[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Proposed Rules]
[Pages 85760-85791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25911]



[[Page 85759]]

Vol. 88

Friday,

No. 235

December 8, 2023

Part III





Consumer Product Safety Commission





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16 CFR Part 1110





Certificates of Compliance; Proposed Rule

Federal Register / Vol. 88, No. 235 / Friday, December 8, 2023 / 
Proposed Rules

[[Page 85760]]


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CONSUMER PRODUCT SAFETY COMMISSION

16 CFR Part 1110

[CPSC Docket No. 2013-0017]


Certificates of Compliance

AGENCY: Consumer Product Safety Commission.

ACTION: Supplemental notice of proposed rulemaking.

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SUMMARY: The U.S. Consumer Product Safety Commission (Commission or 
CPSC) is issuing a supplemental notice of proposed rulemaking (SNPR) to 
revise the agency's rule for Certificates of Compliance (certificates). 
The SNPR proposes to align the certificate rule with other CPSC rules 
on testing and certification, and to implement, for imported CPSC-
regulated products and substances, electronic filing of certificates 
(eFiling) with U.S. Customs and Border Protection (CBP).

DATES: Submit comments by February 6, 2024.

ADDRESSES: Comments related to the Paperwork Reduction Act (PRA) 
aspects of the proposed rule should be directed to the Office of 
Information and Regulatory Affairs, the Office of Management and 
Budget, Attn: CPSC Desk Officer, FAX: 202-395-6974, or emailed to 
<a href="/cdn-cgi/l/email-protection#e7888e9586b89492858a8e94948e8889a7888a85c9828897c9808891"><span class="__cf_email__" data-cfemail="47282e3526183432252a2e34342e282907282a256922283769202831">[email protected]</span></a>.
    You may submit all other comments, identified by Docket No. CPSC-
2013-0017, by any of the following methods:
    Electronic Submissions: Submit electronic comments to the Federal 
eRulemaking Portal at: https://www.regulations.gov. Follow the 
instructions for submitting comments. CPSC typically does not accept 
comments submitted by email, except as described below. CPSC encourages 
you to submit electronic comments by using the Federal eRulemaking 
Portal.
    Mail/Hand Delivery/Courier/Confidential Written Submissions: Submit 
comments by mail, hand delivery, or courier to: Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Bethesda, MD 20814; telephone: (301) 504-7479. If you wish to submit 
confidential business information, trade secret information, or other 
sensitive or protected information that you do not want to be available 
to the public, you may submit such comments by mail, hand delivery, or 
courier, or you may email them to: <a href="/cdn-cgi/l/email-protection#62011211014f0d1122011211014c050d14"><span class="__cf_email__" data-cfemail="2d4e5d5e4e00425e6d4e5d5e4e034a425b">[email protected]</span></a>.
    Instructions: All submissions must include the agency name and 
docket number. CPSC may post all comments without change, including any 
personal identifiers, contact information, or other personal 
information provided, to: https://www.regulations.gov. Do not submit 
through this website: confidential business information, trade secret 
information, or other sensitive or protected information that you do 
not want to be available to the public. If you wish to submit such 
information, please submit it according to the instructions for mail/
hand delivery/courier/confidential written submissions.
    Docket: For access to the docket to read background documents or 
comments received, go to: https://www.regulations.gov, and insert the 
docket number, CPSC-2013-0017, into the ``Search'' box, and follow the 
prompts.

FOR FURTHER INFORMATION CONTACT: Arthur Laciak, Project Manager, 
eFiling Program Specialist, Office of Import Surveillance, Consumer 
Product Safety Commission, 4330 East West Highway, Bethesda, MD 20814; 
(301) 504-7516, or by email to: <a href="/cdn-cgi/l/email-protection#f2939e93919b9399b291828191dc959d84"><span class="__cf_email__" data-cfemail="f7969b96949e969cb794878494d9909881">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    The Commission proposes to revise the rule for certificates, 
codified at 16 CFR part 1110 (part 1110 or the 1110 rule) to clarify 
certificate requirements for all regulated products and substances, to 
align the rule with other testing rules, and to implement electronic 
filing of certificates for imported products with CBP (eFiling).\1\ 
Only finished products or substances that are subject to a CPSC rule, 
ban, standard, or regulation, are required to be tested and certified, 
and only such finished products that are imported into the United 
States for consumption or warehousing would be required to eFile 
certificates with CBP. Section 14(g)(4) of the Consumer Product Safety 
Act (CPSA) (15 U.S.C. 2063(g)(4)) gives CPSC the authority to require 
eFiling, by rule.\2\
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    \1\ This SNPR includes information and analysis from the Staff 
Briefing Package: Supplemental Notice of Proposed Rulemaking to 
Revise 16 CFR part 1110 for Certificates of Compliance to Implement 
eFiling, dated November 8, 2023 (Staff's SNPR Briefing Package), 
available at: https://www.cpsc.gov/s3fs-public/Ballot-Package-Draft-SNPR-to-Revise-16-CFR-part-1110-Certificates-of-Compliance.pdf?VersionId=3DjqxMqgXJNQ0yeFRgKzfsRj2GgKenqD.
    \2\ On November 15, 2023, the Commission voted (4-0) to publish 
this supplemental notice of proposed rulemaking.
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    The Commission established part 1110 to implement sections 14(a) 
and (g) of the CPSA (15 U.S.C. 2063(a) and (g)), which provide 
requirements for the content, form, and availability of certificates. 
After passage of the Consumer Product Safety Improvement Act of 2008 
(CPSIA), which amended section 14 of the CPSA to add testing and 
certification requirements for CPSC-regulated consumer products and 
substances, the Commission sought to bring clarity and reduce burden to 
stakeholders through part 1110, by, among other things, limiting the 
parties required to issue certificates and allowing electronic 
certificates (available through email or a worldwide web link) to 
``accompany'' product shipments instead of paper certificates. 73 FR 
68328 (Nov. 18, 2008).
    After gaining experience with certificates in 2013, the Commission 
issued a notice of proposed rulemaking (NPR) to revise part 1110 to 
align with rules for testing children's products under 16 CFR part 1107 
(part 1107 or the 1107 rule) and component part testing under 16 CFR 
part 1109 (part 1109 or the 1109 rule), and to require eFiling of 
certificates for imported consumer products with CBP at the time of 
filing the CBP entry, or the time of filing the entry and entry 
summary, if both are filed together. 15 U.S.C. 2063(g)(4)); 78 FR 28080 
(May 13, 2013) (2013 NPR).\3\ As described in section II.D of this 
preamble, since 2013 the Commission has undertaken a series of projects 
to support an eFiling program. Building on the 2013 NPR, this SNPR 
proposes to amend part 1110 to, among other things: revise terminology 
to integrate concepts introduced in the 1107 and 1109 rules; broaden 
the definition of ``importer'' to address commenters' concerns about 
the product certifier having control over and knowledge of the goods; 
allow private labelers to test and certify products; and implement 
eFiling for imported, CPSC-regulated consumer products and substances.
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    \3\ ``Entry'' for CBP purposes is a declaration of goods 
arriving in the United States, whereas an ``entry summary'' contains 
additional documentation necessary for CBP to assess duties, collect 
statistics, and determine whether other requirements of law have 
been met. See 19 CFR 141.0a(a) and (b). For more information on 
CBP's entry processes see: https://www.cbp.gov/trade/programs-administration/entry-summary-and-post-release-processes.
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I. Statutory Authority

    Section 102 of the CPSIA amended section 14(a) of the CPSA to 
require that manufacturers (including importers) and private labelers 
issue certificates for all consumer products subject to a consumer 
product safety rule under the CPSA, or a similar rule, ban, standard, 
or regulation under any other law enforced by the Commission, that are 
imported for consumption or warehousing, or distributed in commerce. 15 
U.S.C. 2052(a)(11) and

[[Page 85761]]

2063(a)(1). Certificates for children's products (Children's Product 
Certificates or CPCs) must be based on testing performed by a third 
party conformity assessment body whose accreditation to perform such 
testing has been accepted by the Commission. 15 U.S.C. 2063(a)(2). 
Certificates for non-children's products (General Certificates of 
Conformity or GCCs) must be based on a test of each product or a 
reasonable testing program. 15 U.S.C. 2063(a)(1)(A). Section 
14(a)(1)(B) of the CPSA requires that certificates specify each rule, 
ban, standard, or regulation applicable to the product. 15 U.S.C. 
2063(a)(1)(B).
    Section 14(g) of the CPSA contains additional requirements for the 
form, content, and availability of certificates. 15 U.S.C. 2063(g). 
Section 14(g)(1) of the CPSA requires that each certificate identify 
the manufacturer (including importer) or private labeler issuing the 
certificate, as well as any third party conformity assessment body on 
whose testing the certificate depends. 15 U.S.C. 2063(g)(1). At a 
minimum, certificates must include the date and place of manufacture; 
the date and place where the product was tested; each party's name, 
full mailing address, and telephone number; and contact information for 
the individual responsible for maintaining records of test results. Id. 
Section 14(g)(2) of the CPSA requires that every certificate be legible 
and that all contents be in English; contents can additionally be in 
another language. 15 U.S.C. 2063(g)(2).
    Certificates must accompany the applicable product or shipment of 
products covered by the certificate, and a copy of the certificate must 
be furnished to each distributor or retailer of the product. Upon 
request, the manufacturer (including importer) or private labeler 
issuing the certificate must provide a copy of the certificate to the 
Commission. 15 U.S.C. 2063(g)(3). Finally, section 14(g)(4) of the CPSA 
states that in consultation with the Commissioner of Customs, CPSC may, 
by rule, provide for the electronic filing of certificates up to 24 
hours before arrival of an imported product. Upon request, the 
manufacturer (including importer) or private labeler issuing the 
certificate must provide a copy of such certificate to the Commission 
and to CBP. 15 U.S.C. 2063(g)(4).
    In addition to the statutory authority to require certificates for 
regulated products and substances, as outlined in sections 14(a) and 
(g) of the CPSA, the Commission has general authority with regard to 
certificates pursuant to section 3 of the CPSIA, which provides that 
``the Commission may issue regulations, as necessary, to implement this 
Act and the amendments made by this Act.'' Notes to 15 U.S.C. 2051 
(citing Pub. L. 110-314, 3, Aug. 14, 2008, 122 Stat. 3017).

II. Background: Certificates and eFiling

A. The 1110 Rule

    As noted, the CPSIA expanded section 14 of the CPSA to require 
testing and certification of consumer products subject to a consumer 
product safety rule, or to a similar rule, ban, standard, or regulation 
under any other act enforced by the Commission. 15 U.S.C. 2063(a)(1). 
When the Commission initially issued the 1110 rule to implement this 
requirement, it adopted an approach that was ``streamlined, at least in 
its initial phase.'' 73 FR 68328 (Nov. 18, 2008). The rule designated 
the importer as the sole entity responsible for issuing certificates 
for imported consumer products, stating that to ``accompany'' a product 
or product shipment, the certificate must be available to the 
Commission no later than the time when the product or shipment is 
available for inspection in the United States. Id. The rule designated 
domestic manufacturers as the sole entity responsible for issuing 
certificates for domestically manufactured products, stating that such 
certificates must be available to the Commission upon request before 
the product or shipment is introduced into domestic commerce. Id.
    The rule provided that the requirements in section 14(g)(1) and (3) 
of the CPSA that a certificate ``accompany'' a product or product 
shipment, be furnished to retailers and distributors, and be provided 
to CPSC upon request, could be satisfied by providing the statutorily 
required certificate information by electronic means. The rule 
explained that the certificate must be reasonably accessed by 
information on the product or accompanying the product or shipment, for 
example, a unique identifier that can be accessed via a Uniform 
Resource Locator (URL) or other electronic means. 73 FR 68330-31. In 
practice, many importers and manufacturers email certificates to CPSC 
in PDF format, when requested. The existing 1110 rule did not implement 
the authority in section 14(g)(4) of the CPSA to have certificates for 
imported products be eFiled with CBP. 15 U.S.C. 2063(g)(4).
    The 2008 rule was not expected to be permanent. Instead, the 
Commission explained at the time that it ``expects that with time 
CPSIA's expanded certification requirements will become more routine 
and it then would consider whether this rule needs to be revised based 
on actual experience.'' 73 FR 68328.

B. The 2013 Notice of Proposed Rulemaking

    By 2012, CPSC staff had worked to refine the Risk Assessment 
Methodology (RAM) required by section 222 of the CPSIA, and had begun 
to grapple with the rise of internet-based companies selling consumer 
products (eCommerce) and direct-to-consumer shipments, which made 
CPSC's interdiction of non-compliant products more challenging. To 
address those concerns, and to be able to use certificate data for 
targeting and enforcement of CPSC's rules at the ports, CPSC proposed 
in the 2013 NPR to implement eFiling of certificates with CBP for 
regulated, imported products, pursuant to section 14(g)(4) of the CPSA.
    The 2013 NPR also sought to revise part 1110 to integrate the rule 
into the testing and certification regime contemplated in then-new 
parts 1107 and 1109. The 1107 rule sets forth requirements for 
children's product testing and certification, including when and how 
products must be tested and certified, and recordkeeping requirements. 
The 1109 rule sets forth conditions and requirements for component part 
testing and certification for both children's and non-children's 
products. Both rules introduced new concepts and terminology related to 
certificates that are not present in the 1110 rule of 2008.
    CPSC received over 500 comments from more than 70 commenters, as 
summarized in section III of this preamble, many asserting that 
implementation of the proposed eFiling requirement was infeasible and 
unreasonable due to the lack of information technology (IT) 
infrastructure for CBP to accept such data. At that time, CBP had not 
yet completed its Automated Commercial Environment (ACE) interface nor 
the Partner Government Agency (PGA) Message Set, which now enable 
importers or their brokers to submit electronic import data. For its 
part, CPSC had not yet fully implemented the RAM.
    Since publication of the 2013 NPR, CPSC has implemented RAM 2.0 and 
CBP has implemented ACE and developed the PGA Message Set.\4\ In

[[Page 85762]]

2016 and 2017, CPSC conducted an eFiling Alpha Pilot, in coordination 
with CBP, involving eight volunteer participants who successfully 
eFiled a limited set of targeting/enforcement data for regulated 
products. Also, in 2017, CPSC conducted a Certificate Study to assess 
CPCS's ability to use certificates and the information on them for risk 
assessment and targeting of regulated, imported consumer products. In 
December 2020, the Commission approved of a multi-year plan to 
implement an eFiling program at CPSC.\5\ The next steps in this eFiling 
plan include the ongoing eFiling Beta Pilot, which is scheduled to 
begin accepting data in the fall of 2023, and developing this SNPR.\6\
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    \4\ CBP created the PGA Message Set to collect from importers 
additional agency-related import data for partner government 
agencies, or PGAs, and transmit the data elements via ACE at time of 
entry or entry summary. CPSC created two PGA Message Sets: the Full 
Message Set and Reference Message Set. When using a Full Message 
Set, certifiers will provide all certificate data in the form of 
data elements. When using a Reference Message Set, certifiers will 
provide a reference ID to certificate data entered into CPSC's 
Product Registry.
    \5\ The 2020 staff briefing package to implement an eFiling 
program at CPSC is available at: https://cpsc.gov/s3fs-public/CPSC-Plan-to-Create-an-eFiling-Program-for-Imported-Consumer-Products.pdf?BYXOLX2gJmF4NaAN1LCMmqiXRISuaRkr=. The record of 
commission action is available at: https://www.cpsc.gov/s3fs-public/RCA-CPSC-Plan-to-Create-an-eFiling-Program-for-Imported-Consumer-Products.pdf.
    \6\ The Federal Register Notice announcing the Beta Pilot can 
found here: https://www.regulations.gov/document/CPSC-2022-0020-0001.
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C. CPSC's Risk Assessment and Targeting Efforts for Imported Consumer 
Products

    CPSC's RAM currently receives an electronic feed of import entry 
data collected by CBP. The RAM is optimized to ingest CBP's data, using 
algorithms to identify potentially noncompliant consumer product 
shipments for CPSC's inspection. However, the data ingested by RAM are 
collected by CBP for its enforcement and tariff purposes, which do not 
always align with CPSC's risk assessment purposes. CPSC's Certificate 
Study confirmed that CPSC can analyze certificate data focused 
specifically on product manufacturing and testing to improve RAM's 
precision in targeting and identifying high-risk shipments for 
examination.
    Currently, CPSC's import enforcement methodology is labor-intensive 
and lacks an efficient means of using product-specific data to identify 
potentially non-compliant products. CPSC co-locates staff alongside CBP 
staff at ports of entry to target shipments for examination. Once 
identified, staff request that CBP place a shipment on hold and 
transport it to an examination station for CPSC inspection; an 
examination hold creates delay that costs businesses and CPSC time and 
money. Accordingly, stakeholders and CPSC have a common interest in 
reducing examinations of compliant products and maximizing examinations 
of products that are likely to be violative. Currently, certificates 
are collected only after a shipment is stopped for examination; 
certificate data are not used to target shipments for examination. 
Using certificate data for more precise targeting would maximize 
examination efficiency for stakeholders and staff; keep hazardous, 
violative products out of consumer's hands; and reduce burden by not 
delaying compliant product and not holding up shipments at the port 
while waiting to receive a certificate.
    Using certificate data can also improve CPSC's ability to target 
low-value shipments. CPSC's current targeting capabilities were 
designed for larger commercial shipments for which the Commission 
receives CBP data. CPSC's port staff are currently unable to pinpoint 
with a high degree of certainty potentially non-compliant and hazardous 
products in low-value shipments, which CBP refers to as ``de minimis 
shipments,'' and international mail shipments, which can lead to CPSC 
inspections that delay release of compliant products. Specifically, 
using product-specific certificate information such as product 
description, finished product manufacturer, date of manufacture, and 
date and place of testing, would provide CPSC with greater insights 
into all imported products and substances, including de minimis 
shipments. Hundreds of thousands of de minimis shipments enter the 
United States daily; the ability to use algorithms to assess the data 
and identify higher-risk shipments, even those of low value that occur 
frequently, would enhance CPSC's ability to focus limited resources to 
identify and interdict higher risk shipments.
    Finally, although CBP is unable to process any certificate data 
collected for international mail shipments subject to CPSC requirements 
via ACE, the SNPR proposes a modified eFiling requirement for 
international mail. Importers using international mail would be 
required to enter certificate data into the Product Registry \7\ before 
the shipment arrives in the United States, so that staff can analyze 
this data and target mail shipments for examination.
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    \7\ The Product Registry is a certificate database created and 
maintained by CPSC. Importers can enter or upload certificate data 
for regulated consumer products and substances that can be 
referenced on an entry filing each time the product is imported 
without having to re-enter the relevant data elements.
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D. CPSC eFiling Related Projects Since the 2013 NPR

1. eFiling Alpha Pilot (2016)
    After publication of the 2013 NPR, CPSC conducted a pilot to test 
the feasibility of eFiling certain ``targeting/enforcement data 
elements'' on a certificate by participant industry volunteers. The 
2016 eFiling Alpha Pilot was a 6-month, joint initiative between CPSC, 
CBP, and eight volunteer importers to establish and assess the 
infrastructure and processes required for a successful eFiling program. 
Participants used a process similar to that used in the current eFiling 
Beta Pilot, having a choice between entering data elements in a Product 
Registry, and providing a reference number to the Product Registry when 
filing PGA Message Set data with CBP, or filing all data elements in a 
PGA Message Set. CPSC staff issued a report detailing the procedure and 
results of the eFiling Alpha Pilot, available on CPSC's website: 
https://www.cpsc.gov/s3fs-public/eFiling_Alpha_Pilot_Evaluation_Report-May_24_2017.pdf?uK.UhjHabKD5yjQ.1w06tudrnvuuWIra.
2. Certificate Study (2017)
    Following the eFiling Alpha Pilot, from October 2017 to February 
2018, CPSC staff conducted a Certificate of Compliance Study to assess 
any correlation between the timing and availability of a certificate, 
the data provided on a certificate, and the violation rate of imported 
finished consumer products. Staff's eFiling Certificate of Compliance 
Study Assessment is available on CPSC's website at: https://www.cpsc.gov/s3fs-public/eFiling-Certificate-Study-Evaluation-Report-FINAL.pdf.
    Staff's analysis of the data collected in this study indicates that 
the ability to provide a certificate within 24 hours of CPSC's request 
is strongly associated with product compliance. The limited data set 
indicated that an entry is five times more likely to have a violation 
if a certificate is never provided to CPSC, and three times more likely 
if one is provided later than 24 hours after CPSC's request. Staff also 
identified four data elements from certificates that show potential 
correlations to the rate of violations. Other data elements on a 
certificate, such as the list of applicable citations, would allow CPSC 
similarly to apply algorithms to target certain products and/or rules.

[[Page 85763]]

3. eFiling Beta Pilot (Current)
    On December 18, 2020, the Commission approved staff's recommended 
plan to implement eFiling and to conduct an eFiling Beta Pilot, in 
collaboration with CBP, that would collect certificate data via a PGA 
Message Set.\8\ Following this, on June 10, 2022, the Commission issued 
a Federal Register Notice (87 FR 35513 (June 10, 2022)) \9\ to announce 
the eFiling Beta Pilot and recruit volunteers. The eFiling Beta Pilot 
has a product scope of approximately 300 Harmonized Tariff Schedule 
(HTS) codes prioritized for imports and includes all data fields on a 
certificate. CPSC updated the Product Registry used in the Alpha Pilot, 
to create a one-time data entry repository of certificate data that can 
be referenced in a PGA Message Set multiple times as a product is 
offered for importation. Additionally, staff has been meeting with a 
subset of nine participant volunteers to advise in IT development for 
the eFiling Beta Pilot. Meeting logs and related material for this work 
are available on https://www.regulations.gov on docket number CPSC-
2022-0020. CPSC's website also includes information on eFiling and the 
eFiling Beta Pilot, available at: https://www.cpsc.gov/eFiling.
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    \8\ See Supra, n.5.
    \9\ https://www.regulations.gov/document/CPSC-2022-0020-0001.
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    The purpose of the eFiling Beta Pilot is to build upon the Alpha 
Pilot, develop and test the infrastructure necessary to support a full-
scale eFiling requirement, inform CPSC's rulemaking effort, and develop 
internal procedures to support enforcement. The Beta Pilot will also 
advance the ``Single Window'' \10\ concept to facilitate electronic 
collection, processing, sharing, and reviewing of trade data and 
documents required by CPSC during the cargo import process, and will 
assist CPSC in targeting imports more accurately to facilitate the flow 
of legitimate trade and enhance targeting of noncompliant trade.
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    \10\ ACE is CBP's system through which the U.S. government has 
implemented the ``single window,'' the primary system for processing 
all trade-related import and export data required by government 
agencies. The ``single window'' transitions away from paper-based 
procedures to provide government and industry faster, more 
streamlined processes.
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    The eFiling Beta Pilot also will assess CPSC and importer 
capabilities for eFiling certificate data elements via the PGA Message 
Set and incorporating the data elements into CPSC's RAM to risk score 
and interdict noncompliant products. The Beta Pilot will include more 
participants than the Alpha Pilot (over 30, more than in the Alpha 
Pilot), include more data elements (dates of manufacture and testing), 
and involve more varied consumer products under CPSC's jurisdiction 
(products classified under approximately 300 HTS codes).
4. Developing an eFiling System
    To minimize burden, CPSC's eFiling System will allow importers to 
enter certificate data through two means: Full Message Set or Reference 
Message Set using the Product Registry.\11\ When using the Full Message 
Set, the importer will submit all certificate data elements via CBP's 
ACE. When using the Reference Message Set, the importer will enter all 
certificate data elements into the Product Registry prior to filing 
entry with CBP, and they will submit a unique reference identifier (ID) 
via ACE.\12\ Tab B of Staff's SNPR Briefing Package contains the CBP 
and Trade Automated Interface Requirement, which details the technical 
requirements to file each Message Set in ACE.
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    \11\ The eFiling system collectively refers to the PGA Message 
Set and Product Registry and process of filing certificate data. 
Certifiers (meaning importers, manufacturers, or private labelers) 
are responsible for the certificate data submitted, but brokers or 
other designated parties can upload data and certify products on the 
certifier's behalf.
    \12\ Other trade parties, such as brokers and laboratories, may 
enter certificate data into the Product Registry on the certifier's 
behalf.
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    The Product Registry allows importers, or their designees, to enter 
the certificate data elements via a user interface, batch upload, and/
or Application Programing Interface (API) upload. The user interface is 
a step-by-step process, where the importer submits one certificate at a 
time. The batch upload allows the importer to submit multiple 
certificates using a Comma-Separated Value (CSV) template. The API 
upload allows the importer to build an API connection via the Product 
Registry and their data systems to instantaneously enter certificates.
    Additionally, the Product Registry provides multiple features to 
improve the importer's interaction. The importer has a business account 
in the Product Registry where users representing the importer can view 
all certificates submitted into the registry. The importer can also 
provide other third parties, such as a broker or test laboratory, with 
different levels of permission to submit certificate data on their 
behalf. Tab A of Staff's SNPR Briefing Package contains a detailed user 
guide for the Product Registry as used during the eFiling Beta Pilot.

