{"operation":"document","citation":"22-0122","title":"David Fletcher — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2023-02-02","effective_on":null,"summary":"22-0122 concerning 171.8.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-22-0122.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-22-0122.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-22-0122","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/hazmat/interpretations/77346/220122.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nFebruary 2, 2023\nDavid Fletcher\n317 Ironwood Circle\nGallatin, TN 37066\nReference No. 22-0122\nDear Mr. Fletcher:\nThis letter is in response to your July 31, 2022, letter requesting clarification of the Hazardous\nMaterials Regulations (HMR; 49 CFR Parts 171-180) and the Hazardous Materials Registration\nProgram as specified in 49 CFR Part 107, Subpart G. In your letter, you state that your company\nis a “licensed property broker” that facilitates transportation between shippers and motor carriers\nand relays basic shipping information to carriers—but never takes physical possession of\nshipments. Specifically, you ask whether a “licensed property broker” is subject to the HMR and\nthe hazardous materials registration requirements in 49 CFR Part 107, Subpart G.\nA licensed property broker does not need to register, provided no function of an offeror or carrier\nis performed. Functions of an offeror include—but are not limited to—the following:\n(1) selection of the packaging for a hazardous material; (2) physical transfer of a hazardous\nmaterials to a carrier; (3) classifying the hazardous materials; (4) preparing a shipping paper;\n(5) reviewing shipping papers to verify compliance with the HMR or international equivalents;\n(6) signing hazardous materials certifications on shipping papers; (7) placing hazardous materials\nmarkings or placards on vehicles or packages; and (8) providing placards to a carrier. In addition,\na carrier is defined in § 171.8 to mean a person who transports passengers or property in\ncommerce by rail car, aircraft, motor vehicle, or vessel.\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 2>>>\n\n07/31/2022\nMr. William S \"Bill\" Schoonover, Associate Administrator\nHazardous Materials Safety & Special Program Administration\n400 7th Street S.W\nWashington, D.C 20590-0001\nDear Mr. Schoonover,\nI am writing to request an opinion clarifying the role of ICC Licensed Property\nBrokers in relations to the Hazardous Material Transportation Uniform Safety Act of\n1990. However, I understand that new laws have been implemented since 1990.\nSpecifically, in 2022, are ICC Licensed Property Brokers required to register in\ncompliance with the Act?\nI am not sure which Motor Carrier Acts of 2004 and 2022 or 2 defined Property\nBrokers in such a way as to limit their liability for and in transportation, whether surface\nair or other \"mode.\" Requiring ICC Property Brokers to register for your Act enabling\nlegislation will require Property Brokers to become \"liable\" when they are specifically\nlimited in their transportation liability under ICC rules. Property Brokers perform the\nsame role for freight that a travel agent fills for passengers in air transportation.\nWe were informed that we are required to register as \"one who causes and offers\nfor shipment\" hazardous materials are defined primarily in portion E of your circular\nregarding registration.\nFreight Professor Brokers Group is a licensed \"PROPERTY BROKER\" MC\n920325, defined by USC 10292 & 1045.2. In the enabling legislation, Property Brokers\nare not considered modes of transportation and \"do not take possession of freight\" like\nfreight forwarders or truck brokers. Property Brokers are facilitators (travel agents for\nfreight) and are not considered \"shippers\" for purposes of the Motor Carrier Acts.\nProperty Brokers are prohibited from executing a Bill of Lading, publishing a Tariff, or\nquoting a rate. Most brokers never see the freight they caused to be hauled, the drivers,\nor the delivery of a load. They are not liable for the safety inspection, logbooks, or any\nform of State compliance with the same. This does not mean that some who handle\nHazardous Materials are licensed Property Brokers but that the relationship is incidental\nto other transportation goals that shippers may have. Our brokerage causes properly\nauthorized and insured ICC carriers to haul shipper's freight. Requiring Property Brokers\nto Haz Mat register is a duplicate activity of the actual players. They are involved in\ngiving and taking possession of cargo by the trustworthy Carrier Company (mode of\ntransportation) and the shipper. If Property Brokers must register, a significant\ninsurance burden will fall on them suddenly, as most brokers do not have cargo or\nliability insurance.\n\n<<<PAGE 3>>>\n\nPage 2\nPlease clarify specifically, are Property Brokers required to register under the\nHazardous Material Act?\nAre Property Brokers liable for transporting Hazardous Materials when Brokers are\nspecifically \"not liable for loss or claims\" in transporting other \"freight of all kinds\"?\nProperty Brokers are not required to ensure the load, the public, or the cargo. There is\ninsurance for errors and omissions for Brokers, but it is not an ICC requirement.\nYour specific clarification should include if we are required to put out DOT Haz Mat\n# and \"carrier\" on each bill of lading that our \"shippers\" prepare for freight. We have\ncaused to move. Even though, like a travel agent, we are not liable either from public\nliability, personal liability, or a cargo damage claim.\nOne of the main reasons for requesting this clarification is that FPBG is the Property\nBroker for the CARRIER INFORMATION EXCHANGE School of Brokering. This school\ninstructs beginning brokers in ICC and DOT compliance, among other topics. Obtaining\na Haz Mat # would be a significant element of any observation.\nIf you render an opinion, may I have your permission to make your idea part of my\nbook \"FREIGHT BROKERS TRANSPORTATION MANUAL\" as well? Thank you for\nresolving what is a significant issue for Property Brokers.\nSincerely,\nDavid Fletcher,\n(615) 218-6837\ndavid@freightbrokersuniv.com","truncated":false,"body_characters":5946}