Regulations Amending Certain Regulations Made Under the Motor Vehicle Safety Act (National Safety Marks and Importation): SOR/2020-22

Canada Gazette, Part II, Volume 154, Number 4

Registration
SOR/2020-22 February 4, 2020

MOTOR VEHICLE SAFETY ACT

P.C. 2020-26 February 3, 2020

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to subsection 11(1) footnote a of the Motor Vehicle Safety Act footnote b, makes the annexed Regulations Amending Certain Regulations Made Under the Motor Vehicle Safety Act (National Safety Marks and Importation).

Regulations Amending Certain Regulations Made Under the Motor Vehicle Safety Act (National Safety Marks and Importation)

Amendments

Motor Vehicle Safety Regulations

1 The long title of the Motor Vehicle Safety Regulations footnote 1 is replaced by the following:

Motor Vehicle Safety Regulations

2 Section 1 of the Regulations and the heading before it are repealed.

3 (1) The definition prescribed class in subsection 2(1) of the Regulations is repealed.

(2) The definitions power-assisted bicycle and restricted-use motorcycle in subsection 2(1) of the Regulations are repealed.

(3) The definitions bus, incomplete trailer, motorcycle, multi-purpose passenger vehicle, passenger car, restricted-use motorcycle, snowmobile, trailer, trailer converter dolly, truck and vehicle imported temporarily for special purposes in subsection 2(1) of the Regulations are replaced by the following:

(4) The definitions bus, motorcycle, multi-purpose passenger vehicle and passenger car in subsection 2(1) of the Regulations are replaced by the following:

(5) Paragraph (a) of the definition incomplete vehicle in subsection 2(1) of the Regulations is replaced by the following:

(6) The portion of the definition low-speed vehicle in subsection of 2(1) of the Regulations before paragraph (b) is replaced by the following:

(7) The portion of the definition three-wheeled vehicle in subsection of 2(1) of the Regulations before paragraph (a) is replaced by the following:

(8) Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:

(9) Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:

4 Section 3 of the Regulations is replaced by the following:

3 (1) For the purposes of these Regulations, the symbol set out in Schedule I is prescribed as the national safety mark.

(2) For the purposes of subsection 3(2) of the Act, on application by a company, the Minister may, in the form set out in Schedule II, authorize the company to apply the national safety mark to a vehicle.

5 Section 4 of the Regulations is replaced by the following:

4 (1) For the purposes of sections 4 and 5 of the Act, the classes of vehicles set out in Schedule III and incomplete vehicles are prescribed classes of vehicles.

(2) The prescribed classes of vehicles do not include

6 Subsection 5(2) of the Regulations is replaced by the following:

(2) Every vehicle, other than an incomplete vehicle, must conform to each standard that is referred to by number in column I of Schedule III and opposite which the letter “X” is set out in the subcolumn designating the class or subclass of the vehicle.

7 (1) Paragraph 5.1(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 5.1(2)(b) of the Regulations is replaced by the following:

8 (1) The portion of subsection 6(1) of the Regulations before paragraph (a) is replaced by the following:

6 (1) Subject to subsections (1.1) and 6.6(1), a company that manufactures a vehicle of a prescribed class that is a completed vehicle and that meets the requirements of these Regulations must ensure that the vehicle bears a compliance label displaying at least

(2) Paragraph 6(1)(b) of the Regulations is replaced by the following: (3) The portion of paragraph 6(1)(f) of the Regulations before subparagraph (i) is replaced by the following: (4) Paragraph 6(2)(b) of the Regulations is replaced by the following: (5) Paragraph 6(3)(c) of the Regulations is replaced by the following: (6) Section 6 of the Regulations is amended by adding the following after subsection (9):

(10) In the case of a restricted-use motorcycle, a statement in both official languages that the vehicle is a restricted-use motorcycle or all-terrain vehicle and is not intended for use on public roads must appear on the compliance label or on a separate label permanently applied to the vehicle in a conspicuous location.

9 The heading before section 11 and sections 11 and 12 of the Regulations are replaced by the following:

Importation

Vehicles Imported Under Sections 5 and 6 of the Act

11 (1) For the purposes of paragraph 5(1)(b) of the Act, a person that imports a vehicle of a prescribed class must, before importation, produce evidence that the vehicle conforms to the standards set out in these Regulations by providing the Minister with the following information:

(2) Despite subsection (1), a person that imports at least 2,500 vehicles annually is not required to provide the information referred to in subsection (1) unless the Minister makes a written request and, in that case, the person must provide that information to the Minister within 30 days after the day on which the request is made.

(3) Subsection 5(3) of the Act does not apply to a vehicle sold at the retail level in the United States or a prescribed vehicle from Mexico, if the vehicle does not meet the condition set out in paragraph 7(2)(a) of the Act.

(4) A company that imports a vehicle under subsection 5(3) of the Act must provide the Minister, before importation, with the information referred to in paragraphs (1)(a) to (d) and the following information:

Vehicles Imported Temporarily for Special Purposes

11.1 For the purposes of paragraph 7(1)(a) of the Act, the prescribed purposes for which a vehicle may be imported temporarily are the following:

11.2 For the purposes of paragraph 7(1)(a) of the Act, a vehicle imported temporarily for special purposes must have a vehicle identification number that conforms to the requirements of section 115 of Schedule IV or, if there is no vehicle identification number, a serial number.

11.3 (1) The declaration referred to in paragraph 7(1)(a) of the Act must be filed with the Minister, be signed by the person importing the vehicle and contain the following information:

(2) Despite subsection (1), a person that imports at least 2,500 vehicles annually is not required to include the information referred to in paragraphs (1)(a), (c), (e) to (g) and (k) in the declaration but must provide that information to the Minister within 30 days after the day on which a written request is made by the Minister.

11.4 For the purposes of subsection 7(1.02) of the Act, a person that imports a vehicle imported temporarily for special purposes may donate the vehicle to a public museum or to an educational institution designated by the Canada Revenue Agency, under the terms of an agreement that describes how the recipient will ensure that the vehicle will not be driven or drawn on public roads.

11.5 A person who imports fewer than 2,500 vehicles annually must provide, as applicable, evidence of the exportation, destruction or donation of any vehicle imported temporarily for special purposes to the Minister within 30 days after the day on which the period referred to paragraph 7(1)(a) of the Act ends.

Vehicles Imported Under Subsections 7(2) and (2.1) of the Act

General

12 (1) The person designated for the purposes of subsections 7(2) and (2.1) of the Act is the entity with which the Department of Transport has entered into a contract to operate the national program for the registration, inspection and certification of imported vehicles, known as the registrar of imported vehicles.

(2) For the purposes of subsections 7(2) and (2.1) of the Act, a passenger car, multi-purpose passenger vehicle, truck or bus that is a used vehicle within the meaning of the North American Free Trade Agreement is a prescribed vehicle from Mexico.

