Destileria Serrallés, Inc. — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation 1200 New Jersey Avenue. SE Washington. DC 20590 Pipeline and Hazardous Materials Safety Administration MAR 5 2010 Mr. Roberto Pantoja R&D Director PO Box 198 Mercedita, PR 00715-0198 Ref. No. 10-0014 Dear Mr. Pantoja: This responds to your January 21, 2010 email and subsequent telephone conversation with a member of my staff concerning the applicability of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) to air transport of alcoholic beverages. Specifically, you ask whether alcoholic beverages containing 70% or less alcohol by volume in inner packages of less than five liters are subject to the HMR when transported as cargo by aircraft. According to your email, your company transports 200 mL samples of alcoholic beverages containing 69.5% alcohol by volume by air. It is your understanding, in accordance with the International Civil Aviation Organization's Technical Instructions (ICAO TI), your samples are not subject to regulation as cargo aboard aircraft. Your understanding is correct. Alcoholic beverages containing 70% or less alcohol by volume, when packed in inner packagings of 5 liters or less, are not subject to the ICAO TI when carried as cargo (see ICAO TI; Part 3, Chapter 3, Special provision A9). Further, under § 173.150(d) of the HMR, an alcoholic beverage (as defined in 27 CFR 4.10 and 5.11) is not subject to the HMR if it meets one of the following conditions: (1) It contains 24% or less alcohol by volume. (2) It is in an inner packaging of 5 L or less, unless carried by a passenger or crewmember aboard a passenger aircraft, then it must conform to § 175.1O(a)(4) of the HMR as checked or carry-on baggage. (3) It is a Packing Group III alcoholic beverage in packagings of 250 L or less, unless transported by air.#

Page 2Therefore, based on the information you provided, your samples are not subject to the HMR because they are being transported as cargo in inner packagings in quantities of 5 L or less. I hope this information is helpful. If you have further questions, please contact this office. Sin~erlY, ~~ Charles E. Betts hief, Standards Development O' f Hazardous Materials Standards#

Page 3Roberto Pantoja From: Roberto Pantoja 'Der ttnderetl Sent: Thursday, January 21,20101 :39 PM To: 'Charles. Betts @doLgov' ~l13. IS6 CdX})Cc: 'Edward.Mazzullo@dot.gov' Subject: FW: INTERPRETATION OF 49CFR 173150(d) Attachments: Scan001.pdf E~Cep-hDV1s to - bD J~ Charles E. Betts Chief, Standards Division Dffice of Hazardous Materials Standards Dear M. Betts: We are in need of a prompt clarification if alcoholic beverages containing less than 70% alcohol by volume prepared in inner packages containing less than 5 liters are regulated when transported as cargo by aircraft (not as carry-on baggage by passengers). ICAD Regulations state that such shipments are not subjected to DG Regulations when carried as cargo by aircraft, but Mr. Juan Bulted, FAA HAZMAT Enforcement agent (Juan.Bulted@faa.gov), do not accept that clarification. He affirms ( see e-mail below) that the exempt only applies to rail, vessel, or public highway transportation, but that it does not apply if the package is sent by air.("unless transported by air") - 49CFR-173.1S0(d)(3) He assures that when transported by air, it is regulated by CFR as dangerous good and the alcoholic beverage exeptions for class 3 (flammable and combustible) are not valid. He want us to: 1-Declare packages containing more than 24% alcohol by volume as DG packages. (Even if they have less than 70% Ale/voL) 2-To send them only in special UN packaging. (He does not accept regular fiberboard rum cases) 3-To accompany the package with the "Shipper's Declaration for Dangerous Good" document. Since he inspected us in January 7,2010 we have put on hold all itinerary shipments via fedEx Air Carrier. Unfortunately this situation is affecting our operations, as these glass samples containing less than 70% Alc./vol are sent for customer pre-shipment approval. No shipment of rum tanks can be sent by Crowley Marine transport vessels without the customer prior evaluation and approval. The result will soon be the complete detention of all our bulk rum shipments that represent an 80% of our business. He also requested documents of all air shipments sent in Years 2008-2009 to fine us for not sending them as=Dangerous good packages. Please, please, clarify this to us and to Mr. Juan Bulted as soon as possible, so we can restart sending our pre-approval samples to our clients. Cordially Roberto Pantoja R&D Director Destileria Serralles,lnc. Enclosed please find attached letter sent to Mr. Bulted by our vice-President, Silvia Santiago. The letter below is his answer to Silvia's letter From: Juan,Bulted@faa.gov [mailto:Juan.Bulted@faa.gov] Sent: Wednesday, January 20, 2010 10:19 AM To: Silvia Santiago 1#

Page 4Subject: Re: Destilerfa Serralies Importance: High Ms. Santiago I have reviewed the letter of interpretation dated July 10, 2009, signed by Charles Betts. We have no problem with their interpretation, however, the circumstances described in the letter are not the same for Destileria Serralles. I refer you to the ending words of the last sentence on second paragraph which read "unless transported by air. II This is the situation applicable to Serralles. Samples are in packages lees than 250 L which is OK, and are in packing group III due to the 69.5 percentage of alcohol by volume, up to this point they would not be regulated.However, when offered and transported by air then they become regulated by 49 CFR. I'm stll waiting from legal and as soon as I have their reply I'll get back to you for the meeting. Thanks. Juan Bulted FAA Special Agent. <silvla.santiago@dong.corTl> To Juan BultedlASOIFAA@FAA cc <hector.guzman@dong.com> 01/191201001:17 PM Subject Destilerfa Serralles- Mr. Bulted, please, see accompanying letter requesting a new meeting with you. As a very responsible company, it is of the most importance for Destileria Serralles to comply with all regulations that cover our operations. The present situation with the alcoholic samples that we send to U.S. is causing a halt in our bulk shipments with a tremendous negative effect in our financials. I would greatly appreciate your kind attention to this request. 2#

