## Description 1 Appendix C, Sanction Guidance 2 Haz Mat Incident Rpt
- 4 pp 3 Photos
- 12 pp 4 

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### 29 Nu Fashion FAA- 2011
- 1123· Agency Exhibits 

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### U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, DC
IN THE MATTER OF NU FASHION BEAUTY SUPPLY DISTRIBUTORS 

### FAA DOCKET NO. [TO BE ASSIGNED] (Civil Penalty Action) FDMS NO. FAA-2011-1123



### HEARING NOTES GAYLE TOWNSEND

BEVIS SCHOCK



### .FAA OPENING 

### 7 

### violations ofF AA regs w/ regard to hazmat. Motion for SJ on pleadings, SJ granted, 7 

### violations founded. 49 

### CPR 171.2 FAA for $15,000 civil**p~nalty** 

### RESPONDENT OPENING 

### R admitted violations ISSUE IS AMOUNT OF FINE Argument is over appropriateness offine Case is over a box ofhairspray Customers having trouble with the mechanism, returned hairspray to mfr. .,



### This is hairspray, aetosol product, never went on airplane, no hx ofviolations

..

1

### Asking for $1,000 fine DAVID SCHAUFLER Hazmat safety mgmt

- 4 yrs. OFFERED for**~hipment** 

### an aerosol. Product was never shipped! Was caught by UPS and stopped Could have been offered ifproperly labeled and packed 

### Itis not a forbidden material Reclassified to consumer commodity CROSS


### PROBLEMFORAGENCY NO EVIDENCE TO SUPPORTREQUESTTOREDUCE- NO FINAN/CAL DATA PROBLEMFORRESPONDENT: NO EVIDENCE TO SUPPORTREQUESTTO REDUCE-NO FINAN/CAL DATA
IAMINCLINED TOLOWERPENALTY ASMUCHASPOSSIBLE- R HAS BEENCOOPERATIVESINCEBEGINNING-ASKED FOR PENALTY REDUCTION

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# 1'\ 10/01/07 2150.38 Appendix C. Sanction Guidance ' Hazardous Materials Enforcement



### 1. Background.

a. Legislation. Congress determined that the unregulated transportation ofhazardous materials constitutes a threat-to public safety in all forms oftransportation. Congress addressed that threat in 1974 by enacting the Hazardous Materials TransportationAct (HMTA). By 1990, Congress determined that effective enforcement ofthe HMTA required more severe action, and enacted the Hazardous Materials TransportationUniform SafetyAct of 1990, Public LawNo. 101-615, 1990 U.S: Code Congress. & Admin. News 104 Stat. 4605. The primary effect ofthis. 1990 revision ofthe HMTA was to raise the maximum civil penalty for violation ofany regulation enactedunderthe HMTA to $25,000, and, for the first time, to require a $250 minimumpenalty for any such violation. The HMTA was recodified in 1994 and is now referred to 

### as the "Federalhazardous material:transportationlaw," 1994 U.S. CodeCongress. 

### &Admin. News 108 Stat 759, codified at.49 U.S.C. 

### §§ 5101-5127. 

### Inthe 1994recodification, Congress specifically stated that the recodification createdno substantive change to the earlier form ofthe statute. 

### In 2005, the Congress enacted and the President signed the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA- LU), Public Law 109-59, August 10, 2005. That legislation, among other things, modified the limitations on civil penalties**th~t** maybe assessed for violations ofthe hazardous materials statute andregulations. b. Civil Penalties. The Federal Civil Penalties InflationAdjustmentAct of 1990, 28 U.S.C. 

### § 2461 (note), as amended by the Debt CollectionImprovementAct of 1996, Public Law 104-134, April26, 1996, provides a mechanism for adjustments for monetary civilpenalties for inflation in order to maintain the deterrent effect ofmonetary civil penalties andpromote compliance with the law. Under the statute, the adjusted civil penalty maximums cannotbe applied unless they are :implemented byregulation. The adjusted civil penalties are listed 

### inpart) 13 ofTitle 14 ofthe CFR, subpart H. Pursuant to SAFETEA·_tU, the max:imum civil perialty that may be assessed:'for a violation ofthe Federal hazardous material law or a hazardous material regulation is now $50,000; the minimum civil penalty is now $250. There are two exceptions to those limits. A maximum civil penalty of$100,000 may be assessed ifthe violationresults in death, serious illness, or severe. injury to anyperson, or substantial destruction ofproperty. The min:imum civil penalty that may be assessed for a training violation is $450.

c. EnforcementResponsibility. Within the Department ofTransportation, the Pipeline & Hazardous Materials Safety Programs Administration (PHMSA), created by the Norn;tim 

### Y. MinetaResearch and Special Programs ImprovementActin2004, adopts the Hazardous Materials Regulations (HMR), which governthe transportation ofhazardous materials (hazmat). The FAA, under delegated authority, enforces the Federal hazardous material transportation law andthe 

### HMR, withparticular emphasis on shipment ofhazmatby 

### air. 49 C.F.R. 

### § 1.470).

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d. Violation ofthe HMR.s. The HMR set forth regulations for the transportation ofhazmat. A knowing violation ofthe statute or ofthe HMR can support the assessment ofa civil penalty between $250 and $100,000. A person acts lmowingly when the person has actuallmowledge of the facts giving rise to the violation; or a reasonable person acting in the circumstances and exercising reasonable care would have that lmowledge. 49 U.S.C. § 5123(a)(l)(A). The civil penalties authorized under the statute apply to each violation ofany regulation set forth in the HMR; they also apply to the violation ofan order, special permit, or approval issued by the Department. Moreover, underthe statute, each continuing violation ofthe HMR can constitute a separate violation for each day a violation continues. ·In section 5124 ofthe statute, Congress prescribed criminal penalties for a willful violation ofthe Federal hazardous material transportation law orthe HMR; willful violations require evidence ofbothknowledge ofthe laws and regulations and intent to violate them.

e. Investigative and Enforcement**Procedur~s.** Part 13 ofthe Federal Aviation Regulations- Investigative and Enforcement Procedures (14 C.F.R. part 13) governs the procedures applicab1e to enforcement oftheHMRbythe FAA. Hazmat violations occurring on or afterAugust 2, 1990, may be dismissed byan adrrllnistrative lawjudge (ALJ) ifa notice of proposed civil penalty has not been issued within 2 years ofthe violation, unless good cause for delayhas been shown. 14 C.F.R. 

### § 13.208(d). 2. Consideration ofStatutory Criteria, As a general matter, a sanction should beimposed that is su,fficiently deterrentbut not excessive, 

### in orderto complywith the underlying purposes ofthe Federal hazardous material transportation"law and HMR. 

### In determining the sanctionto be assessed, penalty criteria set forth in 49 U.S.C. § 5123 must be considered. These criteria are the nature, circumstances, extent, and gravity ofthe violation; the degree ofculpability ofthe violator; the history ofpast violations (ifany); the ability to pay; the effect on**t~e** ability to continue to do business; and othermatters asjustice requires. Some ofthese considerations already are factored to some extent into the categories in the Hazardous Material Sanction Guidance Matrix. Thestatutory factors are further considered under the weighting analysis that is performed to indicate the amount ofthe civilpenalty within the appropriaterange, i.e., at the minimum, moderate, ormaximumportion ofthe sanction range.. TheMatrix recognizes that an evenhigherpenalty coulcfbe warranted for a significantly aggravated case, consistent with the increased maximumpenalty of$50,000 imposed by SAFETEA-LU. In addition, the Matrix reflects the potential $100,000 penalty, also imposedby SAFETEA-LU, for a violation that ;results in death, serious illness,·or severe injury to any person, or substantial destruction of property. 3. Consistency ofPenalty Sanctions. The Hazardous Materials Sanction Guidance is designed· to promote better**consi~tency** so that similarpenalties are imposed in similar cases. The specified Matrix ranges (e.g., $250-$550, or $15,000-$32,500) are intended to reflect the nature, circumstances, extent, and gravity ofthe case as compared with other types ofcases. Each case, however, must be evaluated onits ownfacts. A sanctionmay differ from the specified Matrix ranges when the facts and circumstances ofa case support either a greaterorlesserpenalty. When a. special agent believes that a penalty should exceed the specified Matrixranges, the agent

. should consultwith legal counsel before furtherprocessing ofthe Enforcement Investigative

Report (EIR). This consultation is notnecessary 

### inthe case ofa recommended penaltythat is


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less than thatprovided in the Matrix. 

### In either situation, the basis for the decision to go outside th,e ranges should be explained in detail. 4. Part 

### 175 Violations. Violations ofpart 175 ofthe HMR, which establish particular requirements for air carriers and other aircraft operators, are contained in a separate matrix. However, such operators often offerhazardous materials for airtransportation, as well as accept and transport them. Forthis reason, such operators maybe liable for violations both as a business entity within the Hazardous Materials Sanction Guidance Matrix, as well as for specific air carrier violations. 5. Violation Committed by Small Business Entity, To meet statistics-gathering requirements, the investigating special agent must determine whether the alleged violator qualifies as a smaU business concemunder the SmaU Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). For an extensive discussion ofhow to make that determination, see Part OneAbbreviations and Definitions, in Appendix B ofthis order. Ifinvestigating speqia1 agents are unable to obtctin**m<i~PeP9.ently** information to determine whether an alleged violatoris a small business concern, theyrequest such information inthe letter ofinvestigation. See sample letter ofinvestigation inFigure A-1 ofAppendixA. Because violations ofTitle 49 ofthe U.S. Code and the HMRmaybe committed by entities in addition to those normallyregulated bythe FAA, the investigating agent may need to refer to the SBA's complete table ofsize standards to find the correct size limit for an alleged violator. ,
a. Enforcement Policy under SBREFA. Chapter 7, Paragraph 10, ofthis order generally outlines the FAA's enforcementpolicyunder SBREF A. In determining whether and liow to provide for the reduction or waiver ofcivil penalties for statutoryorregulatory violations by small entities, the FAA's policy may contain certain conditions. Those conditions may allow for excluding from such a reduction or waiver: a small entity that has been subject'to multiple enforcement actions bythe agency, a violation involving willful or criminal conduct, a violation that results when there has notbeen a good faith attempt to comply with the requirements, and a violation thatposes a serious health, safety or environmental threat. With respectto 

