New Safety Bill Requires Foreign Cylinder Makers to Pay for Inspections, Tightens Hazardous Material Transport Vetting

This bill, the Compressed Gas Cylinder Safety and Oversight Improvements Act of 2025, is all about making sure the tanks used to ship hazardous materials into the U.S. from overseas are safe and compliant. Essentially, it puts a much tighter leash on foreign manufacturers of these cylinders (FMOCs) by changing how the Department of Transportation (DOT) approves them. The big takeaway is that foreign companies now face serious new hurdles, including having to foot the bill for their own safety inspections, and the public gets a new window to weigh in on who gets approved.

The DOT’s New Vetting Power

Right now, foreign manufacturers must get approval from the DOT, usually renewed annually. This bill changes the game by offering a five-year approval, but only if the FMOC meets a stringent new checklist. This includes certifying that none of their cylinders are banned from the U.S., guaranteeing the accuracy of all information provided, and the DOT confirming they are “in good standing.” However, the bill also introduces a long list of questions applicants must answer—digging into their history of civil penalties, unpaid fines, and whether they are listed on various government security or trade watchlists. If a manufacturer is on the wrong list or owes the government money, the DOT can simply deny the application. This is a significant barrier to entry, meaning some foreign suppliers might be locked out, potentially affecting companies here that rely on specific imported cylinders.

Inspections, Costs, and the “Good Cause” Loophole

One of the most consequential changes is buried in the inspection requirements. The DOT Secretary is now required to update regulations to demand annual inspections of an FMOC if the Secretary finds “good cause.” If a foreign manufacturer refuses this inspection, they instantly lose their “in good standing” status. Crucially, the FMOC must now pay back all associated costs of these foreign inspections, including travel and time. For a manufacturer in a distant country, these costs could be massive, and since the bill doesn’t define what constitutes “good cause” for an annual inspection, the DOT gains broad, discretionary power to impose significant financial burdens on specific companies.

The Public Gets a Say—And the DOT Gets a Hammer

For the first time, the public gets a seat at the table. When an FMOC applies for approval, the DOT must post a notice online and allow 30 days for public comment before making a decision. This transparency is a big win for interested parties who might have safety concerns. On the flip side, the bill gives the DOT a quick way to shut down bad actors: if an FMOC is found to have knowingly lied or intentionally misrepresented information, or if they “actively try to stop or slow down an inspection,” the Secretary can immediately suspend or terminate their approval. This provision is designed to keep inspectors safe and ensure compliance, but the language around what constitutes “actively trying to stop or slow down” an inspection is vague and could potentially be used to penalize minor administrative delays, giving the DOT significant leverage.

Real-World Impact

For the average person, this bill aims to increase the safety of hazardous materials transport—think industrial gases, chemicals, or medical supplies—by ensuring the containers are up to snuff. For businesses, particularly those in manufacturing or construction that rely on specialized gases shipped in these cylinders, the increased vetting and costs for foreign suppliers could lead to two things: first, potentially higher prices as compliance costs are passed down, and second, potential supply chain delays if the DOT uses its new broad authority to deny or delay approvals for foreign companies. While the intent is clearly safety and accountability, the increased regulatory burden and the subjective nature of some of the new inspection powers mean businesses need to prepare for a more complex, and potentially more expensive, import process.