Motor Vehicle Safety Regulations

13 (1) Any company applying for an exemption pursuant to section 9 of the Act shall submit in writing to the Minister

• (a) its name and address;

• (b) the province or country under the laws of which it is established;

• (c) the number, title and text or substance of the standards from which exemption is sought and the duration of that exemption;

• (d) the reason for requesting an exemption;

• (e) if applicable, the reasons for withholding from public disclosure any specific part of the information and data found in the application; and

• (f) the reasons why the granting of the exemption would be in the public interest and consistent with the objectives of the Act.

(2) Where the basis of an application for an exemption is substantial financial hardship, the applicant shall include in the submission to the Minister

• (a) technical and financial information demonstrating in detail why conformity to the standards referred to in paragraph (1)(c) would create substantial financial hardship, including

  • (i) a list of each of the items that would have to be altered in order to achieve conformity,

  • (ii) the itemized estimated cost of making the alterations referred to in subparagraph (i)

    • (A) at the end of one year from the date the application is submitted, if the application is for an exemption for one year or more but less than two years,

    • (B) at the end of two years from the date the application is submitted, if the application is for an exemption for two years or more but less than three years, or

    • (C) at the end of three years from the date the application is submitted, if the application is for an exemption for three years,

  • (iii) the estimated price increase per vehicle to counter the total costs incurred pursuant to subparagraph (ii) and a statement of the anticipated effect of each such price increase,

  • (iv) corporate balance sheets and income statements for the three fiscal years immediately preceding the filing of the application,

  • (v) a projected balance sheet and income statement for the fiscal year following a denial of the application, and

  • (vi) a discussion of any other hardship to be considered; and

• (b) a description of the applicant’s efforts to conform to the standards from which exemption is sought, including

  • (i) a discussion of other means of conformity that were considered and the reasons for rejecting each of them,

  • (ii) a description of the steps to be taken while the exemption is in effect and the estimated date by which conformity will be achieved through design changes or the termination of the production of non-conforming vehicles,

  • (iii) the world production of vehicles manufactured by the company or by the manufacturer of the model that is the subject of the application in the 12 month period beginning two years before the beginning of the period in respect of which the exemption is applied for, and

  • (iv) the total number of vehicles manufactured for, or imported into, the Canadian market in the 12 month period beginning two years before the beginning of the period in respect of which the exemption is applied for.

(3) Where the basis of an application for exemption is the development of new safety or emission control features that are equivalent to or superior to those that conform to the prescribed standards, the applicant shall include in the submission to the Minister

• (a) a description of the new features;

• (b) a copy of the research, development and testing documentation establishing the innovative nature of the new features;

• (c) an analysis of how the level of performance of the new features is equivalent to or superior to the level of performance established by the prescribed standards, including

  • (i) a detailed description of how a vehicle equipped with the new features would, if exempted, differ from one that conforms to the prescribed standards, and

  • (ii) the results of tests conducted on the new features that demonstrate a level of performance that is equivalent to or superior to that required by the prescribed standards;

• (d) evidence that an exemption would facilitate the development or the field evaluation of the vehicle; and

• (e) a statement as to whether the manufacturer intends, at the end of the exemption period,

  • (i) to conform to the prescribed standards,

  • (ii) to apply for a further exemption, or

  • (iii) to request that the prescribed standards be amended to incorporate the new features.

(4) Where the basis of an application for exemption is the development of new kinds of vehicles, vehicle systems or components, the applicant shall include in the submission to the Minister

• (a) a copy of the research, development and testing documentation establishing that an exemption would not substantially diminish the safe performance of the vehicle, including

  • (i) a detailed description of how the vehicle equipped with the new kinds of vehicle systems or components would, if exempted, differ from one that conforms to the prescribed standards,

  • (ii) the reasons why not conforming to the prescribed standards does not substantially diminish the safe performance of the vehicle, and

  • (iii) a discussion of other means of conformity that were considered and the reasons for rejecting each of them;

• (b) the reasons why an exemption would facilitate the development or the field evaluation of the vehicle; and

• (c) a statement as to whether the company intends, at the end of the exemption period, the vehicle to conform to the prescribed standards.

(5) Where the Governor in Council has made an exemption order pursuant to section 9 of the Act for a model of vehicle, a label shall be securely applied by the company to the windshield or side window of every vehicle of that model, specifying

• (a) the features of the vehicle and the standards, by number and title, in respect of which the exemption has been granted; and

• (b) the short title of the exemption order.