Vehicles Sold at the Retail Level in the United States and Prescribed Vehicles from Mexico

12.1 (1) For the purposes of paragraph 7(2)(a) of the Act, the prescribed requirements that a vehicle sold at the retail level in the United States or a prescribed vehicle from Mexico must meet are the following:

(2) For the purposes of paragraph 7(2)(b) of the Act, the prescribed requirements that a vehicle sold at the retail level in the United States or a prescribed vehicle from Mexico must meet to be certified by the registrar of imported vehicles are the following:

12.2 (1) The declaration referred to in paragraph 7(2)(b) of the Act, made by a person who imports a vehicle sold at the retail level in the United States or a prescribed vehicle from Mexico, must be signed by that person and contain the following information:

(2) In the case of a vehicle sold at the retail level in the United States, the declaration must also contain the following information:

(3) In the case of a prescribed vehicle from Mexico, the declaration must also contain the following information:

12.3 For the purposes of paragraph 7(2)(b) of the Act, the prescribed period during which a vehicle sold at the retail level in the United States or a prescribed vehicle from Mexico must be brought into compliance with the requirements of subsection 12.1(2) and certified by the registrar of imported vehicles is the following:

12.4 (1) After recording the vehicle in its registration system and inspecting the vehicle, the registrar of imported vehicles must certify the vehicle by issuing a Canadian certification label in both official languages if it determines that the vehicle conforms to the requirements of subsection 12.1(2).

(2) The Canadian certification label must

Vehicles Sold at the Retail Level in the United States and Prescribed Vehicles from Mexico — Importation for Components

12.5 (1) The declaration referred to in subsection 7(2.1) of the Act, made by a person that imports for components a vehicle sold at the retail level in the United States or a prescribed vehicle from Mexico, must be signed by that person and contain the following information:

(2) In the case of a vehicle sold at the retail level in the United States, the declaration must also contain the following information:

(3) In the case of a prescribed vehicle from Mexico, the declaration must also include the following information:

12.6 After receiving the declaration referred to in section 12.5, the registrar of imported vehicles must record the vehicle in its registration system.

10 Schedules I to III to the Regulations are replaced by the Schedules I to III set out in Schedule 1 to these Regulations.

11 Schedule IV to the Regulations is amended by replacing the references after the heading “SCHEDULE IV” with the following:

(Subsections 2(1) and 5(1) and (3), section 11.2 and paragraphs 12.1(1)(c) and (2)(b) to (k))

12 Subsection 110(1) of Schedule IV to the Regulations is replaced by the following:

110 (1) Every motor vehicle with a GVWR of 4 536 kg or less — except motorcycles other than motor tricycles equipped with passenger car tires, restricted-use motorcycles, three-wheeled vehicles equipped with tires other than passenger car tires and low-speed vehicles — and every tire rim manufactured for use on those vehicles must conform to the requirements of Technical Standards Document No. 110, Tire Selection and Rims for Motor Vehicles With a GVWR of 4 536 kg or Less (TSD 110), as amended from time to time.

13 Subsection 115(9) of Schedule IV to the Regulations is replaced by the following:

(9) The Minister may require manufacturers of vehicles in respect of which this section applies to submit to the Minister, for each make and prescribed class of vehicle manufactured, those characters that uniquely identify the vehicle, including, where applicable, the twelfth to fourteenth characters, inclusive, that constitute part of the identifier, and, in all cases, the information necessary to decipher the characters in vehicle identification numbers.

14 Subsection 120(1) of Schedule IV to the Regulations is replaced by the following:

120 (1) Every motor vehicle with a GVWR of more than 4 536 kg, every three-wheeled vehicle equipped with tires other than passenger car tires, every motorcycle other than motor tricycles equipped with passenger car tires and every tire rim manufactured for use on those vehicles must conform to the requirements of Technical Standards Document No. 120, Tire Selection and Rims for Motor Vehicles With a GVWR of More Than 4 536 kg (TSD 120), as amended from time to time.

15 Schedules VII and VIII to the Regulations are repealed.

16 The Regulations are amended by replacing “class”, “class prescribed by the Regulations” and “prescribed class” with “prescribed class”, with any necessary modifications, in the following provisions:

17 The Regulations are amended by replacing “restricted-use motorcycle” with “restricted-use vehicle”, with any necessary modifications, in the following provisions:

Motor Vehicle Restraint Systems and Booster Seats Safety Regulations

18 Subsections 101(1) and (2) of the Motor Vehicle Restraint Systems and Booster Seats Safety Regulations footnote 2 are replaced by the following:

National Safety Mark

101 (1) For the purposes these Regulations, the symbol set out in Schedule 2 is prescribed as the national safety mark.

Authorization by Minister

(1.1) For the purposes of subsection 3(2) of the Act, on application by a company, the Minister may, in the form set out in Schedule 1, authorize the company to apply the national safety mark to a restraint system or booster seat and to any accompanying documentation or any packaging.

Application for authorization

(2) A company that intends to apply the national safety mark to a restraint system or booster seat must apply to the Minister to obtain the authorization referred to in subsection (1.1).

19 Section 102 of the Regulations is replaced by the following:

Prescribed classes of equipment

102 For the purposes of sections 4 and 5 of the Act, child restraint systems, infant restraint systems, booster seats, restraint systems for disabled persons and restraint systems for infants with special needs are prescribed classes of equipment.

20 Section 109 of the Regulations is replaced by the following:

Prescribed purposes

109 (1) For the purposes of paragraph 7(1)(a) of the Act, the prescribed purposes for which a restraint system or booster seat may be imported temporarily are the following:

Declaration

(2) The declaration referred to in paragraph 7(1)(a) of the Act must be filed with the Minister, be signed by the person importing the restraint system or booster seat and contain the following information:

21 Schedule 1 to the Regulations is replaced by the Schedule 1 set out in Schedule 2 to these Regulations.

22 Schedule 2 to the Regulations is amended by replacing the reference after the heading “SCHEDULE 2” with the following:

(Subsections 101(1) and (3))

23 Schedule 4 to the Regulations is repealed.

Motor Vehicle Tire Safety Regulations

24 The heading “Catégories d’équipement déterminées par règlement et normes réglementaires” before section 3 of the French version of the Motor Vehicle Tire Safety Regulations footnote 3 is replaced by the following:

Catégories d’équipement réglementaires et normes réglementaires

25 The portion of subsection 3(1) of the Regulations before paragraph (a) is replaced by the following:

TSD 109

3 (1) The following tires are prescribed as a class of equipment for the purposes of sections 4 and 5 of the Act and must conform to the requirements of TSD 109 and section 6:

26 The portion of subsection 4(1) of the Regulations before paragraph (a) is replaced by the following:

TSD 119

4 (1) The following tires, other than tires of the class prescribed by subsection 3(1), are prescribed as a class of equipment for the purposes of sections 4 and 5 of the Act and must conform to the requirements of TSD 119 and section 6:

27 Subsection 5(1) of the Regulations is replaced by the following:

TSD 139

5 (1) Tires, other than tires of a class prescribed by subsection 3(1) or 4(1), that are radial ply tires designed for use on a motor vehicle with a GVWR of 4 536 kg or less that was manufactured on or after January 1, 1975 are prescribed as a class of equipment for the purposes of sections 4 and 5 of the Act and must conform to the requirements of TSD 139 and section 6.

