Are you a Small Batch Manufacturer? If So you need to register today with CPSC!

Jan 2, 2012, by Bill Jacoby

 

FYI – Important if you are a Manufacturer of Children’s Products.

The CPSC has defined a “children’s product” to mean a consumer product designed or intended primarily for children 12 years of age or younger. In determining whether a consumer product is primarily intended for a child 12 years of age or younger, you need to take the following factors into consideration:

  • A statement by the manufacturer about the intended use of the product, including a label on the product if such a statement is reasonable.
  • Whether the product is represented in its packaging, display, promotion or advertising as appropriate for use by children 12 years of age or younger.
  • Whether a product is commonly recognized by consumers as being intended for use by a child 12 years of age or younger
  • The Age Determination Guidelines issued by the CPSC staff in September 2002, and any successor to such guidelines

If you qualify and if you are a manufacturer of children’s products and produce in small batches, it is critical that you register for a small batch exemption if your sales are less than 1 million dollars from the previous calendar year or you have manufactured less than 7,500 qualifying (children’s products) units. Registering for an exemption will exempt you from third party testing requirements under CPSIA.  Most apparel products were granted broad exemptions already but this will help you in the event your items include non-exempt components. Another thing to keep in mind is that this is just a testing exemption, you are still required to comply with standards defined under the CPSIA law.

HOW TO REGISTER

This is a two step process. Part one is to register your business which will get you an account user ID if you don’t already have one. It is pretty straightforward.

After you request the business ID, you’ll get an email saying that the CPSC is overwhelmed with applicants but they’ve got you in the queue and will get back to you as soon as they can. This may take up to 12 hours, maybe more. Once they get back to you, you will need to confirm the registration by activating your account by creating a password. You may hit a snag at this point if you’re using the wrong username -say, your company name. The username was created at sign up and consists of your first and last name. Once you’ve activated your account, you can sign up as a small batch manufacturer. This is also fairly straightforward.

As a qualifying small batch manufacturer, you will need to register with the CPSC on an annual basis. You will still need to issue a certificate (CPC/GCC), however you will not need to conduct third -party testing for either lead or phthalate content. Additionally, your products must still meet both the lead and phthalate content limits.

You can visit the CPSC page for more information. Ignorance of the law is no excuse so please register today.

 

CPSC Launches Registry for Small Batch Manufacturers

WASHINGTON, D.C. – Dec 23, 2011, CPSC is launching an easy-to-use registry for small batch manufacturers, which can be found at www.SaferProducts.gov. Congress directed CPSC to establish this registry for small batch manufacturers in Public Law 112-28, which was signed into law by President Obama on August 12, 2011.

Small batch manufacturers, defined as those who earned $1 million or less in total gross revenues from sales of consumer products in 2011, and who produced in total no more than 7,500 units of at least one consumer product in 2011 can register for calendar year 2012 at www.SaferProducts.gov. Qualifying small batch manufacturers are not required to third party test for compliance with certain children’s product safety rules during 2012 for products which they produced no more than 7,500 units of in the previous calendar year.

This new registry does not exempt small batch manufacturers from ensuring that their products comply with these mandatory standards. Small batch manufacturers must still provide a certificate of conformity, in which the manufacturers certify in writing that their products comply with the applicable regulations. However, except where required by law, the certificate does not have to be based on third party testing.

Effective December 31, 2011, the stays of enforcement on third-party testing and certification for limits on total lead content for children’s products, the ban on certain phthalates for children’s toys and child care articles, and the mandatory toy standard (ASTM F963) will end. CPSC launched an education and outreach effort to ensure widespread awareness of the new federal requirements and has also provided assistance and guidance to small batch manufacturers to help them understand these new requirements.

