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Volume 15, Issue 213
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Thursday, October 23, 2008
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New Safety Certification Requirement Will Affect Reimported Goods Too
by Lauren Perez
Do you source consumer goods from a global wholesaler? Do you export products from the U.S. for warehousing in Canada, perform pick ’n pack operations there and subsequently reimport the goods? Do you source genuine consumer products abroad and import them into the U.S. to provide American consumers with competitive pricing on brand-name goods? If any of these situations describe your business operations, it may be nearly impossible for you to comply with the new safety certification requirements that take effect for regulated consumer products manufactured on or after Nov. 12. And if you can’t, your products may not be permitted to enter or be distributed within the U.S.
As a part of its implementation of the Consumer Protection Safety Improvement Act signed by President Bush this summer, beginning Nov. 12 the Consumer Product Safety Commission will require, as a condition of import and distribution within the U.S., that paper certificates of conformity accompany any regulated consumer product manufactured anywhere in the world. These certificates must be issued by the manufacturer, the importer AND the private labeler of each individual such article, as applicable. Each and every certificate must be based on actual product testing that is done either in-house or by an accredited third-party laboratory.
It is important to understand that this certification requirement will apply to each and every regulated consumer product: even if the products are sourced from global wholesalers and not manufacturers; even if domestically made products are warehoused in Canada for reimportation and the original producer is difficult to ascertain; even if hundreds or thousands of different products are stored and then picked and packed for consolidated shipment on a single truckload; and even if the importer and the manufacturer are in fact competitors and unlikely to have a direct relationship. The end result is that regulated goods will require at least one, usually two and sometimes three separate paper certificates of conformity in order to ever reach American consumers.
And if you fail to comply, the consequences will be severe: the affected products will be barred from entry and/or distribution in the U.S. and may be destroyed, company officials can be charged with newly increased civil penalties of up to $100,000 per violation and face the possibility of spending up to five years in jail, and there could be a scarcity of necessary consumer goods and a measurable escalation in retail prices.
If your business will be negatively affected by these new requirements, you now have until Oct. 29 to tell the CPSC why the certification requirements are impossible or unreasonably burdensome to comply with given real-life global commercial realities. Maybe there is a better way to ensure that imported products comply with U.S. standards without implementing regulations that have the potential to eliminate all supply chains except those directly from the original product manufacturer to the U.S. importer or reimporter. Maybe there is a better way to offer assurances of product safety to American consumers without holding foreign product manufacturers responsible for conducting conformity tests for standards and rules they may not understand and that they may not be equipped to perform. The only way the CPSC will know is if industry stakeholders submit comments by the Oct. 29 deadline.
Your input can in fact make a difference and alter the way the CPSC implements this certification requirement. For example, it is unclear why the CPSC is requiring certificates from both the importer and the manufacturer. If tests are conducted by the importer, the test results are verifiable by the CPSC and the importer issues its own certification confirming compliance with U.S. standards, regulations and rules, the CPSC may consider eliminating the requirement for a foreign manufacturer’s certificate if it proves impossible to obtain. It may also be possible to describe certain commercial realities in connection with which the CPSC would consider a consolidator or reimporter to be the manufacturer for purposes of sufficient certification. Industry members need to educate the CPSC about “normal” relationships between importers and manufacturers, “normal” methods of product testing and purchase and other details about actual commercial transactions to help it refine the rules on how paper certificates issued by importers in the U.S. can accompany products shipped from overseas.
Sandler, Travis & Rosenberg, P.A., is working with clients affected by the certification requirement in a variety of ways. We are hosting seminars and webinars for industry groups, providing regular updates through our daily WorldTrade\INTERACTIVE e-newsletter and client advisories, offering customized in-house training and implementation programs, engaging in one-on-one consultations to address company-specific concerns and drafting comments to the CPSC. Contact us for more information on how ST&R can assist you concerning this issue.
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Executive Editor: Shawn McCausland
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smccausland@strtrade.com
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Tel: (202) 216-9307
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