Page 5Destileria Serralles, Inc. January 19, 2010 Mr. Juan Suited Special Agent Federal Aviation Administration Dear Mr. Suited In January 8th , 2010 in a meeting at our facilities you carefully explained to me the situation regarding the alcoholiC samples that we ship to the U.S. and the implications that surround not complying with the corresponding regulation that affects this type of shipments. DOT regulations are very complicated and also tricky, if the package is considered hazardous and we do not declare it as such there are penalties, but if the product is not hazardous and we declare it Hazardous then we can also be fined. With the intention to clarify the situation related to the interpretation of Regulation 49 CFR 173.150 I got together with DOT Consultant, Eng. Jose A. Torres Fontanez, in order for him to help us analyze and solve this matter. During his analysis Eng. Torres Fontanez found and presented us a letter that was sent to Mr. Eduard Mazullo of US DOT by Mr. Jim Shimko of DMG Consulting Services with the same question that we have. He requests an interpretation of rule 173.50(d) in relation to the transportation of alcoholic beverage with a concentration of 24% or more of alcohol by volume and 70% or less of alcohol by volume packed up internally in 5L or less by aircraft. Mr. Mazullo's reply to Mr. Shimko indicates that this material is not regulated to the concentrations previously detailed. Box 198, Mercedlta Puerto Rico 00715-0198 - Tel. (787) 840-1000 I Fax (787) 651-8016 Internet: http://www.donqrum.com#

Page 6For such reason, Mr. Buited, I would like to meet with you again and go over this matter once more. Probably we did not present all the related information and going over all the facts this matter could be solved once and for all. As I indicated in our meeting held on January 08, 2010, all itinerary shipments were put on hold until this matter could be clarified. Unfortunately this situation is affecting our operations as these samples are sent for customer approval, and no shipment can be sent without the customer evaluation. The result will soon be the complete detention of all our bulk shipments that represents and 80% of our business. I trust that this matter can be solved as soon as possible and by this manner be in compliance with your agency. I appreciate your kind attention to this request. Enclosed please find the document of DOT. Cordially, . ~,,--u,~ Silvia Santiago Senior Vice -President Manufacturing Tel. 787-840-1000, x2402 Fax. 787-840-1155 Enclosures#

Page 7U,S. Department ofTransportation Pipeline and Hazardous Materials Safety Administration 1200 t44!W Jerwy Ave. S.E. WasNngton, D.C. 20590 JUt: 10 2009 Mr. Jim Shinko DOM Consulting Resources 390 Hwy29N Newnan, GA 30263 Ref. No.: 09-0140 Dear Mr. Shinko: This responds to your letter dated June 9, 2009 request for clarification on the exception for alcoholic beverages in § 173.1S0(d) ofthe Hazmdous Materials Regulations (HMR; 49 CFR Parts 171-180). Specifically, you ask ifalcoholic beverages containing less than 7()ok alcohol by volume p~aged in inner packagings containing less than S liters each are regulated when transported as cargo by aircraft. The answer is no. Section 173.1SO(d) excepts an alcoholic beverage from the HMR ifit: (I) contains 24% or less alcohol by volume; (2) is in an inner packaging ofS L (1.3 gallons) or less, and for transportation on passenger-carrying airera~ it conforms to § 17S.10(a)(4) of the HMR as checked or carry-on baggage; and (3) is a Packing Group III alcoholic beverage in a packaging of2S0 L (66 gallons) or less, unless transported by air .. Alcoholic beverages canied by aircraft passengers or crewmembers are excepted from the HMR ifthe alcoholic beverages contain 24% or less alcohol by volume. Passengers or crewmembers may carry alcoholic beverages that contain more than 24% alcohol by volume and not more than 70% when in unopened retail packaginp not exceeding S L (1.3 gallons) carried in carry-on or checked baggage; the total net Cluantity per person may not exceed S L (1.3 gallons) for such beverages. See § 17S.IO(a)(4). Charles E. Betts hief, Standards Division ce ofHazardous Materials Standards#

