Item Description Class

Transcription

1 Re: Lightbulbs (Light Bulbs) CCSB Contact: Erin N. Topper Telephone (703) Matthew S. Erim Telephone (703) Ashley L. Gencarelli Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class LAMPS OR LIGHTING GROUP: subject to item Lamps (Lightbulbs), electric, high-intensity discharge (HID), including mercury vapor, metal halide or high-pressure sodium, see Note, item , in boxes Lamps (Lightbulbs), electric, incandescent, NOI; or Photo Flash Lamps (Flashbulbs); see Note, item , in boxes or Packages 256, 257, 1288 or Lamps (Lightbulbs or Tubes), electric, fluorescent, other than neon, see Note, item , in boxes or Packages 256, 257 or NOTE Applies only on the articles named which, when installed in lamps, lighting fixtures or other apparatus, function as sources of light or heat Lamps (Lightbulbs), electric, sealed beam, see Notes, items and , in boxes or Packages 1288, 2097 or NOTE Applies only when glass components are of cast construction Lamps or Lighting Fixtures, see Notes, items , , and , viz.: Lamps, artificial sunlight, heating or therapeutic; Lamps, NOI, also in Packages 794, 817, 1424, 1467, 2204 or 5F; [Other Articles Listed Not Involved.] In boxes or crates, subject to Items 170 and 171 and having a density in pounds per cubic foot of, see Note, item : Sub 1 Less than Sub 2 1 but less than Sub 3 2 but less than Sub 4 4 but less than Sub 5 6 but less than Sub 6 8 but less than Sub 7 10 but less than Sub 8 12 but less than Sub 9 15 but less than Sub but less than Sub or greater National Motor Freight Traffic Association, Inc. Subject 1, Page 1 of 10

2 Present Classification Provisions Concluded Item Description Class NOTE One lamp (bulb) for each socket may be included in same box with lamp or lighting fixture NOTE Not Involved NOTE Not Involved NOTE Not Involved NOTE Not Involved NOTE Not Involved. WASTE MATERIALS GROUP: subject to item Waste, hazardous, other than radioactive, see Note, item ; or Regulated Medical Waste (RMW), see Note, item NOTE Applies on all articles, materials or substances, other than radioactive, subject to the laws and regulations governing the transportation of hazardous waste for disposal, storage or reclamation, including articles which because of residues, contamination or the combining of materials are subject to such laws or regulations. All hazardous waste subject to this item must be tendered in compliance with applicable laws and regulations NOTE Not Involved. Package 256 In singlewall corrugated fiberboard boxes meeting the requirements of Item 222, Secs. 2 and 3 for boxes testing not less than 125 pounds. The maximum dimensions must not exceed 60 united inches, except that top and bottom flaps may come within five inches of meeting, and boxes must be firmly glued not less than 50% of area of contact. Gross weight not to exceed 25 pounds. Proposed Classification Provisions Item Description Class LAMPS OR LIGHTING GROUP: subject to item Lamps (Lightbulbs), electric, high-intensity discharge (HID), including mercury vapor, metal halide or high-pressure sodium, etc.. Cancel; see item A-NEW Lamps (Lightbulbs), electric, incandescent, NOI; or Photo Flash Lamps (Flashbulbs); etc... Cancel; see item A-NEW Lamps (Lightbulbs or Tubes), electric, fluorescent, other than neon, etc... Cancel; see item A-NEW NOTE Cancel; see item B-NEW Lamps (Lightbulbs), electric, sealed beam, etc... Cancel; see item A-NEW Subject 1, Page 2 of National Motor Freight Traffic Association, Inc.

3 Proposed Classification Provisions Continued Item Description Class LAMPS OR LIGHTING GROUP: subject to item NOTE Cancel; no further application Lamps or Lighting Fixtures, see Notes, items , , and , viz.: Lamps, artificial sunlight, heating or therapeutic; Lamps, NOI, also in Packages 794, 817, 1424, 1467, 2204 or 5F; [Other Articles Listed No Change.] In boxes or crates, subject to Items 170 and 171 and having a density in pounds per cubic foot of, see Note, item : Sub 1 Less than Sub 2 1 but less than Sub 3 2 but less than Sub 4 4 but less than Sub 5 6 but less than Sub 6 8 but less than Sub 7 10 but less than Sub 8 12 but less than Sub 9 15 but less than Sub but less than Sub or greater NOTE One lightbulb (light bulb) for each socket may be included in same box with lamp or lighting fixture NOTE No Change NOTE No Change NOTE No Change NOTE No Change NOTE No Change. A-NEW Lightbulbs (Light Bulbs), see Notes, items B-NEW and C-NEW, in boxes or Packages 257, 1161, 1288 or 2097, subject to Item 170 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 6 but less than Sub 3 8 or greater B-NEW NOTE Applies only on the articles named that, when installed in lamps, lighting fixtures or other apparatus, function as sources of light or heat. C-NEW NOTE Does not apply on spent or used lightbulbs (light bulbs) that are regulated as hazardous waste. For applicable provisions, see item WASTE MATERIALS GROUP: subject to item Waste, hazardous, other than radioactive, see Note, item ; or Regulated Medical Waste (RMW), see Note, item No Change NOTE No Change NOTE No Change National Motor Freight Traffic Association, Inc. Subject 1, Page 3 of 10