28 (1) The portion of subsection 6(3) of the Regulations before paragraph (b) is replaced by the following:

(3) Except in the case referred to in subsection (8), the tire identification number and partial tire identification number must be permanently moulded into or onto the tire

(2) Paragraph 6(6)(a) of the Regulations is replaced by the following:

(3) Section 6 of the Regulations is amended by adding the following after subsection (7):

Optional symbols — Code of Federal Regulations

(8) At the manufacturer’s option, the symbols referred to in subsection (4) and, if applicable, subsection (5) may be replaced by those set out in either option 1 or option 2 of Figure 1 of section 574.5, chapter V, Title 49 of the Code of Federal Regulations of the United States (revised as of October 1, 2015), in the manner and at the location specified in notes 1 to 4 of that figure and in paragraphs (a)(1), (b)(1) to (3), (d)(1), (e)(1) to (3) and (f) of that section.

For greater certainty

(9) For greater certainty, the requirements of section 574.5, chapter V, Title 49 of the Code of Federal Regulations of the United States referred to in subsection (8) respecting retreaded tires do not apply.

29 Section 7 of the Regulations is replaced by the following:

National Safety Mark

7 (1) For the purposes of these Regulations, the symbol set out in Figure 1 of Schedule 1 is prescribed as the national safety mark.

Authorization by Minister

(2) For the purposes of subsection 3(2) of the Act, on application by a company, the Minister may, in the form set out in Schedule 2, authorize the company to apply the national safety mark to a tire.

Application of the national safety mark

(3) For the purposes of subsection 3(2) of the Act, when a company applies the national safety mark to a tire, the company must

30 The Regulations are amended by adding the following after section 9:

Records — mandatory symbols

9.1 (1) A company must maintain a record of the symbols required by paragraph 6(4)(b) and the corresponding size designation of the tire.

Records — optional symbols

(2) If a company uses the symbols referred to in subsection 6(5), it must maintain a record of the symbols used, accompanied by the full name of the owner of the brand name, if applicable, and a description of the main characteristics of the tire.

Records — Code of Federal Regulations symbols

(3) If a company uses the symbols referred to in subsection 6(8), it must maintain a record of the following, with a corresponding legend:

Provision of records to Minister

(4) A company must, on request, make any record referred to in this section available to the Minister.

31 Section 12 of the Regulations is replaced by the following:

Prescribed purposes

12 (1) For the purposes of paragraph 7(1)(a) of the Act, the prescribed purposes for which a tire may be imported temporarily are the following:

Declaration

(2) The declaration referred to in paragraph 7(1)(a) of the Act must be filed with the Minister, be signed by the person importing the tire and contain the following information:

32 Schedules 1 and 2 to the Regulations are replaced by the Schedules 1 and 2 set out in Schedule 3 to these Regulations.

33 Schedule 3 to the Regulations is amended by replacing the references after the heading “SCHEDULE 3” with the following:

(Subsection 8(1))

34 Schedule 4 to the Regulations is repealed.

Coming into Force

35 (1) Subject to subsection (2), these Regulations come into force on the day on which section 213, subsections 217(1), (3), (4) and (6) and section 230 of the Economic Action Plan 2014 Act, No. 1, chapter 20 of the Statutes of Canada, 2014, come into force, but if they are registered after that day, they come into force on the day on which they are registered.

(2) Subsections 3(2), (4) and (9) and 8(5) and section 17 come into force on the first anniversary of the day on which section 1 of these Regulations comes into force.

SCHEDULE 1

(Section 10)

SCHEDULE I

(Subsection 3(1) and paragraphs 6(1)(c), 6.2(1)(g) and 6.4(1)(e))

Symbol of the Department of Transport

SCHEDULE II

(Subsection 3(2))

Department of Transport

Motor Vehicle Safety Act (section 3)
Motor Vehicle Safety Regulations (subsection 3(2))

Ministerial Authorization

Under the Motor Vehicle Safety Act and the Motor Vehicle Safety Regulations,

[company name and address]

is authorized to apply the national safety mark to any vehicle of a prescribed class referred to in section 4 of the Motor Vehicle Safety Regulations, on the condition that the vehicle conforms to all of the applicable Canada Motor Vehicle Safety Standards.

The national safety mark must be applied at the following premises:

[address of the premises]

This ministerial authorization (number ) expires on

Issued in Ottawa on , 20

for the Minister of Transport

SCHEDULE III

(Subsections 4(1) and 5(2))

Canada Motor Vehicle Safety Standards

Column I

Column II

Column III

Classes of Vehicles

Item (CMVSS)

Description

Bus

Motorcycle

Multi-purpose Passenger Vehicle

Passenger Car

Snowmobile

Trailer

Trailer Converter Dolly

Truck

Low-speed Vehicle

Three-wheeled Vehicle

Enclosed Motorcycle

Open Motorcycle

Limited-speed Motorcycle

Motor Tricycle

Restricted-use Motorcycle

101

Controls, Tell-tales, Indicators and Sources of Illumination

X

          

X

X

      

X

  

X

102

Transmission Control Functions

X

          

X

X

      

X

  

X

103

Windshield Defrosting and Defogging

X

          

X

X

      

X

  

X

104

Windshield Wiping and Washing System

X

          

X

X

      

X

  

X

105

Hydraulic and Electric Brake Systems

X

          

X

        

X

    

106

Brake Hoses

X

X

X

X

X

  

X

X

  

X

X

X

  

X

108

Lighting Systems and Reflective Devices

X

X

X

X

X

X

X

X

  

X

  

X

  

X

110

Tire Selection and Rims for Motor Vehicles With a GVWR of 4 536 kg or Less

X

      

X

  

X

X

  

X

X

X

  

X

111

Mirrors and Rear Visibility Systems

X

X

X

X

X

  

X

X

      

X

X

X

113

Hood Latch System

X

X

        

X

X

      

X

  

X

114

Theft Protection and Rollaway Prevention

            

X

X

      

X

  

X

115

Vehicle Identification Number

X

X

X

X

X

X

X

X

X

X

X

X

X

X

116

Motor Vehicle Brake Fluids

X

X

X

X

X

  

X

X

  

X

X

X

  

X

118

Power-Operated Window, Partition and Roof Panel Systems

  

X

        

X

X

      

X

  

X

120

Tire Selection and Rims for Motor Vehicles With a GVWR of More Than 4 536 kg

X

X

X

X

X

  

X

X

  

X

X

X

  

X

121

Air Brake Systems

X

                

X

X

X

    

122

Motorcycle Brake Systems

  

X

X

X

X

                  

123

Motorcycle Controls and Displays

  

X

X

X

X

                  

124

Accelerator Control Systems

X

          

X

X

      

X

  

X

126

Electronic Stability Control Systems for Light Vehicles

X

          

X

X

      

X

    

131

School Bus Pedestrian Safety Devices

X

                          

135

Light Vehicle Brake Systems

X

          

X

X

      

X

  

X

136

Electronic Stability Control Systems for Heavy Vehicles

X

                    

X

    

201

Occupant Protection

X

          

X

X

      

X

    

202

Head Restraints

X

          

X

X

      

X

  

X

203

Driver Impact Protection and Steering Control System

X

          

X

X

      

X

  

X

204

Steering Column Rearward Displacement

X

          

X

X

      

X

  

X

205

Glazing Materials

X

X

X

X

X

  

X

X

  

X

  

X

X

X

206

Door Locks and Door Retention Components

X

X

        

X

X

      

X

  

X

207

Anchorage of Seats

X

          

X

X

      

X

  

X

208

Occupant Protection in Frontal Impacts

X

X

        

