{"operation":"document","citation":"21-0062","title":"Institute of Makers of Explosives — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2022-03-09","effective_on":null,"summary":"21-0062 response to Institute of Makers of Explosives concerning 171.12, 171.22, 171.23, 173.56.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-21-0062.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-21-0062.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-21-0062","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/hazmat/interpretations/76376/210062.pdf","body":"<<<PAGE 1>>>\n\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\nMarch 9, 2022\nSusan JP Flanagan\nInstitute of Makers of Explosives\n1212 New York Avenue, NW, Suite 650\nWashington, DC 20005\nReference No. 21-0062\nDear Ms. Flanagan:\nThis letter is in response to your June 7, 2021, email requesting clarification of the Hazardous\nMaterials Regulations (HMR; 49 CFR Parts 171-180) applicable to explosives classification\n(EX) approvals. Specifically, you ask for clarification on the impact of changes in corporate legal\nstructure on the status of existing EX approvals and ask for clarification on the reciprocity of\ncompetent authority approvals authorized in the U.S. and Canada. You reference a Pipeline and\nHazardous Materials Safety Administration (PHMSA) guidance document titled, EXPLOSIVES\nCLASSIFICATION (EX) APPROVALS (Company Name Changes, Mergers, Acquisitions, and\nChanges in Legal Structure), and provide two scenarios regarding: (1) the transportation of\nforeign-approved explosives through the U.S.; and (2) the transferability of a PHMSA-issued EX\napproval issued to a domestic company to a Canadian facility owned and operated by the same\ncompany.\nFor each scenario we have paraphrased and answered your questions as follows:\nScenario #1: Explosives products are manufactured in Canada and are authorized by the\nCanadian competent authority.\nQ1. You ask whether these products may be transported through the U.S. to a destination\noutside of the U.S. without an EX approval.\nA1. The answer is no. As specified in § 171.12(a), a hazardous material transported from\nCanada to the United States, from the United States to Canada, or transiting the United\nStates to Canada or a foreign destination may be offered for transportation or transported\nby motor carrier and rail in accordance with the Transport Canada TDG Regulations as\nauthorized in § 171.22, provided the requirements in §§ 171.22 and 171.23, as applicable,\nare met. Section 171.23(b)(4) specifically requires that, prior to being transported within\n\n<<<PAGE 2>>>\n\nthe United States, Class 1 (explosive) materials must be approved by the Associate\nAdministrator in accordance with § 173.56.\nQ2. You ask whether these products may be transported into the U.S. to a distribution center\nfor further distribution outside of the U.S. without an EX approval.\nA2. The answer is no. See answer A1.\nQ3. You ask whether these products may be transported into the U.S. for use within the U.S.\nwithout an EX approval.\nA3. The answer is no. See answer A1.\nScenario #2: A U.S.-based manufacturer is contemplating manufacturing products at a company-\nowned facility in Canada. The products have received EX approvals from PHMSA for domestic\nmanufacture and transportation. The products to be made in Canada would be:\n• manufactured to the same specifications as the EX-approved products;\n• manufactured using equipment comparable to that used to make the EX-approved\nproducts;\n• manufactured under the direction and supervision of the U.S. manufacturer; and\n• shipped to the U.S. manufacturer for distribution within the U.S. as well as export to\nother countries.\nQ4. You ask whether the existing EX approvals apply, or would separate EX approvals be\nrequired for the products intended to be made in Canada.\nA4. The answer is no, the existing EX approvals would not apply, Specifically, separate EX\napprovals are required. All manufacturing locations outside of the U.S. are required to\napply for their own EX approval.\n\n<<<PAGE 3>>>\n\nFurthermore, on October 8, 2019, PHMSA published a notice and request for\ncomment [84 FR 53822] titled “Hazardous Materials: Clarification of Process to\nReissue Explosives Classification Approvals.” While the policies in the table of the\nguidance document, EXPLOSIVES CLASSIFICATION (EX) APPROVALS (Company\nName Changes, Mergers, Acquisitions, and Changes in Legal Structure), remain\nunchanged, the notice is part of PHMSA’s efforts to update the guidance document\nwhile addressing stakeholder comments.\nI hope this information is helpful. Please contact us if we can be of further assistance.\nSincerely,\nDirk Der Kinderen\nChief, Standards Development Branch\nStandards and Rulemaking Division\n\n<<<PAGE 4>>>\n\nCardez\n21-0062\n_____________________________________________________________________________________________\nThe safety and security institute of the commercial explosives industry since 1913\nJune 7, 2021\nMr. William Schoonover\nAssociate Administrator, Hazardous Materials Safety\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\nEast Building, 2nd Floor\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nRe: Explosives Classification (EX) Approvals (Company Name Changes, Mergers,\nAcquisitions, and Changes in Legal Structure)\nDear Mr. Schoonover:\nThis letter concerns the current status and interpretation of the above-captioned document.