4 Proposed Classification Provisions Concluded Cancel; no further application. Analysis Package 256 In the interest of clarity, the products involved in this proposal are referred to as light bulbs. Research Project 1318 and Background of Proposal Docket , Subject 2 (September 2017) was a proposal to amend the current class 100 for fluorescent light bulbs, as named in item , to class 175, as well as to establish a Note to clarify that the item also applies on compact fluorescent lamps (CFLs). However, based on statements submitted by the industry and discussion during the CCSB s public meeting on September 12, 2017, the proposal was withdrawn and Research Project 1318 was established on fluorescent as well as LED light bulbs. During the course of research, the project was expanded to investigate the transportation characteristics of all light bulbs. As shown in the present provisions herein, items , , and name different types of light bulbs. Item is the general catch-all item for lamps or lighting fixtures not more specifically described in the NMFC. It is the CCSB s opinion that LED light bulbs are currently classified in item , as they are not more specifically named elsewhere. Information developed through the project has revealed a number of interpretation issues in connection with the involved provisions. Carriers may have difficulty identifying the type of light bulb being shipped. A review of the data of record also shows that many shipments have been the subject of misclassification due to the different NMFC items that apply on light bulbs. Some shippers use the same NMFC item number or generic product description (e.g. light bulbs) on their bills of lading and other shipping papers, regardless of the type of light bulbs being shipped. In addition, different types of light bulbs are frequently shipped together on a single lift truck skid or pallet, making it difficult to determine the correct item that applies. Furthermore, information provided by the industry indicates that waste light bulbs, i.e. spent light bulbs, may be packaged differently than new light bulbs, often without interior packaging materials, and as a result their densities may differ. Waste light bulbs may also be subject to federal, state or local hazardous materials regulations 1 and, as such, should be classified in item , Waste, hazardous, other than radioactive, which according to Note, item , Applies on all articles, materials or substances, other than radioactive, 1 US Department of Transportation (49 CFR (c)(3)), which discusses shipping containers and protective measures for sealing and transporting lamps [light bulbs]. In addition, the EPA hazardous waste regulations, found at 40 CFR parts for Hazardous Wastes, and 40 CFR Part 273 Subpart D - Standards for Universal Waste Transporters cover lamps [light bulbs] that are regulated as Universal Wastes also specify proper packaging, spill mitigation, leak controls and the associated paperwork (either the Uniform Hazardous Waste Manifest or the Bill of Lading) to accompany shipments of waste lamps [light bulbs]. All states have their own version of these requirements. (ALMR statement received March 31, 2018) Subject 1, Page 4 of National Motor Freight Traffic Association, Inc.

