a

GAO

United States Government Accountability Office

Report to Congressional Committees

March 2006 UNDECLARED 

HAZARDOUS 

MATERIALS

New DOT Efforts May 

Provide Additional 

Information on 

Undeclared Shipments

GAO-06-471
Page i GAO-06-471 Undeclared Hazmat

Contents

Letter 1

Results in Brief 3

Appendix

Appendix I: Review of Undeclared Hazmat Entering the United States 7

Abbreviations

DHS Department of Homeland Security

DOT Department of Transportation

Hazmat hazardous materials

SAFETEA-LU Safe Accountable, Flexible, Efficient Transportation

Equity Act: A Legacy for Users

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Page 1 GAO-06-471 Undeclared Hazmat

United States Government Accountability Office

Washington, D.C. 20548

A

March 29, 2006 Letr

The Honorable Ted Stevens

Chairman

The Honorable Daniel K. Inouye

Co-Chairman

Committee on Commerce, Science and Transportation

United States Senate

The Honorable Don Young

Chairman

The Honorable James L. Oberstar

Ranking Democratic Member 

Committee on Transportation and Infrastructure

House of Representatives

More than 3 billion tons of regulated hazardous materials (hazmat)—

including explosive, poisonous, corrosive, flammable, and radioactive 

materials—are transported in the United States each year. When these 

materials are properly packaged, labeled, and stowed, they can be 

transported safely, but when they are not, they can pose significant threats 

to transportation workers, emergency responders, and the general public 

because of the potential for accidents and incidents. Moreover, since the 

terrorist attacks of September 11, 2001, the security of such shipments, 

especially those that can be used as weapons of mass destruction, has 

attracted the attention of the transportation community, government 

officials, and emergency responders. In the wrong hands, hazardous 

materials could pose a significant security threat, and it is likely that 

terrorists who seek to use hazardous materials to harm Americans would 

move those materials as undeclared shipments.1

 

Federal officials are aware that undeclared shipments of hazmat occur and 

can have serious consequences.2

 Federal hazmat experts believe that the 

most frequent explanations for undeclared shipments are (1) shipper’s lack 

1

We previously reported on undeclared hazmat related to air transportation in 2003. For 

more information, see GAO, Aviation Safety: Undeclared Air Shipments of Dangerous 

Goods and DOT’s Enforcement Approach, GAO-03-22 (Washington, D.C.: Jan. 10, 2003).

2

Undeclared hazardous material refers to a material that is subject to hazard communication 

requirements and offered for transportation in commerce without any visible indication that 

a hazardous material is present.
Page 2 GAO-06-471 Undeclared Hazmat

of knowledge—an unawareness or misunderstanding of the requirements 

for properly declaring and transporting hazmat—and (2) economic—an 

attempt to avoid additional costs that may be associated with shipping 

regulated hazmat, including special placarding, packaging, additional 

training, and insurance. To the extent that such undeclared shipments are 

discovered, the discovery typically occurs in one of the following ways: as a 

result of an accident or incident, during a routine cargo inspection, or when 

a tip is provided to officials.

Two federal departments are involved in discovering undeclared hazmat 

entering the United States—Homeland Security (DHS) and Transportation 

(DOT). DHS—primarily through the Coast Guard and Customs and Border 

Protection—seeks to ensure the security of hazmat by reducing threats to 

transportation infrastructure and operations. DOT’s Pipeline and 

Hazardous Materials Safety Administration has the primary responsibility 

for regulating the safe and secure transportation of hazmat, and other 

modal administrations—most notably the Federal Railroad Administration, 

Federal Aviation Administration, and Federal Motor Carrier Safety 

Administration—are responsible for enforcing compliance with regulations 

once hazmat has entered the U.S. transportation system. 

A good understanding of the frequency and impact of undeclared hazmat 

shipments is essential to identifying the extent of the problem and 

developing regulations and programs to mitigate the risk involved. The 

Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 

for Users (SAFETEA-LU) requires that we review existing options and 

determine additional options for discovering the amount of undeclared 

shipments of hazardous materials entering the United States.3

 To respond 

to this mandate, this report (1) describes the current federal approach for 

discovering the amount of undeclared hazmat entering the United States, 

(2) identifies efforts under way to enhance the existing approach, and (3) 

determines whether any additional options could be employed.

