`[Federal Register Volume 90, Number 5 (Wednesday, January 8, 2025)]
[Rules and Regulations]
[Pages 1800-1845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30826]



[[Page 1799]]

Vol. 90

Wednesday,

No. 5

January 8, 2025

Part V





Consumer Product Safety Commission





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16 CFR Part 1110





Certificates of Compliance; Final Rule

  Federal Register / Vol. 90 , No. 5 / Wednesday, January 8, 2025 / 
Rules and Regulations  

[[Page 1800]]


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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: Final rule.

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SUMMARY: In consultation with U.S. Customs and Border Protection (CBP), 
the U.S. Consumer Product Safety Commission (Commission or CPSC) issues 
this final rule (the Final Rule) to revise the agency's regulation for 
Certificates of Compliance (certificates). The Final Rule aligns CPSC's 
current certificates rule with other CPSC rules on testing and 
certification, and implements, for importation of products and 
substances regulated by CPSC, electronic filing of certificates 
(eFiling) with CBP.

DATES: For all CPSC regulated consumer products and substances subject 
to the Final Rule and required to be certified, except for products and 
substances imported into a foreign trade zone (FTZ) and subsequently 
entered for consumption or warehousing, the Final Rule is effective on 
July 8, 2026. For CPSC regulated products and substances entered from 
an FTZ for consumption or warehousing, the Final Rule is effective on 
January 8, 2027.

FOR FURTHER INFORMATION CONTACT: Kat Rickerson, eFiling Program 
Specialist, U.S. Consumer Product Safety Commission, 4330 East-West 
Highway, Bethesda, MD 20814; telephone 240-429-4257; email: 
[email protected].

SUPPLEMENTARY INFORMATION: The Commission is issuing a final rule to 
revise the requirements for certificates of compliance (certificates) 
(the Final Rule) in 16 CFR part 1110 (part 1110 or the 1110 rule). The 
Final Rule applies to importers, domestic manufacturers, and private 
labelers who are required to issue certificates for consumer products 
and substances \1\ regulated by CPSC that are imported for consumption 
or warehousing into the United States or are distributed in commerce in 
the United States. The Commission promulgated the existing part 1110 
for certificates in 2008. The existing rule tracks the statutory 
requirements for certificates in section 14 of the Consumer Product 
Safety Act (CPSA), designates importers as the certifier for imported 
products and manufacturers as the certifier for domestically 
manufactured products, and allows for ``electronic'' certificates to 
satisfy the requirement that a certificate ``accompany'' the product or 
shipment of products, meaning a URL to access the certificate or a PDF 
file. 73 FR 68328 (Nov. 18, 2008); 15 U.S.C. 2063(a), (g).
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    \1\ Section 14(a) of the CPSA requires 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)-(12); 15 U.S.C. 2063(a)(1). In this Final Rule, all 
consumer products and substances subject to a CPSC rule, ban, 
standard, or regulation required to be certified under section 14(a) 
of the CPSA are referred to as ``consumer products'' or 
``products.''
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    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). 78 FR 28080 (May 13, 2013) (2013 NPR). Consistent with section 
222 of the Consumer Product Safety Improvement Act of 2008 (CPSIA), 
which requires the Commission develop a Risk Assessment Methodology 
(RAM) to identify imported products likely to include consumer products 
in violation of section 17(a) of the Consumer Product Safety Act (15 
U.S.C. 2066(a)) or other import provisions enforced by the Commission, 
for imported consumer products, the 2013 NPR also proposed to require 
eFiling of certificates 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.\2\ 15 U.S.C. 2063(g)(4).
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    \2\ CBP regulations define ``entry'' as the documentation or 
data required to secure the release of imported merchandise from CBP 
custody, or the act of filing that documentation. See 19 CFR 
141.0a(a). CBP regulations define an ``entry summary'' as any other 
documentation or data necessary for CBP to assess duties, collect 
statistics on imported merchandise, and determine whether other 
requirements of law or regulation have been met. See 19 CFR 
141.0a(b). An entry can be made as either a 2-Step or 1-Step 
process. As a 2-Step process, an entry is filed initially and an 
entry summary is filed within 10 days of entry filing. As a 1-Step 
process, an entry summary is filed which serves as both the entry 
and entry summary filing. See e.g., 19 CFR 141.68(b). Consequently, 
using the term ``entry'' encompasses both processes, irrespective of 
whether the entry/CBP Form 3461 is filed for a 2-Step or a 1-Step 
entry process where the entry summary/CBP Form 7501 serves as the 
entry.
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    Currently, CPSC collects certificates only after staff identifies a 
shipment for examination; certificate data are not generally collected 
and therefore cannot be used effectively to target shipments for 
examination. The purpose of eFiling is to allow CPSC to use data from a 
certificate to assess the health and safety risk of consumer products 
when they are being imported into the United States, and to better 
focus CPSC's resources for examinations and holds at the ports on 
products that are more likely to be non-complaint, while reducing 
inspection delays for compliant products. The RAM processes data, 
including entry data and soon certificate data as well, using 
algorithms to increase or decrease RAM risk scores for each product 
shipment. Risk scores assist port staff in their assessment of incoming 
shipments and in interdicting non-compliant consumer products. Using 
certificate data for more precise targeting will maximize examination 
efficiency for stakeholders and staff; help CPSC to keep hazardous, 
violative products out of consumer's hands; and reduce burden on 
industry by reducing inspection delays for compliant products.
    Since 2013, the Commission has undertaken a series of projects to 
advance implementation of an eFiling requirement, including conducting 
an eFiling Alpha Pilot, a Certificate Study, and an eFiling Beta Pilot. 
In December 2020, the Commission approved a multi-year plan to 
implement an eFiling program at CPSC.\3\ Moreover, since 2013, CBP has 
completed development and implementation of the Automated Commercial 
Environment (ACE), which is the system through which the U.S. 
government has implemented the ``single window,'' the primary system 
for processing trade-related import and export data required by 
government agencies. The transition away from paper-based procedures 
results in faster, more streamlined processes for both government and 
industry. Specifically, CBP developed the Partner Government Agency 
(PGA) Message Set as a way for U.S. government agencies to 
electronically collect additional import-related data. The eFiling 
Alpha and Beta Pilots were conducted in conjunction with CBP and tested 
use of CPSC's PGA Message Sets.
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    \3\ The 2020 staff briefing package to implement an eFiling 
program at CPSC is available at: https://www.cpsc.gov/s3fs-public/CPSC-Plan-to-Create-an-eFiling-Program-for-Imported-Consumer-Products.pdf. 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.
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    On December 8, 2023, the Commission published a supplemental notice 
of proposed rulemaking (SNPR) proposing to revise part 1110 to, among 
other things: revise terminology to incorporate concepts that had been 
introduced in the 1107 and 1109 rules but not yet included in part 
1110; broaden the definition of ``importer'' in part 1110 to address 
commenters'

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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 consumer products regulated by CPSC. 88 
FR 85760 (SNPR).
    The Commission received 47 comments on the SNPR, addressed in 
section IV of this preamble, and is now finalizing the rule to revise 
part 1110, with clarifications and modifications in response to 
commenters' concerns.4 5 The Final Rule specifies the 
entities that must issue certificates for finished products, including 
domestically manufactured and imported products, in accordance with 
section 14(a) of the CPSA, as amended, 15 U.S.C. 2063(a); specifies 
certificate content, form, and availability requirements in section 14 
of the CPSA; requires importers to eFile certificate data with CBP for 
imported finished products that must be certified; and clarifies which 
provisions of part 1110 apply to voluntary component part certificates.
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    \4\ On December 18, 2024, the Commission voted (3-0-2) to 
publish the Final Rule, with all five Commissioners voting to 
approve the rule; and a majority voting to approve the rule with an 
amendment extending the general implementation date from 12 months 
to 18 months. All Commissioners issued a statement in connection 
with their vote. The Record of Commission Action and Commissioner 
statements are available at: https://www.cpsc.gov/s3fs-public/RCA-Final-Rule-to-Implement-eFiling-for-Certificates-of-Compliance.pdf?VersionId=JN7iuAdHGzooHBnXpuU7xZB4aX4Dkada.
    \5\ The information in this Final Rule is also based on Staff's 
November 15, 2024 Memorandum: Draft Final Rule to Revise 16 CFR part 
1110 for Certificates of Compliance and to Implement eFiling of 
Certificates for Regulated, Imported Consumer Products (Staff's 
Final Rule Memo).
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I. Statutory Authority

    Section 102 of the Consumer Product Safety Improvement Act (CPSIA) 
amended section 14(a) of the CPSA to expand requirements for 
certificates of compliance. 15 U.S.C. 2063(a). As amended, section 
14(a) of the CPSA requires that manufacturers 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)-(12); 15 U.S.C. 2063(a)(1). The CPSA defines the 
term ``manufacturer'' as ``any person who manufactures or imports a 
consumer product.'' 15 U.S.C. 2052(a)(11). Thus, certificates must be 
issued by a manufacturer, importer, or private labeler. When a product 
has more than one manufacturer, including an importer, or private 
labeler, the Commission may by rule designate one or more of such 
entities as the certifier and exempt the others. 15 U.S.C. 2063(a)(4).
    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); 16 
CFR part 1107. 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) requires that each certificate must 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) 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, as outlined in sections 14(a) and (g) of the CPSA, 
the Commission has general authority to implement testing and 
certification requirements 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 on Certificates and eFiling

    Section II of the SNPR provided a detailed background on the 
existing 1110 rule, the 2013 NPR to revise the 1110 rule, CPSC's risk 
assessment and targeting efforts for imported consumer products, and 
CPSC's eFiling-related projects since the 2013 NPR. 88 FR 85760, 85761-
63. In this section of the preamble, we summarize the same information 
and additionally describe the 2023 SNPR.

A. The 1110 Rule

    As stated in section I of this preamble, 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). The existing 1110 rule tracks the 
statutory requirements in section 14, allows for certificates in paper, 
electronic (URL), and PDF formats, and states that this initial rule is 
``streamlined, at least in its initial phase.'' 73 FR 68328 (Nov. 18, 
2008). The existing rule was not expected to be permanent. As the 
Commission explained when adopting the rule, ``with time CPSIA's 
expanded certification requirements will become more routine, and 
[CPSC] then would consider whether this rule needs to be revised based 
on actual experience.'' 73 FR 68328. The existing 1110 rule does not 
implement the authority in section 14(g)(4) of the CPSA to require 
eFiling of certificates for imported products. 15 U.S.C. 2063(g)(4).

B. The 2013 Notice of Proposed Rulemaking

    In 2011, as required by section 222 of the CPSIA, CPSC launched a 
pilot targeting system to test the effectiveness of CPSC's RAM. The 
purpose of the RAM is to support identification and interception of 
shipments containing potentially hazardous products. The pilot RAM 
system used a rules-based approach and aggregate-scoring models to 
highlight potential risks, patterns, and targets. 15 U.S.C. 2066 Note. 
By 2012, staff had worked to refine the RAM and had begun to grapple 
with the rise of internet-based companies selling

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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.\6\ CPSC received over 500 comments from more than 70 
commenters on the 2013 NPR.
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    \6\ 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 existing part 1110 rule 
published in 2008.
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C. CPSC's Risk Assessment and Targeting Efforts for Imported Consumer 
Products

    In 2017, CPSC transitioned to the RAM 2.0 system, which assesses 
more data within CPSC's jurisdiction than the pilot RAM and uses 
analytic and performance reports to aid staff in modifying and fine-
tuning risk assessment and targeting rules to select shipments for 
examination. CPSC's RAM currently receives an electronic feed of import 
entry data collected by CBP.\7\ The RAM is optimized to ingest CBP's 
data and uses algorithms to identify potentially noncompliant consumer 
product shipments for CPSC's inspection. However, the data ingested by 
the RAM are collected by CBP for its enforcement and tariff purposes, 
which do not always align with CPSC's risk assessment purposes. 
Moreover, CPSC's current import enforcement methodology is labor-
intensive and lacks an efficient means of using product-specific data 
to identify potentially non-compliant products.
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    \7\ Currently, CPSC's RAM system is limited to data collected 
and provided by CBP and does not contain CPSC-specific information 
that would help enhance risk assessment. eFiling certificate data 
for imported consumer products will allow the RAM to use this data 
to further improve CPSC's ability to target noncompliant consumer 
products for examination at the ports.
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    Currently, CPSC collects certificates only after staff identifies a 
shipment for examination; certificate data are not generally collected 
and therefore cannot be used to target shipments for examination. CPSC 
port staff identifies shipments for examination, requesting that CBP 
place a shipment on hold and transport the goods to an examination 
station for CPSC inspection. An examination hold creates a delay that 
costs CPSC and businesses time and money; thus, importers and CPSC have 
a common interest in reducing examinations of compliant products and 
focusing instead on examinations of products that are likely to be 
violative. Using certificate data for more precise targeting will 
maximize examination efficiency for stakeholders and staff; keep 
hazardous, violative products out of consumer's hands; and reduce 
burden by not delaying compliant products 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 accorded a duty exemption under 19 U.S.C. 
1321(a)(2)(C), which are commonly referred to as de minimis shipments. 
CPSC's port staff are currently unable to pinpoint with a high degree 
of certainty potentially non-compliant and hazardous products in such 
low-value shipments. De minimis shipments may currently be entered 
under either the ``release from manifest'' process,\8\ or the ACE Entry 
Type 86 Test (ET86). Of these, only the latter is capable of 
transmitting the PGA Message Set \9\ data required to effect release of 
CPSC regulated merchandise.\10\ The Final Rule requires de minimis 
shipments containing finished products regulated by CPSC to file CPSC's 
PGA Message Set via an entry type capable of transmitting this message 
set, which is currently limited to ET86. Accordingly, importers may now 
use ET86 for de minimis shipments to append the required CPSC PGA 
Message Set. Once the Final Rule is effective, CPSC's RAM can receive 
CBP's entry data and CPSC's PGA Message Set containing certificate data 
elements for risk scoring. Using product-specific certificate 
information will provide CPSC with greater insights into all imported 
products, including de minimis shipments. Millions of de minimis 
shipments enter the United States daily; although not all of these 
shipments contain CPSC regulated finished products, the ability to use 
algorithms to assess certificate 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.
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    \8\ Merchandise for which a duty exemption is claimed under 19 
U.S.C. 1321(a)(2)(C) may be entered by presenting the bill of lading 
or a manifest listing each bill of lading. This type of informal 
entry is termed the ``release from manifest'' process. Generally, 
such shipments are released from CBP custody based on the 
information provided on the manifest or bill of lading. 89 FR 2630, 
2631-2632 (Jan. 16, 2024).
    \9\ CBP created the PGA Message Set to collect from importers 
additional agency-related import data for partner government 
agencies and to allow importers to transmit the data elements to 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, importers will provide all certificate data in the 
form of data elements. When using a Reference Message Set, importers 
will provide a reference ID to certificate data entered into CPSC's 
Product Registry. The Product Registry is a certificate database 
created and maintained by CPSC. Importers can enter or upload 
certificate data for regulated consumer products that can be 
referenced in a short PGA Message Set each time the product is 
imported without having to re-enter the same certificate data 
elements.
    \10\ Shipments that have PGA data reporting requirements, or 
require the payment of any duties, fees, or taxes may not use the 
``release from manifest'' process. 89 FR 2630, 2632.
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    Additionally, CBP does not collect entry data for products imported 
into the United States via international mail; thus, these shipments 
cannot relay the PGA Message Set required for products regulated by 
CPSC. However, CPSC staff inspect mail shipments; lack of product-
related data can lead to CPSC inspections of compliant products that 
delay their release. Although CBP is unable to process any certificate 
data collected for international mail shipments via ACE,\11\ the Final 
Rule requires a modified eFiling requirement for international mail. 
Importers using international mail to import consumer products 
regulated by CPSC must enter certificate data into the Product Registry 
before arrival of the shipment in the United States, so that staff can 
analyze this data and work with CBP to target mail shipments for 
examination.
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    \11\ 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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D. CPSC eFiling Related Projects Since the 2013 NPR

    Since publication of the 2013 NPR, CPSC has implemented RAM 2.0 and 
CBP has implemented ACE and developed the PGA Message Set. In 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 CPSC'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

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approved a multi-year plan to implement an eFiling program at CPSC.\12\ 
Following this eFiling plan, CPSC began an eFiling Beta Pilot in the 
fall of 2023 with 37 participants.\13\ Section II of the SNPR contains 
a detailed description of each of these initiatives. 88 FR 85760, 
85762-63. Most recently, on June 4, 2024, CPSC announced an expansion 
of the Beta Pilot to include up to an additional 2,000 participants, to 
further test the eFiling IT infrastructure and to allow more importers 
to prepare for full implementation of an eFiling requirement.\14\
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    \12\ 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.
    \13\ 87 FR 35513 (June 10, 2022).
    \14\ 89 FR 47922 (June 4, 2024).
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    To minimize burden on industry, CPSC developed an eFiling System 
through the Alpha and Beta Pilots that allows importers to enter 
certificate data through two means: Full PGA Message Set or Reference 
PGA Message Set using the Product Registry.\15\ When using the Full PGA 
Message Set, the importer submits all certificate data elements via 
ACE. When using the Reference PGA Message Set, the importer enters all 
certificate data elements into CPSC's Product Registry prior to filing 
entry with CBP, and then submits a unique reference identifier (ID) via 
ACE as part of their entry filing.\16\ The CBP and Trade Automated 
Interface Requirement (CATAIR), which details the technical 
requirements to file each of CPSC's PGA Message Sets in ACE, is 
available in the eFiling document library maintained on CPSC's website 
at https://www.cpsc.gov/eFiling-Document-Library.
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    \15\ The eFiling system collectively refers to the PGA Message 
Set and Product Registry and process of filing certificate data. 
Finished product 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 behalf of a finished product certifier. See 
16 CFR part 1109 and Sec.  1110.15 of this Final Rule.
    \16\ Other trade parties, such as brokers and laboratories, may 
enter certificate data into the Product Registry on behalf of a 
finished product certifier, if given permission to do so in the 
Product Registry.
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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 in which the importer submits one certificate at 
a time. The batch upload feature allows importers to submit multiple 
certificates using a Comma-Separated Value (CSV) template. The API 
upload feature allows importers to build an API connection via the 
Product Registry and their data systems to directly enter certificates.
    Additionally, the Product Registry provides multiple features to 
optimize the importer's interaction. Each importer has a Business 
Account in the Product Registry through which individual users 
representing the importer can view all certificates submitted into the 
Product Registry associated with the importer. An importer can also 
provide other third parties, such as a broker or testing laboratory, 
with different levels of permission to submit certificate data into the 
Product Registry on their behalf. The most recent user guide for the 
Product Registry is attached as Tab A to Staff's Final Rule Memo and is 
also available in the eFiling document library maintained on CPSC's 
website at https://www.cpsc.gov/eFiling-Document-Library. Updates to 
the Product Registry user guide and other eFiling-related guidance 
documents will continue to be placed in this document library.

E. Supplemental Notice of Proposed Rulemaking

    On December 8, 2023, CPSC published an SNPR that modified the 2013 
NPR based on comments on the 2013 NPR, lessons learned, and participant 
feedback from the Alpha Pilot and the Certificate Study, as well as 
feedback during preparation of the Beta Pilot. 88 FR 85760. The SNPR 
proposed to revise the 1110 rule to clarify certificate requirements 
for all regulated products. Among other changes, the SNPR added 13 new 
definitions to incorporate concepts used in the 1107 and 1109 rules and 
to clarify the requirements of part 1110; broadened the definition of 
``importer'' in part 1110 to include any entity CBP allows to be an 
importer under the Tariff Act; addressed which party is responsible for 
certifying imported and domestically manufactured products; clarified 
the certificate format; provided additional detail to the required data 
elements; required that each certificate describe a single product; 
specified that the 1110 rule applies to de minimis shipments, 
international mail shipments, and to products entered for consumption 
or warehousing from an FTZ; clarified the legal responsibility for 
certificate information; and expanded the record retention period for 
GCCs to five years.

III. Overview of the Final Rule

    The Commission is finalizing the rule largely as proposed in the 
SNPR. For clarity, the Final Rule contains minor grammar and syntax 
revisions that do not change the substance of the rule. Based on the 
comments, one of the biggest changes to the Final Rule is the effective 
date, extended from the proposed 120 days after publication in the 
Federal Register, to 18 months for all imported and domestically 
manufactured products (other than those imported into an FTZ and 
subsequently entered for consumption or warehousing, for which the 
effective date will be 24 months after publication). Additionally, 
throughout the Final Rule, we use the term ``finished product 
certificate'' or ``finished product certifier'' to clarify that the 
requirement to certify regulated products attaches to finished products 
and not to component parts, and the obligation to certify regulated 
finished products rests with a finished product certifier, as set forth 
in the rule. Using these terms consistently throughout the regulation 
text addresses several comments received on the SNPR demonstrating 
confusion regarding which party has the obligation to certify and which 
products must be accompanied by a certificate. The Final Rule also 
modifies the definition of ``importer'' to address commenters' 
concerns, and to ensure that a party eligible to make entry for 
imported, regulated consumer products is legally responsible for CPSC's 
certificate requirements. Finally, the Final Rule clarifies the party 
that is legally responsible for information on a finished product 
certificate and the requirements for component part certificates.
    In this section of the preamble, we briefly describe the primary 
modifications and clarifications made in the Final Rule based on 
comments received on the SNPR and experience and feedback on the 
eFiling Beta Pilot. Section V of this preamble contains a more detailed 
explanation of the requirements in the Final Rule.

A. Effective Date

    As explained in section VI of this preamble, the effective date is 
extended from the proposed 120 days. For all consumer products 
regulated by CPSC subject to the Final Rule and required to be 
certified, except for products imported into an FTZ and subsequently 
entered for consumption or

[[Page 1804]]

warehousing,\17\ the Final Rule is effective 18 months after 
publication of the Final Rule in the Federal Register. The 18-month 
effective date applies to regulated consumer products subject to the 
Final Rule that are imported, as well as to those that are domestically 
manufactured. For CPSC regulated products imported into an FTZ and 
subsequently entered for consumption or warehousing, the Final Rule is 
effective 24 months after publication of the Final Rule in the Federal 
Register.
---------------------------------------------------------------------------

    \17\ Entry type 06 is used to enter for consumption consumer 
products withdrawn from an FTZ for entry for consumption.
---------------------------------------------------------------------------

B. Definitions (Sec.  1110.3)

    Definitions in the Final Rule contain the following changes from 
the SNPR:
    Component part certificate--Clarifies that component part 
certificates are voluntary.
    Consignee--Clarifies that this definition is only for the purposes 
of this rule and simplifies the definition to mean a party who takes 
custody or delivery of imported finished products for which CPSC 
certificate data are required. The definition informs that a consignee 
may be held legally responsible by CPSC for the required certificate 
data as set forth in Sec.  1110.15. Although a consignee will not 
necessarily be eligible to enter certificate data into ACE, CPSC may 
hold the consignee legally responsible for CPSC's certificate data as 
the importer.
    eFile--Modifies the defined term from ``eFiled certificate'' to 
``eFile'' because the term ``eFiled certificate'' is not used in the 
rule, but the term ``eFile'' or ``eFiled'' is used nine times 
throughout the regulation. The definition of ``eFile'' is consistent 
with the SNPR definition of ``eFiled certificate.''
    Finished product--Removes the phrase ``replacement parts'' and 
clarifies the three requirements that define a ``finished product'': 
(1) the product is imported for consumption or warehousing, or 
distributed in commerce; (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 packaged, sold, or held for sale to, or use by, consumers.
    Finished product certifier--For clarity, adds the statutory 
requirement that a finished product certifier must be a manufacturer, 
importer, or private labeler.
    Importer--Clarifies that for purposes of this rule, the importer is 
the Importer of Record (IOR) eligible to make entry for imported 
finished products under the Tariff Act of 1930, as amended (19 U.S.C. 
1484(a)(2)(B)), who may be an owner, purchaser, or authorized customs 
broker. This modification is consistent with the 2013 NPR and comments 
stating that the SNPR proposal to broaden the importer definition was 
too broad and created confusion about which party is required to 
certify imported products. Pursuant to CBP's statute, entry 
documentation must be transmitted by the owner or purchaser of the 
merchandise or, when appropriately designated by the owner, purchaser, 
or consignee of the merchandise, a person holding a valid license under 
19 U.S.C. 1641. The IOR must be a party eligible to file such entry 
documentation. 19 U.S.C. 1484(a)(2)(B). A valid license under 19 U.S.C. 
1641 means a customs broker licensed to conduct customs business. 19 
U.S.C. 1641(a). Accordingly, the Final Rule places responsibility to 
issue a finished product certificate for imported products on the IOR, 
and the definition tracks the parties eligible to be an IOR in the 
Tariff Act, as amended.
    However, to address additional comments stating that an IOR 
authorized to make entry for a shipment, such as a broker, may not have 
sufficient knowledge of the consumer products to be held responsible 
for testing and certification, the definition of ``importer'' in the 
Final Rule provides that an authorized broker may identify the owner, 
purchaser, or consignee of the finished products who authorized the 
customs broker to make entry, as the party responsible for compliance 
with CPSC certificate requirements, as part of the certificate data 
filed in CPSC's PGA Message Set. Accordingly, a broker may identify the 
party responsible for certification by filing CPSC's required PGA 
Message Set in ACE, and the Message Set should identify the finished 
product certifier as part of the certificate data required in Sec.  
1110.11(a)(3) of this Final Rule. This owner, purchaser, or consignee 
that authorized a broker to file entry is the party that CPSC would 
expect to have sufficient knowledge of the products being imported and 
understand that such finished products must now comply with U.S. laws 
and regulations, including compliance with CPSC's testing and 
certification requirements.\18\
---------------------------------------------------------------------------

    \18\ We note that the party that CPSC holds legally responsible 
for certificate data does not signify that this party is responsible 
for submitting such data into ACE, given that this party is not 
necessarily an IOR or other party eligible to make entry under CBP 
statutes and regulations.
---------------------------------------------------------------------------

    Additionally, the Final Rule clarifies that for finished products 
imported by mail, or for which a de minimis duty exemption under 19 
U.S.C. 1321(a)(2)(C) is claimed, the importer for purposes of CPSC's 
certificate requirements is a party eligible to make entry for the 
finished products pursuant to CBP statutes and regulations, who may be 
an owner, purchaser, consignee, or authorized customs broker.\19\ 
Because a consumer could fall within the definition of a purchaser or 
consignee, the definition of ``importer'' continues to state, as 
proposed, that for purposes of this rule, CPSC will not typically 
consider a consumer purchasing or receiving products for personal use 
or enjoyment to be the importer responsible for certification.
---------------------------------------------------------------------------

    \19\ Id.
---------------------------------------------------------------------------

    Manufacturer--For clarity, restates the statutory definition of 
``manufacturer'' in the regulatory text.
    Owner or purchaser--Clarifies that this definition is only for the 
purposes of this rule and simplifies the definition to mean a party who 
has a financial interest in imported finished products for which CPSC 
certificate data are required, including the actual owner of the 
merchandise. The definition informs that an owner or purchaser of the 
imported finished products may be held legally responsible by CPSC for 
the required certificate data as set forth in Sec.  1110.15. This 
definition does not signify which party is eligible to enter 
certificate data into ACE but informs the owner or purchaser that CPSC 
may hold them legally responsible for CPSC's certificate data as the 
importer.
    Private labeler--For clarity, restates the statutory definition of 
``private labeler'' in the regulatory text.
    Product Registry--Places the responsibility to submit data into the 
Product Registry on the finished product certifier, meaning the 
importer that is required to issue the finished product certificate, as 
specified in Sec.  1110.7(a), and who is also required to eFile the 
certificate data as set forth in Sec.  1110.13(a)(1).\20\
---------------------------------------------------------------------------

    \20\ Pursuant to Sec.  1110.15, a finished product certifier can 
rely on other parties to maintain records, test, certify products, 
or enter data into the Product Registry, but remains legally 
responsible for the validity, accuracy, completeness, and 
availability of finished product certificates.
---------------------------------------------------------------------------

C. Certificate Content (Sec.  1110.11)

    Requirements for certificate content in the Final Rule contain the 
following changes from the SNPR proposal:
    Individual maintaining records Sec.  1110.11(a)(4)--Moves the 
bulleted list summarizing required testing and certification records to 
the recordkeeping requirement in Sec.  1110.17, because the data 
element in

[[Page 1805]]

Sec.  1110.11(a)(4) requires a name and contact information for the 
recordkeeper; thus, the list of potential records is more appropriately 
defined in the Final Rule's recordkeeping requirement.
    Attestations Sec.  1110.11(a)(7)--Clarifies that although all 
certificates require an attestation, the written attestation only 
applies to certificates provided in hard copy or electronic formats, 
because eFiled certificates already address the attestation requirement 
through the Product Registry (Reference Message Set) and a data element 
in the Full Message Set.
    Duplicative testing not required Sec.  1110.11(d)--Clarifies that 
the rule's provision on duplicative testing is intended to prevent test 
laboratories from conducting the same third party test multiple times 
on the same sample when the same test is required by overlapping rules.

D. Legal Responsibility of Finished Product Certifiers (Sec.  1110.15)

    This provision modifies the heading proposed in the SNPR, changing 
the description from ``Legal responsibility for certificate 
information'' to ``Legal responsibility of finished product 
certifiers.'' This modification better reflects the content of Sec.  
1110.15, which is broader than just the information on a certificate 
and includes requirements for finished product certifiers when they 
rely on other parties to maintain records, or to submit data into the 
Product Registry, test, or certify.

E. Recordkeeping Requirements (Sec.  1110.17)

    The Final Rule simplifies the presentation of the recordkeeping 
requirements for all finished product certificates by stating that 
required records must be maintained for five years from the date of 
creation, as proposed, and moves the bulleted recordkeeping 
requirements previously contained in Sec.  1110.11(a)(4) to this 
section of the rule.

F. Disclaimer Message Sets

    The SNPR proposed to require Disclaimer Message Sets in Sec.  
1110.13(a)(1) by referencing CPSC's PGA Message Set requirements in 
CPSC's CATAIR. As explained in section IV.F of this preamble, as a 
matter of policy and to reduce burden, CPSC will not require importers 
to file a Disclaimer Message Set with CBP for products that do not 
require a certificate. Accordingly, a Disclaimer Message Set is not 
required when: (1) the imported product is not within CPSC's 
jurisdiction; (2) the imported product is within CPSC's jurisdiction, 
but no rule, ban, standard, or regulation requiring a certificate 
applies; (3) the imported product is a component of a consumer product 
that is not packaged, sold, or held for sale to, or for use by, 
consumers, but rather the part will be used in further assembly or 
manufacturing in the United States; or (4) the imported product is 
subject to an enforcement discretion and no certificate is required. 
Commission staff have updated the CPSC's CATAIR accordingly.

IV. Response to Comments

    This section of the preamble summarizes and responds to the 47 
comments received on the SNPR by topic. Table 1 contains a key to the 
acronyms used to describe each commenter.
---------------------------------------------------------------------------

    \21\ The commenter key is based on the document ID that was 
assigned to the comment upon submission to the Federal Register 
docket of the SNPR. Several commenters submitted comments in 
separate submissions and were assigned multiple IDs. Acronyms and 
abbreviations for easier reference of each commenter are in 
parentheses. Comments on the SNPR begin with comment number 84.

                                                               Table 1--Commenter Key \21\
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
84....................................  Comverex, LLC (Comverex)                    108.....................  National Foreign Trade Council and U.S.
                                                                                                               Chamber of Commerce (NFTC & USCC)
85....................................  Tractor Supply Company (TSC)                109.....................  The Boppy Company, LLC (Boppy)
86....................................  Tractor Supply Company (TSC)                110.....................  Newell Brands Inc. (Newell)
87....................................  Tractor Supply Company (TSC)                111.....................  American Apparel & Footwear Association
                                                                                                               (AAFA)
88....................................  Comverex, LLC (Comverex)                    112.....................  PeopleForBikes Coalition (PeopleForBikes)
89....................................  Comverex, LLC (Comverex)                    113.....................  The National Association of Manufacturers
                                                                                                               (NAM)
90....................................  Galaxy Fireworks, Inc. (Galaxy)             114.....................  Retail Industry Leaders Association (RILA)
91....................................  Comverex, LLC (Comverex)                    115.....................  Law Offices of Steven W Hansen (Hansen)
92....................................  Bureau Veritas (BV)                         116.....................  Lighter Association (LA)
93....................................  Alta Cycling Group, LLC (Alta)              117.....................  Comverex, LLC (Comverex)
94....................................  American Fireworks Standards Laboratory     118.....................  Writing Instrument Manufacturer's
                                         (AFSL)                                                                Association (WIMA)
95....................................  National Fireworks Association (NFA)        119.....................  Promotional Products Association
                                                                                                               International (PPAI)
96....................................  National Association of Foreign-Trade       121.....................  National Association of Foreign-Trade
                                         Zones (NAFTZ)                                                         Zones (NAFTZ)
97....................................  Toy Association (TA)                        122.....................  National Customs Brokers and Forwarders
                                                                                                               Association of America, Inc. (NCBFAA)
98....................................  Informational Technology Industry Council   123.....................  IKEA
                                         (ITI)
99....................................  Juvenile Products Manufacturers             124.....................  IKEA
                                         Association (JPMA)
100...................................  Outdoor Power Equipment Institute, Inc.     125.....................  Informational Technology Industry Council
                                         (OPEI)                                                                (ITI)
101...................................  American Pyrotechnics Association (APA)     126.....................  Retail Industry Leaders Association (RILA)
102,..................................  Ingram Enterprises, Inc. DBA Fireworks      127.....................  National Association of Foreign-Trade
120...................................  Over America and Affiliated                                            Zones (NAFTZ)
                                        Companies (FOA) (Comment 120 identical)
103...................................  Consumer Technology Association (CTA)       128.....................  National Association of Foreign-Trade
                                                                                                               Zones (NAFTZ)
104...................................  UL Solutions (ULS)                          129.....................  National Fireworks Association (NFA)
105...................................  American Promotional Events, Inc. d/b/a     130.....................  IKEA
                                         TNT Fireworks (APE)
106...................................  Window Covering Manufacturers Association   131.....................  Express Association of America (EAA)
                                         (WCMA)
107...................................  Winco Fireworks International LLC (WFI)
--------------------------------------------------------------------------------------------------------------------------------------------------------

A. Procedural Comments

    Comment 1: Several commenters (Galaxy (90), JPMA (99), NAM (113), 
RILA (114), and NCBFAA (122)) argue that the SNPR was proposed 
prematurely, because CPSC assertedly did not benefit from outcomes and 
feedback from Beta Pilot participants;

[[Page 1806]]

these commenters noted general concern about the impact of eFiling.
    Response 1: When drafting the SNPR, CPSC benefited from the 
outcomes and feedback from comments to the 2013 NPR, the Alpha Pilot 
conducted in 2016, the Certificate Study conducted in 2017, preparation 
and development for the Beta Pilot in 2023, and the initial months of 
the Beta Pilot. Furthermore, CPSC is drawing upon outcomes and feedback 
from the Beta Pilot participants in the Final Rule, specifically with 
respect to consideration of the effective date of the Final Rule and 
finalizing the eFiling burden analysis in sections VII and VIII of this 
preamble. Finally, while the Beta Pilot tests the mechanics of eFiling 
and practical considerations, it does not impact the Final Rule's basic 
requirement to eFile certificates.
    Comment 2: Hansen (115) states that the bicycle industry has not 
received sufficient information about the eFiling proposal, and that 
the SNPR was sudden, considering the 10-year lapse between the NPR and 
the SNPR. Hansen complains that no company from the bicycle industry is 
participating in the Beta Pilot and that it will take many months to 
set up testing laboratories around the world and hire people to manage 
the new data requirements.
    Response 2: Because more than 10 years have passed since the NPR 
was published in 2013, the Commission issued the SNPR to provide 
additional opportunity for notice and comment and to describe proposed 
requirements for the revisions to part 1110 based on the Commission's 
efforts since 2013 to advance eFiling. The SNPR recounts such efforts, 
including the Alpha Pilot in 2016 and a Certificate Study in 2017. 88 
FR 85760, 85762-62. The Commission voted in December 2020 to approve 
staff's recommended four-phased approach to create an eFiling program 
at CPSC \22\ and began recruiting for the Beta Pilot on June 10, 2022 
(87 FR 35513). CPSC conducted the Beta Pilot with 37 participants from 
October 2023 to June 2024. Most recently, CPSC announced expansion of 
the Beta Pilot test on June 4, 2024 (89 FR 47922). CPSC has also 
conducted extensive outreach via public events, such as a workshop held 
on October 13, 2022 (87 FR 48162 (Aug. 8, 2022)), and communication 
with a variety of trade organizations.\23\ CPSC provided industry with 
a wealth of information about the Beta Pilot and eFiling and provided 
numerous notices and opportunities for bicycle importers to 
participate; bicycle importers can still participate in the expanded 
Beta Pilot. Lastly, the Final Rule requires eFiling of certificates 
that bicycle importers are already responsible for creating and 
maintaining; the Final Rule does not add new testing-related data 
requirements for certificates and does not require the bicycle industry 
to set up additional testing laboratories or change their testing 
processes.
---------------------------------------------------------------------------

    \22\ Record of Commission Action available at: https://www.cpsc.gov/s3fs-public/RCA-CPSC-Plan-to-Create-an-eFiling-Program-for-Imported-Consumer-Products.pdf.
    \23\ Section XI of the October 30, 2024: Staff Briefing 
Memorandum: Draft Final Rule to Revise 16 CFR part 1110 for 
Certificates of Compliance and to Implement eFiling (Final Rule 
SBP), contains a list of staff outreach and engagement efforts since 
2013 regarding CPSC's eFiling initiative. This list demonstrates at 
least 121 staff engagements on eFiling in the last 3 years.
---------------------------------------------------------------------------

B. Effective Date

    Comment 3: Many commenters (TSC (87), BV (92), Alta (93), TA (97), 
ITI (98), JPMA (99), OPEI (100), WCMA (106), NFTC & USCC (108), Newell 
(110), AAFA (111), NAM (113), RILA (114, 126), Hansen (115), LA (116), 
Comverex (117), NAFTZ (127), EAA (131), and IKEA (123, 130)) argue that 
an effective date of 120 days after publication of the Final Rule, as 
proposed, is inadequate and recommend a longer implementation period, 
ranging from six to 24 months. The NCBFAA (122) expresses concern about 
slow participation by importers and potential system bugs in 
development.\24\ The TA (97) specifically recommends a staggered phase-
in period once the effective date has elapsed. Commenters argue that an 
extended implementation period would allow industry to implement the 
new changes, including organizing resources, hiring data personnel, 
integrating internal technological systems, onboarding to the eFiling 
system, reviewing existing compliance programs, developing internal 
procedures, and completing additional legal agreements between parties 
to assign certification responsibilities.
---------------------------------------------------------------------------

    \24\ During the Beta Pilot, between October 16, 2023 and June 
30, 2024, the eFiling support team provided real-time support using 
the Beta Pilot Support Mailbox. The support team responded to 287 
Tier 1 (basic troubleshooting, policy, and process) incidents and 
153 Tier 2 (advanced technical issues) incidents with an average 
resolution time of 21 hours. CPSC expects to have a fully staffed 
service desk to assist with the expanded Beta Pilot. Additionally, 
during the Beta Pilot CPSC reviewed and assessed participant 
feedback, analyzed their needs to adjust the eFiling program, and 
implemented changes where needed. CPSC will continue to incorporate 
participant feedback throughout the eFiling voluntary stage.
---------------------------------------------------------------------------

    The AAFA (111) states that an interim manual entry process, which 
CPSC did not propose, is not feasible for most importers, because it 
would require significant staff time. Commenters recommend that CPSC 
host additional workshops and training. IKEA (123, 130) claims that to 
secure a stable and resilient supply chain, message sets need to be 
ready at least three months prior to import, suppliers require four 
months to update their systems, each new product requires at least 6 
months to mitigate any deviations from eFiling requirements, and one 
month to correct errors in the data flow. IKEA (130) asserts that 
eFiling requires many months of preparation with suppliers, vendors, 
and brokers, recommending a 24-month effective date and a phased 
approach to implementation. NAFTZ (127) and EAA (131) recommend an 
effective date of at least one year or longer.
    Response 3: Based on CPSC's experience with Beta Pilot, the 
Commission agrees with the commenters that additional time is warranted 
for importers and their trade partners to prepare for full 
implementation of eFiling. Accordingly, the Final Rule provides an 
effective date of 18 months after publication of the Final Rule, as 
described in section VI of the preamble, to implement eFiling for all 
entry types except products entered for consumption or warehousing from 
an FTZ, which will have a 24-month effective date. This timeline is 
based on comments received on the SNPR and feedback from Beta Pilot 
participants and their trade partners. CPSC will also consider hosting 
additional workshops and trainings before and during implementation of 
the eFiling requirement and will update guidance materials as needed on 
CPSC's eFiling document library, available at https://cpsc.gov/eFiling-Document-Library. Finally, to allow importers and the Commission time 
to test and plan for full implementation of eFiling, the Commission is 
expanding the Beta Pilot test to include up to 2,000 additional 
participants, as described in a June 4, 2024, Federal Register notice. 
89 FR 47922. Importers can apply to participate in the expanded Beta 
Pilot as stated in this notice. Id.
    Comment 4: WCMA (106) alleges that the 120-day implementation 
period in the SNPR conflicts with the American National Standards 
Institute (ANSI)/WCMA 2022 custom window covering safety standard 
(effective June 1, 2024) and the approaching conclusion of the Reese's 
Law discretionary enforcement period (on March 19, 2024). WCMA (106) 
states that the window covering industry will have to adapt to new 
compliance requirements, while being unfamiliar with the eFiling 
system.

[[Page 1807]]

    Response 4: The Commission published 16 CFR part 1263 on September 
21, 2023 (88 FR 65274; 88 FR 65296) to implement Reese's Law, 15 U.S.C. 
2056e, which required the Commission to issue a rule providing 
performance and labeling requirements for consumer products that 
contain button cell or coin batteries, to eliminate or adequately 
reduce the risk of injury associated with children 6 years old and 
younger ingesting these batteries. 15 U.S.C. 2056e(a)(1). Some 
motorized window coverings contain button cell or coin batteries.
    The effective date of this Final Rule, as revised, will occur about 
one and a half years after the effective date of Reese's Law 
requirements for consumer products containing button or coin cell 
batteries. As of September 2024, testing and certification of consumer 
products containing button cell or coin batteries has been in effect 
for six months. Accordingly, the 18-month effective date of the Final 
Rule will provide window covering manufacturers and importers with 
sufficient time to comply with testing, certification, and eFiling 
requirements.
    Comment 5: Comverex (84) expresses concern about the proposed 120-
day effective date, believing that test data that is typically valid 
for 365 days would need to be reconducted in 245 days (365 days-120 
days = 245 days) to allow test laboratories to automate test data 
submission into the Product Registry. Comverex states that a 120-day 
effective date would require testing to be obtained up to 245 days in 
advance of publication of the Final Rule, potentially requiring 
importers to reconduct testing or to coordinate obtaining the necessary 
data from previously issued test reports.
    Response 5: Certificate data entered into the Product Registry are 
the responsibility of the importer, who can allow a testing laboratory 
to submit test data into the Product Registry on their behalf. The 
decision to rely on a testing laboratory for data entry is at the 
discretion of the importer. The premise of Comverex's concern, that 
test data must be entered at the time of testing, is incorrect; in 
fact, importers or their trade partners can enter test data into the 
Product Registry at any time before importation of the product, 
including testing conducted before the effective date of the Final 
Rule. Based on comments and the experience of Beta Pilot participants, 
the Final Rule now has a 18-month effective date, which also obviates 
Comverex's concern. Note that if an importer participates in the 
expanded Beta Pilot, the importer can begin submitting certificate data 
into the Product Registry before the effective date of the Final Rule.

C. Section 1110.3 Definitions

    Comment 6: Several commenters (Alta (93), TA (97), Newell (110), 
PeopleForBikes (112), and Hansen (115)) oppose expanding the definition 
of a ``finished product'' in Sec.  1110.3 to include replacement parts. 
These commenters argue that replacement parts are effectively covered 
by certification for the full finished product and are not tracked 
independently, so it would be burdensome to create and track 
certificates for replacement parts. Furthermore, a change to any 
replacement part would be considered a ``material change'' and trigger 
retesting under an existing regulation. Lastly, commenters state that 
component parts are imported in bulk and the importer has no way of 
knowing whether the parts are intended for domestic assembly, repair 
shops, or retail customers. Commenters state that this differs from 
parts sold with the intent that they may be assembled to create some 
larger item or ensemble, like doll accessories for toys.
    Additionally, PeopleForBikes (112) and Hansen (115) write that 
CPSC's example that a handlebar sold as a replacement part requires a 
certificate is incorrect, because 16 CFR part 1512 (part 1512) is a 
complete product standard and the handlebar must meet the requirements 
in part 1512 after assembly into complete bicycles. PeopleForBikes 
(112) notes that in response to comment 63 on the 2013 NPR, CPSC 
indicated that parts of a bicycle could be tested and certified. The 
commenter states that CPSC provided as an example replacement 
handbrakes, which the commenter asserts cannot be tested individually, 
but are covered under 16 CFR 1512.5. Hansen (115) states that importers 
will not know whether a part, such as handlebars, will be used on a 
child's bike or not, and requests documentation that CPSC has 
previously stated that replacement bicycle parts must be tested to part 
1512.
    JPMA (99) and NAM (113) claim the proposed rule does not clearly 
define ``component parts'' and ``component part certificates.'' These 
commenters state that CPSC should clarify that certification is only 
required for component or replacement parts if they are sold as fully 
independent, finished, packaged consumer products subject to a specific 
applicable regulation. The OPEI (100) seeks clarity as to whether 
replacement shields for power mowers (as defined in 16 CFR part 1205.3) 
require separate testing and certificates if sold to consumers as 
replacement parts.
    Response 6: In the Final Rule, CPSC amends the definition of 
``finished product'' and adds guidance in sections V.B and V.C of this 
preamble to clarify when a part of a consumer product is considered a 
finished product. As defined in 16 CFR part 1109 and this revised part 
1110, a ``component part'' is not, by definition, a finished product 
that requires certification. A component of a consumer product only 
requires testing and certification if the part itself is: (1) packaged, 
sold, or held for sale to, or use by, consumers (in which case it is a 
finished product); (2) regulated by the Commission, meaning the part is 
specifically regulated and not regulated as a subsection of a final 
product standard; and (3) imported for consumption or warehousing or 
distributed into commerce. To be a finished product, components must be 
sold independently, packaged for a consumer, or intended for use by a 
consumer.
    CPSC incorrectly stated in the SNPR that bicycle handbrakes sold 
separately would require a certificate. The commenter is correct that 
16 CFR part 1512, as applied to non-children's products, is a finished 
product standard and the individual components are tested as part of 
the finished product. Imported replacement parts for bicycles, power 
mowers, or any non-children's product covered by a finished product 
regulation are not subject to the eFiling requirement unless a 
regulation applies to the part, as sold. However, a part of a 
children's product that is sold separately to consumers may be subject 
to third party testing for CPSC rules such as lead content, lead in 
paint, or small parts. Lastly, per 16 CFR part 1109, a certifier can 
use component part testing and certification to certify a finished 
product, where applicable.
    Comment 7: Several commenters (JPMA (99), NFTC & USCC (108), AAFA 
(111), NAM (113), and RILA (114)) disagree with the proposed expanded 
definition of ``importer'' and urge using ``importer of record (IOR),'' 
as proposed in the 2013 NPR. Commenters claim that the industry is 
already familiar with the definition of IOR and the expanded definition 
will add complexity and ambiguity to who is responsible for eFiling 
certificate data. Commenters argue that multiple entities may be held 
responsible, or that retailers may be improperly authorized to certify 
products. JPMA (99) and NAM (113) assert that the definition of 
``importer'' cannot be changed, because it is already legislatively 
defined, and the SNPR is contrary to the plain language of the

[[Page 1808]]

CPSA that specifies manufacturers as the required certifier.
    Response 7: The 2013 NPR proposed to define ``importer'' as the 
``importer of record as defined under the Tariff Act of 1930 (19 U.S.C. 
1484(a)(2)(B))'' 78 FR 28080, 28107. The 2023 SNPR proposed to broaden 
the definition to include 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. 88 FR 85760, 85789. 
For the Final Rule, the Commission agrees with the commenters that 
identifying a specific party responsible for certifying imported, 
finished products helps to clarify the party responsible for complying 
with CPSC's certificate requirements and ensures that certificate data 
is eFiled at entry. Accordingly, the Final Rule clarifies that, as 
proposed in the 2013 NPR and consistent with the SNPR and the comments 
received, for purposes of this rule, the ``importer'' means the 
importer of record (IOR) eligible to make entry for imported finished 
products under the Tariff Act of 1930, as amended (19 U.S.C. 
1484(a)(2)(B)), who may be an owner, purchaser, or authorized customs 
broker.
    The Final Rule also addresses the concerns of commenters stating 
that an IOR authorized to make entry for a shipment, such as a broker, 
may not have sufficient knowledge of the consumer products to be held 
responsible for testing and certification. Accordingly, the definition 
of ``importer'' in the Final Rule provides that an authorized broker 
may identify the owner, purchaser, or consignee of the finished 
products who authorized the customs broker to make entry, as the party 
responsible for compliance with CPSC certificate requirements. A broker 
would identify such party by eFiling certificate data using CPSC's PGA 
Message Set, which will identify the finished product certifier 
responsible for product certification, as required in Sec.  
1110.11(a)(3).
    If identified as the finished product certifier in the PGA Message 
Set data, the owner, purchaser, or consignee that authorized the broker 
to file entry is the party that CPSC would expect to have sufficient 
knowledge of the finished products being imported and understand that 
such products must now comply with U.S. laws and regulations, including 
compliance with CPSC's testing and certification requirements. We note 
that the party that CPSC holds legally responsible for certificate data 
does not mean that this party is responsible for submitting such data 
into ACE, because this party may not be the IOR for the shipment or be 
another party eligible to make entry under CBP statutes and 
regulations.
    Thus, the Final Rule definition of ``importer'' is consistent with 
the parties identified in the NPR and the SNPR and addresses commenters 
concerns by requiring the IOR to comply with CPSC's certificate 
requirements, but allowing an IOR who is an authorized broker to 
identify the owner, purchaser, or consignee of the finished products 
who authorized the customs broker to make entry, as the party 
responsible for compliance with CPSC certificate requirements. However, 
for finished products regulated by CPSC that are required to be 
accompanied by a certificate, if an authorized customs broker fails to 
submit a PGA Message Set containing CPSC's certificate data elements to 
identify the owner, purchaser, or consignee responsible for product 
certification,\25\ CPSC can hold such a broker legally responsible for 
certificate data as set forth in Sec.  1110.15.\26\ Practically 
speaking, a broker will receive from the owner, purchaser, or consignee 
authorizing entry, either the Unique ID for the Reference PGA Message 
Set, linking certificate data in the Product Registry with the 
shipment, or all certificate data elements for submitting the Full PGA 
Message Set at entry.
---------------------------------------------------------------------------

    \25\ Section 1110.11(a)(3) of the Final Rule requires that the 
certificate identify the finished product certifier that is 
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.
    \26\ A licensed customs broker is required to exercise 
responsible supervision and control over the customs business that 
it conducts. 19 U.S.C. 1641(b)(4).
---------------------------------------------------------------------------

    The Final Rule also clarifies, for purposes of this rule, the 
importer who is legally responsible for CPSC's certificate data for 
finished products that must be accompanied by a certificate that are 
imported by mail, or for which a de minimis duty exemption under 19 
U.S.C. 1321(a)(2)(C) is claimed. These shipments do not have an IOR. 
The ``importer'' definition in the Final Rule specifies that for 
finished products imported by mail, or for which a de minimis duty 
exemption under 19 U.S.C. 1321(a)(2)(C) is claimed, the importer for 
purposes of CPSC's certificate requirement is a party eligible to make 
entry for the merchandise pursuant to CBP statutes and regulations, who 
may be an owner, purchaser, consignee, or authorized customs broker. 
The Final Rule defines ``owner or purchaser'' and ``consignee'' 
consistent with the SNPR but simplified. An authorized broker may 
identify the owner, purchaser, or consignee that authorized entry as 
the finished product certifier in a PGA Message Set for a de minimis 
shipment as well. Because a consumer could fall within the definition 
of a purchaser or consignee, the definition of ``importer'' continues 
to state, as proposed, that for purposes of this rule, CPSC will not 
typically consider a consumer purchasing or receiving products for 
personal use or enjoyment to be the importer responsible for 
certification.
    The assertion by JPMA (99) and NAM (113) that the plain language of 
the CPSA specifies a manufacturer as the required certifier is 
incorrect and comes 16 years after the CPSC first required importers to 
certify imported consumer products in the existing 1110 rule, effective 
November 18, 2008. 73 FR 68328. Section 3(a)(11) of CPSA defines a 
manufacturer as ``any person who manufactures or imports a consumer 
product.'' The CPSA does not define ``importer,'' and, pursuant to the 
implementing authority in section 3 of the CPSIA, CPSC has the 
authority to define ``importer'' for the purposes of this rule, and to 
effectuate the statutory authority to require electronic filing of 
certificates in section 14(g)(4) of the CPSA. Moreover, CPSC has the 
authority to designate the certifier pursuant to section 14(a)(4) of 
the CPSA, which states that when a product has more than one 
manufacturer or private labeler, the Commission may by rule designate 
one or more of such entities as the certifier and exempt the others. 15 
U.S.C. 2063(a)(4).
    Accordingly, the Commission's 1107 and 1109 rules both rely on the 
requirement for importers to certify imported consumer products, and 
these rules have been effective since 2013 and 2011, respectively. 76 
FR 69482 (November 8, 2011) (finalizing part 1107); 76 FR 69546 
(November 8, 2011) (finalizing part 1109). To address importer 
concerns, for more than 13 years part 1109 has allowed importers, or 
any finished product certifier, to rely on another party's testing or 
certification, such as a manufacturer's, to issue their own finished 
product certificate, provided the finished product certifier meets the 
requirements in part 1109.
    Comment 8: The NFTC and USCC (108) are concerned that the proposed 
definition of ``importer'' would result in a ``diffusion of 
responsibility'' across all parties in the transaction of the shipment, 
resulting in confusion. These commenters propose that the IOR must 
eFile the certificate, but another

[[Page 1809]]

specified entity could prepare the certificate, which could either be 
(1) an entity that by mutual agreement is responsible for preparing the 
certificate, or (2) in the absence of agreement, a hierarchy of 
entities within the proposed definition of ``importer.'' Commenters 
state that in this case, if the IOR does not have the requisite 
knowledge to prepare the certificate, another specified entity with 
direct knowledge of the facts underlying the certificate could be 
responsible for its preparation.
    The NCBFAA (122) questions why the definition of ``importer'' 
specifically highlights customs brokers, because they are already 
subsumed in the definition of IOR. They argue that this adds confusion, 
because the customs broker will rarely assume legal responsibility for 
certification. The NCBFAA (122) urges CPSC to make it clear that a 
customs broker or other non-beneficial owner will never be the 
responsible importer by default merely due to their role in the import 
process, and to distinguish those roles.
    Response 8: As described in response to comment 7 and in section 
V.B of this preamble, the Final Rule revises the definition of 
``importer'' proposed in the SNPR, agreeing in part with the 
commenters. The NFTC and USCC (108) request that CPSC identify the IOR 
as the importer but allow for another specified party to be responsible 
in case the IOR does not have the requisite knowledge to prepare the 
certificate. As stated in response to comment 7, the Final Rule 
specifies that the IOR is the importer responsible for certification of 
a finished product. However, if the IOR is an authorized customs 
broker, the broker may identify the owner, purchaser, or consignee that 
authorized entry, as the party responsible for CPSC's certificate 
requirements, as part of the eFiled certificate data. If the required 
certificate data is not eFiled, CPSC can hold the broker legally 
responsible as set forth in Sec.  1110.15.
    The revised definition limits confusion by specifying the IOR as 
the importer, while also addressing broker concerns about not having 
sufficient detailed knowledge about the consumer products being 
imported to issue a certificate, by allowing the broker to specify the 
owner, purchaser, or consignee that authorized the broker to make 
entry. Use of the Product Registry will aid brokers in obtaining the 
requisite certificate information for eFiling. Practically speaking, a 
broker can identify the finished product certifier responsible for 
certification either by ensuring complete certificate data is filed in 
a Full Message Set, including the required ``certifying entity'' in 
Sec.  1110.11(a)(3), or when stating the ``certifier ID'' for the 
Reference Message Set.
    Comment 9: The TA (97) claims that the proposed importer definition 
does not adequately fulfill CPSC's stated intention to include products 
that are ``imported as a mail shipment.''
    Response 9: As proposed in the SNPR, Sec.  1110.13(a)(1) of the 
Final Rule requires that mail shipments containing finished products 
that are required to be accompanied by a certificate submit the 
finished product certificate data elements required in Sec.  1110.11 
into CPSC's Product Registry before arrival of the shipment in the 
United States. Mail shipments do not have an IOR. Accordingly, in 
response to the TA (97), CPSC adds a clarifying sentence to the 
definition of ``importer'' stating that for the purposes of this rule, 
the importer for purposes of CPSC's certificate requirements is a party 
eligible to make entry for the finished products pursuant to CBP 
statutes and regulations, who may be an owner, purchaser, consignee, or 
authorized customs broker.
    Comment 10: The PPAI (119) disagrees with the proposed ``importer'' 
definition and claims that the proposed new definition will render 
distributors primarily responsible for certification, instead of the 
suppliers as it is today. The PPAI (119) states that the proposed rule 
would require distributors to retest the same product for individual 
orders, causing problems for companies with multiple ``operating as'' 
or ``dba'' designations, and uncertainty when a customs broker is 
involved.
    Response 10: The Final Rule does not disrupt CPSC's current testing 
and certification requirements. As is currently the case, importers are 
the finished product certifiers that must certify imported finished 
products. However, since 2011, importers have been able to rely on a 
supplier's testing or certification to issue their own finished product 
certificates, as allowed by 16 CFR part 1109. The Product Registry aids 
in this process by allowing an importer to give a supplier permission 
to upload certificate data into the Product Registry, and to certify 
such data, on their behalf. However, as set forth in Sec.  1110.15, the 
importer, who is the defined finished product certifier in Sec.  
1110.7, remains legally responsible for the information in a finished 
product certificate, including its validity, accuracy, completeness, 
and availability.

D. Section 1110.5 Products Required To Be Certified

    Comment 11: ULS (104) supports CPSC's focus on products required to 
be certified and the content of the certificates to be eFiled. 
Specifically, ULS (104) agrees with the proposed language for Sec.  
1110.5 and CPSC's efforts to make this process as efficient as possible 
for users by listing the applicable rules in the eFiling system.
    Response 11: CPSC retains the proposed Sec.  1110.5 in the Final 
Rule.
    Comment 12: JPMA (99) agrees with the proposed Sec.  1110.5 
clarification that certificates are only required for finished 
products. However, JPMA (99) also writes that proposed Sec.  1110.5 
requires greater definition to reflect that the manufacturing of 
finished products may involve multiple productions of identical 
products or variations unique to different customers that rely upon 
baseline certificates.
    Response 12: Finished product certifiers may rely on applicable 
component part test reports, certification of component parts of 
consumer products, or finished product testing or certification 
procured or issued by another party, per 16 CFR part 1109. However, the 
finished product certifier must still issue its own certificate, either 
based on their own testing, or by relying on the underlying test 
reports and certificates from other parties, such as a manufacturer. As 
described in response to comment 11, the Product Registry aids in this 
process by allowing an importer to give their trade partners the 
ability to upload and certify data on their behalf.

E. Section 1110.7 Who Must Certify Products

    Comment 13: Two commenters (AAFA (111) and RILA (114)) prefer the 
language in Sec.  1110.7 of the existing 1110 rule, which requires 
importers and domestic manufacturers to issue certificates for imported 
and domestically manufactured products, respectively. The commenters 
argue that these entities are better suited for compliance than a 
private labeler, because importers and domestic manufacturers are most 
knowledgeable of the product design and manufacturing process, 
including sourcing of materials, rather than the private labeler, even 
if the private labeler has influence on the product. Commenters further 
claim that CPSC provided no indication that the existing certification 
process is not effectively protecting consumers and that the proposed 
change would improve safety. RILA (114) raises concerns regarding the

[[Page 1810]]

statement in the SNPR that ``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'' (88 FR 
85790), because the current allocation of responsibility amongst 
domestic manufacturers and importers appropriately ensures the products 
are certified prior to entering commerce.
    Three commenters (TA (97), JPMA (99), and NAM (113)) do not support 
the requirement that each importer is responsible for submitting 
certificate information for imported products. Instead, these 
commenters assert that responsibility should fall on the product 
manufacturer or private labeler, unless unavailable, in which case the 
importer of record would be reasonably expected to certify. The TA (97) 
asserts that CPSC is not recognizing the real-world supply chain, where 
multiple importers may source from the same independent manufacturer, 
who would ultimately be responsible for product compliance. JPMA (99) 
cites the CPSA that ``every manufacturer [. . .] shall issue a 
certificate.'' JPMA (99) and NAM (113) further request that the rule 
clearly state that downstream customers of manufacturers and private 
labelers may rely on such certificates without having to independently 
file duplicative certificates. JPMA (99) believes that certification 
should be permitted from a corporate representative.
    Response 13: Pursuant to section 3(a)(11) of the CPSA, the term 
``manufacturer'' means ``any person who manufactures or imports a 
consumer product.'' To address commenter confusion, the Final Rule 
restates this statutory definition in Sec.  1110.3. Based on this 
definition, importers have been responsible for certifying imported 
products since promulgation of the original part 1110 rule in 2008. 73 
FR 68328, 68331 (Nov. 18, 2008). CPSC understands that manufacturers 
supply products to different importers. Accordingly, since 2011, under 
16 CFR part 1109, importers have been able to rely upon testing and 
certification conducted by another party, including a manufacturer or 
private labeler, to issue their own product certificates. 76 FR 69546, 
69580 (Nov. 8, 2011). Therefore, as explained in section V.D of this 
preamble, CPSC maintains the existing requirements, and as re-proposed 
in the SNPR, that the importer be responsible for certifying imported 
products. Importers are in the best position to certify imported 
consumer products because importers know when a consumer product is 
imported into the United States and must comply with U.S. laws and 
regulations, and importers are responsible for ensuring that imported 
products comply with all applicable requirements. We note that CPSC 
generally holds responsible for certification the party responsible for 
importation, and not an individual representing a certifying party.
    For imported privately labeled products, a private labeler can 
certify a product if the private labeler falls within the definition of 
``importer,'' as defined in Sec.  1110.3. For privately labeled 
domestically manufactured products, the private labeler either must 
certify the products, or ensure that the manufacturer has certified the 
products. Based on commenters' apparent confusion regarding when a 
product is privately labeled, Sec.  1110.3 of the Final Rule restates 
the statutory definition of ``private labeler,'' to reiterate that a 
privately labeled product has no manufacturer information on the 
product or packaging. In that case, neither consumers nor CPSC know 
whether any other party, besides the private labeler, is responsible 
for manufacturing or distributing the product. CPSC appropriately 
places testing and certifying requirements on the private labeler in 
this scenario. However, when a manufacturer's name is on the product or 
packaging, the product is not privately labeled, and the manufacturer 
is responsible for certifying.
    Lastly, we reiterate that pursuant to 16 CFR part 1109, any party 
responsible for testing and certification can rely on component part 
test reports, finished product test reports, certification of component 
parts of consumer products, or finished product certifications that are 
procured or issued by another party, such as a manufacturer or private 
labeler. However, the finished product certifier, such as an importer, 
must still issue their own certificate. As described in response to 
comment 11, for importers, the Product Registry aids in this process by 
allowing an importer to give their trade partners the ability to upload 
and certify data on their behalf. However, the importer remains legally 
responsible for the certificate as stated in Sec.  1110.15.

F. Section 1110.9 Certificate Language and Format

    Comment 14: JPMA (99) agrees with Sec.  1110.9 of the existing 
rule, which provides that certificates may be in hard copy or 
electronic form and must be provided in English, but may also be 
provided in any other language. JPMA (99) disagrees with proposed 
format requirements for electronic certificates in Sec.  1110.9(c), 
stating that a unique identifier that can be accessed online via an URL 
or other electronic means be identified prominently because the product 
packaging is already often cluttered.
    Response 14: Section 1110.9(c) regarding electronic certificates 
only applies to domestically manufactured products, not to imported 
products where eFiling is required. The SNPR did not propose to require 
that the unique identifier be provided only on consumer packaging. 
Rather, the SNPR proposed that a unique identifier be identified 
prominently on the finished product, shipping carton, or invoice. The 
requirement for a unique identifier that is available via a URL or 
other electronic means is not a new concept; this option has been in 
the existing part 1110 since 2008. The Commission maintains Sec.  
1110.9(c) of the SNPR in the Final Rule, because the proposal provides 
three options for certifiers, stating that ``an electronic certificate 
meets the [availability] 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. . . .'' Hard copy certificates, such as 
PDF and paper certificates, remain an option for domestically 
manufactured products pursuant to Sec.  1110.9(b).
    Comment 15: JPMA (99) requests that CPSC affirmatively allow for 
password protection in Sec.  1110.9 to maintain the confidentiality of 
proprietary competitively sensitive information.
    Response 15: The SNPR proposed to allow for password protection of 
certificates in Sec.  1110.9(c), which primarily applies to electronic 
certificates for domestically manufactured products. CPSC maintains 
this allowance in the Final Rule, stating ``[i]f the electronic 
certificate is password protected, the password must be provided at the 
same time as the certificate when requested by CPSC or CBP.''

G. Section 1110.11 Certificate Content

    Comment 16: JPMA (99) argues that the unique ID and description 
required in the SNPR should be permissible and not mandatory, because 
eFiling should be optional.
    Response 16: The Final Rule requires eFiling for imported products 
that are regulated by CPSC. This is necessary to achieve the objectives 
of eFiling, including enabling more effective targeting of violative 
imported products. The Final Rule also maintains the proposal in Sec.  
1110.11(a)(1) for the unique ID and product description for all 
certificates, for domestic and imported products, so that CPSC can 
better track certificates and match them

[[Page 1811]]

to consumer products, including certificates received in person, 
through email, through the Product Registry, and through the RAM (Full 
PGA Message Set).
    Comment 17: The AAFA (111) states that the product descriptions on 
customs documents, which are for clarity of Harmonized Tariff Schedule 
(HTS) codes, may not match the descriptions on certificates.
    Response 17: CPSC recognizes that the product descriptions on 
customs documents and certificates may not match. HTS codes can be very 
broad and capture many different products under one code. For this 
reason, the SNPR proposed that certificates contain ``a sufficient 
description to match the finished product to the certificate.'' This 
requirement, as finalized in this rule, allows staff to determine 
whether the attached certificate describes the product being examined.
    Comment 18: The WCMA (106) writes that custom cordless window 
coverings historically have not been subject to CPSC rules that require 
testing and certification, and therefore have not been assigned unique 
identification codes. To comply with this SNPR and the Reese's Law 
Direct Final Rule (88 FR 65274 (Sept. 21, 2023)), WCMA states, the 
window covering industry will need to invest significant resources in 
upgrading software systems and manufacturing processes to permanently 
affix or imprint a new unique product identifier.
    Response 18: Window covering requirements in 16 CFR part 1120 do 
not require testing and certification, however, window coverings that 
contain a button cell or coin battery are required to meet 16 CFR part 
1263, which requires testing and certification of the battery 
compartment. Nothing in the SNPR or this Final Rule requires a product 
identifier that distinguishes between products that contain a button 
battery and those that do not, or that products permanently affix or 
imprint such a product identifier on the product. Existing model 
numbers that are placed on the certificate and found somewhere on the 
product, shipping carton, or invoice, that assist CPSC to match 
certificates with a product, are sufficient. Note that eFiled 
certificates for imported window coverings will already be matched to 
the shipment using CPSC's PGA Message Set. Only electronic certificates 
for domestically manufactured products need to meet Sec.  1110.9(c).
    Comment 19: Several commenters (Boppy (109), Newell (110), LA 
(116), WIMA (118)) disagree with the requirement of providing the 
manufacturer's name, street address, and contact information, because 
this information is highly confidential and public disclosure could 
severely impact business operations. Boppy (109) is further concerned 
whether eFiled certificates will be placed in a publicly searchable 
database or available through a Freedom of Information Act (FOIA) 
request. A commenter states that in the event CPSC requires the name of 
the foreign manufacturer, then the Commission could always request that 
the information be provided with a CPSA section 6(a) submission.
    Several commenters (AFSL (94), NFA (95), APA (101), FOA (102), APE 
(105)) argue that the manufacturer email address and phone number 
should not be provided, because in the fireworks industry, this 
information is protected by a ``middleman'' to prevent customers from 
purchasing directly from the source. By requiring this information, 
importers risk losing their current relationship.
    The AAFA (111) states that the expansion to the full mailing 
address is unnecessary and duplicative, because the customs 
documentation already contains the country of origin and foreign 
manufacturer information on entry documents and the certificate has 
contact information.
    Two commenters (TSC (85 and RILA (114)) argue against including the 
manufacturer email address and phone number, because those contacts 
could be unreliable, including potential language barriers, and the 
contact may change frequently. RILA (114) recommends CPSC first contact 
the IOR or the Product Registry Business Account Administrator before 
contacting the manufacturer.
    Response 19: As explained in section V.F of this preamble, CPSC 
maintains the requirement for certifiers to provide the manufacturer's 
name, street address, email address, and phone number, because this is 
consistent with section 14(g)(1) of the CPSA, which requires that each 
certificate contain ``each party's name, full mailing address, [and] 
telephone number.'' We also note that section 16(c)(1) of the CPSA (15 
U.S.C. 2065(c)(1)), requires that when requested by a ``duly 
designated'' CPSC employee, every importer, retailer, or distributor of 
a consumer product must identify the manufacturer of that product by 
name, address, or such other identifying information as the officer or 
employee may request, to the extent that such information is known or 
can be readily determined by the importer, retailer, or distributor. In 
this case, the Commission is requesting the manufacturer's name, 
address, and contact information by rule.
    Accordingly, the Final Rule requires certifiers to provide the 
manufacturer name, full mailing address, phone number, and email to 
CPSC on the certificate. CPSC should not have to request the 
information via a section 6(a) submission,\27\ because these data 
elements are statutorily required and necessary for CPSC's risk 
assessment and targeting. CPSC cannot conduct effective risk 
assessments at the ports without all relevant data points. The country 
of origin and foreign manufacturer information on entry documents is 
not sufficient, because CPSC has a different definition for 
``manufacturer'' than CBP. CBP's required ``Manufacturer Identification 
Code'' or ``MID'' is a code, not a name, and is not necessarily linked 
to the name of the foreign manufacturer. For example, a MID can 
identify a foreign supplier. Compare 15 U.S.C. 2052(a)(11) (CPSC's 
definition of ``manufacturer'') with 19 CFR part 102 (explaining how to 
construct a MID code for entry documents).
---------------------------------------------------------------------------

    \27\ See 15 U.S.C. 2055(a) (describing procedures for potential 
disclosure of confidential information).
---------------------------------------------------------------------------

    The certificate data provided is secured by CPSC and neither the 
Product Registry nor RAM are publicly searchable databases. The Product 
Registry has industry-standard security features like encryption and 
token authorization, as further explained in the response to comment 
49. When a FOIA request is filed, importers, domestic manufacturers, 
and private labelers who are required to issue certificates are first 
given the opportunity to assert confidentiality before such information 
is released. Manufacturer information on a certificate would not be 
released pursuant to a FOIA request as long as the certifier makes out 
that the information is confidential under section 6(a) of the CPSA.
    Certificates must be furnished to retailers and distributors in 
accordance with section 14(g)(3) of the CPSA (15 U.S.C. 2063(g)(3)). 
Section 1110.13(b) of the SNPR, which is maintained in the Final Rule, 
simply restates this statutory requirement. However, the Final Rule 
does not dictate how a finished product certifier must furnish a 
certificate to retailers and distributors. Certifiers, retailers, and 
distributors may decide, based on business relationships and needs, how 
to proceed. For example, CPSC is aware that some certifiers redact 
manufacturer information from certificates before providing them to 
retailers and distributors. As long as

[[Page 1812]]

certificates provided to CPSC are complete and contain all required 
information, CPSC takes no position at this time on whether 
manufacturer information must be provided to third parties, unless 
safety or the testing and certification regime is compromised in some 
way.
    Contact information for test data in Sec.  1110.11(a)(4) may be a 
generic email address and telephone number, as long as it is actively 
monitored by a knowledgeable person and the certifying firm is 
responsive within 24 hours of CPSC's initial contact. Furthermore, 
staff will primarily contact the finished product certifier (who should 
be the Business Account Administrator in the Product Registry) first, 
but may need to contact the manufacturer if the certifier is non-
responsive or if staff uncover a greater product issue with the 
manufacturer. Manufacturers often supply consumer products to more than 
one importer, retailer, or distributor.
    Comment 20: The ASFL (94) states that the ``initial date of 
manufacture'' in Sec.  1110.11(a)(5) is unattainable and recommends 
that the manufacturing date listed on the receipt or similar document 
should be the date provided.
    Response 20: The ``initial date of manufacture'' means the month 
and year, at a minimum, for products manufactured over a series of 
days. Testing is typically conducted for a batch or production lot of 
products; therefore, the certifier should know which production lot the 
testing covers when the certifier creates a certificate based off that 
testing. Accordingly, for the Final Rule, CPSC maintains the 
requirement in Sec.  1110.11(a)(5) for the ``initial date of 
manufacture'' when describing production lots.
    Comment 21: The AAFA (111) and RILA (114) recommend eliminating, in 
Sec.  1110.11(b), the optional data field of a URL or other electronic 
means to access supporting records, such as test records, because the 
Product Registry will have all the necessary information to confirm the 
certificate and many test reports contain out-of-scope and confidential 
business information. Commenters state that CPSC should instead 
communicate directly with the importer.
    Response 21: Part 1110 applies to certificates for all consumer 
products, including those that are domestically manufactured. However, 
only certificates for imported consumer products must be eFiled. 
Moreover, the information specified in Sec.  1110.11(b) is optional for 
all certificates. CPSC staff advises that regardless of whether the 
certificate is hard copy, electronic, or eFiled, having immediate 
access to test data is more efficient for the agency than having to 
contact the importer, manufacturer, or broker with additional questions 
or to request test documentation. Because this information is optional 
on a certificate, CPSC maintains the test report URL field in the Final 
Rule.
    Comment 22: JPMA (99) supports maintaining the requirement in Sec.  
1109.11(a)(6) to provide the date when the finished product was tested 
for compliance.
    Response 22: CPSC agrees and maintains this requirement in the 
Final Rule.
    Comment 23: The AAFA (111) and JPMA (99) agree that generic contact 
information proposed in the SNPR should be acceptable.
    Response 23: CPSC agrees and maintains this concept as proposed in 
Sec.  1110.11(a)(4) of the Final Rule.
    Comment 24: The AAFA (111) asks CPSC to provide clarity as to how 
eFiling would work in the case of multiple production lots, produced in 
different months, where the product is being imported at different 
times with no material change.
    Response 24: One certificate can cover multiple production lots 
subject to the same test results, as long as there is no material 
change, as defined in guidance found on CPSC's website. Therefore, one 
certificate can cover many identical products manufactured over an 
extended period. For that reason, CPSC clarified in the SNPR that the 
certificate must contain the month and year of the start date of the 
series of manufacturing.
    Comment 25: PPAI (119) asks for clarity regarding the duplicative 
testing statement in proposed Sec.  1110.11(d). PPAI asks how this 
requirement applies to separate rules, standards, bans, or regulations 
and generating certificates for different orders involving identical 
products.
    Response 25: The Final Rule maintains the proposal in Sec.  
1110.11(d) regarding duplicative testing, but clarifies that the rule 
for ``duplicative testing'' means that the same third party test does 
not need to be conducted more than once on each sample, when the same 
test is required by another applicable rule. CPSC included Sec.  
1110.11(d) in the NPR and the SNPR because some test laboratories were 
charging manufacturers to conduct the same test twice, when the test 
was required by two separate rules applicable to a children's product. 
To reduce burden, CPSC clarifies in Sec.  1110.11(d) that this type of 
duplicative testing is unnecessary; one test to the same requirement in 
overlapping regulations is sufficient. Thus, 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.
    The potential for duplicate testing applies primarily to children's 
products, where CPSC has long-standing requirements, such as lead, 
phthalate, and small part requirements, but has also established rules 
for specific products that also may require a chemical or small parts 
test, such as the rule applicable to toys in 16 CFR part 1250. For 
example, if a toy is already tested to section 4.6 of the ASTM 
International (ASTM) F963 Toy Standard for small objects, codified in 
16 CFR part 1250, duplicative testing for small parts does not need to 
be conducted again to meet 16 CFR part 1501. A certificate should list 
both citations for part 1250 and part 1501, although only one test must 
be conducted.
    The duplicate test clarification in Sec.  1110.11(d) has no bearing 
on certificates for different orders for the same product. Each product 
certificate must list all applicable rules, but the same certificate 
may be used for repeated shipments of the same product, so long as 
there is no material change to the product. A material change is a 
change that could affect compliance, such as a different manufacturing 
facility or source of raw materials. Most certifiers test continually 
manufactured products at least once a year. CPSC purposely developed 
the Product Registry to allow a single certificate to be used more than 
once, every time the same product is imported. Thus, when a product has 
been tested and certified, and has not undergone a material change, 
importers eFiling the certificate data can reference the same 
certificate in the PGA Reference Message Set for the same product, 
regardless of the shipment's recipient or purchaser.
    Comment 26: The TA (97) and JPMA (99) disagree with the requirement 
for certifiers to specify each applicable section of ASTM F963, which 
they allege is beyond what is required by the CPSA and 16 CFR part 1110 
and further complicates the data set for manufacturers. The TA (97) 
also states that the ``sectional applicability'' is specifically 
directed to toys subject to ASTM F963, but not to any other rule.
    IKEA (123) supports identifying individual sections of ASTM F963, 
because this requirement improves controls on U.S.-bound shipments. 
However, IKEA (123) requests that the year of adoption be included in 
the citation code that incorporates an ASTM

[[Page 1813]]

standard by reference (e.g. ASTM F963-17 or ASTM F963-23), because if 
revisions occur to the standard, then it would be impossible to 
determine if the linked test report is issued for the right standard.
    Response 26: Through the Product Registry and CPSC's CATAIR and 
guidance documents, the Final Rule maintains the requirement for 
finished product certifiers to list on a certificate the citation for 
each individual section of ASTM F963 to which a toy is tested and 
certified. This is not a change to the existing procedure; CPSC has 
long required that certificates identify which sections of ASTM F963 
apply to each toy on a certificate, because staff need to know what has 
been tested to determine product compliance. Certifiers are, and have 
always been, responsible for knowing which tests for compliance apply 
to their products and for listing them on their test reports and on 
their certificates. ASTM F963, as incorporated into part 1250, is 
broader than other voluntary standards incorporated into CPSC rules, in 
that the standard and mandatory rule apply to many different types of 
toys with different associated hazards. Other CPSC regulations 
generally apply to one product type with characteristic hazards, such 
as the rules for full-size cribs or strollers. CPSC has addressed the 
fact that ASTM F963 contains requirements for many types of toys since 
2008 when the CPSIA mandated F963 as the mandatory toy standard. Citing 
only ASTM F963 on a certificate does not provide sufficient information 
to CPSC about the product or its compliance with the rule, because toys 
are tested to individual subsections of ASTM F963 and not to the entire 
standard.
    Moreover, toys are required to be third party tested by an 
International Organization for Standardization (ISO)-accredited 
laboratory whose accreditation has been accepted by CPSC. These testing 
laboratories do not conduct every test in ASTM F963 on every toy; 
manufacturers and testing laboratories must know which tests in ASTM 
F963 apply to each toy, and such tests are listed on the test reports. 
Thus, the Final Rule is consistent with current CPSC practice and will 
allow CPSC to more easily enforce the existing requirement to list all 
applicable ASTM provisions.
    Importantly, the benefits of eFiling for CPSC would be diminished 
without knowing which tests within ASTM F963 apply to each toy. CPSC 
will be able to target and assess risk based on the regulatory 
citations. Also, test laboratories are CPSC-accepted based on the 
particular provision of ASTM F963 to which they are ISO-accredited, and 
not generally for all tests within ASTM F963. Therefore, the 
certificate must identify the relevant ASTM subsection in order for the 
RAM to audit that citation against CPSC's testing laboratory 
credentialing information.
    Regarding periodic updates to the ASTM standard, CPSC requires 
compliance with a revised ASTM standard upon the effective date of a 
rule incorporating the standard, for all products manufactured after 
the effective date (or as otherwise stated in a rule), unless the 
revision's effective date occurs by statute. See, e.g. 15 U.S.C. 
2056b(g). Other regulations will also change over time and incorporate 
new versions of a voluntary standard as such standards are revised. Any 
product manufactured after the effective date of a revised rule 
incorporating a voluntary standard must comply with the updated rule. 
Therefore, CPSC would expect that a certificate with a product 
manufacture date on or after the effective date of a rule to comply 
with the revised mandatory standard, which can be confirmed by 
reviewing the test date and/or the associated test report. For 
administrative efficiency and burden reduction, however, CPSC is not 
mandating addition of the year to the ASTM citations at this time, and 
will rely on the data points on a certificate for targeting.
    Comment 27: Two commenters (TA (97) and JPMA (99)) claim that 
exemptions and exclusions do not need to be cited on a certificate of 
compliance, because they are assumed if a citation is not listed on the 
certificate. Thus, CPSC should not require the citations of exemptions 
or exclusions. IKEA (124) claims that this requirement of citing 
exemptions and exclusions increases reporting burdens.
    Response 27: The Final Rule retains the proposal that certificates 
include citations for testing exemptions or exclusions. Section 
14(a)(1)(B) of the CPSA states that the certificate ``shall specify 
each rule, ban, standard, or regulation applicable to the product.'' 
Accordingly, certificates must list each rule to which the product is 
subject. For each rule listed on the certificate, the certifier should 
list the firm or testing laboratory that conducted such test. However, 
some rules contain testing exceptions for certain products or product 
characteristics, and no testing is required. Thus, for completeness and 
to avoid unnecessary investigations of shipments that are in fact 
compliant due to an exemption or exclusion, the certificate should 
either provide the name of the testing laboratory that conducted 
testing, or state why the product was not tested. All possible testing 
exemptions and exclusions are codified in a statute or within the 
applicable regulation. This provision aids CPSC in targeting and 
enforcing test requirements. CPSC's eFiling Document Library contains a 
detailed list of CPSC's rules and all associated codes for testing 
exclusions within each rule that CPSC expects to appear, as applicable, 
on a certificate.
    Comment 28: RILA (114) recommends that CPSC create a list of 
products subject to exemptions, which importers could reference when 
determining if they need to create a certificate. IKEA (123, 130) and 
RILA (126) additionally request that CPSC address the certificate 
requirements, which they term ``reporting logic,'' \28\ on all products 
in its jurisdiction and publish a clear and publicly available list of 
flagged HTS codes. IKEA (123) additionally provided several products 
for which they request clarification of the certificate requirements, 
and also recommend that CPSC establish a working group with industry to 
establish clear guidance for eFiling reporting logic. IKEA (130) also 
recommends that CPSC provide immediate notice of all HTS Codes that 
CPSC will flag in CBP's Automated Broker Interface (ABI) as part of the 
eFiling initiative to provide time for industry to design their eFiling 
systems. IKEA (130) recommends that CPSC finalize the CATAIR guidance 
on or before finalizing a rule and provide a 6-month implementation 
period for any subsequent changes to this guidance. ITI (125) states 
that CPSC has not addressed how eFiling will work with respect to the 
business relationships involved for products containing button cell or 
coin batteries.
---------------------------------------------------------------------------

    \28\ IKEA (130) defines ``reporting logic'' as ``the methodology 
for resolving reporting uncertainties, often related to products for 
which CPSC exercises enforcement, but permits exemptions or 
exclusions from regulation.''
---------------------------------------------------------------------------

    Response 28: Before the SNPR published, CPSC created and posted on 
its website a list of HTS codes, citations, testing exclusions, and 
CPSC's CATAIR guidance.\29\ CPSC will continue to update citations and 
testing exclusions when promulgating new regulations or adding or 
changing HTS codes based on updates from the United States 
International Trade Commission (ITC). Certifiers who believe the lists 
are missing any HTS code, citation, or testing exclusions should inform 
CPSC. CPSC will flag HTS codes once the eFiling requirement becomes 
effective. CPSC's CATAIR contains a ``Change

[[Page 1814]]

Log'' to identify updates and will include an ``effective date'' in the 
Change Log. Stakeholders can submit questions or comments on specific 
products or testing and certification to CPSC's eFiling support email 
inbox: [email protected].
---------------------------------------------------------------------------

    \29\ Available at: https://cpsc.gov/eFiling-Document-Library.
---------------------------------------------------------------------------