X

X

      

X

  

X

209

Seat Belt Assemblies

X

X

        

X

X

      

X

X

X

210

Seat Belt Anchorages

X

X

        

X

X

      

X

  

X

210.1

User-ready Tether Anchorages for Restraint Systems and Booster Seats

X

          

X

X

      

X

  

X

210.2

Lower Universal Anchorage Systems for Restraint Systems and Booster Seats

X

          

X

X

      

X

  

X

212

Windshield Mounting

X

          

X

X

      

X

    

213.4

Built-in Restraint Systems and Built-in Booster Seats

X

          

X

X

      

X

    

214

Side Impact Protection

X

          

X

X

      

X

  

X

215

Bumpers

              

X

            

216

Roof Crush Resistance

X

          

X

X

      

X

    

217

Bus Window Retention, Release and Emergency Exits

X

                          

219

Windshield Zone Intrusion

X

          

X

X

      

X

    

220

Rollover Protection

X

          

X

X

      

X

    

221

School Bus Body Joint Strength

X

                          

222

School Bus Passenger Seating and Crash Protection

X

                          

223

Rear Impact Guards

                  

X

        

226

Ejection Mitigation

X

          

X

X

      

X

  

X

301

Fuel System Integrity

X

          

X

X

      

X

    

301.1

LPG Fuel System Integrity

X

          

X

X

      

X

  

X

301.2

CNG Fuel System Integrity

X

          

X

X

      

X

  

X

301.3

Fuel System Integrity for Three-wheeled Vehicles and Motorcycles

  

X

X

X

X

                

X

302

Flammability of Interior Materials

X

          

X

X

      

X

  

X

305

Electrolyte Spillage and Electrical Shock Protection

X

          

X

X

      

X

  

X

401

Interior Trunk Release

              

X

          

X

500

Low-speed Vehicles

                        

X

  

505

Vehicle Stability

        

X

                

X

901

Axles

                  

X

        

903

C-dolly Specifications

                    

X

      

904

C-dolly Hitch Requirements

                  

X

        

905

Trailer Cargo Anchoring Devices

                  

X

        

906

Snowmobile Trailers

                  

X

        

1106

Noise Emissions

X

X

X

X

X

  

X

X

      

X

  

X

1201

Snowmobiles

                

X

          

SCHEDULE 2

(Section 21)

SCHEDULE 1

(Subsection 101(1.1))

Department of Transport

Motor Vehicle Safety Act (section 3)
Motor Vehicle Restraint Systems and Booster Seats Safety Regulations (subsection 101(1.1))

Ministerial Authorization

Under the Motor Vehicle Safety Act and the Motor Vehicle Restraint Systems and Booster Seats Safety Regulations,

[company name and address]

is authorized to apply the national safety mark to any restraint system or booster seat of a prescribed class referred to in section 102 of the Motor Vehicle Restraint Systems and Booster Seats Safety Regulations, on the condition that the restraint system or booster seat conforms to all of the applicable Canada Motor Vehicle Safety Standards.

The national safety mark must be applied at the following premises:

[address of the premises]

This ministerial authorization (number ) expires on

Issued in Ottawa on , 20

for the Minister of Transport

SCHEDULE 3

(Section 32)

SCHEDULE 1

(Paragraphs 6(3)(a) and (6)(a), subsection 7(1), paragraph 7(3)(a) and subparagraph 7(3)(b)(i))

National Safety Mark and Tire Identification Numbers

National Safety Mark

Figure 1 — National Safety Mark

Tire Identification Number

Figure 2 — Tire Identification Number

Notes:

Location of Tire Identification Number and National Safety Mark

Figure 3 — Location of Tire Identification Number and National Safety Mark

SCHEDULE 2

(Section 7(2))

Department of Transport

Motor Vehicle Safety Act (section 3)

Motor Vehicle Tire Safety Regulations (subsection 7(2))

Ministerial Authorization

Under the Motor Vehicle Safety Act and the Motor Vehicle Tire Safety Regulations,

[company name and address]

is authorized to apply the national safety mark to any tire of a prescribed class referred to in subsection 3(1), 4(1) or 5(1) of the Motor Vehicle Tire Safety Regulations, on the condition that the tire conforms to all of the applicable Canada Motor Vehicle Safety Standards.

The national safety mark must be applied at the following premises:

[address of the premises]

This ministerial authorization (number __ ) expires on ______

Issued in Ottawa on ________________, 20____________________________ for the Minister of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: The North American Free Trade Agreement (NAFTA) provides that Canada eliminate any restrictions on the importation of prescribed vehicles from Mexico. To meet this objective, the Motor Vehicle Safety Act (the Act) was amended in 2014 to, among other things, reduce barriers to the importation into Canada of certain motor vehicles from Mexico and the United States. Amendments to the Motor Vehicle Safety Regulations (the Vehicle Regulations) are being made to reflect changes to the Act.

Description: Amendments to the Vehicle Regulations will allow for the importation of vehicles from Mexico, expand the definition of “restricted-use vehicle” and clarify the link between the expressions “at the time [of] the main assembly” in the Act and “date of manufacture” in the Vehicle Regulations.

These amendments will also set out the conditions for the temporary importation of vehicles, tires and child restraint systems in their respective regulations. A temporarily imported vehicle may also be donated as provided for in the Vehicle Regulations.

In addition, these amendments will set out the National Safety Mark for vehicles and tires in their respective regulations, and allow the optional use of the United States format for the Tire Identification Number (TIN).

Rationale: The amendments will reduce trade barriers by amending the requirements related to temporary importation, vehicles imported from Mexico, and vehicles imported from the United States and Mexico for parts. These amendments are aligned with the NAFTA objective aimed at eliminating trade barriers and facilitating the cross-border movement of goods and services between Canada, the United States and Mexico, and deliver on specific commitments to remove barriers to the importation of used motor vehicles from Mexico.

The definition for the prescribed class of “restricted-use motorcycle” has also been amended and renamed to “restricted-use vehicle” to ensure that these types of vehicles will fall under the defect and recall regime while also improving alignment between Canada and the United States by applying a minimum speed for consideration as a prescribed class to restricted-use vehicles to exclude slow-moving vehicles not designed for use on public roads.

Finally, Transport Canada is providing tire manufacturers greater flexibility in respect of the TIN format by keeping existing Canadian TIN configurations as well as allowing those introduced by the United States in its 2015 Final Rule regarding the TIN.

Issues

The Motor Vehicle Safety Act (the Act) was amended in 2014 to, among other things, reduce barriers to the importation into Canada of certain motor vehicles from Mexico and the United States. As a result of this amendment, the Motor Vehicle Safety Regulations (the Vehicle Regulations) are being amended to reflect changes made to the Act. These regulatory amendments come into force at the same time as the related amendments to the Act, with a 12-month delay for vehicles not previously captured in the scope of the Vehicle Regulations.

Prior to these amendments, under the Vehicle Regulations, a very select few off-road and slow-moving vehicles (such as some scooters and low-speed, all-terrain vehicles) were required to have a vehicle identification number and reflectors, as their design resulted in them falling under the restricted-use motorcycle class. These amendments will clarify that it was not the intention for these select few low-speed, off-road-use vehicles to fall under the Vehicle Regulations.