To address these objectives, we interviewed and obtained information from 

a wide range of federal agencies and other sources, including the Pipeline 

and Hazardous Materials Safety Administration, Federal Railroad 

Administration, Federal Aviation Administration, Federal Motor Carrier 

Safety Administration, and the Office of the Secretary of Transportation 

within DOT. We also contacted the Coast Guard and Customs and Border 

3

Pub. L. 109-59, § 7130, 119 Stat. 1144, 1910.
Page 3 GAO-06-471 Undeclared Hazmat

Protection within DHS. We reviewed federal hazmat law and regulations, 

prior studies on the transportation of hazmat, and DOT hazmat incident 

reports for 2005. We also observed hazmat inspections and multiagency 

cargo and truck inspections. We conducted our work from October 2005 

through January 2006 in accordance with generally accepted government 

auditing standards. On January 25, 2006, we briefed your staff on the 

results of our work. Appendix II contains the materials we presented at 

that time.

Results in Brief The federal government has no specific program aimed at discovering the 

amount of undeclared hazmat entering the United States; undeclared 

hazmat is discovered mainly through inspection and regulatory efforts 

directed primarily at imported cargo. The two main departments involved 

in these efforts—DHS and DOT—play complementary roles. DHS finds 

undeclared hazmat through various programs and technologies for 

screening cargo entering the United States. For example, DHS has a 

container security initiative in which DHS staff work within host countries 

to prescreen high-risk containers, as well as use X-ray technology to screen 

trucks and containers as they enter the United States. DOT, on the other 

hand, finds undeclared hazmat while enforcing compliance with hazmat 

regulations—through inspections and penalties—for shipments that are in 

the nation’s transportation system. DOT officials inspect hazmat cargo to 

ensure proper paperwork, marking, labeling, and packaging; provide 

technical assistance intended to enhance the security of hazmat carriers; 

and issue security planning and training requirements for hazmat 

employees. Under this approach, however, information about the amount 

of undeclared hazmat entering the United States is limited. Neither DHS 

nor DOT could provide data about the amount of undeclared hazmat 

entering or discovered entering the country, even though their subordinate 

agencies maintain inspection databases.4

DOT has two new efforts under way that officials expect will enhance the 

current approach for discovering undeclared hazmat entering the United 

States:

4

According to DOT officials, DOT and its modal administrations are working with Customs 

and Border Protection and other federal agencies to create a single federal database for all 

commercial international trade and transportation transactions requiring review or other 

federal action. This data system could provide more timely information that could be used 

to monitor undeclared hazmat entering the United States. 
Page 4 GAO-06-471 Undeclared Hazmat

• Under SAFETEA-LU, DOT received enhanced authority to discover 

hidden shipments of hazmat. DOT expects to complete the rule-making 

process for implementing this expanded authority in late 2006, but the 

effective date is uncertain.5

 The new authority allows DOT inspectors to 

open and inspect cargo when they have “an objectively reasonable and 

articulable belief that the package may contain a hazardous material.” 

Previously, they could not generally open and inspect packages without 

a warrant or the shipper’s consent. 

• In an attempt to quantify undeclared hazmat incidents and discoveries, 

DOT now requires individuals who discover undeclared hazmat in 

transportation to self-report the discovery. To implement this 

requirement, which began on January 1, 2005, DOT revised its hazardous 

materials incident reporting form (Form 5800.1).6

 Data collected 

through this form can help in defining the extent of the problem and in 

developing programs to mitigate the risk of undeclared hazmat. 