For additional information on the Small Batch Manufacturers Registry and small batch guidance materials, please see www.cpsc.gov/smallbatch. You may also contact our small business ombudsman Neal Cohen at ncohen@cpsc.gov or through www.cpsc.gov/sbo

The U.S. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risks of injury or death associated with the use of the thousands of consumer products under the agency’s jurisdiction. Deaths, injuries, and property damage from consumer product incidents cost the nation more than $900 billion annually. CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard. CPSC’s work to ensure the safety of consumer products – such as toys, cribs, power tools, cigarette lighters and household chemicals – contributed to a decline in the rate of deaths and injuries associated with consumer products over the past 30 years.

To report a dangerous product or a product-related injury, go online to: www.saferproducts.gov, call CPSC’s Hotline at (800) 638-2772 or teletypewriter at (800) 638-8270 for the hearing impaired. Consumers can obtain this news release and product safety information at www.cpsc.gov. To join a free e-mail subscription list, please go tohttps://www.cpsc.gov/cpsclist.aspx.

CPSIA,You & January 1, 2012….Are You Ready?

                          CPSIA Stay of Enforcement Expires 12/31/11                  

              Are you a Manufacturer, Distributor or Retailer Selling Children’s Products

              TOP 10 Things You Need to Know as we start the New Year

The intent of this list is to provide guidance to Children’s Product manufacturers and Retailers as they implement the provisions of the Consumer Product Safety Information Act (CPSIA), as administered by the Consumer Product Safety Commission (CPSC). The information in this article should not be construed as legal advice.

Dec 28,2011 by Bill Jacoby

1. Overview       CPSIA becomes fully effective on January 1st, 2012. As of this date, all Children’s product Manufacturers and Distributors are required to issue a General Certificate of Conformity (GCC), also known as a Children’s Product Certificate (CPC), based on third-party testing from a CPSC-recognized laboratory, to Retailers and distributors, and upon request to the CPSC for children’s products imported or distributed in commerce on or after January 1, 2012

2. Children’s Products Defined     The CPSC has defined a “children’s product” to mean a consumer product designed or intended primarily for children 12 years of age or younger. In determining whether a consumer product is primarily intended for a child 12 years of age or younger, you need to take the following factors into consideration:

  • A statement by the manufacturer about the intended use of the product, including a label on the product if such a statement is reasonable.
  • Whether the product is represented in its packaging, display, promotion or advertising as appropriate for use by children 12 years of age or younger.
  • Whether a product is commonly recognized by consumers as being intended for use by a child 12 years of age or younger
  • The Age Determination Guidelines issued by the CPSC staff in September 2002, and any successor to such guidelines

3. Third-Party Testing       All Children’s Products are required to undergo third- party testing.  Third – party testing must be conducted at a CPSC-approved, accredited laboratory to determine the total lead content in children’s product meets the approved limit.

4. Exemptions   Under the Legislation, which was passed and signed by President Obama in August 2011, there is an exemption for small batch Manufacturers. To qualify as a small batch manufacturer, you must meet this two-part test:

  1. Income: Total gross revenues from the prior calendar year (2011 sales to qualify for 2012) from the sale of all consumer products is $1million or less.
  2. Covered product: No more than 7500 units of the same product were manufactured in the previous calendar year. (2011)

As a qualifying small batch manufacturer, you will need to register with the CPSC on an annual basis. You will still need to issue a certificate (CPC/GCC), however you will not need to conduct third -party testing for either lead or phthalate content. Additionally, your products must still meet both the lead and phthalate content limits.

5. Phthalate Content Considerations       Congress has permanently prohibited three phthalates: DEHP,DBP and BBP ( in concentration of more than 0.1percent ) in children’s toys or child care articles. “Three additional phthalates: DINP,DIDP and DnOP, have been prohibited pending further study

A “children’s toy” means a product intended for a child 12 years of age or younger for use when playing, and a “child care article” means a product that a child three years of age and younger would use for sleeping, feeding, sucking or teething.                  Please note that wearing apparel falls under the definition of a child-care article if it is intended to facilitate eating and sleeping.

