Procedures for Implementation of the Fastener Quality Act

DEPARTMENT OF COMMERCE

National Institute of Standards and Technology

15 CFR Part 280

[Docket No. 980623159-9316-03]

RIN 0693-AB47

Procedures for Implementation of the Fastener Quality Act

AGENCY: National Institute of Standards and Technology and the Bureau

of Export Administration and the Patent and Trademark Office, United

States Department of Commerce.

ACTION: Notice of proposed rulemaking; request for comments.

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SUMMARY: The Director of the National Institute of Standards and

Technology (NIST), United States Department of Commerce, and the Under

Secretary of the Bureau of Export Administration, United States

Department of Commerce, and the Assistant Secretary of Commerce and

Commissioner of Patents and Trademarks, United States Department of

Commerce, request comments on proposed changes to the regulations

pertaining to the implementation of the Fastener Quality Act (``the

FQA'') to incorporate amendments to the FQA contained in the Fastener

Quality Act Amendments of 1999 (``the Act''). The proposed changes

include the elimination of testing and paperwork requirements and of

NIST's role in evaluating and approving bodies that accredit

laboratories and registrars. The proposed changes also set forth

procedures under which NIST will accept petitions for approval of

certain documents and self-declarations for accreditation bodies.

The proposed changes amend the enforcement provisions of the

regulations to eliminate violations that are not violations of the FQA,

as amended and adding violations imposed by the Act. In addition, the

proposed changes amend the recordal of insignia provisions of the

regulations to remove all references to private label distributors and

to provide that fasteners whose insignia must be recorded are those

fasteners that are required by the applicable consensus standards to

bear ``an insignia'' rather than a ``raised or depressed insignia,''

and that these fasteners are not subject to the recordal requirements

if the specifications provide otherwise.

DATES: Comments must be received no later than January 14, 2000.

ADDRESSES: Comments on the proposed revisions must be submitted to: Dr.

Subhas Malghan, Director's Office, Technology Services, National

Institute of Standards and Technology, Mail Stop 2000, Gaithersburg, MD

20899-2000, telephone number (301) 975-4510.

FOR FURTHER INFORMATION CONTACT: Dr. Subhas Malghan, Director's Office,

Technology Services, National Institute of Standards and Technology,

Mail Stop 2000, Gaithersburg, MD 20899-2000, telephone number (301)

975-4510.

SUPPLEMENTARY INFORMATION:

Background

The Fastener Quality Act (FQA) was originally enacted in 1990 to

protect the public safety by: (1) Requiring that certain fasteners

which are sold in commerce conform to the specifications to which they

are represented to be manufactured, (2) Providing for accreditation of

laboratories engaged in fastener testing; and (3) Requiring inspection,

testing and certification, in accordance with standardized methods, of

fasteners covered by the Act. Since its enactment, the FQA has been

amended three times (Pub. L. 104-113, Pub. L. 105-234, and Pub. L. 106-

34). The Department of Commerce published final implementing

regulations for the original FQA on September 26, 1996 and for the FQA

as amended by Pub. L. 104-113 on September 8, 1998.

On June 8, 1999, the Fastener Quality Act Amendments of 1999 (the

Act) (Pub. L. 106-34, 113 Stat. 118) were enacted ``to amend the

Fastener Quality Act to strengthen the protection against the sale of

mismarked, misrepresented, and counterfeit fasteners and eliminate

unnecessary requirements, and for other purposes.'' The Act made

significant changes to the FQA. Under the Act, the Secretary retains

his enforcement functions and the responsibility for establishing and

maintaining an insignia recordation program, and the National Institute

of Standards and Technology (NIST) must continue its fastener

laboratory accreditation program established under the National

Voluntary Laboratory Accreditation Program (15 CFR part 285). In

addition, the Act creates new responsibilities for NIST, including:

Acting upon petitions requesting approval of documents setting forth

guidance/requirements for certification of manufacturing systems as

fastener quality assurance systems by accredited third parties; acting

upon petitions requesting approval of documents setting forth guidance/

requirements for accreditation of laboratories; and acting upon

petitions requesting approval of documents setting forth guidance/

requirements for approval of accreditation bodies to accredit

laboratories. NIST also must accept affirmations, in the form of self-

declarations that the accreditation bodies meet the requirements of the

applicable Guide, from accreditation bodies accrediting third parties

who certify manufacturing systems as fastener quality assurance systems

and from accreditation bodies accrediting laboratories.

The Act eliminates many of the responsibilities delegated by the

Secretary of Commerce to NIST under the FQA, including: Establishing

procedures for private entities (domestic and foreign) to accredit

laboratories; establishing conditions for recognizing foreign

laboratories accredited by their governments or organizations;

establishing the size, selection, and integrity of samples of fasteners

to be inspected if not provided in the standards and specifications to

which the fasteners are manufactured; establishing a required form for

written inspection and testing reports; establishing what entities must

retain custody of laboratory testing reports and certificates of

conformance and for what period of time.

