{"id":885627,"date":"2025-11-11T07:00:14","date_gmt":"2025-11-11T12:00:14","guid":{"rendered":"https:\/\/www.thecompliancecenter.com\/ca\/?p=885627"},"modified":"2025-12-01T02:21:42","modified_gmt":"2025-12-01T07:21:42","slug":"know-your-exemptions-materials-of-trade","status":"publish","type":"post","link":"https:\/\/www.thecompliancecenter.com\/ca\/help-center\/articles\/know-your-exemptions-materials-of-trade\/","title":{"rendered":"Know Your Exemptions \u2013 Materials of Trade"},"content":{"rendered":"

\"\"<\/p>\n

Know Your Exemptions \u2013 Materials of Trade<\/h2>\n

The \u201cHazardous Materials Regulations<\/a>\u201d (HMR), found in Title 49 of the Code of Federal Regulations<\/em> (49 CFR)<\/a>, were originally conceived with a simple framework \u2013 a shipper, usually a vendor, sends a consignment of the hazardous materials by a carrier to a receiver, who is usually a purchaser. But not all transport of hazardous materials follow this pattern.<\/p>\n

For example, take Frank, an independent contractor. He runs a small but busy plumbing business. Every morning, Frank loads up his work truck with equipment and supplies he\u2019ll need for the day\u2019s work. Some of those supplies include dangerous chemicals and articles. They could include materials such as primers and adhesives, a bottle of propane for his blowtorch, corrosive drain cleaners and biocides used to kill mold.<\/p>\n

Now, all of these materials are technically considered hazardous under U.S. Department of Transportation (DOT) regulations. But these goods aren\u2019t cargo for delivery. \u00a0Frank isn\u2019t in the business of transporting hazardous cargo\u2014he just needs these supplies to do his job. Having to comply with the requirements of the HMR, such as special packaging, labeling and placarding, special documentation and training certification would be a significant burden for Frank in time and money. But fortunately, the regulations give Frank a break. Businesses and individuals who transport reasonable amounts of hazardous materials for their own use as part of their line of work may qualify for an important exception known as Materials of Trade<\/em> (MOT).<\/p>\n

What is the Materials of Trade Provision?<\/h3>\n

The Materials of Trade provision is found in section 173.6<\/a> of the HMR. It allows businesses to transport small amounts of hazardous materials on a motor vehicle without being subject to the full requirements of the HMR. This provision is designed to ease the regulatory burden on businesses that transport hazardous materials as part of their routine operations but are not in the business of transporting hazardous materials for hire.<\/p>\n

The definition of a Material of Trade can be found in section 171.8<\/a> of the HMR, and says:<\/p>\n

\u201cMaterial of trade<\/em> means a hazardous material, other than a hazardous waste, that is carried on a motor vehicle\u2014<\/p>\n

(1) For the purpose of protecting the health and safety of the motor vehicle operator or passengers;<\/p>\n

(2) For the purpose of supporting the operation or maintenance of a motor vehicle (including its auxiliary equipment); or<\/p>\n

(3) By a private motor carrier (including vehicles operated by a rail carrier) in direct support of a principal business that is other than transportation by motor vehicle.\u201d<\/p>\n

So, Frank\u2019s plumbing supplies would meet subparagraph (3), since he uses them \u201cin support of his principle business.\u201d On the other hand, subparagraph (1) would cover things such as fire extinguishers that are carried or installed on vehicles for emergency response or other safety purposes, while (2) would address goods such as containers of spare gasoline or devices used to reinflate tires that have gone flat. Note if the \u201cprinciple business\u201d is simply being a third party carrier, this exception wouldn\u2019t apply to cargo being delivered to customers. It’s intended for things that the carrier is going to use themselves.<\/p>\n

Who Can Use the Materials of Trade Provision?<\/h3>\n

So who can use the Materials of Trade exception? Anyone can, as long as they meet the definition from section 171.8, and further requirements we\u2019ll look at in a moment. The exception is useful businesses such as:<\/p>\n