Staff Contact: Daniel E. Horning Telephone (703) Item Description Class

Transcription

1 Re: Kits, inpatient or outpatient care or treatment; Kits, maternity; or Kits or Sets, expendable aspirating, administration or transference Item Staff Contact: Daniel E. Horning Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class DENTAL, HOSPITAL OR MEDICAL SUPPLY GROUP: subject to item Kits, inpatient or outpatient care or treatment, NOI, see Note, item 56791; Kits, maternity, see Note, item 56792; or Kits or Sets, expendable aspirating, administration or transference, with empty plastic collecting or holding containers, or without containers; in boxes, subject to Items 170 and 171 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 5 or greater NOTE Applies on kits for use in doctors offices, hospitals, clinics, nursing homes or other medical institutions containing a mixture of three or more of the following: expendable medical instruments, expendable medical treatment accessories, or other articles for the care or treatment of the individual; with or without chemicals, drugs or medicines, other than narcotics NOTE Applies on kits consisting of sanitary pads or pads of similar design and construction and expendable accessories such as bedding pads, facial cleansing tissues, paper towels, sanitary belts, plastic shower caps, plastic gloves, swabs and bottles. THIS SPACE INTENTIONALLY LEFT BLANK 2012 National Motor Freight Traffic Association, Inc. Subject 2, Page 1 of 6

2 Proposed Classification Provisions Item Description Class DENTAL, HOSPITAL OR MEDICAL SUPPLY GROUP: subject to item Kits, inpatient or outpatient care or treatment, NOI, see Note, item 56791; Kits, maternity, see Note, item 56792; or Kits or Sets, expendable aspirating, administration or transference, with empty plastic collecting or holding containers, or without containers; in boxes, subject to Items 170 and 171 and having a density in pounds per cubic foot of: 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 No Change NOTE Applies on kits consisting of bottles, maternity garments, sanitary pads or related accessories. Analysis This proposal is based on information developed through Research Project 1154 involving various kits or sets as named in item The project was initiated in February 2012 to develop current information on the transportation characteristics of these products and to determine if the provisions are properly reflective of the nature of goods moving in commerce today. Research Project 1154 During the project, questionnaires were sent to 157 potential manufacturers or shippers and 26 trade associations related to the medical kits or sets industry. Mailings were sent in March 2012, and for non-respondents, a second, follow-up letter was sent in May Additional contacts were sent letters in June From those questionnaires, usable information was received from two companies, while 12 questionnaires were either returned as undeliverable or the companies were not involved. Responses were received from two of the associations indicating that they did not represent manufacturers or shippers involved in the survey. Subject 2, Page 2 of National Motor Freight Traffic Association, Inc.

3 Additional information was developed through the CCSB Density Study 1, CCSB dock surveys and carrier-submitted reports. History of Provisions The original provisions for inpatient treatment kits were established as a result of action taken on Subject 101 of Docket 132 (January 1968). That was a shipper proposal to establish a new item for expendable treatment kits or trays at class 100. Information of record indicated an average density of 9.33 pcf and an average value of $1.54 per pound (in 1968 dollars). The provisions first appeared in Supplement 18 to NMFC A-10, effective May 14, Subject 40 of Docket 725 (September 1972) was a proposal to cancel the provisions for inpatient treatment kits along with the existing entry for hospital patient kits and combine them along with maternity kits, under a new density-based item 2. The proposal was approved as modified but then subsequently appealed (Appeal 551), upheld on appeal, protested and suspended (I & S Docket No. M-27910). The ultimate decision in the investigative proceeding found that the proposed density-based classes were not shown to be just and reasonable, resulting in no change to the involved provisions. The matter was revisited under Subject 13 of Docket 756 (September 1975), a proposal to, among other things, combine and name maternity, aspirating/administration/transference and treatment kits or sets under one entry, at class 125. Once again, the proposal was approved as modified, appealed (Appeal 599), protested and suspended, with a second investigation (I & S Docket No. M-29116). As a compromise, a single density break at 5 pcf was established along with the institution of the bumping privilege, resulting in the current provisions of what is now item These amendments appeared in Supplement 9 to NMF 100-D, effective July 30, About the Involved Kits or Sets The attendant Notes governing item help define for the Classification user the nature and character of kits or sets embraced by the provisions. In this regard, Note, item 56791, governing inpatient or outpatient care or treatment kits, specifies that such kits are for use in doctors offices, hospitals, etc., and contain a mixture of three or more expendable components for the care or treatment of an individual. Some examples might include surgical sets, epidural kits and the like. Similarly, Note, item 56792, governing maternity kits, specifies that such kits consist of sanitary pads and other expendable accessories, e.g. tissues. However, it is noted that today s maternity kits may vary in their make-up or composition; 1 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. 2 In a related action, Docket 726, Subject 41 (November 1972) proposed the same density scale for expendable aspirating, administration or transference kits or sets; both subjects were jointly considered in the same appeal National Motor Freight Traffic Association, Inc. Subject 2, Page 3 of 6

