See the memorandum from L. Dubinski to R. W. Kirkman (and others) dated May 9, 1966. This memo states that the possession of tungsten- or magnesium-thorium scrap with a thorium content <4% by weight, is exempt from regulations pursuant to 10 CFR 40.13 (c) (4). The following is an excerpt from a memorandum from the Enforcement Branch, Division of State and Licensee Relations, with which the Division of Compliance concurred: "Under the provisions of 10 CFR 40.13 (c) (4) any finished product or part fabricated of or containing magnesium-thorium alloy with a thorium content not exceeding 4% by weight is exempt from the regulations in Part 40, except that the exemption does not extend to the chemical, physical or metallurgical treatment or processing of any such product or part." "Persons who receive possession of scrap containing magnesium-thorium alloys, in most instances, will have no definitive information as to the chemical content of the metal. Accordingly, it does not seem reasonable or necessary to require these persons to obtain a source material license to authorize possession of such material." "The Division of Safety Standards recognizes the problem of wording in 10 CFR 40.13 (c) (4) and is planning to prepare an appropriate amendment of Part 40 to clarify that no license is needed by persons who receive scrap magnesium-thorium alloy containing not more than 4% by weight of thorium." The above quotation deals only with magnesium-thorium alloys. However, the conclusion is equally applicable to tungsten-thorium alloys. The net effect of the explanation is to construe "any finished product or part" to include items that have been discarded as scrap. Note that the exemption does not extend to chemical, physical or metallurgical treatment or processing of the scrap. Regulatory references: 10 CFR 40.13, 10 CFR 40.22 Subject codes: 3.3, 3.8 Applicability: Source Material