Approximately 1,000 undeclared hazmat incidents were reported in 

2005, with 70 of those involving undeclared shipments entering the 

United States.7

Although additional options exist for discovering undeclared hazmat 

entering the United States, each additional option, such as increasing the 

scope and frequency of inspections, poses costs that would need to be 

evaluated within the context of (1) the likely benefits of the additional 

efforts and (2) the comparative risks posed by undeclared hazmat relative 

to other types of threats. At this time, however, data for evaluating 

5

In the past, DOT has also sought authority to randomly inspect cargo at Customs and 

Border Protection ports of entry in order to determine the extent to which undeclared 

hazmat is being offered for transportation in commerce. DOT officials reported that this 

authority was sought because such inspections have historically been conducted in 

conjunction with the Coast Guard, but far fewer are now being done due to the additional 

security demands on the Coast Guard. According to DOT officials, there are currently no 

plans to further pursue this authority. DOT will instead focus on implementing the expanded 

inspection authority granted in SAFETEA-LU. 

6

The hazardous materials incident report gathers information on incidents that occur during 

transportation, including hazmat releases and their consequences. DOT uses this 

information to identify trends and provide basic program performance measures. These 

reports must be submitted within 30 days of the incident and may be submitted by mail, fax, 

or electronically. DOT performs some cross-checks of forms submitted electronically to 

ensure the logic of the responses.

7

The other reported undeclared hazmat incidents were not discovered in shipments entering 

the United States. 
Page 5 GAO-06-471 Undeclared Hazmat

additional options and costs is limited. There may be ways to utilize the 

inspection data currently collected by DOT’s modal administrations and 

DHS agencies to provide additional information about the amount of 

undeclared hazmat entering the United States. However, according to DOT 

and DHS officials, the inspection data currently collected and reported is 

not designed to identify discoveries of undeclared hazmat. For example, 

data recorded by the Federal Motor Carrier Safety Administration includes 

such violations as “no placards/markings when required” or “no shipping 

papers”; while these may indicate the presence of undeclared hazmat, there 

is no violation category or data collected specific to discoveries of 

undeclared hazmat. Finally, DOT has recently revised its data collection 

tool and received new inspection authority, and more time is needed to 

observe and evaluate the impacts of these efforts on discovering the 

amount of undeclared hazmat entering the United States before pursing 

additional options.

We requested comments on a draft of this report from DOT and DHS. DOT 

offered a number of technical comments that were incorporated, as 

appropriate. DHS did not provide comments on this report. 

We are sending copies of this report to committees with jurisdiction over 

the transportation of hazardous materials, the Secretary of Homeland 

Security, and the Secretary of Transportation. We will also make copies 

available to others on request. In addition, the report is available at no 

charge on the GAO Web site at http://www.gao.gov. 

If you or your staff have any questions about this report, please contact me 

at (202) 512-8984 or heckerj@gao.gov. Contact points for our Offices of 

Congressional Relations and Public Affairs may be found on the last page
Page 6 GAO-06-471 Undeclared Hazmat

of this report. Key contributors to this report include Randall Williamson, 

Assistant Director; Heather MacLeod; Stan Stenersen; Friendly VangJohnson; and Pamela Vines.

JayEtta Z. Hecker

Director, Physical Infrastructure Issues
Page 7 GAO-06-471 Undeclared Hazmat

Appendix I

Review of Undeclared Hazmat Entering the Apendxies

United States ApendxiI

Undeclared Hazmat Entering the United 

States

Briefing for the

Committee on Commerce, Science, and Transportation

U.S. Senate and the

Committee on Transportation and Infrastructure

House of Representatives

January 2006
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 8 GAO-06-471 Undeclared Hazmat

Overview

3⁄4Introduction

3⁄4Mandate and objectives

3⁄4Scope and methodology

3⁄4Background

3⁄4Findings
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 9 GAO-06-471 Undeclared Hazmat

Introduction

Each year, an estimated 3 billion tons of regulated hazmat are transported in the U.S.

Under federal law, these materials must be properly declared, packaged, and labeled. In 

addition, federal officials know that undeclared shipments of hazmat also occur, either out

of shippers’ lack of knowledge or economic motivations.

Shipments of undeclared hazardous materials—materials not properly packaged, labeled,

and otherwise identified as hazardous—pose a serious safety and security concern for

transportation workers, emergency responders, and the general public should an accident

or incident occur.

