These procedures and practices do not apply, however, to those persons who: (1) violate 14 CFR 21.2, Falsification of Applications, Reports, or Records; (2) are required to report failures, malfunctions, and defects pursuant to 14 CFR 21.3, but fail to make those reports in the timeframe required by the regulations; or (3) fail to report unsafe conditions pursuant to 14 CFR 183.63, Continuing Requirements: Products, Parts or Appliances.