1. Deborah Bonardi Import Surveillance Division U.S. Consumer Product Safety Commission This presentation has not been reviewed or approved by the Commission and may not reflect its views 1

2. Background Independent federal agency established in 1973 Independent federal agency established in 1973 5 Commissioners 5 Commissioners Approximately 550 staff Approximately 550 staff Office of Compliance and Field Operations Office of Compliance and Field Operations Division of Import Surveillance (Feb 2008) Division of Import Surveillance (Feb 2008) Compliance Officers (Subject Matter Experts) Compliance Officers (Subject Matter Experts) Field Investigators Field Investigators 2

3. Consumer Product Safety Improvement Act (CPSIA) Consumer Product Safety Improvement Act (CPSIA) Consumer Product Safety Act (CPSA) Consumer Product Safety Act (CPSA) Federal Hazardous Substances Act (FHSA) Federal Hazardous Substances Act (FHSA) Flammable Fabrics Act (FFA) Flammable Fabrics Act (FFA) Poison Prevention Packaging Act (PPPA) Poison Prevention Packaging Act (PPPA) Refrigerator Safety Act Refrigerator Safety Act Virginia Graeme Baker Pool and Spa Safety Act Virginia Graeme Baker Pool and Spa Safety Act Children’s Gasoline Burn Prevention Act Children’s Gasoline Burn Prevention Act Jurisdictional Authority

4. Import Updates 4

5. 5 Detention CPSC began detaining shipments under its authority on June 14, 2010. CPSC began detaining shipments under its authority on June 14, 2010. CBP remains the custodian of the merchandise. CBP remains the custodian of the merchandise. Recipient has five business days to provide information that may help resolve the detention. Recipient has five business days to provide information that may help resolve the detention. Timeframe Timeframe Effort to match existing CBP detention time frame.

6. 6 Conditional Release CPSC may allow conditional release of merchandise under bond, pending results of examination and testing. CPSC may allow conditional release of merchandise under bond, pending results of examination and testing. Merchandise may not be distributed while under Conditional Release. Merchandise may not be distributed while under Conditional Release. Redelivery of Merchandise is possible if the product is found to be violative. Redelivery of Merchandise is possible if the product is found to be violative.

7. 7 Resolution of a Detention Release Release Reconditioning Reconditioning Voluntary Exportation/Destruction Voluntary Exportation/Destruction Seizure by CBP Seizure by CBP Refusal of Admission Refusal of Admission

8. 8 Refusal of Admission Products refused admission must be destroyed unless the Secretary of Treasury permits export. Products refused admission must be destroyed unless the Secretary of Treasury permits export. All expenses of destruction (including salaries, travel, per diem) shall be paid by the owner or consignee. All expenses of destruction (including salaries, travel, per diem) shall be paid by the owner or consignee. If expenses of destruction are not paid, they become a lien against future imports by the same owner or consignee. If expenses of destruction are not paid, they become a lien against future imports by the same owner or consignee.

9. 9 Request for a Hearing CPSA Violations Only CPSA Violations Only Importer/owner/consignee can seek a full hearing under the Administrative Procedures Act. Importer/owner/consignee can seek a full hearing under the Administrative Procedures Act. Product will remain under government custody at importer’s expense during the pendency of the hearing. Product will remain under government custody at importer’s expense during the pendency of the hearing.

10. 10 Harmonized Tariff Schedules Working through the International Trade Commission, CPSC has made changes to the Harmonized Tariff Schedule (HTS) codes to match up more closely with our regulated products. Working through the International Trade Commission, CPSC has made changes to the Harmonized Tariff Schedule (HTS) codes to match up more closely with our regulated products. Finer HTS codes will allow CPSC and CBP to pinpoint shipments for inspection at the ports. Finer HTS codes will allow CPSC and CBP to pinpoint shipments for inspection at the ports.

11. CTAC Commercial Targeting Analysis Center Commercial Targeting Analysis Center Operated from CBP HQ in Washington DC Operated from CBP HQ in Washington DC Staffed by CBP, CPSC, and other agencies responsible for import safety Staffed by CBP, CPSC, and other agencies responsible for import safety Access to manifest and entry data that assists in targeting Access to manifest and entry data that assists in targeting National operations coordinated through CTAC National operations coordinated through CTAC 11

12. What’s New at CPSC New Laboratory New Laboratory Scheduled to be completed in spring 2011 Modern, purpose-built facility Local storage of active samples New Public Database New Public Database Launch scheduled for March 2011 Incident reports available to the public Businesses have opportunity to respond to incidents involving their products 12

13. CPSIA Highlights 13

14. Lead Limits 300 ppm limit for lead content 300 ppm limit for lead content 90 ppm limit for lead paint 90 ppm limit for lead paint Retroactive Retroactive XRF technology used to screen lead at the ports XRF technology used to screen lead at the ports Highly accurate in screening homogenous plastic materials Highly accurate in screening homogenous plastic materials Demonstration of XRF by Luz and Karla Demonstration of XRF by Luz and Karla 14

15. 15 Certification See 16 C.F.R. Part 1110 for details regarding certification. See 16 C.F.R. Part 1110 for details regarding certification. Imported products – Certification is the responsibility of the importer. Imported products – Certification is the responsibility of the importer. Domestically manufactured products – Certification is the responsibility of the domestic manufacturer. Domestically manufactured products – Certification is the responsibility of the domestic manufacturer.

