or before November 21, 2017 to be assured of consideration. ADDRESSES: Direct all written comments to, L. Brimmer, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224. Requests for additional information or copies of the form and instructions should be directed to, LaNita Van Dyke, or through the internet at LanitaVanDyke@irs.gov. SUPPLEMENTARY INFORMATION: Title: Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. DATES: E:\FR\FM\22SEN1.SGM 22SEN1

Agencies

[Federal Register Volume 82, Number 183 (Friday, September 22, 2017)]
[Notices]
[Pages 44488-44490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20248]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2017-0071; Notice 1]


Sumitomo Rubber Industries, Ltd., Receipt of Petition for 
Decision of Inconsequential Noncompliance

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Receipt of petition.

-----------------------------------------------------------------------

SUMMARY: Sumitomo Rubber Industries, Ltd. (SRI), on behalf of itself 
and its subsidiary Sumitomo Rubber North America, Inc. (SRNA), have 
determined that certain Falken truck tires do not fully comply with 
Federal Motor Vehicle Safety Standard (FMVSS) No. 119, New Pneumatic 
Tires for Motor Vehicles with a GVWR of more than 4,536 kilograms 
(10,000 pounds) and Motorcycles. SRI filed a noncompliance report dated 
June 20, 2017. SRI also petitioned NHTSA on July 10, 2017, for a 
decision that the subject noncompliance is inconsequential as it 
relates to motor vehicle safety.

DATES: The closing date for comments on the petition is October 23, 
2017.

ADDRESSES: Interested persons are invited to submit written data, 
views, and arguments on this petition. Comments must refer to the 
docket and notice number cited in the title of this notice and 
submitted by any of the following methods:
     Mail: Send comments by mail addressed to U.S. Department 
of Transportation, Docket Operations, M-30, West Building Ground Floor, 
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: Deliver comments by hand to U.S. Department 
of Transportation, Docket Operations, M-30, West Building Ground Floor, 
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. The 
Docket Section is open on weekdays from 10 a.m. to 5 p.m. except 
Federal Holidays.
     Electronically: Submit comments electronically by logging 
onto the Federal Docket Management System (FDMS) Web site at https://www.regulations.gov/. Follow the online instructions for submitting 
comments.
     Comments may also be faxed to (202) 493-2251.
    Comments must be written in the English language, and be no greater 
than 15 pages in length, although there is no limit to the length of 
necessary attachments to the comments. If comments are submitted in 
hard copy form, please ensure that two copies are provided. If you wish 
to receive confirmation that comments you have submitted by mail were 
received, please enclose a stamped, self-addressed postcard with the 
comments. Note that all comments received will be posted without change 
to https://www.regulations.gov, including any personal information 
provided.
    All comments and supporting materials received before the close of 
business on the closing date indicated above will be filed in the 
docket and will be considered. All comments and supporting materials 
received after the closing date will also be filed and will be 
considered to the fullest extent possible.
    When the petition is granted or denied, notice of the decision will 
also be published in the Federal Register pursuant to the authority 
indicated at the end of this notice.
    All comments, background documentation, and supporting materials 
submitted to the docket may be viewed by anyone at the address and 
times given above. The documents may also be viewed on the Internet at 
https://www.regulations.gov by following the online instructions for 
accessing the dockets. The docket ID number for this petition is shown 
in the heading of this notice.
    DOT's complete Privacy Act Statement is available for review in a 
Federal Register notice published on April 11, 2000 (65 FR 19477-78).

SUPPLEMENTARY INFORMATION: 
    I. Overview: Sumitomo Rubber Industries, Ltd. (SRI), on behalf of 
itself and its subsidiary Sumitomo Rubber North America, Inc. (SRNA), 
have determined that certain Falken truck tires do not fully comply 
with paragraph S6.5(f) of FMVSS No. 119, New Pneumatic Tires for Motor 
Vehicles with a GVWR of more than 4,536 kilograms (10,000 pounds) and 
Motorcycles. SRI filed a noncompliance report dated June 20, 2017, 
pursuant to 49 CFR part 573, Defect and Noncompliance Responsibility 
and Reports. SRI also petitioned NHTSA on July 10, 2017, pursuant to 49 
U.S.C. 30118(d) and 30120(h) and 49 CFR part 556, for an exemption from 
the notification and remedy requirements of 49 U.S.C. Chapter 301 on 
the basis that this noncompliance is inconsequential as it relates to 
motor vehicle safety.
    This notice of receipt of SRI and SRNA's petition is published 
under 49 U.S.C. 30118 and 30120 and does not represent any agency 
decision or other exercise of judgment concerning the merits of the 
petition.

