Exemption Labelling Changes for Vehicles

Summary#

This is a proposed change to the Motor Vehicle Safety Regulations to bring them into line with changes already made to the Motor Vehicle Safety Act by Bill S-2. Practically, it would let Transport Canada use a short exemption identifier on vehicle labels and give manufacturers more flexible options for where to put a temporary exemption label (for example, when a vehicle has no windshield). The proposal was published on May 7, 2022 and is still at the consultation stage (see “Who's affected” for the comment period).

What it does#

• Replaces the long list of exempted standards on the permanent compliance label with the words “Exemption/Dispense” plus a short, unique alphanumeric identifier supplied in the exemption order.
• Changes who makes exemption orders from the Governor in Council to the Minister of Transport (reflecting the changes made by Bill S-2, effective March 1, 2018).
• Removes the separate regulatory rule that allowed exemptions on the basis of substantial financial hardship (the federal law had already removed it).
• Updates wording about acceptable reasons for exemptions so it matches the updated Motor Vehicle Safety Act (for example, exemptions to support new safety features or new kinds of vehicles/technologies).
• Keeps the requirement that exempted vehicles carry a temporary label, but allows that label to be placed on any readily accessible external surface if the vehicle has no windshield or side windows or the glazing is too small.
• Leaves open the use of machine-readable solutions (like QR codes) but makes manufacturers responsible for implementing them and points users to the published exemption order for full details.

Who's affected#

• Vehicle makers, importers, and distributors — described in the law as “companies” — are the main group affected. Transport Canada estimates about 1,400 stakeholders in Canada could be affected.
• The general public and vehicle buyers who want to know which safety standards a specific vehicle model does not meet. Exemption details will be published by the Minister online as required by the Act.
• Historically, exemptions have been rare: since the 1970s only 9 exemptions were granted, covering about 20 vehicle models (roughly 5,000 vehicles) out of about 75 million new vehicles sold in Canada since 1970. It’s unclear how many exemptions will be sought in the future, but Transport Canada expects the number could grow as vehicle technology changes (for example, automated vehicles).
• Note: This is a proposed regulation published in Part I of the Canada Gazette. Interested parties had the opportunity to comment within 75 days after the Part I publication date.

Why it matters#

• It makes the on-vehicle labels shorter and more practical. That helps manufacturers fit exemption information on small compliance labels and reduces time spent preparing label text.
• It fixes a practical problem for vehicles that lack windshields or have very small glazed areas (for example, some motorcycles or future vehicle designs) by allowing another visible external location for the temporary label.
• It keeps a public record: the short label points to an identifier that users or inspectors can use to find full exemption details published by the Minister.
• It supports vehicle innovation. By making labelling and the exemption process more workable, the rule aims to make it easier to test and introduce new safety technologies while giving Transport Canada a way to track and publish details.
• Expected costs are minimal and centred on small design changes to labels.