    Comment 29: Several commenters (BV (92), TA (97), AAFA (111), RILA 
(114, 126), and EAA (131)) state that the requirement to utilize CBP's 
Disclaimer Message Set for non-regulated products within CPSC's 
jurisdiction and for products that are regulated, but do not require 
certification results in ``proving a negative.'' Commenters claim that 
this adds workload to industry, because industry does not track when a 
product does not need a certificate. AAFA (111) claims that this 
requirement reverses CPSC's 2016 enforcement discretion for adult 
wearing apparel. NCBFAA (122) disagrees with the requirement of 
Intended Use Codes for Disclaimer Message Sets, because this differs 
from other PGAs and brokers would need to track down these codes for 
shipments not subject to CPSC, which would be time-consuming and 
costly. EAA (131) states that the disclaim process would negative 
impact operators that clear de minimis shipments off the manifest and 
add unnecessary costs in the supply chain.
    Response 29: As explained in section V.F of this preamble, as a 
matter of policy and to reduce burden, CPSC will not require a 
Disclaimer Message Set for products that do not require a certificate. 
This includes cases where (1) the product is not within CPSC's 
jurisdiction; (2) the product or substance is within CPSC's 
jurisdiction, but no rule, ban, standard, or regulation requiring a 
certificate applies; (3) the product is a component of a consumer 
product or substance that is not intended for sale to consumers, but 
rather for further assembly or manufacturing in the United States; and 
(4) the product is subject to enforcement discretion and no certificate 
is required. While importers do not need to submit a Disclaimer Message 
Set in these situations, they are encouraged to do so because the 
additional information provided to CPSC will inform the staff as to why 
a certificate does not accompany the product. Likewise, Intended Use 
Codes are also optional, but encouraged. Additional guidance on 
Disclaimer Message Sets and Intended Use Codes is available at https://cpsc.gov/eFiling-Document-Library.
    Comment 30: The CTA (103) and the ITI (98) urge CPSC to exclude 
products covered by 16 CFR part 1263 (Reese's Law) from the proposed 
eFiling requirements. They state that the requirement to file a 
Disclaimer Message Set, coupled with CPSC's new regulations for button 
cell and coin batteries, would place an unnecessary burden on 
manufacturers, importers, and CBP. The CTA (103) and ITI (98) express 
concern that the number of electronic products that do not contain 
button cell or coin batteries, such as desktop and laptop computers, 
printers, watches, wireless headphones, calculators, games, and lights, 
would be captured by broad HTS codes and then require a Disclaimer 
Message Set. The CTA (103) states that this will result in unnecessary 
shipment holds and delays, increasing costs for consumers, which would 
work against the country's efforts to fight inflation. The ITI (98) 
states that any HTS code changes requested by CPSC should have a 12-
months' advance notice.
    Comverex (117), however, does not support an exclusion and argues 
that while the number of associated Disclaimer Message Sets for 
products with button cell and coin batteries could be large, the 
Citation Code and Intended Use Code data set is small. Comverex states 
that, in particular, Reese's Law would include some filers that have no 
product requiring certificates to disclaim. Comverex asserts that 
regardless of the software platform, importers can readily identify all 
products that contain these batteries, which they must now do by law, 
and as a result identify all products that do not. Comverex believes 
that for retailers, the ability to know may be a challenge; however, 
they can utilize their lab testing partners to identify products that 
contain button cell batteries, and by default which products do not, 
and update their internal product data accordingly. Comverex states 
that for large retailers, APIs could be readily developed to eliminate 
corresponding data entry.
    Response 30: As stated in response to comment 29, as a matter of 
policy and to reduce burden, the Final Rule does not require filing 
Disclaimer Message Sets not only for products outside of CPSC's 
jurisdiction, but also for products within CPSC's jurisdiction but not 
regulated, alleviating CTA (103) and ITI (98) concerns. Regarding 
products containing button cell or coin batteries subject to 16 CFR 
part 1263, at CPSC's request, the ITC created additional HTS codes to 
address these products. Though not required, CPSC encourages importers 
to file a Disclaimer Message Set when appropriate, to better inform 
CPSC as to why the product is not accompanied by certificate data.
    Comment 31: BV (92) recommends adding a ``disclaimer code'' to the 
Product Registry, which will allow for the same information flow for 
all products, while reporting the needed details.
    Response 31: The Final Rule does not require a Disclaimer Message 
Set. Accordingly, CPSC does not intend to build a ``disclaimer code'' 
feature in the Product Registry. At this time, the Product Registry is 
intended to store certificate data for regulated products, and not to 
store data associated with products that do not require a certificate.
    Comment 32: Many commenters (RILA (114), AFSL (94), AAFA (111), TSC 
(86), NFA (95), APA (101), FOA (102), APE (105), and WFI (107)) state 
that the additional manual certification in the Product Registry is a 
redundant requirement and an unnecessary burden when using API or a CSV 
template to upload data in bulk. Commenters contend that manual 
certification requires an individual to go back into the Product 
Registry and manually certify each certificate with no additional 
consumer protection.
    RILA (114) recommends three alternatives to manual certification in 
the Product Registry: (1) requiring users to attest that the 
certificate data is true and correct upon initial access of the Product 
Registry; (2) requiring users to attest to the certificate data upon 
each instance of accessing the Product Registry; or (3) requiring 
importers to periodically (annually or biannually) attest to the 
certificate data upon login. The ASFL (94) similarly recommends 
requiring users to review and accept terms each time the company logs 
into the Product Registry.
    Comverex (88) recommends that the attestation requirement be 
satisfied when a user's software enters certificate data into the 
Product Registry via an API, because their platform already confirms 
attestation by their clients regarding the data accuracy requirements 
of proposed Sec.  1110.11(a)(10).
    Finally, several commenters (AFSL (94), TA (97), JPMA (99)) state 
that additional manual certification is legally unnecessary, because 
Sec.  1110.15 clearly states the legal responsibility of the certifier 
and Sec.  1110.11 already requires identification of the certifier and 
attestation to the truth and accuracy of the information provided. 
Commenters argue that the Commission is amply protected and has more 
than adequate ability to enforce against a company with the authorities 
of 15 U.S.C. 2068(a)(13), 19 U.S.C. 1592, and 18 U.S.C. 1001. Lastly, 
the AFSL (94) writes that the Commission has not supported the need for 
additional

[[Page 1815]]

manual certification by identifying an entity that purposely misstated 
information on a certificate and CPSC acknowledged multiple existing 
possible enforcement actions.
    Response 32: We agree with the commenters. As explained in section 
V.F of this preamble, CPSC will automate attestations for bulk 
certificate upload into the Product Registry via API or the CSV 
template and will not require individual attestation of certificates. 
Such attestation options will reduce the burden for industry, while 
also confirming for CPSC that importers are knowledgeable about the 
certificate information filed. Bulk attestation options will only apply 
to users with certification permissions. If certificate data is entered 
into the Product Registry by a user without certification permissions, 
such as by a third-party user, then a Business Account Administrator 
will have to manually certify the certificates, although groups of 
certificates can be certified at one time. Additionally, consistent 
with the SNPR, Sec.  1110.15 of the Final Rule clarifies the legal 
responsibility for finished product certifiers, stating that finished 
product certifiers can rely on the testing or certification of other 
parties pursuant to part 1109, but remain legally responsible for the 
information on a finished product certificate, including its validity, 
accuracy, completeness, and availability.
    Comment 33: The PPAI (119) asks which entity is to attest to each 
certificate.
    Response 33: The attestation required in Sec.  1110.11(a)(7) must 
be made by the entity responsible for product certification identified 
in Sec.  1110.7, the defined ``finished product certifier.'' In the 
Product Registry, the finished product certifier is owner of the 
Business Account, meaning the importer, that must certify/attest that 
the information in the certificate is true and accurate. Trade partners 
entering data on behalf of an importer must also attest to the veracity 
of the information. Even when an importer allows another party to enter 
data, or to certify products in the Product Registry, the importer 
remains accountable for the information on a certificate.

H. Section 1110.13 Certificate Availability

    Comment 34: Several commenters (Alta (93), JPMA (99), Boppy (109), 
Newell (110), and NAM (113)) oppose changes to Sec.  1110.13 regarding 
the availability of certificates, arguing that the current ``upon 
request'' system is sufficient and that CPSC did not show that it is 
insufficient to justify the eFiling system. JPMA (99) argues that the 
current system reflects the legislative intent of Congress in enacting 
the CPSA. NAM (113) further argues that the ``upon request'' 
requirement in the CPSA is distinct from a ``eFiling'' requirement for 
certificates.
    Response 34: As explained in detail in the 2013 NPR, the SNPR, and 
in section V.G of this preamble, sections 14(g)(3) and 14(g)(4) of the 
CPSA provide CPSC the authority to 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 or uploaded 
via the ACE Document Image System (DIS), 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, Sec.  1110.13 of the Final Rule 
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. An eFiled certificate would meet 
the ``accompany'' requirement in section 14(g)(3) of the CPSA and the 
requirement in Sec.  1110.13(a).
    Comment 35: The AAFA (111) disagrees with the SNPR's proposal that 
each certificate must describe a single product, because in the apparel 
and footwear industry, one unique identifier is used for a single style 
that may have many variations that do not affect the overall 
certification. AAFA argues that no regulatory goal is served by 
requiring that each certificate describe a single product.
    Response 35: CPSC proposed in the SNPR that each certificate 
describe a single product to improve CPSC's enforcement efforts. If a 
potential violation were found, then CPSC could take action against 
that one product. If multiple products appear on one certificate, this 
may disrupt importation of compliant products that appear on the same 
certificate as a potentially non-compliant product.
    However, regarding apparel and footwear, CPSC clarified in response 
to comment 53 in the SNPR that multiple models of apparel and footwear 
that were composite tested together are considered one product for 
certificate purposes. Therefore, apparel model variations that do not 
affect certification can appear on one certificate as long as there is 
no material change, which is defined in 16 CFR 1107.2 as ``any change 
in the product's design, manufacturing process, or sourcing of 
component parts that a manufacturer exercising due care knows, or 
should know, could affect the product's ability to comply with the 
applicable rules, bans, standards, or regulations.''
    Comment 36: Two commenters (TA (97) and PPAI (119)) argue that CPSC 
is doubling the certificate burden by supposedly requiring certificate 
data to be entered in the Product Registry in one format while 
requiring certificates be provided to CPSC and furnished to 
distributors and retailers in another format such as PDF. This would 
require importers to maintain two parallel sets of effectively 
identical certificate data. And if manufacturers certify, instead of 
importers (as proposed by the TA (97)), then manufacturers would have 
to maintain a third set of certificate data containing the reference 
identifier to be submitted via ACE.
    Response 36: Importers using the Product Registry can download 
certificates in a PDF format, which can then be furnished to retailers 
and distributors. Users can also download certificate data in a CSV 
file, where each row of the spreadsheet is a certificate, which can be 
furnished to retailers and distributors. This functionality of the 
Product Registry will eliminate any alleged need for importers to 
maintain parallel sets of data. Moreover, while manufacturers can enter 
certificate data into the Product Registry and certify on behalf of an 
importer, the importer is legally responsible for the certificate data 
for products they import and must follow the requirements in part 1109, 
meaning they should exercise due care in reliance on a manufacturer's 
testing and certification, as required in part 1109.
    Comment 37: The PPAI (119) states the SNPR will create a 
troublesome administrative burden for firms, by increasing the number 
of certificates, housing the certificates in internal systems, and 
integrating the certificates with companies' existing shipping 
software. Requirements of the SNPR will be especially challenging when 
``kitting'' or ``bundling'' multiple products into one product, such as 
a gift basket, because each product in the ``kitted'' box would require 
a unique certificate. Comverex (89) states concerns about the potential 
for dozens of applicable test reports from various CPSC-accredited labs 
for ``kitted'' children's products and requests confirmation from CPSC 
that the Product Registry, and the corresponding API, will support this 
type of data volume.
    Response 37: Like the SNPR, the Final Rule does not add any new 
certification requirements to products that

[[Page 1816]]

previously did not require a certificate. Therefore, the number of 
certificates an importer must issue and associated records remain the 
same. And, as it is today, importers may provide one certificate for 
``kitted'' or ``bundled'' products, covering all individual products, 
or provide multiple certificates for the product, where each 
certificate covers an individual product in the ``kit'' or ``bundle.'' 
Furthermore, CPSC is not dictating that importers integrate 
certificates with existing shipping software. CPSC is providing the 
Product Registry to make management of certificates and certificate 
data more efficient for any importer. Certificate data entered into the 
Product Registry can contain multiple citations and testing 
laboratories. Therefore, CPSC designed the Product Registry to 
accommodate the volume of data for ``kitted'' and ``bundled'' products.
    Comment 38: RILA (114) asks for clarity regarding ``up to 24 hours 
before arrival'' and recommends that CPSC clarify that certificate 
information can be transmitted in a timeframe prior to arrival 
consistent with CBP's regulations and as late as 24 hours prior to 
arrival.
    Response 38: CPSC interprets ``up to 24 hours before arrival'' to 
mean as late as 24 hours prior to arrival, in agreement with the 
commenter. This means that the PGA Message Set must be filed with the 
entry or entry summary, if both are filed together, as late as 24 hours 
prior to arrival.
    Comment 39: RILA (114) and AAFA (111) recommend a 48-hour response 
time to provide additional documentation to align with existing 
programs using PGA Message Sets. Furthermore, RILA (114) and AAFA (111) 
question what additional information a paper or electronic certificate 
could provide, because all the information should be provided via 
eFiling.
    Response 39: CPSC retains a 24-hour response time for additional 
documentation. The Commission interprets the word ``immediately'' 
consistent with other CPSC rules, to mean ``within 24 hours.'' 78 FR 
28080; 28089; 88 FR 85760, 85782. Therefore, CPSC disagrees with 
extending the response time to 48 hours. Because eFiled certificates 
replace paper certificates for imported products, CPSC would typically 
only request supporting documents, such as test reports, from an 
importer to verify the data on an eFiled certificate. However, CPSC 
could ask for either a paper certificate or test reports to validate 
the information on the certificate, or when the required certificate is 
not eFiled. CPSC and CBP retain the right to request a certificate, but 
agree that if a certificate is eFiled, the need for an additional 
certificate is unlikely.

I. Section 1110.15 Legal Responsibility for Certificate Information

    Comment 40: JPMA (99) supports the proposed Sec.  1110.15 that 
another entity may maintain an electronic certificate platform on 
behalf of the certifier.
    Response 40: The Final Rule retains this provision.

J. Section 1110.17 Recordkeeping Requirements

    Comment 41: The JPMA (99) writes that the proposed Sec.  1110.17 
maintains the recordkeeping requirement from the 2013 NPR. CPCs already 
have a five-year record retention period.
    Response 41: Pursuant to 16 CFR part 1107, CPCs and supporting 
records already have a five-year record retention period. The Final 
Rule retains the proposal that GCC's and supporting records also be 
maintained for five years. We note that for imported products, a five-
year record retention period is consistent with CBP's recordkeeping 
requirement.

K. Special Use Case: De Minimis and International Mail Shipments

    Comment 42: Two commenters (TA (97) and NAM (113)) request that 
CPSC revise the scope of the proposed rule to explicitly exclude any 
noncommercial consumer import of products into the United States, 
whether or not for personal use or enjoyment, and expressly state a 
lowered de minimis level. By not doing so, they assert that any gift 
sent as a mail shipment from outside the United States would require a 
certificate, imposing a burden on a consumer sending the product. 
Furthermore, the commenters claim that CPSC would have no way of 
determining non-conformance to the eFiling requirement for 
international mail shipments that may arrive before CPSC could review 
them, resulting in an increased burden to the United States Postal 
Service (USPS) and penalizing those entities who do comply. 
Furthermore, the NCBFAA (122) states that importers of de minimis 
shipments are unlikely to be able to manage the Product Registry 
process and will rely on the Full Message Set, which they assert will 
be a costly and unrealistic undertaking for low-valued shipments. 
NCBFAA encourages CPSC to work with the trade industry to overcome 
these challenges.
    Response 42: The CPSA does not provide a de minimis exemption for 
certificates. eFiling requirements apply to regulated finished 
products, regardless of value. Importers of regulated finished products 
requiring a certificate that are eligible for the de minimis duty 
exemption under 19 U.S.C. 1321(a)(2)(C) must use ET 86 to file CPSC's 
Message Set at entry. However, the Final Rule does not require eFiling 
of a certificate for noncommercial products sent from one consumer 
overseas to another consumer in the United States, such as a gift. CPSC 
agrees that the consumer sending the shipment will not have the ability 
to obtain the certificate. Brokers or carriers facilitating these 
shipments may, but are not required to, file a Disclaimer Message Set, 
based on the guidance provided by CPSC, to inform CPSC that the 
shipment does not require a certificate. For non-gift shipments sent 
via international mail, the sender will need to file a certificate into 
the Product Registry before the shipment arrives in the United States. 
Lastly, CPSC is committed to working with the trade industry, including 
those who primarily import de minimis shipments. CPSC continues to 
develop improvements to the Product Registry to make entering data for 
mail shipments more efficient.
    Comment 43: PeopleForBikes (112) supports the expanded definition 
of ``importer'' that clarifies that, in the case of a direct-to-
consumer shipment, the importer is responsible for certification and 
not the end consumer. The commenter states that too many low-quality 
and inadequately tested products, such as lithium-ion batteries, are 
currently being imported into the United States under the de minimis 
exemption, creating unreasonable and unacceptable safety risks for 
consumers.
    Response 43: CPSC agrees with the commenter but notes that lithium-
ion batteries used in micromobility products are not subject to a CPSC 
mandatory safety rule at this time. However, the definition of 
``importer'' in the Final Rule will impose the eFiling requirement for 
CPSC regulated finished products on the importer, as defined in the 
rule, even for de minimis shipments. For de minimis shipments, the 
importer for purposes of CPSC's certificate requirements is a party 
eligible to make entry for the finished products pursuant to CBP 
statutes and regulations, who may be an owner, purchaser, consignee, or 
authorized customs broker. Also, because a consumer could fall within 
the definition of purchaser or consignee, the definition of 
``importer'' continues to state that for the purposes of this rule, 
CPSC will not typically consider an end consumer purchasing or 
receiving products for personal use or enjoyment

[[Page 1817]]

to be the importer responsible for certification.

L. Special Use Case: Foreign Trade Zones (FTZs)

    Comment 44: Three commenters (RILA (114), NAFTZ (96, 121, 127), and 
IKEA (123, 130)) state importers who import products via an FTZ will 
need additional time to build out infrastructure and troubleshoot 
issues prior to implementation. RILA (114) states that the FTZs' 
``first in first out'' (FIFO) method can only attach the latest 
certificate that is associated with an article/supplier combination and 
not the specific certificate at an actual inventory layer level. The 
NAFTZ (96, 121, 127) and IKEA (123) state that the FIFO method 
(including the FTZ Inventory and Recordkeeping System) uses a Unique 
Identifier (UIN) for virtual inventory and has no relationship to the 
compliance data being reported. RILA (114) claims that CPSC conflates 
the use of FIFO as accounting methodology and virtual inventory 
practice. The commenters claim that FTZ importers will require 
significant changes to their current software to comply with the SNPR.
    IKEA (123) further states that the requirement to file certificates 
at entry summary is not compatible with FTZ procedures, because those 
goods would have already been shipped to stores and possibly sold, 
negating CPSC's ability to place the goods on hold. IKEA (123) adds 
that the eFiling requirement undermines Congress's intent of FTZs and 
many global companies may be forced to stop using FTZs for CPSC 
regulated products, resulting in millions of dollars of costs and 
increased prices for consumers. IKEA states that CPSC is preventing 
companies from storing non-compliant goods inside an FTZ in order to 
bring them into compliance. IKEA (123) encourages CPSC to work with the 
CBP Border Interagency Executive Council (BIEC) to build a single 
window concept inclusive of FTZs and provide a transition period of 24 
months to implement eFiling for FTZ products.
    The NAFTZ (96 & 121) proposes three alternatives for goods imported 
via an FTZ: (1) CPSC accepts the data elements associated with the 
latest certificate of the UIN associated with the weekly entry summary 
Customs Form 7501; (2) specifically for manufacturing/production in 
FTZs, allow the importer to register the certificate with a location 
for exam at the time of manufacture and use a Disclaimer Message Set on 
entry type 06; (3) delay eFiling requirement for FTZs until CBP has the 
capability to accept the certificate on the FTZ admission (CBP Form 
E214), which is the only opportunity to match a certificate with the 
physical items.
    Response 44: The Final Rule retains the proposal in the SNPR that 
FTZ importers must provide the actual certificate for the shipment but 
provides a 24-month effective date for entries for consumption or 
warehousing from an FTZ. Section 14(g)(3) of the CPSA states that 
``every certificate required under this section shall accompany the 
applicable product or shipment of products covered by the same 
certificate.'' Therefore, FTZ importers should already be tracking the 
actual certificate of the product and providing those certificates upon 
request to CPSC. For eFiling to fulfill its purpose, CPSC requires the 
actual certificate data so that the agency can effectively use such 
data for targeting in CPSC's RAM.
    IKEA (123) is incorrect that the certificate must be filed with 
entry summary. The Final Rule requires eFiling 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. Moreover, nothing in the Final Rule prevents a company 
from admitting non-compliant goods into an FTZ for the purpose of 
bringing those goods into compliance. Finished product certificates are 
only required when entering goods for consumption or warehousing into 
United States customs territory from an FTZ. Moreover, regarding IKEA's 
observation that products entered from an FTZ might already be sold, 
all entered merchandise that is released from CBP custody is released 
conditionally, meaning that CBP has 30 days in which to demand 
redelivery if an applicable requirement, including a PGA Message Set 
requirement, has not been satisfied.
    Of the three options for FTZ imports suggested by the NAFTZ (96 & 
121), the third option appears to present the best solution. The first 
option is not compliant with section 14(g)(3) of the CPSA, which 
requires the actual certificate to accompany the shipment. The second 
option does not allow for effective risk assessment and targeting. 
CPSC's RAM needs the data input from the certificate for risk 
assessment of the entry. A Disclaimer Message Set for entry type 06 
would inform CPSC that a certificate was entered in the Product 
Registry, but CPSC would not be able to match a certificate to the 
entry and could not use the data for automated risk assessment.
    The third option suggested by the NAFTZ, to delay eFiling for FTZ 
imports until CBP has the capability to accept certificates for FTZ 
admissions, may present a solution, because eFiling of certificates on 
the CBP Form 214 at the time of admission, which is before entry, meets 
the requirement of section 14(g)(4), ``the electronic filing of 
certificates [. . .] up to 24 hours before arrival of an imported 
product.'' Accordingly, the Final Rule provides a 24-month effective 
date for consumer products imported into an FTZ and subsequently 
entered for consumption or warehousing. CPSC understands that the 
primary delay for eFiling associated with entries from an FTZ is 
related to software solutions. Based on CPSC's experience with eFiling 
for all other entry types, technical solutions involving software are 
feasible. Accordingly, this longer effective date provides a 
significant amount of time for CPSC, CBP, and industry to identify 
technical solutions and develop the necessary software to bring entries 
from an FTZ into compliance with the Final Rule, as further explained 
in section VI of this preamble.

M. Technical, Information Security, Enforcement

    Comment 45: JPMA (99) claims that CPSC is creating its own unique 
``ACE-independent'' system different from an integrated system with CBP 
and asserts that an ``eFiled certificate'' should align with an 
electronic certificate that is submitted via ACE. JPMA (99) argues that 
the Commission should not substitute its requirements for those of the 
Commissioner of Customs and nullify the requirement that certificates 
be available ``upon request'' by CPSC and CBP.
    Response 45: CPSC is not creating a unique ``ACE-independent'' 
system. CBP developed the PGA Message Set specifically to implement the 
``single window'' for collecting all trade-related data required by 
partner government agencies. At least 13 other PGAs have already worked 
with CBP to implement their own Message Sets and CPSC continues to work 
with CBP to implement eFiling.\30\ CPSC has been developing its Message 
Set alongside CBP, during the Alpha Pilot, Beta Pilot, the expanded 
Beta Pilot, and in preparation for this Final Rule.
---------------------------------------------------------------------------

    \30\ See, e.g., CBP's website listing 13 other agency CATAIRs 
and discussing CPSC's Beta Pilot, available at: https://www.cbp.gov/trade/ace/catair.
---------------------------------------------------------------------------

    CPSC also is not substituting its PGA requirements for those of the 
Commissioner of Customs. CPSC consulted CBP at every stage of 
rulemaking, as required by section 14, and conducted pilots in 
collaboration with CBP. The Product Registry is an optional database 
for managing

[[Page 1818]]

certificate data that supplements the PGA Message Set. Stakeholders 
asked for a Product Registry in 2013 after publication of the NPR. CPSC 
has spent the last 11 years working with CBP and industry to develop an 
eFiling solution consistent with CBP systems and procedures and less 
burdensome for the trade.
    Comment 46: Galaxy (90) asks whether their company will be required 
to acquire new software to send the GCC information to their broker.
    Response 46: The Final Rule does not require businesses to change 
software. Some businesses will choose to use the Product Registry to 
enter certificate data, and then provide a certificate reference number 
to their broker upon importation of regulated consumer products, while 
larger companies with more complicated import procedures will likely 
choose to update their software to automate data transfer. Accordingly, 
each importer should decide with their broker whether to use the Full 
Message Set or the Reference Message Set when filing certificate data 
with an entry, and whether providing this information would be more 
efficient with new software to send certificate information to their 
broker.
    Comment 47: Hansen (115) states that most testing of bicycles takes 
place in Asia and asks whether foreign testing laboratories will be 
given access to the Product Registry or ACE to upload data.
    Response 47: The Product Registry is based on Business Accounts 
created by the importer, who may invite any third party (including 
foreign testing laboratories) to enter certificate data into the 
Product Registry on their behalf. Therefore, testing laboratories can 
have access to upload data into the Product Registry if invited by an 
importer. Testing laboratories will not enter data into ACE on behalf 
of importers.
    Comment 48: ITI (125) remarks that the import-centric registration 
methodology in the Product Registry will create a ``logistics 
nightmare'' for U.S. companies that use information and communications 
technology (ICT) equipment and finds the functioning of the tool 
unclear. ITI (125) asks whether a broker that is importing another 
manufacturer's laptop for business use or independent sale would be 
able to freely search the Product Registry or would have to be granted 
viewing rights.
    Response 48: The Product Registry functions on Business Accounts 
created by the importer, who could invite other users from trade 
parties, such as brokers, to collaborate. The Product Registry is not 
publicly searchable; an importer would need to grant permission to 
other users to view a data collection. The importer is responsible for 
providing certificate identifiers to a broker for Reference Message 
Sets associated with every imported shipment. CPSC's website contains a 
Product Registry Guide, along with other important background materials 
on eFiling, at https://www.cpsc.gov/eFiling-Document-Library.
    Comment 49: The TA (97) asserts that CPSC should ensure that the 
Product Registry and all data systems used in support of the rule 
maintain an appropriate level of data security. The TA states that only 
a few entities have accessed the Product Registry and these programs do 
not reflect the complex scenarios that will occur when the program is 
fully rolled out. The TA (97) also states that CPSC did not adequately 
respond in the SNPR regarding the security of the Product Registry, 
when CPSC wrote that it does not prohibit ``password protection for 
certificates furnished to retailers and distributors.''
    Response 49: The Product Registry uses a range of data security 
techniques and best practices to protect user and business information. 
Some notable security features include:
     All eFiled certificate data is encrypted at rest 
(encrypted storage) and in flight (Secure Sockets Layer and other 
secure protocols).
     Authentication to the Product Registry is handled by a web 
access management platform that requires verified ownership of a valid 
email address, which includes standard intruder detection and account 
recovery protocols.
     The Product Registry utilizes a token-based authorization 
scheme and access controls for accounts and roles. These determine 
level-of-access permissions for application components and for 
individual data requests.
     Data is segregated by Business Account and by Product 
Collections. Only users authorized by the Business Account 
Administrators can access the collection-specific data.
    Comment 50: The TA (97) notes that CPSC does not address in the 
SNPR how the risk score is compiled, maintained, and notified, and 
requests more information on the framework to allow for review, 
understanding, and comment. The AFSL (94) writes that confidentiality 
about the factors that the CPSC uses to target shipments for 
examination is counterproductive. The ASFL argues that if CPSC 
publicizes and demonstrates that consistent compliance with 
certification and other requirements yields fewer examinations and 
detentions, this will better meet the Commission's mission of a more 
compliant marketplace. Similarly, RILA (114) and NCBFAA (122) recommend 
CPSC develop a trusted trader program, such as the CBP/CPSC Importer 
Self-Assessment Product Safety Pilot (ISA-PS) program, so trusted 
partners are not unduly targeted and could be exempted from eFiling, 
and so that CPSC resources can be directed to higher risk shipments.
    Response 50: The RAM risk scores shipments using a logarithmic 
model based on data received from sources including the entry document 
and, once fully implemented, from the PGA Message Set. CPSC does not 
share how the risk score is calculated or the risk score itself. This 
information is for official use only, because it is directly related to 
CPSC's targeting and enforcement. CPSC disagrees that confidential 
treatment of this information is counterproductive, because its 
publication could allow nefarious actors to avoid compliance with CPSC 
regulations.
    Importers should consistently file accurate certificate data to 
avoid unnecessary examination holds for compliant products. With use of 
the certificate data, CPSC can improve its targeting models to more 
effectively target shipments with potentially significant violations. 
CPSC will be able to review the certificate data prior to shipment 
arrival, instead of needing to place a shipment on hold to examine it 
for an administrative violation. Certificate data will be one aspect of 
risk scoring. Staff anticipate that importers who consistently provide 
compliant certificate data will see a reduction in their risk scores, 
which may result in fewer holds for exams, fewer warehouse charges, and 
a greater facilitation of trade. At the moment, CPSC is not developing 
a trusted-trader program, because compliant importers may experience 
benefits, such as lower risk scores, from filing compliant certificate 
data.
    Comment 51: The AFSL (94) states that the conclusion of the 
Certificate Study aligns with AFSL's own research, conclusions, 
development of voluntary standards, and testing. The AFSL (94) strongly 
supports the eFiling program and the CPSC's RAM program and strongly 
encourages CPSC to focus its enforcement activities more specifically 
and aggressively on those companies with a history of non-compliance or 
on those companies without an established history of providing a 
certificate within 24 hours of a CPSC request. ASFL argues that 
established and proven testing and certification programs should be 
considered as a ``mitigating factor'' in a company's RAM risk profile.

