New import requirements for consumer goods will take effect Nov. 12, 2008, under the Consumer Product Safety Improvement Act, which creates heightened requirements and potential liabilities for the thousands of companies involved in the manufacture and sale of consumer products.

Manufacturers and importers must certify in writing that the products that they import are in compliance with the rules, bans, regulations or standards administered by the Consumer Product Safety Commission (CPSC). The requirement applies to nearly all categories of consumer goods, including fabrics, wearing apparel, toys, jewelry, sporting goods, refrigerators, furniture, hazardous materials, vehicles and even pharmaceuticals subject to child-resistant cap standards. Products are categorized:

• Consumer product – Items produced or distributed for a consumer for household, school, recreation, consumption or enjoyment. There are nine exemptions: products not produced or distributed for sale to or to be used, consumed or enjoyed by a consumer; tobacco; motor vehicles; pesticides; firearms; aircraft and aircraft parts; boats; drugs and cosmetics; and food.
• Child care article – Items facilitating sleep, feeding, sucking or teething of children three and under.
• Children’s product – Products designed or intended primarily for children 12 years old and under.
• Children’s toys – Items designed or intended for play by children 12 years of age or younger.

Certificates of General Conformity are required by Nov. 12, to accompany each shipment manufactured on or after this date. The certificate must include: the full contact information of the manufacturer and importer, as well as the person maintaining records of certification results; the specific standard to which the product is subject; and the place and date of manufacture. The certificate should be in the form of a label on the product, an attachment on the shipment, a separate document or included in another document such as an invoice or bill of lading. In the future, the CPSC, in communication with CBP, may provide for electronic filing of certificates up to 24 hours before arrival.

The CPSC will accredit and publish a list of laboratories for testing. For children’s products, as of the effective dates below, the certification must also include the name of the accredited laboratory which performed the testing for compliance:

• Lead paint: Dec. 21, 2008
• Cribs and pacifiers: January 2009
• Small parts: February 2009                         
• Metal jewelry: March 2009
• Baby bouncers, walkers and jumpers: June 2009                
• 300 PPM lead content: August 2009
• CPSC children’s product safety rules: September 2009

If no certificate is issued, or if a false certificate is found to be on hand, the shipment may be refused admission and destroyed. Within six months, the trade community should expect a new rule relating to bond sufficiency to cover the costs of destruction. The Commission may also prohibit a party from exporting from the United States products that do not conform to the product safety rules under the Act.

Companies will also face increased penalties for non-compliance with the new regulations. Civil penalties are now $100,000 per violation with a $15 million maximum and criminal penalties, which may be enacted for issuing a false certificate, can be punishable by up to five years in prison. Increased penalties can jeopardize your business and a proactive plan must be considered to ensure compliance with the new regulations of the Act. The simplest mistake can lead to a violation, which could result in serious consequences. For additional information please visit CPSC’s website http://www.cpsc.gov/about/cpsia/cpsia.html

Best regards,

Ronald W Hiemann, CEO