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Draft Text for Regulatory Amendment Presentation 2008 COSTHA Annual Forum Presentation Work Group - 2008 COSTHA Annual Forum EPA - April 30, 2007 Semi-annual Regulatory Agenda COSTHA – Reverse Logistics Substances and articles regulated by Title 49 of the Code of Federal regulations (49 CFR) as hazardous materials are distributed from manufacturing facilities to various wholesale and retail outlets for sale to consumers. Many of these products meet the classification criteria of ORM-D and are shipped under the proper shipping name Consumer Commodity. Some of these products exceed the quantities authorized as consumer commodities and are packaged, marked, labeled and transported in accordance with applicable regulations. Some products are distributed as authorized under the terms of a DOT Exemption. Still others, such as equipment powered by internal combustion engines, are not regulated during distribution since they do not contain hazardous material fuels. The regulations provide adequate controls over transportation for the purpose of distribution to the consumer. Undetermined quantities of these products are returned to the vendor through a retail sales agency or instrumentality or directly from a wholesale distribution center. Reasons for return may include, but are not limited to, product obsolescence, malfunction, or damage rendering the product unfit for use. For purposes of this agreement, the return of these products will be referred to as “reverse logistics”. Often the original vendor requires return of the product as a condition of reimbursement to the reverse logistics initiator to maintain the perceived or actual value of the product in the marketplace. The persons engaged in packaging the products for return or offering the shipments in reverse logistics may often be retail store clerks or others not readily identifiable within the definition of a “hazmat employee” as codified with 49 CFR, §171.8 and subject to the training requirements of Part 172, Subpart H. The packagings used for reverse logistics shipments are often not the original packagings as offered by the manufacturer and received by the distributor and may consist of any packaging materials convenient within that facility. Packagings may even include boxes, bags, etc. with advertising logos or markings to indicate contents that are no longer present within such package. Equipment powered by internal combustion engines may have been used by the consumer prior to return and may contain residual hazardous material fuels. Reactive hazardous materials may not be properly segregated within the packaging or within over-packs and cargo transport units. These shipments may be offered as “non-declared” hazardous materials and may be transported by all modes of transportation, including aircraft. In some circumstances the products being returned may meet the definition of a hazardous waste and may be subject to the requirements of Title 40, Code of Federal Regulations. Project Scope The scope of the project, while readily recognizable can not be accurately quantified without input from the regulated industry. The purpose of the partnership is to obtain vital industry input through open and candid disclosure at organized workshops, discussion groups, meetings, or other forums to include PHMSA participation in an environment providing opportunity for developing acceptable and reasonable standards without fear of retribution based on such candid disclosure. The product of the partnership should provide an assessment of the magnitude of the issue, the systems and/or standards that could be implemented to rectify the problem, and the means and materials to control the risks associated with reverse logistics transportation. The means and materials may include printed material, training programs, train-the-trainer out-reach activities, or other media resources to enhance the level of awareness and provide industry with additional tools to improve transportation safety. In addition to enhancing safety, industry participants in this project may benefit from limiting product liability as a result of exposure on the part of third party reverse logistics providers. Industry consensus standards developed as a result of the project may provide guidelines to be considered by the entire distribution logistics function.
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