Part 1: Summary of Proposed Amendments Regarding Testing and

Certification of Fasteners, Laboratory Accreditation, and Sale of

Fasteners

The Fastener Quality Act Amendments of 1999 (``the Act'') repealed

15 U.S.C. 5404 through 5406. Therefore, the Department proposes the

repeal of the regulations implementing those sections, found at 15 CFR

part 280

[[Page 69970]]

Sec. 280.3 through 280.16, subparts B through F and subparts I through

L.

Section 10(a) through 10(d) of the Act, 15 U.S.C. 5411a(a)-(d),

establish an option for persons publishing documents related to

certification and accreditation under the Act. Such persons may

petition the Director for approval of such a document based upon a

finding by the Director that the document provides equal or greater

rigor and reliability as compared to the applicable ISO/IEC Guide. The

Department proposes to amend the regulations by adding a new

Sec. 280.101 to establish procedures for submitting such petitions.

Section 10(e) of the Act, 15 U.S.C. 5411a(e), requires

accreditation bodies accrediting third parties who certify

manufacturing systems as fastener quality assurance systems and

accreditation bodies accrediting laboratories to affirm to the Director

that they meet the requirements of the applicable ISO/IEC Guide or

another document approved by the Director pursuant to the petition

procedure described above. The Department proposes to amend the

regulations by adding a new Sec. 280.102 to establish procedures for

submitting such affirmations.

The Department proposes amending the regulations to add a new

Sec. 280.103 to address Section 10(d) of the Act, 15 U.S.C. 5411a(d),

which establishes that for purposes of the Act, laboratories may be

accredited either under a voluntary laboratory accreditation program

established by private sector person or under the National Voluntary

Laboratory Accreditation Program.

Part 2: Summary of Proposed Amendments to Redesignated Subpart C:

Enforcement

The Secretary of Commerce, acting through the Under Secretary for

Export Administration, proposes to revise subpart G, Enforcement, of

the existing regulations by redesignating it as subpart C and making

certain additions and deletions in order to comply with the amendments

to the Act. Section 280.602(b) through (o) of the existing regulations

are proposed to be deleted. In addition, knowing representation or

falsification in connection with the sale of fasteners (prohibited by

section 4 of the Act) and sale of fasteners without manufacturers'

insignia (prohibited by section 5 of the Act) are proposed to be added

as violations.

Part 3: Summary of Proposed Amendments to Redesignated Subpart D:

Recordal of Insignia

The Department proposes to revise newly redesignated Sec. 280.300

to remove all references to private label distributors of fasteners.

The requirements of section 5 of the Act as amended (15 U.S.C. 5407)

pertain only to manufacturers of fasteners, not to private label

distributors of fasteners.

The Department proposes to further revise newly redesignated

Sec. 280.300 to provide that fasteners whose insignia must be recorded

are those fasteners that are required by the applicable consensus

standards to bear ``an insignia'' rather than a ``raised or depressed

insignia,'' and that these fasteners are not subject to the recordal

requirements if the specifications provide otherwise. Section 5 of the

Act as amended (15 U.S.C. 5407) provides that fasteners subject to the

recordal requirement are fasteners that are required by the applicable

consensus standards to bear ``an insignia,'' not a ``raised or

depressed insignia.'' Section 5 exempts fasteners from the recordal

requirements where the specifications provide that insignias are not

required.

The Department proposes to further revise newly redesignated

Sec. 280.300 to provide that fasteners whose insignia must be recorded

are those fasteners that are required to bear an insignia by ``the

applicable consensus standards,'' rather than by ``the standards and

specifications by which it is manufactured.'' Section 5 of the Act as

amended (15 U.S.C. 5407) provides that a recordal requirement applies

where the applicable consensus standards require the placement of an

insignia.

The Department proposes to further revise newly redesignated

Sec. 280.300 to remove references to purposes of the Act that were

stated in the previous version of the Act but that are no longer stated

in the Act.

The Department proposes to amend newly redesignated Sec. 280.310 by

revising Sec. 280.310(a) to remove the reference to private label

distributors. The requirements of section 5 of the Act as amended (15

U.S.C. 5407) pertain only to manufacturers of fasteners, not to private

label distributors of fasteners.

The Department proposes to further amend newly redesignated

Sec. 280.310 by revising Sec. 280.310(b) to replace references to

``applicants'' with references to ``manufacturers'' or to ``applicants

for recordal.'' This clarifies that ``applicants'' are applicants for

recordal, and that these applicants are manufacturers of fasteners.

The Department proposes to further amend newly redesignated

Sec. 280.310 by revising Sec. 280.310(b)(4)(ii) to require ``a copy of

the drawing that was included in the application for trademark

registration'' rather than ``a copy of the drawing page of the

application.'' The U.S. Patent and Trademark Office has issued a

proposed rule (64 FR 25223 (1999)) (to be codified at 37 CFR 2.52) that

removes the requirement that a mark in an application for trademark

registration be depicted on a separate drawing page.

