U.S. Consumer Product Safety 

Commission

1

This presentation was prepared by CPSC staff, has not been reviewed or approved by, 

and may not reflect the views of, the Commission.

CPSC Staff Workshop on Electronic Filing of 

Certificates as Included in Proposed Rule on 

Certificates of Compliance

September 18, 2014
For those of you in the room, please mute electronics and phones.

For those of you watching on the web, you can email questions for the speakers to: 

efiling@cpsc.gov.

The transcript for today’s workshop will be added to the docket at: 

www.regulations.gov Docket number: CPSC–2013–0017 

The PowerPoint presentations will also be available at: 

http://www.slideshare.net/USCPSC
U.S. Consumer Product Safety 

Commission

3

This presentation was prepared by CPSC staff, has not been reviewed or 

approved by, and may not reflect the views of, the Commission.

Certificates of Compliance

Section 14 of the CPSA & 16 C.F.R. Part 1110

Jacqueline Campbell, CPSC EXHR
Presentation Overview

 Statutory Requirements

 What is a Certificate, When is It Needed, and Who 

Issues It?

 Content, Form, Availability, and Filing Requirements 

for Certificates

 Regulatory Requirements

 Existing 16 C.F.R. part 1110 Rule

 Proposed Amendments to 16 C.F.R. part 1110

 Electronic Filing of Certificates for Imported Products

4
Statutory Requirements for 

Certificates

5
Section 14(a) of the CPSA

6

• Consumer products must be tested and certified as 

compliant with any applicable consumer product safety rule 

under the CPSA or similar rule, ban, standard, or regulation 

under any other law enforced by the Commission.
Statutory Authority

 Section 14(a)(1) of the CPSA 

 Certification of non-children’s products based on a test of 

each product or a reasonable testing program.

 Section 14(a)(2) of the CPSA 

 Certification of children’s products based on testing 

conducted by a CPSC-accepted third party laboratory.

 Sections 14(a) & (g) of the CPSA 

 Provides certificate content and availability requirements.

 Section 3 of the CPSIA 

 Authority to implement the CPSIA and the amendments 

made by the CPSIA.

7
What Is a Certificate, When Is It 

Needed, and Who Issues It?

8
What Is a Certificate?

9

 A certification that a consumer product or other substance 

regulated by the Commission:

 has been tested, and

 Non-children’s products – a test of each product or a reasonable 

testing program

 Children’s products – testing conducted by a third party conformity 

assessment body (laboratory)

 complies with all applicable safety rules, bans, standards, and 

regulations.
All Certificate Types

10

 General Conformity Certificate (GCC)

 Children’s Product Certificate (CPC) 

 16 C.F.R. part 1107

 Component Part Certificate 

 16 C.F.R. part 1109
Required Certificate Types

11

 General Conformity Certificate (GCC)

 Non-children’s products only

 Based on a test of each product or a reasonable testing program (14(a)(1) of 

the CPSA)

 Must comply with 16 C.F.R. part 1110

 Children’s Product Certificate (CPC)

 Products intended primarily for children 12 years of age and younger

 Based on testing conducted by a CPSC-accepted third party laboratory 

(14(a)(2) of the CPSA)

 Requires periodic and material change testing

 Must comply with 16 C.F.R. part 1110
What Products Require Certificates?

12

 Regulated consumer products.

 A product 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. 

 Imported for consumption or warehousing, or distributed 

in commerce. 

 CPSA defines “distribute in commerce” to mean “to sell in 

commerce, to introduce or deliver for introduction into 

commerce, or to hold for sale or distribution after 

introduction into commerce.” 
When Is a Certificate Not Required?

13

 No product safety rule, standard, or ban applies

 Products subject to a rule under section 15(j) of the CPSA

 Drawstrings on children’s upper outerwear

 Immersion protection on hand held hairdryers

 Products not imported for consumption or warehousing or not 

distributed in commerce

 Foreign Trade Zone

 Samples

 Trade Show Exhibit

 Component parts not for individual sale.
Who Issues a Certificate and When?

14

WHO?