There have also been concerns raised regarding the use of the expressions “at the time [of] the main assembly” in the Act and “date of manufacture” in the Vehicle Regulations. These amendments modify the Vehicle Regulations to clarify how these two expressions are linked. In addition, other changes to the Act and the need for clarifications require that minor amendments be made to the Vehicle Regulations, the Motor Vehicle Tire Safety Regulations (the Tire Regulations) and the Motor Vehicle Restraint Systems and Booster Seats Safety Regulations (the Restraint Systems and Booster Seats Regulations).

Background

The North American Free Trade Agreement (NAFTA) provides that, as of January 1, 2019, Canada cannot adopt or maintain any prohibition or restriction on the importation of used vehicles from Mexico. Accordingly, the Vehicle Regulations are being amended to implement this obligation.

To deliver on this commitment, the Act was amended in 2014, permitting the importation of prescribed used vehicles from Mexico into Canada that do not comply with the vehicle requirements referred to in sections 5 and 6 of the Act, on the condition that they meet certain regulatory requirements; and, before they are registered under the laws of a province, that they are brought into conformity with other specific Canadian safety regulatory requirements and certified by the Registrar of Imported Vehicles (i.e. the vehicles must satisfy these requirements before they are registered and used). Subsection 7(2) of the Act will regulate the importation of vehicles from Mexico and vehicles sold at the retail level in the United States.

A new subsection 7(2.1) was created under the amended Act that will allow, under certain conditions, vehicles from the United States or Mexico to be imported and to be dismantled for their components. Such vehicles cannot be registered under the laws of a province or territory.

Paragraph 7(1)(a) of the Act that deals with temporary importation was also amended. Prior to the Act amendments, the Act only permitted the temporary importation of vehicles and equipment into Canada that do not conform to sections 5 and 6 of the Act for the purposes of exhibition, demonstration, evaluation or testing. Once it is in force, the new paragraph 7(1)(a) will permit the temporary importation of vehicles and equipment into Canada for purposes set out in the Regulations, but still only if the vehicle or equipment will be used for one of the prescribed purposes. In addition, subject to the Minister’s approval, the importer may donate the vehicle.

The definition “national safety mark” set out in the Act is replaced, and Schedule II — National Safety Mark is repealed. footnote 4 Prior to these amendments, the national safety marks for vehicles and for restraint systems and booster seats were set out in the respective regulations, while the Tire Regulations referred to the national safety mark in Schedule II of the Act. Changes are made to Schedule I of the Vehicle Regulations to replace the national safety mark for vehicles and to Schedule 2 of the Tire Regulations to set out the national safety mark for tires.

Hereinafter in this Regulatory Impact Analysis Statement, the Motor Vehicle Safety Regulations, the Motor Vehicle Tire Safety Regulations and the Motor Vehicle Restraint Systems and Booster Seats Safety Regulations shall be referred to as “the Regulations.”

Objective

The objective of the amendments is to reduce trade barriers by amending the Vehicle Regulations so they reflect the changes to the Act.

The objective of these amendments is to update the Vehicle Regulations so they reflect the changes to the Act, which will reduce trade barriers for vehicles imported from Mexico.  In addition, due to the importation framework set out in the amended Act, these amendments simplify the requirements for importing vehicles and vehicles imported for their components, from both the United States and Mexico.

Furthermore, the definition for the prescribed class of “restricted-use motorcycle” is expanded to encompass additional types of utility vehicles to those already included so that the same defect and recall provisions will apply.  The “restricted-use motorcycle” class will also have a specified minimum speed limit to exclude lower speed vehicles that are not designed for use on public roads. Finally, the prescribed class “restricted-use motorcycle” is also renamed “restricted-use vehicle” in order to better represent the types of vehicles included under the expanded definition.

Description

These amendments update the Vehicle Regulations to specify which vehicles may be imported from Mexico and set out the conditions and the requirements under which these vehicles may be imported into Canada. The amendment of section 12 of the Vehicle Regulations requires that vehicles imported from Mexico conform to the same requirements applicable to the importation of vehicles sold at the retail level in the United States. Furthermore, it defines a prescribed vehicle from Mexico as a used passenger car, multi-purpose passenger vehicle, truck or bus. The Vehicle Regulations outline that a “used vehicle” within the meaning of NAFTA, which provides that it is a vehicle that has been sold, leased or loaned; has been driven for more than 1 000 km if the vehicle has a gross weight of less than five metric tons, or 5 000 km if the vehicle has a gross weight of five metric tons or more; or was manufactured prior to the current year and at least 90 days have elapsed since the date of manufacture, is a prescribed vehicle from Mexico for the purpose of subsections 7(2) and (2.1).

Furthermore, subsection 7(2.1) has been added to the Act to allow the importation of prescribed vehicles from Mexico and vehicles sold at the retail level in the United States that do not conform to Canadian safety standards and that are imported so that they may be dismantled for their components to be sold individually. These amendments add a section to the Vehicle Regulations to regulate the importation of these vehicles for their components. A vehicle imported into Canada to be dismantled into parts cannot be registered under the laws of a province.

With the amendment to paragraph 7(1)(a) of the Act, the temporary importation regime for vehicles or equipment that will be used in Canada for exhibition, demonstration, evaluation and testing is replaced. The amended Act provides that the temporary importation of vehicles and equipment must be for a prescribed purpose. The Regulations set out prescribed purposes and the necessary conditions under which vehicles or equipment can be imported. The current options for temporary importation (exhibition, demonstration, evaluation and testing) are retained and new options are introduced, including for visits to Canada in the case of a vehicle that is licensed in the United States and owned by a person with a residential address in Canada.

Under subsection 7(1.02) of the Act, it will be possible for a temporarily imported vehicle to be donated, as provided for in the amendments to the Vehicle Regulations. The Vehicle Regulations provide the donor with a choice of two recipients, either a public museum or an educational institution designated by the Canada Revenue Agency.

The Tire Regulations and the Restraint Systems and Booster Seats Regulations are also amended to set out the conditions under which these types of equipment can be imported on a temporary basis.

As a result of the new definition of “national safety mark” in the Act, Schedule II of the Act, which currently contains the symbol for the national safety mark, is repealed. Consequently, amendments are made to replace the national safety mark for the purposes of the Vehicle Regulations and to set out the national safety mark for the purposes of the Tire Regulations.

The amendments also rename the prescribed class “restricted-use motorcycle” to “restricted-use vehicle” in order to better represent the types of vehicles included under the expanded definition of the prescribed class. The definition of “restricted-use vehicle” is expanded to encompass all vehicles that are designed to travel with not more than four wheels in contact with the ground and are not designed for use on public roads. A restricted-use motorcycle today, and a restricted-use vehicle in the future, with a maximum attainable speed of less than 32 km/h in 1.6 km (1 mile) will no longer be considered as part of the prescribed class.

The expanded definition for the prescribed class “restricted-use vehicle” encompasses vehicles not previously captured in the Vehicle Regulations, such as four-wheeled off-road utility vehicles. Prior to these amendments, these vehicles were not regulated and their inclusion in the scheme under the Act will ensure that, among other things, these vehicles fall under the defect and recall regime. The definition also creates better alignment between the Canadian regulations and those of the United States where lower-speed off-road vehicles, such as power-assisted bicycles, scooters and electric or low-speed all-terrain vehicles are not federally regulated by the National Highway Traffic Safety Administration (NHTSA). In Canada, these vehicles will now fall under provincial or territorial jurisdictions. The provinces and territories have the freedom of deciding whether to permit the use of these vehicles in their jurisdictions and under what conditions.