III. Response to Comments

    In response to the 2013 notice of proposed rulemaking (2013 NPR) to 
revise 16 CFR part 1110, CPSC received over 500 comments from over 70 
different commenters. Comment summaries include a code to identify the 
commenter, as shown in Table 1. Below we summarize and respond to the 
public comments by topic.

                                                                 Table 1--Commenter Key
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--------------------------------------------------------------------------------------------------------------------------------------------------------
2.....................................  Rich Frog Industries.                       40......................  Bicycle Product Suppliers Association.
3.....................................  Douglas Boysen.                             41......................  American Apparel and Footwear Association
                                                                                                               (AAFA).
4.....................................  DT Swiss, Inc.                              42......................  American Promotional Events.
7.....................................  The Hosiery Association.                    43......................  Tom Dixon.
8.....................................  Shayla Sharp.                               44......................  UPS Supply Chain Solutions.
9.....................................  GS1 US.                                     45......................  Consumer Specialty Products Association.
10....................................  Wald & Co, Inc.                             46......................  Juvenile Products Manufacturers
                                                                                                               Association (JPMA).
11....................................  Frette S.R.L.                               47......................  Toy Industry Association (TIA).
12....................................  National Customs Brokers and Forwarders     48......................  Erika Hickey.
                                         Association of America (NCBFAA).
13....................................  American Eagle Superstore.                  49......................  Handmade Toy Alliance.
14....................................  Writing Instrument Manufacturers            50......................  National Association of Manufacturers
                                         Association.                                                          (NAM).
15....................................  US Council for International Business.      51......................  Magicforest.
16....................................  Marisol, International.                     52......................  Terra Experience.
17....................................  National Association of Foreign Trade       53......................  Borderfree.
                                         Zones (NAFTZ).
18....................................  FedEx.                                      55......................  American Eagle Outfitters.

[[Page 85764]]

 
19....................................  Pacific Coasts Council of Custom Brokers &  56......................  European Union (EU).
                                         Freight Forwarders Association
                                         (PCCCBFFA).
20....................................  Express Association of America.             58......................  Association of American Publishers, Inc.;
                                                                                                               Book Manufacturers Institute, Inc.; &
                                                                                                               Printing Industries of America.
21....................................  Lego.                                       59......................  Unique Industries, Inc.
22....................................  Motorcycle Industry Council.                60......................  B.J. Alan Company.
23....................................  Footwear Distributors & Retailers of        61......................  Bestway International.
                                         America.
24....................................  YKK.                                        63......................  Handmade Toy Alliance.
25....................................  Glazing Industry Code Committee.            64......................  RILA & National Retail Federation (NRF).
26....................................  American Fireworks Standards Laboratory.    66......................  Van Fleet Associates, Inc.
27....................................  Terra Experience.                           67......................  Integration Point.
28....................................  US Association of Importers of Textiles     71......................  American Home Furnishings, Alliance.
                                         and Apparel.
29....................................  Hallmark Cards.                             72......................  NCBFAA.
30....................................  American Architectural Manufacturers        74......................  U.S. Council for International Business.
                                         Association.
31....................................  Galaxy Fireworks.                           75......................  Toy Industry Association.
32....................................  Association of Home Appliance               76......................  Hennes & Mauritz L.P.
                                         Manufacturers.
33....................................  The Art and Creative Materials Institute    77......................  33 Trade Associations.
                                         (ACMI).
34....................................  Ian Brodie.                                 78......................  OPEI.
35....................................  National Retail Federation.                 79......................  RILA & NRF.
36....................................  Fashion Jewelry and Accessories Trade       80......................  Bicycle Product Suppliers Association.
                                         Association.
37....................................  Fireworks Over America.                     81......................  AAFA.
38....................................  Outdoor Power Equipment Institute (OPEI).   82......................  UPS Supply Chain Solutions.
39....................................  Retail Industry Leaders Association
                                         (RILA).
--------------------------------------------------------------------------------------------------------------------------------------------------------

A. Section 1110.3--Definitions

    Comment 1: A commenter (C35) stated that proposed 16 CFR 1110.3(b) 
causes confusion with too many certificate types.
    Response 1: The terms and definitions described in proposed Sec.  
1110.3(b) are for the reader's clarity; neither the NPR nor SNPR create 
new certificate types. Indeed, most of the terms in proposed Sec.  
1110.3 are already used in section 14 of the CPSA or in another CPSC 
rule, such as 16 CFR parts 1107 and 1109.
    Comment 2: A commenter (C18) was concerned about CPSC's proposed 
definition of ``importer'' in the NPR to be the ``importer of record'' 
or IOR (as defined in the Tariff Act of 1930, as amended), because the 
proposed definition could conflict with other CPSC rules. For example, 
the commenter stated that the ``importer'' required to certify products 
in 16 CFR part 1109 (the component part rule), may not be the IOR, who 
is the required certifier in the 2013 NPR. The commenter suggested that 
CPSC not make the IOR responsible for certification, because the IOR is 
the party making the official import declaration to CBP, not the party 
causing the goods to enter the country, who is the party with the most 
knowledge of the product. The commenter recommended that CPSC change 
the definition of ``importer'' to include a party with an ownership or 
beneficial interest in the imported products, so that the party with 
the most information about the product would be responsible for testing 
and certification.
    Similarly, other commenters questioned who should be an 
``importer'' with certification responsibilities under part 1110. For 
example, several commenters (C12, C16, C19, C20, C32, C44, C67, C71, 
C82) stated that customs brokers should not fall within the definition 
of ``importer'' because they do not have sufficient knowledge of the 
products to ensure compliance nor are they the ``beneficial party in 
interest.'' Commenter C18 stated the same argument with regard to 
consignees acting as importers of record, and other commenters (C7, 
C14, C36) asserted that private labelers should not be responsible for 
certifying for the same reasons.
    Response 2: The CPSA does not define ``importer.'' \13\ We agree 
that expanding the definition of who can be an ``importer'' in part 
1110 beyond the IOR, for the purposes of testing and certification, is 
beneficial to stakeholders and to CPSC's eFiling and enforcement 
efforts. Accordingly, the SNPR proposes to broaden the definition of 
``importer'' in proposed Sec.  1110.3(b) to include any party that 
could be an importer under CBP's definition of importer, as found under 
19 CFR 101.1, as well as other parties that have a financial interest 
in the consumer product being offered for import and effectively caused 
the consumer product to be imported into the United States. Thus, the 
SNPR proposes that an ``importer'' may be the importer of record; 
consignee; or owner, purchaser, or party that has financial interest in 
the consumer product being offered for import and effectively caused 
the consumer product to be imported into the United States.
---------------------------------------------------------------------------

    \13\ The CPSA states that the terms `` `import' and 
`importation' include reimporting a consumer product manufactured or 
processed, in whole or in part, in the United States.'' 15 U.S.C. 
2052(a)(9). The CPSA also states that the term `` `manufacturer' 
means any person who manufactures or imports a consumer product.'' 
15 U.S.C. 2052(a)(11).
---------------------------------------------------------------------------

    Under the proposed definition of ``importer,'' a person holding a 
valid customs broker's license can be an importer. Retaining customs 
brokers in the definition gives them the option to assume 
responsibility for certification on behalf of their clients if that is 
a service they wish to provide. Additionally, because of the expanded 
definition of ``importer'' and CPSC's need to recognize the party 
assuming responsibility, the SNPR requires the party certifying 
compliance be identified in Sec.  1110.11(a)(5).
    Comment 3: Two commenters (C36, C50) stated that under section 3(b) 
of the CPSA, CPSC does not have the authority to include common 
carriers in the definition of ``importer.''
    Response 3: Section 3(b) of the CPSA prohibits CPSC from deeming 
common carriers, contract carriers, third party logistics providers, 
and freight forwarders to be a manufacturer (including importer), 
distributor, or retailer ``solely by reason of receiving or 
transporting a consumer product in the ordinary course of its business 
as such a carrier or forwarder.'' 15 U.S.C. 2052(b). Neither the 2013 
NPR or this SNPR would deem such carriers as manufacturers or importers 
for receiving or transporting goods. However, if a common carrier, 
contract carrier, third party logistics provider, or freight forwarder 
contracts with another party to provide services as a licensed customs 
broker, and in that capacity chooses to act as the IOR and attests to

[[Page 85765]]

the content of the certificate at the time it is eFiled, CPSC is 
justified in holding that carrier responsible for the information on a 
certificate. In that case, the carrier is not acting in the ordinary 
course of its business as a carrier or forwarder, but is instead acting 
as the IOR or a customs broker. The revised definition of ``importer'' 
in the SNPR should alleviate some concern, because an IOR is not the 
only party that can certify a product. However, a common carrier can 
remove themselves from any responsibility to certify consumer products 
by choosing not to act as a customs broker, choosing not to act as the 
IOR, or ensuring that the importer, as defined in proposed Sec.  
1110.3(b), certifies the product.
    Comment 4: Several commenters (C17, C35, C38) remarked that the 
definition of private labeler is unclear. Commenter C17 stated that the 
terms ``brand,'' ``trademark,'' and ``to carry'' a brand or trademark 
are vague terms that may not be applied consistently. Commenter C38 
requested clarification whether a private labeler must certify when the 
product does not contain the name or trademark of the manufacturer.
    Response 4: Section 3(a)(12)(A) of the CPSA defines ``private 
labeler'' as the ``owner of a brand or trademark on the label of a 
consumer product which bears a private label.'' 15 U.S.C. 
2052(a)(12)(A). Section 3(a)(12)(B) further explains that a consumer 
product bears a private label when the product (or its container) is 
labeled with the brand of a person other than a manufacturer, the 
person with whose brand the product (or container) is labeled has 
caused the product to be so labeled, and the brand of a manufacturer 
does not appear on the label. 15 U.S.C. 2052(a)(12)(B). Consistent with 
the statute, the term ``private labeler'' is generally understood to 
refer to products manufactured by one company but sold under the brand 
name of another company. The private labeler is one of the three 
parties stated in section 14 of the CPSA that may certify a product. 
Section 1110.7(b) of the SNPR proposes that for domestically 
manufactured products, the private labeler must issue a certificate 
that meets the requirements of part 1110, unless the manufacturer 
issues the certificate.

B. Section 1110.5--Products Required To Be Certified

    Comment 5: Several commenters (C31, C36, C48, C49, C52, C63) urged 
CPSC to specifically accommodate small businesses, which have fewer 
compliance resources. Several commenters (C31, C49) stating 
specifically that the extra security, IT infrastructure, and customs 
broker fees associated with eFiling, will be ``out of range,'' 
``catastrophic,'' or a ``significant burden'' on small manufacturers 
and businesses in general. Two commenters (C52, C63) suggested that 
eFiling should be optional for small importers, instead of a mandatory 
requirement, to assist small businesses with small volumes or those 
that are from countries that do not have any competitive options for 
third party testing. Other commenters (C49, C52, C63) stated that small 
businesses usually issue paper certificates and are not prepared to 
file electronically. One commenter (C52) proposed that the CPSC should 
differentiate between importers/producers of ``low risk'' and ``high 
risk'' toys and children's products to avoid excessive burdens on small 
producers and importers.
    Additionally, commenter C8 recommended that CPSC create a new set 
of requirements for ``micro-businesses'' that would be exempted from 
third party testing for component parts and finished products. Instead 
of a certificate, the commenter proposed that these ``micro-
businesses'' could provide a supplier's Material Safety Data Sheet 
(MSDS).
    Response 5: The CPSA's certificate requirements do not contain a 
small business exception. Indeed, an exception for imported products 
could undermine the goal of protecting consumer safety by using 
certificate data to target non-compliant and potentially hazardous 
consumer products. However, section 14(i)(4) of the CPSA does provide 
third party testing relief for certain rules for Small Batch 
Manufacturers of children's products, which allows for testing of 
certain product safety standards at any third party laboratory, instead 
of a CPSC-accredited laboratory.\14\ Moreover, CPSC has a Small 
Business Ombudsman to assist small businesses with questions related to 
compliance with CPSC rules.
---------------------------------------------------------------------------

    \14\ See https://www.cpsc.gov/Business--Manufacturing/Small-Business-Resources/Small-Batch-Manufacturers-and-Third-Party-.
---------------------------------------------------------------------------

    CPSC developed a web-based application, the Product Registry, to 
reduce burden for importers, especially for small businesses. CPSC's 
Product Registry is a web-accessible database that will not require any 
additional IT infrastructure for certifiers to use and has its own 
internal security. Firms do not need to create their own web 
infrastructure to host certificate data. Small businesses can enter the 
information into the Product Registry and use the system to maintain 
certificates. Firms can also enter data using batch uploads, which are 
available in several formats. Additionally, firms can choose to have a 
third party, such as a test lab, enter data into the Product Registry 
on their behalf. The Product Registry is designed to be flexible to 
allow businesses to use the system in a manner that reduces cost and 
burden.
    Comment 6: Commenters C44 and C82 suggested that the CPSC consider 
implementing a certificate exception for de minimis shipments. The 
commenter maintains that a de minimis exception would leave CPSC and 
CBP with a greater ability to use its resources to monitor and target 
product safety compliance of higher-value shipments that contain larger 
quantities of consumer goods.
    Response 6: Congress did not provide a de minimis exception from 
certificate requirements. Furthermore, one of the emerging hazards 
since the 2013 NPR is the growth in direct-to-consumer shipments, which 
are often de minimis. These shipments may be of lower value, but the 
volume of such shipments is growing rapidly, and they are particularly 
challenging to monitor. Staff has found hazardous, non-compliant 
products in de minimis shipments. The ability to collect certificate 
data at entry for these lower-value shipments, and to assess these 
shipments for targeting purposes, will enhance CPSC's ability to 
enforce our rules, bans, standards, and regulations, and to protect 
consumer safety.
    Regarding compliance burden, CBP has standardized the means of 
collecting additional data elements for PGAs using entry type 86 (ET86) 
for lower-value shipments. A broker may now use ET86 for de minimis 
shipments to append the CPSC PGA Message Set.
    Comment 7: Commenter C53 argues that, as an IOR for returned goods, 
they are unable to test and certify such goods. The commenter urges 
CPSC to ``consider products exported by U.S. retailers and then 
returned (reimported) to that retailer as `Goods Returned' and exempt 
from the certificate requirement,'' regardless of entry type.
    Response 7: Section 14 of the CPSA does not provide an exemption 
from the certificate requirements for returned goods. As with the 
existing 1110 rule and consistent with the statute, under the proposed 
rule certificates are required for finished products that are imported 
for consumption or warehousing and subject to a consumer product safety 
rule.

[[Page 85766]]

C. Section 1110.7--Who Must Certify Finished Products

    Comment 8: Several commenters (C14, C36, C39) opposed the proposed 
changes to Sec.  1110.7 in the 2013 NPR, which expanded who could be a 
certifier for both imported and domestic products and required private 
labelers to certify products that are privately labeled, unless another 
party certifies the product. Commenters encouraged CPSC to retain the 
existing language in current 16 CFR 1110.7, which they believe clearly 
identifies the party responsible for issuing the certificate. Commenter 
C36 stated that CPSC should recognize that either the importer, 
domestic manufacturer, or private labeler may certify, as provided in 
section 14 of the CPSA.
    Response 8: Upon consideration of the comments, the SNPR simplifies 
the 2013 NPR proposal in Sec.  1110.7 for imported consumer products. 
CPSC has more information on imported consumer products than the agency 
had in 2013, because CPSC now receives a data feed from CBP that, while 
focused on trade enforcement and tariff collection rather than safety, 
identifies the relevant firms for each shipment. Moreover, with the 
additional certificate data collected via a PGA Message Set, CPSC can 
enforce the certificate requirement against an importer or a private 
labeler, even if neither firm is the entity submitting the required 
certificate data.
    The SNPR proposes a revision to the definition of ``importer,'' 
allowing any party that can be the importer of record under proposed 
Sec.  1110.3 to certify. Currently, CPSC expects the IOR to issue a 
certificate; however, in some cases the IOR is not the party with a 
beneficial ownership in the goods that causes importation of the 
consumer product, which makes enforcement challenging. The proposed 
expansion of the ``importer'' definition both responds to comments and 
should assist CPSC in identifying responsible parties.
    For domestically manufactured products, the SNPR retains the 2013 
NPR's proposal that privately labeled products be certified by the 
private labeler, unless the manufacturer issued the certificate. CPSC 
proposed this requirement because products that are privately labeled 
do not display the manufacturer's name or contact information. Such 
products are typically designed and produced according to the 
specifications and requirements of the brand owner. Firms that do not 
want to be responsible for issuing a certificate as a private labeler 
for domestically manufactured products need only ensure that the name 
of the manufacturer appears on the product. 15 U.S.C. 2052(a)(12).
    Comment 9: Commenters (C36, C45, C47, C50, C71) suggested that any 
party in the supply chain should be allowed to certify, including brand 
owners/private labelers and foreign manufacturers. Other commenters 
(C15, C74) stated that foreign manufacturers of direct-to-consumer 
products should be required to certify, but certification by brand 
owners/private labelers should be optional. One commenter (C35) was 
unclear if the brand owner/private labeler or foreign manufacturer 
should certify under proposed Sec.  1110.7(a) for imported direct-to-
consumer products. Another commenter (C14) stated that responsibility 
for certifying should be placed on importers because foreign 
manufacturers might not comply.
    Response 9: As stated in response to comment 2, the SNPR broadens 
the definition of ``importer'' in part 1110 to include any firm that 
could be an importer under CBP's definition in 19 CFR 101.1. Therefore, 
any entity that falls within this definition would be allowed to 
provide certificate data for imported consumer products. For direct-to-
consumer imports not involving a broker, the party with financial 
interest in the product being offered for import and who effectively 
caused the consumer product to be imported into the United States, 
which could be the foreign manufacturer or the seller who sold the 
product on an online marketplace, would be considered the importer and 
the party responsible for certifying. Regarding foreign manufacturers 
that supply products for U.S. distribution, they are subject to the 
requirements of the CPSA and CPSC has the authority to refuse admission 
for noncompliant products under section 17(a) of the CPSA. 15 U.S.C. 
2066(a).
    Comment 10: A commenter (C16) claimed that requiring brokers to be 
responsible for certification duplicates work being done by the 
importer, because the importer is already responsible for producing the 
certificates. The commenter argued that the proposal in the NPR would 
increase brokerage costs to importers, damage the importers' ability to 
be profitable, dilute the information chain, and increase the risk of 
mistaken reporting. Another commenter (C20) stated that holding brokers 
responsible for certification will result in increased requests by 
brokers for powers of attorney, which in turn will require greater CBP 
staffing, and ultimately, increased costs to the consumer. Another 
commenter (C44) asserted that CPSC's cost estimates for filing 
certificates are too low because they do not account for a necessary 
increase in broker's fees to offset the extra labor associated with 
becoming familiar with the products being imported and applicable 
requirements. The commenter also stated that requiring certificate 
information to be filed at the time of entry will slow the filing and 
delay delivery and increase warehouse costs. The commenter suggested 
reducing the burden of the proposed rule by paring down the required 
information to only that necessary for effective targeting and allowing 
the upload of the required information by PDF to cut down on the amount 
of data entry.
    Response 10: As previously noted, the proposed definition of 
``importer'' in this SNPR has been expanded to include firms that could 
be an importer under CBP's definition. Consequently, customs brokers 
are not the only entity that can certify. They can, however, assume 
that responsibility as a service provided to clients if they choose. 
Moreover, the Product Registry will allow importers to store 
certificate data for repeated imports of the same product, which will 
lessen the burden of preparing certificates.
    Because entry filing most often occurs in advance of a shipment's 
arrival, adding a PGA Message Set with entry or entry summary will not 
impede the movement of a shipment, so warehousing costs and delivery 
times should not be impacted. Finally, CBP will not accept large 
amounts of data in PDF format, because it is difficult to store and 
search or manipulate. Since 2013, CBP and CPSC have built and 
demonstrated the necessary infrastructure to receive entry data and 
associated PGA Message Set data, which has been successfully tested and 
will be further developed through the Beta Pilot, making PDF submission 
outmoded.
    Comment 11: A commenter (C39) stated that if the Commission changes 
who is responsible for issuing certificates from a domestic 
manufacturer to a private labeler, private labelers such as retailers 
who are removed from the manufacturing process would be required to 
establish compliance programs to exercise due diligence over domestic 
manufacturers. The commenter stated that such programs will impose new 
burdens on the supply chain, increase end-use consumer prices, and have 
a potential negative impact on interstate commerce, costs for which are 
not accounted for in the proposed rule. The commenter also asserted 
that the Commission should not change the requirement of who must issue 
a certificate from the manufacturer

[[Page 85767]]

to the private labeler for domestically produced products, because CPSC 
has not identified a rational basis for the change. Another commenter 
(C14) asserted that often the importer or private labeler does not know 
the actual manufacturer. Commenter (C49) stated that burden will 
increase for small manufacturers, because the same material will be 
tested by multiple private labelers. Similarly, commenter (C4) stated 
that burden will increase for their firm, because the commenter does 
not know whether their end customer will use their manufactured 
products for children's products.
    Response 11: Private labelers who do not want to test and certify 
can contract with their manufacturers to ensure that the products they 
are responsible for introducing into commerce are compliant with all 
applicable consumer product safety rules and meet testing and 
certification requirements. For enforcement purposes, the NPR proposed 
to require either the domestic manufacturer or the private labeler to 
issue the certificate, because no other party would have the necessary 
knowledge of the product to be able to certify. This SNPR retains the 
language in proposed Sec.  1110.7(b) of the 2013 NPR.
    Comment 12: Commenters (C44, C82) noted that the United States 
Postal Service (USPS) does not act as the IOR for mail shipments and 
cannot be held responsible for issuing certificate information. Due to 
that, the commenters asked how the proposed rule will govern mail 
operations and what party would issue the certificate.
    Response 12: While the SNPR's proposed definition of importer in 
Sec.  1110.3(b) does not include the USPS, the definition does include 
several parties who could be considered the importer. Section 
1110.13(a)(1) of the SNPR would require certificates for international 
mail shipments to be entered in the Product Registry before the product 
arrives in the United States. Under the proposed definition of 
``importer,'' either the U.S.-based firm receiving the shipment or the 
foreign firm that sent the shipment could be considered the importer. 
Staff recommends that only one of those firms enter certificate data 
into the Product Registry and attest to the accuracy of the 
information, preferably the U.S.-based firm so that the certifier can 
be more easily contacted.
    Comment 13: Several commenters (C33, C38, C45, C52, C74) urged that 
recertification not be required for each batch of a product if there 
has not been a material change to the product. The commenters also 
suggested that if the certificate scope is allowed to cover several 
years of production, then the burden on the manufacturer will be 
greatly reduced.
    Response 13: For regulated children's products, certifiers are 
required to follow testing and certification requirements as described 
in 16 CFR parts 1107 and 1110. Part 1107 requires three types of 
testing for children's products: initial certification testing; 
periodic testing; and material change testing. Children's product 
certificates must be updated after periodic and material change 
testing, because when new testing is conducted, the information on the 
certificate, namely the testing date, will have changed. This SNPR does 
not change any of these requirements.
    Non-children's products are required to meet part 1110, meaning 
that each product must be compliant based on a test of each product or 
a reasonable testing program, and must remain compliant. CPSC 
recommends, but does not require, that non-children's products also be 
periodically tested (most companies do so yearly) and re-tested when 
there is a material change in the products' design or manufacture that 
could affect compliance. Again, the SNPR does not propose to change 
these requirements.