Hazmat shipments can originate outside as well as inside the U.S. DOT officials report that

since the terrorist attacks of September 11, 2001, the security of such shipments, 

especially those that can be used as weapons of mass destruction, has attracted the

attention of the transportation community, government officials, and emergency

responders.
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 10 GAO-06-471 Undeclared Hazmat

Undeclared hazmat mandate (P.L. 109-59)
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 11 GAO-06-471 Undeclared Hazmat

Reporting objectives

1. Describe the current approach for discovering the 

amount of undeclared hazmat entering the U.S.;

2. Identify efforts currently under way to enhance the 

existing approach; and

3. Determine whether any additional options could be 

employed.
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 12 GAO-06-471 Undeclared Hazmat

Scope and methodology

• Interviewed DOT and DHS 

officials

• Analyzed the results of studies on hazmat transportation

• Reviewed literature and hazmat 

laws and regulations

• Analyzed DOT hazmat incident reports for 2005

• Observed field inspections by federal agencies

• Conducted our review according to generally accepted 

government auditing standards

Source: GAO.
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 13 GAO-06-471 Undeclared Hazmat

Background

DOT uses a United Nations classification system 

to divide all hazmat into nine hazard classes

Hazard class Description Example material

Class 1 Explosives Fireworks

Class 2 Gases Propane

Class 3 Flammable liquids Paint

Class 4 Flammable solids Safety matches

Class 5 Oxidizers and organic peroxides Ammonium nitrate

Class 6 Toxic materials and infectious substances Pesticides

Class 7 Radioactive materials Uranium hexafluoride

Class 8 Corrosive materials Batteries

Class 9 Miscellaneous dangerous goods Asbestos

Source: GAO.

• DOT regulates the transportation of all hazmat under the Hazardous Materials Transportation Act of 1975 (P.L. 93- 633 and subsequent amendments) and helps ensure that U.S. regulations are harmonized with international 

regulations.

• DOT classifies individual materials by type of hazard, but not necessarily by relative degree of hazard.
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 14 GAO-06-471 Undeclared Hazmat

Background

Four key components to the system of hazard 

communication involving hazmat shipments

Component Description

Shipping

papers

The shipping document contains information to identify the hazard of the materials that 

can be used in the mitigation of an incident. Shipping documents are kept in the motor

vehicle, in a holder on a ship, or by an aircraft pilot or train crew member.

Labeling Additional package labeling is required for certain materials that are explosive, poisonous, 

and infectious. Labels must be placed in a clearly visible manner on the hazmat 

packaging.

Marking Markings provide additional information for certain bulk commodities and other materials 

such as materials poisonous by inhalation, marine pollutants, and elevated temperature 

materials. Application of these markings varies according to the volume or class of the 

hazmat shipment. At a minimum, markings are required on two opposing sides of the 

vehicle or container.

Placards The primary function of placards is to provide initial warning information in the event of an 

incident involving a hazmat shipment. Placards must be placed on both ends and both 

sides of trucks, railcars, and intermodal containers that contain hazmat.
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 15 GAO-06-471 Undeclared Hazmat

Background

Federal regulations define undeclared 

hazmat

Undeclared hazardous material means a hazardous 

material that is:1

(1) Subject to any of the hazard communication requirements in subparts C 

(Shipping Papers), D (Marking), E (Labeling), and F (Placarding) of Part 172 of 

this subchapter, or an alternative marking requirement in Part 173 of this 

subchapter (such as §173.4(a)(10) and 173.6(c)); and 

(2) offered for transportation in commerce without any visible indication to the 

person accepting the hazardous material for transportation that a hazardous 

material is present, on either an accompanying shipping document, or the 

outside of a transport vehicle, freight container, or package.

149 CFR § 171.8.
Appendix I

Review of Undeclared Hazmat Entering the 

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Page 16 GAO-06-471 Undeclared Hazmat

Background

Undeclared hazmat shipments occur for 

two main reasons, according to officials

• Lack of knowledge: Domestic and foreign shippers 

may be unfamiliar with hazmat regulations and laws. 