 Manufacturers (including importers) and private 

labelers.

WHEN?

 Before importing products for consumption or 

warehousing or distributing products in commerce.
Statutory Certificate Requirements

15

Content

 14(a) and (g)(1) of the CPSA

 English Language 

 14(g)(2) of the CPSA

Availability

 14(g)(3) of the CPSA

 Electronic Filing of Certificates for Imported 

Products 

 14(g)(4) of the CPSA
Certificate Requirements: Content

16

• Identification of the product(s); 

• List each applicable consumer product safety regulation; 

• Identify; 

• The manufacturer (including importer) or private labeler issuing the 

certificate.

• The third party conformity assessment body on whose testing the 

certificate depends, if applicable.

• Date(s) and place(s); 

• Where the product was manufactured.

• Where the product was tested for compliance with each safety rule.

• Each party’s name, full mailing address, telephone number; and

• Contact information for the individual maintaining records of 

test results.
Certificate Requirements: Language

17

 Legible

All required content in English

May contain the same content in another 

language
Certificate Requirements: Availability

18

Required certificates must:

 accompany the product or shipment of products 

covered by the certificate;

 be furnished to each distributor or retailer of the 

product; and

 be furnished by the issuer to the Commission, upon 

request.
Electronic Filing Requirements

19

 In consultation with CBP, the CPSC, by rule, may 

provide for the electronic filing of certificates up 

to 24 hours before arrival of an imported 

product.

 Issuer must furnish certificates to CBP and to 

CPSC, upon request.
Regulatory Requirements

for Certificates

20
Existing 16 C.F.R. Part 1110 Rule

21
Background on Part 1110

22

 Consumer Product Safety Improvement Act of 2008 (CPSIA) was 

enacted on August 14, 2008.

 The Commission issued a rule on “certificates of compliance,” 16 

C.F.R. part 1110, on November 18, 2008 (73 FR 68328).

 Existing part 1110 rule sets forth certificate requirements, such as:

 limiting the parties who must issue a certificate;

 allowing certificates to be in hard copy or electronic form;

 clarifying requirements for an electronic form of certificate; 

and 

 providing certificate content requirements that follow the 

statute.
Product Testing & Certification Rules

 16 C.F.R. part 1107

 Testing and Labeling Pertaining to Product 

Certification

 16 C.F.R. part 1109

 Component Part Rule

 16 C.F.R. part 1110

 Certificates of Compliance

23
Product Testing & Certification Rules

 16 C.F.R. part 1107: Testing and Labeling Pertaining 

to Product Certification

 Sets forth requirements for certification, 

material change, and periodic testing of 

regulated children’s products.

24
Product Testing & Certification Rules

 16 C.F.R. part 1109: Component Part Rule

 Provides for component part testing and reliance on 

another party’s testing or certification.

 Component Part Certificate 

 voluntary (never required)

 can be used to support a GCC or a CPC

 can be issued by any party as long as it complies with 16 

C.F.R. part 1109

 NPR proposes certificate must meet the form, content, 

and availability requirements described in 16 C.F.R. part 

1110

25
Proposed Amendments to

16 C.F.R. part 1110

26
2013 NPR to Amend Part 1110

27

 On May 13, 2013, the Commission issued a NPR to amend the 

existing 1110 rule (78 FR 28080). 

 The NPR proposed to:

 Clarify certificate requirements in light of the testing and component 

part rules, and 

 Define and use new terms

 Describe how certificates must be integrated and consistent with these new rules

 Implement electronic filing of certificates.

 Section 14(g)(4) of the CPSA allows the Commission, in consultation with the 

Commissioner of Customs, to require that certificates for imported products be 

filed electronically with CBP up to 24 hours before arrival of an imported 

product. 
Who Must Certify Products 

Manufactured Outside of the U.S.?

28

 CPSA requires that certificates be issued by a 

manufacturer, importer, or private labeler (as defined 

by the CPSA).

 Existing 1110 rule requires certificates for imported 

products to be issued by the importer.

 NPR would continue to require certificates for imported 

products to be issued by the importer.