Page 8DGiM Consulting Resoul'ClllS June 9, 2009 Mr. Edward Mazzullo U.S. Department of Transportation Pipeline and Hazardous Matenals safety AdminiStration East Building, 2nd Floor Mall Stop: E21-317 1200 New Jersey Ave., SE Washington, DC 20590 Dear Mr. Mazzullo: SUBlECT: Interpretation of 49CFR 173.150(d) We are In need of a clarification if alcoholic beverages containing less than 70% alcohol by volume prepared In Inner packaglngs containing less than 5 liters are regulated in air transport as cal'gO. In Chapter 3, Special Provisions, SP A9 of the ICAO Regulations it states such a shipment is not subject to the Instructions. Specifically it states; -Alcoholic beverages containing not more than 70 percent alcohol by volume, when packed In receptacles of5 liters or less, are not subject I.D these Instructions when camed as .~, . In reviewing 49CFR 173.150(d) it Is not clear whether the same exception applies. In paragraph 173.1SO(d)(2) It states; Is In an Inner packaging of5L (1.3gallons) or less, and for transpoltatlon on passenger-carrylng alraaft confonns to 175.10(a)(4) of this subchapter as checked or carry-on baggage." Part 173 Is General Requirements for Shipments and Packaglngs and 173.150 is exceptions for Class 3 materials, it is confusing that 173.150(d)(2) makes reference to baggage. Is the Intent of this sub-paragraph to indicate alcoholic beverages with not more than 70% alcohol by volume prepared in inner packaglngs of 5 liters or less Is not subject to the subchapter as a cargo shipment? If so, what Is the purpose for reference to 175.10(a)(4)? Sincerely, Jim Shimko Manager DGM Consulting Resources Jlm.Shlmko@DGMResourg::s.(;Om Cell: 404.323.8833 Office: 678.228.2235 390 Hwy 29 N, Newnan, GA 30263 OffIce: 678.228.2235 ,..Fax: 864.234.7521 Toll Free; 877.289.8588 -- --#

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Page 101173.141 HAZARDOUS MATERIALS GUIDE presents a hazard during transportation but which does not meet the definition of any other hazard class. This class includes: (a) Any material which has an anesthetic, noxious or other similar property which could cause extreme annoyance or discomfort to a flight crew member so as to prevent the correct performance of assigned duties; or (b) Any material that meets the definition in §171.8 of this subchapter for an elevated temperature material. a hazardous substance, a hazardous waste, or a marine pollutant 5173.141 Claaa 9 A88lgnrnent of packing group. The packing group of a Class 9 material is as indicated in Column 5 of the 5172.101 Table. 5173.144 Other Regulated MaterIals (ORM)-.Definltlons. For the purpose of this subchapter, ORM-D material means a material such as a consumer commodity, which, although otherwise subject to the regulations of this su~ chapter. presents a limited hazard during transportation due to its form, quantity and packaging. It must be a material for which exceptions are provided in the 5172.101 Table. Each ORM-D material and category of ORM-D material is listed in the 5172.101 Table. 5173.145 Other Regulated "atertale-Asslgnment of packing group. Packing groups are not assigned to ORM-D materi(1) For flammable liquids in Packing Group It inner packagings not over 0.5 L (0.1 gallon) net capacity each, packed in strong outer packagings; (2) For flammable liquids in Packing Group II, inher packagings not over 1.0 L (0.3 gallons) net capacity each, unless the material has a subsidiary hazard ofDivision 6.1. Packing Group II, in which case the inner packagings may not exceed 100 mL (3.38 ounces) net capacity each, packed in a strong outer packaging. (3) For flammable liquids in Packing Group ill and combustible liquids, inner packaglogs not over 5.0 L (1.3 gallons) net capacity each, packed in strong outer packagings. (c) Consumercommodities. Exceptfor a material that has a subsidiary hazard of DiVision 6.1, Packing Group II, a limited quantity wI1ich conforms to the provisions'of paragraph (b) of this section and is a "consumer commodity" as defined in 171.8 of this subchapter, may be renamed "Consumer commodity" and reclassed as ORM-O material. In addition to the exceptions provid~ by paragraph (b) of this section. shipments of ORM-D materials are not subject to the shipping paper requirements of subpart C of part 172 ofthis subchapter, unless the matenal ineets the definition of a hazardous substance. hazardous waste, marine pollutant. or are offered for transportation and transported by aircraft. and are eligible for the exceptions provided in §173.156. (d) Alcoholic beverages. An alcoholic beverage (wine and distilled spirits as defined In 27 CFR 4.10 and 5.11) is not subject to the requirements of this subchapter if it(1) Contains 24 percent or less aicohol by volume; (2) Is in an inner packaging of 5 L (1.3 gallons) or less, and' for transportation on passenger-carrying aircraft conforms to 1175.10(a)(17) of this subchapter as checked or cany-on baggage; or als. §173.150 Exceptions for Class 3 (ftammable and combustible liquids). (a) GefJ8raL Exceptions for hazardous materials shipments in the following paragraphs are permitted only if this section is referenced for the specific hazardous material in the §172.101 Table of this subchapter. (b) Umited quantities. Umtled quantities offlammable liquids (Class 3) and combUstible liquids are exCepted from labeling requirements, unless the material also meets the definition of DiVision 6.1 or is offered for trans;:,\\ portatlon or transported by aircraft. and the speciflCatiorf< packaging requirements of ttis subchapter when packaged in combination packagings according to this paragraph. In addition. shipments of limited quantities are not subject to subpart F (Placarding) of part 172 of this su~ chapter. Each package must conform to the packaging requirements of subpart B of this part and may not exceed 30 kg (66 pounds) gross weight The following combination packagings are authorized: 173-848 11/05 ---#