4 % of Figures in Interval CCSB DOCKET different kits may indeed contain different articles or accessories 3. The expendable aspirating, administration or transference kits or sets named in item are self-explanatory and generally apply on kits or sets used to facilitate delivery, drainage or transference. Typical examples would include medical catheters, as well as gastronomic, infusion or I.V. kits or sets. Transportation Characteristics Density The information of record includes 9,998 figures, exhibiting a range in density from 0.17 to pcf, for an average density of 8.62 pcf. When grouped according to the currently applicable subprovisions, the density ranges and averages are as follows: Subprovision Density Range (pcf) Density Average (pcf) Sub 1 - Less than 5 pcf 0.17 to Sub 2-5 pcf or greater 5.00 to The frequency distribution of density figures for kits or sets as shown below indicates that while the overall average density is 8.62 pcf, the greatest concentration of figures is in the 4 but less than 6 pcf interval (41.92%). Further, the density mode and median are 4.88 and 5.65 pcf, respectively. This indicates that the overall average density is not reflective of the density range, as the range is wide, and moreover, the average corresponds to neither the midpoint of the range nor the most frequently occurring density in the range. Frequency Distribution 50.00% 40.00% 30.00% 20.00% 12.98% 41.92% 23.00% 10.00% 0.00% 0.02% 0.38% 7.19% 4.84% 2.96% 2.52% 0.60% 3.58% Density Intervals (pcf) 3 While they generally contain a complement of sanitary napkins or absorbent pads, panties or briefs, some kits may also include cold packs, digital thermometers and peri bottles. Still others may contain gloves, towels, antiseptic hand wipes or sterile gauze pads. Subject 2, Page 4 of National Motor Freight Traffic Association, Inc.

5 Handling and Stowability The involved kits or sets are packaged in inner containers in fiberboard boxes, which are generally shipped in unitized pallet loads, such as depicted below, and should not pose any significant handling problems. On selected shipments, precautionary warnings and instructions are noted, such as Do Not Double-Stack and Do Not Break Down Pallet. Care should be taken to load these products with compatible freight so as to reduce the risk of puncture or contamination especially in shipments that may contain sterile components. Liability These products are not perishable, prone to spontaneous combustion or explosion, or highly susceptible to theft, nor are they likely to damage other freight with which shipped. As mentioned, these products may be liable to damage or contamination; however, shipperprovided information indicates a limited number of claims per year, with claims ratios below 1%. There is no information available with respect to value per pound. Relationship to CCSB Policies and Guidelines CCSB policy calls for Classification provisions to reflect a commodity s known transportation characteristics. Information of record on the transportation characteristics of the involved kits or sets reveals a range in density from 0.17 to pcf, with an average of 8.62 pcf. The following table relates the information developed to the currently applicable provisions for both the current class and the class that would generally be applicable for the known average density per CCSB guidelines. Subprovision Density Range (pcf) Average Density (pcf) Current Class Class per CCSB Guidelines Sub 1 - Less than 5 pcf 0.17 to Sub 2-5 pcf or greater 5.00 to As depicted in the table, the provisions for the involved kits or sets are not in keeping with CCSB guidelines for the currently applicable classes. CCSB policy further provides that commodities or commodity groups exhibiting a wide range in density not accurately reflected by a single overall average density may be assigned density-based classes; especially where there are no unusual or significant stowability, handling or liability characteristics and where there is no other feasible means of effectively 2012 National Motor Freight Traffic Association, Inc. Subject 2, Page 5 of 6

6 narrowing the range. And where densities are distributed throughout the range, commodities or commodity groups may be assigned classes predicated on a full density scale. Further, when a substantial percentage of the densities involved exceeds 20 pcf, classes based on the CCSB s standard 11-subprovision density scale which ranges from class 400 for densities of less than 1 pcf to class 60 for densities of 30 pcf or greater may be assigned. The involved kits or sets have a density range from 0.17 to pcf. The densities are distributed throughout the range with 4.67% of the figures exceeding 20 pcf. This indicates that the standard 11-subprovision density scale 4 would reflect the densities of the involved kits or sets as opposed to the current single density break at 5 pcf, and would be consistent with CCSB policy and precedent. Since 2000, when the classification policies with respect to full-scale density-based provisions were changed to include the policy regarding the extended, 11-subprovision density scale, many items in the NMFC have been amended or established to provide that extended scale. For instance, as a result of action taken on Docket , Subject 8 (May 2012), which was a consolidation and updating of insulation or insulating material entries, item was amended to provide the extended full density scale. The commodities were shown to have a density range from 0.06 to pcf, for an average of 7.97 pcf, with the densities distributed throughout the full density array and a substantial percentage of densities exceeding 20 pcf. There were no unusual or significant stowability, handling or liability characteristics associated with the products. The changes first appeared in Supplement 2 to NMF 100-AL and became effective July 21, CCSB policies also call for replacing outdated terminology and eliminating excess or unclear wording so as to foster clarification and simplification. In this respect, the provisions covering maternity kits are not necessarily reflective or inclusive of all kits currently moving in commerce. The information developed indicates that components may vary and contain different articles (and not those specified in the attendant Note, item 56792) depending on the individual kit. Therefore, amending the attendant Note with language that reflects the varied content of maternity kits would be consistent with CCSB policy. Based on the information of record, this proposal, as docketed, is in keeping with CCSB policy and precedent. 4 The CCSB s standard 11-subprovision density scale includes reference to Item (Rule) 170, the inadvertence clause, and Item (Rule) 171, the bumping privilege. Subject 2, Page 6 of National Motor Freight Traffic Association, Inc.