The Department proposes to further amend newly redesignated

Sec. 280.310 by adding a new Sec. 280.310(b)(6), stating that the

written application for recordal of an insignia must include a

statement that the applicant is a ``manufacturer'' as that term is

defined in section 3 of the Act as amended (15 U.S.C. 5402(11)). The

requirements of section 5 of the Act as amended (15 U.S.C. 5407)

pertain to manufacturers.

The Department proposes to further amend newly redesignated

Sec. 280.310 by revising Sec. 280.310(c) to state that a manufacturer

may designate ``only one trademark for recordal on the Fastener

Insignia Registry in a single application'' rather than ``only one

registered trademark for recordal on the Fastener Insignia Registry in

a single application.'' This clarifies that the requirement that an

application for recordal identify only one trademark pertains both to

registered trademarks and to trademarks that are the subject of pending

applications for registration.

The Department proposes to further amend newly redesignated

Sec. 280.310(c) to remove a reference to ``abandoned'' trademark

registrations. This clarifies that a trademark registration may expire

or be canceled but may not be abandoned.

The Department proposes to amend newly redesignated Sec. 280.311 to

replace ``the applicant'' with ``the applicant for recordal.'' This

clarifies who ``the applicant'' refers to.

The Department proposes to amend newly redesignated Sec. 280.312 by

revising Sec. 280.312(a) to replace the reference to the ``applicant''

with a reference to the ``manufacturer.'' The requirements of section 5

of the Act as amended (15 U.S.C. 5407) pertain only to manufacturers.

The Department proposes to amend newly redesignated Sec. 280.312 by

adding a new Sec. 280.312(b), stating that certificates issued prior to

the enactment of the Act as amended will remain in active status in

accordance with the provisions of newly redesignated Sec. 280.320, and

may be maintained in accordance with the

[[Page 69971]]

provisions of newly redesignated Sec. 280.320, but only if the

certificate is held by a manufacturer who is required to comply with

the recordation requirements of the Act as amended, and only if the

fasteners associated with the certificate are fasteners that must bear

an insignia pursuant to Sec. 5 of the Act as amended (15 U.S.C. 5407).

The Department proposes to amend newly redesignated Sec. 280.313 by

revising Sec. 280.313(a) to remove the reference to private label

distributors. The requirements of section 5 of the Act as amended (15

U.S.C. 5407) pertain only to manufacturers of fasteners, not to private

label distributors of fasteners.

The Department proposes to further amend newly redesignated

Sec. 280.313(a) to change ``upon recordal, either the alphanumeric

designation or the registered mark, or both, may be used as recorded

insignias'' to ``upon recordal, either the alphanumeric designation or

the trademark, or both, may be used as recorded insignias'' to clarify

that a manufacturer may use a trademark as an insignia even if that

trademark has not yet been registered, provided the manufacturer has

filed an application to register the insignia.

The Department proposes to further amend newly redesignated

Sec. 280.313 by revising Sec. 280.313(b) to remove the reference to

private label distributors. The requirements of section 5 of the Act as

amended (15 U.S.C. 5407) pertain only to manufacturers of fasteners,

not to private label distributors of fasteners.

The Department proposes to amend newly redesignated Sec. 280.320 by

revising Sec. 280.320(a) to change ``certificates of recordal remain in

an active status for five years and may be maintained in an active

status for five-year periods'' to ``certificates of recordal remain in

an active status for five years and may be maintained in an active

status for subsequent five-year periods.'' This clarifies that the

second and subsequent five-year periods commence upon the end of the

previous five-year period.

The Department proposes to further amend newly redesignated

Sec. 280.320 by revising Sec. 280.320(b) to remove the reference to

private label distributors. The requirements of section 5 of the Act as

amended (15 U.S.C. 5407) pertain only to manufacturers of fasteners,

not to private label distributors of fasteners.

The Department proposes to further amend newly redesignated

Sec. 280.320 by revising Sec. 280.320(c) to replace references to

``applicants'' with references to ``manufacturers'' or to ``applicants

for recordal.'' This clarifies that ``applicants'' are applicants for

recordal, and that all applicants are manufacturers of fasteners.

The Department proposes to further amend newly redesignated

Sec. 280.320(c) by adding a new Sec. 280.320(c)(6), stating that the

written application for maintenance of a certificate of recordal must

include a statement that the applicant is a ``manufacturer'' as that

term is defined in section 3 of the Act as amended (15 U.S.C.

5402(11)).

The Department proposes to amend newly redesignated Sec. 280.321 to

change ``the applicant or the holder of a certificate shall notify the

Commissioner of any change of address'' to ``the applicant for recordal

or the holder of a certificate must notify the Commissioner of any

change of address.'' This clarifies that ``applicant'' refers to an

applicant for recordal, and that notification regarding changes of

address is not discretionary.

The Department proposes to amend newly redesignated Sec. 280.323 by

adding a new Sec. 280.323(f), stating that an alphanumeric designation

that has been reactivated after it has been transferred or assigned

will remain in active status until the expiration of the five-year

period that began upon the issuance of the designation to its original

owner. This codifies existing practice.

