Swatch Group — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1 200 New Jersey Ave, SE Washington, D.C. 20590 FEB 23 2011 Mr. Thomas Affolter Swatch Group Bozingenstrasse 9 CH-2502 Biel Ref. No.: 10-0080 Dear Mr. Affolter: This is in response to your letter dated March 18, 2010 concerning the aircraft quantity limitations ofthe Hazardous Material Regulations (HMR; 49 CFR Parts 171-180) applicable to small primary (non-rechargeable) lithium batteries contained in equipment. In your letter, you made several references to a document produced by the Pipeline and Hazardous Materials Safety Administration titled "Shipping Batteries Safely by Air; What you need to know" (the attached guide). Your questions have been paraphrased and answered as follows: Q1. You referenced an excerpt from page 11 ofthe guide that reads "Primary (non-rechargeable) lithium cells and batteries are forbidden for transport aboard passenger carrying aircraft." May primary lithium cells and batteries that conform to § 172.1 02{c), Special Provision 188 be transported as cargo aboard passenger carrying aircraft without additional markings or labels provided the packages contain less than 5 kg net weight of lithium batteries? A1. The statement on page 11 ofthe guide refers to primary lithium cells and batteries packaged without equipment as illustrated on page 10 ofthe guide. Primary lithium cells and batteries are forbidden for transport aboard passenger carrying aircraft regardless of quantity. Primary lithium cells or batteries packed with or contained in equipment are permitted for transport aboard a passenger carrying aircraft provided the equipment and the cell{s) or battery{ies) conform to the following provisions and the package contains no more than the number of lithium cells or batteries necessary to power the intended piece of equipment: 1. 2. 3. The lithium content ofeach cell, when fully charged, is not more than 5 grams. The aggregate lithium content ofthe anode ofeach battery, when fully charged, is not more than 25 grams. The net weight oflithium batteries does not exceed 5 kg (11 lbs). Q2. An excerpt from page 23 of the guide reads "Batteries packed in equipment may not exceed certain weight limits: Lithium batteries in equipment: 5 kg net (passenger air/rail), 35 kg net#

Page 2(cargo air)." Do the HMR impose aircraft quantity limits for lithium cells or batteries contained in equipment prepared for transport in accordance with the applicable provisionS of Special Provision 188? A2. The quantity limits specified on page 23 of the guide refer to packages containing lithium cells and batteries that are not prepared in accordance with the applicable provisions of Special Provision 188. Quantity and weight limits for packages prepared in accordance with Special Provision 188 are imposed as a condition of the exception. For example, packages containing primary lithium batteries contained in equipment are excepted from certain marking requirements provided the package contains 5 kg (11 lb) net weight or less of lithium cells or batteries and the package contains no more than the number of lithium cells or batteries necessary to power the piece of equipment. I hope this answers your inquiry. If you have further questions, please do not hesitate to contact this office. Sincerely, gV'~~ BenSupko Acting Chief, Standards Development Branch Standards and Rulemaking Division Enclosure#

Page 3Lea.ru •• c 0 J SWATCH GROUP 43 173,19-:;, 'S>172..· 1(J2 sf/~8 L.i~ H-¥f! i3a Hef'"tes Office of Hazardous Materials Standards 10 . 008 0 Pipeline and Hazardous Materials Safety Administration Attn: PHH10 U.S. Department of Transportation East Building, 2nd Floor 1200 New Jersey Ave., SE Washington, DC 20590 Bienne, 18th of March 2010 Dear Madam, dear Sir, In accordance with 49 CFR 105.20, we kindly ask for a DOT formal guidance regarding the transport of small lithium cells on their own or contained in equipment (in our case: wrist watches). After consulting the DOT Safe Travel information document "Shipping batteries safely by air" that is available on PHMSA internet site (no date on the document, but the reference PHH50-0107-0109 on its last page), we need the following two clarifications on this document: Question 1. Page 11: "Primary (non-rechargeable) lithium batteries and cells are forbidden for transport aboard passenger carrying aircraft as cargo." From our understanding, this is not completely true because according to Special Provision 188 of CFR 49, 172.02, it is indicated under (a)(2) that: "The provisions of paragraph (a)(1) do not apply to packages that contain 5 kg (11 pounds) net weight or less of primary lithium batteries ..." We understand that "Small lithium cells and batteries" conforming to all provisions of Special Provision 188 can be transported as cargo in passenger carrying aircrafts, provided that the packages contain less than 5 kg net weight of lithium batteries. Furthermore these packages of course do not need the label "PRIMARY LITHIUM BATTERIES-FORBIDDEN FOR TRANSPORT ABOARD PASSENGER AIRCRAFT". Can you please confirm that our understanding is correct? Question 2. Page 23: "Batteries packed in equipment may not exceed certain weight limits: Lithium batteries in equipment: 5kg net (passenger air/rail), 35kg net (cargo air)." From our understanding, these two limits (except for rail) are drawn from the packing instruction PI 970 from lATA 51st edition, 2010, for fully regulated (Section I of PI 970) lithium batteries or cells contained in equipment. However it is not explained in your document that the 35 kg net limit for cargo air is not applicable for excepted lithium batteries, i.e. for batteries shipped in conformity with Section II of PI 970. From our understanding, small "excepted" lithium cells contained in equipment are not forbidden when transported as cargo in passenger aircraft in the US and there is no weight limit in this case or in the case of transport by air cargo for these cells . ..... IIAI I~ I\IIAI\.IA,....~I\.II~I\.I"T"#

Page 4• • c () SWATCH GRDUP Can you please confirm that our understanding is correct? Thank you for your time and consideration. Best regards, ter division of The Swatch Group Management Services Ltd Bozingenstrasse 9 CH - 2502 Biel/Bienne phone: + 41 (0)32 343 88 09 fax: + 41 (0)323439462 thomas.affolter@qm.swatchgroup.com .....1. AI ,"'"", ftliA 1\1 A,....-ftAI""A ...#