 Except for products delivered directly to a consumer.
Proposed Amendments: 

Certificate Availability

29

 Proposed rule implements “accompany” requirements for imported 

products:

 Importers must file certificates electronically 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.

 For all other purposes of providing a certificate, NPR maintains that 

certificates may be paper or electronic (i.e., URL) for:

 Request by CPSC or CBP; or

 Furnishing to Retailers or Distributors.

 Proposed rule also sought comment on allowing filing of certificates at 

a time earlier than entry (at manifest). 
Electronic Filing of 

Certificates for Imported 

Consumer Products

Proposed 16 C.F.R. 1110.13(a)(1)

30
Why Electronic Filing?

31

 CPSC proposes to receive data elements from certificates into our 

RAM system, which can be used to:

 Expedite clearance;

 Identify high risk cargo for inspection;

 Conduct post-importation enforcement;

 Generate reports to assist with:

 Risk assessment; and

 Setting agency priorities and goals;

 Meet objectives of EO 13659, Streamlining the Export/Import Process 

for America’s Businesses.
Proposed Electronic Filing:

Technology

32

 The NPR mentions two data types:

 PDF file

 Data elements 

 The NPR stated that the Commission prefers data 

elements so that the information can be uploaded and 

searchable in a database. 
Proposed Electronic Filing:

Technology

33

NPR recognized electronic filing of certificates 

would require:

 Implementation in phases

 Software upgrades 

 CBP’s technology requires CBP’s assistance and 

cooperation to implement
Conclusions

 The statute imposes basic certificate requirements.

 The NPR proposes several amendments to the current 

1110 rule, including filing electronic certificates with 

CBP at entry.

 The Commission is considering the process and 

requirements for electronic filing.

34
CPSC Electronic Filing of Certificates 

Workshop

Nancy MacPherson, Director External Relations
Key Concerns

1. The proposed requirement uses assumptions on the number of import 

transactions that significantly underestimate the impact of having to upload 

each certificate 24 hours in advance of import.

2. The proposed rule does not address import processes that utilize a Foreign 

Trade Zone (FTZ).

3. The apparent lack of process flexibility in the proposed rule discounts current 

processes and IT systems that already permit the CBP and CPSC immediate 

access to the certificate data 24 hours in advance of import. 

4. Changes do not “streamline the Export/Import process for America’s 

businesses” as per Executive Order 13659 which is intended to “reduce supply 

chain barriers” and “to modernize and simplify the way agencies interact with 

traders.” They might simply create a bigger data ‘haystack’ in which to find the 

violative ‘needle’. 

 
LEGO® US Import Overview

Dallas DC is a Foreign Trade Zone (FTZ)

 2013 Activity

1,500,000 Avg. # sets packed in the LEGO factory in

 Monterrey, Mexico and shipped to the DC near Dallas 

80-160 Trucks per week between factory and DC

100-150 Trucks per week leaving DC with customer shipments

 (The point of import from the FTZ)

1150 Avg. # unique SKUs shipped per week to customers

1500 Peak # unique SKUs shipped per week in high season
As compared to.....

CBP estimated that ‘‘in 2005, more than 70 to 85 percent of all importers 

imported fewer than 12 shipments.’’ Additionally, “This (referencing cost) 

estimate is based on the assumption that one certificate of conformance 

would be required per shipment.

NPR CPSC-2013-0017 SEC VI, B (Reporting and Recordkeeping)

• LEGO A/S usually processes one import transaction per week in accordance 

with FTZ regulations

• Each entry could include up to 1500 different certificates given 1 per SKU and 

up to 15000 data elements....each week.

Import Flow of Goods and Entry Documents
The current LEGO Certification process 

ensures certificates ‘accompany’ the 

product, are immediately available to 

CBP and can also be accessed 24 hours 

ahead of import without any 

duplicative uploading of data. 
www.LEGO.com/Compliance

Recommendations

1. Provide flexibility to accommodate various supply chain 

models. The proposed rule describes one option, but that 

should not be the only option. If there are alternative means 

for providing CBP access to the certificates they should be 

allowed.