6. General Certificate of Conformity    A GCC / CPC is a document that certifies that the product complies with the CPSIA regulations, based on a test of each product or a reasonable testing program. The law requires that each import (and domestic manufacturer) shipment be “accompanied” by the required certificate. This certificate does not need to physically accompany the product. Under CPSC regulations, an electronic certificate is “accompanying” a shipment if the certificate is identified by a unique identifier and can be accessed via a World Wide Web URL or other electronic means, provided the URL or other electronic means and the unique identifier are created in advance and are available with the shipment.

Each GCC/ CPC certificate must include the following information:

  • Identification of the product covered by the certificate
  • Applicable CPSC rule or ban to which product is being certified
  • Identification of manufacturer
  • Identification of the person maintaining the testing information
  • Date and place where the product was manufactured.
  • Date and place where he product was tested.
  • Identification of the third– party testing facility used.

Note: GCC’s area used for consumer products and CPC (Children’s Product Certificate) is used for children’s Products.

7. Component Part Testing    Component testing, as outlined by the CPSC, is voluntary ad can be undertaken by either the component manufacturer or the manufacturer of the children’s product. For manufacturers producing children’s wearing apparel, the textile garment does not need to be tested as it has been exempted through regulation. Only the other components, such as the ink, zippers, buttons, etc. must be tested for lead content. If the children’s product also could be classified as a child-care article, only those plasticized elements need to be tested, and a component testing program can also be initiated to satisfy the testing requirements. There are documentation / recordkeeping requirements associated with component –part testing, and all records must be kept for at least five years.

8. Retailer Requirements    Each retailer must keep a GCC or CPC for each product sold on file. These will be sent by the manufacturer or distributor with each shipment or via email or other electronic format such as a url, or website starting on 1/1/12.  You must maintain these certificates and be able to produce them to the CPSC upon request.

9. Enforcement Penalties       The CPSC has issued a final rule that outlines the civil penalties associated with noncompliance activities. As of August 14th, 2009, the commission has the ability to seek penalty amounts of up to $100,000 for each violation. Maximum penalty amounts for a related series of violations have been increased from $1.8 million to $15 million. At a recent Toy Industry event there was a firm acknowledgement by CPSC Commissioner Nord that the January 1, 2012 enforcement date for CPSIA regulations will bring a change to the industry.  All Stays of Enforcement will have expired and the CPSC will be more diligent in its review of toys at ports of entry and failure to comply … with third party testing regulations, leaving off traffic information, and other discrepancies, will result in the holding of the shipment and fines of up to $100,000. 

10. Are you Ready?    For products manufactured or distributed in commerce after December 31, 2011, a GCC or CPC must accompany each shipment which clearly states that the product complies with either the lead or phthalate content limit as applicable and must contain information of the third-party testing facility used. All documentation must be retained for five years!

Do you have the operational process place in your company to makes sure the certificates are sent out each and every time? As a retailer, are you prepared for the flood of certificates coming your way and do you have documentation procedures in place for retention?

Jacoby Solutions has developed the CORE Audit™ (Compliance Operations Readiness Engagement Audit), the company’s proprietary approach to business operations compliance readiness. A one-stop shop for manufacturing and distribution companies in need of a solutions partner who can help them evolve their business while keeping an eye on compliance, Jacoby Solutions saves companies time, money and resources while helping them become CPSIA ready.

 

                   

CPSIA Testing Exemptions

In August 2011 an amendment to the Consumer Product Safety Improvement Act (CPSIA) was signed into law and provides an exemption to certain types of tests for children’s products.  To qualify for these exemptions you must first be classified as a “small batch manufacturer”.  The amendment identifies a small batch manufacturer as (both criteria must be met to qualify);

  • Sales – Total gross revenue from the prior calendar year (e.g., calendar year 2011 sales would be used to qualify for calendar year 2012) from the sale of all consumer products is $1 million or less
  • Production – Manufacture of no more than 7,500 units of the covered product from the prior calendar year (again like the example above, calendar year 2011 production would be used to qualify for calendar year 2012)

If a manufacturer qualifies based on the above, the next step is to register in The Small Batch Manufacturers Registry and once registered the manufacturer can apply the exemptions to certain types of testing to their products.

