CPSC Testing and Certification Requirements Applicable to Consumer Fireworks Presented by the American Fireworks Standards Laboratory February 18, 2010

CPSC Certification Requirement  Part of the Consumer Product Safety Improvement Act (CPSIA) enacted in August  Requires all consumer fireworks manufactured after February 10, 2010 to be certified for conformity with applicable CPSC rules, standards and bans (also referred to as a “general conformity certification”).

CPSC Certification Requirement  Applies to consumer fireworks that are imported or produced domestically for consumption or warehousing or that enter the stream of commerce.  The domestic manufacturer or importer is legally responsible for issuing the certification.  Certification must be based upon a test of each product or a “reasonable testing program.”

CPSC Rules, Standards & Bans  Testing and certification are required under the CPSIA for the following CPSC rules, standards and bans applicable to consumer fireworks:  Powder content bans:16 CFR (a)(3) 16 CFR (a)(8) 16 CFR (a)(2)  Performance standards:16 CFR (a)(9) 16 CFR (a)(11) 16 CFR (a)(12) 16 CFR 1507  Cautionary labeling:16 CFR (b)(7) 16 CFR (a)(27)

What Is a Reasonable Testing Program? A reasonable testing program is one that provides reasonable certainty that a product complies with applicable rules, standards and bans.

What Is a Reasonable Testing Program?  At a minimum, it should contain the following essential elements:  Product specifications that describe each fireworks product and list the safety rules, standards and bans with which the product must comply;  Certification testing performed on samples of each fireworks product to demonstrate compliance with applicable safety rules;  A production testing plan that describes the tests that must be performed and at what intervals in order to provide reasonable assurance that the products continue to meet all applicable safety rules;  Remedial action plans to be implemented whenever sampling or testing results indicate non-compliance with a safety rule; and  Documentation of the reasonable testing program and how it was implemented. Records must be maintained for at least three years.  Sampling methods for testing should be statistically valid (e.g., of suitable size and randomness)

Form and Content of Certification The CPSIA does not specify the form the certification must take. For example, a certificate may be formatted as a product label, a standalone document, a shipping container attachment, a webpage, or a section of another document such as an invoice, statement or bill of lading. Certificates issued jointly by manufacturers and importers are permitted. Certificates may be prepared and maintained by third parties (e.g., testing labs), but they must be issued by the responsible manufacturer or importer.

Form and Content of Certification  A general conformity certification must include the following information in English:  Identity of the product covered  CPSC rules, standards or bans to which the product is being certified  Identity and contact information of the manufacturer or importer certifying compliance  Contact information for the individual maintaining the test records on which the certification is based  Date and place of product manufacture  Date and place of product testing  Identity and contact information of any third-party laboratory that performed the conformity testing  A signature is not required on the certification

Who Receives the Certifications?  A certificate must accompany each import shipment of a product, but is not required to be physically present (e.g., a URL to the certification is sufficient if the certificate is posted to the website prior to the product’s entry into the U.S. and such posting can be verified by the CPSC)  Shipments containing multiple products must have a certificate for each product.  There is no requirement to submit copies of certificates to CPSC or to U.S. Customs and Border Patrol (CBP), although copies must be made available to those agencies upon request. An electronic filing option may be offered by CPSC and CBP in the future.  Copies of certificates must be made available by the domestic manufacturer or importer to every distributor and retailer of a product, but do not have to accompany the product.  There is no requirement to notify consumers or final purchasers of a product about the certification.

Importation Considerations  An import shipment that lacks an accompanying certification or is accompanied by a false certification may be denied entry by CBP and destroyed at the expense of the shipment’s owner or consignee.  Re-export of products denied entry will be allowed only in cases where the receiving country has notified the CPSC of its willingness to accept the products.

Penalties for Violations  It is unlawful for a domestic manufacturer or importer to:  fail to furnish a required general conformity certificate;  issue a false certificate if the issuer, exercising due care, has reason to know it is false or misleading in any material respect.  “Knowing” violations are subject to civil penalties of up to $15 million.  “Knowing and willful” violations could result in criminal penalties, including imprisonment, fines and forfeiture of assets.

Legal Disclaimer  These materials should not be considered as, or as a substitute for, legal advice. Because the materials included here are general, they may not apply to your individual legal or factual circumstances. You should not take (or refrain from taking) any action based on the information you obtain from this document without first obtaining professional counsel.