5 subject to the laws and regulations governing the transportation of hazardous waste for disposal, storage or reclamation, including articles which because of residues, contamination or the combining of materials are subject to such laws or regulations. All hazardous waste subject to this item must be tendered in compliance with applicable laws and regulations. If applicable, this item takes precedence over other provisions in the NMFC. Item has a 0 class, which, as defined in NMFC Item (Rule) 420, Sec. 3, means that such articles are subject to the rates and regulations of individual carriers. History of Provisions Item was established at the current class 175 as a result of action taken on Docket , Subject 2 (November 2006) and first appeared in Supplement 1 to NMF 100- AG, effective January 27, The provisions have remained unchanged to the present. The basic provisions for incandescent light bulbs, as named in item , were adopted from the rails and first appeared in LTL-1, effective April 1, As a result of action taken on Docket 76, Subject 77 (October 1956), the provisions were amended to include photo flash bulbs and to adjust the class to the current 150. The changes first appeared in Supplement 14 to NMFC A-3, effective June 6, The addition of NOI to the description was a result of action taken on Docket 92, Subject 4 (January 1960) and first appeared in NMFC A-5, effective September 22, Other than packaging and minor descriptive amendments, the provisions have remained substantially unchanged to the present. Provisions for fluorescent light bulbs, as described in item , first appeared in Supplement 12 to NMFC No. 4, effective October 10, The current class 100 was established as a result of action taken on Special Docket No. 1 (issued July 20, 1949) and first appeared in NMFC A-1, effective July 10, With the exception of packaging and minor descriptive amendments, the provisions have remained substantially unchanged to the present. The provisions of item , including Note, item , were established as a result of action taken on Docket 115, Subject 28 (September 1964) for sealed beam light bulbs, other than automobile. The provisions first appeared in Supplement 4 to NMFC A-8, effective July 13, As a result of action taken on Docket , Subject 6 (June 2009), the provisions of item were amended to remove the modifier other than automobile sealed beam [light bulbs] and to include Packages 1288, 2097 and 2191 as alternate forms of packaging, with no class change. The changes first appeared in Supplement 3 to NMF 100-AI, effective August 22, The current class 125 was established as a result of action taken on Docket , Subject 12 (January 2017). That change first appeared in Supplement 1 to NMF 100- AQ, effective April 15, The provisions have remained unchanged to the present National Motor Freight Traffic Association, Inc. Subject 1, Page 5 of 10

6 About Light Bulbs Light bulbs, when inserted into an electric lamp or lighting fixture socket, are sources of light or heat. There are a variety of light bulbs available today. Examples of the involved light bulbs are shown below. As previously discussed, light bulbs may be shipped new or used (spent). Spent light bulbs are typically transported for recycling, and some are regulated as hazardous waste. The record includes information on both new and spent light bulbs. Incandescent Halogen Straight Fluorescent Tube LED Edison Circular Fluorescent Tube HID Sealed Beam CFL Subject 1, Page 6 of National Motor Freight Traffic Association, Inc.

7 Transportation Characteristics Density The information of record for light bulbs includes 19,989 density observations submitted by shippers and carriers, collected during CCSB dock surveys and obtained from the CCSB s Density Study 2. The densities range from 0.38 to pcf, with an overall average of 7.21 pcf. When the data is evaluated based on the proposed density breaks at 6 and 8 pcf, to reflect the distribution of the data of record, the ranges and averages in the table below emerge. Density Group (pcf) Density Range (pcf) Average Density (pcf) Less than but less than or greater Handling Light bulbs are generally tendered in boxes, which may or may not be secured on lift truck skids or pallets. Due to the inherent fragility of these products, extra care and attention in handling is necessary if damage is to be avoided. A shipper, referring to fluorescent light bulbs, stated that handling units are consistently labelled with precautionary markings or shipper instructions, such as Fragile and Handle With Care. In this same regard, another shipper stated that the product is fragile and needs to be handled with care. Other types of light bulbs have the same or similar markings or instructions. For instance, the shipment of LED light bulbs in the photo on the right, which was observed on a CCSB dock survey, was marked Fragile, Handle with Care and Keep Dry, and had directional arrows as well. Even spent light bulbs destined for recycling have been observed by CCSB members and staff with these markings and instructions, such as in the photo on the left. 2 The Density Study is part of an ongoing effort by the CCSB to collect information on actual shipments; it is not tied to any particular research project, nor does it target any particular product category. Carriers that choose to participate in the study periodically submit shipment data captured through their respective freight auditing programs. The data is identified by NMFC item, and only verifiable data points, which include the weight and the dimensions and/or cube of the shipping unit involved, are used National Motor Freight Traffic Association, Inc. Subject 1, Page 7 of 10

