PHMSA Clarifies Materials of Trade Exception for Propane Cylinders

The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) recently issued an interpretive letter clarifying how the materials of trade (MOT) exception in 49 CFR §173.6 applies to propane cylinders carried in commercial motor vehicles. The guidance was issued in response to a request from Dead River Company regarding service technicians who transport small propane cylinders in company vehicles while performing appliance service work.

PHMSA explained that when a technician is only conducting appliance service and not delivering or filling propane cylinders, the cylinders may qualify as materials of trade if all §173.6 requirements are met. When the MOT provisions apply, the shipment is eligible for certain regulatory relief, including exemption from shipping paper requirements.

However, PHMSA clarified that the exception does not apply when propane is transported for the purpose of filling or delivering cylinders to customers. In that situation, the propane is being transported in commerce for sale and delivery, meaning the shipment must comply with the full Hazardous Materials Regulations, including shipping paper requirements.

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Copy of the interpretation