82 FR 44488 - Sumitomo Rubber Industries, Ltd., Receipt of Petition for Decision of Inconsequential Noncompliance

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration

Federal Register Volume 82, Issue 183 (September 22, 2017)

Page Range		44488-44490
FR Document		2017-20248

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.

Federal Register, Volume 82 Issue 183 (Friday, September 22, 2017)

[Federal Register Volume 82, Number 183 (Friday, September 22, 2017)]
[Notices]
[Pages 44488-44490]
From the Federal Register Online [www.thefederalregister.org]
[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.

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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

44490 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices

SRI concluded by expressing the DATES: Written comments should be public record. Comments are invited on:
belief that the subject noncompliance is received on or before November 21, (a) Whether the collection of
inconsequential as it relates to motor 2017 to be assured of consideration. information is necessary for the proper
vehicle safety, and that its petition to be ADDRESSES: Direct all written comments performance of the functions of the
exempted from providing notification of to L. Brimmer, Internal Revenue agency, including whether the
the noncompliance, as required by 49 Service, Room 6526, 1111 Constitution information shall have practical utility;
U.S.C. 30118, and a remedy for the Avenue NW., Washington, DC 20224. (b) the accuracy of the agency’s estimate
noncompliance, as required by 49 Requests for additional information or of the burden of the collection of
U.S.C. 30120, should be granted. copies of the information collection information; (c) ways to enhance the
NHTSA notes that the statutory should be directed to LaNita Van Dyke, quality, utility, and clarity of the
provisions (49 U.S.C. 30118(d) and or at Internal Revenue Service, Room information to be collected; (d) ways to
30120(h)) that permit manufacturers to 6526, 1111 Constitution Avenue NW., minimize the burden of the collection of
file petitions for a determination of Washington, DC 20224, or through the information on respondents, including
inconsequentiality allow NHTSA to internet, at Lanita.VanDyke@irs.gov. through the use of automated collection
exempt manufacturers only from the SUPPLEMENTARY INFORMATION: techniques or other forms of information
duties found in sections 30118 and Title: Treatment of Gain From the technology; and (e) estimates of capital
30120, respectively, to notify owners, Disposition of Interest in Certain or start-up costs and costs of operation,
purchasers, and dealers of a defect or Natural Resource Recapture Property by maintenance, and purchase of services
noncompliance and to remedy the S Corporations and Their Shareholders. to provide information.
defect or noncompliance. Therefore, any OMB Number: 1545–1493. Approved: September 13, 2017.
decision on this petition only applies to Regulation Project Number: T.D. 8684. L. Brimmer,
the subject tires that SRI no longer Abstract: This regulation prescribes Senior Tax Analyst.
controlled at the time it determined that rules under Code section 1254 relating [FR Doc. 2017–20241 Filed 9–21–17; 8:45 am]
the noncompliance existed. However, to the treatment by S corporations and BILLING CODE 4830–01–P
any decision on this petition does not their shareholders of gain from the
relieve equipment distributors and disposition of natural resource recapture
dealers of the prohibitions on the sale, property and from the sale or exchange DEPARTMENT OF THE TREASURY
offer for sale, or introduction or delivery of S corporation stock. Section 1.1254–
for introduction into interstate 4(c)(2) of the regulation provides that Internal Revenue Service
commerce of the noncompliant tires gain recognized on the sale or exchange
under their control after SRI notified of S corporation stock is not treated as Proposed Collection; Comment
them that the subject noncompliance ordinary income if the shareholder Request for Form 8823
existed. attaches a statement to his or her return AGENCY: Internal Revenue Service (IRS),
Authority: (49 U.S.C. 30118, 30120: containing information establishing that Treasury.
delegations of authority at 49 CFR 1.95 and the gain is not attributable to section
501.8) ACTION: Notice and request for
1254 costs.
Current Actions: There is no change to comments.
Jeffrey M. Giuseppe,
this existing regulation. SUMMARY: The Internal Revenue Service,
Director, Office of Vehicle Safety Compliance.
Type of Review: Extension of a as part of its continuing effort to reduce
[FR Doc. 2017–20248 Filed 9–21–17; 8:45 am]
currently approved collection. paperwork and respondent burden,
BILLING CODE 4910–59–P Affected Public: Business or other for- invites the general public and other
profit organizations, and individuals. Federal agencies to take this
Estimated Number of Respondents: opportunity to comment on proposed
1,000. and/or continuing information
DEPARTMENT OF THE TREASURY Estimated Time per Respondent: 1 collections, as required by the
Internal Revenue Service hour. Paperwork Reduction Act of 1995.
Estimated Total Annual Burden Currently, the IRS is soliciting
Proposed Collection; Comment Hours: 1,000. comments concerning Form 8823, Low-
Request for Regulation Project The following paragraph applies to all Income Housing Credit Agencies Report
of the collections of information covered of Noncompliance or Building
AGENCY: Internal Revenue Service (IRS), by this notice: Disposition.
Treasury. An agency may not conduct or
sponsor, and a person is not required to DATES: Written comments should be
ACTION: Notice and request for
respond to, a collection of information received on or before November 21,
comments.
unless the collection of information 2017 to be assured of consideration.
SUMMARY: The Internal Revenue Service, displays a valid OMB control number. ADDRESSES: Direct all written comments
as part of its effort to reduce paperwork Books or records relating to a collection to, L. Brimmer, Internal Revenue
and respondent burden, invites the of information must be retained as long Service, Room 6526, 1111 Constitution
general public and Federal agencies to as their contents may become material Avenue NW., Washington, DC 20224.
take this opportunity to comment on in the administration of any internal Requests for additional information or
proposed and/or continuing information revenue law. Generally, tax returns and copies of the form and instructions
collections, as required by the tax return information are confidential, should be directed to, LaNita Van Dyke,
Paperwork Reduction Act of 1995. The as required by 26 U.S.C. 6103. or through the internet at
IRS is soliciting comments concerning Request for Comments: Comments LanitaVanDyke@irs.gov.
Treatment of Gain From the Disposition submitted in response to this notice will SUPPLEMENTARY INFORMATION:
of Interest in Certain Natural Resource be summarized and/or included in the Title: Low-Income Housing Credit
Recapture Property by S Corporations request for OMB approval. All Agencies Report of Noncompliance or
and Their Shareholders. comments will become a matter of Building Disposition.

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Document Created: 2017-09-22 01:52:42
Document Modified: 2017-09-22 01:52:42

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Receipt of petition.
Dates		The closing date for comments on the petition is October 23, 2017.
FR Citation		82 FR 44488

82 FR 44488 - Sumitomo Rubber Industries, Ltd., Receipt of Petition for Decision of Inconsequential Noncompliance

DEPARTMENT OF TRANSPORTATIONNational Highway Traffic Safety Administration

Federal Register Volume 82, Issue 183 (September 22, 2017)

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration