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Section 101 Request for Exemption from 100 ppm Lead Content 

(i) 	 A detailed description of the product, class of product, material, or component part, which contain lead 

in excess of 100 ppm, and all relevant data on manufacturing processes or procurement processes which 

make it impracticable or not technologically feasible to manufacture such product by removing the 

excess lead (over 100 ppm) or making the lead inaccessible. 

THE PRODUCT 

The products are die-cast ride-on pedal tractors, scaled for children ages 3-10. Attached is a photo 

representation of the product line l (Attachment 1). The components in question are the aluminum 

metal die-castings, listed below. All of these components are commercially powder coated at our 

facility. Powder coating, as well as the protective guard added to the bottom of the body casting at final 

assembly, makes the lead inaccessible to a child: 2 

• 	 Body castings (right & left sides). Average weight = 6 Ibs each - (Attachment 2) 

• 	 Rear wheel hubs (2 per unit). Average weight = .5 Ibs each - (Attachment 3) 

• 	 Wide front axle yoke (only if the replica requires front tires in a wide front-end formation - 1 per 

unit). Average weight = 2.5 Ibs - (Attachment 4) 

• 	 Wide front-end adaptor bracket (only if the replica requires front tires in a wide front-end 

formation - 2 per unit). Average weight =.4 Ibs each - (Attachment 5) 

THE DIE-CAST MATERIAL - ALLOYS 

Die-casted products are manufactured via one offour commercially available alloy families :

3 aluminum, 

magnesium, zinc or zinc-aluminum. The major considerations to determine the best alloy family for the 

product include : cost & weight, structural properties, surfacing finishing & coatings, corrosion 

resistance; and bearing properties & wear resistance. 

Aluminum is the best alloy of choice for our application. The reasons for selecting an aluminum alloy for 

pedal tractor production over the other alloy families include : 

• 	 Weight - Zinc is 2.5 times the weight of aluminum. A child's pedal tractor processed in 

aluminum has an approximate weight of 16.5 pounds. The same castings processed in zinc 

would weigh approximately 41.25 pounds. The assembled weight of an assembled aluminum 

pedal tractor is approximately 35 pounds. 4 In zinc the assembled weight would be 60 pounds. s 

I The promotional flyer chosen is from our 2009 product line to CNH. This page from our flyer was chosen as it 

shows narrow front and wide front versions of pedal tractors. The back side shows 1:16 scale farm toys, made of 

zinc. Within the scope of this submission we focus directly on children's pedal tractors. 

210" wheel included in each photograph for size reference purposes, only. 

3 All data concerning the die-cast industry is referenced from NADCA Publication #402; NADCA Product 

Sp ecification Standards for Die Castings. ©2009, i h Edition 

For more information on North American Die Casting Association see: www.diecasting.org. 

4 The die-castings referenced in Exhibits 2-5 account for 16.5 Ibs of the total assembled weight of 35 Ibs. 

Therefore, the balance of the components weighs 18.5 Ibs. In addition, to die-cast a product there is a 10% 

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Section 101 Request for Exemption from 100 ppm Lead Content 

Assuming the end-user is question weighs 80 pounds the zinc product would be 75% of their 

total body weight. Virtually impossible for the average 80 pound child to maneuver. 

• Cost - Aluminum is the lowest cost alloy per unit of volume. When factoring the large number 


of additional components necessary to complete the toy aluminum is an economical choice. 


The product's overall cost is > $125.00 per unit. 6 The cost of the aluminum is approximately 


7 $20.33 or 16% of the overall cost. 

• 	 Structural Properties - not a major factor in the decision to cast pedal tractors in aluminum 

alloys over zinc alloys. Yet, do we address the fact that we own aluminum presses for other 

purposes and found a creative outlet to increase our machine utilization. For instance, if we 

decided to retool products away from aluminum die-casting and instead, use plastic molding, 

our R&D, tooling costs and machinery & equipment costs would make this a poor investment. 

Our customers prefer the durability of metal farm toys over plastic farm toys. 

• 	 Surface Finish & Coatings - all die-cast products requiring surface finishing from either our zinc 

or aluminum casting departments can be treated with a variety of mechanical or manual surface 

finishing process as well as powder coating. Surface finishing & coatings is not a deciding factor 

for manufacturing pedal tractors in aluminum over zinc. Yet, we utilize a state-of-the-art 

powder coating process and have been powder coating all of our toy products since 1990. 