Page 11HAZARDOUS MATERIALS GUIDE §173.151 -- (3) Is a Packing Group m alcoholic beverage in a packaging of 250 L (66 gallons) or less, unless transported by air. (e) Aqueous solutions of alaJhol. An aqueous solution containing 24 percent or less alcohol by VOlumB and no other hazardous material(1) May be reclassed as a combustible liquid. (2) Is not subject to the requirements of this subchapter if it contains no less than 50 percent water. (f) Combustible liquids. (1) A flammable liquid With a flash point at or above 38 ·C (100 oF) that does not meet the definition of any other hazard class. may be reclassed as a combustible liquid. This provision does not apply to transportation by vessel or aircraft, except where other means of transportation is impracticable. (2) The requirements in this subchapter do not apply to a material classed as a combustible Uquid in a non-buIk packaging unless the combustible Uquid is a hazardous substance, a hazardous waste. or a marine pollutant (3) A combustible liquid that is in a bulk packaging or a combustible liquid that is a hazardous substance, a hazardous waste. or a marine pollutant is not subject to the requirements of this subchapter except those pertaining to: (Q Shipping papers. waybills, switching orders, and hazardous waSte manifests; (iQ Marking of packages; Oil) Display of identification numbers on bulk packages; (IV) For bulk packaging only. placarding requirements of subpart F of part 172 of this subchapter; (v) carriage aboard aircraft and vessels (for packaging requirements for transport by vessel. see §176.34O of this subchapter); (VI) Reporting incidents as prescribed by §§171.15 and 171.16 of this subchapter; (vii) Packaging requirements of subpart B of this part • and. in addition. non-bulk packaglngs must conform with I requirements of §173.203; (viiQ The requirem~nts of §§173.1. 173.21. 173.24. 173.248. 173.24b, 174.1. 177.804. 177.817. 177.834(D, and 177.837(d) of this subchapter; (Ix) The training requirements of subpart H of part 172 of this subchapter. I (x) Emergency response information requirements of subpart G of part 172. (4) A combustible liquid that is not a hazardous substance. a hazardous waste, or marine pollutant is not subject tQ the requirements of this subchapter if it is a mixture of one or more components that(0 Has a flash point at or above 93·C (200 .F). (iI) Comprises at least 99 percent ofthe volume ofthe mixture. and (iii) Is not offered for transportation or transported as a liquid at a temperature at or above its flash point. §173.151 exceptions for Class 4. (a) General. Exceptions' for hazardous materials ~hip!1lents in the following paragraptl! are permitted only if thiS. section is referenced for the ~s~qific hazardous material inthe §172.101 Table of this,subChapter. •. (b) Umited quantities of Division 4.1. Umited quanti· ties of flammable solids (D!Yision 4.1) in Packing Groups less the material also m~t$~ definition of Division 6.1 In and In are excepted fr9.f1l. :. labeling requirements, unor is offered for transportatiOn .or transported by air-craft. and the specification packaging requirements ofthis subcha~ter when packaged In combination packagings ac· ~rdlng to this paragraph. In additioh •. sJlipments·,of limited quantitJes are not subject tQ subpart-F ,(placarding) of part 172 of this subchapter. Each package· must con· form to the packaging requirements of subpart B'of this pa~ and may not exceed 30· kg (66 pounds) gross ~elght. The follOWing combination packagings are authorized: packaglngs not over 1.0 kg (2..2 pounds) net capacity each. unless the material has a subsidiary hazard of DiviI (1) ~or flammable solids in Packing Group n. inner s~n 6.1, Packing Group n. in which case the inner packaglngs may not exceed 0.5 kg (1.1 pounds) net capacity each, packed in a strong outer packaging. packaglngs not over 5.0 kg (11 pounds) net ~city each. packed in a strong outer packaging. I (2) For flammable solids in Packing Group m inner (c) Con~~' commoditie~ .~~pt for a material that has a subsidIarY hazard of DIVISIOn 6.1. Packing Group n, a limited quantity which conforms to the provisions of paragraph (b) of this section, and charcoal briquettes in ~kagings not exceeding 30 kg (66 pounds) gross weight, may be renamed "Consumer commodity" and reclassed as ORM-D material, ifthe material is a "consumer commodity" as defined in §171.8 ofthis subchapter. In ~dition .to the .exceptions provided by paragraph (b) of • thIS section, shipments ofORM-D materials are not subject to the shipping paper requirements of subpart C of part 172 of this subchapter, unless the material meets the definition of a hazardous substance. a hazardous • waste, marine pollutant. or is offered for transportation or transported by aircraft, and are eligible for the exceptions provided in §173.156. .Cd) Umited quantities of Division 4.3. ~mited quanti· I ~es of dangerous when wet (Division 4.3) solids in PackIng Groups n or m are excepted from labeling requirements, unless the material also meets the definition of D~n 6.1 or is offered for transportation or transported by aJ.rcraft. and the specification packaging requirements of thIS subchapter when packaged in combination packagings according to this paragraph. In addition, shipments of limited quantities are not subject to subpart F (Placarding) of part 172 of this subchapter. Each pack· 173-85 3/05#

Page 1249 CFR - 172-101 Hazardous Materials Tables and Special Provisions (172.102) Proper shipping name: Alcoholic Beverages Hazard Classification 3 Identification Number: UN3065 Packing Group: III - Minor Danger Special Provisions(172-102): ~ Bl, 183, Nll, T2, TPl No material from lATA has been included... It only contains material from: CODE OF FEDERAL REGULATION TiTlE 49:TRANSPORTATION PART 175 - CARRIAGE BY AIRCRAFT US HAZMAT LAWS & REGULATIONS Data is current as ofJanuary 8, 201.0 Roberto Pantoja#

