Information Notice 2009-12, Exempt Distribution Licensing Requirements for Irradiated Gemstones

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Exempt Distribution Licensing Requirements for Irradiated Gemstones
ML091190196
Person / Time
Issue date: 07/27/2009
From: Robert Lewis
NRC/FSME/DMSSA
To:
Dimmick, L FSME/MSSA/LB (301) 415-7833
References
IN-09-012
Download: ML091190196 (10)


UNITED STATES

NUCLEAR REGULATORY COMMISSION

OFFICE OF FEDERAL AND STATE MATERIALS

AND ENVIRONMENTAL MANAGEMENT PROGRAMS

WASHINGTON, D.C. 20555

July 27, 2009

NRC INFORMATION NOTICE 2009-12:

EXEMPT DISTRIBUTION LICENSING

REQUIREMENTS FOR IRRADIATED

GEMSTONES

ADDRESSEES

All holders of NRC exempt distribution licenses authorized to distribute irradiated gemstones.

Organizations associated with importing, distributing or selling irradiated gemstones or jewelry

containing irradiated gemstones. All Radiation Control Program Directors and State Liaison

Officers.

PURPOSE

The U.S. Nuclear Regulatory Commission is issuing this information notice (IN) to: 1)

emphasize the NRC requirements governing the import into and initial distribution within the

U.S. of irradiated gemstones containing byproduct material, and 2) emphasize that after the

initial distribution of irradiated gemstones under an exempt distribution license, subsequent

distributions (including export) are not subject to any other licensing or regulatory restriction.

It is expected that licensees, importers, and distributors will review this information and assure

that they comply with applicable requirements. No specific action or written response is

required.

DESCRIPTION OF CIRCUMSTANCES

Irradiated gemstones fall within the jurisdiction of the Nuclear Regulatory Commission (NRC or

Commission) pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Policy

Act of 2005. The process of enhancing the gemstones color through bombardment with either

neutrons or electrons can induce radioactivity in the gemstones, making the gemstones slightly

radioactive. The initial distribution of these gemstones within the U.S. is required to be by NRC

licensed distributors pursuant to 10 CFR Parts 30 and 32. The initial distributors are required to

conduct radiological surveys of each batch of gemstones to ensure that any residual

radioactivity is below regulatory limits prior to being made available to the general public.

In a July 28, 1987, Commission Paper (SECY-87-186), NRC staff requested Commission

direction on how to apply certain regulations in 10 CFR Parts 30 and 32 pertaining to the

distribution of irradiated gemstones. In particular, the NRC staff had questions about how to

apply 10 CFR 32.11, which establishes criteria for granting a specific NRC license to initially

transfer certain products containing byproduct material; and 10 CFR 30.14, which grants an

exemption from this license requirement to persons transferring products containing byproduct

material not exceeding the concentrations listed in 10 CFR 30.70. The NRC staff also had

questions regarding 10 CFR 32.11(c), which requires that an applicant who intends to introduce

exempt quantities of byproduct material into products (or transfer such products) provide

reasonable assurance that the product is not likely to be incorporated in any other product

designed for application to a human being.

In a November 24, 1987, memorandum to staff (follow-up to SECY-87-186), the Commission

directed the staff to issue interim exempt distribution licenses to distributors of irradiated

gemstones, and to grant exemption to the requirements of 10 CFR 32.11(c), while developing a

policy statement based on the level of risk. The conditions of the exempt distribution license

required that the licensee meet other requirements of 10 CFR 32.11, 30.14, and 30.70.

On September 25, 1990, the NRC issued Information Notice No. 90-62, Requirements for

Import and Distribution of Neutron-Irradiated Gems, to remind U.S. distributors of gemstones, including importers, of long-standing NRC requirements in 10 CFR Part 30 governing U.S.

distribution, and 10 CFR Part 110 governing the import (and distribution) of neutron-irradiated

gems, and to provide information on the NRCs planned actions on unauthorized activities.

