Tire Recordkeeping: Understanding and Implementing 49 CFR §574.10 Compliance Program Workshop Series National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Introductions Presenter - Clint Lancaster, NATM Compliance Consultant Panelist Mike Skoglund, Compliance Committee Chair & VP, Ops Carry-on Trailer Kim Mann, NATM General Counsel Greg Soden, NATM Compliance Consultant Attendees – Who’s here? Intro to the Webex Classroom National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Agenda Background Review the Federal Regulations What are our various “tire” situations? What is the Tire Identification Number? What information do we need to record? How can we collect this information? How can we maintain this information? What is needed for NATM Compliance? Summary and Questions National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers BACKGROUND National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Background Tire Recordkeeping has been a requirement for vehicle manufacturers (of which trailers are a part) since approximately1971. We haven’t fully understood our responsibilities because of ambiguities in the Regulation. Because of issues with the recent recall of Chinese tires, NHTSA has voiced concern and focused attention on tire recordkeeping. We now accept the responsibility to better understand the federal requirements. Because this issue is on the NHTSA radar screen, NATM Board has taken a more active role in educating our members about their compliance obligations. Over the next year, tire recordkeeping will become part of the NATM Compliance Certification National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Review the Federal Regulation National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Review the Federal Regulation Tire recordkeeping is covered in 49 CFR Part 574 Our primary concern involves § 574.10 However, there are compliance implications for us and especially for our dealers in 49 CFR §§ 574.8 and 574.9 So, first we’ll look at these regulations, discuss some scenarios, then look at possible solutions National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

The Federal Regulation TITLE 49--TRANSPORTATION                     CHAPTER V--NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION PART 574 - TIRE IDENTIFICATION AND RECORDKEEPING - Sec.  574.10  Requirements for motor vehicle manufacturers.    Each motor vehicle manufacturer, or his designee, shall maintain a record of the new tires on or in each vehicle shipped by him or a motor vehicle distributor or dealer, and shall maintain a record of the name and address of the first purchaser for purposes other than resale of each vehicle equipped with such tires. These records shall be maintained for a period of not less than 5 years from the date of sale of the vehicle to the first purchaser for purposes other than resale. National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Review of the Regulation Does this apply to us? “Yes,” according to NHTSA’s official response to a past interpretation request: “49 CFR Part 574 has two separate recordkeeping requirements. Both sections have been in effect, largely unchanged, since 1971. The first, 49 CFR §574.7, applies to tire manufacturers and requires them to maintain tire registration records that they receive from tire dealers and distributors. The second section, 49 CFR §574.10, applies to motor vehicle manufacturers and requires them to maintain registration records on tires that they install on motor vehicles prior to first sale. These two recordkeeping requirements are separate requirements. Thus, NATM's members are required to keep records of all new tires they place on their motor vehicles prior to first sale subject to the requirements of 49 CFR §574.10.” National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Review of the Regulation (con’t) 49 CFR §574.10 requires four key elements: Trailer manufacturer, or designee, must maintain “a record” of the new tires “on or in” all trailers it ships or the trailer dealer ships This “record” must provide identification of tire size, brand, and batch or lot (The “record” also may be the tire’s Tire Identification Number) Trailer manufacturer or designee also must maintain “a record” of the retail purchaser (name and address) of each trailer equipped with the tires “on or in” the trailer when shipped Trailer manufacturer (or designee) must keep (maintain) the records for at least five years National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Review of the Regulation (con’t) What happens when you ship trailers to a dealer with no tires “on or in” those trailers? According to §574.9, the companion regulation to §574.10, your trailer dealer becomes a “tire dealer” with its own set of recordkeeping obligations. 49 CFR §574.9(b) provides: Each person selling a motor vehicle to first purchasers, for purposes other than resale, that is equipped with new tires that were not on the motor vehicle when shipped by the motor vehicle manufacturer is considered a tire dealer for purposes of this part and shall meet the [tire recordkeeping] requirements specified in §574.8. National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Review of the Regulation (con’t) Other sections of 49 CFR 574 may have requirements applicable to trailer manufacturers and their dealers. §574.7 covers tire recordkeeping requirements for tire manufacturers §574.8 covers tire recordkeeping requirements for tire dealers and distributors I’ll provide a complete copy of the Part 574 regulation at the end of the presentation National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Scenarios For the Trailer Manufacturer: Direct trailer sale to consumer Trailer shipped to dealer with wheels and tires attached Trailer shipped to dealer with wheels and tires NOT attached and not designated for attachment to specific trailer Trailer shipped to dealer with wheels and tires NOT attached, but designated for attachment to specific trailer Tires shipped to dealer for dealer stock Tires-only sold directly to consumer We’ll visit these again later National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Tire Identification Number TIN National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

