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I could have been clearer but to be technically correct the visual inspection program (VIP) is scuba nomenclature and not DOT requalification nomenclature. And thus as scuba nomenclature I was implying the annual visual inspection. And, what folks call a hydro test is really a requalification test which is comprised of a visual inspection and a hydrostatic test. But we are picking nits here.
But back to my point about not having the shop condemn the cylinder based on their VIP views is because once condemned the cylinder is toast. If the cylinder passes the requal but the shop will not pass the VIP for their misguided reasons the OP can at least resell the cylinder or perhaps get their money back from the seller.
I don't think a shop can condemn a cylinder. I think that condemnation is limited to the retester or the owner. If I had a shop condemn a cylinder based on, say, an annual visual inspection, I'd be through the roof mad, and they would replace the cylinder. Most dive shop employees wouldn't know a condemnable flaw if one jumped up and bit them in the buttocks. Not to say all shop employees are poorly educated, but if someone is to take X's to my cylinder, they better do it for a living, not be the weekend and after work guy at the local dive shop.
49CFR180.207 prescribes the procedures for the condemnation of cylinders. They are to be condemned by stamping a series of “X”s over the DOT specification number and the service pressure or by stamping “CONDEMNED” on the cylinder shoulder. Only at the direction of the cylinder owner may the requalifier render the cylinder incapable of holding pressure. Additionally, the cylinder owner must be notified IN WRITING that the cylinder is condemned and may not be filled with a hazardous material.
Cylinders failing hydrostatic retest or visual inspection cannot be returned to their owner without being condemned. However, those facilities that destroy your cylinder neck threads or drill a hole in the sidewall WITHOUT YOUR PERMISSION are in violation of the law.
We're both wrong about annual testing of scuba cylinders. In CGA Pub P-5 Paragraph 6.1 the Compressed Gas Association requires all cylinders in SCUBA service to be visually inspected annually. CGA rules are incorporated by reference by DOT.
I got this information from Dale Fox's website page, by the way.