PHMSA Makes 'Hazmat Reverse Logistics' Final Rule Public

The Pipeline and Hazardous Materials Safety Administration on March 25 made public its final rule intended to clarify, streamline and allow flexible regulatory requirements for return of hazardous materials from retailers back to manufacturers, suppliers and distribution facilities.

The so-called hazmat reverse logistics rule applies primarily to all shippers and carriers of hazardous materials who are involved in reverse logistics movements.

But it also is intended to address “the unique issues encountered by this distinct and limited segment of the supply chain.”

The agency has not yet announced the rule’s effective date but said its key affected industries include specialized freight trucking, general freight trucking, electronics and home furnishing retail, and health and personal care stores.

In its 61-page announcement to be posted soon in the Federal Register, PHMSA said it also has revised its definition of reverse logistics, calling it “the process of offering for transport or transporting by motor vehicle goods from a retail store for return to its manufacturer, supplier or distribution facility for the purpose of capturing value, recall, replacement, recycling or similar reason.”



The agency said the rule also is intended to specifically address such issues as the lack of knowledge regarding the risks of transporting certain products, the lack of hazmat training by employees at retail stores and the difficulty in applying hazmat regulations to reverse logistics shipments.

“Specifically, we are seeking to ensure retail employers properly identify hazardous materials in the reverse logistics chain and ensure that their employees have clear instructions to safely offer such shipments,” PHMSA said.

Individual consumers are not considered hazmat employees and therefore would not be directly affected by the new rule’s requirements, the agency said.

The agency’s Aug. 11, 2014, proposed rule said it would offer an exception from existing regulations for certain reverse logistics shipments by highway that would create “opportunities for reduced compliance costs among hazmat shippers and carriers, without any decrease in safety.”

“PHMSA really listened to our comments,” said Boyd Stephenson, vice president of international supply chain operations for American Trucking Associations. “We were really happy to see them reduce some of the hazard classes allowed, and about some of the marking requirements and some of the changed definitions.”

Stephenson said the proposed rule would have permitted returns to be sent back using the original packaging.

“That doesn’t take into consideration that someone may have taken a box cutter to it,” Stephenson said. “We suggested that packaging should be of a similar strength and integrity to the original packaging — and they adopted that.”