D. Section 1110.9--Certificate Language and Format

    Comment 14: Many commenters (C7, C10, C11, C13, C17, C31, C35, C36, 
C39, C41, C42, C43, C45, C46, C47, C50, C56, C60) opposed proposed 
revisions to Sec.  1110.09(c) in the 2013 NPR, which provided that an 
electronic certificate must be accessible ``without password 
protection, to the Commission, CBP, distributors, and retailers.'' 
Several commenters stated that preventing password protection for 
delivery of certificates to distributors and retailers would constitute 
a disclosure of proprietary information, which would be in violation of 
section 6(a) of the CPSA, 15 U.S.C. 2055(a). Other commenters similarly 
expressed concern that the lack of password protection would allow 
fraudulent companies to falsify certificates and competitors to access 
commercial secrets.
    Response 14: In light of the comments received, the SNPR does not 
propose to prohibit password protection but rather leaves this issue 
for resolution between certifiers and their retailers and distributers. 
To date, in the absence of a prohibition on password protection, no 
retailer or distributor has complained to the Commission that they do 
not have access to certificate data.

E. Section 1110.11--Certificate Content

    Comment 15: Several commenters (C39, C64, C78) stated that the 
proposed certificate data elements to be collected at import are 
``unclear,'' ``unobtainable,'' and ``unnecessary'' and question the 
utility of the data elements in enhancing CPSC's risk assessment. These 
commenters further stated that CPSC should work with stakeholders to 
identify necessary data elements to limit industry's burden. Commenters 
(C64, C78) expressed that CPSC should not collect duplicative 
information already provided on CBP entry forms.
    Response 15: Section 14(g) of the CPSA sets forth the minimum 
requirements for certificates and provides CPSC with the authority to 
add more requirements through rulemaking. As described in section 
II.D.2 of this preamble, CPSC previously conducted a Certificate Study 
in 2017 and found that several data elements indicate a higher risk of 
a noncompliant, hazardous product. Staff advises that the data elements 
proposed in the SNPR are necessary to match the certificate to the 
product being examined and to enhance CPSC's risk assessment, and are 
not duplicative of information already provided on CBP entry forms. If 
CPSC required eFiling of only a subset of the data elements for a 
certificate, importers would have the burden to maintain two sets of 
certificate data.
    Comment 16: One commenter (C78) expressed that the proposed 
required description of the product is duplicative of the information 
provided by the HTS code and the quantity of units.
    Response 16: HTS codes are typically very broad and will contain 
multiple products under one code. For example, 9403.20.0017 contains 
``Toddler beds, bassinets, cradles, play yards and other enclosures for 
confining children'' made of metal. The code alone does not necessarily 
indicate which product a certificate would reference. Instead, the SNPR 
proposes that the certifier provide at least one specified unique 
identifier, as well as a sufficient description, to match the finished 
products to the certificate.
    Comment 17: Commenter C9 suggested that CPSC allow the use of other 
product identifiers, such as a GS1 Global Trade Item Number (GTIN), to 
be used as an identifier of products covered by a certificate. The 
commenter stated that the use of this bar code system with the 
electronic certificate will allow industry to use the same information 
currently on their products and minimize the cost of compliance.
    Response 17: A GTIN provides useful information for product 
identification.

[[Page 85768]]

Accordingly, the SNPR proposes to allow it as one of up to five product 
identifiers on a certificate: GTIN, model number, serial number, Stock 
Keeping Unit (SKU), or Universal Product Code (UPC). CPSC is developing 
capabilities to retrieve the required certificate data from the Global 
Data Synchronization Network (GDSN).
    Comment 18: Several commenters (C24, C45, C46, C47, C50) expressed 
confusion regarding the date of initial certification and requested 
clarification as to how it differs from other dates, including the date 
of manufacture. A few commenters believe this data element is 
unnecessary.
    Response 18: After considering the comments and enforcement 
efforts, the SNPR does not propose to include a separate date of 
initial certification. Analysis of certificates demonstrates that the 
date of manufacture and the date of testing, required by section 14(g) 
of the CPSA, and the date of entry, are sufficient to meet the 
statutory requirements as well as for CPSC's risk assessment.
    Comment 19: Several commenters (C38, C45, C47, C51, C78, C80) 
opposed the 2013 NPR's proposal to require an indication of the scope 
of products covered by the certificate, claiming it to be difficult to 
determine.
    Response 19: After considering the comments and gaining additional 
experience through the development of eFiling, CPSC does not include in 
the SNPR a new data element for the scope of products covered by the 
certificate. Instead, CPSC will rely on the product description and 
other identifiers on the certificate, along with CBP's entry data, to 
match a finished product to the certificate.
    Comment 20: Several commenters (C38, C46, C49, C78) questioned the 
value of including a list of all applicable consumer product safety 
rules for CPSC's targeting efforts and does not believe that inclusion 
of this information is warranted. Another commenter (C47) stated that 
listing the consumer product safety rules is redundant, because the 
test reports already include this list.
    Response 20: Section 14(a)(1)(B) of the CPSA requires that each 
rule, ban, standard, or regulation applicable to the product be 
specified on the certificate. Staff advises that the list of all 
applicable rules is a critical data element for CPSC's risk assessment 
and targeting efforts. Although the list also is on test reports, test 
report data elements are not filed in a PGA Message Set, so that 
information is not in an electronic format for CPSC's use within the 
RAM. CPSC maintains a list of rules that require testing and 
certification on the agency's website, and the list will also be 
maintained in the Product Registry. Standardizing this information in 
the Product Registry and for the Full PGA Message Set will allow CPSC 
to target shipments using the rules listed on a certificate. For 
example, CPSC can compare the list of rules with the product 
information and identification of the testing laboratory to validate 
that the product was tested to the expected rules and that the named 
laboratory is accredited to conduct such tests. Accordingly, the SNPR 
retains the requirement to provide the list of rules for which a 
product is subject.
    Comment 21: One commenter (C78) stated that requesting the 
certifying party's name, mailing address, email, address, and telephone 
number is redundant, because the IOR is already provided in the Customs 
entry documents.
    Response 21: Section 14(g)(1) requires that ``every certificate 
required under this section shall identify the manufacturer or private 
labeler issuing the certificate.'' The certifying party's name, mailing 
address, email address, and telephone number are necessary for CPSC to 
appropriately identify and contact the responsible party. Furthermore, 
the IOR provided on the CBP entry documents may not always be the 
correct certifying party under the SNPR proposal. In some cases, the 
IOR is the customs broker or express carrier facilitating importation 
and transmission of the data, which may not be the importer for 
purposes of certification.
    Comment 22: Two commenters (C21, C45) stated that it is preferable 
to provide generic contact information for the record custodian, rather 
than a specific person's contact information, because it would be 
unreasonable for a single person to provide coverage for every 
potential problem on a certificate. Another commenter (C82) stated that 
CPSC should not collect data that is unlikely to determine compliance, 
like the record custodian contact information.
    Response 22: Section 14(g)(1) requires that the certificate contain 
the ``contact information for the individual responsible for 
maintaining records of test results.'' Accordingly, the SNPR proposes 
to retain this data element. However, we agree with the commenters that 
generic contact information is acceptable, as long as the generic email 
address and telephone number is actively monitored by a knowledgeable 
person and the certifying firm is responsive within 24 hours of CPSC's 
initial contact.
    Comment 23: Multiple commenters (C36, C37, C42, C47, C51, C76, C78) 
opposed including the name and address of the manufacturer, finding 
this data element unnecessary and duplicative, because country of 
origin and foreign factory information are already provided on the 
entry documents. Other commenters (C10, C13, C26, C43, C49) asked CPSC 
to remove the requirement for a street address if the street address is 
unavailable. Additionally, three commenters (C43, C46, C78) found this 
data element too burdensome for importers to manually enter, as well as 
too granular for CPSC's use.
    Response 23: Section 14(g) of the CPSA requires every certificate 
to contain the date and place of manufacture, and to provide the full 
mailing address for each party, which includes a manufacturer. 
Additionally, section 16(c) of the CPSA, 15 U.S.C. 2065(c), requires 
disclosure of the identity of the manufacturer of a product by name, 
address, or such other identifying information as the CPSC officer or 
employee may request, to the extent that such information is known or 
can be readily determined. Accordingly, we interpret the place of 
manufacture to include the full address (including manufacturer name; 
street; city; state or province; and country or administrative region). 
Being able to accurately identify the manufacturer of the finished 
product with a street address is necessary for effective risk 
assessment and targeting. Indeed, in 2017 staff found in its 
Certificate Study that the manufacturer city is a data element that can 
be associated with a higher risk of a hazardous product.
    If the street address is unavailable, then the certifier should 
provide a detailed location, consistent with the manufacturer country's 
mailing address standard. The address must be sufficient to describe 
the specific location where CPSC can send correspondence or inspect the 
facility. Certifiers can use different methods to provide this 
information. For example, if using the Product Registry, the 
manufacturer's name and address will be saved with a user-generated ID 
under the certifier's business account, so that it can be easily 
referenced when creating future certificates.
    Comment 24: One commenter (C56) asked for clarification whether all 
suppliers must be listed on the certificate.
    Response 24: Consistent with section 3(a)(10) of the CPSA, 15 
U.S.C. 2052(a)(10), the manufacturer that must be listed on the 
certificate is the entity responsible for manufacturing,

[[Page 85769]]

producing, or assembling the finished product (or component part if 
issuing a component part certificate). This is clarified in proposed 
Sec.  1110.11 of the SNPR.
    Comment 25: A few commenters (C38, C45, C49, C51, C59) stated that 
providing the date of manufacture is redundant and burdensome, and 
should not be included.
    Response 25: Section 14(g) requires every certificate to contain 
the date of manufacture. The 2017 Certificate Study demonstrated that 
date of manufacture, when compared to the date of testing, assists CPSC 
in determining compliance. CPSC is testing this data element in the 
eFiling Beta Pilot and retains this statutory date element in the SNPR.
    Comment 26: Many commenters opposed requiring the name of the 
manufacturer and the place of manufacturing, including the address, 
because this information is considered confidential business 
information or a trade secret. Commenters were concerned that providing 
this information on the certificate may result in dealers, retailers, 
and competitors bypassing them and dealing directly with the 
manufacturer, resulting in economic injury and competitive harm. One 
commenter (C33) stated that trade secrets are protected by federal and 
state law.
    Response 26: Section 14(g) provides the minimum data elements for 
certificates, which include the place and date of manufacture and 
``each party's name, full mailing address, [and] telephone number.'' 
Because this is a statutory requirement, certificates provided to CPSC 
must contain this information. Moreover, section 16(c) of the CPSA, 15 
U.S.C. 2065(c), requires that upon request by a Commission officer or 
employee, every importer, retailer, or distributor of a consumer 
product or substance must identify the manufacturer and provide the 
name, address, or other identifying information. Thus, certifiers must 
supply manufacturer names and contact information to the Commission 
pursuant to sections 14 and 16 of the CPSA. CBP and CPSC will maintain 
business confidential data systems for eFiled certificates, which will 
be submitted directly to government systems with appropriate safeguards 
to secure the information.
    Comment 27: One commenter (C52) opposed the requirement for 
providing the manufacturer address for small businesses, because the 
address is often a home address and the commenter is concerned for the 
safety of the family.
    Response 27: Section 14(g) of the CPSA requires the place of 
manufacture to be provided on the certificate. Furthermore, for 
imported products, certificate data will be entered into a government 
system, which follow industry-standard data security protocols, for use 
by the Commission and CBP. Section 14(g) does not require certificate 
disclosure to the public and for any information requests, CPSC will 
follow the procedures set forth in 16 CFR 1015.
    Comment 28: One commenter (C38) requested that CPSC retain the 
certifier's ability to code information on a certificate as allowed on 
a permanent certification label for power mowers described in 16 CFR 
1205.35(c). Additionally, the commenter recommended that the allowance 
for the addition of a website address to the certificate, which can be 
used by consumers or CPSC to request additional, nonproprietary 
information.
    Response 28: Section 1205.35 of the power mower rule, issued in 
1979, requires a reasonable testing program and a five-data point 
certificate label that is on the product and visible to the consumer. 
The information on this label is allowed to be coded. 16 CFR 
1205.35(c). In 2008, however, Congress revised certificate requirements 
in section 14 of the CPSA for all regulated products; manufacturers of 
power mowers now must meet the requirements in part 1205, and also 
sections 14(a) and 14(g) as implemented through part 1110. The on-
product certificate label requirement thus remains, but the SNPR would 
require an additional two-year record keeping requirement, several 
additional data elements for both domestic and foreign-manufactured 
product certificates, and an eFiled certificate for imported power 
mowers. Codes created by individual companies will not be allowed on 
eFiled certificates. The SNPR includes in proposed Sec.  1110.11(b) the 
ability to add to the certificates a website address and other 
information (such as testing).
    Comment 29: One commenter (C34) objected to providing contact 
information for CPSC-accepted laboratories on CPCs, because CPSC 
already has that information.
    Response 29: The Product Registry will contain a list of CPSC-
accepted third party laboratories for each regulation. If using a Full 
PGA Message Set, certifiers can reference the third party laboratory 
using a four-digit code that CPSC will maintain, along with contact 
information for CPSC-accepted third party laboratories. Certifiers need 
only provide contact information for other testing laboratories and for 
domestically manufactured products.
    Comment 30: Several commenters (C21, C32, C36, C40, C47, C50, C78) 
objected to the requirement for an attestation as proposed in Sec.  
1110.11 (a)(10) of the 2013 NPR and recommended removing this section 
from the rule. For example, commenter C21 opined that the attestation 
will make the certificate `busy' and adds little value, because 
certifiers will add the language even if they do not follow the rules. 
This commenter further stated that certifiers in compliance with 16 CFR 
part 1110 understand their obligations and the gravity of providing the 
certificate and suggested that the Commission clearly state the 
certifier's obligations in the regulation, which would provide ``a 
tacit attestation.''
    Two commenters (C32, C50) stated that the attestation requirement 
is not authorized by section 14(g) of the CPSA and has no legal 
significance, because the obligation to submit truthful information to 
the government is already applicable under current law. Commenter (C40) 
noted that the ``capacity for human error on a certificate is not 
trivial'' and suggested that CPSC clarify that the individual is not 
liable for attesting to the accuracy of the certificate. This commenter 
suggested withdrawing this requirement and adding a statement that 
firms which demonstrate the existence of a compliance plan 
``administered in accordance with 16 CFR parts 1107 and 1109 will not 
be found to have reason to know that a certificate is false or 
misleading.''
    Response 30: Section 14(g) sets forth the minimum data elements for 
the certificate; CPSC has authority to add data elements through 
rulemaking. An attestation helps to ensure the responsibility of the 
certifying party to know what they are certifying on behalf of the 
firm, and the firm's liability for a false certification. In addition, 
to specifically acknowledge the ``capacity of human error,'' the SNPR's 
attestation language states that ``the information in this certificate 
is true and accurate to the best of my knowledge, information, and 
belief.''
    Regarding burden, any certifier using the Product Registry will 
have only one click to accept the attestation and will have the option 
for bulk attestation. Any certifier using the Full Message Set will 
only have one additional field for the attestation. CPSC is testing 
this attestation in the eFiling Beta Pilot.

[[Page 85770]]

F. Section 1110.13--Certificate Availability

    Comment 31: Commenters (C12, C20, C23, C26, C28, C36, C42, C46, 
C47, C49, C55, C64, C71, C74, C81) suggested that CPSC should retain 
the current ``on-demand'' certification system. Commenter (C2) states 
that retaining the ability to satisfy the certificate requirement by 
presenting certificates upon request or in a password protected website 
is preferable to the proposed changes. Other commenters (C3, C81) 
stated that CPSC's proposal to require electronic filing of 
certificates of compliance for regulated imported consumer products 
with CBP at the time of filing the entry or entry summary contravenes 
the CPSIA, which calls for GCCs to be submitted ``upon request,'' 
suggesting that GCCs need not be submitted with each shipment.
    Response 31: Section 14(g)(3) of the CPSA establishes several 
requirements regarding the availability of certificates, which must: 
``accompany the applicable product or shipment of products covered by 
the same certificate''; be furnished to each distributor or retailer of 
the product; and be furnished to the Commission upon request. 
Additionally, section 14(g)(4) specifically provides that the 
Commission can, by rule, require eFiling of certificates for imported 
consumer products.
    Certificates that are collected on an ad hoc basis, either as a 
hard-copy or a PDF copy via email, are not in a data-usable format that 
can be processed into CPSC's RAM and risk scored. To implement section 
14(g)(4) of the CPSA, proposed Sec.  1110.13 of the SNPR requires the 
eFiling of all certificates for regulated imported finished products, 
including CPCs and GCCs, at the time of filing entry or entry summary, 
if both entry and entry summary are filed together. CPSC intends to use 
certificate data to risk score shipments and enforce its statutes and 
regulations. If this rule is finalized, an eFiled certificate would 
meet the ``accompany'' requirement in section 14(g)(3) of the CPSA and 
the requirement in proposed Sec.  1110.13(a).
    Comment 32: Several commenters (C7, C18, C20, C21, C47, C60, C66, 
C71) suggested that there should be alternate ways to submit 
certificate data, such as a URL, to reduce burden. Another commenter 
(C32) agreed with proposed Sec.  1110.0(c)'s allowance of electronic 
certificates in multiple forms, suggesting that CPSC also allow a Quick 
Response (QR) code as an acceptable means of providing access to an 
electronic certificate. Additionally, several commenters (C2, C21, C71, 
C74) stated that they will have to submit the same certificates more 
than once because of the electronic and hard copy requirements.
    Response 32: The SNPR clarifies in Sec.  1110.9(b) that a hard copy 
or an electronic certificate meets the requirements described in Sec.  
1110.13(b), to furnish a certificate to each distributor or retailer, 
and in Sec.  1110.13(c) to provide a certificate for inspection upon 
request by CPSC or CBP.
    However, the SNPR would require that for imported consumer products 
to meet the ``accompany'' requirement in section 14(g) of the CPSA, 
certificate data elements must be eFiled with CBP using a PGA Message 
Set at the time of entry or entry summary. Certifiers will have several 
means to provide certificate data to CPSC for regulated products, 
including a Product Registry with a Reference PGA Message Set, and a 
Full PGA Message Set. CPSC may still ask for a certificate, however, 
for domestically manufactured products and as otherwise allowed by the 
statute, to verify eFiled certificate data, or for other purposes. 
Certificates for domestically manufactured products can still be 
provided through email or a URL. A QR code would be an acceptable means 
of providing access to an electronic certificate, pursuant to proposed 
Sec.  1110.9(c), but would not meet the requirement for an eFiled 
certificate as proposed in Sec.  1110.13(a). Finally, to address 
burden, CPSC created a Product Registry to allow certifiers to submit 
certificate data once upon importation, and thereafter to use a 
reference PGA Message Set to identify the certificate data already 
entered in the Product Registry each time products covered by that 
certificate are imported.
    Comment 33: A commenter (C45) stated that a requirement for a 
unique identifier to be ``identified prominently on the finished 
product, shipping carton, or invoice'' would potentially crowd an 
occupied area on product labels. Another commenter (C35) stated that an 
overt display of a unique identifier is unnecessary and may be 
duplicative.
    Response 33: The electronic certificate data may not be easily 
accessible to retailers and distributors, and to CBP or CPSC upon 
request, if the unique identifier is not ``identified prominently.'' 
Accordingly, the SNPR proposes to maintain the requirements for 
prominence for certifiers that choose to use electronic forms of a 
certificate. We seek comment, however, on whether the prominence of an 
electronically available certificate on an invoice or shipping 
container is still important and appropriate to address in the final 
rule.
    Comment 34: Commenters (C40, C74) suggested that CPSC interpret 
``accompany'' to mean eFiling of the certificate with CBP, or a 
certificate with electronic access to distributors and retailers. The 
commenters also stated that an additional physical certificate is not 
necessary.
    Response 34: The SNPR clarifies in proposed Sec.  1110.13(a) that 
an eFiled certificate (filed in ACE using a PGA Message Set) meets the 
``accompany'' requirement. Furthermore, proposed Sec.  1110.9(c) 
clarifies that because an electronic certificate meets the 
``furnishing'' and ``availability'' requirements in Sec. Sec.  
1110.13(b) and (c), respectively, a physical copy of the certificate 
meets the same requirements.
    Comment 35: Several Commenters (C10, C13, C26, C31, C37, C43) 
stated that the current system of allowing certifiers to furnish 
certificates to distributors and retailers through ``grant of 
reasonable access'' or ``on demand'' should be maintained, instead of 
requiring they be made available for each shipment. One commenter (C47) 
stated that if certificates are furnished to retailers, CPSC should not 
dictate the method for how it is done. Other commenters (C10, C42) 
stated that the change will be a ``costly shift'' from the current 
regulation and result in the hiring of additional staff.
    Response 35: Section 14(g)(3) of the CPSA requires that ``a copy of 
the certificate shall be furnished to each distributor and retailer of 
the product.'' This differs from the requirement in the same section, 
stating that ``every certificate . . . shall accompany the appliable 
product or shipment of products covered by the same certificate,'' and 
from the eFile authority in section 14(g)(4) of the CPSA. The SNPR 
would require certificates for imported consumer products to be eFiled 
using one of two methods described in section II.D.4 of this preamble. 
Otherwise, the SNPR does not dictate how a certificate must be 
furnished to each distributor and retailer; electronic certificates for 
these purposes are allowed, but not required.
    Comment 36: A commenter (C38) suggested that CPSC clarify that a 
domestically manufactured product is not required to be accompanied by 
a certificate. Another commenter (C52) recommended that small batch 
manufacturers be treated like domestic manufacturers in that their 
certificates need not be submitted to CPSC until the products enter 
commerce.
    Response 36: Consistent with the existing 1110 rule, the SNPR 
requires

[[Page 85771]]

that certificates for domestically manufactured products be issued 
before a product is introduced into commerce, and made available to 
CPSC upon request, either in hard copy or through electronic means. 
Small batch manufacturers can receive testing relief through a program 
described on CPSC's website (see response to Comment 5). Unless 
entitled to relief through that program, small batch manufacturers must 
issue certificates and meet the certificate availability requirements 
that apply to all domestic or imported consumer products.

G. Section 1110.17--Recordkeeping Requirements

    Comment 37: Commenter C35 stated that the NPR provides no rationale 
for the proposed requirement that GCCs and supporting records be 
maintained for five years. The commenter stated that this new 
requirement is confusing and will not improve product safety, because a 
three-year record retention already is mandated in some existing CPSC 
safety standards. Commenter C14, in contrast, noted that companies 
already keep customs entry records for five years or longer, and thus 
has no objection to the proposed increased retention time for GCCs.
    Response 37: Pursuant to 28 U.S.C. 2462, the statute of limitations 
to litigate a civil fine, penalty, or forfeiture for a consumer product 
safety violation is five years. Commenter C14 is correct that customs 
entry records must be maintained for five years (see 19 CFR 163.4). 
Additionally, 16 CFR 1107.26(b) and 16 CFR 1109.5(j) have five-year 
record retention requirements. To be consistent with these record 
retention periods and the statute of limitations, the SNPR retains the 
proposed requirement that GCCs and supporting records be maintained for 
five years. We note that CBP recordkeeping requirements may differ from 
CPSC requirements, depending on the commodity and the circumstances of 
entry filing.

