Canada Gazette, Part I, Volume 152, Number 26: Regulations Amending Certain Regulations Made under the Motor Vehicle Safety Act (Notice of Defect and Notice of Non-compliance)

June 30, 2018

Statutory authority

Motor Vehicle Safety Act

Sponsoring department

Department of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Motor Vehicle Safety Act (the Act) was amended in 2014 to enhance the alignment of Canadian motor vehicle notice of defect and non-compliance requirements with similar requirements in the United States, and to improve safety. The amendments to the Act addressed key gaps in the motor vehicle safety notification regime, including providing the Minister with the authority to require that a company issue a notice of defect, and introduced new notice of non-compliance requirements. However, elements of this enhanced safety notification regime have not yet been implemented in regulations made under the Act, and the full alignment and safety benefits have therefore not yet been realized.

Background

The Department of Transport (the Department) manages many of the safety risks associated with motor vehicles and equipmentfootnote 1 via the administration and enforcement of the Act and three regulations: the Motor Vehicle Safety Regulations (MVSR), the Motor Vehicle Tire Safety Regulations (MVTSR) and the Motor Vehicle Restraint Systems and Booster Seat Safety Regulations (RSSR) [collectively referred to as "the regulations"].

The Act requires that a company that manufactures, sells or imports any vehicle or equipment of a prescribed class (referred to as a "company" throughout the Regulatory Impact Analysis Statement), on becoming aware of a defect in the design, construction or functioning of the vehicle or equipment that affects or is likely to affect the safety of any person, notify the Minister of Transport, owners and retailers in accordance with the notification requirements set out in the regulations.

The Department also manages a program to receive feedback from the public regarding motor vehicle and equipment safety concerns. Through this program, the Department has identified limitations with the existing safety notification regime.

The Act was amended by the Economic Action Plan 2014 Act, No. 1, which received royal assent on June 19, 2014, to enable (a) enhanced notice of defect requirements; and (b) new requirements addressing notices of non-compliance. The amendments further enabled the Governor in Council to make regulations to improve the quality of safety information contained in notices of defect and non-compliance, and to revise the reporting regime to enhance oversight of notices of defect and non-compliance by the Department. The amendments to the Act were brought into force on June 3, 2015, concurrently with the publication of non-substantive amendments to the regulations that promoted continued alignment with the Act.

Notice of defect

A notice of defect refers to a notice, issued by a company to the Minister, owners and retailers, describing a safety issue with a vehicle or equipment that affects or is likely to affect the safety of any person, independent of the safety standards prescribed by the regulations. For example, while the regulations do not directly address vehicle suspension component requirements, a safety notice may nevertheless be required if it is found that the materials used in the fabrication of a component are inadequate and thus could result in a failure with the potential to cause a loss of control or collision. Between 2002 and 2016, the number of notices of defect increased from 248 to 662; in 2015, the Department was notified of 624 defect campaigns involving 125 separate companies.

Notice of non-compliance

A notice of non-compliance refers to a notice, issued by a company, describing a situation whereby a vehicle or equipment does not meet one or more requirements within a set of regulations. The regulations do not currently prescribe notification requirements in the event of non-compliance with the regulations. Nevertheless, companies have historically treated such occurrences as a notice of defect, and provided non-compliance information under the guise of a notice of defect. As of May 2017, the Department has recorded 1 659 notices issued by companies since 1975 to address non-compliance issues.

Reporting to the Minister

A notice of defect to the Minister is required at the time a company becomes aware of a safety issue with a vehicle or equipment. The information required is generally broad in scope, with a view to expediting the notification. The notice must identify the company, and include available details to help the identification of the affected vehicles or equipment, an estimate of the number of affected products, and a general description of the defect.

Companies are required to submit a follow-up report, to update the Minister with specific information regarding the scope of the safety issue and planned corrective measures. Companies must submit follow-up reports within 30 days of providing the original notice to the Minister, except for notices covered under the MVSR, which provide up to 60 days to submit the follow-up report to the Minister. This additional time (30 or 60 days) allows companies to conduct a more thorough investigation and assessment of the safety issue, as well as address corrective measures. Follow-up reports must include a more accurate assessment of the number of vehicles or equipment affected, copies of all related notices and correspondences issued by the company, and a detailed description of the nature of the defect and corrective measures.