These amendments introduce in the Vehicle Regulations a definition for “date of manufacture.” This new definition is needed to clarify the link between the expressions “at the time [of] the main assembly,” used in the Act, and “date of manufacture,” used in the Vehicle Regulations. These different expressions were intended to have the same basic meaning; therefore, “date of manufacture” is defined in the Vehicle Regulations as the day, month and year on which the main assembly of the vehicle was completed.

Finally, while updating the Tire Regulations in 2013, Transport Canada had allowed a 2- or 3-character plant code in the tire information number (TIN) in anticipation of the upcoming plant code upgrade of the NHTSA. However, when the NHTSA issued its 2015 Final Rule regarding the TIN, in addition to the 3-character plant code, the United States TIN was fixed at 13 characters. Since then, tire manufacturers have requested the option to use the United States TIN format on tires sold in Canada to avoid the need for duplicate tire tooling. Transport Canada will allow manufacturers to use the new United States 13-character TIN. This will provide the most configuration flexibility and will minimize the financial impact on tire manufacturers, while maintaining TIN decipherability.

Regulatory development

Consultation

Transport Canada periodically issues its Regulatory Plan, which describes planned regulatory initiatives and changes to the Regulations. This plan is distributed to stakeholders (e.g. automotive industry, public safety organizations, and interested members of the general public). Stakeholders have the opportunity to comment on these initiatives by letter or email. Transport Canada also regularly consults, in face-to-face meetings or by teleconference, with the automotive industry, public safety organizations, the provinces and the territories.

The intent to move forward with this regulatory initiative was included in the Forward Regulatory Plan and Transport Canada’s Vehicle Safety Regulatory Plan that is distributed to the automotive industry and other stakeholders, either directly or through various industry associations and others. A summary outlining the initial drafting instructions to the Vehicle Regulations was provided to the vehicle manufacturers. Meetings were held with vehicle manufacturers and their representative organizations, where the changes to the regulatory requirements were further discussed. All stakeholder comments were taken into consideration while finalizing these amendments. No formal public consultations were held during the development of these amendments.

Transport Canada also consults biannually with the Tire and Rubber Association of Canada, which is the industry association representing tire manufacturers. TIN consultations took place during various meetings, being dedicated agenda items, and comments were also received from individual tire companies. During the May 2016 meeting, Transport Canada presented a proposal to allow the new 13-character NHTSA TIN, as well as the variable length TIN that is in use under the Tire Regulations. Transport Canada invited additional comments and provided an overview of the regulatory process. The proposal was positively received by the tire industry.

Prepublication in the Canada Gazette, Part I

The regulatory proposal was prepublished in the Canada Gazette, Part I, on May 19, 2018, followed by a 75-day comment period. Transport Canada (the Department) received comments from eight stakeholders including vehicle manufacturing associations the Global Automakers of Canada (GAC), the Canadian Vehicle Manufacturers’ Association (CVMA), the Motorcycle and Moped Industry Council (MMIC) and the Canadian Off-Highway Vehicle Distributors Council (COHV), as well as the Japan Automobile Tyre Manufacturers Association (JATMA), the Ontario Ministry of Transportation (MTO), and two consultant firms.

Overall, there was support for the regulatory proposal across submissions. GAC expressed their appreciation for the incorporation of the industry’s long-standing desire to allow temporarily imported vehicles to be donated at the end of the importation period. The CVMA expressed support regarding the proposed changes to the temporary importation requirements, specifically the ability for the Minister to allow temporary importation for periods longer than one year. The CVMA indicated that this would support innovation and facilitate testing of advanced technology vehicles in Canada for longer periods.

The following provides a summary of changes that were made to the proposed regulatory text as published in the Canada Gazette, Part I. These changes were as a result of stakeholder comments. In some cases, follow-up exchanges took place with the commenters to address the issues raised and to obtain further clarifications.

Temporary importation for use as a promotional tool

The regulatory proposal provided a new option under which a vehicle could be temporarily imported, that is as a “promotional tool.” The MTO commented that it would be beneficial if a definition for promotional tool were provided. Transport Canada has determined that the scope meant to be covered by this additional option is already accounted for under the options for temporary importation “exhibition” and “demonstration.” For this reason and to avoid undermining the enforcement regime, the proposed option “promotional tool” has been removed from the final regulatory text.

Changes to the prescribed class “restricted-use motorcycle”

The MMIC welcomed the expansion of the definition of a restricted-use motorcycle; however, due to this expansion, they suggested that the term “motorcycle” may no longer be reflective of the type of vehicles which would be considered a restricted-use motorcycle under the definition for the prescribed class. Therefore, they suggested renaming the prescribed class from “restricted-use motorcycle” to “restricted-use vehicle.” The Department agreed that the term “motorcycle” was no longer representative of the types of vehicle that would fit the expanded definition and has renamed the prescribed class “restricted-use motorcycle” to “restricted-use vehicle” while maintaining the abbreviation “RUM” required on the compliance label for identification of the prescribed class so as to limit any confusion for provincial and territorial vehicle registration purposes and to limit changes to labelling for vehicles already considered and labelled as a “RUM.”

In addition, MMIC also commented that the requirement for a label indicating that a “restricted-use vehicle” bear a label indicating that it is a restricted-use vehicle and not designed for use on public roads should be a labelling requirement under section 6 of the Vehicle Regulations rather than a part of the definition. The Department agrees that the clause should be removed from the definition and has moved it to subsection 6(10) of the Vehicle Regulations where it can be enforced as a requirement for restricted-use motor vehicles rather than a defining feature of the prescribed class.

MMIC also indicated that the wording surrounding the allowable placement of the compliance label for motorcycles and restricted-use motorcycles in paragraph 6(3)(c) presents challenges due to specifying that the label must be affixed to a permanent part of the motorcycle as close as practicable to the intersection of the steering post and steering handlebars so that it is easily readable without moving any part of the motorcycle except the steering system. The justification provided indicated that many restricted-use vehicles captured by the broader scope of the definition of the prescribed class do not have steering handlebars and so the location for the placement of the compliance label does not exist. The Department agrees with the justification provided by MMIC and has modified the requirement for the placement of the compliance label for restricted-use vehicles that do not have steering handlebars.

As part of their comments, MMIC and COHV requested that the proposed paragraph 4(2)(b), which set an attainable speed of 32 km/h for a vehicle to fall under the Vehicle Regulations, be deleted from the regulatory amendments. The intent of this requirement was to better align the types of vehicles regulated by Transport Canada and the NHTSA. However, as indicated by MMIC, Transport Canada has jurisdiction over all vehicles as defined in the Act, whereas the NHTSA only regulates highway vehicles. In order to make clear the intent of the amendments as proposed, the Department decided to apply the 32 km/h top speed to vehicles that meet the expanded definition of the prescribed class “restricted-use vehicle.” This effectively excludes vehicles not designed for use on public roads, such as power-assisted bicycles, scooters and electric or low-speed all-terrain vehicles, from the Vehicle Regulations, regardless of their power source and their power rating, provided that they have a maximum attainable top speed below 32 km/h.