The NRC issued a number of exempt distribution licenses for irradiated gemstones in the late

1980s and early 1990s, but, by 2001, all had expired.

BACKGROUND

In August of 2005, the Energy Policy Act of 2005 expanded the definition of byproduct material

to include material made radioactive in particle accelerators and produced, converted, or

extracted for commercial, medical, or research activities. The NRC published its final rule on

regulations implementing this expanded jurisdiction on October 1, 2007, with an effective date of

November 30, 2007 (72 FRN 55864). Rulemaking for the expanded definition of byproduct

material brought irradiated gemstones to the fore again because gemstones irradiated in

particle accelerators are now under NRC jurisdiction.

In 2007, the NRC learned that there were gemstones on the market that were imported and

distributed by a number of companies without an NRC distribution license. Accordingly, the

NRC conducted selected surveys of the inventory in the market and held a public meeting with

industry representatives and other stakeholders to gather more information. In the July 26,

2007, public meeting, NRC staff met with jewelers industry representatives and other

stakeholders to discuss the regulatory requirements for distribution of irradiated gemstones. In

that meeting, industry representatives stated that they were concerned about significant

interruption in providing certain gemstones to the market. At the same time, they expressed

their commitment and willingness to cooperate with the NRC to ensure public health and safety

and to prevent further unauthorized distribution. Subsequently, in November 2007, the NRC

issued licenses to three organizations, and several other applications were pending before the

NRC. In February 2008, the NRC issued a Fact Sheet, Irradiated Gemstones, stating that it

had no reason to believe that irradiated gemstones currently on the United States market are

unsafe. However, the NRC is taking actions to ensure that from this point forward all irradiated

gemstones will be distributed in compliance with NRC regulations.

DISCUSSION

NRC regulations provide exemptions from the requirements for an NRC license to persons who

receive, possess, use, transfer, own or acquire byproduct material in exempt distribution

products. These exemptions are set forth in 10 CFR Part 30, Rules of General Applicability to

Domestic Licensing of Byproduct Material. See, e.g., 10 CFR 30.14, Exempt concentrations,

10 CFR 30.18, Exempt quantities. Exempt distribution products can include silicon chips, electron tubes, resins, check sources, carbon-14 urea capsules, gun-sights and smoke

detectors. Such products are distributed by persons who have a specific NRC license

authorizing such distribution to persons who would not require an NRC license.

Exemptions from licensing requirements are based primarily on the NRCs determination that

the exempted classes of products or types of uses will not constitute an unreasonable risk to the

common defense or security or to public health and safety. These exemptions do not apply to

persons who manufacture, process, produce, incorporate byproduct material into, initially

transfer for sale, or distribute products containing byproduct material.

Generally, distribution of byproduct materialincluding irradiated gemstonesto persons

exempt from NRC regulations can only be made by persons who have a specific NRC license

authorizing such distribution. After the initial distribution of the irradiated gemstones by an

NRC-licensed distributor, the gemstones are no longer regulated. Therefore, subsequent

distributors, jewelers, other retailers and consumers do not need to be licensed by the NRC.

Each NRC-licensed initial distributor of irradiated gemstones is required to ensure that its

gemstones are tested and distributed in accordance with the specifications provided in its

license application. Generally speaking, the licenses provide a safeguard against the possibility

that gemstones reach the market too soon after irradiation. The initial distribution licensee must

perform sophisticated surveys to verify that its gemstones meet NRC requirements. These

specific licenses are issued by the Commission and are referred to as exempt distribution or

E licenses. Persons authorized to initially transfer or distribute these products must also have

a license authorizing the possession or use of radioactive material. If the distributor is in an

Agreement State (one of thirty-six states that have entered into an agreement with the NRC to

regulate certain classes of radioactive materials), the distributor must obtain its possession

license from the Agreement State. Otherwise, NRC will issue the possession license.