For two years following the original notice to the Minister, companies are required to submit quarterly reports to update the Minister on the progress of the corrective measures put in place by the companies. Among other details, the quarterly report must provide an update regarding the scope of affected vehicles or equipment and include the number of vehicles or equipment that have been corrected, from which the effectiveness of the corrective measures can be ascertained. If the completion rate is deemed inadequate, the Minister has the authority to order a company to provide subsequent notices aimed at informing those persons who have not had the correction completed.

Objectives

The objective of the proposed Regulations Amending Certain Regulations Made under the Motor Vehicle Safety Act (Notice of Defect and Notice of Non-compliance) [the proposed amendments] is to improve the alignment of motor vehicle defect and non-compliance requirements with U.S. requirements; improve motor vehicle safety by making enhanced vehicle safety information available to the Minister, and to vehicle or equipment owners and retailers; and improve departmental oversight of safety defects and instances of non-compliance with the regulations.

Description

The proposed amendments would require that vehicle and equipment companies required to give a notice of defect or notice of non-compliance (a) provide greater clarity and relevant details in their notices; (b) revise their notification process to address non-compliance separately from a defect; and (c) augment reporting requirements associated with these notifications.

Notice of defect

In addition to the currently required information (e.g. the make, model and model year of the affected vehicle), the proposed amendments would require that additional specific information be included in notices provided to the Minister, owners and retailers (see Table 1).

Understanding the importance of communicating the information as soon as possible, provisions are included to allow the delivery of certain information as soon as it becomes available, as noted in Table 1. The proposed amendments would also clarify that notices may be provided in written or electronic form.

Notice of non-compliance

The proposed amendments would establish new requirements that mirror those for giving a notice of defect, with slight differences to address the characteristics of non-compliance. Non-compliance with a set of regulations may or may not have any safety implications. A company may be exempt from having to go beyond notifying the Minister if, following a request by the company, the Minister determines that the implications are inconsequential to safety. Otherwise, the full spectrum of requirements for notification would need to be followed.

Administrative requirements

Reporting. The proposed amendments would strengthen the existing reporting and oversight provisions in the regulations by

Table 1: Summary of new and supplemental information required in notices

Note: This summary generally applies across all three regulations, for defects and non-compliance. Please refer to the text of the proposed amendments for specific requirements.

Notice Recipient Summary of Information Required
Minister

note * Company contact information for correspondence (new for the MVSR).

note * Estimate of the number of vehicles or equipment that actually contain a defect or non-compliance.

note * Systems or components that may be affected.

note * Chronology of events, summary of warranty claims, field or service reports, and any other relevant information.

note ** Estimated date when the notice will be sent to owners and retailers.
Owner

note ** Correspondence to owner requires specific opening statement, and specific text on the envelope or subject line of electronic communication.

note ** Provide the motor vehicle safety recall number issued by the Department (also required in the notification to retailers).

note * Systems or components that may be affected.

note* Operating conditions or other factors that may cause a malfunction.

note * Warning signs, if any, of any related malfunction that could arise.

note * State whether the defect or non-compliance could cause a vehicle crash, if applicable, or the type of injury that may result.

note * Describe the work involved and time estimate to take corrective measures.note 1

note * Statement that the company will cover the costs or provide an estimate of the cost of the corrective measures.note 1

note * Indicate who can perform the corrective measures.note 1
Minister, owner and retailer

note ** Identification number assigned by the company (new for the MVSR).

note * Description of the nature of the defect or non-compliance, including the causes and contributing factors, and its location.

note * Description of the safety risk arising from the defect or non-compliance.

note * Precautions to take to minimize safety risks.note 1

note* Corrective measures and implementation program.note 1

Requests for records. The proposed amendments would standardize the MVSR provisions across the regulations. The ability for an inspector to request and obtain certification documentation from companies is an important aspect of the Minister's oversight responsibilities. The MVSR includes such a provision, whereby on request from an inspector, companies have 30 working days after the mailing of the request, or 45 days where the records must be translated, to provide records demonstrating that the vehicles conform to all required safety standards. This provision is absent from the MVTSR, and the 45-day time allowance for translation is absent from the RSSR.