### air carriers

.and other aircraft operators, the FAAtakes into consideration company size in determining the appropriate amount ofci'\{il penalty. See the Matrix,Figure C-1, below. b. Information Sheetfor Complaints by Small Business Concerns. EachFAA employee who conducts an inspection ofa small business concern that is regulated by the FAAprovides the small business concern with an information sheet. The information sheet informs that entity that itmay submit complaints or coni.ments regarding unfair FAAregulatory enforcement to the National Ombudsman. FAA special agents may obtain a copy ofthe information sheet.for hazardous materials inspections and additional guidance for distributing it from the ASH regional offices.

c. Reduction or Waiver ofPenalty. The FAA does notreduce or waive thepenalty ofan alleged violator solely because it is a small business entity. This is because a violation ofthe hazmat statutes orHMRtypicallyposes a serious health, safety, or environmental threat (and mayinvolve one ofthe otherreasons for exclusion). Accordingly, theFAA will usually reduce

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orwaive a penalty only ifthe small business entity provides evidence t<? demonstrate its inability to pay orthat the proposedpenalty would prevent the entity from continuing in business. d. EnforcementActions Other than Civil Penalties. The FAA may, in limited circumstances, announce policies to provide for hazmat enforcement actions less onerous than civil penalties, 

### that is, administrative actions. Suchpolicies may apply to small business entities orto others, and will be announced as Compliance and Enforcement Bulletins in this order. 6. Use ofthe Sanction Guidance. This guidance provides agency persom1el with a systematic way to evaluate a case and arrive at an appropriate penalty, considering all the relevant statutory criteria including mitigating and aggravating circumstances, ifany. Statutory considerations have been factored into the various ranges within theSanctionGuidance Matrix. Determination ofwhere a sanction lies within these ranges is aided by a series ofweighting questions that probe the various aggravating and mitigating factors that may exist in a case.

a. Weight Analysis. First, the weighting analysis is performed. Agency personnel respond to a series ofquestions 

### to determine the aggregate weight ofthe case. The aggregate weight of the case helps determine the sanction amount for each violation group within the established ranges ofthe Matrix. b. Determination of-Sanction. Itis important to note that determination ofwhere the sanctipn lies within the Matrix is notthe result ofa mathematical computation. Evaluation ofthe case is based onthe totality ofthe facts and circumstances. Generally, ifthe answer to a particular question represents a more significant aspect ofa case, greater consideration should be given to that answer. For example, violations involving an extremely dangerous substance, even inminute quantities, might warrant a penalty at the maximum end ofthe range oreven a penalty exceeding the Matrix ranges (ifnot already at the statutory maximum).

c. Determination ofCategory. Under the Sanction Guidance Matrix, agency personnel determine the category ofviolator the person falls within 

### (for example, business entity that regularly offers,**accept~?** ortransports hazmat) anqthe offense category**(fq_r._,~:x,ample,** undeclared shipment within hazmat quantity limitations). The sanction ranges under the various violator categories take into account the relative culpability ofthe violator. Similarly, the offense categories address the nature, circumstances, and gravity ofthe particular offense. After determining the appropriate categories and intersecting box ofthe Matrix, agency personnel then determine which subcategories ofoffenses 

### (for example, shippingpapers) are alleged to have beenviolated. Based onthe weighting analysis performed in subparagraphs 8.a.-e., an appropriate penalty is assigned for each ofthe applicable violation groups. The penalty amount for each relevant violation group is added togetherto reach the recommended sanction. d. OtherRelevant SanctionFactors. Under subparagraph 8.g., the special agent then considers otherrelevant factors, including evidence ofcorrective action. A recommended sanction maybe reduced priorto the issuance ofa notice ofproposed civil penalty when there is adequate reliable information concerning the corrective actions taken by a respondent. .Corrective actions thatjustifyreduction ofthe recommendedpenaltymust exceed the minimum



### C-410/01/07 2150.38 legal requirements. The special agent also attempts to provide information concerning the alleged violator's size, fmancial condition, and ability to pay a recommended sanction. 7. FAA Legal CounselReview. When an'EIR is forwarded to legal counsel for enforcement action, counsel will give appropriate consideration to.the recommended sanction. FAA legal counsel will also review the factors, analysis, and determinations underthe Hazardous Materials Sanction Guidance. The basis for deviating from the recommended sanction, ifany, shouldbe

. explained to, and discussed with, the investigating special agent. Final determination ofthe

sanction amountproposed in the notice ofproposed civil penalty is ordinarily a product of joint decisionmaking and approval ofthe investigating agent and the legal office.

8. FederalAviation Administration Hazardous Materials Sanction Guidance. This Sanction Guidance is divided into three sections: case analysis; utilization ofthe Sanction Guidance Matrix (Matrix); and consideration ofother statutory factors. The Sanction Guidance Matrix is contained inFigure C-1 and the Risk**Cat~g9r:ies** are contained 

### inFigure C-2.

a. CaseAnalysis (Evaluation ofStatutoryAssessment Factors). (1) This section contains a series ofquestions to assist a special agent in evaluating a case and recommending a sanction. Italso assists an attorney in evaluating a case file priorto initiation, and after additional information is received inresponse to a notice ofproposed civil penalty. The questions review factors involving the nature, circumstances, extent and gravity of the viola,tion, the violator's degree ofculpability, and the violator's history ofprior violations. Some ofthese factors are already considered to some extent within the various categories ofthe Sanction Guidance Matrix. The questions in this section provide additional consideration ofthe statutory factors and examine the existence ofaggravating and mitigating factors 

### iiia case. (2) The agent answers each question in 

### Section I and determines ifa relative weight of minimum, moderate, ormaximum should be assigned based on the response to the question. With the exception of

### Question 

### (l)(a), not all questions will necessarily apply to a given fact situation. 

### Question 

### (l)(a) addresses the nature ofthe ha:z;.ardous material(s) invol:v:ed; and the. evidence will indicate the risk'category and, therefore, the weight. The aggravating or mitigating factors addressed inthe otherquestions only apply to the case when the question receives a

### yes response. Questions receiving a 

### no response do not affect the weighting ofthe case and are not considered. For example, that the violation did notresult in injury or damage is 

### not a mitigating factor, and should notresult in penalty mitigation. 

### Inmany instances, the answers to most orall ofthe questions will be 

### no and the only relevant weighting factor in this section will be the risk category ofthe material identified in 

### Question (l)(a). (3) 

### In determining the final aggregate weight ofthe case, the responses to each ofthe questions do not have to be equally considered. Determination ofwhether the overall case should have a minimum, moderate, or maximum weight cannotbe determined with mathematical certainty. Generally, ifthe answer to a question demonstrates that the factor at issue represents a more significant aspect ofthe case, greater consideration is given to that factor. The !mal aggregate weight is based on the totality ofthe facts and circumstances ofthe case. Once
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### 10/01/07 2150.38 determined, the fmal aggregate weight is then utilized to arrive at the recommended sanction for each applicable violation group onthe Sanction Guidance Matrix (See, Figure C-1). 

### b. TheNature, Circumstances, Extent, and Gravity ofthe Violation (Factors Concerningthe Shipment): (1) What material(s) was offered, transported, or accepted for air transportation? Figure C-2 divides hazardous materials ofparticularclasses, divisions, at1d packing groups into three risk categories: Category A, Category B, and Category C. Find the material offered, transported, or accepted, inFigure C-2 and answer the questions below.

• Ifthematerial(s) is in CategoryA, assign a Maximum weight. • Ifthe material(s) is in CategoryB, assign a Moderate weight. • Ifthe material(s) is inCategory C, assign a Minimum weight. GuidanceNote: The categories in FigureC-2 represent the inherent risk of dangerto air transportationposed by the material. 

## If there is more than one type of hazardous material involved in the shipment, use the hazardous material in the highest riskcategory. (2) What quantity ofthe material(s) was offered, transported, oraccepted for 

### air transportation?

· • Did the package(s) exceed the authorized quantity limitations by a significant amount? If yes, consider a Moderate orMaximum weight depending on the degree to which the limitation was exceeded. Guidance Example: The quantity limitation for gasoline on apassengerplane"is 5 litersper package. 

## If a violator offers 30 liters in a singlepackage on apassengerplane, assign a maximum weight for this factor.

• Did the package contain a forbidden material? If yes, assign a Maximum weight.

• Were there multiple packages in the shipment? Ifyes, consider a Moderate or Maximum weight, depending on the number ofpackages and total amount ofhazardous material being transported inviolation. GuidanceNote: A package means a packaging plus its contents. There may be multiple packages in one shipment or overpack. Multiplepackages often represent multiple violations. Under the Sanction Guidance, this fact is consideredan aggravating circumstance rather than a direct multiplier of the sanction for each violation. Each case, however, mustbe evaluated on its particular facts. A very large number of packages may result in such an egregious case that the overallweight of the case is so high that apenalty beyond the maximumpoint in the range is warranted. An investigation will occasionally reveal sufficient evidence of severalshipments from the same offeror overaperiodof severaldays, all of which involve violations of the HMR. These independent acts of offering usually are consolidated into oneEIR'andaddressed in one notice


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proposedcivil penalty. However,forpurposes of determining the appropriate sanction, each separate shipment.with separate air waybill orshippingpapers, separate destination, and/or other evidence establishing 

### itas a separate shipment, is ordinarily consideredas a separate incident forpurposes of applying the sanction guidance analysis. It is suggested that the separate shipments be treatedas individual counts in the EIR andthe notice of proposedcivil penalty, with each counthaving its own sanction derived from application of this guidance. (3) Did the shipment cause some damage orharm to persons orproperty orinterfere with commerce? If yes, consider aModerate orMaximum weight. GuidanceNote: Thefact that no damage occurredas a result of the shipment is nota mitigating factor. However, damage or harm may aggravate the nature, circumstances, extent, andgravity of the violation. Depending on the degree of damage causedby the shipmentand/orthe existence of other aggravating factors, departurefrom the ranges may be justified It is important to note that death, serious illness, orsevere injury to anyperson, orsubstantial destruction of property, warrants additional consideration of aggravation of the totalpenalty.

c. Violator's Degree ofCulpability. TheMatrix, Figure C-1, considers the relative

· culpability ofthe violator. This section ofthe analysis further evaluates the degree ofculpability

ofthe violator. (1) Is the violator the manufacturer ofthe hazardous material? Ifyes, consider a Maximum yveight. GuidanceNote: A manufacturer of a hazardous material is expected to have complete knowledge of the nature of the hazardous material it manufactures or uses; thus, a high degree of culpability will ordinarily be imputed to it. , (2) Did someone other than the violatorprepare the shipment for transportation? If yes, consider a Minimum orModerate weight. GuidanceNote: Facts supporting an affirmative answer to this question may be cause to mitigate culpability and/orpltrsue a separate enforcement action against othef'f'espcmsible

. parties who handled the shipment. A shipper that reships materials received from another person in the samepackaging is independently respons'ible for ensuring the shipment complies with the HMR. Nevertheless, the reshipper is generally considered to have a lesser degree of culpability for compliance of thepackage as received However, 

## if the reshipper unpacks and/or repackages the shipment, the reshipper remains as culpable as the originalshipper and generally is not accordedmitigation under this weighting factor. (Forpurposes of this section, a "reshipper" refers to aperson, other than the original offeror, who offers a shipment of hazardous material for transportation.) 