Therefore, our machinery, equipment and processes are in place. All metal surfaces exposed to 

a child are powder coated or contained by the addition of a steel chain guard enclosure under 

the bottom of the body casting. Our Quality Assurance and ISO 9001:2008 processes verify 

commerCially acceptable standards. 

• 	 Corrosion Resistance - Powder coating is the best finish we can apply at our facility. Powder 

coating is acceptable for all our toy application. Corrosion resistance, such as salt spray, 

anodizing, plating, e-coating etc., is not a concern of the toy industry. Therefore, we are able to 

select A380.1- the most universal and economical aluminum alloy commercially available in 

North America. 

• 	 Bearing Properties & Wear Resistance - the intended use of the product is for child's play or 

display purposes. In relationship to the bearing properties and wear resistance in other 

industries serviced at Dyersville Die Cast, B such as the outdoor lighting industry, boating 

industry, etc., a force placed on a pedal tractor by a child is minimal. 

material factor above the 16.5 Ibs to account for die configuration (gates, runners, etc.) which are considered as 


self-generated scrap and re-melted at the furnace. 


S Since zinc is 2.5 * the weight of aluminum, 16.5 Ibs * 2.5 = 41.25. 41.25 Ibs + 18.5 Ibs = 59.75 Ibs or" 60 Ibs. 


G16.51bs * 1.10 (scrap factor) = 18.15 Ibs. 18.15 Ibs * $1.12 (today's cost for A380.1)" $20.33 


7 $20.33 / $125.00 = $16% 


B See www.dyersvillediecast.com the website of our sister company for details on our processes. Our core 


competency is aluminum die-casting yet we have a number of value-added other processes. 


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Section 101 Request for Exemption from 100 ppm Lead Content 

Scale Models has been a farm toy manufacturer since 1978, mainly producing zinc replicas of historical 

and modern farm tractors & implements.

9 In 1994 we began manufacturing aluminum die-cast pedal 

tractors. The aluminum alloy selected was A380.1, the widely used commercial alloy, offering the best 

combination of material properties, ease of production, accessibility and cost. 

The pedal tractor components in question in Exhibit 2-5 are manufactured via the aluminum die-casting 

process. As stated above, the standard commercial aluminum alloy used for pedal tractors is A380.1. 

Today's London Metal Exchange (LME) price for A380.1, delivered to Dyersville, is $1.12/pound. 

1O 

THE DIE-CAST MANUFACTURING PROCESS 

The die-casting process begins with an alloyed ingot of metal, which Is melted to a temperature 

between 1200-1400 degrees Fahrenheit. The molten metal is poured into a cold-chamber press 

containing a heat-treated steel mold (die) configured to the end user's specifications. Under the desired 

pressure the molten metal solidifies within the cavity of the mold to create the metal casting, or part. 

After the casting is properly formed to the configuration of the mold, the mold is open in half so the 

casting can be ejected or released from the mold. The casting is either rapidly cooled via a quenching 

process or placed on a designated cooling rack, platform, conveyor belt, etc. After the casting is cooled 

to an appropriate temperature the excess metal (scrap) is trimmed from the casting. The trim press 

contains a trim die configured into the design of the final casting. Trimming is usually accomplished via 

a horizontal or vertical trim press, which sheers the runner, gate and overflows (self-generated scrap) 

from the casting. 

Next, the casting may need additional value-added processes, such as, flatness check, deburring, scale 

weighing as well as an inspection check. Acceptable castings are placed in the designated container for 

movement to the next department. The unacceptable castings and/or self-generated scrap are recycled 

and re-introduced to the melting furnace along with additional raw ingots. 