Vehicle owner's manual. The proposed amendments would require that companies provide, in the vehicle owner's manual, instructions on how to contact Transport Canada to report a safety concern related to the vehicle.

"One-for-One" Rule

The proposed amendments would include a number of modifications to the notification and reporting requirements, including (1) notifying the Minister of non-compliance with the regulations; (2) submitting, to the Minister, copies of any subsequent communications to owners and retailers for a period of five years; and (3) aligning quarterly report submission dates with the NHTSA. Notwithstanding these modifications, the Department does not anticipate that the proposed amendments would result in any incremental administrative burden (see Table 2), and the "One-for-One" Rule would therefore not apply.

Table 2: Incremental administrative burden costs
Proposed Requirement Assumptions and Anticipated Administrative Burden Costs
Notifying the Minister of non-compliance with the regulations. Impacted companies are already issuing notices of non-compliance under the guise of notices of defect; therefore, the Department anticipates that the proposed amendments would not result in any incremental administrative burden.
Submitting, to the Minister, copies of any subsequent communications to owners and retailers for a period of five years. Given that the proposed requirement would involve adding one recipient (the Minister) to a list of recipients including owners and retailers, and that electronic submissions would be possible, incremental administrative burden is anticipated to be negligible.
Aligning quarterly report submission dates with the NHTSA. The proposed amendments would modify the timing of quarterly report submission and require including the motor vehicle safety recall number issued by Transport Canada. Otherwise, it would not modify the content of the reports or add to the cost associated with submissions.

Small business lens

The small business lens would not apply to the proposed amendments, as nationwide cost impacts would be less than $1 million annually, and no costs would be incurred by small business.

Consultation

The Department consulted vehicle companies on January 29, 2015, and provided a draft outline of the proposed amendments. Three associations (Global Automakers of Canada, Canadian Vehicle Manufacturers' Association and the Motorcycle & Moped Industry Council) provided feedback on the draft outline, in March and April 2015. Consultations continued into 2018, as part of semi-annual face-to-face meetings held by the Department, with the three associations and the Tire and Rubber Association of Canada.

Stakeholders were generally supportive of the proposed amendments, but noted that differences between the draft outline and U.S. requirements could potentially result in delays in providing notification to Canadians. In order to minimize any potential delay in the delivery of safety notices, the draft outline was modified to further align with the United States, including flexibility for companies to provide details, such as corrective actions, at a later time.

Although no direct consultations were undertaken with vehicle owners, the Department is engaged on an ongoing basis with these stakeholders, receiving feedback on notices of defect via telephone, Web and mail. This feedback motivated and informed the design of the proposed amendments.

Regulatory cooperation

The proposed amendments would improve alignment with U.S. notification and reporting requirements. Some Canada-unique elements are included to address bilingual language requirements, or due to differences with the legal framework under which the respective laws and regulations are developed. Other Canada-unique requirements are intended to strengthen Canada's notice of defect and non-compliance regime by making additional safety-related defect and non-compliance information available to the Minister, and to vehicle or equipment owners and retailers.

Notice of defect and notice of non-compliance. Notices of defect and non-compliance are already required under U.S. rules, prescribing information that companies must provide to the NHTSA, and the owners and retailers of affected vehicles or equipment. The proposed amendments would require that companies provide, in notifications to the Minister, owners and retailers, a description of the vehicle system or components that may be affected, the location of the defect, precautions to take to minimize the safety risk until corrective measures have been implemented, and operating conditions or other factors that may contribute to a malfunction of the vehicle system or components, which is information that is not explicitly required for each respective recipient through the U.S. rules. The Department is proposing this slightly broader approach in an effort to promote safety and transparency, in direct response to safety concerns raised by Canadians. The associated cost is expected to be low, given that companies are expected to have this information readily available, and many are already providing this information in their notices.

Reporting. The proposed requirement that companies submit, to the Minister, copies of any subsequent communications to owners and retailers for a period of five years differs from the comparable U.S. requirement, which has no duration limit. The Department anticipates that the five-year limit would be sufficient to enable oversight of responses to a given defect or non-compliance.

Rationale

The proposed amendments would enhance oversight capabilities and improve the quality of information made available to Canadians in the event of a motor vehicle defect or instance of non-compliance with the regulations, thereby improving consumer protection, and contributing to accident prevention. Taking into consideration the qualitative and monetized benefits and costs described below, the proposed amendments are expected to result in an overall benefit for Canadians.