From PR: “CPSC is considering allowing, but not requiring certificates to be filed in 

advance”

 

2. Ensure that FTZ processes, including ‘when’ an item is 

imported, are recognized and integrated into any rule 

changes.
Thank you...
Proposed Joint Presentation of the Retail Industry 

Leaders Assoc. & the National Retail Federation

Before the U.S. Consumer Product Safety Commission

Workshop on Proposed 16 CFR Part 1110 Electronic Filing of 

Certificates of Compliance

September 18, 2014

Kathleen McGuigan, Senior Vice President, Legal & 

Regulatory Affairs, RILA: kathleen.mcguigan@rila.org

Jon Gold, Vice President, Supply Chain and Customs 

Policy, NRF: goldj@nrf.org
CPSC Workshop on 

Electronic Filing of 

Certificates of Compliance

Sean T. Murray, Esq.

Representing the NAFTZ

September 18, 2014
National Association of Foreign-Trade 

Zones

• Represents the interests of U.S. Foreign-Trade Zone 

(FTZ) grantees, operators, and users

• Composed of public and private member representatives 

across the United States

• FTZs handle a significant volume of U.S. international 

trade

– Approximately 12.4% of all imports move through FTZs

– Calendar Year 2013 data:

• Shipments into FTZs totaled $835 billion (including $290.3 bn 

foreign and $545.5 bn domestic status merchandise)

– Warehouse/distribution operations received over $264 billion in 

merchandise

– FTZ production operations received over $571 billion in 

merchandise

• Over $79 billion in exports from FTZs

• 3,050 firms employing 390,000 persons used FTZs
Response to CPSC Certificates of 

Compliance Proposed Rule

• FTZs have unique trade function; also unique procedures

– Used to store/stage merchandise that never enters the U.S. 

Customs Territory

– With specific U.S. FTZ Board approval, used by manufacturers 

to produce goods in the U.S. using foreign components

– Used as “safety valve” for addressing damaged, scrap, 

unknown products

• FTZ users need procedures that do not impose unnecessary 

burden on the FTZ unique operations
Response to CPSC Certificates of 

Compliance Proposed Rule

• We request that FTZs be specially recognized so that the 

CPSC rules 

– Do not apply to merchandise admitted into and held in an FTZ

– Do not apply to component parts of finished products that are 

produced in an FTZ

– That the CBP-recognized FTZ inventory control systems be 

accepted for CPSC purposes

– That CPSC documentation only be required to be filed with the 

CBP Form 7501 Entry Summary for merchandise entered for 

consumption from an FTZ

– That CPSC documentation not be filed for exports from FTZs
Unique FTZs Operations – Weekly 

Entry

• 19 U.S.C. § 1484(i) authorizes FTZ operators/ users to 

file weekly estimated Customs entries for a business 

week’s shipments into the U.S. Customs territory instead 

of one Customs entry per shipment

– FTZs establish a 7-day zone shipping week and obtain CBP 

approval to file an estimated CBP Form 3461 

• NAFTZ believes that the large majority of activated FTZ 

operators and users utilize weekly entry procedures

• Submitting CPSC certificates of compliance at the time of 

entry or at the time of entry summary is problematic 

under Weekly Entry 

– The CBP Form 3461 for Weekly Entry is just an estimate used 

for purposes of securing a CBP release to enter merchandise 

over the upcoming 7-day zone week; it is not related to actual 

shipments or merchandise from the FTZ
Unique FTZs Operations – Inventory 

Control and Recordkeeping

• FTZ companies can choose to manage their 

inventory for purposes of reporting to CBP using 

either a specific identity (lot) methodology or a 

unique identifier number (UIN) (record identity) 

methodology

– Many FTZ companies ship commercially 

interchangeable merchandise that is managed by a 

UIN methodology and reported on a FIFO basis, not on 

the actual country of manufacture of the physical 

merchandise in the particular shipment

– Track using inventory control and recordkeeping 

system (ICRS)