H. Section 1110.19--Component Part Certificates

    Comment 38: Several commenters (C23, C35, C36, C38, C40, C47, C49, 
C50, C56, C71, C80) expressed confusion regarding the difference 
between certificates for component parts, for finished products, and 
for replacement parts of consumer products.
    Response 38: Proposed Sec.  1110.3(b) defines ``component part'' as 
a product or substance that is intended to be used in the manufacture 
or assembly of a finished product, and is not intended for sale to, or 
use by, consumers as a finished product. The SNPR defines a ``finished 
product'' as a product or substance that is ``regulated by the 
Commission that is imported for consumption or warehousing or is 
distributed in commerce.'' The SNPR definition explains that parts of 
such products or substances, including replacement parts, that are 
imported for consumption or warehousing, or are distributed in 
commerce, and that are packaged, sold, or held for sale to, or use by, 
consumers, are considered finished products.
    Only finished products subject to a rule must be tested and 
certified. Component part certificates are voluntary and are not 
required to accompany an imported component part, are not required to 
be furnished to retailers and distributors (as described in proposed 
Sec.  1110.13(b)), and are not to be eFiled.
    Not all replacement parts are finished products that require 
testing and certification. A replacement part of a consumer product 
that meets the definition of a finished product may be subject to part 
1110, if the replacement part is subject to a rule. For example, a 
handlebar stem for a bicycle that is sold to consumers as a replacement 
part requires a certificate, because handlebar stems, either as a 
stand-alone product or as part of a finished bicycle, must be tested 
for strength in accordance with 16 CFR 1512.18(g). Additionally, parts 
of toys, such as doll accessories, that are sold to consumers as a 
separate finished product, must comply with all applicable rules, 
including for example lead in paint and/or lead content. If the same 
doll accessories were imported for manufacturing purposes and not for 
consumption or warehousing, and were intended to be combined with a 
doll for sale, then such accessories would not be a finished product 
required to be certified until they are part of a finished product.
    Comment 39: Two commenters (C22, C38) objected to the requirement 
to certify replacement parts for products with many replaceable items, 
such as ATVs and walk-behind power mowers, which commenters allege will 
result in an increase to the overall burden that was not included in 
the burden estimate for the NPR. Commenter C22 stated that most 
replacement parts do not have serial numbers and needing to track each 
part will result in a tremendous logistical challenge. Additionally, 
the same commenter claimed that the proposed rule will expand the 
definition of finished products and apply it to replacement parts, 
which do not have their own safety standard.
    Response 39: As explained in response to comment 38, product parts 
that are unregulated by CPSC and not sold to consumers, but are instead 
intended to be used in manufacturing a consumer product, are not 
required to be tested and certified. To be subject to testing and 
certification under section 14 of the CPSA and part 1110, a product 
must be a finished product, as defined in proposed Sec.  1110.3(b), 
that is subject to one or more regulations.
    Comment 40: Two commenters (C49, C52) suggested that certification 
requirements specifically include ``retail component parts.'' The 
commenter defines these as component parts purchased at a retail 
establishment, which would be primarily purchased by handmade toy 
makers and small businesses. The commenter suggested that certificates 
for ``retail component parts'' be voluntary.
    Response 40: Component parts of a toy, such as doll clothing or 
accessories, are finished products when sold to consumers. If such 
finished products are subject to a regulation, section 14 of the CPSA 
requires that they be tested and certified. Accordingly, although the 
SNPR does not contain a separate definition for ``retail component 
parts,'' the definition of ``finished product'' in proposed section 
Sec.  1110.3(b) would include these products.
eFiling System and eFiling Pilots

I. CBP's IT Infrastructure

    Comment 41: Numerous commenters were concerned in 2013 that CBP 
systems then lacked the ability to accept electronic certificates in 
any format. For example, numerous commenters were concerned that CBP's 
system did not have the capacity to upload PDF/electronic files. 
Commenters advised that CPSC should wait and work with CBP to fully 
develop the International Trade Data System (ITDS), which would allow 
the direct submission of certificates via ACE.
    Response 41: As described in sections II.C and II.D.4 of this 
preamble, CPSC and CBP have established the technology infrastructure 
to meet the requirements of eFiling. CPSC and CBP conducted an initial 
eFiling pilot, the Alpha Pilot, in 2016-17 that used the PGA Message 
Set to transmit certificate data to CPSC's RAM for risk assessment. 
CPSC and CBP are currently conducting an eFiling Beta Pilot with 
importers and their customs brokers, to further test eFiling 
certificate data.
    Comment 42: Commenter C71 stated that CPSC should allow companies 
to use barcodes to upload certificate data.

[[Page 85772]]

    Response 42: CBP's PGA Message Set data structure does not allow 
for a bar code to upload PGA data. However, the SNPR would allow use of 
a GTIN (in numeric format), which is typically displayed on consumer 
products in barcode format, as part of the data element to describe the 
consumer product in proposed Sec.  1110.11(a)(1).
    Comment 43: Several commenters (C15, C16, C20, C21, C31, C36, C40, 
C55, C64) stated that because CPSC does not have the infrastructure to 
review uploaded PDF certificates from CBP and neither agency is staffed 
for eFiling, the new reporting requirements will slow the entry 
clearance process during peak import seasons, which can result in 
increased local storage capacity and irregular deliveries.
    Response 43: As described in section II.D of this preamble, 
certificate data would be submitted to CBP as data elements and 
seamlessly incorporated into CPSC's RAM for risk analysis using 
algorithms. If the RAM algorithm increases the risk score for a 
shipment based on certificate data, staff can identify the shipment for 
examination, and will also be able to review the certificate data for 
each shipment, along with entry documents.
    Because CBP is now capable of accepting certificate data elements 
via ACE, the entry clearance process will not be slowed. In fact, CPSC 
expects that certifiers who provide consistent and accurate certificate 
data will see a reduction in their shipments' risk scores, which would 
lower the chance of a hold for exam. Thus, CPSC expects that eFiling 
will facilitate compliant trade.
    Comment 44: Commenters (C12, C14, C20, C28, C44, C47, C64, C72, 
C76) stated that it is essential that CPSC's electronic certificate 
filing requirement reflect the complexity of the international supply 
chain, including different modes of transportation, and can process the 
large amounts of data it will receive, so as not to delay the delivery 
of goods. One commenter (C12) claimed that filing 24 hours prior to 
entry is unrealistic, because many imported products will require 
multiple certificates. Commenter C28 stated that the NPR's alternative 
option of allowing, rather than requiring eFiling, would be sufficient 
for effective targeting and the added benefits of requiring electronic 
filing of certificates will not outweigh the burden on importers.
    Response 44: As described in section II.D of this preamble, 
certifiers will have multiple means of eFiling certificates that 
address the commenters' concerns, including using a CPSC-managed 
Product Registry to enter and maintain certificate data. At entry, 
certifiers can reference a certificate in the Product Registry whenever 
the product is imported. Regardless of the mode of shipment, importers 
can reference a pre-existing data set when submitting a PGA Message 
Set. Importers can also choose to eFile all data elements each time a 
product is imported. Companies or brokers also can maintain their own 
product registries, and eFile the same data set multiple times to 
improve efficiency. CBP's systems can accept the certificate data, 
including multiple certificates for each entry line, up to 24 hours 
before arrival, which is the timeframe specified in section 14(g)(4) of 
the CPSA. CBP and CPSC have already tested this capability in the 
eFiling Alpha Pilot and are testing it again now in the eFiling Beta 
Pilot.
    Finally, as stated in section II.D.2 of this preamble, CPSC found 
an increased risk of a product safety violation for shipments without 
an accompanying certificate, as well as an increased risk with certain 
data elements. Thus, voluntary filing of certificates is not an 
effective way for CPSC to enforce the certificate requirement or to 
identify violative products. Importers of noncompliant products are 
less likely to file certificates if eFiling is not required.
    Comment 45: Several commenters (C15, C18, C20, C66) suggested that 
CPSC and/or CBP should notify companies regarding which HTS codes and 
associated shipments require certificates.
    Response 45: Importers are responsible for knowing whether the 
products they import are required to be tested and certified before 
entering the United States. A list of all regulated products covered by 
the 2013 NPR and this SNPR, for both children's products \15\ and non-
children's products,\16\ is maintained on CPSC's website. For importers 
using the Product Registry, this information is maintained in the 
software as well. For importers that want to eFile using a Full PGA 
Message Set, the list of regulations and associated codes is also 
stored on CPSC's website.\17\
---------------------------------------------------------------------------

    \15\ Children's product rules requiring testing and 
certification: https://www.cpsc.gov/Business--Manufacturing/Testing-Certification/Lab-Accreditation/Rules-Requiring-Third-Party-Testing.
    \16\ Non-Children's product rules requiring testing and 
certification: https://www.cpsc.gov/Business--Manufacturing/Testing-Certification/Lab-Accreditation/Rules-Requiring-a-General-Certificate-of-Conformity.
    \17\ https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fwww.cpsc.gov%2Fs3fs-public%2FBetaPilotCitationandExemptionCodesv2Cleared_0.xlsx%3FVersionId%3D_Cv6CJDAJ0u8UiigH9CNgQy1ax3b4G.b&wdOrigin=BROWSELINK.
---------------------------------------------------------------------------

    CBP will inform filers when a certificate may be expected with 
their entry based on the associated HTS code. For the Beta Pilot, CPSC 
created a publicly available list of HTS codes, maintained on CPSC's 
website (available at https://www.cpsc.gov/eFiling), which gives HTS 
codes for regulated consumer products within CPSC's jurisdiction. CBP 
and CPSC will use these codes to inform importers regarding the 
potential for having to file a certificate. CPSC has also developed CBP 
Customs and Trade Automated Interface Requirements (CATAIR) explaining 
how to file both Reference and Full PGA Message Sets that use HTS Codes 
associated with products that could fall within CPSC's certificate 
requirement. This CATAIR is available at www.cpsc.gov/eFiling, and is 
attached as Tab B to Staff's SNPR Briefing Package.

J. CPSC's IT Infrastructure

    Comment 46: Commenter C18 recommends using the ITDS and leveraging 
the automated process of receiving entry and entry summary information 
from CBP to eliminate paper-based processes. Commenter C45 suggests 
having a ``check box'' stating that the importer has a certificate on 
file, as an alternative to filing the certificate.
    Response 46: CPSC currently uses ITDS as part of the RAM to screen 
shipments of consumer products intended for import into the United 
States, including consumer products potentially in violation of health 
and safety laws. eFiling will continue to use ITDS to receive 
certificate data. And, as stated in section II.D.4 of this preamble, to 
streamline data collection the eFiling system will have a Product 
Registry database maintained by CPSC.
    Data collection will be automated and streamlined, but will not 
rely on a ``check box'' option to indicate that the importer has the 
required certificate, because a check box, without associated data, is 
insufficient for CPSC's enforcement and targeting needs as described in 
section II.C of this preamble.
    Comment 47: Commenters (C19) suggested that CPSC contemplate a web 
portal, whereby the ``Responsible Party'' can file the electronic 
certificate data elements. The Commission could then evaluate the data 
elements for inspection targeting purposes. Similar comments were filed 
by several commenters (C7, C67, C71, C72, C78, C82), all of whom 
recommended the ability to file certificate data for products that 
could be used more than

[[Page 85773]]

once, to minimize the burden of repeated data entry.
    Response 47: CPSC understands that a certificate database can be an 
efficient way to reduce burden. Accordingly, as described in sections 
II.D of this preamble, CPSC developed the suggested web portal, called 
the Product Registry, as part of the eFiling System. As contemplated by 
commenters, the Product Registry allows certifiers to electronically 
enter the certificate data elements for each regulated product once, 
and then submit a reference to this dataset each time the product is 
imported thereafter.

K. eFiling Procedures, Pilots, and Stakeholder Engagement

    Comment 48: Several commenters (C23, C36, C47, C64, C79, C80, C81) 
objected to the implementation of the 2013 NPR due to the lack of 
previous studies and pilots, and because the 2013 NPR allegedly did not 
identify problems with the current system. Several commenters (C15, 
C19, C77, C78, C79) suggested that CPSC withdraw the 2013 NPR until 
after the Commission addresses submitted comments. Commenters (C19, 
C46, C64, C77, C78) requested that CPSC engage with stakeholders more 
intensely to address various concerns related to the RAM, 
administrative and financial burdens, trade barriers, and streamlining 
the certificate process.
    Response 48: Please see the discussion in section II.D of this 
preamble regarding CPSC's pilots and Certificate Study, stakeholder 
engagement, and how CPSC will use certificate data to target shipments 
containing noncompliant consumer products and substances. Section XI of 
Staff's SNPR Briefing Package further details CPSC staff's outreach and 
education activities relating to certificates and eFiling.
    Comment 49: In 2013 a commenter (C79) recommended at least 18 
months before implementation of the eFiling requirement.
    Response 49: Based on developments since the 2013 NPR and 
experience in the Beta Pilot thus far, the SNPR proposes a 120-day 
effective date for a final rule and seeks public comment on this 
proposed effective date.
    Comment 50: A few commenters (C17, C64, C74, C75, C77) referenced 
Executive Order 13659, Streamlining the Export/Import Process for 
America's Businesses, signed by President Obama on February 19, 2014, 
and CPSC's role in and execution of the ``Single Window'' for imports 
and exports. These commenters suggested that CPSC work with either the 
Border Interagency Executive Council (BIEC) or Customs Operations 
Advisory Committee (COAC) to craft a rule that accommodates the needs 
of stakeholders.
    Response 50: CPSC actively collaborates with CBP regarding the 
``Single Window'' for imports and engages with the BIEC and with COAC. 
Throughout development of the eFiling program, CPSC has updated the 
BIEC and COAC at their regular meetings. CPSC also incorporates data 
from ITDS in its RAM for targeting and enforcement. CPSC also worked 
with CBP to develop the PGA Message Set, which is the means for 
certifiers to eFile certificate data. CPSC continues to work and 
consult with CBP on import surveillance issues, including the eFiling 
Alpha and Beta Pilots, and this rulemaking.
    Comment 51: Several commenters (C15, C39, C41, C64, C74, C81, C82) 
requested CPSC consider working with the CBP Importer Self-Assessment 
(ISA) or Customs-Trade Partnership Against Terrorism (CTPAT) programs 
to carve out eFiling exceptions for importers participating in these 
programs, who are currently considered ``trusted traders.'' These 
commenters proposed a specific exception for trusted traders from 
certificate filing ``at-entry'' and instead would have CPSC allow these 
traders to provide certificates ``on-demand,'' as they do today. One 
commenter (C15) suggested that CPSC should not require new data 
elements besides those already part of the ISA.
    Response 51: Because the requirements for CTPAT and other ``trusted 
trader'' programs do not particularly relate to potential consumer 
product safety hazards, and CPSC historically has found product safety 
violations for CTPAT members, the SNPR does not provide an exemption 
for members of ``trusted trader'' programs.
    Comment 52: A commenter (C77) suggested that the CPSC establish a 
permanent stakeholder advisory group to regularize needed input into 
product safety issues of mutual importance.
    Response 52: While CPSC staff agrees there could be benefits from a 
stakeholder advisory group, the establishment of such a group is out of 
scope for this rulemaking.
    Comment 53: One commenter (C74) stated that CPSC should allow 
multiple products on one certificate.
    Response 53: The SNPR proposes that certificate data identify the 
finished product with a sufficient description to allow staff to 
identify the product in question. To reduce the potential for 
disrupting importation of compliant products that appear on the same 
certificate as a potentially non-compliant product, the SNPR proposes 
that each certificate contain information for only one product. If a 
product is materially different, meaning that it has a different 
product design, manufacturing process (including location), or source 
of component parts (including paints and materials) from another 
similar product, then each product should have a separate eFiled 
certificate. In other words, if a certifier expects that the difference 
in a product can affect compliance, then each product should have a 
separate eFiled certificate. For an explanation of what the Commission 
means by materially different products, see 16 CFR 1107.23.
    For example, wearing apparel is typically made of the same material 
and ships with various styles and sizes of similar products. 
Accordingly, the SNPR would allow multiple models that were composite 
tested together, so long as there is no material change, to be included 
on one certificate. CPSC will consider the multiple models as one 
product, which should be referenced by one ID in the Product Registry 
or the Full Message Set. For example, multiple styles, sizes, and 
colors of the same shirt can be on the same certificate, referenced by 
one ID, because the differences in styles, sizes, and colors are not 
considered a material change. Also, if a product is comprised of a 
bundle of finished products, importers can provide one certificate that 
covers all products in the bundle or multiple certificates covering 
each individual product in the bundle.
    Comment 54: One commenter (C26) expressed concern that units of a 
product may come from several different manufacturing or testing 
batches and, therefore, there may be several different certificates 
associated with the product.
    Response 54: A product that was manufactured in different test 
facilities or in several different batches and tested separately would 
likely require a separate certificate for each batch, depending on the 
materials used and timing of testing, because each batch would likely 
have different testing information. The certifier is responsible for 
keeping track of manufacturing processes, product batches, and 
associated testing and certification, as has been the case since 2008, 
when the existing 1110 rule was published. CPSC's Product Registry is 
designed to assist certifiers in managing certificates for different 
products and product batches, where each certificate will be uniquely 
identified.
    Comment 55: Three commenters stated that requiring the electronic 
filing

[[Page 85774]]

of certificates will not only result in burden for importers, but also 
increase burden for the government. One commenter (C35) predicted that 
the processing of millions of PDF certificates would be overly 
expensive and recommended that any new requirements be integrated into 
existing supply chain and import practices. A second commenter (C81) 
stated that processing times will increase and CBP will have to rely 
upon manual release for a huge number of entries, especially during 
peak season. A third commenter (C55) questioned whether CPSC and CBP 
will be able to handle shipments without certificates and how the 
information will be validated for accuracy.
    Response 55: CBP has been collecting electronic data for other 
partner government agencies since 2016. The increase in data collected, 
in the form of data elements, will not result in increased processing 
times, because the data will be electronically transmitted to CPSC and 
initially reviewed by algorithms in the RAM. CPSC has been co-located 
with CBP at ports across the country since 2008 and already processes 
shipments lacking accompanying certificates. CBP and CPSC will 
incorporate data quality checks into the PGA Message Set to validate 
the accuracy of the certificate data.
    Comment 56: Several commenters (C15, C20, C36, C74, C81) asked for 
clarity about what will happen if a certificate contains an error or is 
not provided at all. One commenter (C36) asked whether a violation 
occurs if the importer characterizes a CPC as a GCC or vice versa. 
Another commenter (C15) asked CPSC to articulate the impact to 
importers if a certificate is not submitted upon entry.
    Response 56: Currently, before issuing a violation, CPSC staff 
considers whether any inaccurate information on the certificate was 
deliberate, or inadvertently erroneous. For example, a firm's 
mischaracterization of its certificate as a CPC rather than a GCC, or 
vice versa, is unlikely to result in a violation in the first instance 
if the underlying testing that supports the certificate is correctly 
conducted and accurate. Enforcement for noncompliant certificates 
includes a range of options, such as increasing an importer's risk 
score, which increases the risk of a hold for examination, and 
rejecting an entry that lacks certificate data, contains incomplete or 
inaccurate information, or lacks a disclaim message if no certificate 
is required for a flagged HTS code.
    Comment 57: Commenter (C17) suggested that the rule clearly state 
that products admitted into and/or produced in a foreign trade zone 
(FTZ) are not subject to CPSC requirements, including those for 
certification. The commenter noted that CPSC requirements should only 
apply to goods entered into the United States from the FTZ for 
consumption via a CBP Form 7501, instead of the CBP Form 3461, because 
Form 7501 includes details about the products making entry, whereas 
Form 3461 gives only estimates of the quantity and type of products. 
Other commenters (C21, C67, C74) also sought clarification on when a 
certificate must be filed for products leaving an FTZ.
    Response 57: The SNPR would apply to all finished goods entering 
the United States for consumption or warehousing, even if being 
imported from an FTZ, as specified in proposed Sec. Sec.  1110.5 and 
1110.13(a)(1). The CPSA does not exempt consumer products from testing 
and certification requirements based on the mode of importation. For 
products entering the United States from an FTZ, certificate data 
should be filed with CBP Form 7501, which details the products making 
entry.
    Comment 58: Three commenters (C15, C17, C43) sought clarification 
on how the NPR will impact the first-in-first-out (FIFO) inventory 
management system employed in FTZs. One commenter (C15) added that for 
products that are multi-sourced by different manufacturers under a FIFO 
system, tying certificates to the physical product would be cumbersome 
and costly.
    Response 58: The SNPR requires certifiers to match the correct 
certificate data to the correct product at the time of entry, so that 
the data can be used for targeting in CPSC's RAM. Furthermore, the SNPR 
proposes an effective date 120 days after publication of a final rule 
in the Federal Register. Therefore, FTZ users would have time to update 
their software after a final rule is issued. Alternatively, a certifier 
importing products from an FTZ could provide multiple certificates at 
entry that may apply to the product being imported, so that the 
certifier avoids the risk of having no certificate or providing an 
incorrect certificate.
Particular Consumer Products

L. Walk-Behind Power Mowers

    Comment 59: Two commenters (C38, C78) claimed that the NPR 
contradicts the certification requirements for walk-behind power lawn 
mowers in 16 CFR part 1205. Commenters note that Sec.  1205.35(a) 
states that the certificate shall be in the form of a durable label on 
the finished product and that Sec.  1205.36(a) states that an importer 
can rely in good faith on the foreign manufacturer's testing. 
Commenters requested that the current certificate requirements in 16 
CFR part 1205 be retained, rather than the filing requirements of the 
NPR.
    Response 59: As explained in response to comment 28, after the 
Commission issued 16 CFR part 1205 in 1979, Congress revised section 
14(a)(1) of the CPSA, adding requirements for certification for all 
regulated consumer products. The on-product label certificate required 
in Sec.  1205.35 remains, and is helpful for consumers to identify the 
product, certifier, and the production lot of the mower, in the case of 
a recall. However, the on-product certificate does not meet the 
statutory requirements for the form, content, and availability of 
certificates in sections 14(a) and (g) of the CPSA, or the Commission's 
rule in part 1110. For example, Sec.  1205.35(b) does not contain all 
data elements required in CPSA section 14(g)(1) and proposed Sec.  
1110.11. Accordingly, the SNPR maintains the requirement that mowers 
subject to part 1205 must also meet the certificate requirements in 
part 1110, including eFiling. Importers can continue to rely on a 
foreign manufacturer's testing and/or certification to certify imported 
products pursuant to 16 CFR part 1109. Moreover, the Product Registry 
is designed to allow certifiers to give permissions to other trade 
partners to enter data or certify products on their behalf.

M. Textiles and Wearing Apparel

    Comment 60: One commenter (C55), a clothing retailer, stated that 
creating certificates ``guaranteeing'' conformity with the Flammable 
Fabrics Act may not reflect true compliance, because vendors can alter 
test reports and certificates. Another commenter (C56) noted that third 
party testing and product certification are not required in the 
European Union for textile and clothing products. The commenter also 
adds that adult clothing manufactured in the United States is not 
subject to mandatory third party testing.
    Response 60: Altering or falsifying a test report or certificate is 
a prohibited act under section 19(a)(6) of the CPSA, and likely a 
criminal act, as set forth in 18 U.S.C. 1001. Where the facts warrant, 
the Commission may refer criminal acts to the Department of Justice for 
prosecution.
    Section 14(a)(1) of the CPSA requires certification for any product 
which is subject to a consumer product safety rule under any regulation 
enforced by the Commission. Therefore, clothing textiles require 
certification to the

[[Page 85775]]

applicable rules, irrespective of textile requirements in the European 
Union.\18\
---------------------------------------------------------------------------

    \18\ Note that in 2016, the Commission issued enforcement 
discretion stating that no certificate is required for adult wearing 
apparel that falls within one of the testing exemptions in Sec.  
1610.1(d). https://www.federalregister.gov/documents/2016/03/10/2016-04533/statement-of-policy-on-enforcement-discretion-regarding-general-conformity-certificates-for-adult. Children's wearing 
apparel that falls within Sec.  1610.1(d) must still issue a 
certificate and claim the testing exemption.
---------------------------------------------------------------------------

    Comment 61: Commenter (C56) requested that fabric tests based on 
the International Organization for Standards (ISO) standards and 
testing to EN597-1 (Furniture--Evaluation of Flammability of Mattresses 
and Upholstered Bed Bases) be considered suitable for the certification 
of mattresses subject to CPSC's flammability requirements. The 
commenter suggested exempting silk from testing to 16 CFR part 1610, 
Standard for the Flammability of Clothing Textiles.
    Response 61: Testing required to support a valid certificate under 
part 1110 is prescribed under the specific CPSC regulation to which the 
product is subject. What constitutes valid testing to support a 
required certificate, or qualifies as an exemption from the 
requirements of a regulation, is outside the scope of this rulemaking.

N. Architectural Glazing Materials

    Comment 62: Two commenters (C25, C30) argued that the NPR should 
only apply to glazing materials and not to architectural products 
containing glazing materials. Commenters stated that manufacturers of 
the architectural products are already responsible for meeting the 
testing and certification requirements under 16 CFR part 1201. 
Additionally, these commenters asserted, the NPR would effectively 
amend 16 CFR 1201.5 without complying with the process requirements of 
the Administrative Procedure Act (APA).
    Response 62: As noted, in 2008 Congress expanded the testing and 
certification requirements for regulated products in section 14 of the 
CPSA. The SNPR does not disrupt existing testing or certification 
requirements regarding who must test or certify products in 16 CFR part 
1201. Section 1201.5(a) states that manufacturers and private labelers 
of glazing materials covered by part 1201 shall comply with the 
requirements of section 14 of CPSA and regulations issued under it. 
Like the existing part 1110, proposed Sec.  1110.7(a) states that 
``[e]xcept as otherwise provided in a specific rule, ban, standard, or 
regulation enforced by CPSC, for a finished product manufactured 
outside of the United States that must be accompanied by a certificate 
as set forth in Sec.  1110.5, the importer must issue a certificate 
that meets the requirements of this part.'' Proposed Sec.  1110.7(b) 
contains a similar statement regarding domestically manufactured 
products. Thus, to the extent that finished products subject to part 
1201 are imported for consumption or warehousing, or distributed in 
commerce, they should continue to follow the requirement in Sec.  
1205.5(a) regarding who should issue a certificate.