Notice of defect. The proposed amendments would enhance the content of notices of defect to better inform owners and retailers of preventive measures that can be taken to mitigate any safety risks, and anticipated corrective measures. The U.S. NHTSA already requires that companies provide much of this information in their safety notices, and departmental oversight activities indicate that this information is currently recorded and available from individual companies and often already provided to Canadians.

The Department recognizes that some of the required information may take additional time to finalize for notification purposes, in particular any information regarding appropriate corrective measures. Some companies may incur a small one-time cost to adjust their administrative processes to ensure that the proper information is provided, after which any additional costs would be negligible. Overall, the Department estimates that industry would incur incremental costs of $155,200 over 10 years.footnote 2

Notice of non-compliance. Adding provisions for non-compliance in the regulations would address safety defects and non-compliance conditions distinctly and separately. An increase in the number of notices is not expected with this addition, given that notices of non-compliance are already generally issued, and that notification is required in the United States. The proposed amendments would, however, provide clarity and ensure consistency regarding notifications of non-compliance.

Reporting. The proposed modification to the time limits for submission of a follow-up report is housekeeping in nature, and would provide additional flexibility to industry with no anticipated impact on safety.

Quarterly reports to the Minister end after two years, which limits the Department's ability to track any extended activities undertaken by companies to correct a defect or non-compliance. Requiring copies of companies' related communications to owners and retailers for five years would enhance oversight and keep the Department informed of extended remediation efforts. A similar requirement, without a time limit, is included in the comparable U.S. regulations.

Based on the 624 notices provided in 2015, the Department anticipates that the review of supplementary information would require less than one month of additional work for one departmental official over the full year, such that the proposed amendments would result in incremental costs to Government of $62,500 over 10 years. However, these costs are expected to be more than offset by reductions in the workload related to calls and correspondence from the public regarding a lack of detail in the notices, with savings of $104,000 over 10 years.

Requests for records. The Minister's oversight capabilities would be significantly hampered if an inspector were unable to obtain certification documentation from companies. While already present in the MVSR, this requirement would be added to the MVSTR and RSSR. The regulations currently require that companies keep such documentation on hand, and the proposed requirements would therefore result in negligible incremental costs.

Vehicle owner's manual. The information and experience voiced by the public has provided the Department with insight regarding the vehicles and equipment in use. The proposed amendments would facilitate stakeholder feedback by requiring that the owner's manual, currently required to be supplied with vehicles, also include information on how to contact the Department in order to report a safety concern relating to a vehicle.

Implementation, enforcement and service standards

Companies are responsible for ensuring compliance with the requirements of the Act and the regulations. The Department would monitor notices of defect and non-compliance to ensure that they contain, at a minimum, the information required by the regulations, and that companies take action in accordance with timelines specified by the regulations. In addition, the Department will gather information related to the presence of safety issues through public complaints and other reports, and through vehicle or component inspection, testing and other proven investigative techniques. Under the authority of the Act, designated inspectors may also search places believed on reasonable grounds to contain records related to the vehicle or equipment, with a view to ascertain any defect or non-compliance with a product, and request documentation believed to contain information relevant to the enforcement of the Act. Any person or company that contravenes a provision of the Motor Vehicle Safety Act or its regulations is guilty of an offence, and liable to the applicable penalty set out in the Act.

The proposed amendment would come into force on the date of publication in the Canada Gazette, Part II.

Contact

Denis Brault
Senior Regulatory Development Engineer
Motor Vehicle Safety Directorate
Transport Canada
330 Sparks Street
Ottawa, Ontario
K1A 0N5

Please note: It is important that comments be provided to the attention of the person noted above before the closing date. Submissions not sent directly to the person noted may not be considered as part of this regulatory proposal. An individual response to submissions will not be provided. The Canada Gazette, Part II, will contain any changes that are made resulting from comments received, along with a summary of relevant comments.

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to subsection 11(1)footnote a of the Motor Vehicle Safety Actfootnote b, proposes to make the annexed Regulations Amending Certain Regulations Made under the Motor Vehicle Safety Act (Notice of Defect and Notice of Non-compliance).