### (3) Did the violatorreasonablyrely on incorrect information from another source? If yes, consider a Minimum weight.



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Guidance Note: Detrimental, reasonable reliance on anotherparty may be a mitigating factor when considering the violator's degree of culpability. For example, reliance on an inaccurate Material Safoty Data Sheet (MSDS) wouldbe mitigating. (4) Does the violatorhave a history ofprevious HMR violations? If yes, consider a Moderate orMaximum weight. GuidanceNote: To establish a violation history, aprior violation must be an actual finding of violationpursuantto a legal enforcement action. Special agents shouldattempt to determine the corporate structure of the violator andwhether other business entities ornames are orhave been usedby the entity in order to obtain a complete violation history

. .The number andage of violations shouldbe considered. Ordinarily,findings of violation more than·5years olddarry less weight, unless a continuing pattern of violation exists.


### d. OtherFactors. (1) Each case must be evaluated on its particular facts. As such, many cases maypresent unique scenarios and aggravating ormitigating factors that are notroutinely seen. Ifan aggravating ormitigating circumstance exists that is not adequatelyaddressed elsewhere in the sanction guidance, it maybe included and assigned a weight underthis section. The factor should be clearly identified and explained 

### inthe analysis portion ofthe EIR and carefully scruti.Qized by legal counsel. Guidanc,e Note: For example, a shipment of a singlepackage containingseveral different hazardous materials maypresent an aggravating factor. The degree of seriousness of this factor will increase 

## if the hazardous materials are incompatible with each other and, therefore, create an increased risk. Mitigating factors may also exist that have not been adequately considered. For example, a shipment containing a de minimis quantity of material or an amount that would have qualified under the smallquantityexception of 

### 49 C.

### FR. § 

### 173.4 maypresent a mitiga{irzgfactor 

## if as a result there was a

### redu~~d risk to safety in

### transpo~tation. That the

### material~ould have been shippedas a consumer commodity can also be a mitigating factor.



### e. DeterminetheFinal Aggregate Weight ofthe Case. (I) All the responses/weights are evaluated to determine a fmal aggregate weight for the case (Minimum, Moderate, andMaximum.). Questions receiving a no response will notbe included in

### this evaluation. To determine the fmal aggregate weight, the agent or attor.ney. must exercise his orher discretion inlight ofthe statutoryfactors and knowledge ofthe particular. facts ofthe case. The facts ofthe particular case will dictate the relative importance ofeach of the weighting factors in reaching the final aggregate weight. The fmal aggregate weight should be decided as a result ofcareful**analy~is,** not a mathematical averaging. 

### It is possible that a single weighting factor may outweigh all others. The agent orattorney's analysis should always be explained inthis regard. · 

### C-8i. /**~** 10/01/0.7 2150.38

Guidance Example: A case involving (l hazardous material in the lowest riskcategory may be evaluated to have a maximum weight because of the large quantity shipped or the damage resulting from the shipment. f. · Utilize the Matrix: (Figure C-1). (1) The sanction ranges under the offeror and offense categories ofthe**Sanct~on** Guidance Matrix reflect the relative culpability ofthe violator and the nature, circumstances, extent, and gravity ofcases for the majority ofviolations. Consideration ofthese particular statutory factors tinder the Federal hazardous material transportation law is built into the Matrix. Further analysis ofthe statutory factors is required to determine the appropriate sanction within the ranges established underthe Matrix. This analysis is performed in subparagraphs 8.a.-e. After determining the final aggregate weight ofthe case under subparagraphs 8.a.-e., that weight is applied to the appropriate Matrix range to identify the recommended sanction amount for each ofthe relevant violationgroups and for the case asa wl:J.qle. 

### Althoughthe :nohce ofprop.osed civil penalty may cite numerous violations ofa particularpart or subpart ofthe HMR, unless upward departure isjustified, a single penalty amount for each violation group is ordinarilyused to reach the full sanction. (2) Instructions.

• Identify the appropriate category for the type ofentity and the nature ofthe offense involved in the case. Refer to the Definitions Sectionthat follows the Matrix 

### inFigure C-1 for guidance. Go to the intersecting box and identify the applicable sanction range for each violation group.

., • Apply the conclusion reached inthe subparagraphs 8.a.-e. weighting analysis to assign a saflction amount within the minimum, moderate, ormaximumportion ofthe sanction range. for eachrelevant violation group. The recommended civil penalty at this stage is the sum ofthe sanctions for each ofthe applicable violation groups. A sanction should notbe assessed for a violation group ifthere have been no violations ofthat part or subpart ofthe

# BJv.IR. The sanction amount for each violation group need notbe identicalbut ordinarily is witiri:rl the portion ofthe particular sanction range that represents the overall weight ofthe case. (3) Departure from the Matrix ranges. The ranges ofpenalties specified inthe Matrix (e.g., $250-$550) are intended to cover the majority ofcases involving violations ofthe HMR. The facts and circumstances ofa particular case,however, mayjustify either an upward or downward departure from the specified Matrix ranges. This sanction guidance anticipates departure from the specified Matrix ranges whenjustified. A case involving violations in which the nature, circumstances, extent, and gravity ofthe incident are particularly severe or egregious, · mayjustifyupward departure from the specified ranges. Ifthe investigating agent believes, based upon the facts ofa case, that a penalty should exceed the specified Matrix ranges, the agent should consult with legal counsel before further processing ofthe EIR. (However, inno case may the civil penaltyper violation exceedthe maximum allowed bylaw.) Conversely, the investigating agent may believe that mitigating factorsjustify a downward departure from the
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Matrix range. Consultation with legal counsel is not necessary inthe case ofa recommended penalty that is less than thatprovided 

### in the Matrix. (However, inno case may the civil penalty per violationbe less than the minimum allowed bylaw.) 

### In either situation, however, the agent is to provide a detailed explanation ofthe basis for the decision to go outside the ranges. ( 4) Violations ofpart 175 regulations, which establish particularrequirements for air carriers and other aircraft operators, are contained in a separate matrix. However, such operators often 

### offerhazmat for air transportation as well as accept and transport it. As such, the operator may be liable for violations as a business entity within the main Matrix as well as for the specific part 175 violations. g. Impact ofOther StatutoryFactors. The Federalhazardous material transportation law also requires consideration ofa violator's ability to pay a civil penalty, the impact ofthe civil penalty on the violator's ability to continue to do business, and other matters thatjustice requires. Consideration ofthese factors may result in adjustment ofthe recommended civil penaltycalculated

### -in subparagraph 8.f. 

### In situations wherethe agentor attorney is 

### inpossession ofmitigating information, such an inability to pay the recommended civil penalty orcorrective action taken, reduction ofthe recommendedpenalty maybe appropriate. Mitigating information shouldbe sufficiently reliable, uncontroverted, and documented inorder to supportreduction of the recommended civilpenaltyprior to issuing the notice ofproposed civil penalty. (1) Abilityto pay or continue in business. Historically, the FAA has considered these factors after'the issuance ofthe notice ofproposed civilpenalty due to theabsence ofreliable financial information on which to base a reduction prior to the issuance ofa notice. This Sanction Guidance recommends thatthe special agent make efforts to obtainreliable information regarding the violator's size and financial condition for review priorto the**issu~ce** ofa notice.· This information will be transmitted to the legal office for consideration. Itis recognized that it may not always be possible for the special agent and/or attorney to obtain reliable financial information on a particular respondent, that financial circumstances change, and that information may beprovided after the issuance ofthe notice that may warrant further consideration ofa respondent's ability to pay.

• The investigating agent will attempt to include fmaticial information-as an exhibit inthe EIR. 

### Itis anticipated that this information, ifavailable, willbe obtained from reliable fmancial data bases. Financial documentation should include, butneed not be limited to, information concerning the violator's corporate structure, business address, officers, number of employees, and gross revenues.

• The investigating agentprovides a statement or comment with respect to the fmancial information obtained but ordinarily does not evaluate the financial condition ofa respondent withrespect to its ability to pay a proposed civil penalty. The investigatmg agent's statement should encompass areas like the number ofemployees, gross revenues, and nature of business ofthe violator.

• FAA legal counsel reviews the fmancial information provided inthe EIR and evaluates its sufficiency andrelevance to the recommended civil penalty. Legal counsel may
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determine ifmore current information exists concerning the fmancial condition ofa respondent and ifthat information substantially differs.from the information available at the time of preparation ofthe EIR. Ifthere is a basis for determining that the recommended sanction is inappropriate basedupon the fmancial information provided in the EIR, the recommended sanction is adjusted prior to issuance ofthe notice ofproposed civil penalty. This is a preliminary consideration ofa company's ability to pay. As such, pre-notice adjustment ofa recommended civilpenalty does not preclude further consideration ofa respondent's fmancial claims after issuance ofthe notice. (2) Corrective Action.

• The most common othermatter that the FAA takes into considerationis corrective action. Corrective action that results in mitigation is remedial actionthat exceeds the minimum legal requirements. Theprimary factors in determining the appropriate amount ofpenalty reduction are the extent and timing ofthe corrective action. 