Page 13, Alcoholic beverages Page 1 of 1 IMSDS/172_101/172HMT/172_101057.HTM (4 hits) H_E_'. Tired of wading through volumes of the printed Code of Federal Regulations books? 49 CFR - 172.101 Hazardous Materials Table (1) Symbols (+, A, D, G, I or W) (2) Hazardous Material Description Alcoholic beverages and Proper Shipping Name: (3) Hazard Classification 3 (4) Identification Numbers UN3065 (5) Packing Group (PG) III I-Great Danger II-Medium Danger III-Minor Dangel (6) Label Codes 3 (7) Special Provisions (172.102) 24, B1, IB3, N11, T2, TP1 (8A) Packaging Exceptions 150 (173.***) (8B) Packaging (Non-Bulk) 203 (173.***) (8C) Packaging (Bulk) (173.***) 242 (9A) Passenger Aireraft 60 L (9B) Cargo Aireraft Only 220 L (10A) Vessel Storge (Location) A (10B) Vessel Storage (Other) «LÊ_PP_ Filename: D:|MSDS\172_101\172HMT\172_101057.HTM dtSearch 7.54 (7660) http://www.setonresourcecenter.com/dtSearch/dtisapi6.dll?cmd=getdoc&Docld=57&Index=D%3a%5c... 1/12/2010#

Page 14?AI_o.. ~"-~"-""" I... : ••",. __ :-",.: ••• _:_ t ..... _" i. __ i.__ 1 ___ i_ i .... _. i. Sym I Hazardous materials descriptions Hazard. P\;i LaOi'll ::>p.eclal provl- (9) Quantity limitations (10) Vessel '111 S'. bois and proper shipping names class or Codes srons stowage division Loca- Other tion (1) (2) ==t=::;:::=S12:::::;:::;:~~;:.:::::=:::::::::~=I;:~==i:;:;;~~=t::~=i;:::::~~:::::::~~=t==::)::~::±~~~=:=~~S10AL ,(1QB) Air, refrigerated liquid, [(CI}'OgenlcS18.~,. _ IF.orbidden IForbidden ED liquid non-pressurized] 3!!.j ,._ 51 (Airoraft engines (including.turblnJ1s), ' , ---+--!_-+--+--- ----t see} Engin~s,·internarcombustion (Alroraftevacuatlon sl/des, seel Life saving ~fi!lnces [etc] None 17:21NoneiFcirblclden 142 r--ie=--+- 8 Aircraft hydraulic power unit fuel 3 UN3165 II S,6.1, tank [(containinl) a mixture of anhydrous hydrazlne and monomethyl hydrazlne) (Mat) fuel)1 (Ai~aft sutvival Iffts, see] Ufe sav- ·---+--l---t--+---TI---l---!---- G B:Alc~~olates solution, n.o.S., [in alco- IB2202 /243 1,1l 1 5l I-' -+ __ __ +-__ ..;J ~ tll Alcoholic beverages 24, 149,81,IB2, 202i24rlS~l IA II T4, TP1 jit. Alcoholic beverages 13 UN30651111 13 24, B1, iB3, N11, 15()' 1203 1242 160 l 1220 l A T2, 11"1. Alcohols,. n.o.s. I3 UN:1987 II 13 fi;2, 111:, TP1, Non.e 1201 1243 11 l 13Q l E . ,TP8,.TP27 Alcohols, n.o.s. 13 UN1987 III 13 172; 182, T7. TP1, TP8, .TP28 150 \202 ·1242 ISl 160 l B Alcohols, n.o.s. IS UN19871!1I 13 1172,81,IB3,T4, 150 1203 1242 160 l 1220 t A TP1,TP29 G Alcohols, flammable, toxic, n.o.s. 13 UN1986 II 13,6.1 IT14:TP2, TP13, None 1201 1243 IForbidden. 130.t E 40 TP27 G Alcohols, flammable, toxic, n.o.s. 13 UN1986 Iii. IS,6.1 IIS2, 111, TP2, TP27. 150 1202 1243 11l 160 l B 40 G Alcohols, flammable. toxic, n.O.S. 13 I I I UN1986jlll 13,6.1 B1,IB3,T7,TP1, 150 1203 1242 160!- I220· l A. Aldehydes, n.o.s. 3 UN1989 I AS- .. -+"T"'"1~7'.,P';;p;;:,81;-,:;;TP:::;:2;:;-7-+::c;----t;~-+:::-:;;:-\-::-;----+.:-::-.---+=----,f- Aldehydes, n:o.s.- - 13 IUN1989·!U 13 1182,17, TP1, 11SO 1202 .1242 ISll60t,. IB TP8, TP28 ! ::::1 .CD ,~, a. :::c =. I» ... &:t. o c· 1/1-: I :::t. I» iii UJ. I» ir ~ 3 Si ar o F c S I a ;j 2:. CD THIS IS A CQPY. FROM. n. BDLTED BAZHAT TABLE#