Interested persons may make representations concerning the proposed Regulations within 75 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Denis Brault, Senior Regulatory Development Engineer, Motor Vehicle Safety, Department of Transport, 330 Sparks Street, 11th Floor, Ottawa, Ontario K1A 0N5 (email: denis.brault@tc.gc.ca).

Ottawa, June 21, 2018

Jurica Čapkun
Assistant Clerk of the Privy Council

Regulations Amending Certain Regulations Made under the Motor Vehicle Safety Act (Notice of Defect and Notice of Non-compliance)

Amendments

Motor Vehicle Safety Regulations

1 Subsection 10(1) of the Motor Vehicle Safety Regulationsfootnote 3 is replaced by the following:

10 (1) For each vehicle to which the national safety mark is applied or that is imported into Canada, a company shall maintain in writing or in readily readable electronic form the records referred to in paragraph 5(1)(g) of the Act and retain those records for at least five years after the date of manufacture or importation.

2 Section 15 of the Regulations and the heading before it are replaced by the following:

Notice of Defect

15 (1) For the purposes of subsection 10(1) of the Act, a person who obtained a vehicle from a company is a prescribed person.

(2) A notice of defect that is required to be given under subsection 10(1) of the Act shall be in written or electronic form, and

(3) A company shall give the notice of defect to the vehicle's current owner and to the prescribed person as soon as feasible, but no later than 60 days after the day on which the company gives the notice of defect to the Minister.

(4) The notice of defect that is given to the Minister shall contain the following information:

(5) The company is not required to provide the Minister with the information referred to in paragraphs (4)(k) and (l) if it is not available on the day on which the notice is given but shall provide that information as soon as it is available.

(6) A notice of defect that is given to the vehicle's current owner shall contain the following information:

(7) The company is not required to provide to the current owner the information referred to in paragraph (6)(l) if it is not available on the day on which the notice is given but shall provide that information as soon as it is available.

(8) The words "SAFETY", "RECALL", "RAPPEL" and "SÉCURITÉ" are required

(9) A notice of defect that is given to a prescribed person shall contain the following information:

(10) The company is not required to provide to the prescribed person the information referred to in paragraph (9)(h) if it is not available on the day on which the notice is given but shall provide that information as soon as it is available.

Notice of Non-compliance

15.01 (1) For the purposes of subsection 10.1(1) of the Act, a person who obtained a vehicle from a company is a prescribed person.

(2) A notice of non-compliance that is required to be given under subsection 10.1(1) of the Act shall be in written or electronic form, and

(3) A company shall give the notice of non-compliance to the vehicle's current owner and to the prescribed person as soon as feasible, but no later than 60 days after the day on which the company gives the notice of non-compliance to the Minister.

(4) A notice of non-compliance that is given to the Minister shall contain the following information:

(5) The company is not required to provide the Minister with the information referred to in paragraphs (4)(k) and (l) if it is not available on the day on which the notice is given but shall provide that information as soon as it is available.

(6) A notice of non-compliance that is given to the vehicle's current owner shall contain the following information:

(7) The company is not required to provide to the current owner the information referred to in paragraph (6)(l) if it is not available on the day on which the notice is given but shall provide that information as soon as it is available.

(8) The words "SAFETY", "RECALL", "RAPPEL" and "SÉCURITÉ" are required

(9) A notice of non-compliance that is given to a prescribed person shall contain the following information:

(10) The company is not required to provide to the prescribed person the information referred to in paragraph (9)(h) if it is not available on the day on which the notice is given but shall provide that information as soon as it is available.

Reports

15.02 (1) Within five days of sending a notice of defect or non-compliance to an owner or a prescribed person, the company shall provide to the Minister a report containing

(2) Subsequently, for a period of five years after the date on which the notice of defect or non-compliance is sent to the owner or the prescribed person, the company shall provide the Minister with a copy of any communication or document that is related to the defect or non-compliance that was sent to the owner or prescribed person within five days of sending it and indicate the date on which it was sent.

15.03 (1) For the purposes of section 10.2 of the Act, a company that gives a notice of defect or non-compliance to an owner or a prescribed person shall provide the Minister, for a period of two years after the day on which the report referred to in subsection 15.02(1) was sent, with quarterly reports that contain the following information:

(2) Quarterly reports shall be provided to the Minister in accordance with the following schedule:

3 Section 18 of the Regulations is amended by adding the following after subsection (3):

(4) As of September 1, 2020, the owner's manual shall contain instructions on how the owner can contact the Department of Transport in order to report a safety concern relating to a vehicle.