\nIME is occasionally contacted by both member and non-member companies regarding the impact\nof changes in corporate legal structure on the status of existing EX Classification Approvals. We\nalso receive inquiries regarding reciprocity of approvals/authorizations between the US and\nCanada. Typically, we refer the companies to the table PHMSA has published at,\nhttps://www.phmsa.dot.gov/registration/faq-mergers-acquisitions-and-legal-status-changes-pdf.\nAs an initial matter, it appears that this information was originally published on April 2, 2015 and\nwe would like to confirm that the policies reflected in the table remain unchanged. If PHMSA has\nupdated the table or modified the underlying policies can you direct us to that information?\nIn addition, we understand that there is some reciprocity between the US and Canada regarding\nexplosives approvals/authorizations. Accordingly, we have the following questions regarding\ninterpretation/application of the information in the table as it applies to that reciprocity:\n1. Explosives products are manufactured in Canada and are authorized by that country’s\nCompetent Authority. Can these products be:\na. Transported through the US to a destination outside of the US without an EX\napproval?\nb. Transported into the US to a distribution center for further distribution outside of\nthe US without an EX approval?\nc. Transported into the US for use within the US without an EX approval?\n2. A US-based manufacturer is contemplating manufacturing products at a company-owned\nfacility in Canada. The products have received EX approvals from PHMSA. The\nproducts would be:\na. manufactured to the same specifications as the EX approved products;\n1212 New York Avenue, NW, Suite 650, Washington, DC 20005, USA, (202) 429-9280, FAX (202) 293-2420\n\n<<<PAGE 5>>>\n\nb. manufactured using equipment comparable to that used to make the EX approved\nproducts;\nc. manufactured under the direction and supervision of the US manufacturer; and\nd. shipped to the US manufacturer for distribution within the US as well as export to\nother countries.\nIn this circumstance, would the existing EX approvals apply or would separate EX approvals\nbe required?\nWe appreciate your assistance in addressing these questions. Please contact me if you need\nadditional information.\nBest Regards,\nSusan JP Flanagan\nLegislative & Regulatory Counsel\nInstitute of Makers of Explosives\n202.674.7123\nsjflanagan@ime.org\n1212 New York Avenue, NW, Suite 650, Washington, DC 20005, USA, (202) 429-9280, FAX (202) 293-2420\n\n<<<PAGE 6>>>\n\nCardez\n21-0062\nFrom: Foster, Glenn (PHMSA)\nTo: Cc: Date: Dodd, Alice (PHMSA); Hillman, Kenetha CTR (PHMSA)\nBurger, Donald (PHMSA); DerKinderen, Dirk (PHMSA); Nickels, Matthew (PHMSA); Pfund, Duane (PHMSA)\nSubject: FW: FINAL_EX Numbers_Canada 07JUN21.docx\nMonday, June 7, 2021 11:47:01 AM\nAttachments: FINAL_EX Numbers_Canada 07JUN21.docx\nAlice and Kenetha,\nPlease log in the attached request for a Letter of Interpretation and assign it to the next Specialist in\nthe rotation.\nThanks,\nGlenn\nFrom: Pfund, Duane (PHMSA)\nSent: Monday, June 7, 2021 11:30 AM\nTo: Foster, Glenn (PHMSA) <Glenn.Foster@dot.gov>\nCc: DerKinderen, Dirk (PHMSA) <Dirk.DerKinderen@dot.gov>; Nickels, Matthew (PHMSA)\n<Matthew.Nickels@dot.gov>; Constantino, Lindsey (PHMSA) <l.constantino@dot.gov>; Wiener,\nAaron (PHMSA) <Aaron.Wiener@dot.gov>; Webb, Steven (PHMSA) <steven.webb@dot.gov>; Leary,\nKevin (PHMSA) <Kevin.Leary@dot.gov>\nSubject: FW: FINAL_EX Numbers_Canada 07JUN21.docx\nGlenn – can you please log this into the interpretation system? Correct me if that’s not the\nappropriate process.\nFrom: Schoonover, William (PHMSA)\nSent: Monday, June 7, 2021 11:18 AM\nTo: Pfund, Duane (PHMSA) <Duane.Pfund@dot.gov>; Quade, William (PHMSA)\n<william.quade@dot.gov>\nCc: Milline, Olivia (PHMSA) <olivia.milline@dot.gov>\nSubject: FW: FINAL_EX Numbers_Canada 07JUN21.docx\nPlease prepare a response. Thanks\nWilliam S. Schoonover\nAssociate Administrator, Office of Hazardous Materials Safety\nUSDOT, PHMSA\n1200 New Jersey Ave, SE, Washington, DC 20590\nOffice: 202.366.0656 ◊ Mobile: 202.495.9510\nFrom: Susan Flanagan [mailto:sjflanagan@ime.org]\nSent: Monday, June 07, 2021 10:37 AM\n\n<<<PAGE 7>>>\n\nTo: Schoonover, William (PHMSA) <william.schoonover@dot.gov>\nSubject: FINAL_EX Numbers_Canada 07JUN21.docx\nMr. Schoonover,\nAttached is a request for interpretation regarding reciprocity of approvals/authorizations\nbetween the US and Canada.\nPlease let me know if you’d like additional information or if you have any questions.\nI hope all is well!\nRegards,\nSusan\nIME’s “Explosives: The Power Tool” video is must-see viewing!\nInterested in learning best practices? IME’s SLP-based eLearning program is now available!\nSusan JP Flanagan | Legislative & Regulatory Counsel | Institute of Makers of Explosives\n1212 New York AVE NW, Ste 650 Washington, DC 20005| ( Direct: (202)266-4315 Mobile: (202) 674-7123 |\n* sjflanagan@ime.org","truncated":false,"body_characters":9885}