– Use of inventory control methodology and Weekly 

Entry poses challenge to tying CPSC certificates of 

compliance to physical shipments
Unique FTZs Operations – Scrap, 

Waste, Repair, Reconditioning

• CPSC should continue to recognize FTZs as a place 

to bring merchandise into compliance before 

Customs entry
General Comments

• Filing CPSC Certificates of Compliance at entry will 

place a burden on industry

– Uploading process would be a significant burden to many 

importers

– Estimated cost burden for importers required to file 

certificates of compliance is significantly undervalued

– Need to keep business-proprietary information private

PLF/PP/113243
CPSC

September 18, 2014
56

Role of the Customs Broker

• Trade Facilitator

• No financial interest in the imported goods

• Definition of Importer (party whose actions caused the 

goods to be imported) versus Importer of Record

• Identification of shipments requiring CPSC Reporting 

(HTS# flags)

─Prioritize HTS # requirements, e.g. High Priority assigned 

to child safety seats and data required at entry release

─Low(er) Priority goods – fewer data elements and possible 

post entry reporting 
57

Reporting Challenges

• Amount of and availability of data to be reported

• Cost to Broker, Carrier and Importers including small & 

medium sized enterprises and individuals:

─ Cargo Holds – significant increase

─ Demurrage, CES warehouse costs

─ Cargo Abandonment – product destruction costs

─ Cost to report additional data
58

Reporting Challenges

• Cost estimate for UPS Express shipments for 1 year –

significant impact to the importing community

─ Held shipments would overwhelm existing storage capacity 

(estimated impact 75% of current shipments)

─ Large staffing increases to handle held package volume

• Additional document requirements - brokerage

• US Consumer is impacted through added costs to ship 

and shipping delays 
59

Opportunities

• Transaction by Transaction Based Program 

─Implement a de minimis rule for products subject to 

compliance certificates

─Provide relief in reporting requirements for low priority 

merchandise, personal shipments (not entering the 

commerce of the USA)

─Opportunity to develop a Trusted or Known Importer Program

─Blanket Certificates of Compliance (COC)

─Certificates of Compliance issued by foreign manufacturer
September 18, 2014 | Bethesda, Maryland

CPSC Certificates of Compliance Section 1110 Rule 

Workshop

Presented by: 

Alan P. Kaufman

Senior Vice-President, Technical Affairs
CPSC Certificates of Compliance Workshop| September 18, 2014 61

Toy Industry Association (TIA)

 Trade association for North American-based manufacturers, importers, 

licensors and toy retailers (regular members)

 Associate members include inventors, designers, testing labs

 Formed in 1916

 Long History of Dedication to Child Safety

 Over 750 members

 Members represent approx 85% of the U.S. market
CPSC Certificates of Compliance Workshop| September 18, 2014 62

Toy Industry Association

Toy Companies, Licensors, Inventors and Designers, Manufacturers Reps, Retailers
CPSC Certificates of Compliance Workshop| September 18, 2014 63

A Snapshot of the U.S. Toy Industry

Average price of a toy is less than US$9.00

US$22+ Billion in direct toy sales (2013)

An estimated 3 Billion+ units sold each year

Estimated 512,775 FTE toy industry jobs in the United States

Total annual economic impact of US$69 Billion
CPSC Certificates of Compliance Workshop| September 18, 2014 64

Stakeholder’s Current Certificate and Import 

Procedures

 Current 1110 Rule/Toy Importer practices

– Original 1110 rule allowed flexibility in requirements for 

certificates of conformity 

• Each importer developed system best suited to their operations 

and supply chains 

• No issues have been raised by CPSC to date with current 

systems companies have in place 

• Current systems adequately meet needs of CPSC and importers; 

importers have adapted to current level of administrative 

burden 
CPSC Certificates of Compliance Workshop| September 18, 2014 65

Stakeholder’s Current Certificate and Import 

Procedures (cont.)