Motor Vehicle Restraint Systems and Booster Seats Safety Regulations

4 (1) Subsection 106(1) of the Motor Vehicle Restraint Systems and Booster Seats Safety Regulationsfootnote 4 is replaced by the following:

Records

106 (1) For each restraint system or booster system to which the national safety mark is applied or that is imported into Canada, a company must maintain in writing or in readily readable electronic form the records referred to in paragraph 5(1)(g) of the Act and retain those records for at least five years after the date of manufacture or importation.

(2) Subsection 106(3) of the Regulations is replaced by the following:

Request from an inspector

(3) On request in writing from an inspector, a company must send to that inspector a copy, in either official language, of the records referred to in subsection (1) within

5 Section 110 of the Regulations and the heading before it are replaced by the following:

Notice of Defect

Prescribed persons

110 (1) For the purposes of subsection 10(1) of the Act, a person who obtained a restraint system or booster seat from a company is a prescribed person.

Form and language

(2) A notice of defect that is required to be given under subsection 10(1) of the Act must be in written or electronic form, and

Time period

(3) A company must give the notice to the current owner of the restraint system or booster seat and to the prescribed person as soon as feasible, but no later than 60 days after the day on which the company gives the notice of defect to the Minister.

Notice to Minister — content

(4) The notice of defect that is given to the Minister must contain the following information:

Unavailable information

(5) The company is not required to provide the Minister with the information referred to in paragraphs (4)(l) and (m) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Notice to owner — content

(6) A notice of defect that is given to the current owner of the restraint system or booster seat must contain the following information:

Unavailable information

(7) The company is not required to provide the current owner with the information referred to in paragraph (6)(k) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Required wording

(8) The words "SAFETY",  "RECALL", "RAPPEL" and "SÉCURITÉ" are required

Notice to prescribed person — content

(9) A notice of defect that is given to a prescribed person must contain the following information:

Unavailable information

(10) The company is not required to provide the prescribed person with the information referred to in paragraph (9)(h) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Notice of Non-Compliance

Prescribed person

110.01 (1) For the purposes of subsection 10.1(1) of the Act, a person who obtained a restraint system or booster seat from a company is a prescribed person.

Form and Language

(2) A notice of non-compliance that is required to be given under subsection 10.1(1) of the Act must be in written or electronic form, and

Time period

(3) A company must give the notice of non-compliance to the current owner of the restraint system or booster seat and to the prescribed person as soon as feasible, but no later than 60 days after the day on which the company gives the notice of non-compliance to the Minister.

Notice to Minister — content

(4) A notice of non-compliance that is given to the Minister must contain the following information:

Unavailable information

(5) The company is not required to provide the Minister with the information referred to in paragraphs (4)(l) and (m) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Notice to owner — content

(6) A notice of non-compliance that is given to the current owner of the restraint system or booster seat must contain the following information:

Unavailable information

(7) The company is not required to provide to the current owner the information referred to in paragraph (6)(k) if they are not available on the day on which the notice is given but must provide that information as soon as it is available.

Required wording

(8) The words "SAFETY", "RECALL", "RAPPEL" and "SÉCURITÉ" are required

Notice to prescribed person — content

(9) A notice of non-compliance that is given to a prescribed person must contain the following information:

Unavailable information

(10) The company is not required to provide to the prescribed person the information referred to in paragraph (9)(h) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Reports

Initial report

110.02 (1) Within five days of sending a notice of defect or non-compliance to an owner or a prescribed person, the company must provide the Minister with a report containing

Follow-up reports

(2) Subsequently, for a period of five years after the day on which the notice of defect or non-compliance is sent to the owner or the prescribed person, the company must provide the Minister with a copy of any communication or document that is related to the defect or non-compliance that was sent to the owner or prescribed person, within five days of sending it and indicate the date on which it was sent.