Due to the changes to the definition and the expansion of the prescribed class “restricted-use vehicle” discussed above, the definitions for the prescribed classes “bus,” “multipurpose passenger vehicle” and “passenger car” required modifying to exclude “restricted-use vehicles” from their scope.

Clarifications to the Vehicle Importation Form

The CVMA and a Canadian consultant commented that Transport Canada should clarify the clause “status of the vehicle” on the Vehicle Importation Form. They noted that it may be useful to define what is meant by “status of the vehicle.” The Vehicle Regulations require that the status of a vehicle be reported in the case of a vehicle being imported for registration or for a vehicle being imported for parts. In these cases, a Vehicle Importation Form – Form 1 or a Vehicle Imported For Parts Form – Form 3, respectively, is traditionally completed and submitted for importation. In either case, the respective form makes clear the information required in order to identify the status of the vehicle for importation. The Department is of the opinion that no definition is needed in the Regulations, thus, it did not make any amendments to the proposed requirements.

References to U.S. Federal Regulations

The proposed amendments included a definition for “American compliance label,” making reference to chapter 301 of the U.S. Code of Federal Regulations. The CVMA indicated that rather than using the proposed language referring to part 571, chapter V, title 49 of the Code of Federal Regulations, it may be more appropriate to refer to United States Code Title 49, Section 30115 – Certification of Compliance. Transport Canada agrees with the comment provided by the CVMA, by referencing this specific section, the “American compliance label” would mean a label certifying compliance to the motor vehicle safety standards prescribed under the authority of the United States Code and provide some clarification to the intent of the wording. The Department has therefore modified the reference in the definition of “American compliance label” to “United States Code, Title 49, Section 30115 – Certification of Compliance.”

The CVMA also commented on the reference to part 571, chapter V, Title 49 of the Code of Federal Regulations that was proposed in paragraph 12.1(1)(a) for vehicles sold at the retail level in the United States or a prescribed vehicle from Mexico. The comment indicated that part 571 does not encompass part 541 – Theft, part 563 – EDR, part 565 – VIN, part 567 – Certification, or part 581 – Bumpers. The Department agrees that a vehicle sold at the retail level in the United States or a prescribed vehicle from Mexico must conform to the federal laws of the United States that were applicable on the day of manufacture as indicated by the American Compliance Label or in a statement from the manufacturer indicating that the vehicle conformed to parts 541, 565, 571 and 581, chapter V, title 49 of the Code of Federal Regulations of the United States.

Schedule II

The CVMA indicated the language used in Schedule II surrounding the expiry of the authorization number limits flexibility by setting a specific expiry date. The Department agrees that setting a specific expiry date is not reasonable and thus it has revised Schedule II to remove the specific expiry date requirement.

Importation of used vehicles from the United States and Mexico

The CVMA indicated that paragraph 12.1(2)(b), which required that all information displayed in or on the vehicle be in both English and French and required identification of units of measurement, be removed from the regulatory proposal. Their justification indicated that, as worded, requiring all information displayed in or on the vehicle to be bilingual would preclude the importation of vehicles from Mexico and the United States, which is contrary to the overall intent of the amendment. The Department agrees that requiring vehicles compliant to the Federal Motor Vehicle Safety Standards of the United States to have bilingually displayed information in the event that a vehicle may be imported into Canada may not be reasonable. Therefore the proposed requirement has been removed. However, the Department does consider that vehicles sold at the retail level in the United States and used vehicles from Mexico should have speedometers, indicating the speed of the vehicle in kilometres per hour or in kilometres per hour and miles per hour, and odometers, indicating distance in kilometres or in miles and that distances indicated in miles have the unit of measurement identified, that meet the requirements of subsections 101(4) and (6) of the Canadian Motor Vehicle Safety Standard and has replaced paragraph 12.1(2)(b), as proposed with this requirement.

Coming into force

The Department received multiple comments regarding the coming into force date for the regulatory amendments. Some requested clarification while others requested lead time to comply with the amended Regulations. COHV requested a transitional time period for the coming into force of the regulations for the purpose of production planning and manufacturing. They indicated that some of their member companies already have 2021 model year vehicles production planned and indicated that a coming-into-force date aligned with the 2022 model year products would be more appropriate for their members. The proposed coming into force read that the “Regulations come into force on the day on which section 213, subsections 217(1), (3), (4) and (6) and section 230 of the Economic Action Plan 2014 Act, No. 1, chapter 20 of the Statutes of Canada, 2014, come into force, but if they are registered after that day, they would come into force on the day on which they are registered.” The Economic Action Plan 2014 Act, No. 1, chapter 20 of the Statutes of Canada, 2014, or Bill C-31, is the act amending the Motor Vehicle Safety Act. A separate order in Council will bring into force the amendments to the Act that are required to allow for the amendments to the Regulations.

The Department agrees that some lead time is necessary for manufacturers of certain vehicles which do not currently fall within the scope of the Vehicle Regulations. Therefore, the Department has included a 12-month delay for the coming into force of amendments related to the expansion and renaming of the prescribed class “restricted-use motorcycle” to “restricted-use vehicle,” including repealing the power-assisted bicycle definition as well as the paragraph 6(3)(c) amendments for the label placement on restricted-use vehicles. This will allow a delay for assuring compliance of vehicles that will fall under this revised prescribed class.

Other changes

The CVMA also indicated in their comments an error had been made in the proposed subsection 12.1(2) where the acronym “LNG” was erroneously used in the place of “LPG” when referring to requirements under Canadian Motor Vehicle Safety Standard 301.1 Liquefied Petroleum Gas (LPG). The Department has corrected this error.

Modern treaty obligations and Indigenous engagement and consultation

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, analysis was undertaken to determine whether the proposed Regulations are likely to give rise to modern treaty obligations. This assessment examined the geographic scope and subject matter of the proposal in relation to modern treaties in effect and after examination, no implications or impacts on modern treaties are identified.

Instrument choice

The Act was amended in 2014 in line with the objectives of NAFTA. Modifications to the Vehicle Regulations needed to be made to implement this objective while maintaining minimum safety standards for vehicles imported permanently from the United States and Mexico. In addition, other changes to the Act and the need for clarifications require that minor amendments be made to the Vehicle Regulations, the Tire Regulations and the Restraint Systems and Booster Seats Regulations. Furthermore, the Act specifies that the importation requirements will be set out in the Regulations.

Regulatory analysis

Benefits and costs

Benefits

The expansion of the restricted-use vehicles prescribed class will result in a greater number of vehicles falling under the regulations. This expansion will allow the newly included vehicles to fall under the defect and recall regime of the Act. This amendment will also limit the type of vehicles that fall under this prescribed class, with the purpose of excluding slow-moving, off-road-use vehicles. This would reduce the regulatory burden for these slow-moving, off-road-use vehicles and improve harmonization between Canada and the United States.

The amendments to section 7 of the Act will allow for used vehicles to be imported from Mexico, and vehicles from the U.S. and Mexico to be imported and dismantled for their components. As a result, Canadians will have access to more used vehicles and vehicle components. This could help reduce the price for used vehicles and vehicle components.