 Issues with proposed changes to the 1110 rule: 

– No evidence that proposed changes would improve safety 

– Would add significant costs for industry 

– Current CPSC targeting methodology adequately identifies higherrisk imports 

– Port staffing and expertise is current limiting factor, not inability to 

target 

– No evidence that electronic submission of CoCs would improve 

targeting efficiency or safety of imported product 
CPSC Certificates of Compliance Workshop| September 18, 2014 66

Stakeholder’s Current Certificate and Import 

Procedures (cont.)

 Benefits of current 1110 Rule “On Demand” Certificate System

– Allows for certificates to be produced on request to either CPSC or 

CBP no later than 24 hours after request 

– This meets needs of CPSC and CBP while minimizing importer 

burden 

– Due to varying supply chain management systems, requiring a 

“one-size-fits-all” system of filing at entry is not workable for the 

industry at large 
CPSC Certificates of Compliance Workshop| September 18, 2014 67

Stakeholders’ Anticipated Challenges in Meeting 

an Electronic Filing Requirement

 Costly Changes to Current Requirements-Underestimated by CPSC

– Requiring certificates to be filed at entry will be extremely costly 

for the toy industry

• Linking certificates to cargo containers will require costly 

database reconfigurations for companies 

• Consolidated freight will present special challenges-possibility 

of multiple importers for same container 

• Systems that have worked well since 2008 will need to be 

totally revamped under the proposed rule, with no anticipated 

advancement in safety 
CPSC Certificates of Compliance Workshop| September 18, 2014 68

Stakeholders’ Anticipated Challenges in Meeting 

an Electronic Filing Requirement (cont.)

 CPSC’s Regulatory Flexibility Act (RFA) analysis contemplates “typical” 

shipping systems which are anything but typical

– Dramatically underestimates the number of shipments and 

certificates companies are responsible for maintaining 

– Ignores the extreme seasonality of toy and consumer product 

imports, with a majority occurring in the last calendar quarter of 

the year 

– RFA estimate is that importers ship fewer than 12 shipments 

annually, but this low figure is applicable to only the smallest toy 

importers; several TIA members import more than 12 shipments 

per day. 
CPSC Certificates of Compliance Workshop| September 18, 2014 69

Stakeholders’ Anticipated Challenges in Meeting 

an Electronic Filing Requirement (cont.)

– Consolidated cargo co-loads product from multiple importers; this 

will further complicate certificate submission, as release of all 

cargo is dependent upon all importers timely submitting 

certificates 

– Regardless of the number of shipments, each container may 

contain many different products requiring potentially hundreds ( 

considering component part certificates) of different certificates be 

submitted at entry 

– This means that the RFA estimate will need to be revised 

exponentially upward, and thus the costs associated with filing 

entries will likewise increase many-fold 
CPSC Certificates of Compliance Workshop| September 18, 2014 70

Stakeholders’ Anticipated Challenges in Meeting 

an Electronic Filing Requirement (cont.)

 Methods of Importation Vary 

– The proposed rule does not contemplate costs and challenges 

associated with imports coming across our borders by truck or rail, 

rather than on cargo ships • Trailers may be filled with many 

different product lines at a factory and placed on trucks that leave 

for import when full 

• Trailers could contain any different number of products and 

each would require a certificate (or multiple certificates) to be 

filed 

• Multiple trucks with multiple products are shipped every day 

using this method; this will potentially cause a logistical 

nightmare entering certificates of specific products in each 

truck into CBP’s system 
CPSC Certificates of Compliance Workshop| September 18, 2014 71

Stakeholders’ Anticipated Challenges in Meeting 

an Electronic Filing Requirement (cont.)

 CBP is Not Yet Able to Handle the Influx of Data Proposed in Rule 

– As stated in the proposed rule, CBP’s systems do not yet have the 

capability to handle all CPC’s to be filed at entry 

– It is premature for CPSC to require such a mandate when the 

agency charged with controlling the data portal is not ready for 

such information to be filed, and may not be for some time (if ever) 

– TIA urges CPSC to develop a multi-stakeholder group that includes 

industry, CBP, CPSC, import specialists and other interested parties 

to guide the agency on this regulation and others 
CPSC Certificates of Compliance Workshop| September 18, 2014 72

Issues to be resolved from CBP’s DIS and PGA 

Message Set Tests in ACE

 Does CBP have the bandwidth to handle the volume of data that will 

be generated by supplying CPC’s and GCC’s at entry, especially if 

importers only have the capability to submit PDF files which often can 

be large? 