The primary regulations applying to the distribution of irradiated gemstones are:

10 CFR 30.14 exempts from the requirements for a license persons to receive, possess, use, transfer, own, or acquire products or materials containing byproduct material provided that the

byproduct material concentrations are not in excess of those specified in 10 CFR 30.70. 10

CFR 30.70 contains a table of exempt concentration levels.

10 CFR 32.11 describes the conditions and requirements necessary to obtain license approval

for the introduction of byproduct material in exempt concentrations into products for transfer to

individual not requiring a license. 10 CFR 32.11(c) requires that the license applicant provide

reasonable assurance that the exempted product is not likely to be incorporated into any other

product designed for application to a human being If the NRC finds that these criteria are met, the NRC will issue an exempt distribution license. 10 CFR 32.12 establishes records and material transfer report requirements associated with the

exempt distribution license licensed under section 32.11, and requires that material transfer

reports, covering transfers made during the calendar year, be submitted to the NRC annually by

January 31 of the following year.

10 CFR 110.27, General license for imports, provides a general license to persons to import

byproduct material if the importer is specifically licensed to possess the material.

Irradiated gemstones meeting the criteria in 10 CFR 30.14 may be distributed/transferred under

an exempt distribution license as specified in 10 CFR 32.11, to others that are not required to

have a license (e.g., wholesalers, retailers, and members of the public).

CONCLUSION

Initial distributors of irradiated gemstones must comply with the NRCs regulatory and licensing

requirements. The NRC maintains the authority to take enforcement action against

unauthorized distribution of irradiated gemstones that contain radiation induced byproduct

material. The NRC is also providing verification of licenses to the U.S. Customs Service.

Importers can distribute irradiated gemstones under the following conditions:

1. The importer possesses a valid NRC or state license to possess the gemstones

containing byproduct material and is authorized to distribute them under an NRC exempt

distribution license; or

2. Gemstones containing byproduct material were previously distributed to U.S and

foreign customers under the terms of a valid NRC exempt distribution license, and

therefore, can subsequently be distributed (including re-import into the U.S.) without

further regulatory control.

Therefore, importers and distributors of irradiated gemstones should consider taking steps to

ensure that the irradiated gemstones have been distributed initially under an NRC exempt

distribution license. Secondary and subsequent distributors and retailers do not need exempt

distribution licenses. To help recipients of this IN comply with NRC import and exempt

distribution regulations, NRC staff strongly recommends consideration of the following with

respect to import documentation for irradiated gemstones:

1. All imported gemstones should be accompanied by clear documentation as to

whether they are irradiated or not.

2. In the United States, only an NRC or State licensee can receive, and only an NRC

distribution licensee can initially distribute irradiated gemstones. Documentation

provided by the supplier should state the U.S. distributor licensee name and NRC license

number.

3. Irradiated gems from U.S. facilities, which may have been exported, may be imported

by non-licensees if they were previously distributed in or from the U.S. under the terms of

an NRC distribution license. Documentation for such re-imports should state the name

of the NRC distribution licensee and NRC distribution license number. A facility

operating license number is not sufficient. 4. Imported gemstones will be subject to checks by the U.S. Customs Service or NRC.

Undocumented gems may be subject to import delays and returned to the foreign

suppliers, pending receipt of proper documentation.

The NRC is aware that irradiated gemstones containing induced radioactivity were distributed

within the U.S. without the required exempt distribution license between 2002 and 2007. NRC

staff conducted radiological surveys of a sample of these gemstone inventories, which revealed

that current inventories of such gemstones in the U.S. presented no health risk. In addition, NRC recognizes that significant time has transpired since these gemstones were irradiated, allowing decay of the induced radioactivity. Therefore, NRC has determined that all gemstones

currently in the U.S., and irradiated prior to November 2007, can be distributed without an

exempt distribution license.

The NRC advises recipients of this IN that willfully acquiring gemstones for distribution in

violation of NRC regulations may result in enforcement action.