When a die-casting facility, such as Dyersville Die Cast, melts various alloys the proper material handling 

and quality control of all self-generated crap is extremely critical. As mentioned above, each alloy has its 

unique characteristics within the alloy family. As a custom die-caster, Dyersville Die Cast processes six 

different alloys for a large number of customers. To verify proper alloy usage we color-code all raw 

9 Zinc alloys have lead content < 100 ppm. 

10 Pricing explanation from Allied Metal Company: When you refer to A380.1 on the "LME, " there are 2 types: 1. 

Available worldwide. 2. Available in North America. I assume you would want North American Production. Next is 

the pricing structure ... In order to get LME A380.1 "North American Specialty Aluminum Alloy" (NASAAC) delivered 

to Dyersville, IA there are several surcharges along the way. 1" and foremost, you need to pay cash and wire the 

money. Next, you have all kinds ofsurcharges ... 1. If you specify a brand it is a penny/ pound. If you specify ingot 

over t-bars it is a penny/pound. If you want delivery out ofChicago, it is a penny/pound. To put it on a truck the 

warehouse charges a penny a pound. Last figure $.02 to freight it to Dyersville. So ... today's NASAAC price is 

$1.03/lb. If you factor in all of the above charges you are around $1.11-$1.12 delivered. Oh, and did I mention you 

can't get it within the next 30-90 days since a lot of the physical material is tied up in financing deals ... ? 

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Section 101 Request for Exemption from 100 ppm Lead Content 

ingots as well as take alloy samples from melting furnaces on a daily basis. The drawn samples are 

formed from a 2" diameter circular ingot figuration. When cooled, the sample is faced via a lathe to 

form a smooth, flat surface. Next, the chemical make-up of the sample is tested via our in-house 

spectrometer. 11 

THE DIE-CAST RECYCLING PROCESS 

Die-cast alloys offer the world and environment the most advantageous recycling options of all nonferrous materials, with a proven recycling infrastructure in place. Die-cast parts, such as found in 

automobiles and trucks, recycle or reclaim over 85% of the aluminum from each vehicle. The circle of 

recycling to create a die-casting is very simple, for example: 

• recycled items, such as vehicles, are collected; 

• the items are re-melted with other aluminum scrap to create alloyed ingots; 

• alloyed ingots and self-generated scrap are used to create a die-casting. 

From a recycling standpoint, die-casting is a very green industry. 

Die castings are not hazardous waste and pose no problems in handling or reprocessing, as some nonmetallic parts do. Aluminum die-casting alloy recycling has been in place since from the beginning of 

custom die-castings production in the 1930's. A wide variety of aluminum scrap can be reprocessed to 

produce all of the most widely specified die-casting alloys. 

Over 95% of the aluminum die-castings produced in North American are made of post-consumer 

recycled aluminum. Since the production of recycled aluminum alloy requires approximately 5% as 

much energy as primary aluminum production, there is a dramatic conservation of non-renewable 

energy resources. As an example, die-castings, as opposed to forgings or extrusions, can make far 

greater use of recycled materials. What is impossible to control in alloy production is the chemical 

make-up of each heat. An alloy will be chemically within specifications overall, but a spot check of the 

alloy properties will show chemical variety. In other words, alloy ingots are not homogeneous. 12 

II Dyersville Die Cast uses a Baird FSQ foundry Spectrovac Spectrometer, SeriaI1l2572A. The daily ingot samples 

are analyzed and any out of spec results are discussed with the Aluminum Die Cast Manager or his representative. 

The sample data is stored to the hard drive and also printed out and saved with the actual ingot sample. 

]2 The variation is alloy sample testing will be discussed in Section (iv). 

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Section 101 Request for Exemption from 100 ppm Lead Content 

Attached is a certified analysis for A380.1, received from our supplier, Allied Metal Company. 13 

(Attachment 6) In addition, Allied Metal is aware of the Section 101 decreased lead content necessary 

for our toys. Attached is an email correspondence addressing how Allied Metal is assisting our needs by 

setting aside A380.1 heats exhibiting <300 ppm chemistry. (Attachment 7) The decreased lead content 

is available, by chance only, but not consistently obtainable. 

13 Allied Metal Company, 1300 Kostner Avenue, Chicago, Il60651, 312-225-2800. www.alliedmetalcompany.com 

Metal ingots are purchased from four suppliers. Allied is our largest and oldest supplier of aluminum alloys within 

the 41-year history of Dyersville Die Cast, our sister company. 

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Section 101 Request for Exemption from 100 ppm Lead Content 

(ii) 	 Whether the product, class of product, material or component part, which contains lead in excess of 100 

ppm is likely to be placed in the mouth or ingested, taking into account normal and reasonably 

foreseeable use and abuse ofsuch products, class of product, material or component part by a child. 

THE ASSEMBLY OF THE COMPONENTS IN QUESTION 

For shipping purposes, pedal tractors require final assembly by the adult end-user. Attached is our 

Pedal Tractor Assembly Instruction Sheet (Attachment 8). General assembly includes: 

• 	 The main body, this casting assembly is commercially powder coated and ready for all additional 

components . 

• 	 Chain assembly, which includes all components affiliated with the ability to power the unit via 

the foot pedals, chain, pedal sprocket, and rear axle sprocket. 

• 	 The front axle assembly, which includes the front wheels and commercially powder coated 

wide-front mounting brackets and wide-front axle assembly (if needed for a wide-front end 

tractor version). 

• 	 The mounting of the commercially powder coated rear wheel hubs, rear wheels, hub caps, axle 

pin and plastic fenders (if included with the specific model). 

• 	 The plastic seat, plastic steering wheel and vinyl decorative decals. 

• 	 A properly assembled pedal tractor does not permit the child to come in contact with unpainted 

powder coated metal. 

THE INTENTED USE OF THE PRODUCT 

A child, typically between the ages of 3 and 10, is the appropriate end-user for our pedal tractors. The 

assumption is that the product is appropriately assembled by an adult. Pedal tractors are typically used 

indoor in a basement (in mid-west winters), shed or other out-building. Or used outdoors in a garage, 

on a driveway, a yard, etc. A pedal tractor requires a lot of physical exertion to maneuver by a child. 

The youngest children may only sit on the product, holding the steering wheel, under adult supervision. 

Normal use would be: 

• 	 The child approaches the product from the left or right hand side, possibly touching the top of 

the body casting and/or steering wheel when reaching the toy. 

• 	 Positioning their body at an angle to face the toy, the child grabs the plastic steering wheel with 

one hand, possibly grabs the plastic seat with their other hand. 

o 	 The child straddles the body casting between the steering wheel and seat. At this pOint, the 

child is facing the front of the tractor typically with both hands on the steering wheel. 

• 	 The child sits on the seat. 

• 	 When seated and holding the steering wheel, the child raises his or her feet to the foot pedals. 

• 	 The power to move the toy comes from the strength of the child's foot action. While pedaling, 

the child is pulling on the steering wheel. 

• 	 The child turns the steering, similar to steering a car, in the direction the child wishes to travel. 

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Section 101 Request for Exemption from 100 ppm Lead Content 

• 	 To dismount, the child removes his or her feet from the pedals, stands on the ground, swings his 

or her inside leg away from the toy and simply walks away. 

Therefore, under normal use, the child is primarily touching the plastic steering wheel with his or her 

hands. The steering wheel is used to steer the pedal tractor as well as to provide leverage while 

pedaling. An additional area the child may touch is the hitch pin on the back of the pedal tractor. The 

purpose of the hitch pin is to connect or disconnect a pull behind object. 

Outside of the body castings, the aluminum die-cast components itemized on page 1 are not touched by 

the child during normal use. The typical areas of the body casting which may be touched during play, 

but not actual use, include the front or top of the body casting, the center of the body casting between 

the seat and steering wheel and the hitch pin area at the back of the body casting. All metal casting 

surfaces are powder coated and too large for a child to place in their mouth. 

POTENTIAL LEAD ABUSE OF THE PRODUCT 

The smallest die-cast component, front -end adaptor bracket, is approximately 4" x 3" and weighing .4lb 

(Attachment 5). The end-use adult purchaser/customer is required to assemble this part to the body 

casting. For the exact location of this component, see the Pedal Tractor Assembly Instruction Sheet 

(Attachment 8). All metal castings are powder coated with lead-free substrates. Attached is the MSOS 

Section 2: Composition/Information of Ingredients (Attachment 9). A child would be not exposed to the 

raw component castings nor be affected by lead paint on the powder coated casting. A steel plate, 

known as a chain guard, covers the bottom of the body castings so there is no access for the child to 

touch the aluminum casting. 

Scale Models believes the opportunity for a child to be exposed to a lead concentration above 100 ppm 

is impossible. Only the body casting (Attachment 2) is in direct contact with the child during normal 

play. The size and weight of even the smallest aluminum casting potentially containing lead 

(Attachment 5) is impossible for a child to swallow. Plus, the component is located underneath the body 

casting and above the front wheel assembly, far away from where a child would normally play or sit on 

the pedal tractor. The need for adult assembly eliminates the possibility of a child becoming in contact 

with the aluminum castings as individual pieces. The product will not properly function without prior 

adult final assembly. 

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Section 101 Request for Exemption from 100 ppm Lead Content 

(iii) 	 Whether an exemption for the product, class of product, material, or component part will have a 

measureable adverse effect on public health or safety, taking into account normal and reasonably 

foreseeable use and abuse. 

THE HEALTH & SAFETY ASPECT OF THE PRODUCT 

The intended purchaser of our products is adults as the products sell for greater than $125.00. Our 

products are not something a young child could readily or easily purchase such as candy in a 

convenience store. Our toys are purchased by the consumer via one of four distribution channels: 

• 	 Agricultural dealership parts departments 

• 	 Regional farm-related merchandizing chain stores, such as Fleet Farm, Farm & Fleet, Tractor 

Supply Company 

• 	 Toy shows or agricultural-related special events (collector edition promotional products) 

• 	 Internet sales 

In many situations, our products are sold as special label promotional items commemorating a specific 

dated event. For many adults, the price makes the purchase a well thought out purchase instead of an 

impulse purchase. The price and the durability of the product relate to a high quality product. The 

assumption is that the adult purchaser would not spend the money on this toy if they viewed it as 

harmful to their child or grandchild. Many purchasers had similar products when they were children . 

Today they purchase our pedal tractor to add to their farm toy collection. 

Scale Models' die-cast pedal tractors have been on the market for 16 years. Included with this 

submission is our Scale Models Collector Guide. This 200+ page book gives a thorough explanation of 

our products and company history from 1978 - 2006. 

When the Consumer Product Safety Improvement Act of 2008 (CPSIA) initially decreased the lead 

content from 600 ppm to 300 ppm, we destroyed (re-melted) over 2000 sets of pedal tractor castings. 

Due to the highly recyclable nature of aluminum alloys we were able to reclaim the majority of the 

metal. Yet, this action resulted in an $8000+ scrap loss as well as productivity and overhead losses. 

Destruction of all raw material inventories was our first course of action. Our second course of action 

was to submit written comments, electronically, to the CPSC prior to the February 2010 public comment 

deadline. Thirdly, in May 2010 we contacted our United States Senators; Chuck Grassley and Tom 

Harkin as well as the CPSC for their assistance and support with this Made in the USA niche product line. 

We have kept abreast ofthe CPSIA's actions and adhered to the changes. Our diligent reaction has cost 

us lost sales and lost customers. This change resulted in 20 lost American manufacturing jobs and $2-3 

million in annual sales. Fortunately Dyersville Die Cast, Scale Models' sister company, was able to 

absorb the majority of the displaced employees. The lost sales to Scale Models are gone forever. 

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Section 101 Request for Exemption from 100 ppm Lead Content 

(iv) 	 Detailed information on the relied upon test methods for measuring lead content of products or 

materials including the type of equipment used or any other techniques employed and a statement as to 

why the data is representative of the lead content ofsuch products or materials generally (MSDS sheets 

will not be sufficient to satisfy the representative testing criteria because they do not show sufficient 

information regarding lead content. Rather, the showing necessary to obtain a determination must be 

based on objectively reasonable and representative testing of the material or product). 

Today, our annual toy sales are approximately $1 million, down from $3 million in 2008 (prior to the first 

decrease in lead content). A small business, such as Scale Models, cannot employ scientists to validate 

our products nor attorneys on staff to defend our actions. Product batch testing via a third party testing 

lab has been implemented. Following are test methods, which have been utilized or remain utilized in 

our process: 

THE TEST METHODS 

• 	 ISO Quality Certification -In 1999 we completed the process to be a universally standardized 

quality manufacturer via the ISO 9000 family of standa rds systems. Today we are compliant with 

the 9001:2008 requirements. Our Work Instruction WIDC-10 addresses Alloy Verification Process 

for Die Casting. (Attachment 10) 

• 	 External Raw Materials Analysis - As mentioned above, we purchase our ingots from four 

different regional sources, with Allied Metal Company being our largest source. All truck loads 

(semis) received are accompanied with a certified metal analysis (Attachment 6). 