 When will CBP’s ACE system be ready to handle such data? 

 What is the timeline for implementation of the “single-window” 

system contemplated in EO 13659? 
CPSC Certificates of Compliance Workshop| September 18, 2014 73

CPSC’s RAM Pilot 

 TIA is supportive of the RAM program and urges the CPSC to expand 

the program beyond the pilot program 

 What criteria are CPSC using to target shipments for inspection?

– The toy industry is happy to provide any information to the agency 

that will lead to more targeted inspection 

• Industry is concerned about sharing confidential business 

information with CPSC in a manner (e.g. unsecured website) 

that could jeopardize relationships of importers with their 

supply chains, especially if safety benefit is marginal 
CPSC Certificates of Compliance Workshop| September 18, 2014 74

Thank You!

 Questions?

Al Kaufman

(646) 520-4868

akaufman@toyassociation.org
www.anderinger.com

© 2013 A.N. Deringer, Inc.

Heritage of Trust Since 1919

CPSC - ITDS

• Who should be responsible for filing the certificate?

• Definition of Importer

• Exclusion of Customs Brokers

• How and when must certificates be made available? 

• Time of submission and format

• ITDS/PGA message set/DIS

• HTS# Flags

• Supply Chain

• Northern Border vs. AV shipments

• Wait times
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe-Brussels LLP, both limited liability partnerships established in Illinois USA; 

Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown 

JSM, a Hong Kong partnership and its associated legal practices in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. Mayer Brown Consulting (Singapore) Pte. Ltd and its subsidiary, which are affiliated with Mayer Brown, provide 

customs and trade advisory and consultancy services, not legal services. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

Electronic Filing of Certificates of 

Compliance

Presentation of the Bicycle Product Suppliers Association

At the CPSC Workshop

Erika Z. Jones

ejones@mayerbrown.com

September 18, 2014

CPSC Docket 2013-0017
Bicycle Product Suppliers Association

• BPSA is an association of over 70 manufacturers, 

importers and suppliers of bicycles, parts, accessories and 

services who serve the specialty bicycle retailer.

• BPSA members are interested in this proposed rule 

because they manufacture, import and sell three 

categories of regulated products required to have COCs:

– Bicycles

– Bicycle Helmets

– Clothing

• In addition, BPSA is interested because the proposal 

suggested possible expansion to replacement parts. 
Summary of BPSA Position on the Proposal to Require 

Electronic Filing of COCs

• The CPSC has underestimated the costs of compliance 

with the proposal.

• The proposed tracking requirements would be difficult to 

manage.

• Mandatory electronic filing is premature.

– Current CBP capabilities require manual uploading of PDFs of 

each certificate into the automated system.

– This is labor-intensive and introduces potential for error.

– And, it is unclear if CBP’s system will accept PDFs of CPSC GCCs.

• Practicability problems increase significantly if 

replacement parts are included.
Costs of Compliance Have Been Significantly 

Underestimated

• CPSC estimated 1,900 bicycle models sold annually, based 

on an extrapolation of its estimate of children’s bike 

models.

• However, BPSA estimates 7,170 bicycle models are being 

sold in 2014 through the independent distributor (IBD) 

channel (this has increased since 2013).

– Many more models are sold through mass market channels.

• If a COC is issued only once a year for these models, using 

CPSC’s time and labor estimates, the annual incremental 

cost for IBD bicycles alone exceeds $450,000 – and far 

more when mass market bicycles, helmets and clothing 

are included.
Cost of Compliance, Continued

• And, BPSA respectfully submits that CPSC’s time and labor 

estimates are too low.

• Many bicycle models receive new COCs more than once 

annually due to changes in components or other reasons.