Small batch manufacturers will always be required to third party test for compliance certain children’s product safety rules as it applies to their product.  These rules that must be tested for are called Group A (http://www.cpsc.gov/info/toysafety/smallbatch.html).  Small batch manufacturers would not be required to test for other children’s product safety rules call Group B (http://www.cpsc.gov/info/toysafety/smallbatch.html).  It should be noted that even though the small batch manufacturer would not have to test for the safety rules in Group B, they must ensure that their products are in compliance with the underlying children’s product safety rules found in Group B.

Small batch manufacturers are still responsible for issuing a general certificate of conformity (GCC) for their products and must make sure they include their small batch manufacturers number issued by the CPSC to show their exemption from certain testing.

Registration is required every year to prove qualification as a small batch manufacturer and can be done on individual product groups.  For example, a manufacture can register as a small batch manufacturer for Product X (less than $1 million in sales and under 7,500 units produced in once calendar year) but still have Products Y and Z that are above either the sales or units threshold.

An importer can register as a small batch manufacture IF both the importer and the manufacturer of the product meet the sales and production standards of a small batch manufacturer.  For example, an importer that has no more than $1 million in gross revenues qualifies as a small batch manufacturer if it is importing goods from a foreign manufacturer that produces fewer than 7,500 units of a covered product and also has a gross revenue of less than $1 million.  On the other hand, an importer that imports goods from a foreign manufacturer that mass produces goods cannot be considered a small batch manufacturer for that product, even if that importer has less than $1 million in gross revenue and is importing fewer than 7,500 units of a product from that foreign manufacturer.

Some things to consider, as a small batch manufacturer there is some relief from required testing but in return the manufacturer agrees to have their business information made available to the public in a searchable database.  Registered small batch manufacturers will also be notified electronically of any Report of Harm involving their products submitted by consumers through the Safer Products publically available website.

2012 is just days away …. is your company ready? Need help in deciphering the law as it pertains to you? Jacoby Solutions can review your testing program and labeling process to make sure it contains all the elements as outlined under 1107 including record keeping. We also can provide services for Sourcing/Project Management testing for any new products you have in development or act as a liaison between you and your factory. Contact us today and see how we can save you money!

Bill Jacoby is the founder / principal at Jacoby Solutions and has developed the CORE Audit (Compliance Operations Readiness Engagement Audit), the company’s proprietary approach to business operations compliance readiness. A one-stop shop for manufacturing and distribution companies in need of a solutions partner who can help them evolve their business while keeping an eye on compliance, Jacoby Solutions saves companies time, money and resources while helping them become CPSIA ready.

CPSC Reinforces Children’s Sleepwear and Loungewear Enforcement Policy to Apparel Industry

CPSC Reinforces Children’s Sleepwear and Loungewear Enforcement Policy to Apparel Industry

Agency standards designed to prevent burn injuries to children

WASHINGTON, Dec. 23, 2011 /PRNewswire-USNewswire/ — In an effort to remind the industry of their obligations associated with children’s sleepwear and loungewear, the U.S. Consumer Product Safety Commission’s (CPSC’s) Director of Compliance and Field Operations sent a letter(pdf) to manufacturers, distributors, importers and retailers today reinforcing CPSC staff’s enforcement policy on children’s sleepwear and loungewear.

Highlights in the letter to industry review the definition of children’s sleepwear including loungewear as a type of children’s sleepwear. The Commission’s regulations define the term “children’s sleepwear” to include any product of wearing apparel (in sizes 0–14), such as nightgowns, pajamas, or similar or related items, such as robes, intended to be worn primarily for sleeping or activities related to sleeping. This definition exempts: (1) diapers and underwear; (2) “infant garments,” sized for a child nine months of age or younger; and (3) “tight-fitting garments” that meet specific maximum dimensions.