CONTACT

This IN requires neither specific action nor written response. If you have any questions about

the information in this notice, please contact the technical contact listed below or the appropriate

regional office.

Robert Lewis, Director

Division of Materials Safety

and State Agreements

Office of Federal and State Materials

and Environmental Management Programs

Technical Contacts: Lisa Dimmick

(301) 415-0694

E-mail: Lisa.Dimmick@nrc.gov

Enclosures:

1. List of Recently Issued FSME Generic Communications

2. Frequently Asked Questions Associated with Irradiated Gemstones 4. Imported gemstones will be subject to checks by the U.S. Customs Service or NRC.

Undocumented gems may be subject to import delays and returned to the foreign

suppliers, pending receipt of proper documentation.

The NRC is aware that irradiated gemstones containing induced radioactivity were distributed

within the U.S. without the required exempt distribution license between 2002 and 2007. NRC

staff conducted radiological surveys of a sample of these gemstone inventories, which revealed

that current inventories of such gemstones in the U.S. presented no health risk. In addition, NRC recognizes that significant time has transpired since these gemstones were irradiated, allowing decay of the induced radioactivity. Therefore, NRC has determined that all gemstones

currently in the U.S., and irradiated prior to November 2007, can be distributed without an

exempt distribution license.

The NRC advises recipients of this IN that willfully acquiring gemstones for distribution in

violation of NRC regulations may result in enforcement action.

CONTACT

This IN requires neither specific action nor written response. If you have any questions about

the information in this notice, please contact the technical contact listed below or the appropriate

regional office.

Robert Lewis, Director

Division of Materials Safety

and State Agreements

Office of Federal and State Materials

and Environmental Management Programs

Technical Contacts: Lisa Dimmick

(301) 415-0694

E-mail: Lisa.Dimmick@nrc.gov

Enclosures:

1. List of Recently Issued FSME Generic Communications

2. Frequently Asked Questions Associated with Irradiated Gemstones

ML091190196 OFC

MSSA:SMPB

MSSA:LB

MSSA:MSEA

OIP

NAME

JDeCicco: sxg6 JFoster

AMcIntosh

JOwens

DATE

05/05/09

05/11/09

04/29/09

05/19 /09 OFC

OGC (NLO)

OE

FSME:MSSA

NAME

BJones

SMagruder, Jr

RLewis

DATE

06/02/09

06/15/09

06/22/09

OFFICIAL RECORD COPY

IN 2009-12 Enclosure 1 List of Recently Issued Office of Federal and State Material

and Environmental Management Programs Generic Communications

Date

GC No.

Subject

Addressees

01/12/09 IN-2008-22 Molybdenum-99 Breakthrough in

Molybdenum-99/Technetium-99m

Generators

All U.S. Nuclear Regulatory Commission

medical, radiopharmacy, molybdenum-99/

technetium-99m generator manufacturers, and

master material licensees authorized to

manufacture or use generators. All Agreement

State radiation control program directors and

State liaison officers.

01/22/09 IN-2009-01 National Response Framework

All holders of operating licenses or certificates

for nuclear power plants, research and test

reactors, independent spent fuel storage

installations, fuel cycle facilities, and

radioactive materials. All holders of operating

licenses for uranium recovery facilities and all

holders of licenses or certificates for the

following types of facilities undergoing

decommissioning: nuclear power plants, research and test reactors, fuel cycle facilities, and uranium recovery facilities.

02/03/09 IN-2009-05 Contamination Events Resulting from

Damage to Sealed Radioactive Sources

During Gauge Dismantlement and

Nonroutine Maintenance Operations

All U.S. Nuclear Regulatory Commission

materials licensees; all Agreement State

Radiation Control Program Directors and State

Liaison Officers.

03/30/09 IN-2009-07 Withholding of Proprietary

Information from Public Disclosure

All current holders of and potential applicants

for licenses, certificates of compliance, permits, or standard design certifications, as

well as any other persons submitting a request

that information be withheld from public

disclosure under the provisions of Title 10 of

the Code of Federal Regulations (10 CFR)

Section 2.390, Public inspections, exemptions, requests for withholding.