• 	 Internal Controls for Metal Handling - Our lead metal handler inventories each alloy by colorcoding the stacks of ingots. Likewise, each die-cast cell is color coded to represent the alloy being 

processed for the job. Self-generated scrap is directly re-introduced to the furnace at each 

machine. 

• 	 Internal Raw Materials Analysis - Daily we conduct an internal metal analysis with our 

Spectrometer. 14 Attached is the result of our most current testing of A413.1, which represents 

our most recent casting run for pedal tractors. (Attachment 11) 

• 	 Elemental Research -In May 2009, we conducted our first round of third party testing to comply 

with the CPSIA Act of 2008. Elemental Research LaboratorylS was selected. Their testing 

concluded that all components were within specification except for the aluminum body casting, 

manufactured from A380.1. The duplicate samples tested from this component were 625 ppm 

and 603 ppm. From here, we worked with Allied Metal to obtain an alloy containing <300ppm. 

14 For details reference Footnote 10 as well as Attachment 10, WIDC-10 Alloy Verification Process for Die Ca sting. 

15 Elemental Research LLC, 4601 Devonshire Road, Harrisburg, PA 17109. In March 2009, Scale Models shipped a 

complete set of pedal tractor components to thi s lab for lead content testing. We know this data is obsolete but 

strive to show our pro-active approach to compliance of the CPSIA ruling. In reviewing the CPSC list of accredited 

labs, Elemental Research, LlC is listed. Yet, via the Internet and by calling the phone number the firm cannot be 

found. 

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Section 101 Request for Exemption from 100 ppm Lead Content 

Again, these results were received in May 2009 and today are obsolete. Yet, this testing verified 

that all other components of the product were within acceptable lead content limits. 

(Attachment 12) 

• 	 Stork Twin City Testing Corporation - Third party testing was repeated for five toys castings 

samples in September 2010 by Stork Testing Lab, St Paul, MN. 16 (Attachment 13) The most 

current results are from September 2010. Of the five samples only one, TCTtl4438-3, a toy 

combine, was at 300 ppm. Additional testing was considered for inclusion with this report but 

time was our constraint due to the September 30,2011 submission deadline. When we recently 

talked to Stork their lead-time would not allow us to have test results before October 2011. 

• 	 Technological Feasibility of Reducing lead Content to 100 ppm: Compliance Data - This 

memorandum, addressed to the CPSC Commission, contains an analysis of ten samples from one 

single piece of an aluminum alloy casting. The results of the ten samples of this single piece of 

material ranged from 82 ppm to 126 ppm with an average of 103 ppm.

17 (Attachment 14) The 

result of this larger sample proves the fact that alloyed aluminum is not a homogeneous product. 

16 Stork Twin City Testing Corporation, 662 Cromwell Avenue, St. Paul, MN 55114 www.storksmt.com/tct STCTC is 

listed as an accredited lab for the required testing. Conversation s were held with Kevin Beck, Chemist, 651-645­

3601. Turnaround for additional testing is > 2 weeks. Therefore, to comply with our September 30, 2011 deadline 

we were unable to submit additional samples for further testing. 

17 Memo for Office of Compliance to the CPSC Commi ss ion dated June 29,2011. 

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Section 101 Request for Exemption from 100 ppm Lead Content 

(v) Any other relevant data or information applicable to the request. 

HISTORICAL METHODOLOGY - Scale Model Toys 

As stated, Scale Models has been in the agricultural toy replica niche market since 1978. Along with our 

sister company, Dyersville Die Cast, we are a solid, well-established manufacturer in our community. 

We are an Iowa-based, privately-owned S-Corporation with family leadership and management. We are 

strongly committed to American manufacturing. To learn more about Scale Models and our founder, Joe 

Ertl, please see our 2006 Scale Models Collector Guide, included with this submission . 