Page 15502 SPEC8AL PROV8S80NS' dew-point at or below minus 46:7°0 (minus 52°F), at 101 kPa (1 atmosphere) and is free of corroding components, to not more ,than the service pressure of the cylinder. c. A fire extinguisher may riot contain more thart 30% carbon dioxide by volume or any other cor-. ' rosiveextinguisliing agent. d. Each fire extinguisher must be protected exler- . nally by suitable corrosion-resisting coating. 19 For domestic transportation only, the identification,,·, number "UN1075" may be used in place ofthe ide~i' ficationnumber specified in Column (4) of the §172.1;O~;" Table. The identification number used must be cons~J tent on package markings, shipping papers and emer~< gency response 'information. 21 This materiai mustbe stabilized by appropriate meansfbl' (e;g., addition of chemical Inhibitor, purging.to oxygen) to prevent dangerous polymerization §173.21 (f) of this subchapter). 22 If the hazardous material is in dispersion in organic:, liquid, the organic liquid must have a flash point above' 50°C (122°F). 23 This material.may be transported under the of DiVision 4.1 only if it is so packed that the norl"onfi:lrii:l: of diluent will not fall below that stated!n description at any time during transport. Ouan·;+; not more than 500 gper package with not.less percent water by mass may also be classed in 4.1, provided a negative test result is obtained tested in accordance with test series 6(c) of the' Manual of Tests and Criteria (IBR. see §171.7 of subchapter). 24 Alcoholic beverages containing more than 70 alcohol by volume must be transported as rn!>tori!>IQlln,... SPECUAIL. U:»ROV~S~ONS 503 Packing Group II. Alcoholic beverages'contalrdng more than 24percent but, not'more than 70 percent alcohol by volume most betransport&das materialS-In Packing Group III.. this entry does not Include ammonlum'permanganate~ the transport 01 which is prohibited exceptwhenapproved by the Associate Administrator. The dlhydrated.sQdlum salt of dichioroisocyanUrici8cld Is not subject to therequiremenfs of this subchapter.' For transportation by motor vehicle, rail car or vessel, 'production runs (exceptions for. pr~totypes. can be found in§173;185(e» ofnot'more than 100 lithium cells or·batteries are excepted from thetesting requirements of§173.185(a)(1)ifa. For a lithium metal cell.orbattary, the IHhium content is not more than ,1'.0 ,g:per cell ,and ,the aggregate lithium contenfls helFmore than'2.0 gper battery, and, for a lithium-ion'cellor b~ttery, the equivalent lithium ,content is, not more than 1.5:g per cell and the aggregate equivalent lithium contenUs not mqre than.8 g, per battery; b. The cells and batteries are transported In'an outer pacl<aging that Is ametal, plastiC or:plywood drum or metal; plastic or wooden 'box that meets the. criteria for Packing Group'l packagings;and c. Each cell and battery. Is Individually'packed In an Innerpackaging inside an outer.packaging.and is surrounded by cushioning material' that·is noncombustible, and non-conductive. Sulfur is not SUbject to the requirements· of this subchapter if transported In: a non-bulk packaging or if formed' toa· specific shape (for example;,'priUs, granule-s,. pellElts, pastilles, or flakes). Abulk packaging containing sulfur is not subject' to ,the, 'placarding#

Page 16546 547 SPECIAL PROVUSBO,N$L', SP,ECIAlPIROV~S~OINlS Code/Specia.l provisions Steel single packagings'are not authorized. H3 Glass inner pac~agings are permitted in combination:Gr' Aluminum materials of construction are not authorized. compositepackagings only if·the hazardous materiall~\ for single packagings. free from hydrofluoric acid. ' N4 For combination or compositepackaglngs, 'glass Inn:arpackagings, other than ampol,lles, are notperniitted!, N5 Glass materials of construction are nofauthorized"for· any part of a packaging which is normally In contaCt; with the hazardous material. H6 Battery fluid packaged with electriC storage batteri~$; wet or dry, must conform to the packaging provlsions,dfl, ' §173.159(g) or(h)-of this subchapter. ' N7 The hazard class or division number of, the'mater.lali" must be marked on the package in accordance'1J\1116j, §172.302 of this SUbchapter. However, thehazard·lai5eli corresponding ·to the hazard class or division mayjbei, substituted·for the,marking. H8 Nitroglycerin solution'in alcohol'may be transported:uf,l.0 ' der this entry only when the solution is packed'in:me~n: cans ofnot more than 1 Lcapacity each, overpacked/rill awooden box containing notmore than 5 L. Metal cans;) must be completely surrounded with' absorbent cu . " loning material. Wooden boxes must be comple _ lined witha'suitable material impervious towater'arid\;:' nitroglycerin. N111 . This material isexcepted.for the specification packag., ing requirements,of this subchapter if the materiaHisl packaged in strong, tight non-bulk'packaging meeting!: the requirements of subparts Aand Bof part:1730Ufi1S1 subchapter. N12 PlastiC packagings are not authorized. N20, A 5M1 mUlti-wail paper bag is authorized if transP,O~e,dt\ in a closed transport vehicle. ' Aluminum drums are not authorized. Aluminum construction materials arenotauthorizedJor anYipart ofa packaging',which is normally-in,contact with the hazardous material. Aluminum or aluminumalloy construction'materials are' p~rmitt9d only for halogenatedhydrocamonsithat will not react with aluminum. This material may be shipped'iri:anifitegrally'~lined fiber drum (1 G) which meets-the generarpackagirigrequirements of $ubpart B of part.173,of this subchapter,th~ requirements ofpart 178 of this subchapter atth'epack'1ng· group assigned· for the: material and' to'any other speCial provisions of column 70f the§172'.101 table. . This material Is not authorized in ' the following packagings:. a. :b. A combination packaging consisting qf a 4G fiberboard box with inner receptacles of glass or earthenware; A single packaging of a 4C2 sift~proof; natural wood box; or c. Acomposite packagil'lg 6PG2 (glass, porcelain or stoneware receptacles within afib'erboard box). Metal construction materials are nol'authorized for any part dfa packagingwhich is normally in contact with tne hazardous material. ,1 A 1 drums made of carbon steel with thickness of body and heads of not 'less than '1.3 mm, (O.050Anch)and with a corrosion-resistant phenolic lining are authorized#