O. Bicycles

    Comment 63: Two commenters (C40, C80) claimed that the bicycle 
industry does not have the resources to meet the certificate 
requirements and that there is no evidence that the additional burden 
would improve safety. Specifically, the commenters claimed the bicycle 
supply chain is not able to easily match bicycle components and 
accessories with particular certificates. In addition, one commenter 
(C40) suggested that certificates should not be required for bicycle 
replacement parts.
    Response 63: Section 14(a)(1) of the CPSA requires certification 
for any product which is subject to a consumer product safety rule 
under any regulation enforced by the Commission. Certification is only 
required for component or replacement parts if they are sold as 
finished products to consumers and if they are subject to a regulation. 
If the component part itself is not required to be tested for 
compliance with any part of a regulation, as distributed in commerce, 
then no testing or certification is required.

P. Refrigerators

    Comment 64: One commenter (C32) stated that the NPR would impose 
substantial administrative costs on household refrigeration 
manufacturers, yet few distributors or retailers request copies of 
certificates of conformity. The commenter also requested that 16 CFR 
part 1750 be included in a ``cleanup list'' for future legislative 
reform, because most modern refrigerators do not use latching 
mechanisms to hold the door closed.
    Response 64: eFiling for refrigerators is justified by the 
considerations discussed in section II of this preamble. The request 
for refrigerators to be on a ``cleanup list'' for future legislative 
reform is outside the scope of this rule. However, in 2019, the 
Commission issued a statement of policy announcing that for household 
refrigerators that bear a safety certification mark indicating 
compliance with the Underwriters Laboratory Standard 60335-2-24, 
Household and Similar Electrical Appliances--Safety--Part 2-24: 
Particular Requirements for Refrigerating Appliances, Ice-Cream 
Appliances and Ice-Makers, CPSC will not enforce the requirement that 
every manufacturer issue and provide a GCC. 84 FR 37767 (Aug. 2, 2019). 
CPCS's CATAIR, Tab B of Staff's SNPR Briefing Package, explains how 
importers of refrigerators can file a ``disclaim'' with CBP to avoid an 
error for not filing a certificate PGA Message Set.

Q. Fireworks

    Comment 65: Two commenters (C31, C61) stated the requirements set 
in the 2013 NPR are ``virtually impossible'' for fireworks, because 
these products are not serialized or lot-controlled.
    Response 65: Certain fireworks are subject to CPSC regulation and 
must be certified under existing law, and those certificates must be 
based on a test of each product or upon a reasonable testing program. 
Certificate requirements are found in section 14 of the CPSA and part 
1110, and have been in effect since 2008. We seek additional comment on 
how regulated fireworks meet this requirement now and how they can meet 
the eFiling requirement in the SNPR.
Analysis of Cost and Burden

R. Costs, Burden, the RFA and PRA

    Comment 66: Several commenters (C14, C20, C32, C36, C40, C47, C55, 
C75) stated that the Paperwork Reduction Act (PRA) and Initial 
Regulatory Flexibility Analysis (IRFA) did not accurately estimate the 
impact of the NPR on businesses, especially for large importers and 
specific industries, and did not reflect publicly available business 
information. One commenter (C49) suggested that the rule's requirements 
would be costly or otherwise detrimental to small businesses and the 
associated annual burden would be $27,500 per firm rather than the 
estimated $275.
    Two commenters (C39, C51) suggested that CPSC is not correctly 
estimating the recordkeeping burden by failing to take into account a 
realistic number of entries, IT costs for importers, and costs to 
private labelers to implement new testing and certification processes. 
One commenter (C41) stated that the proposed five-year paperwork 
retention period is longer than the three-year requirement in some 
current rules and is not supported by data. The commenter claimed that 
the burden calculated for the GCC for the apparel industry does not 
consider

[[Page 85776]]

retention of GCCs and supporting test reports.
    Response 66: Tabs C and D of Staff's SNPR Briefing Package, and 
sections VI and VII of this preamble, contain revised RFA and PRA 
analyses for the revised part 1110 and the eFiling requirement. These 
analyses can be more specific now that the IT solutions are developed 
and have been tested. As explained in the updated analysis, the burden 
of the SNPR consists of a marginal increase in recordkeeping for some 
non-children's products from three to five years and an additional 
eFiling requirement for importers of regulated consumer products. The 
SNPR requires importers to eFile certificates each time a regulated 
product is imported, but this burden is small.
    CPSC conducted an eFiling Alpha Pilot in 2016 with importers and 
brokers and determined the costs of eFiling were minimal. CPSC created 
a Product Registry, described in section II.D.4 of this preamble, which 
allows for one-time data entry for certificates that importers can 
reference each time the product is imported, without reentering data. 
The Product Registry also provides an IT solution for the storage and 
management of certificate data. No technological system is required 
other than a basic computer or laptop and an internet connection, which 
are normal business capital expenditures. No technical skills are 
required other than the ability to navigate the Product Registry 
website and fill out a series of web forms. Larger firms may invest in 
technology or processes to automate this process such as APIs or bulk 
data uploads to further reduce time burden. The PRA analysis in section 
VII of this preamble and Tab D of Staff's SNPR Briefing Package, 
estimates the burden of eFiling, including the time and cost burden for 
firms that may elect to automate data upload into the Product Registry. 
As explained in Tab C of Staff's SNPR Briefing Package, CPSC does not 
expect that the proposed rule would significantly impact small 
manufacturers and importers. Over time, moreover, the new eFiling 
requirement should reduce burden for importers who eFile compliant 
certificate data. Staff anticipates that additional certificate data 
will allow for better targeting of shipments with potentially hazardous 
products. Importers who file compliant certificate data may see a 
reduction in their risk scores, which may result in a reduced number of 
shipments placed on hold and examined and shorter wait times associated 
with exams.
    Comment 67: A few commenters (C39, C42, C46, C79) expressed concern 
that brokers and importers would have technical challenges implementing 
the rule, leading to costs for infrastructure upgrades and programming/
software development. Commenters asserted that linking their IT systems 
with the brokers' IT systems would cost between $30,000 and $500,000. 
In addition, commenters stated that increasing the number of data 
fields will incrementally increase the cost for the certifier and thus 
consumers. The commenters also expressed concern that importers and 
their supply chain partners will incur costs in creating new electronic 
certificates.
    Response 67: The commenters' concerns have been addressed by use of 
the existing PGA Message Set structure and the creation of the Product 
Registry, which can be used to create, store, and transmit 
certificates. The only interface requiring more than basic technical 
knowledge is the API interface, which CPSC is not mandating be used. 
However, firms that do choose to use this function would experience 
efficiency gains and time savings.
    Comment 68: Several commenters (C33, C43, C61, C80) expressed 
concern over the asserted complexity of filing certificates for 
multiple products within a shipment and the resulting burden, delays, 
duplication, and supply chain disruptions. Commenter (C21) stated that 
CPSC is underestimating the numbers of shipments per importer and the 
number of certificates required per shipment.
    Response 68: As described in section II.D of this preamble, to 
reduce cost and burden, CPSC developed the Product Registry, which 
allows importers to enter certificates prior to filing entry. Importers 
can reference a certificate stored in the Product Registry in a short 
PGA Message Set at Entry each time the product is imported. CPSC tested 
this concept in 2016 in the eFiling Alpha Pilot. During the eFiling 
Alpha Pilot, multiple certificates were successfully filed for a single 
entry. CPSC learned that importers that used the Product Registry were 
able to re-use certificates multiple times, alleviating potential 
burden from re-entering certificate information. The Commission's 
burden estimate reflects this efficiency.
    Comment 69: One commenter (C49) claimed that CPSC and Congress use 
different definitions for small entities.
    Response 69: CPSC applies the definitions for small businesses as 
prescribed in the Small Business Regulatory Enforcement Fairness Act. 
Additionally, CPSC uses the definition for Small Business Manufacturer 
as found under section 14(i)(4) of the CPSA.
Comments Regarding Justifications for the Proposed Requirements

S. Alleged Rulemaking Defects

    Comment 70: Many commenters (C14, C23, C35, C36, C39, C40, C46, 
C61, C64, C71, C76) alleged that the NPR's proposal was burdensome and 
unnecessary and that the Commission failed to identify sufficient 
evidence that the eFiling proposal would enhance targeting of violative 
products or improve safety.
    Response 70: CPSC explained in the 2013 NPR that the CPSA allows 
CPSC to require eFiling with CBP by rule, and that CPSC would use 
certificate data to target noncompliant, imported consumer products. 
See, e.g., 78 FR 28088-89. The preamble to this SNPR provides 
additional detail of the efforts in outreach, education, pilots, study, 
and infrastructure investment that have occurred over the last ten 
years to refine how importers will file certificate data, provide 
burden reduction options for importers, and demonstrate how CPSC will 
use the data to target noncompliant shipments. CPSC has also updated 
the burden estimate for this rule, demonstrating that eFiling for 
importers that are compliant with existing certificate requirements 
will not have a significant economic impact on industry. Finally, the 
efficiencies gained by using technology will not only improve 
enforcement of individual certificate violations, but also aid in the 
identification of noncompliant, hazardous shipments. eFiling will allow 
CPSC to use its staff assigned to ports more efficiently to focus on 
examinations of noncompliant shipments.
    Comment 71: A commenter (C71) stated that by establishing two types 
of certificates (the GCC and CPC), the NPR goes beyond the 
authorization of the CPSA.
    Response 71: CPSC is implementing the testing requirements in 
section 14 of the CPSA, which creates this distinction. CPCs for 
children's products must be supported by third party testing, whereas 
GCCs for non-children's products must be based on a test of each 
product or a reasonable testing program; third party testing is not 
required for GCCs. Other than the type of testing required to support 
the certificate, all data elements on GCCs and CPCs are the same.
    Comment 72: Several commenters (C21, C71, C50, C61) stated that the 
proposed requirement to file certificates with CBP diverges from the 
intent of Congress as expressed in CPSA section 14(g)(4) and poses a 
substantial burden to importers.

[[Page 85777]]

    Response 72: Section 14(g) sets forth minimum content requirements 
that CPSC may implement and expand through rulemaking, and section 
14(g)(4) expressly allows CPSC to require eFiling with CBP by rule. The 
Certificate Study demonstrated that certifiers fulfill certificate data 
requirements in a variety of ways; but to use certificate data for 
algorithmic targeting, CPSC must standardize the presentation of this 
information. Thus, CPSC is clarifying expectations for standardized 
certificate data, which is consistent with CPSC's authority in sections 
3 and 14 of the CPSA, and with notice and comment rulemaking under 
section 553 of the APA.
    Since 2013, moreover, CPSC has developed the Product Registry with 
substantial input from importers that is on-going in the Beta Pilot, to 
ease burdens on industry and assist in standardization of the format 
and content of certificate data for imported products.
    Additionally, since 2013 CBP completed ACE development as the 
``single window'' for Federal agencies to collect required data at 
entry. CBP has now implemented the PGA Message Set, which is attached 
to an entry; CPSC will use this now well-developed method to receive 
certificate data, as contemplated by the statutory framework for 
imported products.
    Comment 73: Many commenters objected to requiring certificates for 
products that are either subject to a ban or have a testing exemption, 
stating that CPSC does not have the authority to require certificates 
for products that do not require testing. One commenter (C23) stated 
that ``negative'' certificates would be especially complicated when 
children's products have many component parts subject to different 
rules, alleging that the CPSA does not authorize the CPSC to issue a 
rule requiring a finished product certifier to list each component in a 
children's product and require separate product safety rule 
certification of each component part. Commenter C22 suggested that the 
proposal would require certifiers to list every rule that a product is 
not subject to, or risk enforcement. Two commenters (C41, C47) noted 
previous CPSC guidance (Statement of Policy: Testing and Certification 
of Lead Content in Children's Products, and Statement of Policy: 
Testing of Component Parts With Respect To Section 108 of the Consumer 
Product Safety Improvement Act) and an FAQ stating: ``If, however, your 
children's product is wholly composed of components that satisfy the 
determinations and/or satisfy the determinations on inaccessibility, 
and there are no other applicable children's product safety rules, then 
you do not have to issue a children's product certificate.''
    Response 73: Section 14 of the CPSA requires that certificates list 
all applicable rules, bans, standards, and regulations. Accordingly, 
all finished product certificates, including children's products, must 
list all applicable rules, bans, standards, and regulations. 15 U.S.C. 
2063(a)(1)(B). The certificate is attesting that the product was tested 
to these rules and passed. Where multiple rules apply, as may be the 
case with children's products, for example, the certificate should list 
all applicable rules; the testing information where testing was 
required and successfully conducted under the listed rules; and any 
exceptions or exemptions that apply under the listed rules.
    CPSC recognizes several types of testing and/or certificate 
``exceptions'' or ``exemptions.'' To address the issues raised by the 
commenters, proposed Sec.  1110.11(c) is now prefaced with ``[u]nless 
otherwise provided by the Commission,'' the certifier should replace 
the lab place and date with the testing exclusion code. This phrase is 
intended to encompass any existing or future Commission enforcement 
discretion or other policy statements that provide testing or 
certification guidance. Therefore, as stated in the quoted FAQ, the 
Commission will not require certificates for products that are subject 
to Commission enforcement discretion or are otherwise wholly exempt or 
excluded from testing.
    Importers will use CBP's ``disclaim'' feature for non-regulated 
products within CPSC's jurisdiction and for products that are regulated 
but do not require certification. CPSC's CATAIR explains how to file a 
``disclaim'' in a PGA Message Set for products such as adult wearing 
apparel and refrigerators that are not required to issue a certificate 
based on the Commission's enforcement discretion. Using CBP's 
``disclaim'' option reduces burden for importers by not requiring a 
certificate and allows CPSC to capture data on why an importer did not 
file the expected certificate data.
    Tab B of Staff's SNPR Briefing Package, and the Commission's 
website (https://www.cpsc.gov/eFiling) provide CPSC's CATAIR detailing 
how these exemptions and exceptions are addressed by the eFiling 
requirement, as well as a list of all exemption/exception codes being 
tested during the Beta Pilot. The Product Registry will also assist 
importers to understand the available testing exemption/exception codes 
using drop down menus. CPSC encourages certifiers to review this 
information and submit comments on the proposed implementation of this 
requirement. Domestic manufacturers can also use this information to 
understand certificate requirements and how testing exemptions or 
exclusions should be noted on a certificate.
    Finally, the 2013 NPR discussed the issues involved in certifying 
to a ban, discussing that some bans do not remove an entire product 
category from the market, rather, they ban certain hazardous product 
characteristics. 78 FR 28080. The Commission's website contains a list 
of product safety rules, bans, standards, and regulations that require 
certification in a GCC.\19\
---------------------------------------------------------------------------

    \19\ https://www.cpsc.gov/Business--Manufacturing/Testing-Certification/Lab-Accreditation/Rules-Requiring-a-General-Certificate-of-Conformity.
---------------------------------------------------------------------------

    Comment 74: A commenter (C74) stated that certificates should be 
required at manifest and provide only those elements included in the 
importer security filing requirements.
    Response 74: Manifest occurs at an earlier import stage than entry. 
CBP has now finalized using the PGA Message Set to collect data 
required by PGAs. The PGA Message Set is tied to filing CBP's entry. 
Accordingly, CPSC will use this existing infrastructure to establish an 
eFiling requirement for certificates.
    Comment 75: Commenter C7 suggested requiring a full certificate at 
customs entry would create differential treatment between imports and 
domestically produced goods. Another commenter (C56) pointed out 
Article 5.1.2. of the World Trade Organization's Technical Barriers to 
Trade (TBT) Agreement, stating that conformity assessment procedures 
should not be adopted or applied with the effect of creating 
unnecessary obstacles to international trade, and should not be applied 
more strictly than necessary to importers.
    Response 75: The SNPR does not impose different testing or data 
element requirements on certificates for imported products. Unless 
otherwise provided by the Commission, all finished products or 
substances regulated by CPSC are required to be tested and certified as 
compliant, regardless of whether products are manufactured within the 
United States or imported. Regarding the eFiling process, CPSC's 
economic analysis demonstrates that for compliant importers, the PGA 
Message Set requirement will not have a significant impact on small (or 
large) importers, and thus the requirement should not create an 
obstacle to trade.

[[Page 85778]]

    Comment 76: The EU requested that the CPSC supply additional 
information on the rationale for imposing third party testing 
requirements for the flammability of children's clothing and apparel.
    Response 76: The SNPR does not require third party testing of the 
children's clothing and apparel standards set forth in 16 CFR part 
1610. Rather, 15 U.S.C. 2063(a)(2) and 16 CFR part 1107 require third 
party testing to all children's product rules. Part 1107 has been in 
effect for more than 10 years.

IV. Description and Explanation of Proposed Revisions to Part 1110

    Below we explain the basis for the SNPR to amend the current 1110 
rule and describe the provisions of the current rule, proposed 
revisions in the 2013 NPR, and how the 2023 SNPR either retains or 
changes the 2013 proposals. Because of the number of changes, the 
Commission proposes to strike and replace the existing 1110 rule in its 
entirety, as described below.

A. Purpose and Scope (Sec.  1110.1)

    Current rule: Existing Sec.  1110.1 describes the purpose and scope 
of the rule, explaining that the rule limits the entities required to 
issue certificates; specifies the content, form, and availability of 
certificates; and specifies the form of electronic certificates. 16 CFR 
1110.1(a). Existing Sec.  1110.1(b) explains that the rule does not 
implement eFiling certificates with CBP under section 14(g)(4) of the 
CPSA.
    2013 NPR: The 2013 NPR proposed to increase the number of entities 
responsible for issuing certificates, stating that the purpose was to 
``specify'' the entities that must issue certificates. Proposed Sec.  
1110.1(b) explained that the rule would implement section 14(g)(4) and 
require certificates for imported products to be eFiled with CBP. 78 FR 
28081. The proposed changes also would clarify which provisions in part 
1110 apply to voluntary component part certificates.
    2023 SNPR: The SNPR maintains the scope proposed in 2013, with non-
substantive editorial changes.

B. Definitions (Sec.  1110.3)

    Current rule: This section of part 1110 defines ``electronic 
certificate'' as ``a set of information available in, and accessible 
by, electronic means that sets forth the information required by CPSA 
section 14(a) and section 14(g) and that meets the availability 
requirements of CPSA section 14(g)(3)'' and states that definitions of 
section 3 of the CPSA and additional definitions in the CPSIA apply to 
part 1110.
    2013 NPR: The 2013 NPR added 13 new definitions to introduce 
concepts and terms used in the 1107 and 1109 rules and to clarify the 
requirements of part 1110. 78 FR 28081-82.
    2023 SNPR: The SNPR maintains the additional terms proposed in the 
2013 NPR, adds several more terms, and revises several definitions. 
Newly defined terms include: ``eFiled certificate,'' to differentiate 
an electronic certificate from a certificate that is submitted to CBP 
in a PGA Message Set, and ``Product Registry,'' to describe the CPSC-
maintained repository for certificate data. The SNPR revises several 
definitions to better describe the types of merchandise under CPSC's 
jurisdiction, which includes not only consumer products, but also 
hazardous substances. The SNPR replaces the term ``General Conformity 
Certificate'' with ``General Certificate of Conformity,'' because the 
latter is the statutory term.
    The SNPR broadens the definition of ``importer'' to include any 
entity CBP allows to be an importer of record (19 U.S.C. 
1484(a)(2)(B)). Proposed Sec.  1110.3 also defines additional terms to 
develop the revised definition of ``importer'' in the SNPR, such as 
``importer of record,'' ``consignee,'' and ``owner or purchaser.'' 
These definitions are based on CBP's definitions, found in 19 CFR 101.1 
and Customs Directive 3530-002A, with slight changes to reflect CPSC's 
purposes.
    The 2013 NPR proposed to codify the existing policy of placing the 
obligation to test and certify consumer products and substances on the 
IOR. In response to comments on the NPR and staff's experience with 
enforcement, the SNPR broadens the definition of ``importer'' beyond 
the IOR to allow a party familiar with the products with a beneficial 
ownership in the goods to be the importer responsible for testing and 
certification. The revised definition of ``importer'' includes the IOR, 
consignee, owner, or purchaser, which are typically all parties that 
have a financial interest in the products or substances being imported, 
and effectively caused the consumer product to be imported into the 
United States. The private labeler, which could certify a privately 
labeled product, is also included under this proposed definition, 
because a private labeler can be the consignee, owner, or purchaser.

C. Products Required To Be Certified (Sec.  1110.5)

    Current rule: The current Sec.  1110.5 states what is an acceptable 
form for certificates. In the existing rule, the Commission sought to 
allow ``electronic certificates'' to ease the burden of placing paper 
copies of certificates in a shipping container or box. Accordingly, the 
existing rule explains that a certificate that is in hard copy or 
electronic form and complies with all applicable requirements of part 
1110 meets the certificate requirements of section 14 of the CPSA. The 
existing rule states that the importer or domestic manufacturer must 
also meet the underlying statutory requirements to support a 
certificate, meaning the required testing and/or other bases to support 
certification and issuance of certificates.
    2013 NPR: The 2013 NPR proposed to revise Sec.  1110.5 to state 
when a certificate is required, clarifying that only finished products 
subject to a consumer product safety rule under the CPSA, or similar 
rule, ban, standard, or regulation under any other law enforced by the 
Commission, that are imported for consumption or warehousing, or are 
distributed in commerce, need to be accompanied by a certificate. This 
is a restatement of the statutory requirement. Use of the term 
``finished product'' in the 2013 NPR clarified that component parts of 
a consumer product are not required to be certified; the 1109 rule 
allows for voluntary component part testing and/or certification, but 
testing or certification of component parts not intended to be offered 
for sale as finished products is never required. 78 FR 28082-83.
    The 2013 NPR also explained when banned products are required to be 
certified, stating that bans ``generally remove the subset of products 
with hazardous characteristics, but still leave some products subject 
to CPSC regulation. In sum, manufacturers of products in a category 
where a subset of the products are subject to a ban must still issue 
certificates.'' 78 FR 28082. The 2013 NPR provided a list of bans for 
which a GCC certifying compliance is required. 78 FR 28083. This list 
is also maintained on CPSC's website at https://www.cpsc.gov/Business--Manufacturing/Testing-Certification/Lab-Accreditation/Rules-Requiring-a-General-Certificate-of-Conformity.
    2023 SNPR: The SNPR retains proposals in the 2013 NPR clarifying 
that a certificate is required only when: (1) the product is a finished 
product; (2) the product is subject to a consumer product safety rule 
under the CPSA, or similar rule, ban, standard, or regulation under any 
other law enforced by the Commission; and (3) the product is imported 
for consumption or warehousing, or is distributed into commerce.