HISTORICAL METHODOLOGY - The Farm Toy Industry 

The metal toy industry, including the metal farm toy industry, grew rapidly with the conclusion of World 

War II. Manufacturing opportunities were growing, baby boomers were being born and new processes 

in metal melting and plastics were being developed. Prior to WW II the majority of metal toys were cast 

iron. Outside of this statement, we believe the development and then consolidation of the industry is 

beyond the scope of this submission. Long story short, within the industry, we believe Scale Models is 

the only remaining USA die-cast metal toy, licensed manufacturer remaining. All former manufacturers 

today import toys from China .

18 

PRODUCT DEMAND 

As the farming industry consolidated from family farms with large families, to farming corporations and 

small farm families, the demand for farm toys has decreased. When Scale Models was established in 

1978 there were 13 U.S. Original Equipment Manufacturers (OEM's). Today, there remain three major 

U.S. OEM's; John Deere, AGCO and Case New Holland (CNH). 

Our significant decrease in sales began as the OEM's consolidated. Strategically, adapted our business 

model away from small toys (1 :16 scale is the industry standard) to the pedal tractors. See Scale Models 

Collector Guide. We focused on the niche, which we believed would be the most difficult to import as 

pedal tractors are large, heavy and lower volume sales. 

PRODUCT SUPPLY 

The barrier of entry into the pedal tractor niche market is expensive; from an R&D, tooling, and 

machinery standpoint. An additional barrier to entry is licensing. The major OEM's strongly control the 

use of their brands to protect their licensees and minimize knock-offs. We are fortunate to be a licensed 

vendor to all OEM's but without a Section 101 exemption we cannot manufacture product to cover the 

minimum guaranteed royalties we must contractually pay. 

18 A Google search for Farm Toy Manufacturers lists Tomy (Ertl brand toys), Spec Cast and Scale Models, all 

Dyersville, Iowa entities, as first page options. Of the three, Scale Models is the only remaining US manufa cturer. 

Also included are National Farm Toy Museum, National Farm Toy Hall of Fame and a few Mom & Pop hobbyists, 

who build or customize farm toys but are not licensed entities. 

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Section 101 Request for Exemption from 100 ppm Lead Content 

Today, our overall product demand has increased due to the scarcity (lack of supply) of our products in 

the marketplace. The scarcity is solely due to the CPSIA Section 1011ead content changes. As we stated 

earlier, the decreased ppm in lead content resulted in the scrapping of over 2000 units of saleable toys, 

destroyed solely on the basis of a date in time (August 14, 2009). These products have never been 

replaced. 

In the past two years we have been diligent with our actions to avoid violation of the lead content 

requirements. The imposed penalties are a risk we will not take. 

SCALE MODELS' SUBMISSIONS TO THE CPSC HEARII\lG PROCESS: 

As referenced on page 7 we actively communicated our concerns in the following manner: 


" submission to the public comment hearing prior to the February 16, 2010 deadline; 


" submission to Senators Chuck Grassley and Tom Harkin in May 2010; 


" additional submission to CPSC in May 2010. 


After the final CPSC ruling, we reviewed all materials available, including the statements from the 

Commissioners. We Sincerely appreciate Commissioner Nancy Nord's comments as she spoke our 

sentiments as an American farm toy manufacturerl 19 

THE BICYCLE INDUSTRY 

With interest, we have followed the lead content exemption given to the bicycle industry via the Bicycle 

Parts Suppliers Association (BPSA). The research conducted by the Gradient Corporation 20 in reference 

to metal exposure to children also reflects the pedal tractor industry. We believe the pedal tractor 

industry has more metal body surface but less metal exposure, due to the lack of steel and brass. We 

assume that the number of hours a child may spend on a pedal tractor is less than the number of hours 

of play on a bicycle. The scientific evaluation by The Gradient Corporation of components manufactured 

from certain lead-containing alloys used within the bicycle industry concluded: 

19 Excerpts from Commissioner Nancy Nord's July 13, 2011 statement: 

This is not the first time the majority has disregarded the costs to both businesses and consumers. Businesses told 

us that they aren't sure they can get the materials to make products to this onerous new standard. ... it is going to 

be much more expensive ... They told us they'll have to stop making some products, products that are safe and legal 

right now. Some told us they will go out of business entirely, especially small businesses who can't get the materials 

they need and can't risk CPSC penalties... 