### In other words, mitigation is**detellllin~fi** o:q the l;la::;is qfhow 

## :n:ulch .correctiYe action was taken.andho.w

. .quickly the action was taken. Systemic change intended to prevent future violations shouldbe given greater consideration. Similarly, corrective action that commences upon the violator's frrst learning of the violations ordinarily is given greater credit than corrective action that conimences only after the violator receives the letter ofinvestigation orthe notice ofproposed civil penalty. Mitigation ofa recommended civil penaltybasedupon corrective action should be**referenc~d** in the Notice ofProposed CivilPenalty so that the respondent is onnotice that credit already has been given for such action. (2) Status ofviolator as a small business entity or concern. See subparagraphs 5.a.-b. above. ··

### 10/01/07

OFFENSE CATEGORIES I. Declared Shipment 1. Shipping Papers 2. Labels 3. Markings 4. Packaging 5. Training 6. Emerg. Response 7. Release into Environ. 8. Other H. Undeclared ShiQment Within Hazmat
· Quantitv Limitations

1. Shipping Papers 2. Labels ' 3. ·Markings 4. Packaging 5. Training 6. Emerg. Response 7. Release into Environ. 8. Other ill. Undeclared Shipment Hazmat Forbidden on, or exceeds gtvlimits for, PassengerAircraft 1: Shipping Papers · 2. Labels 3. Markings 4. Packaging 5. Training 6. Emerg. Response 7. Release into Environ. 8. Other ·IV. Undeclared Shipment Forbidden on, or exceeds gtv limits for, All Aircraft 1. Shipping Papers 2. Labels 3. Markings 4. Packaging 5. Training 6. Emerg. Response 7. Release into Environ. 8. Other V. Intentional or 

### MATRIX& DEFINITIONS (Figure C-1)

C. BusinessEntity that uses or handles A. Individual* B. Business Entity hazmat in the course ofbusiness 250-550 250-1,100 500-2,200 250-550 250-1,100 500-2,200 250-550 250-1,100
. 500-2,200 250-550 250-1,100 500-2,200



### ---------- 450-1,100 500-2,200 250-550 250-1,100 500-2,200 250-550 250-1,100 500-2,200 250-550 250-1,100 500-2,200

250-1,100 1,500-8,200 2,500-11,000

. 250-1,100 1,500-8,200 2,500-11,000 250-1,100 1,500-8,200 2,500-11,000 250-1,100 1,500-8,200 2,500-11,000



### ------------- 1,500-8,200 2,500-11,000 250-1,100 1,500-8,200 2,500-11,000 250-1,100 1,500-8,200 2,500-11,000 250-1,100 1,500-8,200 2,500-11,000

500-5,500 5;000-16,200 7,500-22,000 500-5,500 5,000-16,200 7,500-22,000 500-5,500 5,000-16,200 7,500-22,000 500-5,500 5,000-16,200 7,500-22,000

_ ..........**~-----** 5,000-16,200 7,500-22,000 ....**~.,.** 500-5,500 5,000-16,200

. 7,500-22,000 500-5,500 5,000-16,200 7,500-22,000 500-5,500 5,000-16,200 7,500-22,000

500-32,500 7,500-32,500 10,000-32,500 500-32,500 7,500-32,500 10,000-32,500 500-32,500 7,500-32,500 10,000-32,500 500-32,500 7,500-32,500 10,000-32,500



## ---------- 7,500-32,500 10,000-32,500 500-32,500 7,500-32,500 10,000-32,500 500-32,500 7,500-32,500**10,000~32,500** 500-32,500 

# . 7,?00-32,500 10,000-32,500 ' CONSULT CONSULT CONSULT 

### C-12 2150.38

D. Business Entity thatregularly offers, accepts, or transports hazmat 1,000-5,500 1,000'-5,500 1,000-5,500 1,000-5,500 1,000-5,500 1,000-5,500 1,000-5,500 1,000-5,500

5,000-13,000 5,000-13,000 5,000-13,000 5,000-13,000 5,000-13,000 5,000-13,000 5,000-13,000 5,000-13,000

10,000-32,500 10,000-32,500 10,000-32,500 10,000-32,500 10,000-32,500 I0,000-32,500 10,000-32,500 10,000-32,500

15,000-32,500 15,000-32,500 15,000-32,500 15,000-32,500 15,000-32,500 15,000-32,500 15,000-32,500 15,000-32,500

CONSULT

### 10/01/07 2150.38

Deliberate Violation, or LEGAL- Up to LEGAL- Up to LEGAL- Up to LEGAL- Up to other significant 50,000 per offense 50,000 per offense 50,000 per offense 50,000 per offense aggravation category may be category may be category may be category may be assessed assessed assessed assessed VI. Violation results in CONSULT CONSULT CONSULT CONSULT death, serious illness, LEGAL- Up to LEGAL- Up to LEGAL- Up to LEGAL- Up to severe injun, or lOO,OOOper 100,000 per 100,000 per offense 100,000 may be substantial destruction

.offense category offense category category may be assessed ofJ>ronertv may be assessed may be assessed assessed h. *Sanctions applicable to air carrier and commercial operatorpassengers and crewmembers. The range for the total civil penalty to be assessed, absent mitigating or aggravating factors, is $250 (the statutory minimum) to $1,000.

·E. Group I & II 

### F. Group 

### ill & IV 

### A1R CARRIERAND OTHERAIRCRAFT Air Carriers and Air Carriers and 

### OPERATORVIOLATIONS OtherAircraft Other Aircraft Operators .Operators. Failure to comply with Parts 171, 172, or 173 UsemainMatrix. Use main Matrix. requirements ofthe HMRas an offeror ofhazmat. Improper acceptance ofhazmat for air transportation. (i.e., quan-qty, labeling, marking, packaging, and 5,000-32,500 2,500-16,200 shipping papers)

See 49 C.F.R. §§ 175.30(a)(l)- (4) Failure to inspect hazmat shipmentproperly. 10,000-32,500 5,6'00-16,200

See 49 C.F.R. 

### §§ 175.30(b), (c), (d), (e) Improper storage/securing ofhazmat aboard aircraft. 10,000-32,500 5,000-16,200 Failure to providehazmat training, maintain records of 10,000-32,500 5,000-16,200 training, ormeetminimum requirements for hazmat training (49 C.F.R). ---'". Using untrained/improperly tramed hazmat personnel, 10,000-32,500 5,000-16,200 failure to retainhazmat training records (49 C.F.R.} Failure to notify FAA properly ofincident/discrepancies 5,000-16,200 1,000-5,500 inhazmat shipment. Failure to provide notice to the pilot-in-command. 5,000-16,200 1,000-5,500 Other Part 175 violations. 5,000-16,200 1,000-5,500 Intentional, deliberate, or other significantly aggravated CONSULT CONSULT LEGAL violation. LEGAL- Up to

- l]p to 50,000 per 50,000 per offense category offense category maybe assessed may be assessed Violation results in death, serious illness, severe injury, or CONSULT CONSULT LEGAL substantial destruction ofproperty. LEGAL- Up to -Up to 100,000 per IOO,OOOper offense category · offense category maybe assessed

. maybe assessed 

### C-13 

# I
1

### 10/01/07 2150.38
9. Definitions: Note that these definitions are only for the purpose ofapplying the sanction guidance 

### inthis appendix.

a. Air Carrier and OtherAircraft Operator Groups (1, II, III, IV) -Aircarriers and other aircraft operators are divided into two categories for purposes ofdetennining an appropriate sanction. These categories track the air earner groups established 

### in Appendix B this order. Forpurposes ofhazmat sanction guidance, the FAA also includes other aircraft operators operating in commerce that are ofsimilar size, e.g., part 129 Foreign Air Caniers, part 125 Operators, and part 91 Operators. (1) Group I is comprised ofair carriers with annual operating revenue of$100,000,000 ormore. Other aircraft operators with annual operating revenue of$100,000,000 ormore are included in Group I for hazmat sanction guidancepurposes. (2) Group IIis comprised ofair carriers and othercommercial operators that have an annual operating revenue ofless than $100,000,000, andhave 50 ormorepilots and operate

### 25 ormore aircraft. Other aircraft operators ofthe same size are included in Group II for hazmat sanction guidancepurposes. (3) Group III is comprised ofair carriers and other aircraft operators that do notmeet the criteria for Group 

### II, that is, they have only 6 to 49 pilots, oronly 6 to 24 aircraft. Other aircraft operators ofthe same size are included in Group III for hazmat sanction guidance purposes. ( 4) Group IV is comprised of

### all other air carriers and commercial operators not meeting the criteria for Groups 

### I, II, or

### III. Other aircraft operators ofthe same size are included in Group 

### N for hazmat sanction guidance purposes;
., b. Business Entity. A business, corporation, partnership, Sub-S Corporation, sole proprietor, association, or any type ofcommercial entity. An individual who offers a hazmat shipment in airtransportation in the course ofhis orher self-owned business falls into this category. Itincludes a non-profit organization and all other entities defined under the HMR's definition of person (49 CF.R. § 171.8), with the exception ofan individual (asdefmed below).

c. Business Entity that Regularly Offers, Accepts, or Transports Hazardous Materials in the Course ofIts Business. A business entity that offers hazmat with some anticipated frequency, orpurports to do so, regularly offers hazmat. Forexample, a catalogue company that

· offers hazardous material to its customers would fall into this category, even though its actual

sale ortransportation ofthe hazmatis infrequent orlimited. This category includes manufacturer ordistributor ofhazmat and a freight forwarder. d. Business Entitythat Uses, Handles Hazmat in the Course ofltsBusiness. This category encompasses the business that utilizes hazmat inits business but does not offerit for transportation on a regularbasis, as described above. For example, a manufacturer ofa nonhazmatproduct that uses hazmatinthe manufacturingprocess could fall into this category. 

### It mustbe established that the company ordinarily does not offerthe hazmat itutilizes for transportation, and the shipment inthis instance represents an isolated incident. This type of business is held to a higher standard than the business entity thathas no regular involvement 

### C-1410/01/07 2150.38
withhazmat. The described business entity receives the subject hazardous material in transportation and uses 

### it in'its business; thus, it is clearly onnotice ofthe hazardous nature of the material and the regulatory requirements to whichthe hazmat is subject.

e. Declared Shipment. Forpurposes ofthis sanction guidance, a declared shipmenthas at least one ofthe following communicative indicia---markings, labels, and/or shipping papers that meet the communicative requirements ofthe HMR. A package that has shippingpapers that declare the contents as hazardous material, but is otherwise notmarked or labeled, falls into this category. Forpurposes ofthis definition, a shippingpaper is any document to which handlers refer in.the normal course oftransportation and that complies with one ormore ofthe

·communicative requirements in the HMR for shipping papers. Similarly, a properlymarked and labeled package that lacks shipping papers also falls into this category. An example ofa shipment that wouldnotmeet this definition is one where the offeror states that the shipment contains hazmat, butonly inpaperwork to .which the handlers do notrefer in the normal course oftransportation. f. Hazmat- A hazardous material, as defined in 49 C.P.R. § 171.8, includes and is interchangeable with the termdangerous goods, as used 

### i:ri the International Civil Aviation Organization (ICAO) Technical Instructions. g. Individual -A human who offers a shipment ofhazardous material inhis orherpersonal capacity, without any business purpose·and not as part ofa commercial enterprise. h. Intentional or Deliberate Violation- A violation falls into this category when the offeror, acceptor, air carrier, or aircraft. operatorhas knowledge ofthe requirements ofthe HMR, and willfully circumvents or attempts to circumvent those requirements. For example, an offeror who places a properlymarked and labeled hazmat shipment along withproperly completed shipping papers, into an overpack marked asprintedmaterial, has com.initted an intentional or deliberate violation. i. Undeclared Shipment- Ifa shipment does notmeet the definition ofdeclaredshipment, it is an**undeclar~d** shipment"'

·j. Undeclared Shipment HazmatExceeds QuantityLimits for All Aircraft- An undeclared shipment that is offered for transportation on or transported on any aircraft and the quantity ofhazardous material exceeds the limit, perpackage, for transportation on cargo aircraft, as established in the 49 C.P.R.§ 172.101 Table. 

