Another PHMSA Penalty Increase

In the dangerous goods world things can change fast, so it is very important to be aware of the most up-to-the-minute changes. Much like in the video below, this can feel like an endless chase, but nevertheless we have to keep up the pace to stay within compliance of the changing regulations.

This not only goes for the regulations themselves, but also the penalties involved with being out of compliance. In Subpart D of Part 107 Hazardous Materials Program Procedures, there is a section entitled Enforcement, which outlines the civil and criminal penalties in the event you are non-compliant with the regulations. Being a federal agency, PHMSA must adjust their penalty rates each year to account for inflation. As of Tuesday, November 27, 2018, the new penalty rates officially go into effect. For this year it is a simple calculation, multiply the existing penalty by 1.02041, round up, and this will give you the new penalty.

For example:

  • A violation of hazardous materials transportation law under 49 U.S.C. 5123(a)(1) is going from $78,376 to $79,976.
  • A violation of hazardous materials transportation law resulting in death, serious illness, severe injury, or substantial property destruction under 49 U.S.C. 5123(a)(2) is going from $182,877 to $186,610.

A complete list of the penalty rate changes can be found at the link below:

https://www.gpo.gov/fdsys/pkg/FR-2018-11-27/pdf/2018-24930.pdf

Why is this an issue? If you have the latest hardcopy of the 49 CFR published in October of 2018 – it won’t have the increased penalties referenced in it. However, if you use the electronic Code of Federal Regulations the changes will be outlined there.  Of course, the goal is to follow the regulations as close as possible to avoid these costly penalties, which we can assist with here at ICC Compliance Center through our products, services, and training.

DANGEROUS GOODS SHIPPING NEWS

DELIVERED RIGHT TO YOUR INBOX

Leave a Reply

Your email address will not be published. Required fields are marked *