3⁄4 This generally occurs with smaller or infrequent 

shippers of hazmat.

• Economics: Shippers may not declare hazmat to 

avoid additional costs. 

3⁄4 This generally occurs because declared hazmat 

shipments require special placarding, packaging, 

additional training, carrier surcharges, and insurance.
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 17 GAO-06-471 Undeclared Hazmat

Background

Two key federal departments are involved 

in discovering undeclared hazmat

Department Homeland Security (DHS) Transportation (DOT)

Role Seeks to ensure the security of 

hazardous materials by reducing 

threats to transportation 

infrastructure and operations.

Screens cargo entering the U.S. and 

verifies that hazmat is clearly marked 

and labeled as it enters the U.S.

Regulates the safe and secure 

transportation of hazardous 

materials.

Responsibilities Promulgates and enforces hazmat 

transportation laws and regulations.

Source: GAO.
Appendix I

Review of Undeclared Hazmat Entering the 

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Page 18 GAO-06-471 Undeclared Hazmat

Background

Key DHS agencies involved in discovering 

undeclared hazmat

U.S. Coast Guard (CG) 

Ensures maritime safety, 

security, and environmental 

protection on both inland and 

ocean waters. CG is 

responsible for enforcing DOT

hazmat regulations in the

maritime sector.

U.S. Customs and Border 

Protection (CBP) 

Secures U.S. borders while 

facilitating the legitimate flow of 

people and goods. CBP is

responsible for screening 

cargo, prior to its entry into 

the U.S.

Source: GAO.
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Review of Undeclared Hazmat Entering the 

United States

Page 19 GAO-06-471 Undeclared Hazmat

Background

Key DOT agencies involved in discovering 

undeclared hazmat

Source: GAO.

Each of the DOT agencies above enforces federal hazmat law and DOT hazardous materials regulations.

Pipeline and

Hazardous Materials

Safety Administration

(PHMSA)

Promulgates and

implements federal 

laws governing

hazmat transportation

for all modes.

Federal Railroad

Administration (FRA)

Promulgates and 

enforces railroad 

safety regulations. 

Federal Aviation

Administration (FAA)

Regulates civil aviation

and is responsible 

for enforcing 

compliance with 

regulations for hazmat 

shipments by air.

Federal Motor Carrier 

Safety Administration

(FMCSA)

Implements legislation

and enforces regulatory

programs pertaining to 

large trucks and motor

carriers.
Appendix I

Review of Undeclared Hazmat Entering the 

United States

Page 20 GAO-06-471 Undeclared Hazmat

Objective 1: Current approach

What is the current approach for discovering the 

amount of undeclared hazmat entering the U.S.?

• The federal government has no specific program aimed at 

discovering undeclared hazmat entering the U.S., but inspection 

and detection efforts directed generally at imported cargo can 

lead to its discovery.

3⁄4 DHS discovers undeclared hazmat through its numerous 

programs and technologies that screen imported cargo.

3⁄4 DOT finds undeclared hazmat through its efforts to ensure 

the safe transportation of cargo within the U.S.

• Under the current approach, information about the amount of 

undeclared hazmat entering the U.S. is limited.
Appendix I

Review of Undeclared Hazmat Entering the 

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Page 21 GAO-06-471 Undeclared Hazmat

Objective 1: Current approach

Various DHS programs may help to 

discover undeclared hazmat

Program or technologya Description

Advanced electronic cargo manifest Mandatory submission of cargo manifest data; time frames vary by

mode

Nonintrusive inspection (NII) 

technologies

These include the Vehicle and Cargo Inspection System (VACIS) 

and truck X-ray systems

Container security initiative (CSI) CBP officers collaborate with host country customs officers to 

prescreen high-risk containers

Automated targeting system Assigns risk scores to cargo; certain scores flag cargo for human 

inspection

Known shipper program Air shipments from unknown sources are more closely scrutinized

aNone of these efforts or technologies was designed specifically to discover undeclared hazmat.