### k. Undeclared ShipmentHazmat Exceeds QuantityLimits for Passenger Aircraft- An undeclared shipment that is offered for transportation on or transported on a passenger aircraft, and the quantity ofhazardous material exceeds the limitation, perpackage, for transportation on passenger aircraft (but :not for transportation on cargo aircraft), as established in the 49 C.P.R. § 172.101 Table. I. Undeclared Shipment HazmatFQrbidden on All Aircraft- Anundeclared shipment that is offered for transportation on ortransported on any aircraft and the hazardous materialis forbidden 

### in airtransportation on cargo aircraft, as established in the 49 C.P.R. 

### § 172.101 Table. C-15

# ..
..
10/01/07 2150.38

· m. Undeclared ShipmentHazmat Forbidden on Passenger Aircraft- An undeclared shipment that is offered for transportation on or transported on a passenger aircraft, and the hazardous material is forbidden 

### in air transportation onpassenger aircraft (but not 

### in air transportation on cargo aircraft), as established 

### inthe 49 C.F.R. 

### § 172.101 Table.

n. Undeclared Shipment Within HazmatQuantityLimitations. 

### (I) Ifthe Uiideclared shipment is offere<;l for transportation on or transported on a passenger aircraft, the quantity ofhazardous material must be within the limitation, perpackage, for transportation on passenger aircraft, as established 

### inthe 49 C.F.R. § 172.101 Table. (2) Ifthe undeclared shipment is offered for transportation on a cargo aircraft, but not transported, the quantity ofhazardous material mustbe within the limitation, perpackage, for transportation on passenger aircraft, as established inthe 49 C.F.R. 

### § 172.101 Table. (3) Ifthe undeclared shipment is offered for transportation on andtransported on a cargo aircraft, the quantity ofhazardous material mustbe within the limitation, perpackage, for ·transportation on cargo aircraft, as established 

### in the 49 C.P.R. 

### § 172.101 Table. All otherundeclared shipments fit within the defmitions for Undeclared ShipmentHazmat Exceeds QuantityLimitsfor

...Aircraft, or Undeclared ShipmentHazmat Forbidden on ... Aircrafi, see above.

,,



### C-1610/01/07



### CATEGORY "A" {Maximum Weight} RISK CATEGORIES (Figure C-2) 2150.38

Category "A" materials are materials that when released in the confines ofan aircraft can potentially have a catastrophic effect on an aircraft's ability to continue safe flight, resulting in a crash or emergency landing causing injury or death to passengers and flightcrew, as well as persons on the ground.

## C~ 1 Explosives: Division 1.1, 1.2, 1.3,

. Class 2 Compressed Gases All 2.1, 2.2 with Subsidiary Risk 5.1 and All 2.3 PIH Zones A-D Class 3 Flammable Liquids PG I, II, and (PIH) Class 4 Divisi.on 4.1 Flammable Solids PG I, & {Matches) Division 4.2 Spontaneously Combustible Materials PG I (Pyrophoric) Division 4.3 Dangerous When Wet PG I Class 5 Division 5.1 Oxidizing Liquids and Solids PG I, U, e.g., "Chemical Oxygen Generators" Division 5 .

### .2 Organic Peroxides PG II (Type A,B,C,D) Class6 Bivision 6.1 Toxic/Poisonous Materials PG I (PIH) Class 7 Cargo Aircraft Only Quantities on Passenger Aircraft Class 8 Corrosive Material Liquid PG I and {PIH) Forbidden Materials {See 49 C.F.R. § 173.21 & ICAO Technical Instructions) Forbidden Hazmat listed in Dangerous Goods Table 49 C.F.R. § 172.101 

### CATEGORY "8" {Moderate Weight} The materials listed in Category "8" are materials that may not pose an immediate threat to the safety of a flight, but can cause death or injury to persons due to unintended releases in aircraft cabin areas, and potential damage to aircraft structures over a longer period oftime due to undiscovered releases on aircraft structural components. Class 1 Class3 Class 4
Class 5 Class 6 Class 7 Class 8 Division 1.4, 1.5, 1.6, All Compatibility Groups PG Ill Flammable Liquids Division 4.1**Fl~:~mmable** Solids PG II, Ill Division 4.2 Spontaneously Combustible Materials PG II, Ill Division 4.3 Dangerous When Wet PG II, Ill Division·5.1 Oxidizing Liquids or Solids PG Ill Division 5.2 Organic Peroxides (Type E,F,G) Division 6.1 Toxic/Poisonous Materials PG I,JI (NON- PIH) Division 6.2 Infectious Substances ·· · Radioactive Materials, yellow label II, white label I Liquids PG II, Ill Solids PG I; II, Ill 

## Category "C" {Minimum Weight} .,

The materials listed in Category "C" are materials that present the least amount of risk to the transportation system. Class 2 Class 6 Class 7 Class 9 2.2 Nonflammable Gas Division 6.1 Toxic/Poisonous Materials PG Ill All other RAM (LSA, LTO QTY, Instruments, and Articles) Miscellaneous Dangerous Goods {ORM-D and Consumer Commodity}
NQI!;;_ This guidance is not intended to replac4;! the experiencedjudgment ofa special agentwho is convinced, based on the evidence and facts ofa case, that the failure of an air carrier, shipper, freigi:Jt forwarder, or passenger to follow established regulations has posed a risk to aviation safety. C-17t·.s. l)epariltlcn! ofTranspl,lrtation Res.·nrdt and Special Programs**Admini~r.rati<m** Hazardous Materials Incident Report Form Approval OMB i\o. 2137-0039

.-\ccurdlng te> tlte Paperwork Reduclion Act of I995, no persons ar!'required to respond 10 a collection ofinformation unless it dhplays a valid {)MB control number. The valid OMB control numlwr for tlti.s infonnatlon C<>llce!'ion**i~** 21.37-0039. The filling .;mt ofthi• informn.tion is manda.tory and will tllke 96 minutes to complete. 1"\STRUCTIONS: Submit this .report to !he Systems.manager, U.S.

. Rt>search and Special Progrants Administration, OJlke of l!az:u:-dous M.ntt•ri:1ls**Safet~,** I)HM-63, Washington, D.-C. 20590-0001. If space provided for any**it~m** is inadequate, usc a scpnr:•tc**~IH'<:-t** M paper., it,le,l!rf)•ing the o;ntr) number bt>lng completed. Copies ofthis form and instructions can b.e obtained from the Office of Hazardous Materials Website at .llttp://hn:r.mat.dotgov. l f you have nay**que~tions,** you can co.ntaci the Ha:t.:\rdous M:lterlals Information Center at 1·800-H;\IR-4922 (l-S00-467-4922) or**onlin~** at:**.lwp:!/bmcm>\t.dot.go~·.** PART I· REl'OR'f TYPE L Thi;; is**~** repm1: 

### 0 /\) A hazardous**mm~dnJ** incident [g) B) An undeclared shipmt:ur with Ill) r·elea>c C)A >pt·cifkatmn curgo cmk l ,000 gallons greater cmmllning aay ba7.ardou;; maicrials that {I) rec.eiw:d struqu.rnl damage to ilre lr.ding 

### D n:tcn!ion**~ystcm** ordamage ihat requires repair to <1 system imended m protect the luding retention system and (2) did ll<.lt hai'C a**re!c:~s::.** 1. lndicute wbcthel' this is: 

### 0 An initial·report 

### 0 A ,;upplemental (follow-up) r·epon 

### 0 Additional pages P

..\RT II -GENERAL lJ'iC!l)ENT INFOIV•lATION 3. Dale nflnddent: _G_2_'0_9_1_l_l

__________ _ 4. Time

### or lucidcr!!. (US!! 24

..!Jour time): .,.o_7_:o_o

_________ ,_..________ 5. Ea!er Nr,ticmal**Rt~ponse Cent~r**  Report Number (rfnpplicablc): i:> Ifyou submitted a r<:JX)rt to another Fedemi DOT agency,**~'1l1Ct'** the agency !utd report I. Locmion ofhtcitic!li: Ciiy: EARTH CITY County:

--------- Swtt': _r-_'lv_'

____ ..,.-__ ZIP Code (ifkll(Wm): _6_30_4_5

__ _ St!Wl**Addrcss,~vlik** murkct'l'Yarduumc/AirpontBody ofWatcriRiver Mik: 1381\l RIDER TRAlL DRIVE 

### 0 Hlgh>vay 

### 0 Rail Tr:msport<•tion Phase: I§ Loading 

### 0 Unloading Name: UNITED PARCEL SERVICE Street: 55 GLENLAKE PKWY ATLANTA State: C.i!y: 

## ----·------·-------------

l:l.Origm

(if**diffet~eot** fh:m1 shipper**addr~-ss)** [J. Desti11ation: Fcdeml DOT !D Number: Name: NU FASHION Street: 1366 KINGSLAND AVE City: SAINT LOUIS Wt!yhil!!Ship[.ling Paper:·

City: Street 6ugo VIPOND DR MlSSlSAUGA IZR7l2756643505t;74

City:



## ------ l-la7mat Registration Number:

·--------- ·S.!.atc: Hazmat Rcgistmti<:m Numlxor:

State:

State: 14. i'mpcr Shipping Na:mc'(lfHa:z.lll"d<.luS Material: CONSUMER COMMODITI' 15. Tcdum:;licTra<ic Nam.::. !6.**Hw.a~dt•us Clll.~s/**  ORJ\f-D [ki!SW!l! • 

## ---=---- 1 i, ld<:ntiiica!k>n

Number: AEROSOLS

(f..g.. l.!N2764, NA2020) IS. Packing Group: (ifapplicable) 