8 Stowability Due to the fragile nature of the articles, carriers must ensure that only compatible freight is stowed adjacent to or on top of handling units of light bulbs. While one shipper has indicated that light bulbs can be stacked on themselves, another shipper, in acknowledging the fragility of these products, stated that shipments are frequently marked Do Not Stack. Moreover, CCSB members and staff have observed firsthand shipments marked Do Not Stack or Do Not Top Load, or having do-not-stack cones. For example, the photo on the left shows a shipment observed on a CCSB dock survey of LED light bulbs with tape across the stretch-wrapped handling unit labeled do not top load 3. Further, the configuration of some handling units, such as the one on the right, makes it impossible to stack freight on top. Light bulbs tendered in boxes not unitized on lift truck skids or pallets present additional stowing concerns. Information in the CCSB s files indicates that at least one shipper instructs its carriers to adequately secure individual boxes in the vehicle to prevent them from shifting or falling during transportation, which can result in damage. These negative stowing characteristics apply to both new and spent light bulbs. The aforementioned stowability issues result in increased time and effort on the part of the carrier to properly structure the load, including the use of load decks and/or dunnage, to minimize the potential for damage and efficiently use the available vehicle space. Liability Light bulbs are not perishable and there is no indication that they are unusually susceptible to theft. As previously discussed, light bulbs are inherently fragile and susceptible to damage, and as a consequence extra care and attention must be taken in handling and stowing these products, as evidenced by the frequent display of precautionary markings or shipper instructions. This is true even for spent light bulbs being shipped for recycling. One carrier reported that it paid out approximately $26,000 in claims in 2017 for a single shipper of light bulbs, with only a few of the claims being for shortage. A second carrier paid out over $700 for six claims last year. A third carrier reported no claims for items and , and claims ratios of 0.39% and 0.43% for light bulbs moving under items and , respectively. Responding shippers indicated no damage claims for spent light bulbs, while shippers of new light bulbs reported four to 36 claims per year. The value per pound ranges from $3.07 to $24.40 for new light bulbs, with an average of $10.53 per pound. Package 256 provides an exception to Item (Rule) 222 and states bottom flaps may come within five inches of meeting, and boxes must be firmly glued not less than 50% of area of contact. This method of packaging would not be sufficient to protect light bulbs in today s LTL environment. Package 2191 specifies interlocking molded or formed high density polyethylene (HDPE) trays. There is no information to indicate this package is still being utilized for, or would sufficiently protect, light bulbs in today s LTL environment. 3 The photo also speaks to the misclassification of light bulbs. The bill of lading for that particular shipment showed that the light bulbs were moving as fluorescent light bulbs per item ; however, the model number on the packaging revealed that they were in fact LED light bulbs. Subject 1, Page 8 of National Motor Freight Traffic Association, Inc.

9 Relationship to CCSB Policies and Guidelines CCSB policy calls for classification provisions to be as clear as possible to help preclude interpretation disputes and also calls for combining descriptions for related commodities. As discussed in this proposal, there are a number of interpretation issues related to the various NMFC provisions that apply on light bulbs. As such, to mitigate these interpretation issues, this proposal, in keeping with CCSB policy, would cancel the provisions of items , , and with reference to a new item, naming Lightbulbs (Light Bulbs). The word Lamps is not being retained in the new item due to potential interpretation issues between light bulbs and articles such as electric table lamps and electric floor lamps. CCSB policy also calls for classification provisions to reflect a commodity s known transportation characteristics. The information of record indicates that light bulbs range in density from 0.38 to pcf, with an overall average of 7.21 pcf. CCSB policy provides that where commodities or commodity groups exhibit a wide density range not accurately reflected by a single, overall average density, they may be assigned density-based classes. However, in this instance, research has identified significant negative handling, stowability and liability characteristics, and these characteristics must also be considered, in accordance with CCSB policies. These have been detailed in this analysis and include such factors as the need for additional care and attention in handling, the inability or additional care and equipment necessary to stack top freight or load adjacent freight, and the inherent risk of damage, regardless of whether the light bulbs are new or used (spent). This proposal would establish provisions based on density intervals of less than 6 pcf, 6 but less than 8 pcf, and 8 pcf or greater 4. Due to the identified negative handling, stowability and liability issues, a one-class adjustment is proposed, as shown in the table below. Density Group (pcf) Average Density (pcf) Class Based on CCSB Density Guidelines Class Adjustment Based on Handling, Stowing and Liability Considerations Less than but less than or greater Note, item would be canceled with reference to a new Note attendant to the new item. Another new Note would be referenced by the new item to clarify that the item does not apply on spent or used light bulbs that are regulated as hazardous waste and would direct the Classification user to item for such provisions. Note, item and Package 256 would be canceled as having no further application. Reference to Package 2191 would be removed. 4 The density provisions would include reference to Item (Rule) 170, the inadvertence clause National Motor Freight Traffic Association, Inc. Subject 1, Page 9 of 10

10 Precedent for this approach can be found in Docket , Subject 2 (May 2017), involving automobile or boat glass, including windshields or windshield glass. In that instance, multiple provisions were canceled and a new item was established for the involved products. The provisions established in the new item were based on two density breaks at 4 and 8 pcf where the articles were assigned classes representing a one-class adjustment from the CCSB s guidelines to reflect the negative impact of handling, stowability and liability factors. That proposal was approved as docketed, and the provisions first appeared in Supplement 2 to NMF 100-AQ, effective August 5, Based on the information of record, this proposal, as docketed, is in keeping with CCSB policies and precedent. Subject 1, Page 10 of National Motor Freight Traffic Association, Inc.