[[Page 85779]]

D. Who Must Certify Finished Products (Sec.  1110.7)

    Current Rule: Section 1110.7 of the existing rule states that, 
except as otherwise provided in a specific standard, for products 
manufactured outside the United States the importer is required to 
certify the product and provide a certificate, as required by section 
14(a) of the CPSA. Certificates must be available to the Commission as 
soon as the product is available for inspection in the United States. 
For products manufactured in the United States, the manufacturer must 
certify products and provide the required certificate. Certificates 
must be available prior to the introduction of the product or shipment 
into domestic commerce.
    2013 NPR: Section 1110.7 of the 2013 NPR continued to require that, 
unless a specific rule states otherwise, importers certify imported 
products, except for products that are delivered directly to consumers 
in the United States, such as products purchased through an internet 
website. For products delivered directly to a consumer, the Commission 
proposed that the foreign manufacturer be required to issue a 
certificate, unless the product bears a private label, and then the 
private labeler would be required to issue a certificate. Thus, the 
2013 NPR would have placed on a private labeler the responsibility for 
ensuring testing and certification of privately labeled products, 
either by testing and certifying the product, or by ensuring that the 
manufacturer has done so. The proposed revision clarified that the 
consumer would not typically be responsible for certifying a product, 
even if the consumer could technically meet the definition of an 
``importer'' under a direct-purchase scenario. 78 FR 28083-84.
    For finished products manufactured in the United States that are 
required to be certified, the 2013 NPR maintained the requirement that, 
unless a specific rule requires otherwise, a manufacturer must issue 
the certificate. But, as with imported products, the 2013 NPR placed 
testing and certification responsibility for domestically manufactured, 
privately labeled products on the private labeler. The 2013 NPR allowed 
private labelers to continue to rely on a manufacturer's certification 
if they choose to do so and follow the requirements in part 1109. Id.
    2023 SNPR: For imported consumer products that require testing and 
certification, the SNPR retains requirements from the existing rule, 
rather than the changes proposed in the 2013 NPR. The SNPR requires 
that, unless a specific rule states otherwise, only importers, as newly 
defined, must issue a certificate for imported products. However, a 
private labeler could assume responsibility for certifying an imported 
product under the SNPR, because a private labeler would fall within the 
definition of a consignee, owner, or purchaser of the goods under the 
new importer definition proposed in Sec.  1110.3.
    For domestically manufactured finished products, the SNPR maintains 
the 2013 NPR proposal that, unless otherwise required in a specific 
rule, the manufacturer must issue the certificate, except for consumer 
products or substances that are privately labeled. When a product is 
privately labeled, a manufacturer name does not appear on the product. 
Accordingly, for such products, placing responsibility on the private 
labeler is both pragmatic and appropriate. However, the SNPR proposes 
to allow private labelers to continue to rely on a manufacturer's 
testing or certification if they choose to do so. Importantly, if a 
manufacturer's name appears on a product, the product is not privately 
labeled under the definition in section 3 of the CPSA, 15 U.S.C. 
2052(a)(12), and the manufacturer would be required to test and certify 
the product.
    The SNPR moves the requirement regarding the availability of 
certificates for imports and domestic products, found in Sec.  
1110.7(c) of the existing rule, to proposed Sec.  1110.13.

E. Certificate Language and Format (Sec.  1110.9)

    Current Rule: Section 1110.9 of the existing rule provides that 
certificates may be in hard copy or electronic form and must be 
provided in English but also may be provided in any other language.
    2013 NPR: The 2013 NPR maintained the two requirements in the 
existing rule with minor edits. The 2013 NPR continued to allow a broad 
range of formats for electronic certificates, as long as the 
certificate is identified by a unique ID and can be accessed online via 
a URL or other electronic means. The 2013 NPR proposed that the unique 
ID be ``identified prominently on the finished product, shipping 
carton, or invoice.'' The 2013 NPR discussed that experience with 
electronic certificates had shown that they can be effective when they 
are easily accessible. 78 FR 28084-85.
    The 2013 NPR proposed that electronic certificates be available 
without password protection, stating that the number of manufacturers, 
private labelers, and importers that certify products could make the 
maintenance of password information burdensome on CPSC and diminish the 
efficiencies achieved by allowing electronic certificates. 78 FR 28085. 
The 2013 NPR also clarified that electronic certificates, the URL or 
other electronic means, and the unique ID must be accessible to the 
Commission, CBP, distributors, and retailers ``on or before the date 
the finished product is distributed in commerce.'' Id.
    Finally, the requirements for electronic certificates in the 2013 
NPR only applied to: products manufactured in the United States; 
foreign-manufactured products that are delivered directly to a consumer 
in the United States; certificates furnished to retailers and 
distributors; and imported finished products after importation, such as 
when requested by CPSC or CBP. 78 FR 28084. The 2013 NPR specifically 
excluded certificates filed with CBP from the electronic certificate 
requirements in this section, because certificates eFiled with CBP 
would likely require different formatting based on CBP's system of 
records. Id.
    2023 SNPR: The SNPR retains most of the language proposed in the 
2013 NPR with several changes for clarity. Proposed Sec.  1110.9 (a) 
states that an eFiled certificate must be in English. Certificate data 
eFiled in an IT system built by CBP, or uploaded into CPSC's Product 
Registry, must be in English based on system design. Proposed Sec.  
1110.9 (a) provides that a hard copy or electronic certificate must be 
in English, but may also contain the same content in any other 
language.
    Proposed Sec.  1110.9(b) clarifies the formats for eFiled and for 
hard copy and electronic certificates. The SNPR proposes that an eFiled 
certificate must meet the requirements in proposed Sec.  1110.13(a), 
and that certificates furnished to retailers, distributors, or to CPSC 
pursuant to Sec.  1110.13(b) and (c) may be provided in hard copy or 
electronically.
    Proposed Sec.  1110.9(c) describes the format for the electronic 
certificates described in Sec.  1110.13(b) and (c), which are used to 
furnish a certificate to retailers or distributors, or to CBP or CPSC 
upon request. Based on the agencies' IT development and comments 
received, the SNPR removes the provision that an electronic certificate 
must not be password protected. eFiled certificates will be filed into 
a government IT system with appropriate protections. However, if an 
importer provides a password protected electronic certificate to CPSC 
or CBP, the password must be provided to the relevant agency at the 
same time.

[[Page 85780]]

F. Certificate Content (Sec.  1110.11)

    Current Rule: This section of the existing rule identifies the 
statutorily required seven data elements that must be present on all 
certificates: (1) information identifying the product covered by the 
certificate; (2) a list of all applicable rules for which the product 
is being certified; (3) the name, full mailing address, and telephone 
number of the importer or domestic manufacturer certifying the product; 
(4) the name, email address, full mailing address, and telephone number 
of the individual maintaining records of test results; (5) the date 
(minimally, the month and year) and place (including city and state, 
country, or administrative region) of manufacture; (6) the date and 
place (including city and state, country, or administrative region) 
where the product was tested; and (7) the name, full mailing address, 
and telephone number of the laboratory that conducted any required 
third party testing.
    2013 NPR: The 2013 NPR proposed to clarify and expand upon the 
existing seven data elements and to add three new data elements that 
would assist in identifying the products covered by the certificate. 78 
FR 28085-88. It clarified that additional identifying information for 
products may be included on a certificate, such as UPCs and GTINs. 78 
FR 28085. The NPR allowed more than one product on a certificate, 
provided they were created at the same factory and relied upon the same 
testing. Id. The 2013 NPR also proposed to modify certificate content 
requirements to allow for certificates to cover finished products or 
component parts. Accordingly, the NPR proposed to require finished 
product certificates to list all applicable rules, while component part 
certificates would list only those rules for which the component part 
is being certified (because certifiers of component parts can choose 
which standards to test and certify to, and they may not know all of 
the standards that eventually may apply to the component part when it 
is integrated with a finished product). 78 FR 28086.
    The three proposed new content requirements for certificates were 
date of initial certification, scope of the certificate, and 
attestation certifying compliance. The existing rule requires the date 
of initial certification, but it only applies to electronic 
certificates. Proposed Sec.  1110.11(a)(2) of the NPR sought to ensure 
that all certifiers are using the same date on certificates. 78 FR 
28086. Proposed Sec.  1110.11(a)(3) sought to require the scope of the 
finished product or component part for which the certificate applies, 
so that CPSC can better match a certificate to a product. 78 FR 28086. 
Finally, to educate certifiers of their legal obligations, proposed 
Sec.  1110.11(a)(10) required an attestation certifying compliance 
indicating that the information provided by the certifier is true and 
accurate. 78 FR 28087.
    The 2013 NPR also proposed in Sec.  1110.11(b), (c), and (d), to 
describe more fully the requirements for certificate formats. 78 FR 
28088. Proposed Sec.  1110.11(b) would allow, but not require, the 
certifier to include a URL or other electronic means on the 
certificate, along with identification of the custodian of records, to 
allow for electronic access to supporting records such as test records. 
Proposed Sec.  1110.11(c) described what certifiers must do when a 
product is subject to more than one consumer product safety rule, and 
the certifier is claiming a testing exception for some, but not all, of 
the applicable rules. Proposed Sec.  1110.11(d) clarified that although 
each applicable rule must be listed on a certificate, finished product 
certifiers are not required to conduct duplicative third party testing 
for any rule that refers to or incorporates fully another applicable 
consumer product safety rule or similar rule, ban, standard, or 
regulation under any other law enforced by the Commission. 78 FR 28088.
    2023 SNPR: The SNPR requires the seven statutory data elements in 
the existing rule, and includes only one of the three additional 
requirements proposed in the 2013 NPR--attestation. However, the SNPR 
provides additional detail on the required data elements. Below we 
describe each data element proposed in Sec.  1110.11(a) of the SNPR.
    Product Identification (Sec.  1110.11(a)(1)): The SNPR proposes to 
require identification of the finished product covered by the 
certificate, including at least one unique ID from a list of seven 
options and a sufficient description to match the finished product to 
the certificate. Certifiers may provide optional additional IDs to 
assist with product identification. The SNPR would clarify that 
``identification'' means a unique ID is necessary for eFiling, so that 
certificates can be better tracked in the Product Registry and RAM. 
CPSC expects that it would be easier for importers to provide a unique 
ID that already exists for the product as allowed by the SNPR, instead 
of having certifiers manage an additional identifier assigned by CPSC 
but invites comment on this question.
    The SNPR also proposes to expand the term ``description'' from the 
2013 NPR to mean a ``sufficient description to match the finished 
product to the certificate.'' Currently, the description in a 
certificate is sometimes insufficient to enable CPSC staff to determine 
whether the certificate describes the product being examined.
    List of Applicable Rules (Sec.  1110.11(a)(2)): The SNPR would 
retain without change the requirement in the existing rule and the 2013 
NPR to provide a list of all applicable rules to which the product is 
being certified. The eFiling system makes this requirement easier for 
certifiers because CPSC will provide a standardized list of all rules, 
each assigned a code. When eFiling certificate data, the certifier 
would only need to select from these codes, either in the Full Message 
Set or in the Product Registry.
    Identification of Certifier (Sec.  1110.11(a)(3)): The SNPR would 
maintain the requirement from the 2013 NPR to identify the party 
certifying compliance of the finished product(s), including the party's 
name, street address, city, state or province, country or 
administrative region, electronic mail (email) address, and telephone 
number. Adding a more specific street address interprets the statutory 
requirement for a ``full mailing address,'' and would assist staff in 
distinguishing facilities or locating certifiers for site visits. If a 
certifying party's physical location does not have a street address, 
then a location identification typical of the country of origin, or a 
GPS coordinate, is also permissible. We also retain the proposal to 
include an email address, which is intended to improve communication 
between CPSC and the certifying party, particularly across time zones.
    Contact for Records (1110.11(a)(4)): The SNPR proposes to maintain 
the requirement from the existing rule and 2013 NPR to provide the 
identity and contact information for the individual maintaining records 
of test results. As with the certifier's contact information, the SNPR 
describes in more detail the concept of a ``full mailing address'' to 
include ``street address, city, state or province, country or 
administrative region, electronic mail (email) address, and telephone 
number.'' The 2013 NPR also referenced the recordkeeping sections of 
the Code of Federal Regulations that apply to GCCs and CPCs, which the 
SNPR maintains.
    The SNPR clarifies that the individual maintaining records may be a 
position title, provided that this position is always staffed and 
responsive to CPSC's requests. This change is in response to public 
comments concerned that the individual maintaining the records of test 
results may leave the company or

[[Page 85781]]

otherwise be unavailable, and that a position title would provide 
continuity.
    Manufacture Date and Place (1110.11(a)(5)): The SNPR would maintain 
the requirement from the existing rule to provide the date when the 
finished product(s) were manufactured, produced, or assembled. The 
first date of a batch run is the date of manufacturing. The SNPR also 
maintains the statutory requirement from the existing rule to provide 
the place where the finished product(s) were manufactured. The SNPR 
aligns the manufacturer information with the other data elements 
regarding contact information, proposing to require the manufacturer 
name, street address, city, state or province, country or 
administrative region, email address, and telephone number where the 
finished product(s) were manufactured, produced, or assembled. This 
requirement is consistent with section 14(g)(1) of the CPSA which 
requires ``each party's name, full mailing address, [and] telephone 
number.'' CPSC proposes to require additional manufacturer detail, for 
eFiling in particular, because staff has experienced situations where 
it is difficult to distinguish between multiple firms with similar 
addresses and contact the correct manufacturer. If a location does not 
have a street address, a location identification typical of the country 
of origin or a GPS coordinate is permissible.
    Test Date and Place (1110.11(a)(6)): The SNPR would maintain the 
requirement from the existing rule to provide the date when the 
finished product(s) were tested for compliance. The SNPR, however, 
amends this requirement to clarify that the required date is the most 
recent date of testing. This change is to aid CPSC in assessing the 
validity and integrity of a certificate, and to promote consistency 
across certificates for CPSC and certifiers, particularly where 
laboratory testing is done over several days.
    The SNPR maintains the requirement from the existing rule to 
provide the place where the finished product(s) were tested for 
compliance. The SNPR standardizes the contact information required, 
including the name of each third party conformity assessment body or 
other party on whose testing the certificate depends, and the street 
address (or locally comparable location identification), city, state or 
province, country or administrative region, email address, and 
telephone number. The SNPR requires an email address, so staff has 
another means of contacting the testing laboratory.
    Attestation (Sec.  1110.11(a)(7)): The SNPR proposes to maintain 
the requirement from the 2013 NPR to provide an attestation certifying 
compliance, indicating that the information provided by the certifier 
is true and accurate and that the certified product complies with all 
rules, bans, standards, or regulations applicable to the product under 
the CPSA or any other Act enforced by the Commission. We note that the 
Product Registry contains a certifier attestation and also allows an 
importer to designate third parties that can enter certificate 
information and certify on behalf of the importer, if such permission 
is granted. The importer remains responsible for the information 
provided to CPSC, making an attestation by each party entering 
information important to maintain accountability for the information.
    The SNPR does not include two proposals from the 2013 NPR: the date 
of initial certification and the scope of the finished product(s) 
covered by the certificate. Based on revisions to the identification of 
the product, and manufacture and test dates, the proposed new fields 
are now unnecessary because CPSC will know the date of laboratory 
testing and the date the certificate was filed. Similarly, the proposed 
product identification requirement of at least one unique ID and a 
``sufficient description to match the finished product to the 
certificate'' makes it unnecessary to have a statement of the scope of 
the finished product(s). However, the SNPR would allow certifiers to 
provide production start and end dates and lot numbers as optional 
fields.
    Furthermore, the SNPR retains the proposal in Sec.  1110.11(b) of 
the 2013 NPR for a certificate to optionally include a URL or other 
electronic means, along with the identification of the custodian of 
records, to allow for electronic access of supporting records, such as 
test records. If certifiers provide this information, staff can more 
easily confirm the veracity of the certificate. The SNPR contains minor 
clarifications that specify the sections of the CFR containing the 
recordkeeping requirements for supporting records.
    The SNPR also retains the proposal in Sec.  1110.11(c) of the 2013 
NPR for certifiers to list all claimed testing exclusions, instead of 
providing the date and place where the product was tested for 
compliance. The Product Registry lists all available exclusions for 
each rule, streamlining and standardizing how to record these 
exclusions. These exclusions will also be maintained on CPSC's website 
for use in a Full PGA Message Set. The SNPR does not keep the proposal 
to include the basis for each exclusion, because this is resolved by 
stating the testing exclusion. Many certifiers already list their 
testing exclusions, so this requirement will standardize the process 
for all certifiers. Furthermore, this requirement would only be 
relevant when the product is subject to a product safety rule. If no 
product safety rule or similar rule, ban, standard, or regulation 
applies, or the product is subject to enforcement discretion (such as 
adult wearing apparel relying on Sec.  1610.1(d), which only requires a 
disclaim), then no certificate would be required.
    Finally, the SNPR retains the proposal in Sec.  1110.11(d) 
regarding duplicative testing. The SNPR states that certifiers are not 
required to conduct duplicative testing for any rule that refers to, or 
incorporates fully, another applicable consumer product safety rule or 
similar rule, ban, standard, or regulation under any other law enforced 
by the Commission. This proposal is maintained for the same reasons 
stated in the 2013 NPR, to reduce burden for certifiers.

G. Certificate Availability (Sec.  1110.13)

    Current Rule: Section 1110.13(a) of the existing rule restates the 
statutory requirement in section 14(g)(3) of the CPSA that certificates 
must ``accompany'' each product or product shipment and be furnished to 
distributors and retailers. Section 1110.13(a)(1) and (2) explains how 
electronic certificates satisfy the ``accompany'' and ``furnish'' 
requirements of that section, and Sec.  1110.13(b) states that an 
electronic certificate must have a means to verify the date of its 
creation or last modification.
    2013 NPR: The 2013 NPR proposed to move the requirements for 
electronic certificates to proposed Sec.  1110.9(c), while proposed 
Sec.  1110.13 addressed when certificates had to ``accompany'' a 
product or product shipment, be ``furnished'' to retailers or 
distributors, and be ``furnished'' to CPSC and CBP. The 2013 NPR also 
proposed that certificates be eFiled with CBP prior to arrival of an 
imported product, as authorized in section 14(g)(4) of the CPSA. 78 FR 
28088.
    Proposed Sec.  1110.13(a)(1) of the 2013 NPR stated that for 
imported products to meet the ``accompany'' requirement, importers must 
eFile certificates with CBP, either when the entry is filed, or when 
the entry and entry summary are

[[Page 85782]]

filed, if they are filed together.\20\ The NPR explained that only 
finished products would require certification, and that certificates 
filed in the form of data elements would allow more efficient 
targeting. 78 FR 28089. The 2013 NPR acknowledged that, at that time, 
CBP was not yet able to collect PGA data. 78 FR 28089.
---------------------------------------------------------------------------

    \20\ An entry summary (CBP Form 7501) must be filed within 10 
days of the cargo's release from CBP custody or within 10 working 
days after entry of the merchandise and estimated duties deposited.
---------------------------------------------------------------------------

    Proposed Sec.  1110.13(a)(2) of the 2013 NPR required that for 
finished products manufactured domestically to meet the ``accompany'' 
requirement, the finished product certifier must make the certificate 
available for inspection by CPSC on or before the date the finished 
product is distributed in commerce. 78 FR 28089.
    Proposed Sec.  1110.13(a)(3) of the 2013 NPR stated that for 
imported finished products that are required to be certified and that 
are delivered directly to a consumer in the United States, the finished 
product certifier could either eFile the certificate with CBP, or they 
could make the certificate available for inspection by CPSC on or 
before the date the finished product is distributed in commerce. In the 
case where no entry is filed, a finished product certifier could meet 
the ``accompany'' requirement either by placing a hard copy of the 
certificate in the box with the product or by following the 
requirements for an electronic certificate. 78 FR 28089.
    Proposed Sec.  1110.13(b) of the 2013 NPR restated the statutory 
requirement in section 14(g)(3) of the CPSA that finished product 
certificates be furnished to distributors and retailers. Proposed Sec.  
1110.13(c) of the NPR added a new section reflecting the requirement in 
section 14(g)(3) that certificates must be furnished to CPSC and CBP 
upon request. The proposal states that certificates be made available 
immediately upon request by the CPSC or CBP. The preamble to the 2013 
NPR defined the term ``immediately'' to mean ``within 24 hours,'' as it 
has been interpreted by CPSC in other rules. 78 FR 28089.
    2023 SNPR: The SNPR retains some of the 2013 NPR's proposals and 
amends others. Now that the IT solutions are available and more fully 
developed, proposed Sec.  1110.13(a) in the SNPR points to a CPSC-
specific CATAIR and Product Registry that contain the IT solutions for 
eFiling. Thus, for example, the SNPR does not retain a separate 
``accompany'' requirement for imported finished products that are 
delivered directly to a consumer in the United States, but rather 
provides for collecting these certificates electronically.
    Like the 2013 NPR, proposed Sec.  1110.13(a) explains that a 
finished product certificate must accompany each finished product or 
finished product shipment required to be certified pursuant to Sec.  
1110.5. Additionally, Sec.  1110.13(a) requires that each certificate 
describe a single product. One product per certificate allows the RAM 
to conduct risk analysis on unique products in a shipment, which allows 
better targeting of potentially violative products and avoids delaying 
delivery of products in a shipment that do not warrant examination.\21\
---------------------------------------------------------------------------

    \21\ See, for example, Sec.  1107.23, which explains a 
``material change'' to a children's product. Products that are not 
the same in all material respects cannot be on the same certificate.
---------------------------------------------------------------------------

    Proposed Sec.  1110.13(a)(1) of the SNPR states that GCC or CPC 
data elements for an imported product must be eFiled in ACE at the time 
of entry filing, or entry summary, if both are filed together, and as 
provided in CPSC's CATAIR (and discussed in Tab B of the Staff SNPR 
Briefing Package). The requirement applies to all imported finished 
products subject to a CPSC regulation, including de minimis shipments 
and products imported from an FTZ. The SNPR also explains that for 
finished products that are imported by mail, the finished product 
certifier must enter the required GCC or CPC data elements into CPSC's 
Product Registry prior to the product or substance arriving in the 
United States.
    Proposed Sec.  1110.13(b) of the SNPR maintains the statutory 
requirement from the 2013 NPR to ``furnish'' a required CPC or GCC to 
each distributor or retailer. Proposed Sec.  1110.13(c) of the SNPR 
maintains the statutory requirement to make certificates available for 
inspection immediately upon request by CPSC or CBP. To be clear 
regarding the expectation, the SNPR proposes in the regulation text 
that ``immediately'' means within 24 hours. The 2013 NPR stated this in 
the preamble.

H. Legal Responsibility for Certificate Information (Sec.  1110.15)

    Current Rule: Current Sec.  1110.15 states that another entity may 
maintain an electronic certificate platform, but the certifier is still 
responsible for ensuring its validity, accuracy, completeness, and 
availability.
    2013 NPR: The 2013 NPR maintained the requirement in the existing 
rule with slight edits. 78 FR 28090.
    2023 SNPR: Proposed Sec.  1110.15 of the SNPR maintains the NPR 
requirement, but proposes that the entity that maintains an electronic 
certificate platform and enters the requisite data into U.S. Government 
systems on behalf of the certifier may also certify the product(s) on 
the certifier's behalf. This addition accommodates diverse 
relationships between certifiers and their trade partners to better 
facilitate trade. The SNPR maintains accountability for certifiers, who 
are ultimately responsible for testing and certification. Certifiers 
will have the ability in the Product Registry to manage permissions for 
trade partners to enter data and/or to certify products, including 
managing the roles of specific individuals who enter data or certify 
products on the certifier's behalf. Certifiers should exercise due 
diligence if they allow another entity to certify on their behalf.

I. Recordkeeping Requirements (Sec.  1110.17)

    Current Rule: The current rule does not contain recordkeeping 
requirements.
    2013 NPR: The 2013 NPR proposed a new Sec.  1110.17 to establish 
recordkeeping requirements. 78 FR 28090. For CPCs, the 2013 NPR 
summarized the existing recordkeeping requirements in other rules that 
apply to CPCs, including Sec. Sec.  1107.26, 1109.5(g), and 1109.5(j), 
all of which have a five-year record retention period based on the 
applicable statute of limitations. The 2013 NPR proposed to align the 
record retention requirements for GCCs with those for CPCs, such that 
certifiers would maintain the certificate and supporting test records 
for at least five years. 78 FR 28090. The NPR explained that 
maintenance of such records may, for example, aid both the certifier 
and the Commission in the event of an investigation or product recall. 
Id.
    2023 SNPR: Proposed Sec.  1110.17 of the SNPR maintains the 
recordkeeping requirement from the 2013 NPR. CPCs have a five-year 
record retention period based on the 1107 and 1109 rules and the 
statute of limitations for enforcement.

J. Component Part Certificates (Sec.  1110.19)

    Current Rule: The current rule does not address component part 
certificates.
    2023 NPR: Proposed Sec.  1110.19 of the 2013 NPR added a new 
section to clarify for stakeholders which sections of the 1110 rule 
apply to voluntary component part certificates. If a finished product 
certifier chooses to rely on a component part certificate, the 
component part certificate must meet the requirements

[[Page 85783]]

of the 1109 rule, as well as the form, content, and availability 
requirements described in the 2013 NPR. 78 FR 28090.
    2023 SNPR: The SNPR's proposal retains the component part 
certificate requirements from the 2013 NPR.