[[Page 44489]]

    II. Tires Involved: Approximately 5,408 Falken truck tires (Model 
RI151), size 225/70R19.5, manufactured between October 17, 2016, and 
April 28, 2017, are potentially involved.
    III. Noncompliance: SRI explains that the noncompliance is that the 
number of plies indicated on the sidewall of the subject tires do not 
match the actual number of plies in the tire construction, and 
therefore, do not meet all applicable requirements specified in 
paragraph S6.5(f) of FMVSS No. 119. Specifically, the tires are marked 
with ``TREAD 5 PLIES STEEL'' whereas the correct marking should be 
``TREAD 4 PLIES STEEL.''
    IV. Rule Text: Paragraph S6.5 of FMVSS No. 119 states, in pertinent 
part:

    S6.5 Tire Markings. Except as specified in this paragraph, each 
tire shall be marked on each sidewall with the information specified 
in paragraphs (a) through (j) of this section . . .
* * * * *
    (f) The actual number of plies and the composition of the ply 
cord material in the sidewall and, if different, in the tread area.

    V. Summary of SRI's Petition: As background, On June 12, 2017, SRI 
discovered that a population of 5,408 Falken brand truck tires, Model 
RI151, size 225/70Rl9.5 128/126L, manufactured from October 17, 2016 
through April 28, 2017 at the company's plant in Miyazaki, Japan, were 
marked with the incorrect number of plies. On July 13, 2017, SRNA was 
informed of the marking error, shipments of the subject tires were 
halted, and the company determined that the subject tires failed to 
comply with the tire labeling requirements of Federal motor vehicle 
safety standard (FMVSS) No. 119, S6.5. Specifically, the subject tires 
were incorrectly marked ``TREAD 5 PLIES STEEL,'' although they should 
have been marked ``TREAD 4 PLIES STEEL.'' Accordingly, these tires do 
not conform to the marking requirements of FMVSS No. 119, S6.5. The 
subject tires comply with the performance requirements and other 
marking requirements of FMVSS No. 119.
    SRI submitted a Part 573 noncompliance report on June 20, 2017. 
NHTSA Recall No. l7T-012. SRI corrected the production molds. SRI began 
manufacturing correct versions of these tires on June 17, 2017.
    SRI described the subject noncompliance and stated its belief that 
the noncompliance is inconsequential as it relates to motor vehicle 
safety.
    In support of its petition, SRI submitted the following reasoning:
    Under the Safety Act, each Federal motor vehicle safety standard 
promulgated by the National Highway Traffic Safety Administration 
(NHTSA) must be ``practicable, meet the need for motor vehicle safety, 
and be stated in objective terms.'' 49 U.S.C. 3011l(a). The Safety Act 
defines ``motor vehicle safety'' as:

the performance of a motor vehicle or motor vehicle equipment in a 
way that protects the public against unreasonable risk of accidents 
occurring because of the design, construction or performance of a 
motor vehicle, and against unreasonable risk of death or injury in 
an accident, and includes nonoperational safety of a motor vehicle.

    49 U.S.C. 30102(a)(8) (emphasis added).
    The Safety Act exempts manufacturers from the Safety Act's notice 
and remedy requirements when the Secretary of Transportation determines 
that a defect or noncompliance is inconsequential as it relates to 
motor vehicle safety. See 49 U.S.C. 30118(d). Section 30118(d) 
demonstrates Congress's acknowledgment that there are cases where a 
manufacturer has failed to comply with a safety standard, yet the 
impact on motor vehicle safety is so slight that an exemption from the 
notice and remedy requirements of the Safety Act is justified. NHTSA 
has stated that the relevant consideration in evaluating an 
inconsequentiality petition is ``whether an occupant who is affected by 
the noncompliance is likely to be exposed to a significantly greater 
risk than an occupant in a compliant vehicle.'' 69 FR 19897, 19900 
(April 14, 2004) (emphasis added).
    In the context of tires specifically, the agency has similarly 
stated that it ``believes that one measure of inconsequentiality to 
motor vehicle safety is that there is no effect of the noncompliance on 
the operational safety of vehicles on which the tires are mounted. 
Another measure of inconsequentiality . . . is the safety of people 
working in the tire retread, repair and recycling industries.'' See 72 
FR 18210 (April 17, 2017) (granting petition for determination of 
inconsequential noncompliance with respect to Goodyear tires marked 
with the incorrect number of plies).
    We believe the labeling noncompliance at issue here is 
inconsequential to motor vehicle safety. The subject Falken tires were 
manufactured as designed and meet or exceed all applicable FMVSS No. 
119 performance standards. Furthermore, all of the sidewall markings 
related to tire service (load capacity, corresponding inflation 
pressure, etc.) are correct and the tires correctly show that they 
contain steel plies. SRI does not believe the mislabeling of these 
tires presents a safety concern for consumers or retreading and 
recycling personnel. As noted above, the affected tire mold has been 
corrected and tires produced on and after June 17, 2017, are marked 
with the correct number of plies.
    NHTSA has previously granted petitions involving similar 
noncompliances. In the most recent of these, the agency explained:

    Although tire construction affects the strength and durability 
of tires, neither the agency nor the tire industry provides 
information relating tire strength and durability to the number of 
plies and types of ply cord material in the tread sidewall. 
Therefore, tire dealers and customers should consider the tire 
construction information along with other information such as the 
load capacity, maximum inflation pressure, and tread wear, 
temperature, and traction ratings, to assess performance 
capabilities of various tires. In the agency's judgement, the 
incorrect labeling of the tire construction information will have an 
inconsequential effect on motor vehicle safety because most 
consumers do not base tire purchases or vehicle operation parameters 
on the number of plies in a tire.

    See 72 FR 18210 (April 17,2017).
    Regarding potential safety risks to the tire service industry, the 
agency concluded that a misstatement of the number of plies ``will have 
no measurable effect on the safety of the tire retread, repair, and 
recycling industries. The use of steel cord construction in the 
sidewall and tread is the primary safety concern of these industries. 
In this case, because the sidewall markings indicate that some steel 
plies exist in the tire sidewall, this potential safety concern does 
not exist.'' Id. As noted above, the markings on the subject tires 
correctly indicate that they contain steel plies (although the number 
is misstated as 5 instead of 4).
    NHTSA also granted similar petitions involving tires manufactured 
by Cooper Tire and Goodyear (Dunlop). See 74 FR 10804 (March 12, 2009) 
(granting petition submitted by Goodyear where tires were labeled 
``Tread 3 Polyester + 2 Steel,'' whereas the correct marking should 
have been ``Tread 2 Polyester + 2 Steel + 2 Polyester''); and 82 FR 
17075 (April 7, 2017) (granting petition submitted by Cooper Tire & 
Rubber Company where tires were marked ``TREAD 1 PLY NYLON + 2 PLY 
STEEL + 2 PLY POLYESTER,'' whereas the correct marking should have been 
``TREAD 1 PLY NYLON + 2 PLY STEEL + 1 PLY POLYESTER.''
    SRI is not aware of any warranty claims, field reports, customer 
complaints, legal claims, or any incidents or injuries related to the 
subject condition.

[[Page 44490]]

    SRI concluded by expressing the belief that the subject 
noncompliance is inconsequential as it relates to motor vehicle safety, 
and that its petition to be exempted from providing notification of the 
noncompliance, as required by 49 U.S.C. 30118, and a remedy for the 
noncompliance, as required by 49 U.S.C. 30120, should be granted.
    NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and 
30120(h)) that permit manufacturers to file petitions for a 
determination of inconsequentiality allow NHTSA to exempt manufacturers 
only from the duties found in sections 30118 and 30120, respectively, 
to notify owners, purchasers, and dealers of a defect or noncompliance 
and to remedy the defect or noncompliance. Therefore, any decision on 
this petition only applies to the subject tires that SRI no longer 
controlled at the time it determined that the noncompliance existed. 
However, any decision on this petition does not relieve equipment 
distributors and dealers of the prohibitions on the sale, offer for 
sale, or introduction or delivery for introduction into interstate 
commerce of the noncompliant tires under their control after SRI 
notified them that the subject noncompliance existed.

    Authority:  (49 U.S.C. 30118, 30120: delegations of authority at 
49 CFR 1.95 and 501.8)

Jeffrey M. Giuseppe,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 2017-20248 Filed 9-21-17; 8:45 am]
 BILLING CODE 4910-59-P