What is the Tire ID or “TIN”? A series of letters and numbers in prescribed groupings embossed on or molded into the tire as follows: Starts with “DOT” 1st Group – Manufacturer Identification 2nd Group – Tire Size 3rd Group – Type (optional) 4th Group – 2 digit week & 2 digit year of manufacture (i.e. 2607) National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Where is the Tire ID? National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Example on the Tire National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers The Who, What and Where National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

What information do we record? Tire information ( size, brand, and batch or lot) or Tire Identification Number (TIN) Name and Address of the end-user/customer (first retail purchaser) This “customer” can not be the dealer National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

How do we collect the information? Trailer manufacturer must get the information back from either the trailer dealer, the consumer, or the tire manufacturer, unless it sells directly to the consumer. Some possible means: Trailer/vehicle warranty cards Tire registry cards Dealer reports or interface systems Third-party tire registration services May require making the trailer dealer your “designee” in order to complete the record keeping process how to “designate” will be discussed later National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Warranty Return Card Tire info from VIN software National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Warranty Return Card National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Use an MCO return card National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Third-Party Registry Services National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

How do we maintain the information? Hard copy file VIN Software, for example: Vin-eze, FedCert Your own automated system Designate third party to share portion of recordkeeping obligations. Candidates include: Trailer dealer/distributor Tire manufacturer/supplier Third-party registry service Maintain for at least five years National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

VIN Software Tire Record National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

VIN Software Customer Record National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

The “Designee” Alternative Establish a Designee Dealer Tire Manufacturer Third-party Registration Service “Designee” status creates legal relationship, requires mutual consent best if in writing may be governed by state law consult attorney National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Sample Designee Letter I’ll provide copies of some sample letters at the end of the workshop. National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Designee Letter National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers NATM Compliance National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers NATM Compliance Tire Recordkeeping for vehicle manufacturers (49 CFR §574.10) has been added to the NATM compliance requirements effective January 2008 To help manufacturers avoid losing their certification, or not obtaining certification, NATM will extend the period to become compliant to 180 days (normally 60 days) for this specific item In conjunction with this extended compliance period, NATM will be educating manufacturers and identifying tools to help support compliance with this regulation This grace period will be in effect through 2008; in 2009 compliance returns to 60 days for all checklist items National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers NATM Compliance NATM Compliance Consultants have been monitoring this requirement in the field during the past year It has been a recommendation on the Compliance Checklist for more than six months We have observed many different ways various manufacturers have been complying National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers NATM Compliance With a wide variety of possible solutions for compliance with §574.10, NATM Compliance Consultants will apply four criteria to measure compliance, to the extent applicable: First, is the required tire information being recorded for each trailer? Second, is there a process in place and used to obtain the first retail purchaser’s name and address? If the manufacturer has chosen to assign a designee: Third, are written, executed (signed) designee assignments on file? Fourth, is there a process in place to verify designee compliance? National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Revisit the Scenarios for the Trailer Manufacturer Direct trailer sale to consumer Wheels and tires attached when shipped to dealer Wheels and tires NOT attached when shipped to dealer and not designated for attachment to specific trailer Wheels and tires NOT attached when shipped to dealer but designated for attachment to specific trailer Tires shipped to dealer for dealer stock Tires-only sold directly to consumer National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

Almost There – The Wrap-up National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Provide Documents As discussed earlier 49 CFR 574 Three sample “designee” letters It will take just a minute to get them up for you National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Summary Provided some background Reviewed the various federal regulations Looked at some different situations Located the Tire Identification Number Covered information needed to record Discussed how to collect and maintain this information Explained the “designee” as alternative Described how tire recordkeeping fits into NATM compliance program National Association of Trailer Manufacturers (785) 272-4433 www.natm.com

National Association of Trailer Manufacturers Questions? National Association of Trailer Manufacturers (785) 272-4433 www.natm.com