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$63,000 Civil Penalty for Improper Shipment of Hazardous Material

$63,000 Civil Penalty for Improper Shipment of Hazardous Material

$63,000 Civil Penalty for Improper Shipment of Hazardous Material

The Bullet:

The FAA has proposed a civil penalty of $63,000 against a company that offered for shipment a hazardous material by air that did not comply with USDOT regulations.  Employees of UPS noticed the leaking package and – as required – notified the FAA.

Read the press release:  FAA Proposes $63,000 Civil Penalty Against Terrazzo USA for Alleged Hazardous Materials Violations


The shipper is Terrazzo USA & Associates, Inc., of McLoud, OK.

The carrier for this HazMat shipment is United Parcel Service (UPS).UPS tandem trailer

FAA is the Federal Aviation Administration.  It is one of thirteen administrations and bureaus within the U.S. Department of Transportation (USDOT).

Contact:  Elizabeth Isham Cory / Phone: 847-294-7849 / Email: elizabeth.cory@faa.gov

Another administration within the USDOT, the Pipeline and Hazardous Materials Safety Administration (PHMSA), has overall responsibility for the regulations of hazardous materials transportation within the U.S.


A $63,000 penalty is proposed for alleged violations of the Hazardous Materials Regulations.  The alleged violations of the shipper include:

  • Did not provide signed copy of the shipping paper describing the hazardous material.
  • Package did not display the required marks or labels.
  • HazMat was not packaged in authorized packaging.  Nor was it packaged properly to prevent loss of contents during transportation.
  • Emergency response information was not included on the shipping paper.
  • Shipper did not provide HazMat Employee training for its employees responsible for the safe transport of hazardous materials.

The HazMat shipped is:  Master Flex Flexible Hardener.  A liquid Class 8 Corrosive Material.


The leaking package was detected at the UPS sort facility in Austin, TX.


Date of incident:  June 23, 2016

Date of publication of this notice: June 28, 2017

Terrazo has 30 days from receipt of FAA’s enforcement letter to respond to the agency.


This incident may not have come to light at all if UPS employees had not noticed the package was leaking and notified the FAA.


The FAA is authorized by USDOT to take the lead in the enforcement of PHMSA regulations when the transport of HazMat is by air within the U.S.


The original violation in this situation, the one that if addressed initially would have prevented all of the others (and this bad press) is the shipper’s failure to provide initial and triennial HazMat Employee training for its personnel.  It may seem that the cost of good training and the difficulties in getting all of your HazMat Employees into a classroom at the same time is too much but consider the alternative.  One shipment.  One package.  One call to the FAA.  $63,000 penalty.  Not to mention other costs in time and stress responding to the FAA.

UPS is one of the few air carriers that provides the option of complying with PHMSA/USDOT regulations for the transport of HazMat by air within the U.S.  Most air carriers require compliance with the Dangerous Goods Regulations of the International Air Transport Association (IATA).  It is possible that this shipment was subject to the Dangerous Goods Regulations of IATA which has requirements similar to – and even more strict – than those of the PHMSA/USDOT.  Either way, compliance with IATA or PHMSA/USDOT regulations within the U.S. is required for transport of dangerous goods (aka: HazMat) by air and is subject to enforcement by FAA.

Contact me to assist you in providing the required training for your HazMat Employees