The Department proposes to amend newly redesignated Sec. 280.324 by

revising Sec. 280.324(b) to replace ``certificates of recordal

designated inactive due to cancellation, expiration, abandonment or

amendment of the trademark application or registration cannot be

reactivated'' to ``certificates of recordal designated inactive due to

cancellation, expiration, or amendment of the trademark registration,

or abandonment or amendment of the trademark application, cannot be

reactivated.'' This clarifies that trademark registrations may be

canceled, or may expire or may be amended, and that applications for

trademark registration may be abandoned or amended.

The Department proposes to amend newly redesignated Sec. 280.325 to

remove the reference to private label distributors. The requirements of

section 5 of the Act as amended (15 U.S.C. 5407) pertain only to

manufacturers of fasteners, not to private label distributors of

fasteners.

Request for Public Comment

Persons interested in commenting on the proposed regulations should

submit their comments in writing to the above address. All comments

received in response to this notice will become part of the public

record and will be available for inspection and copying at the

Department of Commerce Central Reference and Records Inspection

facility, room 6228, Hoover Building, Washington, DC 20230.

Additional Information

Executive Order 12866

This rule has been determined not to be significant under section

3(f) of Executive Order 12866.

Executive Order 12612

This rule does not contain policies with Federalism implications

sufficient to warrant preparation of a Federalism assessment under

Executive Order 12612.

Regulatory Flexibility Act

A Regulatory Impact Review / Final Regulatory Flexibility Analysis

was prepared to accompany issuance of the September 26, 1996 final

rule. That analysis projected annual cost to industry from implementing

the FQA of $18.9 million. This amount was based on NIST's estimate that

25% of fasteners then produced would be covered under the Act. Assuming

that 55% of then produced fasteners would be covered under the Act, as

was assumed by Cost Effectiveness Committee of the Fastener Advisory

Committee, the estimated annual costs of the FQA would have been

approximately $38.7 million. Industry, generally, believed the cost of

implementation would be far greater than either of those two figures.

The great majority of costs associated with the FQA resulted from

recordkeeping, inspection, testing and certification requirements

imposed on fastener manufacturers that were beyond those required by

consensus standards.

By its amendments to the original FQA, Pub. L. 106-34 reduced

appreciably the costs associated with implementation of the FQA. First,

fasteners projected to be covered by the law account for approximately

5% of total fastener production. This percentage is significantly less

than NIST's original projection of 25%, and industry's much larger

projection, at the time of 1996 final rule. Second, the requirements

for recordkeeping, testing, certification, and inspection of fasteners

beyond those contained in the consensus standard to which covered

fasteners are manufactured have been eliminated. Thus, the costs

associated with those requirements, will not be incurred.

One change was made by Pub. L. 106-34 that may have a small

negative impact on small entities. Specifically, the law removed all

references to PTO's recordation of insignias of private label

[[Page 69972]]

distributors of fasteners, thus providing for recordation of only

manufacturers insignias. This amendment should have a negligible impact

as fasteners subject to the FQA sold by private label distributors

represent a very small percentage of the limited universe of fasteners

subject to the Act. Specifically, NIST projects that less than 15% of

the approximately 5% of all fasteners that are subject to the Act, are

sold by private label distributors. These changes had the effect of

limiting significantly those fasteners to which the law applies.

Paperwork Reduction Act

Notwithstanding any other provision of the law, no person is

required to, nor shall any person be subject to penalty for failure to

comply with, a collection of information, subject to the requirements

of the Paperwork Reduction Act, unless that collection of information

displays a currently valid OMB Control Number.

This proposed rule contains collection of information requirements

subject to the Paperwork Reduction Act and has been sent to OMB for

approval under the Act. Public reporting for these collections of

information are estimated to average 1.5 hours per response for

affirmations, 20 hours per response for petitions, and .17 hours per

response for the PTO recordal, renewal forms. The estimated response

time shown includes the time for reviewing instructions, gathering

information, and completing and reviewing the collections of

information.

Comments are invited on (a) Whether the collection of information

is necessary for the functions of the agencies, including whether the

information has practical utility; (b) The accuracy of the agencies'

estimates of the burdens of the collections of information; (c) Ways to

enhance the quality, utility and clarity of the information to be

collected; and (d) Ways to minimize the burdens of the collections of

information on respondents, including through the use of automated

collection techniques or other forms of information technology.

Send comments regarding these or any other aspect of the collection

of information to:

For affirmations and petitions: Deputy Director, Technology

Services, National Institute of Standards and Technology, 100 Bureau

Drive, Mail Stop 2000, Gaithersburg, Maryland 20899-2000, and to the

Office of Information and Regulatory Affairs, Office of Management and

Budget, Washington, DC 20503.

For PTO recordal/renewal forms: Ari Leifman, Staff Attorney, Office

of the Assistant Commissioner for Trademarks, 2900 Crystal Drive,

Arlington, VA 22202, and to the Office of Information and Regulatory

Affairs, Office of Management and Budget, Washington, DC 20503.

National Environmental Policy Act

This rule will not significantly affect the quality of the human

environment. Therefore, an environmental assessment or Environmental

Impact Statement is not required to be prepared under the National

Environmental Policy Act of 1969.