In the 1990s, a category of products called “loungewear” was introduced into the children’s market. CPSC staff views children’s “loungewear,” or other similar garments marketed as comfort wear, as garments worn primarily for sleep-related activities. Therefore, “loungewear” must comply with the children’s sleepwear standards.

The letter includes a summary of the Consumer Product Safety Improvement Act of 2008 (CPSIA) requirements for manufacturers and importers of children’s sleepwear sold online or in stores. These requirements include tracking labels, a certificate of compliance and testing requirements for phthalates, lead content and lead in surface coatings on snaps, zipper pulls and elsewhere on the product.

The CPSC is the federal safety agency responsible for the enforcement of the Flammable Fabrics Act (FFA), which includes protecting the public from the hazards of flammable fabrics, interior furnishings and wearing apparel, including children’s sleepwear.

The children’s sleepwear standards were developed to prevent children’s sleepwear from igniting due to exposure to ignition sources, such as matches/lighters, candles, ranges, stoves, space heaters and fireplaces. Most of the ignition incidents occurred while children were wearing sleepwear or sleep-related items during the evening before bedtime or in the morning around breakfast time.

CPSC Hotline: (800) 638-2772
CPSC Media Contact: (301) 504-7908

 

SOURCE U.S. Consumer Product Safety Commission

CPSIA – Managing Your Product Testing Risk in 2012

manage your risk in 2012

December 22, 2011 by Bill Jacoby

Section 14(a)(2) of the Consumer Product Safety Act (CPSA) requires certification testing for children’s products before they may be imported for consumption, warehousing or distribution into commerce.  Because testing is done prior to the product entering into the marketplace the risk to the manufacturer of a having a nonconforming product in the stream of commerce is low.  At this stage the manufacturer/importer of record can address the deficiency and resubmit the product for certification.  Once a product has entered the marketplace, continuing compliance is demonstrated through “periodic testing” of the product, which specifies a maximum testing interval based on the implementation of a periodic test plan by the manufacturer/importer.

Risk then becomes a factor for the manufacturer/importer as it weighs the possibility of “the potential for serious injury or death resulting from a noncompliant product” with the determination of the appropriate periodic testing interval. The Consumer Product Safety Commission (CPSC) in a recent final ruling indicated that periodic testing should be conducted at a minimum of once per year when using a periodic test plan. The CPSC does make clear in this ruling that manufacturers/importers of record may need to conduct periodic testing more frequently than on an annual basis in order to ensure their products continue to meet the safety regulations that the product was first certified under. They indicate that more frequent testing will help the manufacturer/importer identify noncompliant products faster and as a result, may limit the scope of any potential product recall, reduce the liability for civil penalties and potential damage to the manufacturer/importers reputation.

Managing risk can then be addressed using the mantra “test, test, test” which is managing it from the front end of the product cycle. While substantially reducing risk it can prove to be very expensive and time consuming for the manufacturer/importer. A less costly way of substantially reducing risk is by managing it from the back end at the production level.

Do you have the controls put into place to manage your manufacturers and supply chain to coordinate your testing plan with your compliance policy?

2012 is just days away …. is your company ready? Need help in deciphering the law as it pertains to you? Jacoby Solutions can review your testing program and labeling process to make sure it contains all the elements as outlined under 1107 including record keeping. We also can provide services for Sourcing/Project Management testing for any new products you have in development or act as a liaison between you and your factory. Contact us today and see how we can save you money!

Bill Jacoby is the founder / principal at Jacoby Solutions and has developed the CORE Audit (Compliance Operations Readiness Engagement Audit), the company’s proprietary approach to business operations compliance readiness. A one-stop shop for manufacturing and distribution companies in need of a solutions partner who can help them evolve their business while keeping an eye on compliance, Jacoby Solutions saves companies time, money and resources while helping them become CPSIA ready.