The amendments will also add new allowances for temporary importation, including for when a Canadian driving their vehicle that is licensed in the United States temporarily returns to Canada.  Furthermore, it will include a new allowance for vehicles that were temporarily imported to be donated (upon the Minister’s approval) to museums or educational institutions.

Costs

The expansion of the restricted-use vehicle prescribed class will result in a greater number of vehicles covered by the Vehicle Regulations. For these vehicles, manufacturers will have to add the class identification of restricted-use vehicle (RUM) to the compliance label, under the vehicle type section of the label. The requirement to have a compliance label on a vehicle is stated in section 6 of the Vehicle Regulations, which requires, among other information, that vehicles display the appropriate abbreviation for the vehicle type.

This incremental requirement will, therefore, consist of adding the “RUM” identification to the compliance label for newly manufactured restricted-use vehicles. Transport Canada estimates that the amendments will result in negligible costs to the manufacturers, because they would only be required to include limited additional information to an existing label.  Moreover, the coming into force year of 2021 addresses industry’s concerns in regards to already planned production of earlier model year vehicles.

Small business lens

The small business lens does not apply, as there are no associated impacts on small businesses.

One-for-one rule

The one-for-one rule does not apply to this regulatory initiative, as there is no incremental change in administrative burden on business.

Regulatory cooperation and alignment

The amendments are not related to a specific work plan or commitment under a formal regulatory cooperation forum. However, the amendments under Bill C-31 supported the objectives of the Regulatory Cooperation Council (RCC) to better and more rapidly align Canadian and U.S. regulations and boost North American trade and competitiveness. The amendments fall into four categories: rulemaking, importation, safety (compliance and enforcement) and information gathering. A number of provisions were brought into force upon royal assent, while others were subsequently brought into force by order of Governor in Council, such as the Act amendments related to these regulatory amendments.

Bill C-31 created a need to amend the Vehicle Regulations to allow the importation of prescribed vehicles from Mexico that do not comply with the requirements referred to in sections 5 and 6 of the Act. With regards to the importation of vehicles sold at the retail level in the United States, there is a need to amend the Vehicle Regulations so that they reflect the changes to the Act.

In addition, the Canada Gazette, Part I, published the proposed paragraph 4(2)(b), which set an attainable speed of 32 km/h for a vehicle to fall under the Vehicle Regulations. The intent of this requirement was to better align the types of vehicles regulated by Transport Canada and the NHTSA. Transport Canada has jurisdiction over all vehicles as defined in the Act, whereas the NHTSA only regulates highway vehicles. Based on stakeholder response to this proposal, the intent of the requirement was clarified by the Department by applying the 32 km/h top speed to vehicles that meet the expanded definition of the prescribed class “restricted-use vehicle.” This effectively excludes vehicles not designed for use on public roads from the Vehicle Regulations, regardless of their power source and their power rating, provided that they have a maximum attainable top speed below 32 km/h.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

No gender-based analysis plus (GBA+) impacts have been identified for this proposal.

Rationale

The amendments will reduce trade barriers by amending the requirements related to temporary importation, vehicles imported from Mexico, and vehicles imported from the United States and Mexico for parts. These amendments are a result of the NAFTA objectives to eliminate trade barriers and facilitate the cross border movement of goods and services between Canada, the United States and Mexico, and delivers on specific commitments to remove barriers to the importation of used motor vehicles from Mexico. Prescribed vehicles from Mexico will need to meet the same requirements that apply to the importation of vehicles sold at the retail level in the United States, as set out in the Vehicle Regulations, to be imported into Canada.

The amendments also clarify the requirements for vehicles and equipment imported temporarily for a prescribed purpose, and harmonize parts of the Regulations with the amended Act, such as sections 11 and 12 of the Vehicle Regulations and the provisions related to the national safety mark for tires.

A new prescribed purpose for temporary importation is for visits to Canada in the case of a vehicle that is licensed in the United States and owned by a person with a residential address in Canada. This will be particularly helpful for Canadians that want to enter Canada temporarily with their U.S.-registered vehicle. Additionally, this amendment will address the need for more flexibility concerning the importation of automated and connected technologies. Stakeholders importing foreign automated and connected technologies and vehicles for the purposes of exhibition, demonstration, evaluation or testing were previously required to export or destroy imports after a period of one year. This requirement was cost prohibitive and did not always allow sufficient time to evaluate the technology. The amendment will facilitate and reduce costs for industry on the importation and testing of non-compliant motor vehicles. With these proposed measures, industry can test and evaluate imported technologies for more than one year, the results of which could inform rulemaking.

Allowing used vehicle imports from Mexico may make a greater number of used motor vehicles available to Canadians. The amended Vehicle Regulations require that these vehicles satisfy specific Canadian safety requirements. Overall, Transport Canada does not anticipate that the amendment will have a significant impact on the market for motor vehicles in Canada.

In order to eliminate any uncertainty regarding the expression “time [of] the main assembly” (used in the Act) and the expression “date of manufacture” (used in the Vehicle Regulations), the latter is defined in the Vehicle Regulations.

The definition for the prescribed class of “restricted-use motorcycle” has also been amended and renamed to “restricted-use vehicle” to ensure that these types of vehicles will fall under the defect and recall regime while also improving alignment between Canada and the United States by applying a minimum speed for consideration as a prescribed class to restricted-use vehicles to exclude slow-moving vehicles not designed for use on public roads, such as power-assisted bicycles, scooters and electric or low-speed all-terrain vehicles from the Vehicle Regulations. This clarifies Transport Canada’s policy intent that these slow-moving vehicles are excluded from the Vehicle Regulations, as these vehicles travel at low speeds and are used off-road.

Finally, Transport Canada is providing tire manufacturers greater flexibility in respect of the TIN format, by keeping existing Canadian TIN configurations as well as allowing those introduced by the United States in its 2015 Final Rule regarding the TIN.

Implementation, compliance and enforcement, and service standards

In the Canada Gazette, Part I, the Department proposed that the amendments to the Regulations come into force on the day on which section 213, subsections 217(1), (3), (4) and (6), and section 230 of the Economic Action Plan 2014 Act, No. 1, chapter 20 of the Statutes of Canada, 2014 come into force. These regulatory amendments will come into force when the amendments to the Act come into force, with a 12-month delay for the coming into force of certain subsection 2(1) and paragraph 6(3)(c) amendments related to the expansion, labelling and renaming of the prescribed class “restricted-use motorcycle” to “restricted-use vehicle” including repealing the power-assisted bicycle definition.

International trade agreements such as the World Trade Organization (WTO), and the NAFTA include transparency provisions that require signatories to establish a central contact point designated to provide early and appropriate notifications on certain federal and sub-federal government measures (laws, regulations, binding policies and guidelines, etc.). A notification will be issued through the Notification Authority and Enquiry Point to inform NAFTA signatories of this amendment.

Companies are responsible for ensuring compliance with the requirements of the Act and the Regulations. The Department will 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 Act or its regulations is guilty of an offence and liable to the applicable penalty set out in the Act.

Contact

Jessey Almeida
Regulatory Development Engineer
Multimodal and Road Safety Programs
Transport Canada
330 Sparks Street, 11th Floor
Ottawa, Ontario
K1A 0N5
Email: jessey.almeida@tc.gc.ca