List of Subjects in 15 CFR Part 280

Business and industry, Fastener industry, Imports.

Dated: December 7, 1999.

Karen H. Brown,

Deputy Director, National Institute of Standards and Technology.

William Reinsch,

Under Secretary, Bureau of Export Administration.

Dated: December 7, 1999.

Q. Todd Dickinson,

Assistant Secretary of Commerce and Commissioner of Patents and

Trademarks.

For reasons set forth in the preamble, it is proposed that Title 15

of the Code of Federal Regulations be amended as follows:

PART 280--FASTENER QUALITY

1. The authority citation for part 280 is revised to read as

follows:

Authority: 15 U.S.C. 5401 et seq. (Pub. L. 101-592, as amended

by Pub. L. 104-113, Pub. L. 105-234, and Pub. L. 106-34.)

2. Section 280.1 is revised to read as follows:

Sec. 280.1 Description of rule/Delegation of authority.

(a) Description of rule. The Fastener Quality Act Amendments of

1999 (the Act) (15 U.S.C. 5401 et seq., as amended by Pub. L. 104-113,

Pub. L. 105-234, and Pub. L. 106-34):

(1) Protects against the sale of mismarked, misrepresented, and

counterfeit fasteners; and

(2) Eliminates unnecessary requirements.

(b) Delegations of authority. The Director, National Institute of

Standards and Technology has authority to promulgate regulations in

this part regarding certification and accreditation. The Secretary of

Commerce has delegated concurrent authority to amend the regulations

regarding enforcement of the Act, as contained in subpart C of this

part, to the Under Secretary for Export Administration. The Secretary

of Commerce has also delegated concurrent authority to amend the

regulations regarding recordal of insignia, as contained in subpart D

of this part, to the Assistant Secretary and Commissioner of Patents

and Trademarks.

Sec. 280.2 [Removed and Sec. 280.601 Redesignated as Sec. 280.2]

3. Section 280.2 is removed, and Sec. 280.601 is redesignated as

Sec. 280.2 and amended by revising the introductory text and adding the

following definitions in alphabetical order to read as follows:

Sec. 280.2 Definitions.

In addition to the definitions provided in 15 U.S.C. 5402, the

following definitions are applicable to this part:

Abandonment of the Application means that the application for

registration of a trademark on the Principal Register is no longer

pending at the United States Patent and Trademark Office.

* * * * *

Commissioner means the Commissioner of Patents and Trademarks.

* * * * *

Fastener Insignia Register means the register of recorded fastener

insignias maintained by the Commissioner.

* * * * *

Principal Register means the register of trademarks established

under 15 U.S.C. 1051.

* * * * *

Sec. 280.3-280.16; Subparts C-F and I-L [Removed]

4. Sections 280.3 through 280.16 and Subparts C through F and I

through L are removed, and Subpart B is revised to read as follows:

Subpart B--Petitions, Affirmations, and Laboratory Accreditation

Sec.

280.100 General.

280.101 Petitions for Approval of Documents.

280.102 Affirmations of Meeting Requirements of ISO/IEC Guides or

Approved Documents.

280.103 Laboratory Accreditation.

Subpart B--Petitions, Affirmations, and Laboratory Accreditation

Sec. 280.100 General.

(a) Definitions. For purposes of this subpart, the term

``revisions'' includes changes made to existing ISO/IEC Guides or other

documents, and

[[Page 69973]]

redesignations of those Guides or documents.

(b) Delegation of authority. The Director, National Institute of

Standards and Technology has delegated authority to the Deputy

Director, Technology Services, National Institute of Standards and

Technology, to carry out the responsibilities of the Director contained

in this subpart.

Sec. 280.101 Petitions for Approval of Documents.

(a) Certification. (1) A person publishing a document setting forth

guidance or requirements for the certification of manufacturing systems

as fastener quality assurance systems by an accredited third party may

petition the Director to approve such document for use as described in

section 3(7)(B)(iii)(I) of the Act (15 U.S.C. 5402(7)(B)(iii)(I)).

(2) Petitions should be submitted to: Deputy Director, Technology

Services, NIST, Mail Stop 2000, 100 Bureau Drive, Gaithersburg, MD

20899-2000.

(3) The Director shall approve such petition if the document

provides equal or greater rigor and reliability as compared to ISO/IEC

Guide 62, including revisions from time to time. A petition shall

contain sufficient information to allow the Director to make this

determination. Revisions include revisions, redesignations.

(b) Accreditation. (1) A person publishing a document setting forth

guidance or requirements for the approval of accreditation bodies to

accredit third parties described in paragraph (a) of this section may

petition the Director to approve such document for use as described in

section 3(7)(B)(iii)(I) of the Act (15 U.S.C. 5402(7)(B)(iii)(I)).

(2) Petitions should be submitted to: Deputy Director, Technology

Services, NIST, Mail Stop 2000, 100 Bureau Drive, Gaithersburg, MD

20899-2000.

(3) The Director shall approve such petition if the document

provides equal or greater rigor and reliability as compared to ISO/IEC

Guide 61, including revisions from time to time. A petition shall

contain sufficient information to allow the Director to make this

determination.