V. Effective Date

    The APA generally requires that the effective date of a rule be at 
least 30 days after publication of the final rule. 5 U.S.C. 553(d). The 
Commission proposes that a final rule for revisions to 16 CFR part 1110 
will become effective 120 days after publication in the Federal 
Register. Although the SNPR makes few changes in the certificate 
requirements for domestic manufacturers, importers will require this 
time to onboard with CPSC's Product Registry and upgrade software to 
send a PGA Message Set to their broker for eFiling.
    The proposed 120-day effective date is consistent with the 
experience of eFiling Beta Pilot participants that advised on IT 
solutions and initially tested the eFiling system. CPSC expects that 
once software is updated to submit entry data to CBP, gaining login 
credentials into the Product Registry will take less than 10 minutes 
and training will take less than two hours. CPSC seeks comment on the 
proposed effective date and intends to consider the experience of all 
Beta Pilot participants when considering a final effective date.

VI. Initial Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (RFA) requires that agencies review 
a proposed rule for the rule's potential economic impact on small 
entities, including small businesses, unless the agency certifies that 
the rule will not, if promulgated, have a significant economic impact 
on a substantial number of small entities. 5 U.S.C. 603. Tab C of the 
Staff's SNPR Briefing Package, which we summarize in this section, 
assesses the impact of the SNPR on small businesses. Based on staff's 
analysis, the Commission certifies that the proposed rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities.
    Staff assesses that firms affected by the SNPR import or 
domestically manufacture products that fall under numerous North 
American Industry Classification System (NAICS) codes and HTS 
codes.\22\ Using these guidelines, staff estimates that as many as 
43,061 small firms import regulated non-children's consumer products 
and substances annually, and will be required to eFile GCCs, while 
211,148 firms annually import regulated children's products and would 
be required to eFile CPCs.
---------------------------------------------------------------------------

    \22\ The full list of HTS codes can be found in the Appendix to 
Tab D of Staff's SNPR Briefing Package.
---------------------------------------------------------------------------

A. Compliance, Reporting, and Recordkeeping Requirements of the SNPR

    The SNPR would impose a new reporting burden on importers who must 
eFile certificates at the time of entry, or at entry summary, if both 
entry and entry summary are filed together. The SNPR would also impose 
a minor additional recordkeeping burden for GCCs, which is the 
mandatory retention of records for two additional years in most cases, 
from three to five years. To achieve compliance with the SNPR's eFiling 
requirements, small importers of products requiring either a GCC or CPC 
could possibly incur costs from several activities including: (1) the 
costs of inputting and filing certificate information with CBP through 
a PGA Message Set; (2) the one-time conversion costs of updating 
technology; and (3) broker fees.
    Because of the creation of CPSC's Product Registry, CPSC does not 
expect small businesses to need to invest in technology to eFile 
certificates. A small business only needs a laptop with a hard drive 
for storing records and an internet connection to enter certificates 
into the Product Registry. Larger importers and manufacturers who 
import larger volumes of regulated consumer products and substances 
would be more likely to invest in technology to enable batch uploads of 
data into the Product Registry, or to create their own registries. But 
because the SNPR does not require a technology investment, and because 
small importers are unlikely to need to invest in new technology, we do 
not forecast technology costs in this burden analysis.
    The Commission anticipates that 95 percent of importers will choose 
to use the Product Registry, and this estimate holds for small 
importers. When using the Product Registry, the Reference PGA Message 
Set is a shortened data set that only requires a few data elements, 
including the Unique ID for the certificate stored in CPSC's Product 
Registry each time the associated product is imported. Accordingly, if 
importers use the Product Registry and a Reference PGA Message Set at 
the time of entry, 95 percent of importers will bear an additional 20 
second burden per Reference Message Set filed during entry, while five 
percent of importers will bear a one minute burden per Full Message Set 
filed.
    CPSC does not expect the SNPR to change the number of firms that 
chose to use brokers. Brokers typically charge a fee for each entry 
line that is filed. Through discussions with importers and brokers, 
Commission staff understands that this fee is greatly dependent on the 
number of entry lines filed, and the complexity of the PGA Message Set. 
The latter factor is greatly reduced by importers electing to use the 
Product Registry. By using the Product Registry, each time the same 
product is imported the importer can streamline eFiling by supplying 
the Unique ID for the associated product certificate to the broker.
    Tab C of Staff's SNPR Briefing Package explains staff's procedure 
in classifying small businesses using NAICS codes. The Commission 
requests comment on staff's procedure, including methods of obtaining 
more precise estimates of percentages of small businesses belonging to 
a given NAICS, how many small firms covered by the SNPR fall within 
that NAICS, and how many certificates these firms may create.
    Table 1 in Tab C of Staff's SNPR Briefing Package shows an 
estimated 43,061 small businesses that will need to eFile GCCs with CBP 
and keep records for certificates and supporting information. Staff 
estimates that the net cost of the SNPR's additional burdens on small 
suppliers of general use products is $611,089. On average, each small 
business will spend approximately $14 ($611,089/43,061 [ap] $14) on the 
SNPR's new requirements. This can be described as the cost of eFiling 
these certificates, with a small increase in the time cost of 
recordkeeping each certificate.
    Table 2 in Tab C of Staff's SNPR Briefing Package shows that an 
estimated 211,148 small businesses will need to eFile CPCs with CBP. 
The total additional cost to eFile for children's products suppliers is 
$922,934 annually. This means on average, that each small business will 
spend approximately $4 ($922,934/211,148 [ap] $4) annually to comply 
with the SNPR. Note that the five-year recordkeeping requirement for 
children's products is consistent with the existing requirements of 16 
CFR part 1107. Therefore, the additional burden that the SNPR imposes 
on small importers supplying children's products is that of eFiling. 
Except for the potential for

[[Page 85784]]

some small private labelers to need to test and certify privately 
labeled children's products, domestic manufacturers will have no change 
in burden pursuant to the SNPR.
    For the $18 per firm costs (assuming both a $14 cost per firm for 
GCCs and $4 per firm for CPC impacts) to be greater than the one 
percent threshold that indicates a significant burden, a firm's 
revenues would have to be less than $1,800 per year. We seek comment on 
the average annual revenues of small businesses within the impacted 
industries, as well as on alternative industry classifications that we 
should consider when classifying the relevant industry for SBA 
purposes.

B. Alternatives for Reducing the Adverse Impact on Small Businesses

    Instead of the proposals in the SNPR, CPSC considered the 
alternatives of making the eFiling of certificates at entry voluntary 
rather than mandatory, and requiring PDF submissions of certificates 
rather than eFiling certificates.
    Allowing, rather than requiring, certificates for imported products 
to be eFiled at entry would still require certificates to be made 
available for examination upon request, as it is now. Allowing, instead 
of requiring, certificates to be eFiled at entry could reduce the 
burden on small businesses, but it would not enhance the Commission's 
ability to target shipments for examination by using the additional 
certificate data elements collected via eFiling and to verify the 
accuracy of certificates. Noncompliant firms likely would not choose to 
eFile certificates, thwarting CPSC's ability to identify noncompliant 
products using algorithms and decreasing the accuracy and capabilities 
of algorithms that can learn based on eFiled data.
    The alternative of requiring PDF submissions of certificates, to be 
uploaded into CBP's Document Image System, would not enhance the 
Commission's ability to target shipments for examination by using the 
additional certificate data elements collected via eFiling. It is 
cumbersome to extract data from PDF files for targeting purposes, and 
PDF files require a relatively large amount of storage space to 
maintain, particularly compared to isolated data elements.

C. Request for Comment

    Based on staff's analysis, we conclude that the additional burden 
imposed by the SNPR is small when compared to one percent of the 
revenue for small firm typical of its industry. The SNPR does not 
change small firms' statutory obligations to certify that their 
products meet applicable safety standards. The SNPR adds a minor burden 
of an additional two years of recordkeeping for GCCs, and adds a 
reporting burden for importers to eFile certificates with CBP using the 
PGA Message Set. These additional burdens add approximately $1.5 
million in cost to the industry, which is small when compared to the 
respective 43,000 and 211,000 suppliers of non-children's and 
children's products.
    Small businesses that believe they would be affected by the SNPR 
are encouraged to submit comments. The comments should be specific and 
describe the potential impact and its magnitude, and the industry in 
which the firm resides.

VII. Paperwork Reduction Act

    This SNPR contains information collection requirements that are 
subject to public comment and review by the Office of Management and 
Budget (OMB) under the PRA. 44 U.S.C. 3501-3521. The PRA requires an 
agency to publish the following information:
    [ssquf] a title for the collection of information;
    [ssquf] a summary of the collection of information;
    [ssquf] a brief description of the need for the information and the 
proposed use of the information;
    [ssquf] a description of the likely respondents and proposed 
frequency of response to the collection of information;
    [ssquf] an estimate of the burden that will result from the 
collection of information; and
    [ssquf] notice that comments may be submitted to OMB.
    44 U.S.C. 3507(a)(1)(D). The SNPR creates a new collection of 
information for certificates for non-children's products, and would 
expand the existing collection for Third Party Testing of Children's 
Products, OMB Control No. 3041-0159. The Children's Product OMB control 
number would be expanded to include eFiling certificates for imported 
children's products that are subject to a CPSC rule requiring 
certification. Tab D of Staff's SNPR Briefing Package contains a 
detailed burden analysis by CPSC regulation. We summarize that 
information here. In accordance with OMB's requirement, the Commission 
provides the following information:
    Title: (1) Certification of Non-Children's Products; (2) Amendment 
to Third Party Testing of Children's Products, approved previously 
under OMB Control Number 3041-0159.
    Summary, Need, and Use of Information: Sections I and II of this 
preamble, and Tab D of Staff's SNPR Briefing Package, contain this 
information.
    Respondents and Frequency: For products manufactured outside of the 
United States, respondents include importers of consumer products and 
substances subject to a CPSC-enforced regulation. For products 
manufactured within the United States, respondents include 
manufacturers and private labelers of consumer products and substances 
subject to a CPSC-enforced regulation.
    Estimated Burden: CPSC has estimated the respondent burden in hours 
and the estimated labor costs to respondents.
    Estimate of Respondent Burden: Below we categorize and estimate the 
burden created by both the statute and the SNPR for children's and non-
children's regulated products as follows:
    Certificates: The burden associated with the creation of 
certificates (GCCs and CPCs). This can be considered a general 
recordkeeping burden.
    Disclosure: The burden derived from disclosing certificate 
information and from furnishing the certificates to these third parties 
(distributors and retailers). This is considered a third party 
disclosure.
    Recordkeeping: The burden associated with the initial storage and 
routine maintenance of records, including records of the certificates 
and any supporting and testing documentation, for a period of five 
years. This is considered a recordkeeping burden.
    eFiling: The initial burden from electronically filing the 
certificates, using either the CPSC-maintained Product Registry or the 
systems provided by the brokers that support importers' activities, as 
well as the routine burden on importers submitting associated Full or 
Reference PGA Message Sets. This would be considered a reporting 
burden.
    The additional burden imposed specifically by the SNPR includes (1) 
the additional recordkeeping period for GCCs from three to five years 
and (2) eFiling GCC and CPC data for regulated, imported finished 
consumer products and substances.

A. Total Burden for GCCs

    CPSC estimates that there may be 49,364 non-children's products 
firms subject to the SNPR. Staff expects these firms to create 
1,333,952 certificates and spend 111,163 hours on their creation. These 
same firms must keep the records supporting the certificates for a 
period

[[Page 85785]]

of five years. This annual burden comes to 27,791 hours. The firms must 
also furnish each certificate to retailers and distributors of the 
product upon request; thus, we estimate an additional 0.25 hours (15 
minute) burden for third party disclosure. This sums to 333,488 hours.
    Staff estimates the number of responses for eFiling as 18,997,724 
and estimates the eFiling burden as 200,532 hours. The aggregate burden 
associated with the SNPR for non-children's products suppliers is 
672,973 hours and has a total cost of $27,399,039. This number includes 
burden imposed by statute, which the non-children's products suppliers 
would bear in absence of the SNPR. The net burden from the SNPR--
excluding the statutory burden--is 202,755 hours and the net cost is 
$6,828,781. Table 2 shows that importers of general use products 
requiring a GCC bear most of both the statutory burden and the 
additional burden from the eFiling requirement.
    Staff expects that 82 percent of the firms subject to the SNPR will 
be importers with the remaining 18 percent as manufacturers. We 
estimate the statutory burden borne by importers as 536,950 hours (80%) 
and the expected burden to manufacturers as 136,023 hours (20%). The 
net burden from the SNPR is 202,115 hours for importers (99.7%) and 640 
hours for manufacturers (0.3%). Tab D of Staff's SNPR Briefing Package 
explains in more detail the methodology staff used to derive the burden 
estimate, as well as a PRA burden estimate for each regulated product 
that was used to calculate these totals.
---------------------------------------------------------------------------

    \23\ Total compensation for Office and Administrative Support 
Occupation in Goods-producing industries as of March of 2023. U.S. 
Bureau of Labor Statistics, ``Employer Costs for Employee 
Compensation,'' March 2023, Table 4. See https://www.bls.gov/news.release/archives/ecec_06162023.pdf.

                                           Table 2--Total Burden on Non-Children Products Covered by Part 1110
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Frequency                  Response      Burden      Cost per    Total cost
                        Total burden                           Respondents  of response   Responses       time        hours     burden hour   of burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certificates................................................        49,364         27.0    1,333,952       0.0833      111,163       $76.26   $8,477,268
Disclosure..................................................        49,364         27.0    1,333,952       0.2500      333,488        33.68   11,231,879
Recordkeeping...............................................        49,364         27.0    1,333,952       0.0208       27,791        33.68      935,990
eFiling.....................................................        40,665        467.2   18,997,724       0.0106      200,532        33.68    6,753,902
                                                             -------------------------------------------------------------------------------------------
    Total...................................................        49,364        465.9   22,999,581       0.0293      672,973        40.71   27,399,039
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Additional Burden from the Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total...................................................        49,364        384.9   18,997,724       0.0107      202,755   \23\ 33.68    6,828,781
Manufacturers:
    Certificates............................................         8,699         44.2      384,066       0.0833       32,006        76.26    2,440,741
    Disclosure..............................................         8,699         44.2      384,066       0.2500       96,017        33.68    3,233,838
    Recordkeeping...........................................         8,699         44.2      384,066       0.0208        8,001        33.68      269,486
    eFiling.................................................             0          0.0            0       0.0000            0         0.00            0
                                                             -------------------------------------------------------------------------------------------
        Total...............................................         8,699        132.5    1,152,199       0.1181      136,023        43.70    5,944,065
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Additional Burden to Manufacturers
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Total...............................................         8,699          0.0            0       0.0000          640        33.68       21,559
                                                             -------------------------------------------------------------------------------------------
Importers:
    Certificates............................................        40,665         23.4      949,886       0.0833       79,157        76.26    6,036,527
    Disclosure..............................................        40,665         23.4      949,886       0.2500      237,472        33.68    7,998,042
    Recordkeeping...........................................        40,665         23.4      949,886       0.0208       19,789        33.68      666,503
    eFiling.................................................        40,665        467.2   18,997,724       0.0106      200,532        33.68    6,753,902
                                                             -------------------------------------------------------------------------------------------
        Total...............................................        40,665        537.3   21,847,382       0.0246      536,950        39.96   21,454,974
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Additional Burden to Importers
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Total...............................................        40,665        467.2   18,997,724       0.0106      202,115        33.68    6,807,222
--------------------------------------------------------------------------------------------------------------------------------------------------------

B. Total Burden for eFiling CPCs

    Section 14 of the CPSA requires third party testing of children's 
products that are subject to an applicable children's product safety 
rule to ensure compliance with such rule. Based on this testing, 
manufacturers, including importers, are required to certify compliance 
of their products to the applicable standards. The burden associated 
with certificate production, recordkeeping, and disclosure is already 
subject to an OMB control number, 3041-0159, for children's product 
testing, as set forth in 16 CFR parts 1107 and 1109. The SNPR adds a 
certificate eFiling requirement for importers of finished children's 
products and estimates the reporting burden for this requirement.
    Table 3 presents CPSC's estimate that there are 244,000 firms 
producing children's products. Staff estimates that 27,540 imported 
children's products are subject to a children's product safety rule and 
would be annually required to eFile certificates, with an estimated 
eFile burden of 290,710 hours. This number only includes burden imposed 
by the SNPR, so the net burden from the SNPR is also 290,710 hours, and 
the net cost of the SNPR ($9,791,126) equals the total cost.

[[Page 85786]]



                                                 Table 3--eFiling Children's Product Certificates (CPC)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Frequency                  Response      Burden      Cost per    Total cost
                       Total burden                           Respondents   of response   Responses       time        hours     burden hour   of burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
eFiling...................................................         224,000        123.0   27,540,984       0.0106      290,710       $33.68   $9,791,126
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Additional Burden from the Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total.................................................         224,000        123.0   27,540,984       0.0106      290,710        33.68    9,791,126
--------------------------------------------------------------------------------------------------------------------------------------------------------

C. Burden Estimate Breakdowns by Imported and Domestically Manufactured 
Products

    Table 4 provides a summary of the analysis for imported products, 
and Table 5 provides a summary of this analysis for domestically 
manufactured products. Tab D of Staff's SNPR Briefing Package contains 
additional detail on how staff estimated the number of respondents and 
responses.

                                    Table 4--Import Data Analysis by Product
----------------------------------------------------------------------------------------------------------------
                                              Total                      CPC                       GCC
                                   -----------------------------------------------------------------------------
              Product                  Total        Total      Percent of      CPC       Percent of      GCC
                                      respdnts    responses   resp as CPC   responses   resp as GCC   responses
----------------------------------------------------------------------------------------------------------------
Architectural Glazing Materials...          792       11,717            0            0          100       11,717
Artificial Emberizing Materials...           16            5            0            0          100            5
ATVs..............................           41       37,795           25        9,449           75       28,346
Baby Changing Products............        4,027      523,490          100      523,490            0            0
Bassinets and Cradles.............           76        2,299          100        2,299            0            0
Bedside Sleepers..................          230       75,979          100       75,979            0            0
Bicycle Helmets...................          624       16,300           50        8,150           50        8,150
Bicycles..........................          194      125,796           50       62,898           50       62,898
Bunk Beds--Furniture..............        2,076       89,801           75       67,351           25       22,450
Button Batteries..................           57          523            0            0          100          523
Candles with metal-cored wicks....        2,616       27,843            0            0          100       27,843
Carpets and Rugs..................          186      261,374           25       65,344           75      196,031
Carriages and Strollers...........          243        9,030          100        9,030            0            0
CB Antennas.......................          538       12,594            0            0          100       12,594
Cellulose Insulation..............        5,764       46,511            0            0          100       46,511
Children's folding chairs and             1,273       67,489          100       67,489            0            0
 stools...........................
Children's Sleepwear..............          112       66,855          100       66,855            0            0
Cigarette & Multipurpose Lighters.           69        3,908            0            0          100        3,908
Clacker Balls.....................        4,863       10,243          100       10,243            0            0
Clothing Storage Units............        2,992      316,923            0            0          100      316,923
Consumer Patching Compounds.......          864       13,101            0            0          100       13,101
Crib mattresses...................          154        8,294          100        8,294            0            0
Cribs.............................           81       14,206          100       14,206            0            0
Dive Sticks and Other Similar             2,003        4,853          100        4,853            0            0
 Articles.........................
Drywall...........................           68       35,134            0            0          100       35,134
Electrically Operated Toys or             1,012       15,794          100       15,794            0            0
 Articles.........................
Fireworks.........................          132       47,076            0            0          100       47,076
Frame Child Carriers..............            0            0          100            0            0            0
Furniture.........................        1,092    5,402,165            0            0          100    5,402,165
Garage Door Openers...............        3,451       10,533            0            0          100       10,533
Gates and Enclosures..............           87        7,018          100        7,018            0            0
Hand-Held Infant Carriers.........            0            0          100            0            0            0
High Chairs.......................          172       14,990          100       14,990            0            0
Imitation Firearms................          992        3,853            0            0          100        3,853
Infant Bath Seats.................           73          507          100          507            0            0
Infant Bath Tubs..................        1,594        5,929          100        5,929            0            0
Infant Bouncer Seats..............           82        5,224          100        5,224            0            0
Infant Sleep Products.............          739       80,644          100       80,644            0            0
Infant Swings.....................           95        1,388          100        1,388            0            0
Infant Walkers....................           33        3,183          100        3,183            0            0
Lawn Darts........................        2,353        4,704            0            0          100        4,704
Liquid Nicotine Packaging.........          536        2,242            0            0          100        2,242
Magnets...........................          908       34,846            0            0          100       34,846
Matchbooks........................           71          241            0            0          100          241
Mattresses........................          329      167,504           50       83,752           50       83,752
Pacifiers.........................          146        4,166          100        4,166            0            0
Paints............................          812      154,543            0            0          100      154,543
Play Yards........................           71        3,400          100        3,400            0            0
Pool and Spa Drain Covers.........        2,636       33,397            0            0          100       33,397
Portable Bedrails.................        7,605       29,814          100       29,814            0            0
Portable Fuel Containers..........          386        5,974            0            0          100        5,974
Portable Gas Containers...........          386        5,974            0            0          100        5,974
Portable Hook-On Chairs...........          564        5,328            0            0          100        5,328
Power Mowers......................          111       18,865            0            0          100       18,865
Rattles...........................          592        7,939          100        7,939            0            0
Refrigerator Coors................          140       74,190            0            0          100       74,190
Refuse Bins.......................        2,407        2,717            0            0          100        2,717

[[Page 85787]]

 
Sling Carriers....................            0            0          100            0            0            0
Soft Infant and Toddler Carriers..            0            0          100            0            0            0
Special Packaging (PPPA)..........          310    1,410,691            0            0          100    1,410,691
Stationary Activity Centers.......           37        3,093          100        3,093            0            0
Swimming Pool Slides..............          886        4,184            0            0          100        4,184
Toddler Beds......................           76        1,839          100        1,839            0            0
Toys..............................        1,926    1,349,066          100    1,349,066            0            0
Vinyl Plastic Film................          729       33,719           50       16,859           50       16,859
Wearing Apparel...................          220   16,290,891           50    8,145,446           50    8,145,446
----------------------------------------------------------------------------------------------------------------