[[Page 1819]]

    Response 51: CPSC will use results from the Certificate Study and 
Beta Pilot to improve its risk scoring in the RAM and to more 
effectively target non-compliant importers. Certificate data will be 
one aspect of risk scoring. Staff anticipate that companies and 
organizations with established and proven testing and certification 
programs will benefit from lowered risk scores by consistently 
providing compliant certificate data.
    Comment 52: The AAFA (114) and RILA (126) request that CPSC clarify 
whether eFiled certificate data will be a condition of admissibility or 
whether errors will cause shipment delays. The commenters state that if 
eFiling errors will cause delay, this could dramatically disrupt the 
free movement of trade and increase burden on importers.
    Response 52: The lack of a required eFiled certificate, or the 
presence of a false or misleading certificate, will affect a shipment's 
risk score, resulting in a higher likelihood of the shipment being held 
for an exam. CPSC has the authority to refuse admission of products 
that are not accompanied by a certificate or are accompanied by a false 
or misleading certificate. 15 U.S.C. 2066(a)(2). As a matter of 
enforcement discretion, at least in the initial stages of eFiling, CPSC 
in general does not intend to request that CBP deny entry of products 
into the United States solely based on a failure to provide eFiled 
certificate data; however, CPSC fully intends to enforce eFiling 
requirements by taking enforcement action, such as requesting that CBP 
initiate seizure of noncompliant products.

N. Costs, Burdens, the Regulatory Flexibility Act (RFA) and Paperwork 
Reduction Act (PRA)

    Comment 53: Commenters TA (97), JPMA (99), Boppy (109), and NAM 
(113) express concerns about the cost of technology needed to implement 
the Final Rule, including costs to update technology, programing to the 
PGA Message Sets, and setting up API connections.
    Response 53: Commenters are concerned about costs, but they do not 
offer estimates of what the technological costs would be. CPSC built 
the Product Registry to reduce costs for importers, who are not 
required to update software to eFile certificates. The SNPR estimated 
that a portion of mainly larger firms may opt to use API integration 
with the Product Registry for their data systems and the Initial 
Regulatory Flexibility Act Analysis (IRFA) provided an estimate of 
building such a system as $9,750 plus $2,880 in annual maintenance. 
CPSC also queried software developers, who plan to develop an API 
integration with the Product Registry, which would be covered through 
broker fees. Larger importers may still choose to build and maintain an 
API integration to interface with the Product Registry. This is, 
however, not a requirement, as the Product Registry enables users to 
upload a single certificate at a time and multiple certificates via a 
bulk upload. Additionally, the Final Regulatory Flexibility Analysis 
(FRFA) in section VII of this preamble presents an analysis of startup 
costs--the initial labor and technology investments small firms need to 
make to prepare for eFiling--that estimates an average cost per firm of 
$1,086 or an equivalent burden of 20 hours, which CPSC deems as non-
significant for the typical small firm. The Commission solicited 
comments on the number of firms that may choose to invest in new 
technology due to the SNPR and estimates of the size of those 
investments, but responses offered no specific data. As such, CPSC 
retains its estimates of technology investments per firm.
    Comment 54: Commenters Alta (93), AFSL (94), Boppy (109), and PPAI 
(119) allege increased costs associated with additional staff. Boppy 
(109) states an additional $150,000 in costs for technology, staff 
training, fees, and manually filing certificates, but offers no 
itemization of these costs.
    Response 54: Without a breakdown of the costs, CPSC cannot offer a 
more specific response. However, CPSC estimates that importers will 
bear the burden for the staff hours comprising certificate creation, 
disclosure, and recordkeeping, which are already required by statute 
and regulation. Importers would also bear the burden of staff time for 
entering and transmitting certificate data to their brokers. CPSC 
estimates that the average eFiling-related activity, including entering 
every type of message set and the bulk upload of certificates to the 
Product Registry, will take 0.37 minutes (22 seconds) per filing, on 
average. CPSC estimates that importers will conduct 57.5 million total 
filings annually.\31\
---------------------------------------------------------------------------

    \31\ This number of filings is broken down as follows: 2.3 
million Product Registry filings, 1.7 million Full Message Sets, 
46.5 million Reference Message Sets, and 7.0 million Disclaimer 
Message Sets.
---------------------------------------------------------------------------

    We concur that the overall burden to importers can be considered 
significant if presented in the aggregate, for two main reasons: first, 
the large number of filings; and second, the potentially elevated one-
time start up investments in technology, organizational changes, and 
staff training. However, individual importers will only bear the burden 
for the certificates they file. On average, an importer will conduct 
217 certificate filings per year, which will take about 1.34 hours to 
enter and transfer (217 x 22 seconds/3,600 seconds = 1.34 hours).\32\ 
At an hourly rate of $33.12 for office and admin wages, this represents 
a cost of $44.29 per year per importer in staff hourly burden. 
Additional startup investments are not an annual cost, but an 
investment that will last for many years. After annualizing this one-
time investment, CPSC expects the average firm to incur out of pocket 
cost that represents a non-significant share of the annual revenue of a 
typical firm.
---------------------------------------------------------------------------

    \32\ The values presented are rounded, so the results on each 
side of the equation may not exactly match.
---------------------------------------------------------------------------

    Comment 55: Commenters Alta (93), JPMA (99), Boppy (109), and PPAI 
(119) state that the burden of additional staff, technology, and broker 
charges would impact small importers. JPMA (99) states that the number 
of responses in the IRFA would be many times greater, while Alta (93) 
states that increased cost from using customs brokers would cause undue 
financial hardship for small firms.
    Response 55: Since 2008, testing and certification of products 
regulated by CPSC has been required under section 14 of the CPSA. The 
CPSA does not exclude small businesses from certification requirements. 
New requirements in the Final Rule include extended recordkeeping for 
GCCs and eFiling certificates for imported, regulated products, which 
CPSC estimated in the 2023 SNPR, and has updated in section VII of this 
Final Rule preamble. The Commission's SNPR analysis provided an 
estimate of the number of responses that result from a detailed list of 
data-driven assumptions. Without additional information from the 
commenters showing the inaccuracy of the assumptions used, CPSC cannot 
produce a different estimate of the number of responses.
    The FRFA in section VII of this preamble shows that the impact on 
small firms may not be as large as indicated by the commenter; instead, 
the cost impact is not significant because it is well below one percent 
of the revenue of a typical small firm and represents a fraction of one 
percent of the average value of shipments imported that require eFiled 
certificates.
    Comment 56: The Commission requested in the SNPR that firms comment 
on filing fees that importers may bear from eFiling certificates with 
CBP using the Full or Reference PGA Message Set. JPMA (99), Boppy 
(109),

[[Page 1820]]

and NAM (113) express concern that eFiling certificates would require 
additional filing fees. Only JPMA (99) provides estimates of filing 
fees, asserting that a small manufacturer would have to pay $75,000 in 
filing fees, but did not indicate the number of message sets that the 
small business would file annually. JPMA (99) also wrote that CPSC did 
not adequately model the cost of using third-party service providers or 
customs brokers to comply with the rule.
    Response 56: CPSC does not expect to charge filing fees for use of 
the Product Registry. Brokers typically charge a fee per entry or per 
entry line that is filed, and each entry line may contain one or more 
product certificates. Staff contacted less than 10 brokers involved in 
the Beta Pilot and inquired about fees that brokers would charge for 
eFiling. Most brokers charge a maximum fee per entry which reduces the 
filing fees per certificate for firms that file multiple certificates 
per entry. We assume that most firms would choose to file as many 
product certificates as possible per entry, and this action will 
significantly lower the cost per individual product certificate filed. 
CSPC estimates that the average fee per filing under these conditions 
will be $0.77.
    CPSC does not know how many message sets the small manufacturer 
mentioned by JPMA (99) would file to reach the estimated filing fees, 
but on average, the filing volume of most small importers would 
comprise a relatively small number of Full and Reference Message Sets 
in total. CPSC's analysis assumes that small importers would file 10 
percent of the responses (i.e. message set filings) the average 
importer files. Additionally, CPSC expects that the impact of filing 
fees as a percentage of the overall value of the shipment will be very 
small. Thus, CPSC expects that filing fees will not create a 
significant burden on the average small importer.
    Comment 57: Commenters TA (97) and Boppy (109) state that CPSC 
underestimates the burden of startup staff training required to 
implement the rule. For example, TA (97) urges that CPSC reassess the 
estimated cost burden for implementation of the eFiling Product 
Registry, to include an accurate representative set of values that 
properly reflects the cost to implement eFiling to manufacturers, 
retailers, distributors and other entities who fall within the scope of 
part 1110.
    Response 57: CPSC conducted a Beta Pilot between October 2023 and 
June 2024. Staff observed startup hours for participation in the 
eFiling Beta Pilot and the initial organization required to eFile. 
Staff observed a median startup time of about 60 staff hours per 
importer. While observing variability in startup times across 
participants, CPSC expects that as more importers and third-party 
service providers become adept in the eFiling process, the startup 
hours for remaining importers will decrease over time. CPSC expects a 
similar experience for firms that did not participate in the pilot but 
are required to eFile. CPSC notes the startup burden is a one-time 
investment that would allow importers to conduct eFiling operations for 
many years. To produce a more accurate accounting of costs, CPSC 
annualizes the startup burden over the useful life of the investments. 
Additionally, the Final Rule has an effective date of 18 months for 
most imported products (and 24 months for products entered for 
consumption or warehousing from an FTZ), a period over which the burden 
will be effectively spread. CPSC also expects that improvements derived 
from process learning will reduce the cost per firm over this period.
    Comment 58: Two commenters, Alta (93) and NAM (113), suggest that 
CPSC underestimates the eFiling burden for each importation. NAM (113) 
states that a 20-second burden per Reference Message Set and a 1-minute 
burden per Full Message Set is not realistic given the large number of 
certifications for every product.
    Response 58: Staff revised eFiling burden estimates, in part based 
on information from Beta Pilot participants. The revised estimate is 
15.3 seconds per Reference Message Set and 4.75 minutes per Full 
Reference Message Set. Reference Message Sets are simplified messages 
(primarily composed of a Unique ID) that link products being imported 
to certificate data already uploaded into CPSC's Product Registry. The 
eFiling estimate is based on the time it takes to enter and transmit a 
Reference Message Set, applying a learning curve to data provided by 
Beta Pilot participants. This learning curve enables staff to assess 
the impact of learning efficiencies in processing times. Sections . and 
VIII of this preamble contain additional detail on the revised eFiling 
burden analysis for the Final Rule. Staff's analysis applies a similar 
learning curve to Full Message Sets, which results in a higher 
processing time of 4.75 minutes per message (increased from one minute 
in the SNPR), which is consistent with NAM's (113) assessment.
    Comment 59: Hansen (115) states that CPSC underestimated the burden 
of putting certificate data into the Product Registry using a CSV 
spreadsheet, citing an example of bike distributors that carry tens of 
thousands of bicycle parts.
    Response 59: As stated in response to comment 6, the bicycle 
standard is a finished product standard that does not regulate 
individual parts of bikes sold separately. However, other CPSC 
regulations, such as limits on lead content, lead in paint, and small 
parts, could apply to children's bikes and parts of children's bikes 
sold separately. Certificates can be entered in bulk into the Product 
Registry via a CSV spreadsheet. During the Beta Pilot, importers 
demonstrated that they could enter numerous certificates into the 
Product Registry using the CSV spreadsheet, resulting in uploads of a 
fraction of a second per certificate. Staff conservatively estimate 
that it takes 8.7 seconds per certificate to upload multi-certificate 
data into the Product Registry.
    Comment 60: JPMA (99) states that no statistically validated record 
exists to justify the burden assumptions for filing Message Sets. The 
commenter states that the assumptions are not realistic. JPMA (99) also 
writes that one small-business member advised that they would accrue an 
extra $30,000 for document preparation and $40,000 for document prep 
full headcount at factory.
    Response 60: The Commission's economic analysis is based on 
available information and states the basis for each assumption. Most 
recordkeeping in this information collection is mandated by sections 
14(a) and 16(b) of the CPSA and within CPSC's regulations in part 1107, 
1109, and the existing part 1110 rule. Typically, non-children's 
product regulations contain a three-year recordkeeping requirement; 
children's products require a 5-year record retention period pursuant 
to part 1107. The Final Rule increases record retention to five years 
for general use products, as proposed. Both the SNPR and the Final Rule 
address the additional two years of recordkeeping, as well as record 
keeping for additional data items. Note that for eFiled certificates, 
CBP already has a 5-year record retention requirement for import 
documentation.
    Comment 61: Alta (93) states that the manual nature of submitting 
data entry into ACE could lead to human errors and delays. The 
commenter alleges that repeated filings of certificates via ACE would 
be complex, expensive, and labor-intensive for a business such as 
theirs with a small staff. The commenter also states that expensive 
automation and time-consuming processes would cause undue hardship to 
small businesses such as theirs.

[[Page 1821]]

    Response 61: The Final Rule does not require repeated filing of the 
same certificate data into ACE. CPSC built the Product Registry at the 
request of importers to reduce repetitive data entry. Thus, importers 
have the option of loading certificate data into CPSC's Product 
Registry once before filing an entry, either manually or through batch 
uploads, and then filing a short PGA Reference Message Set that links 
to the certificate data in the Product Registry each time the product 
is imported thereafter. Using a Reference Message Set allows importers 
to reference the same certificate data multiple times, each time the 
product is imported. CPSC estimates that over 96 percent of importers 
will use the Product Registry and Reference Message Sets. Accordingly, 
using the Product Registry will simplify import filings, reduce costs, 
and reduce filing errors. In practice, most importers file entries and 
PGA Message Sets through a customs broker, who would only need to be 
supplied with the Unique ID for the Reference Message Set that links 
the imported product with certificate data in the Product Registry. Use 
of the Product Registry is free of charge. Importers may also use a 
Full Message Set that does require entering all certificate data for 
each regulated, imported consumer product. Importers that want to gain 
eFiling experience before the effective date of the Final Rule can 
participate in the expanded Beta Pilot, as discussed in section II of 
this preamble.
    Comment 621: JPMA (99) states that that no ``one size fits all'' 
solution should be proposed and that CPSC should create a less 
burdensome integrated system with CBP.
    Response 62: CPSC did not propose, nor is it testing, a one-size-
fits-all approach. Importers have two options for eFiling certificates, 
a Full Message Set or a Reference PGA Message Set and use of the 
Product Registry. As described in the SNPR and in this Final Rule, CPSC 
has worked on eFiling solutions with CBP and with industry for over ten 
years. CPSC undertook creation of the Product Registry at the request 
of importers who specifically asked for an IT solution that would 
reduce burden, the need for duplicate data entry, and errors. The IT 
solutions for CPSC are now ready to be implemented. CPSC's solutions 
are integrated with CBP systems, and CBP has participated in the Alpha 
and Beta Pilots, and has been specifically consulted regarding the NPR, 
SNPR, and the Final Rule.
    Comment 63: RILA (126) asserts that the burden estimate in the June 
4, 2024, Federal Register notice (June 4 notice) regarding the expanded 
Beta Pilot test (89 FR 47922) does not account for the full time to 
support gathering and submitting data elements and only reflects the 
burden of gathering and submitting data for a limited quantity of 
products and their corresponding fillings. RILA states that their 
members' approximations of the burden hours per importer are nearly 
double or more of the Commission's estimates, depending on the overall 
size of the retailer and volume and variety of imported goods. RILA 
references two members that participated in the Beta Pilot; one 
estimated an annual burden of approximately 500 hours and another 
estimated an annual burden of 15,700 hours.
    Response 63: One purpose of the eFiling Beta Pilot was to gain 
experience with the burden that importers may incur. CPSC gained useful 
information from the limited quantity of products and filings made 
during the Beta Pilot. Staff advise that the burden of gathering and 
submitting data elements during the Beta Pilot only reflects the burden 
for a limited quantity of products and corresponding filings; most 
participants did not choose to eFile certificates for all of their 
imported, regulated products. Additionally, staff observed significant 
variation in the burden expressed by Beta Pilot participants and in the 
number of certificates that participants filed.
    For the Final Rule, CPSC provides revised burden estimates in 
sections VII and VIII of this preamble, in part using information 
learned from the Beta Pilot. This revised analysis demonstrates that 
the burden of the Final Rule is not large on a per importer basis. 
However, even if the burden of the Final Rule was much greater than the 
inputs used in the revised analysis, burden estimates per firm would 
still be non-significant.

O. Legal Comments

    Comment 64: Boppy (109) alleges that the SNPR is unconstitutional, 
asserting that the manner in which the rule is being promulgated 
violates the U.S Constitution's Separation of Powers and Appointments 
Clause because the CPSC Commissioners' for-cause removal protections 
are unconstitutional. Boppy states that the Supreme Court has 
recognized only two limited exceptions to the President's otherwise 
``unrestricted'' removal power: (1) an exception for inferior officers 
with limited duties and no policymaking or administrative authority, 
Seila Law v. CFPB, 140 S. Ct. 2183, 2199-2200 (2020), and (2) an 
exception for principal officers who do not exercise executive power, 
id. 2198-99 (discussing Humphrey's Executor v. United States, 295 U.S. 
602 (1935)). Boppy argues that neither the inferior-officer exception 
nor the ``Humphrey's Executor exception'' applies because CPSC's 
Commissioners are principal (not inferior) officers who exercise 
substantial, ``quintessentially executive power [that was] not 
considered in Humphrey's Executor.'' Seila Law, 140 S. Ct. at 2200.
    Response 64: Federal Courts of Appeals have recently rejected the 
same Constitutional arguments made by Boppy. See Consumers' Rsch. v. 
CPSC, 91 F.4th 342 (5th Cir. 2024), petition for cert. filed, 
(Consumers' Rsch. v. Consumer Prod. Safety Comm'n, No. 23-1323 
(petition for cert. denied Oct. 21, 2024)), and Leachco, Inc. v. CPSC, 
103 F.4th 748 (10th Cir. 2024), petition for cert. filed, (Leachco, 
Inc. v. CPSC, No. 22-7060 (petition for cert. filed on Aug. 9, 2024)). 
Consistent with those decisions and the Supreme Court's holding in 
Humphrey's Executor v. United States, 295 U.S. 602 (1935), we reject 
Boppy's constitutional arguments.
    Comment 65: The Toy Association (97) states that requiring each 
importer of a product, instead of the manufacturer, to submit a 
separate certificate, would be redundant and potentially a Technical 
Barrier to Trade (TBT) as defined by the World Trade Organization 
(WTO). The JPMA (99) argues that the eFiling requirement in the SNPR is 
arbitrary and needlessly burdensome, which may also be a TBT.
    Response 65: The Final Rule does not constitute a technical barrier 
to trade. The purpose of section 14 of the CPSA, and part 1110, is to 
protect the health and safety of U.S. consumers from noncompliant 
consumer products. Article 2.2 of the TBT Agreement states that 
technical regulations ``shall be no more trade-restrictive than 
necessary for the achievement of a legitimate objective, including . . 
. the protection of human health and safety.'' Additionally, the 
preamble to the TBT Agreement recognizes that ``no country should be 
prevented from taking measures necessary . . . for the protection of 
human, animal or plant life or health.''
    CPSC's requirements are within the scope of the health and safety 
provisions of the TBT Agreement. The Toy Association and JPMA appear to 
ignore CPSC's long-standing and statutorily required testing and 
certification regime. Since 2008, testing and certification 
requirements apply to all products subject to a CPSC rule, ban, 
standard, or regulation, regardless of the place of manufacture, if 
those products

[[Page 1822]]

are imported for consumption or warehousing or distributed in U.S. 
commerce. The purpose of section 14 of the CPSA, and part 1110, is to 
protect the health and safety of U.S. consumers from noncompliant 
consumer products.
    Commenters also ignore the lengths to which CPSC has gone since 
2008 to streamline requirements for testing and certification. For 
example, manufacturers and importers may rely on any other party's 
testing or certification pursuant to 16 CFR part 1109. That rule has 
been in place for more than 10 years and allows importers that want to 
rely on a manufacturer's testing and/or certification, the ability to 
do so. Moreover, as described in section II of this preamble, CPSC has 
spent the last 10 years working with the industry on two pilots, a 
study, building an eFiling program, and developing the Product 
Registry, to address importers' concerns about burden and cost. 
Sections VII and VIII of this preamble and the experience of Beta Pilot 
participants demonstrate that the Product Registry is easy to use and 
reduces burden. In fact, CPSC developed the Product Registry in 
response to industry's 2013 request to reduce burden, data entry 
errors, and potential duplication of effort, for all importers of 
regulated products.
    It bears repeating that the eFiling requirement does not create new 
testing or certification requirements for importers. Since 2207, 
importers have been required to provide certificates and the test 
reports on which they are based to CPSC and CBP upon request. CPSC is 
now requesting this information at the time of entry, as specifically 
provided in section 14(g)(4) of the CPSA. This requirement modernizes 
the certificate requirement in a manner that does not create undue 
burden to importers or create a barrier to trade, and instead assists 
compliant importers. 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.
    Finally, as a matter of enforcement discretion, at least in the 
initial stages of eFiling, CPSC in general does not intend to request 
that CBP deny entry of products into the United States solely based on 
a failure to provide eFiled certificate data. However, CPSC will 
continue to enforce certificate requirements, for example by refusing 
admission under section 17(a)(2) of the CPSA, 15 U.S.C. 2066(a)(2), or 
requesting CBP to initiate seizure of noncompliant products. Further, 
CPSC intends to increase or decrease risk scores based on eFiled data, 
which should reduce holds and examinations of compliant products and 
better focus resources on non-compliant products.
    Comment 66: JPMA (99) asserts that Congress did not plainly set 
forth a requirement that certificates be available by eFiling and that 
the language in section 14(g)(3) of the CPSA is a distinct requirement. 
Therefore, providing a certificate ``upon request'' even in an 
electronic format should be maintained as an option.
    Response 66: We disagree. Section 14(g)(4) of the CPSA provides 
CPSC specific authority to require eFiling for imported consumer 
products. Interdicting noncompliant products before they are 
distributed in U.S. commerce is an important safety mission of the 
Commission. Accordingly, as set forth in response to comment 34, to 
allow the Commission to focus limited resources on imported products 
that are not in compliance with CPSC regulations, the Final Rule 
retains the SNPR's eFiling requirement for all regulated, imported 
consumer products. The Final Rule retains the ``upon request'' 
certificate option for products manufactured in the United States, and 
for imported products, to the extent certificate data is not filed at 
entry, as required, or is potentially false or misleading.

P. Out of Scope Comments

    Comment 67: Hansen (115) opines that the SNPR did not adequately 
address the 2013 comments filed by the Bicycle Product Suppliers 
Association (BPSA; now PeopleforBikes). Hansen discussed the bicycle 
regulation in 16 CFR part 1512 and particularly electric bicycles.
    Response 67: The Final Rule is not about the substantive safety 
requirements for bicycles. Note, however, that CPSC issued an advance 
notice of proposed rulemaking in 2024 related to eBikes, 89 FR 18861 
(Mar. 15, 2024), and staff anticipate sending the Commission a proposed 
rule related to lithium-ion batteries used in micromobility products, 
including eBikes, in the coming months.
    The remaining comments primarily discuss technical features of the 
eFiling Product Registry. The procedural aspects of data entry and the 
user interface of the Product Registry are not addressed in the 
regulation text of this Final Rule. Accordingly, if not already 
addressed above, CPSC will endeavor to address technical questions in 
the guidance materials on our website. Additionally, any firm using the 
Product Registry can report software issues, ask questions, or send 
suggestions to: [email protected].

V. Description and Explanation of the Final Rule

    Below we describe and explain the basis for the Final Rule's 
requirements. Because of the number of changes to part 1110, the 
Commission proposes to strike and replace the existing 1110 rule in its 
entirety, as described below.

A. Purpose and Scope (Sec.  1110.1)

    The Commission finalizes the purpose and scope in the Final Rule as 
proposed in the SNPR, which states that the rule specifies certificate 
content, form, and availability, and requires eFiling certificates for 
imported finished products that are required to be certified. The 
Commission did not receive any adverse comment on the SNPR's proposal.

