{"operation":"document","citation":"09-0238","title":"Mitsubishi International Corporation — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2010-02-16","effective_on":null,"summary":"09-0238 response to Mitsubishi International Corporation concerning 171.1, 171.8.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-09-0238.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-09-0238.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-09-0238","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretations/090238.pdf","body":"<<<PAGE 1>>>\n\nU.S. Deportment of Transportation Pipeline and Hazardous Materials\nSafety Administration\n1200 New Jersey Avenue SE\nWashington. DC 20590 •\nFEB 16 2010\nMs. Lyn Russo\nHazmat Compliance Department\nMitsubishi International Corporation\n655 Third Avenue\nNew York, NY 10017\nRef. No. 09-0238\nDear Ms. Russo:\nThis responds to your October 23, 2009 email and further communications with a member\nofmy staff requesting clarification ofthe applicability of the Hazardous Materials\nRegulations (HMR; 49 CFR Parts 171-180). Specifically, you ask whether your\nsubsidiary company is required to register as an offeror or transporter of hazardous\nmaterials in accordance with the requirements in 49 CFR Part 107, Subpart G.\nAccording to your October 23 and December 15 emails:\n- Your subsidiary company purchases methanol in bulk from overseas companies,\ntakes title to the methanol on arrival at a U.S. port, but never takes physical\npossession ofthe methanol or performs any pre-transportation or transportation\nfunction as defined in § § 171.1 and 171. 8.\n- Your subsidiary company leases space for storage ofthe methanol in tanks\nowned by terminal companies.\n- Your subsidiary company sells the methanol stored at a terminal. When the\nmethanol is sold, (1) either the subsidiary company or the customer hires a carrier\ncompany to transport the methanol from the terminal to the customer; and (2) the\ncarrier company and the terminal company handle the physical transfer of the\nmethanol from the storage tank to the transport vehicle, and they prepare the\nshipping papers that accompany the methanol during transportation.\n- Your subsidiary company, in all cases, is independent of the terminal company\nand the carrier company. The carrier and terminal companies do not act as an\nagent for your subsidiary company when they perform services under contract with\nyour subsidiary company.\nBased on the information provided in your emails.itis the opinion of this Office that your\nsubsidiary company does not offer or transport a hazardous material in commerce and\nthus, is not subject to the HMR and is not required to register under 49 CFR Part 107,\n\n<<<PAGE 2>>>\n\nSubpart G. As provided in 49 CFR 107.601, a person who offers or transports certain\ntypes and quantities of hazardous materials is required to register and pay the annual\nregistration fee. A \"person who offers or offeror\" means any person (e.g., a company)\nwho: (1) performs, or is responsible for performing, any pre-transportation function (see\n§ 171.I(b)) required under the HMR for transportation of a hazardous material in\ncommerce; or (2) tenders or makes the hazardous material available to a carrier for\ntransportation in commerce (see § 171.8). Contractual agreements such as the acquisition\nor transfer ofownership of hazardous materials prior to transportation; selection ofa\ncarrier to perform pre-transportation functions and/or transportation functions; and leasing\nof a transport vehicle (e.g., a rail tank car) for carriage of hazardous material in and of\nthemselves do not constitute performing a pre-transportation function. Therefore, your\nsubsidiary company is not subject to the HMR nor is it subject to registration\nrequirements.\nI hope this information is helpful. If you have further questions, please contact this\nOffice.\nSinc;r .~\nCharleSE.~\nChief, Standards Development\nffice ofHazardous Materials Standards\n\n<<<PAGE 3>>>\n\nDrakeford, Carolyn (PHMSA)\nFrom: INFOCNTR (PHMSA)\nSent: Monday, October 26, 2009 8:26 AM\nTo: Drakeford, Carolyn (PHMSA)\nSubject: FW: Interpretations of Hazmat Regulations\nCarolynl\nThanksl\nRob\nHere is another request for written interpretation.\n-----Original Message----From:\nlyn.russo@mitsubishicorp.com [mailto:lyn.russo@mitsubishicorp.com]\nSent: FridaYI October 23 1 2009 4:17 PM\nTo: INFOCNTR (PHMSA)\nSubject: Interpretations of Hazmat Regulations\nGreetings l\nI am writing to request an interpretation of the HMR on behalf of one of\nour subsidiary companies.\nSpecifically, we would like to know if the following actions render our\nsubsidiary company (Company A) subject to the HMR and the registration\nrequirement under 49 CFR Part 107 1 Subpart G.\nThe supply chain is outlined as follows:\n-Company A buys Methanol (Class 3 1 UN 1230) in bulk from overseas\nsuppliers. It is shipped to the U.S. via ocean carrier.\nThe terms of sale are C + F (title.transfers to Company A when it arrives\nat a U.S. port).\n-In the current import schemel Company A is not the importer of record\"\"\ninto the U. S ..\n-After importation. the methanol is held in storage tanks in the U.S.\nunder the ownership and title of Company A.\n-Company A distributes/sells the Methanol to U.S. customers.\n-As a result of the sale I ownership and title is transferred to the U.S.\ncustomer when the methanol leaves the tank.\n-Either Company A or their customer will hire carriers on their own to\npick up the Methanol from the storage tanks.\n-On occasionl Company A leases U.S. rail cars to transport the Methanol\nto customers.\nAt no time does Company A take physical possession of the goods. Company\nA leases space in storage tanks. They do not own the tanks. They do not\noperate nor own any carriers/delivery trucks. Company A never sees the\ngoods l inspects carriers equipment nor performs any pre-transportation\nfunctions.\nWe would like your interpretation and advice to determine if Company A is\nsubject to the HMR and the registrations requirements under 49 CFR Part\n1071 Subpart G.\nPlease feel free to contact me if you have any questions or concerns.\n1\n\n<<<PAGE 4>>>\n\nThank you in advance for your prompt response.\nLyn Russo\nManager\nCustoms Compliance Department\nHazmat Compliance Department\nMitsubishi International Corporation\n655 Third Avenue\nNew York, NY 10017\nP) 212 605-2183\nF) 212-605-2180\nE) lyn.russo@mitsubishicorp.com\n2","truncated":false,"body_characters":5813}