Page 17Roberto Pantoja From: Sent: To: Cc: Subject: Attachments: Importance: Sensitivity: Juan .Bulted@faa.gov Monday, January 11 , 2010 10: 15 AM Roberto Pantoja Silvia Santiago; Hector Guzman Re: Hazmat Inspection (Briefing) FAA.PDF High Private Mr. Pantoja I am aware of lATA's requirements for alcoholic beverages. However, we do not enforce lATA; we do enforce the US hazmat law and regulations. lATA stands for International Air Transport Association which is an international industry trade group of airlines headquartered in Montreal, Quebec, Canada. lATA's mission is to represent, lead, and serve the airline industry and does not represent or has any government regulatory authority. lATA represents some 230 airlines comprising 93% of scheduled international air traffic and not any Governmental Authority. Shippers offering hazmat for air transportation to or from the USA (Puerto Rico is part of the USA) must comply with 49 CFR or the International Civil Aviation Organization (ICAO), s Technical Instructions for the Safe Transport of Dangerous Goods by Air. If you prefer to utilize lATA, it is your choice. Nevertheless, you must comply with either 49 CFR or the International Civil Aviation Organization (lCAO), s Technical Instructions for the Safe Transport of Dangerous Goods by Air.! hope this further clarifies any additional doubts you may have concerning our discussion last week (Thursday and Friday) during our hazmat inspection. I suggest you relay this information to your hazmat trainers in the event you think it is needed. Thanks. Juan Bulted FAA HAZMAT Enforcement <roberto.pantoja@dong.com> To Juan BultedlASO/FAA@FAA cc 01/08/201002:12 PM Subject 1#

Page 18. 3 (6.1,8) Flamm. liquid & Toxic & Corrosive I EO 2.2 Non-flamm. (5.1) was &crxgenic iquid & xidizer EO 3 (8) Flamm. liquid & Corrosive II 3 Flamm. liquid III 3 Flamm. liquid II II III I II III E2 El E2 E2 El EO E2 El . 3 3 (6.1) 0.5 L 10 L 1L - - 1L 10 l - 1L 2L Forbidden Forbidden 305 1L 309 60l 305 5L Not Restricted I Not Restricted 305 5L 309 60 L Fori!idd~D 305 ll· 309 60 L 301 202 307 310 307 Not Res I Not Res 307 310 303 307 310 1 z o ~ (,,) u:: ;:: z w 9 ~ ,,(I .. lATA Dangerous Goods Regulations I UNJ . 10 no. A Proper Shipping NamelOeilcriptiori Class or ~iy. (Sub Risk) B C Hazard t Label(s) 0 , PG EQ' see 2.7 E F 0332 0503 3268 0503 3268 1002 3165 1003 3274 3065 3065 . 1987 1986 1.50 l,4G Explosive 1.4 9 Miscellaneous t4G Explosive 1,4 9 Miscellaneous 2.2 Non·flamm. gas III III EO EO EO EO El , Agent, blasting type E t Air bag inflators t Air bag inflators t Air bag modules t Air bag modules t Air, compressed Aircraft, see Vehicle, flammable gas powered (UN 3166) or Vehicle, flammable liquid powered (UN 3166) Aircraft engines, see Engines, internal combustion, flammable liquid powered (UN 3166) Aircraft engines (including turbines), see Engines, internal combustion, flammable gas powered (UN 3166) or Engines, internal combustion, flammable liquid powered (UN 3166) Aircraft evacuation slides, see Life-savlng appliances, self·inflatlng (UN 2990) Aircraft hydraulic power unit fuel tank (containing a mixture of anhydrous hydrazlne and methyl hydrazine) (M86 fuel) Aircraft survival kits, see Life-savin~ appliances, self·inflatlng (UN 2990l or Life-sav ng appliances, not self·inflating (UN 3072 Air, refrigerated liquid Alcoholates solution, n.o.s. * in alcohol Alcohol, denatured, see Alcohols, flamlllable, toxic, * * n.o.s. (UN 1986) or Alcohols, n.o.s. (UN 1987) Alcoholic beverages containing 70% or less but more than 24% of alcohol by volume. in receptacles. each having capacities of more than 5 Litres . ..., Alcoholic beverages containing more than 70% alcohol by volume Alcoholic beverages, containing 24% or less alcohol by volume Alcoholic beverages, containing 70% or less alcohol by volume, in receptacles, each having capacities of 5 Litres or less AI,.ohol, industrial, see Alcohols, flammable, toxic, * n.o.S. (UN 1966)Dr Alcohols, n.o.s. * (UN 1987) Alcohols, n.o.s. * - - - Y305 Y309 Y305 - - Flamm. liquid Y305 Y309 Alcohols, flammable, toxic, n.o.s. * Flamm. liquid & Toxic - Y305 Y309 i Aldehyde, see Acetaldehyde (UN 1089) ! i I i Passenger and Carno Aircraft LtdatV Pkg Max Net Pkr4. Inst Qly/Pkg Inst Max Net QlylPkg G Ii - - I J Forbidden I - - Forbidden - - 917 25 kg - - Forbidden - 917 25 kg - - 200 75 kg Carg( Aircr,aft ( Pkg M lost Q K Forbidd 135 7 917 1 135 7 917 1 200 1 144 50th EDIT!< FOR EXPLANATION OF THE ABBREVIATioNS AND REFERENCE MARK#