B. Definitions (Sec.  1110.3)

    The 2013 NPR added to part 1110 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 28080, 28081-82. The SNPR maintained 
the additional terms proposed in the 2013 NPR, added several more 
terms, and revised several definitions. Newly defined terms included: 
``eFiled certificate,'' to differentiate an electronic certificate, 
primarily used for domestically manufactured products, from a 
certificate for an imported product that is entered via ACE in a PGA 
Message Set, and ``Product Registry,'' to describe the CPSC-maintained 
repository for certificate data for imported products. The SNPR revised 
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 also proposed to broaden the definition of ``importer'' as 
that term is used in part 1110, 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. Thus, the 
SNPR proposed that the definition of ``importer'' include any entity 
that could make entry for consumer products, and qualify as the 
importer under the Tariff Act (19 U.S.C. 1484(a)(2)(B)). Proposed Sec.  
1110.3 also defined additional terms to develop the revised definition 
of ``importer'' in the SNPR, such as ``importer of record,'' 
``consignee,'' and ``owner or purchaser.''
    Based on the comments, the Final Rule adds two statutory 
definitions for ``manufacturer'' and ``private labeler'' and clarifies 
several other definitions

[[Page 1823]]

proposed in the SNPR. For example, the Final Rule modifies the 
definition of ACE in a manner consistent with the SNPR, but better 
aligns with CBP's characterization of their authorized electronic data 
interchange system and any successor systems.
    Commenters also continued to demonstrate confusion about the 
difference between a component part and a finished product, and when a 
part of consumer product is a finished product that must be accompanied 
by a finished product certificate. By definition, a ``component part'' 
is not a ``finished product.'' Component part certificates are allowed 
by 16 CFR part 1109 but are voluntary. Component part testing or 
certification can be relied upon to issue a finished product 
certificate, but only finished product certificates must accompany 
finished products and be eFiled pursuant to Sec.  1110.13(a)(1). 
Component part certificates are not required and should not be eFiled. 
Accordingly, to add clarity to the definition of ``component part 
certificate,'' the Final Rule adds to the definition that a component 
part certificate is voluntary, and, to further reduce confusion, the 
Final Rule moves all requirements for component part certificates into 
Sec.  1110.19 at the end of the rule.
    Relatedly, based on commenters' concerns, the Final Rule also 
clarifies the definition of a ``finished product'' by removing the 
phrase ``replacement parts,'' as the phrase appears to have a different 
and broader meaning to industry than CPSC intended for this rule. The 
Final Rule now explains the three criteria required for a product to be 
considered a ``finished product'' that must be accompanied by a 
finished product certificate--namely, that the product must be: (1) 
subject to a CPSC-enforced rule, ban, standard, or regulation; (2) 
imported for consumption or warehousing, or distributed in commerce; 
and (3) packaged, sold, or held for sale to, or for use by, consumers. 
To address comments regarding the role of a ``finished product 
certifier,'' the Final Rule adds to the definition the three parties in 
section 14 of the CPSA that can be a finished product certifier. These 
are the manufacturer and private labeler, as defined in the CPSA, and 
the importer, as defined in this rule. See 15 U.S.C. 2052(a)(11) and 
(a)(12).
    The Final Rule also modifies the definition of ``importer'' in 
response to comments 7 through 10 in section IV of this preamble and 
simplifies related definitions of ``owner or purchaser'' and 
``consignee.'' The definitions for ``importer,'' ``owner or 
purchaser,'' and ``consignee'' in the Final Rule are intended to 
harmonize with the Tariff Act and CBP's implementing regulations that 
govern importation procedures but are solely for purposes of this Final 
Rule. These definitions do not change CBP requirements for parties 
eligible to make entry and are specifically limited to implementation 
of CPSC's eFiling requirement and the party CPSC will hold legally 
responsible for issuing a finished product certificate for imported, 
CPSC regulated finished products. Moreover, these definitions may not 
reflect the full scope of the relevant terms under the CPSA or other 
statutes implemented by CPSC.
    The Final Rule clarifies that, as proposed in the 2013 NPR and 
consistent with the SNPR comments, for purposes of this rule, the 
``importer'' means the IOR eligible to make entry for imported finished 
products under the Tariff Act of 1930, as amended (19 U.S.C. 
1484(a)(2)(B)), who may be an owner, purchaser, or authorized customs 
broker. The Final Rule addresses the concerns of commenters stating 
that an IOR authorized to make entry for a shipment, such as a broker, 
may not have sufficient knowledge of the consumer products to be held 
responsible for testing and certification. Accordingly, the definition 
also provides that an authorized broker may identify the owner, 
purchaser, or consignee of the finished products who authorized the 
customs broker to make entry, as the party responsible for compliance 
with CPSC certificate requirements. A broker would identify such party 
by eFiling certificate data using CPSC's PGA Message Set, which 
identifies the finished product certifier responsible for product 
certification, as required in Sec.  1110.11(a)(3).
    If identified as the finished product certifier in the PGA Message 
Set data, the owner, purchaser, or consignee that authorized the broker 
to file entry is the party that CPSC would expect to have sufficient 
knowledge of the finished products being imported and to understand 
that such products must now comply with U.S. laws and regulations, 
including compliance with CPSC's testing and certification 
requirements.\33\ A broker identifying an owner, purchaser, or 
consignee as the party responsible for certification should receive 
from that party, either the Unique ID for the Reference PGA Message 
Set, linking certificate data in the Product Registry with the 
shipment, or all certificate data elements for submitting the Full PGA 
Message Set at entry. If an authorized customs broker fails to submit a 
PGA Message Set containing CPSC's certificate data elements to identify 
the owner, purchaser, or consignee responsible for product 
certification, CPSC can hold such a broker legally responsible for 
certificate data as set forth in Sec.  1110.15.
---------------------------------------------------------------------------

    \33\ We note that the party that CPSC holds legally responsible 
for certificate data does not mean that this party is responsible 
for submitting such data into ACE, because this party may not be the 
IOR for the shipment or be another party eligible to make entry 
under CBP statutes and regulations.
---------------------------------------------------------------------------

    The Final Rule also clarifies, for purposes of this rule, the 
importer who is legally responsible for CPSC's certificate data for 
finished products that must be accompanied by a certificate that are 
imported by mail, or for which a de minimis duty exemption under 19 
U.S.C. 1321(a)(2)(C) is claimed. These shipments do not have an IOR. 
The ``importer'' definition in the Final Rule specifies the importer 
for purposes of CPSC's certificate requirement for these shipments is a 
party eligible to make entry for the merchandise pursuant to CBP 
statutes and regulations, who may be an owner, purchaser, consignee, or 
authorized customs broker. An authorized broker may also identify the 
owner, purchaser, or consignee that authorized entry as the finished 
product certifier in a PGA Message Set for a de minimis shipment filed 
using ET 86.
    The Final Rule defines ``owner or purchaser'' and ``consignee'' in 
a way consistent with the SNPR, but simplified. The Final Rule 
definitions now clarify that these definitions are only for the 
purposes of this rule and explain who CPSC may hold responsible for 
certificate data, particularly for de minimis and mail shipments that 
lack the required certificate data. For this rule, a ``consignee'' 
means a party who takes custody or delivery of CPSC regulated finished 
products for which CPSC certificate data is required. For this rule, an 
``owner or purchaser'' means a party who has a financial interest in 
the finished products for which CPSC certificate data is required, to 
include the actual owner of the merchandise. Because a consumer could 
fall within the definitions of purchaser or consignee, the definition 
of ``importer'' continues to state, as proposed, that for the purposes 
of this rule, CPSC will not typically consider an end consumer 
purchasing or receiving products for personal use or enjoyment to be 
the importer responsible for certification..
    The Final Rule changes a defined term from ``eFiled certificate'' 
to ``eFile'' because the term ``eFiled certificate'' is not used in the 
rule, but the term ``eFile'' or ``eFiled'' is used nine times 
throughout the regulation. The

[[Page 1824]]

definition of ``eFile'' is consistent with the SNPR definition of 
``eFiled certificate,'' and means to electronically file the required 
data elements on a finished product certificate, as described in Sec.  
1110.11, into ACE, in the format required in Sec.  1110.13(a)(1). Minor 
edits were also made to the definition of ``electronic certificate.'' 
An ``electronic certificate'' is not an eFiled certificate. An 
electronic certificate contains the same certificate information as an 
eFiled certificate, but is primarily used to provide an electronic 
certificate to CPSC for domestically manufactured products, in the 
format described in Sec.  1110.9(c).
    Finally, the Final Rule clarifies the definition of ``Product 
Registry'' by stating that the finished product certifier that is 
required to issue the finished product certificate, as specified in 
Sec.  1110.7(a), and who is also required to eFile the certificate data 
as set forth in Sec.  1110.13(a)(1), enters finished product 
certificate data into the Product Registry. Note that pursuant to Sec.  
1110.15, a finished product certifier can rely on other parties to 
maintain records, test, or certify products, or enter data into the 
Product Registry, but remains legally responsible for the validity, 
accuracy, completeness, and availability of finished product 
certificates.

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

    The Commission finalizes Sec.  1110.5 as proposed, except for two 
minor clarifications. First, Sec.  1110.5 clarifies that finished 
products also include ``substances,'' which are regulated under the 
Federal Hazardous Substances Act (FHSA). Second, the title of this 
section revises ``Products'' to ``Finished products,'' and changes the 
phrase ``GCC or CPC, as applicable'' to ``finished product 
certificate'' (which encompasses GCCs and CPCs), to more clearly convey 
that only finished products are required to be certified. Accordingly, 
Sec.  1110.5 explains that a certificate is required only when: (1) the 
product is a finished product or substance; (2) the product or 
substance 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 or substance is 
imported for consumption or warehousing, or is distributed into 
commerce.

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

    The SNPR required that, unless a specific rule states otherwise, 
only importers, as defined in the rule, must issue a certificate for 
imported products. However, a private labeler could assume 
responsibility for certifying an imported product under the SNPR, if 
the private labeler falls within the definition of an importer in Sec.  
1110.3.
    For domestically manufactured finished products, the SNPR 
maintained 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 proposed 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 moved the requirement regarding the availability of 
certificates for imports and domestic products, found in Sec.  
1110.7(c) of the existing rule, to Sec.  1110.13.
    The Commission finalizes Sec.  1110.7 as proposed in the SNPR with 
a clarification specifying that the required certifier is the 
``finished product certifier.'' The terms ``finished product 
certifier'' and ``finished product certificate'' are used throughout 
the regulation to explain certificate responsibilities and content 
requirements. The Final Rule is consistent with section 14(g)(1) of 
CPSA, which requires that the manufacturer (defined as any person who 
manufactures or imports a consumer product) or private labeler must 
test and certify products. For domestically manufactured products that 
are privately labeled, the private labeler must certify or ensure that 
a manufacturer certifies the product. Also, pursuant to the 1109 rule, 
a private labeler can rely on a manufacturer's testing or certification 
to issue their own finished product certificate. Section 3(a)(12)(B) of 
the CPSA defines a privately labeled product as a product with no 
manufacturer information on the product or packaging. Therefore, CPSC 
is unable to identify any other party to hold responsible for a 
noncompliant product. For clarity, the Final Rule adds the statutory 
definitions of ``manufacturer'' and ``private labeler'' in 15 U.S.C. 
2052(a)(11)-(12) to the list of defined terms in Sec.  1110.3.

E. Certificate Language and Format (Sec.  1110.9)

    The Final Rule maintains Sec.  1110.9 as proposed in the SNPR, with 
the addition of ``finished product certificate'' in place of 
``certificate,'' to clarify that the requirements apply to finished 
products. Section IV.E of this preamble contains comments and CPSC's 
responses regarding Sec.  1110.9. We describe each section of Sec.  
1110.9.
    The SNPR Sec.  1110.9(a) proposed that an eFiled certificate must 
be in English, which is consistent with the statutory requirement and 
is necessary for CBP and CPSC IT systems. Proposed Sec.  1110.9(a) 
provided that a hard copy or electronic certificate must be in English, 
but may also contain the same content in any other language. The 
Commission finalizes Sec.  1109.9(a) without substantive change.
    Proposed Sec.  1110.9(b) clarified the formats for eFiled and for 
hard copy and electronic certificates. The SNPR proposed 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. The Commission finalizes Sec.  1109.9(b) without 
substantive change.
    Proposed Sec.  1110.9(c) described 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. The SNPR proposed to allow password protection of 
certificate information, so long as the password is provided to CPSC or 
CBP at the same time as a certificate. This provision applies to 
domestic manufacturers and to other certifiers when providing a 
password protected electronic certificate to CPSC or CBP; the password 
must be provided to the relevant agency at the same time. The 
Commission finalizes Sec.  1109.9(c) without substantive change.

F. Certificate Content (Sec.  1110.11)

    The 2023 SNPR proposed to require the seven statutory certificate 
data elements in the existing rule, and to include only one of the 
three additional requirements proposed in the 2013 NPR--attestation. 
However, the SNPR provided additional detail on the required data 
elements. Below we describe each data element proposed in Sec.  
1110.11(a) of the SNPR. Except for a clarifying change to the 
attestation requirement, and addition of the terms

[[Page 1825]]

``finished product certificate'' and ``finished product certifier'' in 
place of ``certificate'' and ``certifier,'' the Final Rule retains the 
requirements as proposed in the SNPR.
    Product Identification (Sec.  1110.11(a)(1)): The Final Rule 
retains the SNPR proposal to identify the finished product covered by 
the certificate, including at least one unique ID from a list of seven 
options, and a sufficient product description so that CPSC can match 
the finished product to the certificate. Finished product certificates 
may contain optional additional IDs to assist with product 
identification. The SNPR clarified that ``identification'' means a 
unique ID is necessary for eFiling, so that certificates can be better 
tracked in the Product Registry and RAM. The SNPR explained that CPSC 
expects it would be easier for importers to provide a unique ID that 
already exists for the product, instead of having certifiers manage an 
additional identifier assigned by CPSC.
    The Final Rule also retains the SNPR proposal to expand the term 
``description'' as it relates to products to mean a ``sufficient 
description to match the finished product to the certificate.'' 
Currently, the product 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)): Although CPSC 
received adverse comments regarding listing applicable subsections of 
the ASTM Toy Standard, codified in 16 CFR part 1250, CPSC is 
maintaining this requirement as proposed, as further explained in 
response to comment 26, to align with sections 14(a)(1) and 14(g) of 
the CPSA. The underlying requirement to list applicable rules is 
statutory; certificates must 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 provides a standardized 
list of all rules, each assigned a code. When eFiling certificate data, 
the certifier will only need to select from these codes, either in the 
Full Message Set or in the Product Registry. Additionally, certifiers 
of domestically manufactured products, and those certifying using a 
Full Message Set, have access to the list of all rule citations and 
testing exclusions, which is updated and stored on CPSC's website, 
available at: https://www.cpsc.gov/eFiling-Document-Library.
    Identification of Certifier (Sec.  1110.11(a)(3)): The Final Rule 
retains the SNPR proposal 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 will 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 Global 
Positioning System (GPS) coordinate, is also permissible. The Final 
Rule also retains the SNPR proposal to include an email address, which 
will improve communication between CPSC and the certifying party, 
particularly across time zones. Note that for imported finished 
products, the finished product certifier should be the Business Account 
Administrator if using the Product Registry to eFile certificate data.
    Contact for Records (1110.11(a)(4)): The Final Rule retains the 
SNPR's proposal to provide the identity and contact information for the 
individual maintaining records of test results. As with the certifier's 
contact information, the Final Rule includes more detail regarding the 
concept of a ``full mailing address,'' which includes ``street address, 
city, state or province, country or administrative region, electronic 
mail (email) address, and telephone number.'' For clarity, and because 
this data element requires a name and contact information, the Final 
Rule moves the bulleted list of recordkeeping requirements in sections 
of the CFR that apply to GCCs and CPCs to the recordkeeping requirement 
in Sec.  1110.17 of the Final Rule.
    The Final Rule maintains the SNPR clarification that the individual 
maintaining records may be a position title, provided that this 
position is always staffed and responsive to CPSC's requests. Allowing 
a position title instead of an individual is in response to public 
comments concerned that the individual maintaining the records of test 
results may leave the company or otherwise be unavailable, and that a 
position title would provide continuity.
    Manufacture Date and Place (1110.11(a)(5)): The Final Rule retains 
the SNPR proposal to provide the date when the finished product(s) were 
manufactured, produced, or assembled, as further explained in response 
to comment 19. The first date of a batch run is the date of 
manufacturing. The Final Rule also retains the statutory requirement to 
provide the place where the finished product(s) were manufactured. 
Section 14(g)(1) of the CPSA requires that each certificate contains 
``each party's name, full mailing address, [and] telephone number.'' 
Therefore, the Final Rule aligns with the statute and with the other 
data elements requiring contact information, which includes a name, 
street address, city, state or province, country or administrative 
region, email address, and telephone number. For this data element, the 
contact information must state where the finished product(s) were 
manufactured, produced, or assembled. The Final Rule requires this 
manufacturer detail, for eFiling in particular, because staff have 
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 Final Rule retains the 
SNPR proposal, which is also in the existing rule, to provide the date 
when the finished product(s) were tested for compliance. The SNPR 
amended this requirement to clarify that the required date is the most 
recent date of testing. The Final Rule retains this change, which aids 
CPSC in assessing the validity and integrity of a certificate, and 
promotes consistency across certificates for CPSC and certifiers, 
particularly where laboratory testing is done over several days.
    The Final Rule also maintains the SNPR proposal, which is in the 
existing rule, to provide the place where the finished product(s) were 
tested for compliance. As proposed, the Final Rule 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 Final 
Rule also requires an email address, as proposed, so staff have another 
means of contacting the testing laboratory.
    Attestation (Sec.  1110.11(a)(7)): The SNPR proposed to include an 
attestation by the certifier that the certificate information 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. The Final Rule 
retains the attestation requirement for certificates provided to CPSC 
or CBP in hard copy

[[Page 1826]]

or in electronic format, as provided in Sec.  1110.9(c), and clarifies 
that the finished product certifier is responsible for the attestation. 
For imported products that require an eFiled certificate, the Final 
Rule requires an attestation, but clarifies that the eFiling 
requirements for both the Full Message Set and the Reference Message 
Set already include an attestation. The Full Message Set contains a 
check box data element for the attestation. Importers using the Product 
Registry must periodically attest to the veracity of the data, 
depending on the user's permissions. For eFiled certificates, even if 
the importer allows another entity to enter certificate data into the 
Product Registry on their behalf, or to certify products on their 
behalf, the importer/finished product certifier remains responsible for 
the information provided to CPSC, as stated in Sec.  1110.15 of the 
Final Rule. Thus, the Product Registry includes built-in, simplified 
attestation requirements.
    Electronic access to records (Sec.  1110.11(b)): The Final Rule 
retains the SNPR proposal in Sec.  1110.11(b) 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.
    Statutory or regulatory testing exclusions (Sec.  1110.11(c)): 
Although CPSC received adverse comments regarding the inclusion of 
testing exclusions on certificates, claiming that exclusions are self-
effective, as explained in response to comments 27 and 28 the Final 
Rule requires identification of testing exclusions that are codified in 
a statute or regulation. CPSC's algorithm will expect either a 
certificate citing a CPSC-accepted testing laboratory for each rule, or 
reliance on a testing exclusion. Accordingly, as proposed, Sec.  
1110.11(c) of the Final Rule requires finished product certifiers to 
list all claimed testing exclusions, instead of providing the date and 
place where the finished product was tested for compliance.
    The requirement to list testing exclusions on a finished product 
certificate does not apply to Commission enforcement discretion for 
adult wearing apparel or for refrigerator doors. This requirement only 
applies to consumer products that are subject to testing and 
certification, where a statute or regulation allows for a testing 
exclusion for certain products subject to a rule. The Product Registry 
lists all available exclusions for each rule, streamlining and 
standardizing how to record these exclusions on a certificate. These 
exclusions are also updated and maintained on CPSC's website for use in 
a Full PGA Message Set and for domestically manufactured products and 
CPSC will continue to maintain the list of CPSC rules (citations) and 
any associated testing exclusions. CPSC is currently updating and 
finalizing this list for use in the expanded Beta Pilot and this Final 
Rule. Some finished product certifiers already list testing exclusions 
on a certificate and CPSC's website provides guidance on how to do so; 
the Final Rule standardizes this requirement for all finished product 
certifiers. Note that no certificate is required if a product is not 
subject to a safety rule or similar rule, ban, standard, or regulation, 
or if the product is subject to enforcement discretion (such as adult 
wearing apparel relying on 16 CFR 1610.1(d) and household refrigerators 
subject to 16 CFR part 1750).
    For the Final Rule, CPSC also clarifies that, as a matter of policy 
and to reduce burden, importers are not required to file a Disclaimer 
Message Set for: (1) products that are not within CPSC's jurisdiction, 
(2) non-regulated products within CPSC's jurisdiction; or (3) products 
that are regulated but do not require certification. Although the 
Commission has authority to require a Disclaimer Message Set for all 
consumer products within CPSC's jurisdiction, based on the comments, 
and to reduce burden for products that do not have a certificate 
requirement at the time of import, CPSC will not require a Disclaimer 
Message Set. CPSC updated the CATAIR guideline to reflect this change. 
However, CPSC encourages importers to file Disclaimer Message Sets, 
where appropriate, meaning when a certificate may be expected, because 
this additional information will inform CPSC staff as to why a 
certificate does not accompany the shipment, reducing the possibility 
of a hold at the port for further inspection.
    Duplicative testing not required (Sec.  1110.11(d)): To reduce 
burden for certifiers, the Final Rule retains the SNPR proposal in 
Sec.  1110.11(d) regarding duplicative testing, but provides more 
clarity regarding when this provision applies, based on a comment. The 
Final Rule clarifies that finished product certifiers are not required 
to conduct the same third party test more than once on each sample when 
a rule references, or incorporates fully, another applicable consumer 
product safety rule or similar rule, ban, standard, or regulation under 
any other law enforced by the Commission, that contains the same 
requirement. This provision is applicable primarily to children's 
products that are more likely to have overlapping requirements, such as 
those for lead content or small parts that apply specifically to 
children's products but also may be required within a product level 
safety rule, such as the toy rule or rules for bassinets, strollers, or 
other durable infant or toddler products.

G. Certificate Availability (Sec.  1110.13)

    Although CPSC received adverse comments regarding the availability 
of certificates, arguing that the current ``upon request'' system is 
sufficient, section 14(g)(4) of the CPSA specifically provides the 
Commission with the authority to, by rule, require eFiling of 
certificates for imported consumer products. Moreover, the Commission 
has been explaining and demonstrating the benefits of eFiling since at 
least 2012, in the Alpha Pilot, Beta Pilot, in establishing the eFiling 
program in 2020, and in the SNPR and this Final Rule.
    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. By 
codifying the eFiling requirement, an eFiled certificate meets the 
``accompany'' and ``upon request'' requirements of section 14(g)(3).
    As explained in response to comments 34, 45, and 65, the Final Rule 
retains Sec.  1110.13(a) as proposed in the SNPR. Now that IT solutions 
are developed, available, and being tested, the Final Rule points to a 
CPSC-specific CATAIR and Product Registry that contain the IT solutions 
for eFiling. For example, the Final Rule 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 through eFiling. However, 
finished product certifiers must still provide a finished product 
certificate when asked by CPSC or CBP, especially in cases where a 
required certificate has not been eFiled or contains false or 
misleading information.
    The final 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

[[Page 1827]]

on unique products in a shipment, which allows better targeting of 
potentially violative products and avoids delaying delivery of 
shipments that do not warrant examination.\34\
---------------------------------------------------------------------------

    \34\ 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.
---------------------------------------------------------------------------

    Final Sec.  1110.13(a)(1) states the requirements for finished 
products manufactured outside the United States that are offered for 
importation into the United States for consumption or warehousing, 
including products offered for consumption or warehousing from a 
Foreign Trade Zone, or products eligible for the de minimis duty 
exemption under 19 U.S.C. 1321(a)(2)(C). As proposed, finished product 
certificate data elements required in Sec.  1110.11 must be eFiled at 
the time of filing the CBP entry, or entry summary, if both are filed 
together, into ACE as provided in CPSC's CATAIR and any revisions of 
the CATAIR. CPSC's most recent CATAIR is provided in Tab B of the Staff 
Final Rule Briefing Memo.
    Section 1110.13(a)(1) of the Final Rule contains minor 
clarifications related to international mail shipments, stating that 
for products imported by mail, the finished product certifier must 
enter the required finished product certificate data elements into 
CPSC's Product Registry before the shipment arrives in the United 
States.
    Section 1110(a)(2), stating requirements for domestically 
manufactured products that are required to be certified pursuant to 
Sec.  1110.5, is finalized as proposed. The finished product certifier 
for these products must issue the required certificate on or before the 
finished product is distributed in commerce, and they must make the 
finished product certificate available for inspection immediately, 
meaning with 24 hours of CPSC's request.
    Final Sec.  1110.13(b) maintains the statutory requirement to 
``furnish'' a required finished product certificate to each distributor 
or retailer, and final Sec.  1110.13(c) maintains the statutory 
requirement to make certificates available for inspection immediately 
upon request by CPSC or CBP. To be clear regarding the expectation, the 
term ``immediately'' means within 24 hours, as explained in the NPR and 
the SNPR.

H. Legal Responsibility of Finished Product Certifiers (Sec.  1110.15)

    CPSC did not receive adverse comments on this section of the SNPR; 
however, the Final Rule provides further explanation, consistent with 
the SNPR and with the 1109 rule, regarding how a finished product 
certifier may rely on other parties to maintain data, test or certify 
component parts or finished products, or enter data into the Product 
Registry. The Final Rule continues to state, as proposed, that a 
finished product certifier remains legally responsible for the 
information in a finished product certificate, including its validity, 
accuracy, completeness, and availability. The Final Rule is intended to 
accommodate diverse relationships between finished product certifiers 
and their trade partners to better facilitate trade. However, the Final 
Rule places accountability for certifications and submitted data on the 
finished product certifiers, who are ultimately responsible for 
ensuring that imported products comply with applicable U.S. law, 
including CPSC's required testing and certification. Finished product 
certifiers, meaning importers for imported products, 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 finished product certifier's behalf. Finished product certifiers 
should exercise due diligence if they allow another entity to submit 
data into the Product Registry or to certify on their behalf.

I. Recordkeeping Requirements (Sec.  1110.17)

    CPSC did not receive adverse comments on proposed Sec.  1110.17 in 
the SNPR. However, the Final Rule modifies Sec.  1110.17 by moving into 
this section the bulleted list of potential certificate-related records 
previously in Sec.  1110.11(a)(4). The listed records are the same as 
those stated in the SNPR, but they are formatted differently and with 
additional explanation. The Final Rule states that finished product 
certificates, which include CPCs and GCCs, and related records, must be 
maintained for five years, as proposed.

J. Component Part Certificates (Sec.  1110.19)

    The Final Rule is consistent with the SNPR proposal; however, based 
on continued confusion regarding component part certificates, the Final 
Rule adds the purpose of the 1109 rule, explaining that component part 
certificates are voluntary, but may be relied upon by a finished 
product certifier to issue a finished product certificate. The Final 
Rule further explains that component part certificates must not be 
eFiled into ACE. The Final Rule continues to set forth the content, 
form, and availability requirements for component part certificates.

VI. Effective Dates

    The Administrative Procedures Act (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). In the SNPR, the Commission proposed that 
a Final Rule revising 16 CFR part 1110 become effective 120 days after 
publication in the Federal Register, to provide importers time to 
onboard with CPSC's Product Registry and upgrade software to send PGA 
Message Sets to their broker for eFiling. Based on the public comments 
and Beta Pilot participant feedback, CPSC will finalize a longer 
effective date of 18 months after a Final Rule publishes in the Federal 
Register, except for consumer products and substances that are imported 
into an FTZ and subsequently entered for consumption or warehousing. 
For products and substances entered for consumption or warehousing from 
an FTZ, the Final Rule is effective 24 months after publication of the 
Final Rule in the Federal Register.

A. 18-Month Effective Date--Domestic and eFiled Certificates

    The Final Rule provides an 18-month effective date for regulated, 
domestic products and substances that are required to be certified. 
Domestic certificates should not be eFiled. However, the Final Rule 
includes three primary changes for domestic certificates:
     Sec.  1110.7--Unless otherwise stated in a specific rule, 
the manufacturer is the finished product certifier that must issue a 
certificate. However, for privately labeled products, the private 
labeler is the finished product certifier that must issue a 
certificate, unless the manufacturer issues the certificate.
     Sec.  1110.11(a)(7)--Include an attestation of compliance.
     Sec.  1110.11(c)--Unless otherwise provided by the 
Commission, if a finished product certifier is claiming a statutory or 
regulatory testing exclusion for an applicable rule, then in addition 
to listing all applicable rules, and in lieu of providing the date and 
place of testing, the certificate must list the applicable testing 
exclusion.
    If a product is privately labeled, the Final Rule shifts the 
responsibility of certification onto the private labeler, who becomes 
the finished product certifier that must certify the product or ensure 
that the manufacturer certifies the product. A privately labeled 
product

[[Page 1828]]

is one that is branded and does not contain the name of a manufacturer. 
Currently, CPSC's website advises that firms list testing exclusions on 
certificates; the Final Rule will require certificates to list such 
exclusions. Thus, when a rule applies, but a certifier does not test to 
the rule because a testing exclusion within a rule or statute applies, 
the Final Rule requires that such testing exclusion be listed on the 
certificate instead of the name of the testing laboratory. CPSC's 
website contains a list of all testing exclusions to include on a 
certificate, where applicable.\35\ This additional information will 
require certifiers to review the requirement, assess their products, 
and align their certificates accordingly. Because domestic 
manufacturers and private labelers must reassess their business 
relationships and responsibilities, and certificates will now be 
required to identify testing exclusions, the Final Rule's effective 
date for domestically manufactured products is 18 months after 
publication in the Federal Register.
---------------------------------------------------------------------------

    \35\ Currently available at: https://www.cpsc.gov/s3fs-public/BetaPilotCitationandTestingExclusionCodesv3.xlsx.
---------------------------------------------------------------------------

    With regard to eFiled products, CPSC surveyed Beta Pilot 
participants to gauge their preparation time for eFiling.\36\ On 
average, Beta Pilot participants took five weeks to prepare for the 
Beta Pilot and create their Business Account in the Product Registry. 
This preparation included attending meetings, reviewing and 
understanding CPSC's guidance documents, communicating internally and 
externally with trade partners, and organizing certificate data in an 
electronic format. Furthermore, Beta Pilot participants stated that 
their customs brokers needed to concurrently update their software to 
enable transmission of the PGA Message Set into ACE via the Automated 
Broker Interface. Several brokers who assisted importers in the Beta 
Pilot estimated that this update (either in-house or from a software 
developer) takes three to 12 months, with an average of nine months. 
Based on this feedback, as well as public comments, the Final Rule is 
effective for all imported, products regulated by CPSC 18 months after 
publication of the Final Rule in the Federal Register for all entry 
types, except for products entered for consumption or warehousing from 
an FTZ.
---------------------------------------------------------------------------

    \36\ Tab C of Staff's Final Rule Memo contains the Beta Pilot 
participant survey responses.
---------------------------------------------------------------------------

B. 24-Month Effective Date--Products Entered for Consumption or 
Warehousing From an FTZ

    For regulated products imported into an FTZ and subsequently 
entered for consumption or warehousing, the Final Rule is effective 24 
months after publication of a Final Rule in the Federal Register. Based 
on discussions with the National Association of Foreign Trade Zones 
(NAFTZ) and other importers, updating processes and software to meet 
this Final Rule will be particularly challenging for importers using 
FTZs. Importers can use FTZs in various ways before entering consumer 
products into customs territory for consumption or warehousing. For 
example, importers can use an FTZ to: hold products prior to making 
entry into the United States; assemble components of products from 
various manufacturing sites into finished products; bring products into 
compliance with CPSC rules; manufacture components or finished 
products; or test and certify finished products. Although products and 
materials admitted into an FTZ are accounted for on CBP Form 214, when 
products are imported into the United States, CBP allows for entry to 
occur on a weekly basis, including estimation of the number of products 
removed from an FTZ for entry for consumption. If this estimate is 
exceeded, entry must be made for the excess quantity prior to its 
removal from an FTZ into customs territory.
    CBP's current FTZ import procedure does not allow accurate CPSC PGA 
Message Sets to be attached to CBP entries. Commenters (Comment 44), 
including the NAFTZ, state that FTZ importers require additional time 
before eFiling implementation to build the necessary infrastructure to 
accommodate accurate CPSC PGA Message Sets and to troubleshoot issues. 
Commenters explain that the First-In-First-Out inventory accounting 
method applicable to fungible merchandise within an FTZ uses a Unique 
Identifier (UIN) for inventory control and recordkeeping which has no 
relationship to the compliance data CPSC requests. Commenters explain 
that currently, FTZ imports can only attach the latest certificate 
associated with an article/supplier combination and cannot attach a 
specific certificate at the inventory level that CPSC's Message Set 
requires. Commenters state that FTZ importers will require significant 
changes to their current software to comply with an eFiling 
requirement. Moreover, commenters allege that FTZ procedures are 
incompatible with a requirement to file certificates at entry summary, 
because goods imported from an FTZ may have already been shipped to 
stores and possibly sold, negating CPSC's ability to place such goods 
on hold for examination.
    Commenters encourage CPSC to work with the CBP Border Interagency 
Executive Council (BIEC) to build a single window concept inclusive of 
FTZs and provide a transition period of at least 24 months. CPSC staff 
further informs that CBP processes for FTZ imports would also need to 
be updated to accommodate an eFiling requirement, but 24 months is 
likely necessary for full implementation of eFiling for FTZ-imported 
products and substances.
    CPSC intends to work with the trade and with CBP in the coming 
months, to initiate conversations on software solution(s) that would 
best allow compliance with CPSC's Message Set. Once a software solution 
is identified, meeting the eFiling requirement will involve software 
development, testing, implementation, and troubleshooting. Based on 
CPSC's experience with developing and testing IT solutions for the Beta 
Pilot, for products entered for consumption or warehousing from an FTZ, 
the effective date is 24 months after publication of the Final Rule in 
the Federal Register.