(c) Laboratory Accreditation. (1) A person publishing a document

setting forth guidance or requirements for the accreditation of

laboratories may petition the Director to approve such document for use

as described in section 3(1)(A) of the Act (15 U.S.C. 5402(1)(A)).

(2) Petitions should be submitted to: Deputy Director, Technology

Services, NIST, Mail Stop 2000, 100 Bureau Drive, Gaithersburg, MD

20899-2000.

(3) The Director shall approve such petition if the document

provides equal or greater rigor and reliability as compared to ISO/IEC

Guide 25, including revisions from time to time. A petition shall

contain sufficient information to allow the Director to make this

determination.

(d) Approval of Accreditation Bodies. (1) A person publishing a

document setting forth guidance or requirements for the approval of

accreditation bodies to accredit laboratories may petition the Director

to approve such document for use as described in section 3(1)(B) of the

Act (15 U.S.C. 5402(1)(B)).

(2) Petitions should be submitted to: Deputy Director, Technology

Services, NIST, Mail Stop 2000, 100 Bureau Drive, Gaithersburg, MD

20899-2000.

(3) The Director shall approve such petition if the document

provides equal or greater rigor and reliability as compared to ISO/IEC

Guide 58, including revisions from time to time. A petition shall

contain sufficient information to allow the Director to make this

determination.

Sec. 280.102 Affirmations of Meeting Requirements of ISO/IEC Guides or

Approved Documents.

(a) (1) An accreditation body accrediting third parties who certify

manufacturing systems as fastener quality assurance systems as

described in section 3(7)(B)(iii)(I) of the Act (15 U.S.C.

5402(7)(B)(iii)(I)) shall affirm to the Director that it meets the

requirements of ISO/IEC Guide 61 (or another document approved by the

Director under section 10(b) of the Act (15 U.S.C. 5411a(b)) and

Sec. 280.101(a) of this part), including revisions from time to time.

(2) An accreditation body accrediting laboratories as described in

section 3(1)(B) of the Act (15 U.S.C. 5402(1)(B)) shall affirm to the

Director that it meets the requirements of ISO/IEC Guide 58 (or another

document approved by the Director under section 10(d) of the Act (15

U.S.C. 5411a(d)) and Sec. 280.101(d) of this part), including revisions

from time to time.

(b) An affirmation required under paragraph (a)(1) or (a)(2) of

this section shall take the form of a self-declaration that the

accreditation body meets the requirements of the applicable Guide,

signed by an authorized representative of the accreditation body. No

supporting documentation is required.

(c) Affirmations should be submitted to: Deputy Director,

Technology Services, NIST, Mail Stop 2000, 100 Bureau Drive,

Gaithersburg, MD 20899-2000.

(d) Any affirmation submitted in accordance with this section shall

be considered to be a continuous affirmation that the accreditation

body meets the requirements of the applicable Guide, unless and until

the affirmation is withdrawn by the accreditation body.

Sec. 280.103 Laboratory Accreditation.

A laboratory may be accredited by any voluntary laboratory

accreditation program that may be established by private sector

persons(s) or by the National Voluntary Laboratory Accreditation

Program for fasteners, established by the Director under Part 285 of

this Title.

Secs. 280.600, 280.602-280.623 (Subpart G) [Redesignated as

Secs. 280.200-280.22 (Subpart C)]

5. Subpart G (Secs. 280.600, 280.602 through 280.623) is

redesignated as subpart C, consisting of Secs. 280.200 through 280.222.

6. Redesignated Sec. 280.200 is revised to read as follows:

Sec. 280.200 Scope.

Section 280.201 of this part specifies that failure to take any

action required by or taking any action prohibited by this part

constitutes a violation of this part. Section 280.202 describes the

penalties that may be imposed for violations of this part. Sections

280.204 through 280.222 establish the procedures for imposing

administrative penalties for violations of this part.

7. Redesignated Sec. 280.201 is amended by revising paragraphs (b)

and (c), and removing paragraphs (d) through (o) to read as follows:

Sec. 280.201 Violations.

* * * * *

(b) Sale of fasteners. No manufacturer or distributor shall

knowingly misrepresent or falsify, in connection with the sale or offer

for sale of fasteners from a single lot,

(1) The record of conformance for the lot of fasteners;

(2) The identification, characteristics, properties, mechanical or

performance marks, chemistry, or strength of the lot of fasteners; or

(3) The manufacturers' insignia.

(c) Manufacturers' insignia. No person shall sell, or offer for

sale fasteners that are required by the applicable consensus standard

or standards to bear an insignia identifying their manufacturer unless

(1) The fasteners bear such insignia; and

(2) The manufacturer has complied with the insignia recordation

[[Page 69974]]

requirements established under 15 U.S.C. 5407(b).

8. Redesignated Sec. 280.203 is revised to read as follows:

Sec. 280.203 Administrative enforcement proceedings.

Sections 280.204 through 280.222 set forth the procedures for

imposing administrative penalties for violations of the Act and this

part.

