Transportation Development Group — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation 400 Seventh Street, S.W. Washington, D.C. 20590 Pipeline and Hazardous Materials Safety Administration ANG 24 2006 President Mr. Jim Powell Ref. No.: 06-0169 Transportation Development Group 2390 Crenshaw Blvd, Ste 513 Torrance, CA 90501 Dear Mr. Powell: sale" as it applies to sales of consumer commodities shipped in accordance with the This responds to your letter of July 19, 2006 regarding interpretation of the term "retail Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180). According to your letter, Transportation Development Group (IDG) has a client who businesses that repackage them for sale to a consumer. Your client also has a manufactures and distributes fragrances and flavorings. Most items are sold to other manufacturer-direct model where a consumer can log into their website and buy the same product in the same configuration. For example: TDG sells product ABC, a PG II fiberboard box. The package meets all of the requirements for consumer commodity flammable liquid, as a perfumery product and packages it in a 5 L metal can in a are marked as an ORM-D and shipped overnight by UPS (marked ORM-D Air) for (i.e., up to 5 L for PG Il perfume [SP149]) and not over 30 kg gross weight. Packages delivery to a person who ordered it on the internet. Q1. Could TDG mark and label all of its shipments of product "ABC" as a Consumer theoretically possible that a "consumer" would want to purchase a gallon size Commodity, regardless of the nature of an individual shipment because it's metal can of perfume? Al. A consumer commodity is defined as a material that is both packaged and strumentalities for consumption by individuals for purposes of personal care ( istributed in a form intended or suitable for sale through retail sales agencies ‹ household use. Even though a material may not be intended for retail consumption, it may be suitable for such usage and, therefore, may meet the flavorings. Therefore, if the fragrances and flavorings described in your letter definition of consumer commodity. Such products may include fragrances anc qualify for reclassification and are packaged accordingly, they may be describer as a "Consumer commodity", and reclassed as ORM-D material, even if no intended for personal or household use. 111.8 173.150 060169#

Page 2Packages of ORM-D material must be marked "Consumer Commodity, ORM-D" in accordance with § 172.316. Shipments of ORM-D materials are not subject to the shipping paper requirements of Subpart C of Part 172 of the HMR unless the material meets the definition of a hazardous substance, hazardous waste, or marine pollutant, or unless offered for transportation by air. Section 173.156 provides additional exceptions for shipments of ORM-D materials. Q2. Is sale from a manufacturer over the Internet direct to a user considered "retail" sale, or is there some obligation on the part of the seller/shipper to determine the nature of the person buying the product before allowing the product to be reclassed as a "consumer commodity"? A2. In order for your products to be renamed "Consumer commodity" and reclassed for consumer commodity in § 171.8; (2) the material is authorized in packaging as ORM-D, each product must meet the following requirements: (1) the definition exceptions in Column (8A) of the § 172.101 Hazardous Materials Table; (3) the and (4) the material is properly prepared for shipment in accordance with the referenced packaging exception allows an exception for shipment as an ORM-D; consumer commodity provisions. I hope this satisfies your inquiry. If we can be of further assistance, please contact us. Sincerely, ? ¿ John A. Gale Office of Hazardous Materials Standards Chief, Standards Development#

Page 3Transportation Development group logisticstraining.com 415 Dairy Road, PMB E234, Kahului, HI 96732 (800) 949-4834 | (800) 527-5121 FAX jim@dgtraining.com Engrum July 19, 2006 § 171.8 Interpretation Request Mr. Edward T. Mazzullo $173.150 400 7th Street S.W. DHM10 PHMSA Office of Hazardous Materials Standards Definition (oRms Washington, DC 20590-0001 Dear Mr. Mazzullo: What is the definition and or interpretation of the term "retail sale"? Before the internet and the "big box" stores I think it was easier to determine what was retail and what So, in looking at the definition of a consumer commodity, numerous other interpretations by your office have made it clear that the item doesn't actually have to be sold at retail, or even sold to a customer; it just must be in a form "suitable" for such a sale. I have a client who manufactures and distributes fragrances and flavorings. Most of these items are sold to other businesses who then repackage them for sale to a consumer. However, they do have a manufacturer-direct model where consumer can log into their website and buy the same product in the same configuration. cames thin a l met sella pin tiberboard POx. The mable mid a l perfumer prode a consumer commodity (i.e. up to SL* for PG I perfume i*SP 149] and not over 30 kg gross veight. It is ckages it in a › . metal can in a tiberboard hoxin marked and labeled as an ORM-D and is shipped overnight by UPS (marked ORM-D Air) for delivery to someone who orders it over the internet. Commodity as a matter of course, regardless of the nature of an individual shipment because it's Question #1: Could this company mark and label all of shipments of product ABC as a Consumer theoretically possible that a "consumer" would want to purchase a gallon size metal can of perfume? there some obligation on the part of the seller/shipper to determine the nature of the person buying the Question #2: Is sale from a manufacturer over the internet direct to a user considered "retail" sale, or is product before allowing the product to be reclassed as a "consumer commodity". I hope the answer is "no" but this doesn't seem very practicable. 2390 Crenshaw Blvd, Ste 513, Torrance, CA 90501 TDG Los Angeles (310) 302-0808 | FAX (310) 302-0809#

Page 4Transportation Development -group logisticstraining.com Thank you! Sincerely, gintice Jim Powell President jim@dgtraining.com 1-310-302-0808 2390 Crenshaw Blvd, Ste 513, Torrance, CA 90501 TDG Los Angeles (310) 302-0808 | FAX (310) 302-0809#