Source: DHS.
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Page 22 GAO-06-471 Undeclared Hazmat

Objective 1: Current approach

DHS inspection technologies: examples

A CBP officer uses a hightech device to peer inside a 

vehicle gas tank.

A truck X-ray machine in action.

Source: DHS.
Appendix I

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Page 23 GAO-06-471 Undeclared Hazmat

Objective 1: Current approach

DHS inspection programs: an example

Multiagency Strike Operation Led by DHS, Port of Tacoma, November 16, 2005

CG, CBP, and local firefighting officials

opening a container on a truck

Personal radiation detector carried by CG 

and CBP officers

Source: GAO.
Appendix I

Review of Undeclared Hazmat Entering the 

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Page 24 GAO-06-471 Undeclared Hazmat

Objective 1: Current approach

DOT inspection efforts: an example

At a Port of Seattle facility, an FRA inspector opens a placarded hazmat container filled with 

drums of paint before it is loaded on an outbound freight train.

Source: GAO.
Appendix I

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Page 25 GAO-06-471 Undeclared Hazmat

Objective 1: Current approach

Information about undeclared hazmat is 

limited

• Neither DOT nor DHS could provide data on 

the amount of undeclared hazmat entering 

or discovered entering the U.S.

• While agencies maintain individual 

inspection databases, the existing data 

addresses violations, citations, and 

incidents—and is not necessarily specific to 

undeclared hazmat.
Appendix I

Review of Undeclared Hazmat Entering the 

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Page 26 GAO-06-471 Undeclared Hazmat

Objective 2: Enhancing the existing approach

What efforts are currently under way to 

enhance the existing approach?

• DOT has new inspection authority, but efforts to 

implement this authority are just getting under 

way.

• DOT’s hazmat incident reporting system has 

begun capturing data on the discovery of 

undeclared hazmat.
Appendix I

Review of Undeclared Hazmat Entering the 

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Page 27 GAO-06-471 Undeclared Hazmat

Objective 2: Enhancing the existing approach

New inspection authority may assist DOT 

in discovering undeclared hazmat

• New inspection authority, granted in SAFETEA-LU (P.L. 109-59), may 

enhance DOT’s ability to discover hidden shipments of hazmat.

• This new authority states that DOT inspectors may open and inspect 

cargo when they have “an objectively reasonable and articulable belief 

that the package may contain a hazardous material.” Previously, DOT

inspectors could generally not open and inspect packages without a

warrant or consent.

• Rule-making process to implement the authority is currently under 

way. DOT expects to complete an interim final rule in late 2006, but 

the effective date is uncertain.
Appendix I

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Page 28 GAO-06-471 Undeclared Hazmat

Objective 2: Enhancing the existing approach

Revised hazmat incident form may assist 

DOT to quantify undeclared hazmat 

incidents

• Since January 1, 2005, DOT has required individuals who 

discover undeclared hazmat in transportation to self-report 

using Form 5800.1, the hazardous materials incident form. 

• Data obtained through reporting can help in defining the 

extent of the problem and in developing programs to 

mitigate the risk.

• Nearly 1,000 undeclared hazmat incidents were reported 

in 2005, with 70 of those involving undeclared shipments 

entering the U.S.2

2The other reported undeclared hazmat incidents were not discovered in shipments entering the United States.
Appendix I

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Page 29 GAO-06-471 Undeclared Hazmat

Objective 3: Additional options

What additional options, if any, could be 

employed?

• While additional options, such as increasing the scope and frequency of inspections exist, any additional efforts should be

based on analysis of (1) likely benefits of the additional efforts, 

and (2) comparative risk posed by undeclared hazmat relative to 

other types of threats.

• There may be ways to utilize inspection data to provide additional information about undeclared hazmat, but it is unclear 

whether the existing data would be useful for this purpose.

• It is too early to evaluate the impact of the new inspection authority and data collection tool on DOT’s ability to discover the 

amount of undeclared hazmat entering the U.S.

(544113)
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