Report of Market Access Ombudsman Council (May 13, 1994)

3-(1) Internationalization of regulations for Automobiles and Auto Parts and Acceptance of Foreign Test Data

1. Complainant: European Business Council

2. Ministry concerned: Ministry of Transport

3. Complaint:

(1) Before each vehicle obtains initial registration, it must undergo initial inspection by the government to be certified as conforming to the Safety Regulations for Road Vehicles (the Safety Regulations). In order to make this inspection process more efficient, type approval systems such as the type designation system (TDS) and the type notification system (TNS), have been adopted.

Under TDS, examination of the method of completion inspection and the quality control system at the manufacturer is carried out, in addition to examination of an actual sample vehicle. As a result, the manufacturer can perform completion inspection instead of initial inspection carried out by the government for the vehicle designated under this system by verifying that each vehicle conforms with the Safety Regulations and is of the same model as the designated type.

When TNS is used, since an actual sample vehicle has been examined, initial inspection can be simplified when each vehicle is registered.

The complainant states that foreign manufacturers must bear substantial burden such as cost to carry out completion inspections which conform with Japanese inspection items and inspection methods. It also says when sample vehicles have been examined under TDS or TNS by the Ministry of Transport, each vehicle's uniformity and conformity with the Safety Regulations is ensured by the manufacturer's quality control procedures. Therefore, it claims that the law should be changed to eliminate initial inspections and completion inspections (including spot checks).

(2) Durability tests are designed to ensure that the performance of exhaust emission control devices conforms to the Safety Regulations sufficiently after long-term use. In Japan, testing is carried out after 30,000 km-driving (catalyst endurance test is performed after 80,000 km-driving). In the U.S. testing is currently done after 80,000 km-driving and after 1996, will be carried out after 160,000 km-driving.

In Japan, endurance test for each automobile model of different engine type (classified according to engine displacement) is required, but in the U.S., even if engine displacement differs, as long as certain conditions are met, the engine family concept is use and test results for one model may be applied to other models as well.

New U.S. regulations provide that endurance test method devised by the manufacturers which the Environmental Protection Agency (EPA) has approved to place the same burden as a 160,000 km running test on exhaust emission control devices can substitute for the endurance test of 160,000 km running.

In Japan at present, endurance tests for imported automobiles do not necessarily have to be carried out, when the performance of the exhaust emission control devices after long-distance use can be estimated based on the deterioration index (index showing the degree of deterioration in the performance of exhaust emission control devices due to long-distance use) obtained from results of endurance testing in the U.S.

The complainant states, with regard to accepting the deterioration index obtained from U.S. endurance test results, that the engine family concept used in the U.S. should be adopted so that the deterioration index for vehicles of large engine displacement within a certain range is applied to vehicles of smaller engine displacement as well, and that deterioration index figures obtained from testing methods which are thought in the U.S. to be equivalent to the 160,000 km running test is accepted.

(3) In Japan, to prevent catalyst deterioration and damage to the vehicle or vehicle parts due to overheating of the exhaust emission control devices (catalytic converter), a heat-damage warning device which operates when the catalyst reaches a certain temperature must be installed.

The complainant states that no such warning device is required to be installed in the U.S. or Europe, and that this requirement places cost and other burdens on U.S. and European manufacturers when exporting vehicles to Japan. From improvements of quality, reliability and durability in engines and catalytic technology, and the development of device which monitors combustion in the engine and cut off fuel supply in case of imperfect combustion, and which warns of engine trouble, it is unnecessary to install a heat-damage-warning device. Therefore, it claims that requirement of this device should be abolished.

4. Results of deliberation:

(1) With today's highly developed automobile manufacturing technology, vehicles produced by manufacturers with appropriate quality control systems can be assumed to fully conform to type uniformity and conform to the Safety Regulations. For this reason, in many countries in Europe government authorities conduct examinations of quality control systems of the manufacturer when granting type designation and let the manufacturer have a responsibility meet type uniformity requirements and conform with the Safety Regulations.

The ministry concerned accepts as completion inspection not only an inspection whose method is specified by the Japanese government but also an appropriate inspection which is composed in the part of manufacturers' quality control system, and has been trying to promote this more flexible practice in recent years. In addition, in order to lighten the burden in the application procedure on the applicant, only a simple document examination has been carried out to determine whether inspection methods are appropriate. Furthermore, in light of this complaint, circular notices will be issued to further clarify this policy and ensure that all parties concerned are fully informed.