### 0 \Vater 

### 0 !n Transit Slumgc

GA Zll' ('ode: _3_0_3::t_s_·

__ _

,, MO Zll' Code; 1\3! 33 lol4

ZIP Code:

ON Z!P Code: ISJ'2V4



## -------

19. Quantity

Released:



## ---------------- 21!. Was the materia.! shipped as alul7.antous wa.sre'l 

### 0 Yes lf**y~-s,** provoide the EPA Manifest Number: 2 i. Is this a Toxic by ltthatati<itl (TIH) matcri:ll'? DYes lfycs, provide the Ha;r.ru:d Zone: 11. Was th.:.: material sltipped.tmder an Exemplitm. Approval. orCompeteut Authority Certificate? DYes lfyes, provide the Exemptioa .• Approval, <Jr CA number: 23. Wt•s this art undedart!d h<tir.ank)U

..**~** materials shipment'?':'··=



### -------------·-----------.------
... I'

ART Ill- PACKAGl:'\G iNFORMATIO!\
J.4. Check Packag,ing Type (check only one .. Wmorc than one, list type ofpackaging, copy Pan !11, and C<)l!lpkre fb!' each type): IE] Non-bulk 

### 0 Cylinder 0IBC 0RA.M 

### 0 Cargo utnk :Vlotor VchidqC'TMV'! 

### 0 lank Cctr 

### 0 Portable Tank 

### 0 Other
25. Sec instmctiuns •md enter the appmpliate failure GO<ks ti)Ulld 111 the end ofthe instructions, He sure to enter the C<l<l(.'S from the list that cnmlSpunds wthe p;uticular packaging type dteckcd nh,we.**En~<.•r** the nu.tnber ofcodes as itppropriate to describe the incident. Enter tlw**mo~t** importllnt**f~oi!ure** poim in line I. Ifthere**a•~** mon' than two failure !X'int.s, pr\lvide in rhis fllflllllt in part V.L · · l. What Faikd: N A How Failed' N A**Cause~** ofFailure: 2. What Failed: t·lww Failed: 

## 126a. Provide the packaging identifiClltion.mmicings. ifavailable. !dentillcatio.; Markings: 

## -----------------------------·--·-..**---~--** (Exampk<.--s: lA l!Y 1.41!50/92/USNRB/93/RL, UNJ !H!IY0493/USA/M9339/!()800il200, DOT- I05A- IOGW (RAlL). DOT 406 (H!GHWA Y). DOTS!, DOT 3-A)

26b. For Non-bulk. me, or rwn-spccitkatiou J.lliCkaging, ifidentification markings urc inwmplctc or unavailabt.:, sec instnrctions and complete the following: Single**P:tckag~** '" Ot!Wr l'ackag.ing: Single Package (>f Inner !'a<;kaging {ifIU'Y): l'ackagir;g Type: Material ofCon:muetion: Material r>fCons.tmction: !'klal (any type) Head Type (l)mms only): 

### 0 Removab!<:

27. Describe the p11ckag<: capacity and (he quantity: Single f'uckage; or Ouwr l'ackaging:. Sincle Package nr Inner Packaging: (ifru1y): Package C:wacny: 65 Pounds Package Capacity: HI**Ounce..~ ------~~--------------------**  Amount in l'ackage: !0 J'(lundS Amoundn Package: 120**Ou.nce.~** Number in Shipment Number in Shipment Number Faikd: Number Failed: .,

23. Provide packaging crmstruction and. test**itlf~irmation. a.~**  appropoinl.e: Mrurufacturcr: FIELD l'ACK.-\G!NG Mrumliu

.. 'tllre Date: Sc1inl Numh<:r: Last Test Date:

------------------- (lfTtmkCar, C'!'MV. Portable Tank, orCylinder)

-------------- (lfTauk Car, CTMV, Portable Tank)

----------------- f[fTank Car, CTMV, l'ortllble Tnnk) Head**Thickn~:ss:** (lfTank Car, CTMV)

·----------**(lfCylind~-r}** [fvalvc or device fai!oo: Typo.!: MunufitctW'cr: Model:

29. lfthc packngirrg is tb•· Radi(mctivc**M•I!Crial~,** cmnpletc tile ·following: Packaging Cntcgory: 

### 0 Typer\ 

### 0**T~pcB** 

### 0 TypcC 

### 0 0 Industrial Packaging C'crtitlcatil>n: 

### 0 SelfCertified 

### 0 U.S. Ce.tification Certilication Number:**------------~-----------** Nuclidc(s)**Pres~"l!t:** Trdllsport Index: Activi!y:. Critical Safcl;y Judex: 

# L

__**•r~Qn=n~!hXA)~T~F~5~S(rum'** ..

## 'l~f0~!.~2~00~4~i-------------------------------------,r•u~ge~2~--·-------------------------------- 

## -------·-·--··.{

·····-·····-..........------·--···---------·-

,PART IV- CO!'iSEQUEi'.'CES

30. R.:sult oflnddc:nt (du.:ck all that atwly): 

### 0 Spillage 

### [J Fin: 

### 0 Explosion 

### 0**fv1ntt~da! Ent~rcd** **\Vaterw~1y/$wnn** Sewer 

### 0**Vapor(Ga.~) Di~persinu**  0 Envinmmentlll Damage [8J No Rcle:t5<.< 

### 0**FirelE~1S** Rt:fX.H1fi. 

### D ln-house Cleanup [8J Othc.r Clcarmp
J2. Uumng

... -s: Was the total <.lamagc cost moru than SSOO'? DYes [8] No**!fy~s. e~u:cr**  the tol!('wmg inform;1don: tfno, go to question 

### :n. !VTateria} 1 .OSli'.: t•mpcrty Damage: R csponc<c Cost:**Remcdi~ttion/Cieanup** Cosl: 

### s $

______________ __ 

### s________________ s__________________ !See damag.: definitions in the insU"Uctlcms)
33u. Did thehn7.anlous material cause t;r ..:omrihutc to a huma!l fitta!ity? DYes Ifyes, enter rht**numhc~r** nf**!iualiti•~s** resulting from the**h~lztmlous** material: Fatalities: Employees Responders
33b. Were !.here human r:1tnlitics tht1t did ntlt result from the hazardous material:' DYes @No
34. Did the hat.Mdous maw,ria! cause orcontril:m!i.llo personal injury'! DYes lf**ye~,** enterthe**numb~r** ofinjllries resulting from !.he hazardous matcri?.l: H<>spita!izcd f/lllmitted only): Respqnders**Non-Hnspitaliz~d:** Employees (e.g,; On site first aid (}rEmergt:ncy Room observation and relt!!ISe)
35. Did the hnzardm

..**~ materi~•l**  cause or contribute to an evacuation? [8JNn lfyes, provide the f\11lowing infonnation: Tow! number<.>fgeneral public e-vacuated Total number ofemployees evacuated Dumtion oftiw evacuation

------- (hours) 3(>. Was a major tr.Uillp<Jrtation rutety or facility closed?
37. Was**i.h<~** material involved iu a cmhor derail!tlllnt? Ifyes, provide the following mformation: Vehicle <Jvcrturn? Vehicle left n>ndwayitrack'! DYes [8J No ··DYes**W~ather ~tmditi<ms:** 

DYes DYes DNo 0No General Publk'

-----
ifyes, how many''

Gem:rall'ublic General Public

Total Evacuated



# ..

Ifyes, how =my! (hours)



### 1-:-------·--

..

### ·---·--------------------------------------·---------t PART V- AIR INCIIU:NT INFORMATION (please refer to §175.3lt·o**~port** a discrepancy for air shipments)
3&.**Wa.~** the shipmen\ on a passenger aircraft'! [EINo lfye>, was it tendcn'd as cargo, oras passenger baggage'! 

### D Cargo 

### 0· Passenger baggage 3'}. Where did the incident oc.:ur (iflinko,Jwn, check the appropriate box for the location wbcre the incident was discovered)? 

### D Air caniercargo fnctlity 

### D By surfil.re toffrom ailpmt [8J Sort cemer 

### 0 Dwi.ng !light

·40. Wh:n**phlc~cM** lmd the shipment already undc•·gmte priw to the**i~tddent'?** (Check**~u** that apply) 

### D Shipment had IIlli been transported 

### 0 Transportedby air (first !light) @**lnitialtrnn~rx-,rt** by highway to cargo facility 

### 0 Tnmst\::r at sort ccmtcr!cargo facility 

### D Haggage aren 

### D During k>atfingJunloading nf'ain::ra!l 

### D Transport by air**(subs~-quent tl!ght.~)** **--------~------------------------------------- ~~'"-,'** **~>·;~·.,.,** 

### .,.,_,**~~~** ·:.. ·.::· ...'!.: 

### r---·-..----··------·----·-.----- .**--···~-------------------..,**

### fP,~Rl' Vf

### :_~~.!_"!'~(~:"OF**EVE~TS** & PACK-\GE.FAH.U.RE

--- .· . . . . -- . --· . . . 

# I**!A~s.:nhl:)** rhc sequence ot ev·ems that k<i to the mculent an(! the uctwm; tak<.:n at the tmt<.: !twas**dJ~covercd.** Dcscnbc the**pa~kage flulur~**  .. mdild:ng the. SIZe and**l<lCU~l\lH** o! holes. c.r __**~cks**.. ct._c.**f.'ho-togmp~~ a~d**  c. 1 iagmm-'..>hou_l.d**~.e** suhmitted..ifnccdc.d lbr clari!ication. E.sti.mattl the dumtion ofthe**rd~ase.** ifp<J>sibh Describe what. wa.s d.om.,-w m.;tigatc.· t.he dkct.> o! th<J release. ( ontmue on m!tlrttonul**so~cts** tfnccessary.