9. Redesignated Sec. 280.210 is amended by revising the last

sentence of paragraph (d) to read as follows:

Sec. 280.210 Discovery.

* * * * *

(d) * * * In addition, enforcement by a district court of the

United States may be sought under 15 U.S.C. section 5408(b)(6).

10. The reference to ``Sec. 280.607'' is revised to read

``Sec. 280.206'' in the following sections:

Redesignated Sec. 280.211(b); Redesignated Sec. 280.218(c).

Sec. 280.204 [Amended]

11. The reference to ``Sec. 280.608'' is revised to read

``Sec. 280.207'' in the following sections:

Redesignated Sec. 280.204(a); redesignated Sec. 280.208(b)(1).

12. The reference to ``Sec. 280.609'' is revised to read

``Sec. 280.208'' in the following sections:

Redesignated Sec. 280.204(a); redesignated Sec. 280.218(a).

13. In redesignated Sec. 280.214(b), the reference to

``Sec. 280.613'' is revised to read ``Sec. 280.212''.

14. In redesignated Sec. 280.207(c), the reference to

``Sec. 280.617'' is revised to read ``Sec. 280.216''.

15. In redesignated Sec. 280.207(a), the reference to

``Sec. 280.618'' is revised to read ``Sec. 280.217''.

16. In redesignated Sec. 280.219(c), the reference to

``Sec. 280.619(c)'' is revised to read ``Sec. 280.218(c)''.

17. The reference to ``Sec. 280.622'' is revised to read

``Sec. 280.221'' in the following sections:

Redesignated Sec. 280.221(b); redesignated Sec. 280.222(f).

18. The reference to ``Sec. 280.623'' is revised to read

``Sec. 280.222'' in the following sections:

Redesignated Sec. 280.208(a); redesignated Sec. 280.218(b);

redesignated Sec. 280.219(b)(2); redesignated Sec. 280.220;

redesignated Sec. 280.221(a).

19. Subpart H (Secs. 280.700 through 280.726) is redesignated as

Subpart D consisting of Secs. 280.300, 280.310-280.313 and 280.320-

280.326.

20. Redesignated Sec. 280.300 is revised to read as follows:

Sec. 280.300 Recorded insignia required prior to offer for sale.

If a fastener is required by the applicable consensus standard(s)

to bear an insignia identifying its manufacturer, the manufacturer

must:

(a) Record the insignia with the U.S. Patent and Trademark Office

prior to any sale or offer for sale of the fastener, unless the

specifications provide otherwise; and

(b) Apply the insignia through a raised or depressed impression to

the head of any fastener that is sold or offered for sale; or if the

fastener has no head, to another surface area in a legible manner. The

insignia must be readable with no greater than 10x magnification.

21. Redesignated Sec. 280.310 is amended by revising the heading,

the first sentence of paragraph (a), paragraphs (b)(1), (b)(2), (b)(3),

(b)(4)(ii), and (b)(5); redesignating existing paragraphs (b)(6)

through (b)(8) as paragraphs (b)(7) through (b)(9), respectively;

adding new paragraph (b)(6); revising redesignated paragraph (b)(7);

and revising paragraph (c) to read as follows:

Sec. 280.310 Application for insignia.

(a) Each manufacturer must submit a written application for

recordal of an insignia on the Fastener Insignia Register along with

the prescribed fee. * * *

(b) * * *

(1) The name of the manufacturer;

(2) The address of the manufacturer;

(3) The entity, domicile, and state of incorporation, if

applicable, of the manufacturer;

(4) * * *

(ii) A request for recordal of a trademark, which is the subject of

either a duly filed application or a registration for fasteners in the

name of the manufacturer in the U.S. Patent and Trademark Office on the

Principal Register, indicating the application serial number or

registration number and accompanied by a copy of the drawing that was

included with the application for trademark registration, or a copy of

the registration;

(5) A statement that the manufacturer will comply with the

applicable provisions of the Fastener Quality Act;

(6) A statement that the applicant for recordal is a

``manufacturer'' as that term is defined in 15 U.S.C. 5402

(7) A statement that the person signing the application on behalf

of the manufacturer has personal knowledge of the facts relevant to the

application and that the person possesses the authority to act on

behalf of the manufacturer;

* * * * *

(c) A manufacturer may designate only one trademark for recordal on

the Fastener Insignia Register in a single application. The trademark

application or registration that forms the basis for the fastener

recordal must be in active status, that is, a pending application or a

registration which is not expired, or canceled, at the time of the

application for recordal.

* * * * *

22. Redesignated Sec. 280.311 is amended by revising the third

sentence to read as follows:

Sec. 280.311 Review of the application.

* * * The Commissioner will notify the applicant for recordal of

any defect in the application. * * *

23. Redesignated Sec. 280.312 is amended by designating the

existing text as paragraph (a), revising the last sentence of

redesignated paragraph (a), and adding new paragraph (b) to read as

follows:

Sec. 280.312 Certificate of Recordal.

(a) * * * The certificate of recordal shall display the recorded

insignia of the manufacturer, and state the name, address, legal entity

and domicile of the manufacturer, as well as the date of issuance of

such certificate.