16. 16 What Must be Certified? Any product that is subject to a consumer product safety rule or similar rule, ban, standard, or regulation and which is “imported for consumption or warehousing” or “distributed in commerce.” Any product that is subject to a consumer product safety rule or similar rule, ban, standard, or regulation and which is “imported for consumption or warehousing” or “distributed in commerce.” Stays of Enforcement are in effect. See www.cpsc.gov for a complete list. Stays of Enforcement are in effect. See www.cpsc.gov for a complete list. www.cpsc.gov

17. 17 Content of Certificates Certificates must Certificates must identify the product, manufacturer (importer) issuing the certificate, and any third party on whose testing the certificate depends, by name, address, and phone number identify the product, manufacturer (importer) issuing the certificate, and any third party on whose testing the certificate depends, by name, address, and phone number Must spell out the date and place where the product was manufactured and date and place of testing Must spell out the date and place where the product was manufactured and date and place of testing Must show contact information for person maintaining test records Must show contact information for person maintaining test records Must specify each applicable standard, ban, etc. Must specify each applicable standard, ban, etc.

18. 18 Availability of Certificates Certificates must “accompany” each product or shipment of products covered by the same certificate. Certificates must “accompany” each product or shipment of products covered by the same certificate. A copy of the certificate must be “furnished to each distributor or retailer of the product” (no requirement to provide to ultimate consumer) A copy of the certificate must be “furnished to each distributor or retailer of the product” (no requirement to provide to ultimate consumer) Not necessarily a paper copy. Not necessarily a paper copy. A copy of the certificate must be made available to the Commission and Customs upon request. A copy of the certificate must be made available to the Commission and Customs upon request.

19. 19 Third-Party Testing The requirement for third-party testing applies to every children’s product that is subject to a “children’s product safety rule.” The requirement for third-party testing applies to every children’s product that is subject to a “children’s product safety rule.” For children’s products, certification will have to be based on testing by an independent, third- party laboratory that is accredited under rules issued by the Commission. For children’s products, certification will have to be based on testing by an independent, third- party laboratory that is accredited under rules issued by the Commission. The Commission must promulgate rules over time to give greater specificity to the requirements for third-party testing. The Commission must promulgate rules over time to give greater specificity to the requirements for third-party testing.

20. Tracking Labels Required on all children’s products Required on all children’s products Requires a label or permanent mark on product – “to the extent practicable” Requires a label or permanent mark on product – “to the extent practicable” Mark must enable the consumer to ascertain: Mark must enable the consumer to ascertain: Manufacturer or private labeler Date and place of production Cohort/Batch information 20

21. For durable infant and toddler products For durable infant and toddler products Effective Date: 6/28/2010 Effective Date: 6/28/2010 Applied to 12 products initially: Applied to 12 products initially: Product Registration Cards 21 CribsToddler Beds High Chairs/Booster ChairsBath Seats Gates & Other EnclosuresPlay Yards Stationary Activity CentersInfant Carriers StrollersWalkers SwingsBasinets & Cradles

22. Product Registration Cards 6 Additional products added on 12/29/2010 6 Additional products added on 12/29/2010 22 Children’s Folding ChairsChanging Tables Infant BouncersInfant Bathtubs Portable Toddler Bed RailsInfant Slings

23. Generic Defect Rules Section 223(a) of CPSIA Section 223(a) of CPSIA Also known as 15(j) rules Also known as 15(j) rules Allows Commission, by rule, to define the presence or absence of certain characteristics as a defect for a class of products Allows Commission, by rule, to define the presence or absence of certain characteristics as a defect for a class of products First two rules: Drawstrings on children’s upper outerwear and lack of a GFCI on hairdryers First two rules: Drawstrings on children’s upper outerwear and lack of a GFCI on hairdryers Will allow for quick action at import Will allow for quick action at import 23

24. Penalties Not to exceed $100,000 per violation with a maximum of $15 million for any related series of violations Not to exceed $100,000 per violation with a maximum of $15 million for any related series of violations Considerations Considerations Nature, circumstances, extent, and gravity of the situation. Nature, circumstances, extent, and gravity of the situation. Appropriateness of penalty in relation to size of business Appropriateness of penalty in relation to size of business Other factors as appropriate Other factors as appropriate 24

25. 25 Questions? Getting the most up-to-date information: GO TO www.cpsc.govwww.cpsc.gov. www.cpsc.gov