VII. Final Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires 
agencies to prepare a regulatory flexibility analysis unless the head 
of the agency certifies that the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
In the SNPR, the Commission certified that the proposed rule would not 
have a significant impact on a substantial number of small businesses. 
88 FR 85760, 85783. The Commission received additional information 
during the SNPR comment period and the eFiling Beta Pilot regarding: 
(1) initial startup burden for eFiling; (2) filing fees; (3) Disclaimer 
Message Sets (disclaims); and (4) de minimis entry filings. Based on 
these comments, the Commission has prepared a final regulatory 
flexibility analysis (FRFA) that includes an analysis of this 
additional information. The conclusion of this FRFA is that the cost of 
the Final Rule is likely less than one percent of the revenue for a 
small firm, and therefore does not impose significant costs to a 
substantial number of firms.

[[Page 1829]]

A. Need for Agency Action and Objectives of the Rule

    Sections I and II of the preamble describe the need for agency 
action and objectives of the Final Rule.

B. Issues Raised by Comments and Resulting Changes

    Several SNPR commenters provided additional information regarding 
costs to importers and eFilers, including technology and staff-related 
costs from initial startup activities for eFiling, filing fees, 
disclaims, and de minimis entries. See Comments 53-63 in section IV.N 
of this preamble.

C. Small Entities to Which the Rule Will Apply

    The Final Rule applies to all importers and domestic manufacturers 
\37\ required to issue certificates for products or substances subject 
to a CPSC rule, ban, standard, or regulation, that are imported for 
consumption or warehousing into the United States or are distributed in 
commerce.\38\ The Initial Regulatory Flexibility Analysis (IRFA) 
estimated the number of small businesses impacted by the rule. 88 FR 
85760, 85783. This FRFA uses these same estimates, which are displayed 
in Table 2.
---------------------------------------------------------------------------

    \37\ The rule also applies to private labelers who may be 
contingent or substitute recordkeepers or filers. However, in order 
to avoid double counting of impacts, staff developed the analysis 
for domestic manufacturers and importers only.
    \38\ Part 1107 governs the creation and recordkeeping 
requirements for CPCs. Among other requirements, part 1107 requires 
that importers and domestic manufacturers of children's products 
issue a CPC affirming that the firm has met third party testing 
requirements: https://www.ecfr.gov/current/title-16/chapter-II/subchapter-B/part-1107.

                       Table 2--Estimated Number of Small Businesses Impacted by the Rule
----------------------------------------------------------------------------------------------------------------
                                                                   Non-children      Children
                         Small business                              products        products          Total
----------------------------------------------------------------------------------------------------------------
Manufacturers...................................................           7,771          18,852          26,623
Importers.......................................................          35,290         211,148         246,438
Number of Small Business........................................          43,061         230,000         273,061
----------------------------------------------------------------------------------------------------------------

    Table 3 presents an estimate of the number of certificates produced 
annually by small firms impacted by the Final Rule. These estimates 
assume small firms produce 10 percent of the number of certificates the 
average firm in their industry produces:

         Table 3--Estimated Number of Certificates Produced Annually by Small Firms Impacted by the Rule
----------------------------------------------------------------------------------------------------------------
             Certificates created by small business                    GCCs            CPCs            Total
----------------------------------------------------------------------------------------------------------------
Manufacturers...................................................          34,438          11,590          46,028
Importers.......................................................          85,002         129,804         214,806
                                                                 -----------------------------------------------
    Total.......................................................         119,440         141,393         260,834
----------------------------------------------------------------------------------------------------------------

D. Compliance, Reporting, and Recordkeeping Requirements of the Rule

1. Potential Impact on Small Firms
    This FRFA assesses the economic costs that will be incurred by 
small U.S. firms impacted by the Final Rule. Typically, CPSC considers 
costs that exceed one percent of gross revenue to be an economically 
significant cost impact. This FRFA estimates the cost impact of the 
Final Rule on small firms arising from both extended recordkeeping of 
GCCs (i.e., the burden associated with the increasing the recordkeeping 
period for GCCs from three to five years) and eFiling (which includes 
(i) the hourly burden and (ii) the out-of-pocket costs from 
electronically filing certificate data for regulated, imported consumer 
products).
    Small firms face an hourly burden related to uploading or 
submitting information via;
     The CPSC Product Registry,
     Full Message Sets to CBP through a broker,
     Reference Message Sets (of certificates uploaded into the 
Product Registry) with simplified filings with CBP, and
     Disclaimer Message Sets (for products or substances that 
do not require a certificate).
    In addition to the hourly burden, small importers will face out of 
pocket expenses that include: Startup costs, and Filing fees to eFile 
certificates.
(a) Extended Recordkeeping of GCCs
    The Final Rule requires firms to maintain records of all 
certificates for five years. CPC's records are already required to be 
kept for a period of five years pursuant to part 1107. Currently, 
however, for non-children's products, firms are either required within 
specific rules to maintain records for three years or follow the 
guidance in the existing part 1110 to maintain records for three years. 
Thus, firms supplying non-children products will have to hold 
certificates and supporting documentation, such as test reports, for 
two additional years after the Final Rule becomes effective.
    To estimate this additional burden, the FRFA takes the difference 
of the total burden under the current requirements (i.e., baseline) and 
total burden with the Final Rule requirements. To estimate the number 
of non-children's product certificates that additionally require 
recordkeeping with the Final Rule, the FRFA conservatively uses the 
number of active certificates and multiplies by five (years). The FRFA 
estimates the number of certificates requiring recordkeeping in the 
baseline by multiplying the total number of certificates issued 
annually by the current recordkeeping period of three (years). The 
hourly burden of additional recordkeeping is the difference between 
active certificates and baseline certificates (i.e., the increase in 
the number of active certificates) multiplied by the estimated 3 
seconds it takes to ensure that records of active certificates are kept 
in a safe virtual storage location and the provision of routine 
maintenance of

[[Page 1830]]

records. The estimated total cost is equal to the number of burden 
hours multiplied by the hourly compensation of office and 
administrative support occupations \39\ of $35.56.\40\
---------------------------------------------------------------------------

    \39\ Bureau of Labor Statistics, ``Employer Costs for Employee 
Compensation'', Table 4. Employer Costs for Employee Compensation 
for private industry workers by occupational and industry group, 
June 2024, ``Total Compensation'' for ``Office and administrative 
support occupations'' under ``Goods-producing industries'', https://www.bls.gov/news.release/ecec.t04.htm.
    \40\ The cost per firm is $0.16. Three seconds per active 
certificate represent $0.02963 (3/3600 x $35.56), where $35.56 is 
the hourly compensation (includes benefits plus wage) of office and 
administrative support occupation in good producing industries as of 
June 2024. The estimated number of active GCCs is 597,202 and the 
net increase in the number of responses due to the move from 3 to 5 
years is 238,881. There are a total of 43,061 small firms producing 
GCCs, so the net increase in the average number of active 
certificate records is 5.5. The annual cost per firm is then roughly 
$0.16.
---------------------------------------------------------------------------

    Table 4 presents staff's estimate of the additional routine annual 
recordkeeping burden of the Final Rule to domestic manufacturers and 
importers. The total cost of maintaining GCC records for two additional 
years is $7,079; of this total $2,041 is a burden to manufacturers and 
$5,038 a burden to importers.

                 Table 4--Estimated Cost of Routine Annual Recordkeeping of GCCs by Small Firms
----------------------------------------------------------------------------------------------------------------
                                                                   Prior to the
        Cost of routine GCC recordkeeping for small firms              rule        With the rule    Net change
----------------------------------------------------------------------------------------------------------------
Active Certificates:
    Manufacturers...............................................         103,314         172,191          68,876
    Importers...................................................         255,007         425,011         170,004
Burden Hours:
    Manufacturers...............................................            86.1           143.5            57.4
    Importers...................................................           212.5           354.2           141.7
Cost of the Burden:
    Manufacturers...............................................          $3,062          $5,103          $2,041
    Importers...................................................          $7,557         $12,594          $5,038
                                                                 -----------------------------------------------
        Total Change in Cost for Routine GCC Recordkeeping......         $10,618         $17,697          $7,079
----------------------------------------------------------------------------------------------------------------

(b) eFiling of Certificates
    Small firms required to eFile finished product certificates, either 
a GCC or CPC, are likely to face an hourly burden due to eFiling 
activities. Importers will have two methods of filing certificate data 
with CBP: a Full Message Set, or a Reference Message Set. While the 
Final Rule does not require the use of the Product Registry, CPSC 
expects that most small importers will use the Product Registry to 
enter and maintain certificate data. The use of Reference Message Sets 
along with the Product Registry will likely reduce the time for 
storing, transmitting, and eFiling certificates. Full Message Sets are 
more burdensome than Reference Message Sets because they require 
repeated data entry, maintained by the importer or broker, rather than 
relying on CPSC's IT solution, the Product Registry, and a shortened 
Reference Message Set.
    To achieve compliance with the Final Rule's eFiling requirements, 
small importers of products requiring either a GCC or CPC may also 
incur out-of-pocket costs from several activities including startup 
costs (consisting of the one-time cost of updating technology and 
training staff for eFiling) and filing fees. The following sections 
present estimates for the hourly burden and out-of-pocket cost for 
eFiling.
(i) eFiling Hourly Burden
    The burden of eFiling is only a burden on importers. Domestic 
manufacturers are unaffected by eFiling.\41\ Within the category of 
eFiling, this FRFA considered the hourly costs of entering records in 
the:
---------------------------------------------------------------------------

    \41\ Except for providing domestic manufacturers with the 
ability to upload certificate data into the Product Registry, 
eFiling should not affect manufacturers. If each domestic 
manufacturer uploaded all the certificates it generated during the 
year, the total hourly burden would reach 111 hours. At a total 
compensation of $35.56 per hour for Office and Administrative 
Support Occupations in Good-producing industries as of June 2024, 
the cost of the annual burden to all domestic manufacturers would be 
$3,955; roughly $0.15 per manufacturer.
---------------------------------------------------------------------------

     CPSC Product Registry,
     Full Message Sets,
     Reference Message Sets, and
     Disclaimer Message Sets.
    Most importers will upload product certificate records for products 
regulated by CPSC into the Product Registry; 96.4 percent of eFilings 
by importers will likely use Reference Message Sets to submit 
certificate data already stored in the Product Registry based on data 
from the eFiling Beta Pilot. The FRFA uses this share for small 
importers. The FRFA assumes the remaining 3.6 percent of eFiled 
certificates to use a Full Message Set, which requires users to enter 
all data fields on a certificate every time a product is imported.
    Aside from Reference and Full Message Sets, some importers will 
file Disclaimer Message Sets for products or substances that do not 
require a certificate. Disclaimer Message Sets are not required but can 
be filed for finished products or substances under CPSC's jurisdiction 
that would otherwise require a certificate, but do not require one 
under the circumstances. Based on data from the Beta Pilot, the FRFA 
estimates that Disclaimer Message Sets will account for 14.4 percent of 
the total number of Reference and Full Message Sets.

[[Page 1831]]

    The Beta Pilot participants provided estimates for this FRFA 
regarding the time it would take importers to submit each type of 
Message Set. This FRFA assumes that eFilers would become more efficient 
over time as eFiling becomes widespread and learning takes place. 
Accordingly, this FRFA uses a learning curve \42\ that helps assess the 
impact of learning efficiencies in the processing time of Message Sets. 
Using this approach, the FRFA estimates that it would take participants 
an average of 15.3 seconds \43\ to file a Reference Message Set; half 
that amount of time, or 7.6 seconds,\44\ to file a Disclaimer Message 
Set; and 4.75 minutes \45\ to file a Full Message Set. Additionally, 
each certificate filed in the Product Registry as part of a multi-
certificate data upload would take an average of 8.7 seconds.
---------------------------------------------------------------------------

    \42\ Staff used the responses of Beta Pilot survey participants 
regarding the number of minutes it took them to enter or upload 
certificate data, along with the number of certificates each 
participant uploaded to estimate the average time per certificate at 
different volumes of certificate intake. Specifically, staff found 
that participants who entered or uploaded less than 100 certificates 
(an average of 39.7 certificates per participant), spend an average 
of 3.52 minutes filling out and submitting each Reference Message 
Set; while participants who entered/uploaded more than 100 
certificates (an average of 409 certificates per participant), spend 
an average of 0.2 minutes per Reference Message Set. Staff used 
these observations to fit a learning curve with a slope of -0.6147 
that implies a 34.7 percent time improvement for every doubling in 
the number of certificates processed. To be conservative, staff used 
a learning curve slope that is half the size of the slope estimated 
from the data (-1.229).
    \43\ Staff obtained 15 seconds as the weighted average of 18.6 
seconds for importers of children's products (who have less 
opportunities for learning as they file a lower number of 
certificates per year but generate a higher number of filings as a 
group--59.2 percent); and 12.2 seconds for importers of nonchildren 
products (who have more learning opportunities by filing a higher 
number of certificates per year but generate a lower number of total 
filings as a group--40.8 percent). The hypothetical time it would 
have taken to file the first certificate through a Reference Message 
Set was estimated as the highest average time observed from the Beta 
Pilot survey, or 4.64 minutes per certificate.
    \44\ Staff considered half the time of a Reference Set is 
reasonable given that a Disclaimer Message Set does not require 
inputting any certificate data or unique ID.
    \45\ Staff assumes that the learning curve slope (-0.6147) 
obtained for Reference Message Sets would also apply to Full Message 
Sets. Therefore, staff applied a similar learning curve to the 
estimated time for the first certificate filed through a Full 
Message Set using the average number of Full Message Set generated 
by each importer. Staff estimated the time it would have taken to 
file the first certificate as the average time to enter and transfer 
a single product certificate data to the broker for the submission 
of a Full Message Set, as provided by Beta Pilot survey respondents. 
This average from the survey was 12 minutes.
---------------------------------------------------------------------------

    This FRFA assumes, conservatively, that all importer certificates 
will be filed once in the Product Registry. Based on import 
surveillance data, this FRFA estimates that 20 Reference Message Sets 
will be filed annually per certificate.\46\ Then, using the number of 
Reference Message Sets per certificate, this FRFA estimates that 0.7 
\47\ Full Message Sets and 3 \48\ Disclaimer Message Sets will be filed 
annually per certificate.
---------------------------------------------------------------------------

    \46\ For importers of children's products, CPCs are filed with 
CBP on average 20 times per year. Note that large suppliers subject 
to part 1107 may have to certify and thus eFile many more products 
annually. Additionally, importers must eFile GCCs with CBP with each 
import; on average 20 times per year per GCC. Like with children's 
products, staff expects larger importers to file more frequently, 
while smaller importers may only file a few times a year.
    \47\ Beta Pilot data suggests that the number of Reference 
Message Sets would represent 96.4 percent of the total number of 
filings, excluding disclaims. Therefore, each certificate would be 
filed as a Full Message Set the remaining 3.6 percent of times, or 
0.7 times per year ([20/96.4] x 3.6%).
    \48\ Based on data from the Beta Pilot, the number of Disclaimer 
Message Sets is roughly 14.4 percent of the total number of Full and 
Reference Message Sets. Because a total of 20.7 filings of Full and 
Reference Message Sets would be submitted per certificate, then an 
average of 3 disclaims would be created annually per existing 
certificate, where 3 = 20.7 x 14.4%.
---------------------------------------------------------------------------

    The annual creation of certificates is industry dependent. Firms in 
some industries produce a low number of new annual certificates per 
year, usually due to lower levels of innovation or product turnover, 
while other industries produce a larger number of annual certificates. 
Therefore, the cost per firm in some industries may be larger than in 
others. For instance, high certificate turnover industries of small 
importers include Vinyl Plastic Film (43 annual certificates), 
Furniture (25 annual certificates), Special Packaging or PPA (23 annual 
certificates), and Clothing and Apparel (13 annual certificates)
    Table 5 presents staff's estimate of the number of annual GCC and 
CPC filings by importers, under the assumptions discussed earlier.

                   Table 5--Estimated Annual eFilings by Small Importers Impacted by the Rule
----------------------------------------------------------------------------------------------------------------
                      Filings by importers                             GCCs            CPCs            Total
----------------------------------------------------------------------------------------------------------------
Initial Filing in Product Registry..............................          85,002         129,804         214,806
Transmission of Full Message Set to Broker......................          62,630          95,640         158,271
Transmission of Reference Message Set...........................       1,700,044       2,596,076       4,296,120
Transmission of Disclaims.......................................         254,471         388,593         643,063
                                                                 -----------------------------------------------
    All Filings.................................................       2,102,147       3,210,113       5,312,260
----------------------------------------------------------------------------------------------------------------
Note: Totals made not sum due to rounding.

    Aggregating the processing times per type of certificate filing 
with the number of annual filings per certificate, the annual burden of 
the Final Rule per certificate would be 9.1 minutes.\49\
---------------------------------------------------------------------------

    \49\ An annual average of 20 Reference Message Set filings per 
certificate with each filing taking 15.3 seconds results in 305.8 
seconds per certificate. Additionally, one filing per year of 
certificate data in the Product Registry takes 8.7 seconds. Then, an 
annual average of 0.7 (or 0.7368 to be more accurate) Full Message 
Sets per certificate with each taking 4.8 minutes (or 4.7549) 
results in an additional 210.21 seconds per year. Finally, an annual 
total of 3 disclaims per certificate at 7.6 seconds each total 22.89 
seconds. Therefore, the Rule creates an annual time burden per 
certificate of 547.6 seconds, or 9.1 minutes.
---------------------------------------------------------------------------

    Table 6 shows the hourly burden on small importers.

        Table 6--Estimated Hourly Burden on Small Importers Impacted by the eFiling provision of the Rule
----------------------------------------------------------------------------------------------------------------
            eFiling hourly burden on small importers                   GCCs            CPCs            Total
----------------------------------------------------------------------------------------------------------------
Initial Filing in Product Registry..............................             205             314             519
Transmission of Full Message Set to Broker......................           4,963           7,579          12,543
Transmission of Reference Message Set...........................           7,220          11,026          18,247

[[Page 1832]]

 
Transmission of Disclaims.......................................             540             825           1,366
                                                                 -----------------------------------------------
    All Filings.................................................          12,930          19,744          32,674
----------------------------------------------------------------------------------------------------------------
Note: Totals made not sum due to rounding.

    Given the hourly burden and the $35.56 hourly compensation rate for 
each hour of burden, the average annual cost of eFiling per small 
importer at high turnover industries will be between $70 and $232, 
while in low turnover industries the hourly burden will be as low as 
$1.\50\ Given these small amounts, it is unlikely for the cost of the 
hourly burden of eFiling to exceed 1% of revenue for the typical small 
firm.\51\ Tables 7 shows the estimated annual cost of such burden on 
small importers.
---------------------------------------------------------------------------

    \50\ Staff expects small importers in industries such as 
Architectural Glazing Materials, Bicycle Helmets, and Bunk Beds to 
produce less than one certificate per year, on average.
    \51\ This FRFA assumes that most small firms file only 10 
percent the average number of certificates filed by the average firm 
within their NAICS code.

                   Table 7--Estimated Annual Cost of the Burden of eFiling on Small Importers
----------------------------------------------------------------------------------------------------------------
           Cost of eFiling hourly burden on importers                  GCCs            CPCs            Total
----------------------------------------------------------------------------------------------------------------
Initial Filing in Product Registry..............................          $7,305         $11,155         $18,460
Transmission of Full Message Set to Broker......................         176,495         269,520         446,015
Transmission of Reference Message Set...........................         256,761         392,090         648,851
Transmission of Disclaims.......................................          19,217          29,345          48,562
                                                                 -----------------------------------------------
    All Filings.................................................         459,778         702,110       1,161,888
----------------------------------------------------------------------------------------------------------------

    Staff expect small importers to incur a total cost of $1.16 
million, which approximates $4.71 per small importer. The estimated 
average hourly burden of eFiling for small importers of children's and 
non-children's products would be $3.33 and $13.03. These amounts are 
unlikely to exceed one percentage of the annual revenue of a typical 
small importer.
(ii) eFiling Out-of-Pocket Costs
    Startup Costs: eFiling may require some firms to invest in a 
combination of new technologies,\52\ as well as training and/or hiring 
staff to conduct eFiling activities. Large firms may be able to build 
these new technologies themselves. Third-party service providers may 
develop tools that large or small firms may use.\53\ Firms are also 
likely to train staff on the use of these new technologies and the 
updated processes that support eFiling of certificates, including 
participating in meetings with their brokers, reading guidance 
documents, and communicating and distributing information.
---------------------------------------------------------------------------

    \52\ For instance, larger importers and manufacturers may choose 
to invest in technology to enable batch uploads of data into the 
Product Registry or to submit certificate data to their brokers. 
Most small importers are unlikely to have the incentives to develop 
in-house tools, but they may purchase third-party software or 
services. The Final Rule, however, does not require any specific 
investments from large or small importers.
    \53\ CPSC does not expect small businesses to invest in 
technology due to the creation of CPSC's Product Registry. 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.
---------------------------------------------------------------------------

    A survey conducted among Beta Pilot participants indicated that 
firms invested roughly the equivalent of 60 staff hours in preparation 
for their participation in the Beta Pilot, including getting trained, 
understanding and communicating the guidance, gathering product 
information, and coordinating with their brokers. However, most firms 
that participated in the Beta pilot are of significant size, which 
likely implies the startup times for the average firm may not be as 
large. Also, the potential introduction of third-party tools or third-
party support to perform these duties will likely reduce the number of 
hours required for setting up the logistics of the average firm to 
conduct eFiling activities. Accordingly, the FRFA assumes that the 
average firm will invest the equivalent of only one-third of the value 
of startup activities, or the monetized equivalent of 20 hours,\54\ in 
all startup activities. Many firms could likely hire third parties that 
benefit from economies of scale, instead of devoting as many staff 
hours to startup tasks; or will use a combination of third-party 
vendors and staff to set up eFiling.
---------------------------------------------------------------------------

    \54\ This corresponds to a learning factor of 3, one sixth the 
size of the learning factor used to estimate processing times for 
Reference Message Sets.
---------------------------------------------------------------------------

    This FRFA converts the 20 hours of startup time into an average 
cost per firm of $1,086 using an average compensation rate for 
managerial and administrative occupations.\55\ This startup cost per 
firm does not exceed one percent of revenue of the typical small firm 
in each of the industries impacted by this Final Rule, as discussed 
later in this section.
---------------------------------------------------------------------------

    \55\ As of June 2024, the hourly rate for management, 
professional, and related occupations at good producing industries 
was $73.02, while the hourly rate for office and administrative 
support occupations was $35.56. Staff assumes that the hours 
invested in startup activities are one half managerial and one-half 
support staff, which produces an average hourly rate of $54.29.
---------------------------------------------------------------------------

    Filing Fees: Many importers use import brokers to facilitate 
customs filings and reporting with the U.S. government. Brokers 
typically charge a fee per entry or per entry line that is filed, and 
each entry line may contain one or more product certificates. During 
the eFiling Beta Pilot in 2024, brokers had made or were making 
technological investments needed for eFiling, and the fees that brokers 
would charge for eFiling would cover these investments. This FRFA 
includes these broker fees as a cost for importers. While it is 
uncertain what changes, and the magnitude of changes, firms would 
choose to make to their technology, brokers will likely seek to recover 
their investments through fees. Use of the Product Registry will reduce 
the

[[Page 1833]]

complexity of Message Sets by allowing importers to supply only a 
Unique ID for each product certificate, which may result in less 
complex entries and reduced brokers fees.
    The fees that brokers charge vary with the complexity of the 
Message Set and with the number of Message Sets filed. Most brokers 
charge a maximum fee per entry, which reduces the filing fees per 
certificate for firms that file multiple certificates per entry. This 
FRFA assumes that the majority of importers will choose to file as many 
product certificates as possible per entry, and this action will 
significantly lower the cost per individual product certificate filed. 
The estimated average fee per filing under these conditions is 
$0.77.\56\
---------------------------------------------------------------------------

    \56\ Average fees per certificate are estimated assuming a 
maximum fee per entry of $25, which is based on information provided 
by Beta Pilot participants. Staff then assumes that the average 
importer receives an average number of shipments per year, and 
estimated the number of certificates per entry dividing the average 
number of GCCs and CPCs per year by the average number of shipments. 
Finally, the average fees per GCCs and CPCs are estimated dividing 
$25 per entry by the average number of certificates included with 
each entry; these averages then are weighted by the total number of 
GCCs and CPCs to obtain an overall weighted average per certificate 
of $0.77.
---------------------------------------------------------------------------

    As discussed, the eFiling burden depends on the number of filings, 
the number of annual certificates generated by each small importer, and 
the frequency of product imports. This FRFA assumes that each 
certificate will generate a total of 23.7 annual filings,\57\ out of 
which 20.7 require broker fees \58\ for a total of $15.97 per 
certificate. Accounting for the number of certificates filed annually 
per NAICS code, the range of fees for an average small importer would 
fluctuate between $2 and $686 depending on the industry. This range is 
unlikely to exceed one percent of revenue for most small importers.
---------------------------------------------------------------------------

    \57\ This number of filings includes 20 Reference Message Sets, 
0.7 Full Message Sets, and 3 Disclaimer Message Sets per average 
certificate. Most brokers are not expected to charge a fee for 
Disclaimer Message Sets.
    \58\ Brokers will charge fees for 20.7 filings per certificate. 
This number results from adding up the expected number of Reference 
Message Sets per certificate (20) with the number of Full Message 
Sets (0.7).
---------------------------------------------------------------------------

2. Overall Cost to Small Importers
    CPSC estimates the cost to small importers \59\ of CPSC regulated 
products by summing the costs and sub costs from:
---------------------------------------------------------------------------

    \59\ The cost to small domestic manufacturers is non-
significant, only a few cents per firm, and indicated earlier, so it 
is not included in this section.
---------------------------------------------------------------------------

     recordkeeping,
     eFiling of certificates,
    [cir] filing hourly burden,
    [cir] eFiling out-of-pocket cost,
    [ssquf] startup costs, and
    [ssquf] filing fees.
    Table 8 shows the cost from the additional recordkeeping and 
eFiling requirements on small importers. Small importers, a total of 
35,290 small firms, will have to maintain records of GCCs and their 
supporting information for two additional years, which generates an 
additional annual cost of $5,038.\60\ Additionally, these 35,290 small 
importers \61\ will eFile GCCs at a burden of 12,930 hours, which is a 
cost of $459,778, and another 211,148 small importers will eFile CPCs 
with CBP at a total additional burden \62\ of 19,744 hours, which is a 
cost of $702,110. In total, this is 32,674 hours per year and a total 
estimated cost of $1.16 million for eFiling's hourly burden.
---------------------------------------------------------------------------

    \60\ If domestic manufacturers were included here, this figure 
would increase by $2,041 to $7,079.
    \61\ Staff estimates the number of small businesses during the 
PRA Analysis by multiplying the estimated proportion of small 
businesses for a given NAICS industry by the number of estimated 
firms for that industry. For an explanation of how staff estimated 
the number of firms see section VIII of this preamble.
    \62\ Additional Burden is defined as the difference between 
existing burden from statute and other applicable rules and that of 
the Final Rule.