This policy is a positive step which will help reduce the cost involved in type designation system and encourage the switch from TNS to TDS, which does not require government inspection of every single vehicle. As a result, it helps reduce the inspection burden on imported car dealers.

Accordingly, we believe that this policy will remedy this particular complaint, and progress in implementing this policy will be monitored in the Market Access Ombudsman Council.

(2) Since the time and cost required for endurance testing place a heavy burden on foreign manufacturers and imported car dealers producing or handling the small number of vehicles of specific types, it seems appropriate to comprehensively accept deterioration indices based on foreign test results as much as technically possible.

Regarding the engine family concept, the ministry concerned has begun compiling data on the correlation between engine displacement and the durability of exhaust emission control devices with a view to adopting the same method as the U.S., and a conclusion is expected to be reached within this year.

Concerning acceptance of deterioration indices obtained by testing methods developed by manufacturers to replace the U.S. endurance tests, each index will be studied after it is explained.

This is a positive step which should be promoted soon to reduce the inspection burden as much as possible.

(3) As concerns with the heat-damage-warning device which is installed to prevent pollution and ensure safety, other means should basically be allowed as long as they conform to the original purpose of this device. Therefore, bearing in mind actual occurrence of overheating, related regulations in foreign countries, and alternative means available, a conclusion leading relaxing or eliminating this requirement, which is satisfactory to the complainant, should be reached.

The ministry concerned will study the equivalence of new devices with the heat-damage warning device and it is expected that a conclusion will be reached this year. The new devices include the device which warns imperfect combustion in the engine and another device shown by the complainant such as the device which cuts off fuel supply in case of imperfect combustion. These devices are to be accepted if they have equivalent functions to the heat-damage warning device.

These are positive actions and study should be undertaken soon in line with this policy.

Government decision (June 24, 1994)

3-(1) Changing the standards and certification system relating to automobiles

The following changes will be made to promote imports.

(1) Completion inspection are allowed to be carried out using appropriate testing methods incorporated into manufacturers' quality control systems, and efforts have been made to apply this system more flexibly. A simple document examination is used to determine whether testing methods are appropriate. A directive to further clarify and propagate this information will be issued by July 1994 to smooth the acquisition of type designation.

(2) Regarding the acceptance of deterioration indices based on foreign data in durability tests for exhaust gas anti- dispersal apparatus, we have begun collecting data on accepting the engine family concept used in the U.S. A conclusion will be reached during this year and will be implemented soon. Concerning acceptance of deterioration indices obtained by testing methods developed by individua1 manufacturers to replace the U.S durability tests, this matter will be studied after each method is explained.

(3) Regarding the requirement for heat warning equipment, other means should basically be allowed as long as they ensure safety. Whether new apparatus capable of detecting and warning of an accidental fire in the engine or capable of detecting an accidental fire in the engine and cutting off fuel supply are equivalent to the heat warning equipment will be studied in order to reach a conclusion during this year, and will be accepted if such apparatuses have equivalent function.

Follow-up (June 5, 1995)

3-(1) Internationalization of Regulations for Automobiles and Auto Parts and Acceptance of Foreign Test Data

(1) The ministry concerned accepts appropriate inspection methods integrated into manufacturers' quality control system as completion inspections and has been promoting this more flexible practice. Further, only a simple document inspection is required to determine whether inspection methods are appropriate. To further clarify this policy and ensure that all parties concerned are fully informed, a directive titled "Application of completion inspection for vehicles which have received type designation" was issued in July 1994.

(2) Concerning acceptance of deterioration indices based on foreign test results for endurance testing of exhaust emission control devices, measures to accept the equivalence of deterioration indices measured in tests of engines with a certain variance in engine displacement (including engines treated as engine families in the U.S.) have already been implemented, according to a directive entitled "Partial revision to 'Requirements for long-distance running tests'" of December 1994 (effective from January 1995). Where acceptance of deterioration indices obtained by testing methods developed by manufacturers to replace the U.S. endurance tests is concerned, each index will be studied after it is explained.

(3) Regarding automobiles equipped with devices to warn of imperfect combustion in the engine or to cut off fuel supply in case of imperfect combustion, since it has been confirmed that these devices are equivalent to the heat-damage warning device, it was decided in December 1994 not to require such automobiles to be equipped with a heat-damage warning device, and that the same measure will apply to automobiles equipped with devices determined to be equivalent to these devices.

The relevant ordinances are currently being revised and will be distributed and implemented by July 1995.