(b) Certificates that were issued prior to the enactment of the Act

as amended shall remain in active status in accordance with the

provisions of Sec. 280.320 of this subpart, and may be maintained in

accordance with the provisions of Sec. 280.320 of this subpart, but

only if:

(1) The certificate is held by a manufacturer who is required to

comply with the recordation requirements of the Act as amended, and

(2) The fasteners associated with the certificate are fasteners

that must bear an insignia pursuant to 15 U.S.C. 5407.

24. Redesignated Sec. 280.313 is amended by revising paragraph (a)

and the first sentence of paragraph (b) to read as follows:

Sec. 280.313 Recordal of additional insignia.

(a) A manufacturer to whom the Commissioner has issued an

alphanumeric designation may apply for recordal of its trademark for

fasteners if the trademark is the subject of a duly filed application

or is registered in the U.S. Patent and Trademark Office on the

Principal Register. Upon recordal, either the alphanumeric designation

or the trademark, or both, may be used as recorded insignias.

(b) A manufacturer for whom the Commissioner has recorded a

trademark as its fastener insignia may apply for issuance and recordal

of an

[[Page 69975]]

alphanumeric designation as a fastener insignia. * * *

25. Redesignated Sec. 280.320 is amended by revising paragraphs (a)

and (b) and paragraphs (c)(1) through (c)(5); redesignating existing

paragraphs (c)(6) through (c)(8) as paragraphs (c)(7) through (c)(9),

respectively; adding a new paragraph (c)(6); and revising redesignated

paragraph (c)(7) to read as follows:

Sec. 280.320 Maintenance of the certificate of recordal.

(a) Certificates of recordal remain in an active status for five

years and may be maintained in an active status for subsequent five-

year periods running consecutively from the date of issuance of the

certificate of recordal upon compliance with the requirements of

paragraph (c) of this section.

(b) Maintenance applications shall be required only if the holder

of the certificate of recordal is a manufacturer at the time the

maintenance application is required.

(c) * * *

(1) The name of the manufacturer;

(2) The address of the manufacturer;

(3) The entity, domicile, and state of incorporation, if

applicable, of the manufacturer;

(4) A copy of manufacturer's certificate of recordal;

(5) A statement that the manufacturer will comply with the

applicable provisions of the Fastener Quality Act;

(6) A statement that the applicant for recordal is a

``manufacturer'' as that term is defined in 15 U.S.C. 5402;

(7) A statement that the person signing the application on behalf

of the manufacturer has knowledge of the facts relevant to the

application and that the person possesses the authority to act on

behalf of the manufacturer;

* * * * *

26. Redesignated Sec. 280.321 is amended by revising the first

sentence to read as follows:

Sec. 280.321 Notification of changes of address.

The applicant for recordal or the holder of a certificate of

recordal shall notify the Commissioner of any change of address or

change of name no later than six months after the change. * * *

27. Redesignated Sec. 280.323 is amended by revising the second

sentence of paragraph (a) and adding new paragraph (f) to read as

follows:

Sec. 280.323 Transfer or assignment of the trademark registration or

recorded insignia.

(a) * * * Any transfer or assignment of such an application or

registration must be recorded in the Patent and Trademark Office within

three months of the transfer or assignment.

* * * * *

(f) An alphanumeric designation that is reactivated after it has

been transferred or assigned shall remain in active status until the

expiration of the five year period that began upon the issuance of the

alphanumeric designation to its original owner.

28. Redesignated Sec. 280.324 is amended by revising paragraphs

(a)(1) through (a)(3); redesignating existing paragraph (b) as

paragraph (a)(4); revising the first two sentences of redesignated

paragraph (a)(4); redesignating paragraph (c) as paragraph (b); and

revising redesignated paragraph (b) to read as follows:

Sec. 280.324 Change in status of trademark registration or amendment

of the trademark.

(a) * * *

(1) Issuance of a final decision on appeal which refuses

registration of the application which formed the basis for the

certificate of recordal;

(2) Abandonment of the application which formed the basis for the

certificate of recordal;

(3) Cancellation or expiration of the trademark registration which

formed the basis of the certificate of recordal; or

(4) An amendment of the mark in a trademark application or

registration that forms the basis for a certificate of recordal. The

certificate of recordal shall become inactive as of the date the

amendment is filed. * * *

(b) Certificates of recordal designated inactive due to

cancellation, expiration, or amendment of the trademark registration,

or abandonment or amendment of the trademark application, cannot be

reactivated.

29. Redesignated Sec. 280.325 is revised to read as follows:

Sec. 280.325 Cumulative listing of recordal information.

The Commissioner shall maintain a record of the names, current

addresses, and legal entities of all recorded manufacturers and their

recorded insignia.

30. The reference to ``Sec. 280.710'' is revised to read

``Sec. 280.310'' in the following sections:

Redesignated Sec. 280.311; redesignated Sec. 280.312.

[FR Doc. 99-32240 Filed 12-14-99; 8:45 am]

BILLING CODE 3510-13-P