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Spray Oct 2014

Steven Charles Hunt President, ShipMate, Inc. from here to there: topics in transportation Reverse Logistics Rule on the Way October 2014 Spray 35 The U.S. Dept. of Transportation’s (DOT) Pipeline & Hazardous Materials Safety Administration (PHMSA) published its Notice of Proposed Rulemaking, HM-253, on Aug. 11, 2014 (79 FR 46748); this will revise the Hazardous Materials Regulations (HMR) for return shipments of certain hazardous materials by motor vehicle. In this important rulemaking, PHMSA will define “reverse logistics” for dangerous goods that are intended to be returned to, or between, a vendor, manufacturer, distributor or other person for the purpose of returning for credit, recalling product, replacement or other reasons. PHMSA is proposing to create a new section within the HMR that will provide an exception for certain hazardous materials that are transported in a manner that meets the definition of “reverse logistics.” PHMSA will clearly identify those hazardous materials that are entitled to the proposed regulatory relief, and will delineate the requirements for packaging, hazard communication, training and segregation applicable to reverse logistics shipments. Comments on the proposed rule must be received by Oct. 10, 2014. Current Regulations Currently, the HMR do not provide any specific exceptions for shipments made in the reverse logistics supply chain. Consequently, all hazardous materials that are being shipped from a retail outlet back to the distribution facility are subject to the same requirements as when they were originally shipped. The retail outlet is responsible for ensuring that the goods are properly marked, labeled, described, packed, packaged, stowed, segregated and declared for transport. PHMSA has cited the key areas of concern associated with reverse logistics shipments including: • Lack of hazardous materials training by the employees at the retail outlet; • Different packaging from the original packaging being used to ship the material; • Lack of knowledge regarding the hazards of the material; • Potential for hazardous materials to be subject to Environmental Protection Agency (EPA) waste manifest rules; • Items that were once classified as consumer commodities that no longer meet that exception; • Undeclared hazardous materials shipped within the stream of commerce; • Properly marked and labeled original packaging being improperly reused to ship returned products that are either not hazardous materials or hazardous materials for which said packaging is not authorized; and • Shipments that are not accompanied by appropriate hazardous communication, such as shipping papers, emergency response numbers, placards, labels, markings and other requirements of the HMR. This has been very problematic for many retailers, as the condition of the containers prior to return is questionable, and the original packaging, marking and labeling is no longer available in most cases. Given the value of the product being returned for credit, and a general lack of knowledge, many of these hazardous materials have been returned improperly. Based on extensive research and enforcement actions by the agency, PHMSA has learned that the current requirements applicable to reverse shipments is misunderstood or overlooked. PHMSA believes that reverse logistics issues associated with these dangerous goods will continue to rise with the increased consumption of consumer products in a growing economy. Based on the many petitions submitted by industry trade groups and several big box retailers, PHMSA believes that it would be beneficial to work with industry to facilitate the movement of hazardous materials in the reverse logistics supply chain. Authorizations Under the proposed regulations, DOT will define “Reverse Logistics” in 49 CFR §171.8 as “…the process of moving goods from their final destination for the purpose of capturing value, recall, replacement, proper disposal or similar reason.”


Spray Oct 2014
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