. \I:IHr.E LOAD!NG**PACKAGt~** UMDER NO llCED A R.-\TTUNG NOISE COMM!:--IG FROM THE l'ACKAGE.LOADER NOTW!ED SLWERVfSOR Ti!All1!.: !lEARD 

## IJ\ RATTLING NOISE A:-iD THOU<lHT l'HEI<.E**~-1AY** BE AHROSOL CANS IN THE PACKAGE. !',\CKA(;E V!i\$ OPFN AND FOUND TIIAT THE PACKAGE 

# I**CONTAH~ED** ANOTHER BOX INSIDE T!L\T W_.;s !-..IARKfoD ORM-D CONSUt\!ER COMMOD!T\' HAIR SI'Ri\Y L_ !\VEL i AEROSOL J>ACKAOE WAS TAKEN OUT OF THF. Uf'S SYSTEM AND HMSC WAS CALLED. WE WERE TI!EN INST!WCTED TO TAKE PICTURES AND E·\·lAIJ TilEM AND HOI D FOR POSSIBLE -l·AA !NS!'EC'T!ON,

I PART VU- R.ECOMiVtENOATIONS/AC'rtONS TAKEN TO PREVI>;NT Rl':C.'Ul{Rl':NCE 

### ---·**----·----------------------------~------------------------------,** Where you utc able iu du so,**su~ga;;t** or dt:scrioo changes (such a.s atklitiomll training, use ufbetter packaging, or improved operating**pro~edun-:s)** _to help prevent recurrence. Provide recommendations ·fbr mlpmvement m lul:l'.ardous materials ttansp<lrl.tttion beyond !he control ofyour individual company. Continue on additional sheets i.fnecessary.



# ..

PAin VU! -CONTACI' !Nl.-ORMATION Cont:wr.'s Name (Type or Print): RITA BURKE**~~~~------------------** Telephone Numtx'f: (404 i H288'109 Contact's Title: DANGEROUS GOODS MANAGER (404) 8284108 United l'arccl Service Hrur.mat Rcgistartinn Numb<."!· ; 12!.90555**~-----------------------------** Business Name arid Address: {ifnol already provided)

. 55 Gfcnlake Pkwy Atlan1a Gt\ J0328**~~@~_P_s_._c_o_~_l**

### _________________ Date: 

### !EJ Ciirricr 

### 0 Sllippcr 

### 0 Facility 

### 0 Oilier 021!5/l l 

# I E-mail Addre>s: tn;parer i:;: Form !JOT**"'f"'~'5&"'(!{'"l:-'1.1'"'("'fl,..l·"'2t"'Jfl"'4"")--------------------.....,l',...age-4-:-------------------------------'**

### Photograph #1

'o 

### I certify that this photograph fairly and accurately depicts the undeclared hazardous**materials~** 

### This is a. photograph ofthe outside package that contained twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray· ·(Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for. this product is Aerosols, 2.1, UN 1950 and 

### .was offered for air transportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11 , 2011.



# -. 

# '/1'--. 

# \

### Photograph #2



# .. I certify that this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofthe outside package that contained twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for airtransportation tothe''united Parcel Service (IPXA) Tracking Num-6er 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11, 2011.

### Photograph #3

't, 

### I certify that this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofthe outside package that ,contained twelve 1 0-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1 950 and was offered for air transportation to tne United Parcel Service (IPXA) Tracking N'Lim6er 1ZR712756643505874) from Saint Louis, Missou'ri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11 , 2011.

### Photograph #4



### I certify that this photograph fairly and accurately depicts the undedared hazardous materials. This is a photograph ofthe outside package that contained twelve 1 0-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for air transportation to 

## ttie United Parcel Service (IPXA) Tracking N"Lrmoer 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11 , 2011.



# L)j I 'C.-·

### Photograph #5

I certify that this

photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofthe top of the outside package that contained twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) MaximumVolume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for air transportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11, 2011.

### Photograph #6

I certify that this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofthe top ofthe outside package that contained 

### twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for airtransportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11 , 

### 2011.

### Photograph #7



# .. I certify that this photograph fairly and accurately depicts the undeclared · hazardous materials. Thisis a photograph ofthe bottom of the outside package that contained twelve 

### 1o-ounce aerosol cans ofCompare Products Professional HC1ir Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping desc[iption for this productJs Aerosols, 

### 2.1,**UN1~§Q** 

### and was offered for airtransportation to the United Parcel Service (IPXA) Tracking Number 

### 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 

### 11 , 2011.

### Photograph #8

I certify that this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofthe packing slip found inside the package that contained twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for air transportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11, 2011.

### Photograph #9

I certify that this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofthe inside package that contained twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for airtransportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11, 2011.

### Photograph #1 0



### I certify that this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofthe inside package that contained twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description forthis product is Aerosol&, 2.1, UN1950 and 'N,§§Offered for airtransportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed on or about February 11, 2011.

### Photograph #11

I certify t.hat this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofone ofthe twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for air transportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Missisauga, Ontario, Canada as provided to me in email and photographed on or about February 11, 2011.

### Photograph #12

I certify that this photograph fairly and accurately depicts the undeclared hazardous materials. This is a photograph ofone ofthe twelve 10-ounce aerosol cans of Compare Products Professional Hair Spray (Compares to Sebastian Mega Hold) Maximum Volume and Hold. The proper shipping description for this product is Aerosols, 2.1, UN1950 and was offered for air transportation to the United Parcel Service (IPXA) Tracking Number 1ZR712756643505874) from Saint Louis, Missouri to Mississauga, Ontario, Canada as provided to me in email and photographed onor about February 11, 2011. 

# /C) I'-

## NU FASHION BEAUTY SUPPLY DISTRIBUTORS

25 February, 2011
U.S. DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION 10801 PearTree Lane, Suite 200 Saint Ann, Missouri 63074 Dear Special Agent Louis Umland-Messer: '**~·"** /

# '~) 1366 KINGSLAND AVE ST. LOUIS, MO 63133.

. . (314) 725-8434 FAX (314)725-8436' A



# ' ,v,

. . o\.9

. rr\IV 1?/7>

Nu Fashion Beauty Supply was established in 1969 by· my father and mother Sun Moo Chyu and Kyung Ja Chyu. We are a ·minority owned small business as defined by the criteria of the Small Business Administration. We are a sole proprietorship and therefore have no corporate officers. Although we do operate retail stores, 13(:36 Kingsland Ave is our only office. We have not had any hazardous materiai shipment training ahd typically never ship prOduct by air. We do ship aerosols by ground L TL and ground UPS and have since contacted our shippers for proper shipping instructions. We have 20 employees, five ofwhich work in the offic;:e warehouse.. On February 9, 2011 we shipped undeclared hazardous products to our vendor Assured Packaging in Mississauga Ontario. We have in the last ten years shipped no more than 4 shipments to Canada, most of them ground and all but one, check payments. We recently received a prOduct that had a formulation problem and was requested a sample. Although, nonetheless labeled improper1y, our intentions were to ship by ground as there was no urgency. We were unaware that the product was hazardous and that specific requirements needed to be met for shipping. Our UPS driver can even contest that we even needed his help to print invoices that are required to accompany international shipments. After 40 years ofdoing business, you can see that shipping by air, or international is not a common practice by our company, and that we are just unfamiliar with the UPS Wor1dship software and were careless with this shipment. Our bookkeeper's husband is a shipping manager for Firmnich Inc, A major manufacturer, is hazmat certified and has agreed to come to us and instruct us on hazmat shipping. I am also looking into enrolling in a UPS Hazmat program for ground shipping. We have no intentions of ever shipping hazardous materials by air·in the future; However, if the FAA deems it necessary I will also enroll in a class for air shipping. I've been working for this company for over ten years, but the last two have been very rough. Two years ago my father was diagnosed with stage 4 colon cancer and my father and mother were forced to retire. I have since then·'taken full responsibility for the operation of our business, Xhere are many nuances to this business that I have rapidly been trying to learn. I fully understand the seriousness of this violation, and take full responsibility. I hope you can please have leniency when accessing the fines for ourviolations.**~~ely,.** · ·

# ~tL GayleChyu Vice President 

## /

### D&B Business Infonnation '

Decide with Confidence· 

## ·Busin
To save report(s)'to your PC, r:;lick here for instructions. I@ Print this Report Copyright 2011 Dun & Bradstreet- Provided under contract for the exclusive use of subscriber 263751116L AITN: Dave

NU FASHION BEAUTY PRODUCTS 1366 Kingsland Ave Saint louis, MO 63133

This is a headquarters location. Branch(es) or division(s) exist. Telephone: 314 725-8434 Fax: 314 725-8436 Manager: SUN M CHYU, OWNER Year started: 1969 · Employs: History: SIC:
Line of business: 20 (3here) CLEAR 5087 5999 Whol service establishment equipment, ret mise merchandise

SUMMARY ANAl YS!S Report Printed: MAR 14 2011 In Date

D&B's Credit limit Recommendation D&B's industry and risk-based limit guidance '' Learn More ff View Now Payment Trends Profile Payment trends and industry beJ;Jchmarks n, Learn t•,•1ore :1 View Now D-U-N-S Number:
D&B Rating: Number of employees: Composite credit appraisal: D&B PAYDEX®: . ... . .......................**~-** .....**~**... 88-439-7696
1R3 1R is 10 or more employees. 3 is fair.

............, .............................................................................**~......................** ··; 

### ID&B PAYOEX: 

### 65

. . 

### i 

# IVlfhen weighted by dollar anio'Lint; payments to ! i suppliers average 19 days beyond terms. i !-...-

...............,_,,...,.,.,,..........,.......**_MO'W""""OO<-,)NN~** ...**N;-...,.~**...................**.-~**..-, ....-.........R

.._,,""""'""""""''"'""""'""""''

.. """"'""'"'; 0 

# v t(W; 

### .•, MttMj 

# raf tOO 11iiyto l!i[iow :ll!l days slC!W ll'ill!lmp.t ;!J.n,11ieiipater, Based on up to 24 months of trade.**~** Enhanced payment trends and industry
· benchmarks are available on this business

D&B Rating: 1R3 Number of employees: lR indicates 10 or more employees. Composite credit appraisal: 3 is fair.


### https://www:dnb.com/deliverv/42/426163/426163.BIRH0.2175)477540615.tng.print.htm... 3/14/2011

### D&B Business Information "" )ort: NU FASHION BEAUTY PROD7 

### TS Page 2 of7

The 1R and.2R ratings categories reflect company size based on the total number of employees for the business. They are assigned to business files that do not contain a current financial statement. In 1R and 2R Ratings, the 2, 3, or 4**creditwort~iness** indicator is based on analysis by D&B of public filings, trade payments, business age and other important factors. 2 is the highest Composite Credit Appraisal a company not supplying D&B with current financial information can receive. For more i,nformation, see the D&B Rating Key. Below is an overview of the company's rating history since 01/23/98: D&B Rating Date Applied 1R3 11/20/08 1R2 08/02/08 1R3 10/01/07 1R2 07/28/05 1R3 12/30/03 1R2 08/19/02 1R3 08/03/00 1R2 04/28/00 1R3 02/25/98 01/23/98 The Summary Analysis section reflects information in D&B's file as of March 14, 2011.**~** How does NU FASHION BEAUTY PRODUCTS's payment record compare to its industry?