Page 19/A.."'(.1l4 """ ! 1'"­41'IV Page 1 Information Center Comments/Questions To ensure a prompt response to your request, please fill in all of the following form fields (required fields are indicated by an *). For text only browsers email yourcomment(s}/question(s)tophmsa.hm-infocenter@dot.go (please include your telephone number in your email). Question Category: * Please Enter Your Question/Comment: FAA inspector has been requiring us to clasify small quantity alcoholic beverage packages sent to by FeDex aircraft, and containing less than 70% alcohol by volume in bottles not exceeding 1 liter each as DANGEROUS GOOD. He insist that any rum sample containing more than 24% alcohol by volume is dangerous good ~d is ~ubjected to the same 'lations required for alcoholic beverages containing more than 70% alcohol by volume. We need comment because he is to fine us if IRoberto Pantoja . .. __ ---­ J Contact Information: Name:* Organization: \Oestileria Serralles, Inc. j Street Address: 1151 Avenida Principal-Central Mercedita . .J City: IMercedita, P.R. . ._..__ ._J State: 1 ~l --.---~-.--.--- Country (International Only): ~uerto Rico, USA . ~ Zip Code: 100715-.1~~_. ;:::;:;::;:~========-==; .. .. 1 ___ ___ E-mail Address:*lroberto·eantoja@donq.com "._.. J Telephone Number:* 1(787)840-1000 Ext. 221 Fax Number: 1(787)840-1155,___ -Careers I Contact Us I No Fear I Privacy Policy I FOIA I Accessibility I FAQs I Web Policies I Site Map I Download Acrobat#

Page 20Roberto Pantoja From: victoria.lehman@dot.gov Sent: Thursday, January 07,20103:14 PM To: Roberto Pantoja Subject: Re DOT Hazmat Center Inquiry Dear Roberto Pantoja, We have received your inquiry about the hazardous materials regulations (HMR) (49 CFR Parts 171-180). The HMR prescribes the requirements of the Department of Transportation governing the offering and transportation of hazardous materials in interstate, intrastate, and foreign commerce by rail car, aircraft, motor vehicle, and vessel. While we cannot provide an exhaustive list of each applicable requirement, we suggest you review section(s) 173.150(d) (2) for additional information. The hazardous materials regulations are available a'r the following URL: http://hazmat.dot.gov/regs/rules.htm If you require additional assistance, you may contact the Hazardous Materials Information Center, which is staffed with regulatory specialists who can quickly answer your questions by phone, Monday through Friday, 9 AM - 5 PM EST at +1(202) 366-4488. Sincerely, Victoria, Hazardous Materials Specialist An e-mail response from this office is considered informal guidance. Formal guidance may Lbe~ r~este~a~o;~~~:t 4c:;~ 1:.t"!~j:t~~~~:;~(,t.t" gO~" ht~ (~ :> ~ ~ v' ~~f, ~ ~ du) ~ \t?~GIA. ;A.~r: At:. If Sr. Roberto Pantoja, /;J.~ lite ~ t~~ ~~r- Hemos recibido su pedido de informaci6n a cerca de las reglas y disposiciones federales para materiales peligrosos (49 CFR) C6digo Federal de Regulaciones Partes 171-180). Estas reglas 0 disposiciones se pueden encontrar en la siguiente pagina Web: http://hazmat.dot.gov/regs/rules.htm Como no podemos ofrecerle una lista completa y exhaustiva de cada requisito que pueda ser aplicable a su pedido, le sugerimos que revise las secciones [173.150 (d) (2)] donde podra encontrar informaci6n adicional. Si requiere aun mayor asistencia a su pedido, puede comunicarse al Centro de Informaci6n de Materiales Peligrosos, e1 que esta atendido por especialistas quienes podran contestar oportunamente su pedido por telefono, de lunes a viernes de 9:00 AM a 5:00 PM -hora del Este- al numero +1(202) 366-4488. Agradecemos su atenci6n, Victoria, Especialista en Materiales Peligrosos 1#

Page 21DerKinderen. Dirk (PHMSA) From: Ledina.Gianfrate@faa.gov Sent: Wednesday, March 03, 2010 3:18 PM To: Betts, Charles (PHMSA) Cc: Dirk.DerKinderen@dot.govJanetMcLaughlin/AWAIFAA Subject: Alcoholic beverage exception letter. Charles, Janet and I are ok with the interp letter on the alcoholic beverages. Sorry it took so long to be finalized. Thanks Ledina Ledina Gianfrate International and Outreach Division Office of Hazardous Materials Federal Aviation Administration T -202.385.4921 Email - Ledina.Gianfrate@faa.gov 1#