Quarterly reports

110.03 (1) For the purposes of section 10.2 of the Act, a company that gives a notice of defect or non-compliance to an owner or a prescribed person must provide the Minister, for a period of two years after the day on which the report in subsection 110.02(1) was sent, with quarterly reports that contain the following information:

Calendar

(2) Quarterly reports must be provided to the Minister in accordance with the following schedule:

Motor Vehicle Tire Safety Regulations

6 (1) Section 9(1) of the Motor Vehicle Tire Safety Regulationsfootnote 5 is replaced by the following:

Records

9 (1) For each tire to which the national safety mark is applied or that is imported into Canada, a company must maintain in writing or in readily readable electronic form the records referred to in paragraph 5(1)(g) of the Act and retain those records for at least five years after the date of manufacture or importation.

(2) Section 9 of the Regulations is amended by adding the following after subsection (2):

Copy of records

(2.1) On request in writing from an inspector, a company must send to that inspector a copy, in either official language, of the records referred to in subsection (1) within

7 Section 13 of the Regulations and the heading before it are replaced by the following:

Notice of Defect

Prescribed persons

13 (1) For the purposes of subsection 10(1) of the Act, a person who obtained a tire from a company is a prescribed person.

Form and language

(2) A notice of defect that is required to be given under subsection 10(1) of the Act must be in written or electronic form, and

Time period

(3) A company must give the notice to the tire's current owner and to the prescribed person as soon as feasible, but no later than 60 days after the day on which the company gives the notice of defect to the Minister.

Notice to Minister — content

(4) The notice of defect that is given to the Minister must contain the following information:

Unavailable information

(5) The company is not required to provide the Minister with the information referred to in paragraphs (4)(l) and (m) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Notice to owner — content

(6) A notice of defect that is given to the tire's current owner must contain the following information:

Unavailable information

(7) The company is not required to provide to the current owner the information referred to in paragraph (6)(l) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Required wording

(8) The words "SAFETY", "RECALL", "RAPPEL" and "SÉCURITÉ" are required

Notice to prescribed person — content

(9) A notice of defect that is given to a prescribed person must contain the following information:

Unavailable information

(10) The company is not required to provide to the prescribed person the information referred to in paragraph (9)(h) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Notice of Non-Compliance

Prescribed persons

13.01 (1) For the purposes of subsection 10.1(1) of the Act, a person who obtained a tire from a company is a prescribed person.

Form and language

(2) A notice of non-compliance that is required to be given under subsection 10.1(1) of the Act must be in written or electronic form, and

Time period

(3) A company must give the notice of non-compliance to the tire's current owner and to the prescribed person as soon as feasible, but no later than 60 days after the day on which the company gives the notice of non-compliance to the Minister.

Notice to Minister — content

(4) A notice of non-compliance that is given to the Minister must contain the following information:

Unavailable information

(5) The company is not required to provide the Minister with the information referred to in paragraphs (4)(l) and (m) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Notice to owner — content

(6) A notice of non-compliance that is given to the tire's current owner must contain the following information:

Unavailable information

(7) The company is not required to provide to the current owner the information referred to in paragraph (6)(l) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Required wording

(8) The words "SAFETY", "RECALL", "RAPPEL" and "SÉCURITÉ" are required

Notice to prescribed person — content

(9) A notice of non-compliance that is given to a prescribed person must contain the following information:

Unavailable information

(10) The company is not required to provide to the prescribed person the information referred to in paragraph (9)(h) if it is not available on the day on which the notice is given but must provide that information as soon as it is available.

Reports

Initial report

13.02 (1) Within five days of sending a notice of defect or non-compliance to an owner or a prescribed person, the company must provide the Minister with a report containing

Follow-up reports

(2) Subsequently, for a period of five years after the day on which the notice of defect or non-compliance is sent to the owner or the prescribed person, the company must provide the Minister with a copy of any communication or document that is related to the defect or non-compliance that was sent to the owner or prescribed person within five days of sending it and indicate the date on which it was sent.

Quarterly reports

13.03 (1) For the purposes of section 10.2 of the Act, a company that gives a notice of defect or non-compliance to an owner or a prescribed shall provide the Minister, for a period of two years after the day on which the report in subsection 13.02(1) was sent, with quarterly reports that contain the following information:

Calendar

(2) Quarterly reports must be provided to the Minister in accordance with the following schedule:

Coming into force

8 These Regulations come into force on the day on which they are published in the Canada Gazette, Part II.