A Payment Trends Profile will show you - View Now

Ifyou have questions about this report, please call our Customer Resource Center at 1.800.234.3867 from anywhere within the U.S. If you are outside the U.S. contact your local D&B office. · 

### *** Additional Decision Support Available 

### *** Additional D&B products, monitoring services and specialized investigations are available t9 help you evaluate this company or its industry. Call Dun & Bradstreet's Customer Resource Center at 1.800.234.3867 from anywhere within the U.S. or visit our website at www.dnb.com. HISTORY
The following information was reported 03/09/2011: ,, Management: SUN M CHYU, OWNER Ownership information provided verbally by Manivanh Manifhonh, Bkpr, on Jan 07 2010. Business started 1969 by Sun M Chyu. SUN M CHYU born 1937. 1969-present active here.

CORPORATE FAMILY
Click below to buy a Business Information Report on that family member. For an expanded, more current corporate family vieW 1 use D&B's Global Family Linkage product.

Branches (US): 

### https://www.dnb.com/delivery/42/426163/426163.BIRHQ.21753477540615.tng,print.htm... 3/14/2011

### D&B Business Information r 

### 1ort: NU FASHION BEAUTY PRODT TS Page 3 

### of?
[] · Nu Fashion Beauty Products [] Nu Fashion Beauty Products 

## D Nu Fashion Beauty Products 

## 0 Nu Fashion Beauty Products [] Nu Fashion Beauty Products 

## 0 Nu Fashion Beauty Products [] Nu Fashion Beauty Products 

## 0 Nu Fashion Beauty Products 

## 0 Nu Fashion Beauty Products

03/09/2011 Saint Louis, MO Saint Louis, MO Saint Louis, MO Saint Louis, MO Saint Louis, MO Saint Louis, MO Saint Louis, MO Saint Louis, MO Saint Louis, MO DUNS#**14~685-0313** DUNS # 82-782-4991 DUNS # 82-782-5683 DUNS# 96-238-5829 DUNS # 96-238-6025 DUNS # 14-685-0321 DUNS # 96-238-6389 DUNS# 96-238-6199 DUNS # 82-780-8770

Description: Wholesales service establishment equipment, specializing in beauty salon or barber shop equipmeht (70%). Retails hair care products (30%). Terms are cash, Net 30 days. Sells to general public and retailers. Territory : United States. Nonseasonal. Employees: 20 which includes owner. 3 employed here. Facilities: Owns 60,000 sq. ft. in on 1st floor of a multi story steel building. Location: Central business section on side street. Branches: This business has additional branches; detailed branch information is available.jn D&B's linkage or family tree products.
SIC & N.AICS
SIC: Based on information in our file, o&B has .assigned this company an extended 8-digit SIC. D&B's use of 8-digit SICs enables us to be more specific to a company's operations than if we use the standard 4-digit code. The 4-digit SIC numbers link to the description on the Occupational Safety & Health Administration (OSHA) Web site. Links open in a new browser window. 50870100 59991304 Beauty salon and barber shop equipment and supplies Hair care products D&B PAYDEX NA;J:CS: 423850 446120 Service EstablishmenfEquipment and Supplies · Merchant Wholesalers Cosmetics, Beauty Supplies, and Perfume Stores



## fiB Enhanced payment trends and industry benchmarks are available on this business The D&B PAYDEX is a unique, dollar weighted indicator of payment performance based on up to 35 payment experiences as reported to D&B by trade references. 3-Month D&.B PAYDEX: 

## 64 D&B PAYDEX: 

## 65 https://www.dnb.com/delivery/42/4261.63/426163.BIRHQ.2175.3477540615.tng.print.htm... 3/14/2011

# • D&B Business Information T 

### ort: 

### NU FASHION BEAUTY 

### PRODT. TS Page 4 of7 

## i When weighted by dollar amount, payments to 

### I**t.~~ppli~~~ ~Y~E~Q~** **~? 9~Y~** **~~Y?~9 t~~r:.:.s:..**  .... ... ... 

## J (i fmsiif t(i(i· 

# P 

# i

Based on trade collected over last 3**~onths.** 

### !When weighted by dollar amount, payments to 

## !suppliers average 19 days beyond terms. Hlll 

### f f

Based on up to 24 months of trade. When dollar amounts are not considered, then approximately 70% ofthe company's payments are within terms.

The Payment Summary section reflects payment information in b&B's file as of the date of this report; Below is an overview of the company's dollar-weighted payments, segmented by its suppliers' primary industries: 

### r-·-···---·-.,
..**~,·-~-~~·~··~--~-·~T:r;;t;:;;·l·~i~t~i···o;;!l:;;·~~i;;·;:9~;tiii9'h·r~wi'th·i·~-:"·**

## ...**,~--·--·-o;;~·si·~;···~-·-** 

# ..····i 

### !..

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# ~~~~**~!t.** .J

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# ~(;~it 1

# -~(~~~j**:~~-~~~~<~!:r9o**

# 90> ) Top industries: Electric services 5 9,500 

## i Nonclassified 4 2,250 Mfg toiletries 3 95,000 Short-trm busn credit 2 20,000 Telephone communictns 2 1,250 Trucking non-local 2 -1,00D Mfg home cook equipt 1 15,000 Mfg surface agents 1 5,000 Whol office equipment 1 1,000 Radiotelephone commun 1 500 OTHER INDUSTRIES 3 850 Other payment categories: Cash experiences 9 300 Payment record unknown 1 100 Unfavorable comments 0 0 Placed for collections: With D&B i 0 0 

### ! . Other 0 N/A Total in D&B's file 35 151,750 The highest Now Owes on fife is $30,000 · The highest Past Due on fife is $10,000 2,500 1,000 35,000 15,000

1,000

750 15,000 5,000 1,000

500 500 f i 50 100

0

35,000 89; 67 50 38 100

13 50
50 100

85 11 33 50 62
49 50 50

15 38
50 50 i

- t

- f

- i

D&B receives over 600 million payment experiences each year. We enter these new and updated experiences into .D&B Reports as this information is received

.

.**~** Have NU FASHION BEAUTY PRODUCTS's payment habits changed over time?

A Payment Trends Profile will show you - View Now



### https://www.dnb.com/deliverv/42/426163/426163.BIRH0.2175.3477540615.tn!l.nrint.htm ':l/lLI./"){)1 1

# .. D&B Business Information y 

### 1ort: NU FASHION BEAUTY PRODr TS Page 5 of7 

# . PAYMENT DETAilS
Detailed Payment History

Date Reported Paying Record High Credit Past Due Selling Terms Last Sale (mm/yy) ($) ($) Within

02/11 'Ppt 1,000 0 Ppt 250 0 Ppt-Siow 30 15,000 1,000: 2-3 mos Ppt-Siow 30 500 250 1 mo Ppt-Siow 60 1,000 0 4-5 mos Slow 15 500 0 0 6-12 mos Slow 30 5,000 5,000 5,000 1 mo Slow 30-60 750 500 500 1 mo (009) 50 0 0 1 mo Cash own option. 01/11 Ppt 1,000 0 0 1 mo Ppt 250 100 0 1 mo Ppt-Siow 30 35,000 0 0 2-3 mos (013) 50 Cash account 2-3 mos 12/10 Ppt 100 1 mo 11/10 Ppt 500 0 

### .o 2-3 mos Ppt-Siow 30 250 0 0 N30 6-12 mos Slow 30-60 5,000 0 0 6-12 mos (018) 0 0 0 Cash account 6-12 mos (019) 0 0 0 Cash account**6~12** mos (020) 0 0 0 Cash account 6-12 mos 05/10 (021) 50 Cash account 1 mo 

# .. (022) 50 Cash account 1 mo (023) 50 Cash account 1 mo 03/10 (024) so Cash account · 1 mo 12/09 Ppt 2,500 250 0! 1 mo Ppt 2,500 1,000 0 1 mo Ppt 2,500 750 0 1 mo Ppt 1,000 500 0 1 mo Slow 10 1,000 250 100 1 mo 11/09 Ppt-Slow 30 250 0 0 N30 1 mo 09/09 Ppt 500 0 0 6-12 mos 07/09 {032) 100 0 0 6-12 mos 06/09 Ppt-Slow 30 30,000 30,000 10,000 1 mo Ppt-Siow 30 30,000 25,000 0 1 mo 05/09 Ppt-Siow 30 15,000 oj 0 1 mo Payment experiences reflect how bills are met in relation to the terms granted. In some instances payment beyond terms can be the result of disputes 

### over merchandise, skipped invoices etc.

A Payment Trends Profile will show you - View Now

FINANCE 

### https://www.dnb.com/delivery/42/426163/426163.BIRHQ.2175.3477540615.tng.print.htm... 3/14/2011

# --------------------··
m

## ty ,ort: NU F ASHTONBEAUTY PRODT

### of'TS Page 

### 6 of7

o contact the management ofthis business have been unsuccessful. Outside sources

3 is for information purposes only and is not the official record. Certified copies can only ource.

lien in more than one filing location. The appearance of multiple liens filed by the same 1y be indicative of such an occurrence. $480 Open 140229 State Tax STATE OF MISSOURI CHYU, SUM M STLOUIS COUN1Y RECORDER OF DEEDS, SAINTLOUIS, MO 02/27/2008 02/27/2008 03/18/2008 $480 Open 02252008/0359 State Tax STATE OF MISSOURI SUN M CHYU ., ST. LOUIS CI1Y RECORDER OF DEEDS, SAINT LOUIS, MO 02/25/2008 02/25/200fl 03/18/2008
ned in this report may have been paid, terminated, vacated or released prior to the date

r): 1t:

m federal program(s): >•economic program consideration NO NO NO NO NO
YES (2011) YES {2011) N/A .rernment Activity section are as reported to Dun & Bradstreet by the federal

## ~~~~~~~~~~~~~=zy~/~42:/~42~6~1~63~4~2~6~16~3~.B_I~~~Q_2_17~53.477540615.~~~~-~-·- 3/14n011

# -----------------

# ... i 

### D&B Business Information T 

### ·Ort: 

### NU FASHION BEAUTY PRODT TS Page 7 of7 government and other sources.

Copyright 2011 

### D"n & Bradstreet- Provided "nder contract for the ixcl"'lve "'e of sobscrJber 2637S1116t



# ..

https://www.dnb.com/delivery/42/426163/426163.BIRHQ.2175.3477540615.tng.print.htm... 3/14/2011