US Pipeline of Hazardous Materials Safety Administration (PHMSA) has kicked off a possible rulemaking on reverse logistics. Under the current HMR, consumer products that are no longer suitable for retail sale are still considered fully regulated. This presents a problem to retail outlets in that many may not have the necessary training or resources to handle fully regulated hazardous materials. As a result, these reverse movements are often con-compliant with the appropriate hazardous materials regulations. According to the Reverse Logistics Association, the process of reverse logistics represents 3-15% of the Gross Domestic Product, which is estimated between $360 billion and $1.8 trillion. Retail outlets often accept returns of hazardous materials from customers that are ultimately shipped back to distribution centers. In addition, online transactions are causing the quantity of reverse logistics shipments to increase and purchases of hazardous materials online have increased. PHMSA is concerned that customers may often return opened or damaged packages containing hazardous materials without any regard for the HMR. PHMSA is looking to identify ways to potentially reduce the regulatory burden associated with the return of these hazardous materials in the “reverse logistics” supply chain, while at the same time ensuring their safe transportation.
This Advance Notice of Proposed Rulemaking seeks comment on whether additional language is needed to clarify how returns of hazardous materials purchased online should be handled.