                             Table 5--Domestic Manufacturer Data by Product Category
----------------------------------------------------------------------------------------------------------------
                  CFR                       Product categories      NAICS           NAICS_Desc          Respdnts
----------------------------------------------------------------------------------------------------------------
16 CFR part 1201......................  Architectural Glazing       327211  Flat Glass Manufacturing.         19
                                         Materials.
16 CFR part 1201......................  Architectural Glazing       321911  Wood Window and Door              48
                                         Materials.                          Manufacturing.
16 CFR part 1201......................  Architectural Glazing       326199  All Other Plastics               139
                                         Materials.                          Product Manufacturing:
                                                                             Doors and door frames,
                                                                             plastics, manufacturing.
16 CFR part 1201......................  Architectural Glazing       327215  Glass Product                     50
                                         Materials.                          Manufacturing Made of
                                                                             Purchased Glass.
16 CFR part 1201......................  Architectural Glazing       332321  Metal Window and Door             45
                                         Materials.                          Manufacturing.
16 CFR part 1305......................  Artificial Emberizing       327999  All Other Miscellaneous            7
                                         Materials.                          Nonmetallic Mineral
                                                                             Product Manufacturing:
                                                                             Asbestos products
                                                                             (except brake shoes and
                                                                             clutches) manufacturing.
16 CFR part 1420......................  ATVs.....................   336999  All other transportation           5
                                                                             equipment manufacturing:
                                                                             All-terrain vehicles
                                                                             (ATVs), wheeled or
                                                                             tracked, manufacturing.
16 CFR part 1203......................  Bicycle Helmets..........   339920  Sporting and athletic             38
                                                                             goods manufacturing.
16 CFR part 1512......................  Bicycles.................   336991  Motorcycle, bicycle, and         125
                                                                             parts manufacturing:
                                                                             Bicycles and parts
                                                                             manufacturing.
16 CFR part 1500.17(a)(13)............  Candles w/Metal Core        339999  All other miscellaneous        1,000
                                         Wicks.                              manufacturing: candle
                                                                             manufacturing.
16 CFR parts 1630 and 1631............  Carpets and Rugs.........   314110  Carpet and rug mills.....        185
16 CFR parts 1630 and 1631............  Carpets and Rugs.........   314999  All other miscellaneous          219
                                                                             textile product mills.
16 CFR part 1204......................  CB Band Base Station        334220  Radio and television              10
                                         Antennas.                           broadcasting and
                                                                             wireless communications
                                                                             equipment manufacturing.
16 CFR part 1209......................  Cellulose Insulation.....   321219  Reconstituted Wood                65
                                                                             Product Manufacturing.
16 CFR part 1210 and 1212.............  Cigarette Lighters.......   339999  All other miscellaneous           29
                                                                             manufacturing: Cigarette
                                                                             lighters (except
                                                                             precious metal)
                                                                             manufacturing.
16 CFR part 1261......................  Clothing Storage Units...   337122  Nonupholstered Wood            2,012
                                                                             Household Furniture
                                                                             Manufacturing.
16 CFR part 1261......................  Clothing Storage Units...   337127  Institutional Furniture          581
                                                                             Manufacturing.
16 CFR part 1507; 16 CFR 1500.17(3)     Fireworks Devices........   325998  All other miscellaneous    .........
 and 1500.17(8).                                                             chemical product and
                                                                             preparation
                                                                             manufacturing: Fireworks
                                                                             manufacturing.
16 CFR parts 1213.....................  Furniture (bunk beds)....   337122  Nonupholstered Wood               50
                                                                             Household Furniture
                                                                             Manufacturing.
16 CFR part 1303......................  Furniture (paint &          337122  Nonupholstered Wood              201
                                         entrapment).                        Household Furniture
                                                                             Manufacturing.
16 CFR part 1303......................  Furniture (paint &          337127  Institutional Furniture           29
                                         entrapment).                        Manufacturing.
16 CFR part 1303......................  Furniture (paint &          337121  Upholstered Household             73
                                         entrapment).                        Furniture Manufacturing.
16 CFR part 1303......................  Furniture (paint &          337211  Wood Office Furniture             15
                                         entrapment).                        Manufacturing.
16 CFR part 1303......................  Furniture (paint &          337212  Custom Architectural              52
                                         entrapment).                        Woodwork and Millwork
                                                                             Manufacturing.
16 CFR part 1303......................  Furniture (paint &          337214  Office Furniture (except           5
                                         entrapment).                        Wood) Manufacturing.
16 CFR part 1211......................  Garage Door Openers......   335999  All Other Miscellaneous            9
                                                                             Electrical Equipment and
                                                                             Component Manufacturing:
                                                                             Garage door openers
                                                                             manufacturing.
16 CFR part 1306......................  Lawn Darts...............   339920  Sporting and Athletic             10
                                                                             Goods Manufacturing.
15 USC sec 1472a......................  Liquid Nicotine Packaging   325411  Medicinal and Botanical          278
                                                                             Manufacturing: Nicotine
                                                                             and derivatives (i.e.,
                                                                             basic chemicals)
                                                                             manufacturing.
16 CFR part 1262......................  Magnets..................   327110  Pottery, Ceramics, and             7
                                                                             Plumbing Fixture
                                                                             Manufacturing--Magnets,
                                                                             permanent, ceramic or
                                                                             ferrite, manufacturing.
16 CFR part 1262......................  Magnets..................   332999  All Other Miscellaneous           18
                                                                             Fabricated Metal Product
                                                                             Manufacturing--Magnets,
                                                                             permanent, metallic,
                                                                             manufacturing.
16 CFR part 1202......................  Matchbooks...............   325998  All other miscellaneous            6
                                                                             chemical product and
                                                                             preparation
                                                                             manufacturing: Matches
                                                                             and matchbook
                                                                             manufacturing.
16 CFR parts 1632 and 1633............  Mattresses, Pads, and       337910  Mattress manufacturing...        314
                                         Sets.
16 CFR parts 1632 and 1633............  Mattresses, Pads, and       337121  Upholstered Household            686
                                         Sets.                               Furniture Manufacturing.
16 CFR part 1303......................  Paints and Coatings......   325510  Paint and coating                100
                                                                             manufacturing.
16 CFR part 1304......................  Patching Compounds.......   327999  All Other Miscellaneous           10
                                                                             Nonmetallic Mineral
                                                                             Product Manufacturing:
                                                                             Asbestos products
                                                                             (except brake shoes and
                                                                             clutches) manufacturing.
16 CFR part 1460......................  Portable gas containers..   326199  All Other Plastics                10
                                                                             Product Manufacturing.
16 CFR part 1700......................  PPPA.....................   324110  Petroleum Refineries:             16
                                                                             Solvents made in
                                                                             petroleum refineries.
16 CFR part 1700......................  PPPA.....................   325180  Other Basic Inorganic             94
                                                                             Chemical Manufacturing--
                                                                             Fuel propellants, solid
                                                                             inorganic, not specified
                                                                             elsewhere by process,
                                                                             manufacturing; Caustic
                                                                             soda (i.e., sodium
                                                                             hydroxide)
                                                                             manufacturing, Potassium
                                                                             hydroxide (i.e., caustic
                                                                             potash) manufacturing.
16 CFR part 1700......................  PPPA.....................   325194  Cyclic Crude,                     13
                                                                             Intermediate, and Gum
                                                                             and Wood Chemical
                                                                             Manufacturing:
                                                                             Turpentine.
16 CFR part 1700......................  PPPA.....................   325199  All Other Basic Organic          156
                                                                             Chemical Manufacturing:
                                                                             Fuel propellants, solid
                                                                             organic, not specified
                                                                             elsewhere by process,
                                                                             manufacturing.
16 CFR part 1700......................  PPPA.....................   325411  Medicinal and Botanical          115
                                                                             Manufacturing: Dietary
                                                                             supplements,
                                                                             uncompounded,
                                                                             manufacturing.

[[Page 85788]]

 
16 CFR part 1700......................  PPPA.....................   325412  Pharmaceutical                   262
                                                                             Preparation
                                                                             Manufacturing.
----------------------------------------------------------------------------------------------------------------

D. Cost to the Federal Government

    The estimated annual cost of the information collection 
requirements to the Federal Government is approximately $1.2 million, 
which includes 2,080 staff hours to manage the eFiling program and $1 
million in contracting costs. This estimate is based on an average 
annual compensation for a mid-level salaried GS-13 employee of $88.45 
per hour. Assuming that approximately 2,080 hours will be required 
annually, this results in an annual labor cost of $183,976 ($88.45 per 
hour x 2,080 hours = $183,976) plus an annual contracting cost of $1 
million in IT development for an annual cost to the government of $1.2 
million. Contracting costs are expected to decrease over time and will 
only be required for ongoing operations and maintenance.

E. Comments

    CPSC has submitted the information collection requirements of this 
rule to OMB for review in accordance with PRA requirements. 44 U.S.C. 
3507(d). CPSC requests that interested parties submit comments 
regarding information collection to the Office of Information and 
Regulatory Affairs, OMB (see the ADDRESSES section at the beginning of 
this NPR).
    Pursuant to 44 U.S.C. 3506(c)(2)(A), the Commission invites 
comments on:
    <bullet> whether the proposed and revised collections of 
information are necessary for the proper performance of CPSC's 
functions, including whether the information will have practical 
utility;
    [ssquf] the accuracy of CPSC's estimate of the burden of the 
proposed collections of information, including the validity of the 
methodology and assumptions used;
    [ssquf] ways to enhance the quality, utility, and clarity of the 
information the Commission proposes to collect;
    [ssquf] ways to reduce the burden of the collection of information 
on respondents, including the use of automated collection techniques, 
when appropriate, and other forms of information technology; and
    [ssquf] the estimated respondent cost other than burden hour cost.

VIII. Environmental Considerations

    The Commission's regulations address whether the agency is required 
to prepare an environmental assessment or an environmental impact 
statement. Under these regulations, certain categories of CPSC actions 
normally have ``little or no potential for affecting the human 
environment,'' and therefore, do not require an environmental 
assessment or an environmental impact statement. 16 CFR 1021.5(c). 
Rules regarding product certification fall within this categorical 
exclusion. 16 CFR 1021.5(c)(2).

IX. Preemption

    Section 26(a) of the CPSA, 15 U.S.C. 2075(a), addresses the 
preemptive effect of CPSC's consumer product safety standards. Part 
1110, however, is a procedural rule, not a consumer product safety 
standard. Therefore, the preemption provision of section 26(a) of the 
CPSA would not apply to a final rule.

X. Request for Comments

    The Commission requests comment on all aspects of the SNPR, 
including specifically the following items:
    <bullet> proposed definition of ``importer'';
    <bullet> whether the proposed requirement in Sec.  1110.9(c) 
regarding the prominence of an electronically available certificate on 
an invoice or shipping container is supported by a valid concern for 
furnishing a certificate;
    <bullet> how do regulated fireworks meet the obligation to test and 
certify now, and how will regulated fireworks meet the eFiling 
requirement in the SNPR if finalized;
    <bullet> eFiling options and solutions for products imported from 
an FTZ;
    <bullet> the proposed effective date of 120 days after publication 
of a final rule in the Federal Register;
    <bullet> analysis and information regarding small business impacts, 
including:
    [cir] whether CPSC can obtain more precise estimates of percentages 
of small businesses belonging to a given NAICS, how many small firms 
covered by the SNPR fall within that NAICS, and how many certificates 
these firms may create; and
    [cir] the average annual revenues of small businesses within the 
impacted industries, as well as alternative industry classifications 
that CPSC should consider when classifying the relevant industry for 
SBA purposes; and
    <bullet> PRA burden estimates.

List of Subjects in 16 CFR Part 1110

    Administrative practice and procedure, Business and industry, 
Certificate, Certification, Children, Component part certificate, 
Consumer protection, Electronic filing, Imports, Labeling, Product 
testing and certification, Reporting and recordkeeping requirements, 
Record retention, Regulated products.

    For the reasons stated in the preamble, the Commission proposes to 
revise 16 CFR part 1110 to read as follows:

PART 1110--CERTIFICATES OF COMPLIANCE

Sec.
1110.1 Purpose and scope.
1110.3 Definitions.
1110.5 Products required to be certified.
1110.7 Who must certify finished products.
1110.9 Certificate language and format.
1110.11 Certificate content.
1110.13 Certificate availability.
1110.15 Legal responsibility for certificate information.
1110.17 Recordkeeping requirements.
1110.19 Component part certificates.

    Authority:  15 U.S.C. 2063, Secs. 3 and 102 of Pub. L. 110-314, 
122 Stat. 3016, 3017 (2008), Pub. L. 112-28 (2011).


Sec.  1110.1   Purpose and scope.

    This part specifies the entities that must issue certificates for 
finished products in accordance with section 14(a) of the Consumer 
Product Safety Act (CPSA), as amended, 15 U.S.C. 2063(a); specifies 
certificate content, form, and availability requirements that must be 
met to satisfy the requirements of section 14 of the CPSA; requires 
importers to file certificates electronically (eFile) with CBP for 
imported finished products that are required to be certified; and 
clarifies which provisions of this part apply to component part 
certificates. This part does not address the type or frequency of 
testing necessary to support a certificate.


Sec.  1110.3   Definitions.

    (a) The definitions of section 3 of the CPSA, 15 U.S.C. 2052, and 
additional definitions in the Consumer Product Safety Improvement Act 
of 2008 (CPSIA), Public Law 110-314, apply to this part.
    (b) Additionally, the following definitions apply for purposes of 
this part:
    Automated Commercial Environment (ACE) means the automated and 
electronic system for processing

[[Page 85789]]

commercial importations that is operated by CBP in accordance with the 
National Customs Automation Program established in Subtitle B of Title 
VI--Customs Modernization, in the North American Free Trade Agreement 
Implementation Act (Pub. L. 103-182, 107 Stat. 2057, 2170, December 8, 
1993) (Customs Modernization Act), or any other CBP-authorized 
electronic data interchange system.
    CBP or Customs means U.S. Customs and Border Protection.
    Certificate or certificate of compliance means a certification that 
the finished products or component parts within the scope of the 
certificate comply with the consumer product safety rules under the 
CPSA, or similar rules, bans, standards, or regulations under any other 
law enforced by the Commission, as set forth on the certificate. 
``Certificate'' and ``certificate of compliance'' generally refer to 
all three types of certificates: General Certificates of Conformity 
(GCC), Children's Product Certificates (CPC), and component part 
certificates.
    Certifier means the party who issues a certificate of compliance.
    Children's Product Certificate (CPC) means a certificate of 
compliance for a finished product issued pursuant to section 14(a)(2) 
of the CPSA, 15 U.S.C. 2063, and part 1107 of this chapter.
    Commission or CPSC means the United States Consumer Product Safety 
Commission.
    Component part means a component part of a consumer product or 
other product or substance regulated by the Commission, as defined in 
Sec.  1109.4(b) of this chapter, that is intended to be used in the 
manufacture or assembly of a finished product, and is not intended for 
sale to, or use by, consumers as a finished product.
    Component part certificate means a certificate of compliance for a 
component part, as defined in this section.
    Consignee means the recipient of the goods being shipped or 
transported and who typically takes ownership of consumer products or 
other products or substances regulated by the Commission once they have 
cleared customs. A consignee includes the ``ultimate consignee,'' who 
is the party in the United States to whom the overseas supplier sold, 
consigned, or delivered the imported merchandise.
    eFiled certificate means an electronic filing of the data elements 
in Sec.  1110.11 in ACE, in the format required in Sec.  1110.13(a).
    Electronic certificate means a set of information available in, and 
accessible by, electronic means that sets forth the information 
required in Sec.  1110.11, in the format described in Sec.  1110.9(c).
    Finished product means a consumer product or other product or 
substance regulated by the Commission that is imported for consumption 
or warehousing or is distributed in commerce. Parts of such products or 
substances, including replacement parts, that are imported for 
consumption or warehousing or are distributed in commerce that are 
packaged, sold, or held for sale to, or use by, consumers are 
considered finished products.
    Finished product certificate means a certificate of compliance for 
a finished product, as defined in this section. There are two types of 
finished product certificates: Children's Product Certificates and 
General Certificates of Conformity.
    Finished product certifier means a party who is required to issue a 
finished product certificate pursuant to Sec.  1110.7.
    General Certificate of Conformity (GCC) means a certificate of 
compliance for a finished product issued pursuant to section 14(a)(1) 
of the CPSA, 15 U.S.C. 2063(a)(1).
    Importer means the importer of record; consignee; or owner, 
purchaser, or party that has a financial interest in the product or 
substance being offered for import and effectively caused the product 
or substance to be imported into the United States. An importer can 
also be a person holding a valid customs broker's license, pursuant to 
19 U.S.C. 1641, when appropriately designated by the owner, purchaser, 
or consignee of the product or substance. For purposes of testing and 
certification, CPSC will not typically consider a consumer purchasing 
or receiving products for personal use or enjoyment to be an importer.
    Importer of Record means the entity listed as the importer of 
record on CBP forms 3461 and 7501.
    Owner or purchaser means any party with a financial interest in the 
imported product or substance, including, but not limited to, the 
actual owner of the goods, the actual purchaser of the goods, a buying 
or selling agent, a person or firm who imports on consignment, or a 
person or firm who imports under loan or lease.
    Product Registry means a database created and maintained by CPSC 
that allows for the electronic entry of data elements required on GCCs 
and CPCs, as provided in Sec.  1110.11. This definition includes any 
CPSC successor system.
    Third party conformity assessment body means a testing laboratory 
whose accreditation has been accepted by the CPSC to conduct 
certification testing on children's products.


Sec.  1110.5   Products required to be certified.

    Finished products subject to a consumer product safety rule under 
the CPSA, or similar rule, ban, standard, or regulation under any other 
law enforced by the Commission, which are imported for consumption or 
warehousing, or are distributed in commerce, must be accompanied by a 
GCC or a CPC, as applicable.


Sec.  1110.7   Who must certify finished products.

    (a) Imports. Except as otherwise provided in a specific rule, ban, 
standard, or regulation enforced by CPSC, for a finished product 
manufactured outside of the United States that must be accompanied by a 
certificate as set forth in Sec.  1110.5, the importer must issue a 
certificate that meets the requirements of this part.
    (b) Domestic products. Except as otherwise provided in a specific 
rule, ban, standard, or regulation enforced by the Commission, for a 
finished product manufactured in the United States that must be 
accompanied by a certificate, as set forth in Sec.  1110.5, the 
manufacturer must issue a certificate that meets the requirements of 
this part. However, if a finished product manufactured in the United 
States is privately labeled, the private labeler must issue a 
certificate that meets the requirements of this part, unless the 
manufacturer issues the certificate.


Sec.  1110.9   Certificate language and format.

    (a) Language. An eFiled certificate must be in the English 
language. All other certificates, including hard copy and electronic 
certificates, must be in the English language and may also contain the 
same content in any other language.
    (b) Format. Certificates for finished products that are 
manufactured outside the United States and offered for importation into 
the United States for consumption or warehousing are required to be 
eFiled using the format required in Sec.  1110.13(a)(1). All other 
certificates must be made available as provided in Sec.  1110.13(b) and 
(c), and may be provided in hard copy or electronically, as set forth 
in (c) of this section.
    (c) Electronic certificates. An electronic certificate meets the 
requirements of Sec.  1110.13(b) and (c) if it is identified 
prominently on the finished product, shipping carton, or invoice by a 
unique identifier and can be accessed via a World Wide Web uniform 
resource locator (URL) or other electronic means, provided that the 
certificate, the URL or other electronic means, and the unique 
identifier are

[[Page 85790]]

accessible, along with access to the electronic certificate itself, to 
the Commission, CBP, distributors, and retailers, on or before the date 
the finished product is distributed in commerce. If the electronic 
certificate is password protected, the password must be provided at the 
same time as the certificate when requested by CPSC or CBP.


Sec.  1110.11   Certificate content.

    (a) Content requirements. Each certificate must:
    (1) Identify the finished product(s) covered by the certificate. 
Certifiers must provide at least one of the following unique 
identifiers: global trade item number (GTIN), model number, registered 
number, serial number, stock keeping number (SKU), universal product 
code (UPC), or alternate identifier, along with a sufficient 
description to match the finished product to the certificate. 
Certifiers may also include other identifiers, such as lot number, 
model style, and model color, that may assist with product 
identification.
    (2) State each consumer product safety rule under the CPSA, or 
similar rule, ban, standard, or regulation under any law enforced by 
the Commission, to which the finished product(s) are being certified. 
Finished product certificates must identify separately all applicable 
rules, bans, standards, or regulations.
    (3) Identify the party certifying compliance of the finished 
product(s), as set forth in Sec.  1110.7, including the party's name, 
street address, city, state or province, country or administrative 
region, electronic mail (email) address, and telephone number.
    (4) Identify and provide contact information (consisting, at a 
minimum, of the individual's name, street address, city, state or 
province, country or administrative region, email address, and 
telephone number) for the individual maintaining the records stated in 
this paragraph. An individual can be a position title, provided that 
this position is always staffed and responsive to CPSC's requests.
    (i) Records of test results on which a GCC is based, and records 
described in Sec. Sec.  1109.5(g) and (j) of this chapter (where 
applicable).
    (ii) Records of test results and other records on which a CPC is 
based, as required by Sec.  1107.26, and Sec.  1109.5(g) and (j) of 
this chapter (where applicable).
    (iii) Records of test results and other records on which a 
component part certificate is based, as required by Sec.  1109.5(g) and 
(j) of this chapter.
    (5) Provide the date (month and year, at a minimum) and place 
(including a manufacturer name, street address, city, state or 
province, country or administrative region, email address, and 
telephone number) where the finished product(s) were manufactured, 
produced, or assembled. For manufacturing runs over a series of days, 
provide the initial date of manufacture (month and year, at a minimum).
    (6) Provide the most recent date and places (including the name of 
each third party conformity assessment body or other party on whose 
testing the certificate depends: name, street address, city, state or 
province, country or administrative region, email address, and 
telephone number) where the finished product(s) were tested for 
compliance with the rule(s), ban(s), standard(s), or regulation(s) 
cited in Sec.  1110.11(a)(4).
    (7) Include the following attestation:
    I hereby certify that the finished product(s) covered by this 
certificate comply with the rules, bans, standards, and regulations 
stated herein, and that the information in this certificate is true and 
accurate to the best of my knowledge, information, and belief. I 
understand and acknowledge that it is a United States federal crime to 
knowingly and willfully make any materially false, fictitious, or 
fraudulent statement, representation, or omission on this certificate.
    (b) Electronic access to records. In addition to identification of 
the custodian of records as described in Sec.  1110.11(a)(6), a 
certificate may include a URL, or other electronic means, which 
provides electronic access to the required underlying records to 
support the certificate as specified in Sec. Sec.  1107.26 and 
1109.5(g), or any other applicable consumer product safety rule, ban, 
standard, or regulation enforced by the Commission.
    (c) Statutory or regulatory testing exclusions: Unless otherwise 
provided by the Commission, if a certifier is claiming a statutory or 
regulatory testing exclusion to an applicable consumer product safety 
rule or similar rule, ban, standard, or regulation, then in addition to 
listing all applicable rules, bans, standards, and regulations as 
required under Sec.  1110.11(a)(2) and in lieu of providing the date 
and place where testing was conducted for that regulation under Sec.  
1110.11(a)(6), a certifier shall list on the certificate the applicable 
testing exclusions.
    (d) Duplicative testing not required. Although certificates must 
list each applicable rule, ban, standard, or regulation separately, 
finished product certifiers are not required to conduct duplicative 
third party testing for any rule that refers to, or incorporates fully, 
another applicable consumer product safety rule or similar rule, ban, 
standard, or regulation under any other law enforced by the Commission.


Sec.  1110.13  Certificate availability.

    (a) Accompanying certificates. A certificate issued by a finished 
product certifier must accompany each finished product or finished 
product shipment required to be certified pursuant to Sec.  1110.5. 
Each certificate must describe only one product.
    (1) In the case of finished products that are manufactured outside 
the United States and are offered for importation into the United 
States for consumption or warehousing, including products offered for 
importation from a Foreign Trade Zone or products under the de minimis 
value (as defined in Sec.  901 of the Trade Facilitation and Trade 
Enforcement Act of 2015 or any successor act), the finished product 
certifier must eFile the GCC or CPC data elements required under Sec.  
1110.11 in ACE at the time of filing the CBP entry, or the time of 
filing the entry and entry summary, if both are filed together, as 
provided in CPSC's PGA Message Set CATAIR Implementation Guide 
(including revisions thereto). In the case of finished products that 
are manufactured outside of the United States and imported as a mail 
shipment, the finished product certifier must enter the GCC or CPC data 
elements required under Sec.  1110.11 into CPSC's Product Registry 
prior to the product or substance arriving in the United States.
    (2) In the case of finished products manufactured in the United 
States, the finished product certifier must issue the required 
certificate on or before the date the finished product is distributed 
in commerce, and make the certificate available for inspection 
immediately, meaning within 24 hours, upon request by CPSC.
    (b) Furnishing certificates. A finished product certifier must 
furnish a required GCC or CPC to each distributor or retailer of the 
finished product.
    (c) Availability. Certifiers must make certificates available for 
inspection immediately, meaning within 24 hours, upon request by CPSC 
or CBP.


Sec.  1110.15  Legal responsibility for certificate information.

    Certifiers may, directly or through another entity, maintain an 
electronic certificate platform, enter the requisite data into the 
Product Registry or into ACE, or certify the product(s) or 
substance(s). The certifier is legally

[[Page 85791]]

responsible for the information in a certificate, including its 
validity, accuracy, completeness, and availability.


Sec.  1110.17  Recordkeeping requirements.

    For CPCs and component part certificates, certifiers must satisfy 
the recordkeeping provisions contained in Sec. Sec.  1107.26, 
1109.5(g), and 1109.5(j) of this chapter, as applicable. For GCCs, 
certifiers must maintain for at least five years from their creation 
the certificate and supporting test records required under this 
chapter.


Sec.  1110.19  Component part certificates.

    Pursuant to part 1109 of this chapter, component part certificates 
are voluntary. Certificates should not be filed in ACE upon importation 
of component parts. Certifiers of component parts must meet the 
requirements in part 1109 of this chapter, and component part 
certificates must meet the form, content, and availability requirements 
described in Sec. Sec.  1110.9, 1110.11, 1110.13(c), 1110.15, and 
1110.17.

Alberta E. Mills,
Secretary, Consumer Product Safety Commission.
[FR Doc. 2023-25911 Filed 12-7-23; 8:45 am]
BILLING CODE 6355-01-P


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