• The CPSC’s estimate does not take into account the 

substantially increased manual labor required to upload 

the certificates to CBP’s website under the current system 

design.
The Proposed Tracking Requirements Would Be 

Difficult to Manage

• CPSC proposed to require (among other things) that the 

GCC identify the scope of finished products for which the 

GCC applies, such as by start date, start and end date, lot 

number, starting serial number or serial number range or 

other means.

• This appears to go far beyond the existing requirement to 

identify the month and year of manufacture.

• This proposal is complicated further if extended to the 

hundreds of thousands of models of components and 

aftermarket parts, which are rarely serialized or date 

coded now. 

• The bicycle industry supply chain is not equipped for this. 
Mandatory Electronic Filing is Premature

• It is BPSA’s understanding that CBP’s “ACE” system is not 

equipped to accept the data elements from CPSC’s 1110 

rule at this time.

• Thus, the only process for filing electronic certificates 

would apparently be a labor-intensive, manual upload of 

PDFs of each certificate.

• It is not clear that CBP will even accept PDF attachments.

• This imposes great costs and introduces potential for 

human error, with no commensurate improvement in 

consumer product safety.
Conclusion

• CPSC should not require electronic filing of GCCs with CBP.

• To BPSA’s knowledge, CBP’s system is not yet ready to 

accept true electronic filings of GCCs, and would instead 

require labor-intensive manual uploads.

• The current system of making GCC’s available on request 

is working well.

• The additional costs of mandatory electronic filing have 

not been justified, nor is there any evidence that such a 

requirement will improve safety.
CPSC WORKSHOP ON 

RULE 1110

 SEPTEMBER 18, 2014
MEMBERS

EXPRESS ASSOCIATION OF AMERICA
RESOURCES

• Over 1.2 Million Employees

• $200 Billion in Revenues Annually

• 30 Million Shipments Delivered Daily

• Over 220 Countries and Territories Served

EXPRESS ASSOCIATION OF AMERICA
INTEGRATED END-TO-END PROCESS

Image Capture at 

Origin (Shipper 

documents) Manifest Creation

Advanced 

Manifest Review

Downloads to: 

AMS/ATS

Clearance Site

Broker 

Entry Prep & 

Submission

Selected

Held

Released

Domestic 

Network

Caged

- Indicates Physical Package Scan

Customer

Location

Origin 

Station Export Import Domestic

Station 

Operations

POD

Scanning at Arrival

Very “tight” cycle with demanding deadlines –

entire process complete in 24 hours

Shipment creation 

( AWB / 

Automation)

ACAS
RULE 1110 – KEY ISSUES

• Trade Act 2002 – party with the best information on the 

shipment should be responsible for providing it

• For product safety issues, party with best information 

is the importer, owner of goods

• Importer of record is a nominal consignee, a convenience 

for completing the financial aspects of the transaction

• For products sold online, seller is responsible party

• Brokers cannot certify if product is in compliance 

• Importers do not want carriers representing them on 

safety issues 

EXPRESS ASSOCIATION OF AMERICA
OPTIMUM SOLUTION

• CPSC provide list of products requiring certificate

• Submit certificates electronically

• When importer obtains certificate, load it into Document 

Imaging System (ITDS)

• Provide certificate post-release for otherwise compliant 

shipments

• Continue to provide certificate on demand, not with every 

shipment

• If IOR has to hold goods pending receipt of certificate, costs 

and time delays increase – potentially hundreds of items

EXPRESS ASSOCIATION OF AMERICA
LONGER TERM

• CPSIA = CPSC has trade facilitation mission

• Private sector cannot carry out enforcement actions

• Establish ongoing dialogue with trade to address issues and 

find best solutions 

• Leverage relationship with CBP to create Working Group 

under COAC auspices

• Identify information CPSC really needs – improve risk 

targeting 

• Executive Order on ITDS – Government needs common 

approach to risk management

• Identify trusted traders and provide meaningful benefits

EXPRESS ASSOCIATION OF AMERICA
QUESTIONS?

Michael C. Mullen

Executive Director

Tel: 703 759-0369

Michael.mullen@expressamerica.org

EXPRESS ASSOCIATION OF AMERICA