As the majority went through the process they used to reach their conclusion, we heard from companies big and 

small across the children's market that, even ifit is possible to meet the 99.99% standard, it is not possible to do so 

reliably with recycled materials. There is just too much variability in the quality and composition of those materials. 

Faced with massive enforcement penalties, the companies cannot afford to risk making a product that is only 

99.98% lead-free ... 

20 Exposure Evaluation of Manufactured Components in Consideration for Exclusion from the Consumer Product 

Safety Improvement Act (CPSIA), January 26,2009. 

September 29,2011 Page 12 of 13 
SCALE MODELS 563-875-2436, x226 

502 5th Street NW, Dyersville, IA 52040 janeert I@dyersvillediecast.com 

Section 101 Request for Exemption from 100 ppm Lead Content 

"We have determined that the lead content in brass, aluminum, and steel alloys in certain 

components of these products does not present any risk of a measurable increase in blood lead 

levels in children and that an exclusion is therefore appropriate for such components. 1/21 

Components used in bicycle manufacturing are more complex in design and in materials than 

components used in our pedal tractor products. The age grade for both products is similar, with bicycles 

being sized to fit larger and older children and adults. The primary hand position on a pedal tractor is 

the plastic steering wheel. On a bicycle it would be the steel handlebars, possibly encapsulated with 

plastic or taped hand grips. 

It is our belief that a child exposed to a pedal tractor also has exposure to products referenced in the 

BPSA's exemption; such as a bicycle, jogger stroller and/or bicycle trailers. Since the CPSC has exempted 

the bicycle industry from the Section 101 lead content requirements t is our hope that the Commission 

will likewise exempt Scale Models' American-made pedal tractors from the same requirement. 

21 This is a direct quote from the Introduction of the above referenced Gradient Corporation report. 

September 29,2011 Page 13 of 13 
Corporate office of divisions: 301 Fifth Street NW 

SCALE MODELS and PO Box 327 

DYERSVILLE DIE CAST Dyersville, Iowa 52040-0327 

phone 563-875-2436 fax 563-875-2753 September 29,2011 www.sca/emode/toys.com 

www.dyersvil/ediecast.com 

Office of the Secretary 

US Consumer Product Safety Commission 

4330 East West Highway 

Bethesda, Maryland 20814 

RE: Section 101 Request for Exemption from 100 ppm Lead Content 

The Commission was not able to determine that]00 ppm total lead content is not technologically feasible. 

as stafffound that materials containing less than ]00 ppm total lead content are commercially available 

in the marketplace for manufacturers. 

The above statement is taken directly from the CPSC Release #11-278, dated July 15, 2011 . The above 

statement severely crippled our farm toy business on August 14,2011. This is our story: 

We are an American-made, Iowa-based company with a 33-year reputation manufacturingfarm toys. 


Our niche market is ride-on pedal tractors, sizedfor children ages 3-]0. We sell nostalgia; with many 


products sold to parents and grandparents with rural American roots. Our pedal tractors are purchased 


specifically for their children, grandchildren or for display purposes for adult collectors. 


Our tooling and equipment (investments > $]0,000,000) is designed to create aluminum die-castings 

from A380.] alloy. Aluminum alloys are derived .from recycled scrap metal to create ingots; ingots with 

lead content that is certifiedper heat but often greater than ]00 ppm. Alloyed metal is based offthe 

quality ofthe scrap it is derived.from. Alloyed metal is not a homogenous product, and never will be. 

We are a small manufacturer with 20]] sales around $], 000, 000. The restrictions andpenalties 

imposed by CPSC are not a risk we arefinancially willing to take. We do not employ attorneys or 

scientists. It breaks our corporate heart to exit the farm toy business, a business our founder, Joe Ertl, 

has participated infor the past 65 years. Yet, it is not worth the continued risk, imposed by our 

government, unless we are granted a permanent waiver .from the CPSc. 

Therefore, please accept and approve our submission to the Section ]0] Requestfor Exemption.from ]00 

ppm Lead Content. It is our hope that our request will be granted. 

Thank you. 

Sincerely, 

Jane Ertl 

Executive Vice President 

563/875-2436, x226 

Five copies enclosed