04/29/09 RIS-2009-05 Uranium Recovery Policy Regarding: (1)

The Process for Scheduling Licensing

Reviews of Applications for New

Uranium Recovery Facilities and (2) The

Restoration of Groundwater at Licensed

Uranium In-Situ Recovery Facilities

All holders of operating licenses for uranium

recovery facilities and all companies who have

submitted applications to construct new

uranium recovery facilities of all types

(conventional mills, heap leach operations, and

in-situ recovery facilities) or letters of intent to

submit such applications.

05/07/09 RIS-2009-07 Status Update for the Implementation

of NRC Regulatory Authority for Certain

Naturally Occurring and Accelerator- Produced Radioactive Material

All U.S. Nuclear Regulatory Commission

material and fuel cycle licensees. All Radiation

Control Program Directors and State Liaison

Officers.

Note: This list contains the six most recently issued generic communications, issued by the Office of Federal and State

Materials and Environmental Management Programs (FSME). A full listing of all generic communications may be viewed at

the NRC public website at the following address: http://www.nrc.gov/reading-rm/doc-collections/gen-comm/index.html

IN 2009-12 Enclosure 2 Frequently Asked Questions on Irradiated Gemstones

For consumers:

1. Why and how are gemstones irradiated?

2. Does irradiation make the gemstones radioactive?

3. Is it dangerous to wear blue topaz?

4. Should I stop wearing blue topaz?

5. A jeweler told me it is now illegal to sell blue topaz because it causes cancer - is this

true?

6. How can I tell if my jewelry has been irradiated?

7. Will I receive a radiation "dose" from wearing blue topaz or other irradiated gemstones?

For Jewelers and Distributors:

8. Why is NRC scaring industry and disrupting the sale of irradiated gemstones?

9. Do I need an NRC license to sell blue topaz or other irradiated gemstones?

10. Why is an "exempt distribution" license required for the initial distribution of irradiated

gemstones?

11. Am I selling "contraband"?

12. Should I stop selling these popular gemstones?

13. I read that there was a ban on selling irradiated gemstones. Is this true?

14. Why do some irradiated gemstones fall under NRCs authority, while others do not?

1. Why and how are gemstones irradiated?

Gemstones are irradiated in order to enhance and deepen their color. They can be irradiated in

a nuclear reactor (neutron bombardment), an accelerator (electron bombardment), or by

exposure to gamma rays in a cobalt-60 irradiator. The most commonly treated stone is topaz, which becomes blue as a result of the exposure to radiation.

2. Does irradiation make the gemstones radioactive?

Possibly. Generally, the longer the gemstones are exposed to radiation - and the more intense

the radiation - the deeper the resulting color; also, this increases the chance that trace elements

in the stone will be "activated" and become radioactive. It is important to note that activation is

most likely to occur in gemstones that are treated in a nuclear reactor, though treatment in an

accelerator can also make gemstones radioactive. Treatment in a cobalt-60 irradiator does not

render gemstones radioactive.

3. Is it dangerous to wear blue topaz?

No. The NRC has no indication that wearing irradiated gemstones can be harmful. There have

been no reported cases of anyone being harmed by wearing irradiated gemstones.

IN 2009-12 Enclosure 2 4. Should I stop wearing blue topaz?

From a safety standpoint, there is no reason to stop wearing blue topaz or any other irradiated

gemstones.

5. A jeweler told me it is now illegal to sell blue topaz because it causes cancer - is

this true?

No. There is no reason to believe blue topaz or any other irradiated gemstone poses any health

risk. The NRC has not advised, requested, or ordered any retailers or distributors to stop selling

irradiated gemstones.

6. How can I tell if my jewelry has been irradiated?

A skilled gemologist might be able to tell by examining the gemstone. However, it can be very

difficult to determine whether a stone has been treated in a reactor, accelerator or irradiator.

Residual radioactivity can be detected with some hand-held survey meter; however, determining

whether the radiation is below NRCs regulatory limits requires a trained radiation professional

to use sophisticated survey equipment.

7. Will I receive a radiation "dose" from wearing blue topaz or other irradiated

gemstones?

Possibly, but it would be an extremely small dose. A study done by the NRC estimated that a

person wearing a blue topaz stone at the highest level of radioactivity allowed for distribution

under NRC regulations would receive an annual dose of 0.03 millirem (NUREG 1717, page 2-

21). By contrast, a chest X-ray is about 10 millirem, and average annual natural background is

about 360 millirem in the United States.

8. Why is NRC scaring industry and disrupting the sale of irradiated gemstones?

Early in 2007, the NRC contacted several large retailers of blue topaz seeking information about

how the gemstones reached the U.S. market. The agency sought this information in order to

restore the regulatory framework for the proper distribution of these gemstones under the

Atomic Energy Act and NRC regulations. The NRC did not request any specific actions of

industry. Industry groups and retailers have cooperated with the NRC in its efforts. The NRC

continues to survey batches of gemstones for radiation. Surveys conducted to date have not

given the agency any indication that current inventories are a health risk.

9. Do I need an NRC license to sell blue topaz or other irradiated gemstones?

Probably not. NRC regulations cover material made radioactive in a nuclear reactor and particle

accelerators. The initial transfer of these materials must be made according to an NRC

distribution license. If the radioactivity levels are below certain limits in NRCs regulations, the

materials become "exempt" from further regulation, and further distribution, including to the end

consumer, does not need to be licensed. This means individual jewelers do not need to be

licensed provided the gemstones they sell were initially distributed by an NRC licensee.

IN 2009-12 Enclosure 2 By the end of 2007, the NRC issued three distribution licenses for blue topaz, and other license

applications are under review.

10. Why is an "exempt distribution" license required for the initial distribution of

irradiated gemstones?

The license provides a safeguard against the possibility that gemstones might reach the market

too soon after irradiation, with radioactivity above NRC limits. The distribution licensee is

required to perform sophisticated surveys to verify that the gemstones meet NRC requirements

for exempt distribution.

11. Am I selling "contraband"?

No. Current inventories in retail outlets and distribution channels have not been distributed by

an NRC licensee, but these should not be considered contraband. For gemstones irradiated

prior to 2007, the NRC has decided that no additional actions are necessary to ensure health

and safety of the public. For all gemstones irradiated after November 2007, the NRC will

enforce the requirements of the exempt distribution licenses of the initial distribution.

12. Should I stop selling these popular gemstones?

That is a business decision only you can make. The NRC has sought information from industry

about how irradiated gemstones reach the U.S. market, but the agency has not requested any

action, including a halt in sales.

13. I read that there was a ban on selling irradiated gemstones. Is this true?

Not a ban by the NRC. When the NRC approached industry groups early in 2007 seeking

information about the distribution of irradiated gemstones, several retailers pulled their

gemstones from the market in response. This was a voluntary action on their part. The NRC did

not request or impose any such action.

14. Why do some irradiated gemstones fall under NRCs authority, while others do

not?

This is simply because of the way the law has been written. The Atomic Energy Act gave NRC

regulatory authority over radioactive material produced in reactors. In the Energy Policy Act of

2005, Congress extended this authority to include accelerator-produced radioactive material

that is used for a commercial, medical, or research activity. NRC regulations implementing this

expanded authority took effect November 30, 2007. Information on these regulations and the

agencys transition plan for implementing them is available on the NRC web site, http://www.nrc.gov/ .

Some gemstones treated at low energy in an accelerator may not actually become radioactive, so they would not qualify as radioactive material under NRC authority. Also, gemstones

irradiated in a cobalt-60 irradiator do not become radioactive.