                      Table 8--Total Estimated Initial Cost of the Rule to Small Importers
                                               [First-year costs]
----------------------------------------------------------------------------------------------------------------
           Annual cost of the final rule to importers                  GCCs            CPCs             All
----------------------------------------------------------------------------------------------------------------
Additional Recordkeeping Hourly Burden..........................          $5,038              $0          $5,038
eFiling Hourly Burden...........................................         459,778         702,110       1,161,888
    Total Startup Costs.........................................      38,317,945     229,264,000     267,581,945
    Annual Filing Fees..........................................       1,357,259       2,072,622       3,429,881
eFiling Out of Pocket Cost......................................      39,675,204     231,336,622     271,011,826
Impact of eFiling on Importers..................................      40,134,982     232,038,732     272,173,714
                                                                 -----------------------------------------------
    Total Cost of the Rule to Importers.........................      40,140,020     232,038,732     272,178,752
----------------------------------------------------------------------------------------------------------------

    In addition to the hourly burden, small importers of CPSC regulated 
products will also bear monetary costs that include total startup costs 
of $267.58 million and eFiling fees of $3.43 million for a total out-
of-pocket cost burden of $271.01 million. The total overall cost of the 
Final Rule on small importers reaches $272.18 million in the first year 
of the Final Rule of which $232.04 are linked to children's product 
certificates and $40.14 are linked to non-children product 
certificates.
    Table 9 presents the corresponding annualized costs of the Final 
Rule to small importers. As opposed to Table 8 that shows the total 
startup cost, Table 9 presents the annualized startup cost to small 
importers over a time span of 30 years at a 2 percent discount 
rate.\63\ The total annualized cost to small importers is $16.54 
million; $3.53 million for small importers of general use products and 
$13.01 million for small importers of children's products.
---------------------------------------------------------------------------

    \63\ This is rate of discount or default social rate of time 
preference set by Office of Management and Budget (OMB) Guidance for 
all effects from the present through 30 years into the future in 
Circular A-4 (Regulatory Analysis) of November 2023.

                        Table 9--Estimated Annualized Cost of the Rule to Small Importers
----------------------------------------------------------------------------------------------------------------
           Annual cost of the final rule to importers                  GCCs            CPCs             All
----------------------------------------------------------------------------------------------------------------
Additional Recordkeeping Hourly Burden..........................          $5,038              $0          $5,038
eFiling Hourly Burden...........................................         459,778         702,110       1,161,888
    Annualized Startup Costs....................................       1,710,893      10,236,620      11,947,513
    Annual Filing Fees..........................................       1,357,259       2,072,622       3,429,881

[[Page 1834]]

 
eFiling Out of Pocket Cost......................................       3,068,152      12,309,242      15,377,394
Impact of eFiling on Importers..................................       3,527,930      13,011,352      16,539,282
                                                                 -----------------------------------------------
    Total Cost of the Rule to Importers.........................       3,532,968      13,011,352      16,544,320
----------------------------------------------------------------------------------------------------------------

    Table 10 presents the average costs of the Final Rule per small 
importer. Small importers will incur an average cost of $1,104 per firm 
($272.18 million/246,438 small importers) in first-year costs in 
connection with the Final Rule's new requirements. The cost per small 
importer of non-children's products will be on average $1,137, while 
the cost per small importer of children's products will be $1,099. The 
difference between these two estimates is mainly driven by a larger 
number of certificates created by small importers of non-children's 
products.

                         Table 10--Estimated Average Cost of the Rule per Small Importer
----------------------------------------------------------------------------------------------------------------
                 Average cost per small importer                       GCCs            CPCs            Total
----------------------------------------------------------------------------------------------------------------
Average Additional Recordkeeping Hourly Burden..................           $0.14           $0.00           $0.02
Average eFiling Hourly Burden...................................           13.03            3.33            4.71
    Average Annualized Startup Costs............................        1,085.80        1,085.80        1,085.80
    Average Annual Filing Fees..................................           38.46            9.82           13.92
Average eFiling Out of Pocket Cost..............................        1,124.26        1,095.62        1,099.72
Average Impact of eFiling per Importer..........................        1,137.29        1,098.94        1,104.43
                                                                 -----------------------------------------------
Average Cost of the Rule per Small Importer.....................        1,137.43        1,098.94        1,104.45
----------------------------------------------------------------------------------------------------------------

3. eFiling Impact as a Percent of Filed Certificate Value
    The Final Rule requires importers to eFile certificates with CBP at 
entry, at which point the import value of the shipment is tabulated. 
This FRFA compares the burden of the eFiling requirements to the 
average sales value per certificate filed \64\ for imported products 
subject to the Final Rule's eFiling requirement. This approach provides 
a pragmatic assessment of the Final Rule's impact on small firms. Table 
11 shows the burden cost per certificate filed and its relative cost 
impact as a percentage of expected revenue per certificate.
---------------------------------------------------------------------------

    \64\ Staff obtained the shipment value per certificate filed 
from CPSC's division of import surveillance (EXIS). Staff added a 
60% markup to estimate the sales value of the imported products.

           Table 11--Estimated Annual Impact of the Rule on Small Importers as a Percentage of Revenue
----------------------------------------------------------------------------------------------------------------
       Cost as share of estimated revenue per certificate              GCCs            CPCs             All
----------------------------------------------------------------------------------------------------------------
Total Cost of the Rule to Importers.............................     $40,140,020    $232,038,732    $272,178,752
    Total Number of eFilings....................................       2,102,147       3,210,113       5,312,260
    Average Cost Per eFiling....................................           19.09           72.28           51.24
Estimated Revenue per Certificate Filed.........................          12,050          12,050          12,050
                                                                 -----------------------------------------------
    Cost as a % of Estimated Revenue per Certificate............         0.1585%         0.5999%         0.4252%
----------------------------------------------------------------------------------------------------------------

    Table 11 shows that small importers of general use products will 
bear an estimated burden of $19.09 per eFiling and a total initial cost 
of $40.14 million during the first year of implementation of the Final 
Rule. Small importers of children's products will bear an estimated 
$72.28 burden per eFiling for a total initial cost of $232.04 
million.\65\ During the first year of implementation of the Final Rule, 
the average burden of the Final Rule across importers of all products 
regulated by CPSC is $51.24, which represents 0.43 percent of the 
average revenue per certificate filed. If these initial cost estimates 
are annualized over a 30-year lifespan at a 2 percent discount rate, 
small importers will bear an annualized cost of $3.11 per certificate 
filing ($1.68 per GCC filing and $4.05 per CPC filing). These equate to 
$16.54 million in annualized cost to small importers: $3.53 million to 
small importers of general use products and $13.01 million to small 
importers of children products. The estimated impact per eFiling for 
both importers of general use products and importers of children's 
products is well under one percent of the estimated revenue from 
selling the imported products associated with each eFiling.
---------------------------------------------------------------------------

    \65\ Note that small importers of children's products as a group 
include a larger number of firms and eFilings than importers of non-
children's products.
---------------------------------------------------------------------------

4. Net Impact on Small Businesses
    CPSC uses the threshold of one percent of revenue to estimate 
whether a given rule will have a significant impact on the small 
businesses the rule covers.
    Table 12 shows the average revenue for firms smaller than the 
largest 50 firms in a given NAICS code.\66\ This segment is 
characteristic of smaller firms. The Final Rule impact does not exceed 
the threshold of one percent of the average revenue of this subset of 
small firms because the overall cost impact of the Final Rule is 
minimal. Several NAICS industries have an

[[Page 1835]]

average revenue of slightly under $1 million for firms smaller than the 
top 50. However, the one percent threshold (in this case, roughly 
$10,000) is greater than both the cost of the Final Rule of $1,137 per 
small importers of nonchildren's products, and $1,099 per small 
importers of children's products.
---------------------------------------------------------------------------

    \66\ ECN Core Statistics Economic Census (2017): Establishment 
and Firm Size Statistics for the U.S. https://www2.census.gov/programs-surveys/economic-census/data/2017/sector00/.
---------------------------------------------------------------------------

    In the SNPR the Commission requested comments on the average annual 
revenues of small businesses within the impacted industries and 
alternative industry classifications for SBA purposes, but did not 
receive any comments.

                                      Table 12--Average Revenue for Firms Smaller Than the Top 50 by NAICS Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            2017                           Average revenue for firms smaller than top 50 ($ thousands)
                                    --------------------------------------------------------------------------------------------------------------------
              Product                                                                                                            Min NAICS      1% of
                                       % Small      NAICS 1      NAICS 2      NAICS 3      NAICS 1      NAICS 2      NAICS 3      revenue      revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
Matchbooks.........................           97       339999       325998  ...........         $920       $8,491  ...........         $920           $9
Bicycle Helmets....................           83       339113       339920  ...........        4,305        1,979  ...........        1,979           20
CB Band Base Station Antennas......           75       334220  ...........  ...........        5,351  ...........  ...........        5,351           54
Walk Behind Power Mowers...........           95       333112  ...........  ...........        1,288  ...........  ...........        1,288           13
Swimming Pool Slides...............           85  ...........  ...........  ...........  ...........  ...........  ...........  ...........  ...........
Cellulose Insulation...............           37       322219       322299  ...........        3,445        4,127  ...........        3,445           34
Cigarette and Multipurpose Lighters           97       339999       325998  ...........          920        8,491  ...........          920            9
Garage Door Openers................           97       332321       332710       335999        5,069        1,806        4,220        1,806           18
Furniture (paint & entrapment),               85       337110       337121       337122        1,115        2,481          771          771            8
 Furniture (bunk beds).............
Furniture (bunk beds)..............           85       337124  ...........  ...........          979  ...........  ...........          979           10
Paints and Coatings................           90       325211       325510  ...........       18,334        5,321  ...........        5,321           53
ATVs...............................           95       336999  ...........  ...........        1,410  ...........  ...........        1,410           14
Pools and Spas (VGB Act)...........           85  ...........  ...........  ...........  ...........  ...........  ...........  ...........  ...........
Fireworks Devices..................           90       325998  ...........  ...........        8,491  ...........  ...........        8,491           85
Bicycles...........................           95       336991  ...........  ...........          958  ...........  ...........          958           10
Carpets and Rugs...................           95       314110  ...........  ...........        1,800  ...........  ...........        1,800           18
Mattresses.........................           95       337910  ...........  ...........        3,400  ...........  ...........        3,400           34
Refrigerators......................           95       333415       335220  ...........        9,159  ...........  ...........        9,159           92
Candles w/Metal Core Wicks.........           66       325612  ...........  ...........        3,266  ...........  ...........        3,266           33
Refuse Bins........................           62       326199  ...........  ...........       12,445  ...........  ...........       12,445          124
--------------------------------------------------------------------------------------------------------------------------------------------------------

5. Impact on Importers of De Minimis Shipments
    Merchandise imported by one person on one day that is accorded a 
duty exemption under 19 U.S.C. 1321(a)(2)(C), for which the aggregate 
fair retail value in the country of shipment does not exceed $800, is 
commonly known as a de minimis shipment. Such merchandise may be 
entered under the ``release from manifest'' process or via the ACE 
Entry Type 86 Test (89 FR 2630 (Jan 16. 2024)). Merchandise subject to 
PGA requirements, such as CPSC's PGA Message Set or certification 
requirement for regulated consumer products, is ineligible for entry 
under the ``release from manifest'' process. Accordingly, the Final 
Rule requires that importers file a type 86 entry for de minimis 
shipments to submit CPSC's PGA Message Set. Staff estimate that a 
significant number of small importers would need to file type 86 entry 
for de minimis shipments containing a product subject to a CPSC rule, 
ban, standard, or regulation. These small businesses ship thousands of 
units of products through de minimis entries. Staff considered current 
entry type 86 shipments in HTS codes that could fall within CPSC's 
jurisdiction, although CPSC has no way to determine whether these 
shipments contain consumer products or whether such products are 
regulated by CPSC. As shown in Figure 1, the median value of a de 
minimis shipment is about $30; after applying a direct-to-consumer 
markup, staff estimates the sales value is $48.\67\
---------------------------------------------------------------------------

    \67\ The sales value i.e. revenue, of the shipment is the value 
of the shipment that CPSC estimates based on trade data plus a 
direct-to-consumer markup of 60%. See https://www.shopify.com/retail/product-pricing-for-wholesale-and-retail. CPSC's estimate 
relies on de minimis shipments that filed an ET 86 entry, which does 
not include shipments that did not file an entry or international 
mail shipments. However, CPSC's estimate covers all de minimis 
shipments by extrapolating from the data based on the ratios of 
products under CPSC jurisdiction for de minimis shipments entered 
under Entry Type 86.

---------------------------------------------------------------------------

[[Page 1836]]

[GRAPHIC] [TIFF OMITTED] TR08JA25.000

    Under current shipping conditions, importers of parties eligible to 
file a type 86 entry would likely eFile a single certificate per entry; 
this would increase the filing fees per certificate to the point that 
it might represent a significant portion (greater than one percent) of 
the value of each shipment.
    CBP reports that they process approximately 4 million de minimis 
shipments a day.\68\ In 2022, CBP reported 685.1 million total de 
minimis shipments, which are also called section 321 shipments.\69\ 
Until this Final Rule is in effect, importers of regulated consumer 
products claiming a de minimis exemption are not required to submit 
CPSC's PGA Message Set using entry type 86. Accordingly, CPSC currently 
does not know how many de minimis shipments per day contain finished 
products within CPSC's jurisdiction, nor how many of those finished 
products are subject to a rule, ban, standard, or regulation enforced 
by CPSC.
---------------------------------------------------------------------------

    \68\ https://www.cbp.gov/frontline/buyer-beware-bad-actors-exploit-de-minimis-shipments.
    \69\ https://www.cbp.gov/newsroom/stats/trade.
---------------------------------------------------------------------------

    The RFA requires consideration of the impact of the Final Rule on 
U.S. small businesses. Importers can be either foreign \70\ or domestic 
firms and firms of varying sizes. CBP does not classify importers by 
size. Accordingly, without additional data on de minimis and mail 
shipments, and who uses this mode of importation, CPSC does not have 
sufficient information to estimate the number of small U.S. firms that 
would be impacted by the Final Rule requirements. To the extent that de 
minimis entries are primarily caused by foreign companies, for example, 
such costs would not be included in the FRFA impact assessment.
---------------------------------------------------------------------------

    \70\ For example, if a consumer received a direct shipment from 
a foreign company, no U.S. small business may be involved in the 
transaction.
---------------------------------------------------------------------------

    Moreover, as a result of the Final Rule, some firms may choose to 
cease using entry type 86 if this importation route becomes more 
costly, and may choose to bundle shipments using another entry type, 
such as an 01 entry for consumption or warehousing. However, CPSC does 
not have enough information to determine what percentage of the 
impacted firms would be able to structure their import transactions in 
a manner to avoid a substantial increase in fees. Additionally, CPSC 
does not know whether some of these firms may have other sources of 
revenue offsetting the type 86 entry filing requirement or whether some 
of these firms are actually subsidiaries of larger firms. Accordingly, 
CPSC is currently unable to estimate the impact of the Final Rule on 
small U.S. importers of de minimis shipments.

E. Alternatives for Reducing the Adverse Impact on Small Businesses

    CPSC considered three alternatives to the Final Rule:
    (1) Make eFiling of certificates voluntary, instead of mandatory;
    (2) Require PDF submissions of certificates rather than eFiling 
certificates; and
    (3) Extend the effective date of the Final Rule to 36 months for 
all products, regardless of their origin.
    Alternative 1 to the Final Rule would allow, rather than require, 
certificate data for imported products to be eFiled at entry. If the 
Commission adopted this alternative, the certificate would still have 
to be 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 meaningfully enhance 
the Commission's ability to target shipments for examination by using 
the additional certificate data elements collected via eFiling, nor to 
enforce and verify the accuracy of certificates. This alternative would 
largely maintain the status quo, because it is likely that only a few 
firms would choose to eFile certificates; therefore, unlike mandatory 
eFiling, this alternative would not reduce costly delays at the ports.
    Alternative 2 to the Rule would require PDF submissions of 
certificates. For imported products, the importer could upload a PDF to 
CBP's Document

[[Page 1837]]

Image System. Similar to Alternative 1, this alternative would not 
enhance the Commission's ability to target shipments for examination by 
using the additional certificate data elements collected via eFiling. 
Not only are PDF files not useful for targeting, but CBP is also 
unlikely to allow the collection and maintenance of a large volume of 
PDFs in ACE, because PDF files require a relatively large amount of 
storage space.
    Alternative 3 would delay implementation of the Final Rule by 
changing the effective date from 18 months for all consumer products 
subject to a CPSC rule, ban, standard, or regulation not entered from 
an FTZ and 24 months for products and substances entered for 
consumption or warehousing from an FTZ, to 36 months for all CPSC 
regulated products regardless of their origin. This would allow small 
firms importing from non-FTZ areas 24 additional months to implement 
any new technology and organizational changes needed for eFiling, train 
staff, communicate with partners, and perform quality controls, among 
other activities. Alternative 3 did not receive any substantive 
comments from small firms importing from non-FTZs indicating a need for 
such an extension. The Commission has already extended the 120-day 
effective date to 18 months, providing small firms with an ample amount 
of time for preparation and implementation activities.

VIII. Paperwork Reduction Act

    The Final Rule 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 Final Rule creates a new collection of information for 
certificates for non-children's products and expands the existing 
collection for Third Party Testing of Children's Products, OMB Control 
No. 3041-0159. The Children's Product OMB control number would expand 
to include eFiling certificates for imported children's products that 
are subject to a CPSC rule requiring certification. We update and 
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 contain this information.
    Respondents and Frequency: For products manufactured outside of the 
United States, respondents include importers of consumer products 
subject to a CPSC-enforced regulation. For products manufactured within 
the United States, respondents include manufacturers and private 
labelers of consumer products 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 Final Rule 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).
    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.
    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.

A. Hourly Burden for GCCs

    CPSC estimates that there may be 49,364 non-children's products 
firms subject to the Final Rule. On average, these firms are expected 
to create 27 certificates per year, for a total of 1,333,982 
certificates.\71\ CPSC assumes each certificate will require 5 minutes 
of labor per certificate, which equates to 111,165 hours spent on their 
creation.
---------------------------------------------------------------------------

    \71\ Totals shown may not exactly match the product of component 
parts due to rounding.
---------------------------------------------------------------------------

    These same firms must keep the records supporting the certificates 
for a period of five years. CPSC assumes recordkeeping will take, on 
average, 1 minute for record creation and initial storage and an 
additional 15 seconds for the routine annual maintenance of the 
certificate record. This annual burden comes to 27,791 hours (1.25 
minutes/60 x 1,333,982 certificates).
    The firms must also disclose each certificate to retailers and 
distributors of the product upon request; thus, staff estimates an 
additional 0.25 hours (15 minutes) burden for third-party disclosure. 
This sums to 333,495 hours (15 minutes/60 x 1,333,982 certificates).
    CPSC estimates the number of responses for eFiling as 23,491,168. 
The average filing takes roughly 22 seconds across filing modes. This 
adds to an estimated eFiling burden of 144,487 hours (22 seconds/3,600 
x 23,491,168).\72\
---------------------------------------------------------------------------

    \72\ The estimates from the equation may not match the total 
number of hours due to rounding.
---------------------------------------------------------------------------

    The aggregate burden of the Final Rule for suppliers of non-
children's products is 616,939 hours and has a total cost of 
$26,102,580. This estimate includes the burden imposed by statute, 
which non-children's products suppliers would bear in absence of the 
Final Rule. The net burden from the Final Rule--excluding the statutory 
burden--is 146,710 hours \73\ and the net cost is $5,217,007. Table 13 
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.
---------------------------------------------------------------------------

    \73\ This includes the entire eFiling burden of 144,487 hours 
and 2,223 hours of additional hours of recordkeeping due to the 
increase in the recordkeeping period of GCCs from 3 to 5 years.
---------------------------------------------------------------------------

    CPSC expects that 82 percent of the firms supplying non-children's 
products subject to the Final Rule will be importers with the remaining 
18 percent as manufacturers. As shown in Table 13, staff estimate the 
statutory burden borne by importers is 480,905 hours (78%) and the 
expected burden to manufacturers as 136,034 hours (22%). The net annual 
burden of the Final Rule of 146,710 hours can be broken into a

[[Page 1838]]

burden of 146,070 hours borne by importers (99.6%) and 640 hours borne 
by manufacturers (0.4%).

                                          Table 13--Total Burden on Non-Children Products Covered by Part 1110
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Cost per
                        Total burden                           Respondents   Frequency    Responses     Response      Burden    burden hour   Total cost
                                                                            of response                   time        hours         \74\      of burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certificates................................................        49,364         27.0    1,333,982       0.0833      111,165       $73.02   $8,117,279
Disclosure..................................................        49,364         27.0    1,333,982       0.2500      333,495        35.56   11,859,097
Recordkeeping...............................................        49,364         27.0    1,333,982       0.0208       27,791        35.56      988,258
eFiling.....................................................        40,665        577.7   23,491,168       0.0062      144,487        35.56    5,137,946
                                                             -------------------------------------------------------------------------------------------
    Total...................................................        49,364        557.0   27,493,113       0.0224      616,939        42.31   26,102,580
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Additional Burden from the Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total...................................................        49,364        475.9   23,491,168     0.006245      146,710        35.56    5,217,007
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Manufacturers
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certificates................................................         8,699         44.2      384,095       0.0833       32,008        73.02    2,337,219
Disclosure..................................................         8,699         44.2      384,095       0.2500       96,024        35.56    3,414,607
Recordkeeping...............................................         8,699         44.2      384,095       0.0208        8,002        35.56      284,551
eFiling.....................................................             0          0.0            0       0.0000            0         0.00            0
                                                             -------------------------------------------------------------------------------------------
    Total...................................................         8,699        132.5    1,152,286       0.1181      136,034        44.37    6,036,377
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Additional Burden to Manufacturers
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total...................................................         8,699          0.0            0       0.0000          640        35.56       22,764
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Importers
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certificates................................................        40,665         23.4      949,886       0.0833       79,157        73.02    5,780,059
Disclosure..................................................        40,665         23.4      949,886       0.2500      237,472        35.56    8,444,491
Recordkeeping...............................................        40,665         23.4      949,886       0.0208       19,789        35.56      703,708
eFiling.....................................................        40,665        577.7   23,491,168       0.0062      144,487        35.56    5,137,946
                                                             -------------------------------------------------------------------------------------------
    Total...................................................        40,665        647.8   26,340,828       0.0183      480,905        41.73   20,066,203
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Additional Burden to Importers
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total...................................................        40,665        577.7   23,491,168       0.0062      146,070        35.56    5,194,243
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals made not sum due to rounding.

B. Hourly 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 rules. 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 Final Rule 
adds a certificate eFiling requirement for importers of finished 
children's products and estimates the reporting burden for this 
requirement.
    Table 14 presents CPSC's estimate that there are 224,000 small 
importers supplying children's products. Commission staff estimates an 
average of 152 certificate filings per firm based on assumptions 
supported on data from the Division of Import Surveillance and the Beta 
Pilot, which means that 34,055,116 shipments related to imported 
children's products would be annually required to eFile certificates, 
with an estimated eFiling burden of 209,462 hours.\75\ This number only 
includes burden imposed by the Final Rule, so the net burden from the 
Final Rule is also 209,462 hours, and the cost of this additional 
burden from the Final Rule is $7,448,474.
---------------------------------------------------------------------------

    \74\ To estimate the cost of the hourly burden, CPSC staff used 
the hourly compensation (benefits plus wage) of management, 
professional, and related occupations in goods-producing industries 
for the production of certificates ($73.02), and the hourly 
compensation of office and administrative support occupations in 
good-producing industries for the disclosure, recordkeeping, and 
eFiling of certificates ($35.56). These hourly compensation 
estimates were obtained from the report on ``Employer Cost for 
Employee Compensation'' prepared by the U.S. Bureau of Labor 
Statistics as of June 2024. https://www.bls.gov/news.release/ecec.t04.htm.
    \75\ The average filing takes roughly 22 seconds across filing 
modes. This adds to an estimated eFiling burden of 209,462 hours (22 
seconds/3,600 x 34,055,116). The result from this equation may not 
exactly match the total due to rounding.
    \76\ To estimate the cost of the hourly burden of eFiling, staff 
used the hourly compensation (benefits plus wage) of office and 
administrative support occupations in good producing industries 
($35.56). This hourly compensation estimate was obtained from the 
report on ``Employer Cost for Employee Compensation'' prepared by 
the U.S. Bureau of Labor Statistics as of June 2024. https://www.bls.gov/news.release/ecec.t04.htm.

[[Page 1839]]



                                                 Table 14--eFiling Children's Product Certificates (CPC)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Cost per
                        Total burden                           Respondents   Frequency    Responses     Response      Burden    burden hour   Total cost
                                                                            of response                   time        hours         \76\      of burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
eFiling.....................................................       224,000        152.0   34,055,116       0.0062      209,462       $35.56   $7,448,474
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Additional Burden from the Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total...................................................       224,000        152.0   34,055,116       0.0062      209,462        35.56    7,448,474
--------------------------------------------------------------------------------------------------------------------------------------------------------

C. Burden Estimate Breakdowns by Imported and Domestically Manufactured 
Products

    Table 15 provides a summary of the analysis for imported products, 
and Table 16 provides a summary of this analysis for domestically 
manufactured products.

                                    Table 15--Import Data Analysis by Product
----------------------------------------------------------------------------------------------------------------
                                              Total                      CPC                       GCC
                                   -----------------------------------------------------------------------------
              Product                  Total        Total      Percent of      CPC       Percent of      GCC
                                    respondents   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 doors................          140       74,190            0            0          100       74,190
Refuse Bins.......................        2,407        2,717            0            0          100        2,717

[[Page 1840]]

 
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 16--Domestic Manufacturer Data by Product Category
----------------------------------------------------------------------------------------------------------------
                 CFR                      Product categories      NAICS       NAICS_description      Respondents
----------------------------------------------------------------------------------------------------------------
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 U.S.C. 1472a......................  Liquid Nicotine            325411  Medicinal and Botanical           278
                                        Packaging.                         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 1841]]

 
16 CFR part 1700.....................  PPPA....................   325412  Pharmaceutical                    262
                                                                           Preparation
                                                                           Manufacturing.
16 CFR part 1700.....................  PPPA....................   325612  Polish and Other                  107
                                                                           Sanitation Good
                                                                           Manufacturing.
16 CFR part 1700.....................  PPPA....................   325620  Toilet Preparation                236
                                                                           Manufacturing:
                                                                           Mouthwashes (except
                                                                           medicinal)
                                                                           manufacturing; Permanent
                                                                           wave neutralizers.
16 CFR part 1301.....................  Refuse Bins.............   332439  Other Metal Container              20
                                                                           Manufacturing: Light
                                                                           gauge metal garbage cans
                                                                           manufacturing.
16 CFR part 1207.....................  Swimming Pool Slides....   339920  Sporting and athletic              24
                                                                           goods manufacturing.
16 CFR part 1205.....................  Walk Behind Power Mowers   333112  Lawn and garden tractor            29
                                                                           and home lawn and garden
                                                                           equipment manufacturing.
16 CFR part 1611.....................  Vinyl Plastic Film......   326113  Unlaminated Plastics Film          50
                                                                           and Sheet (except
                                                                           Packaging)
                                                                           Manufacturing--Vinyl and
                                                                           vinyl copolymer film and
                                                                           unlaminated sheet
                                                                           (except packaging)
                                                                           manufacturing.
16 CFR part 1611.....................  Clothing And Apparel....   315110  Hosiery and sock mills...           1
16 CFR part 1611.....................  Clothing And Apparel....   315190  Other apparel knitting              2
                                                                           mills.
16 CFR part 1611.....................  Clothing And Apparel....   315210  Cut and sew apparel                72
                                                                           contractors.
16 CFR part 1611.....................  Clothing And Apparel....   315220  Men's and boys' cut and            13
                                                                           sew apparel
                                                                           manufacturing.
16 CFR part 1611.....................  Clothing And Apparel....   315240  Women's, girls', and               34
                                                                           infants' cut and sew
                                                                           apparel manufacturing.
16 CFR part 1611.....................  Clothing And Apparel....   315280  Other cut and sew apparel          11
                                                                           manufacturing.
16 CFR part 1611.....................  Clothing And Apparel....   315990  Apparel accessories and            17
                                                                           other apparel
                                                                           manufacturing.
16 CFR part 1210 and 1212............  Multipurpose Lighters...   339999  All other miscellaneous            29
                                                                           manufacturing: Cigarette
                                                                           lighters (except
                                                                           precious metal)
                                                                           manufacturing.
----------------------------------------------------------------------------------------------------------------

D. Additional Recordkeeping Costs

    Public comments stated there were additional eFiling costs not 
considered in the SNPR. In response to these comments, agency staff 
analyzed survey responses and data from the eFiling Beta Pilot 
participants and queried import brokers to assess additional potential 
out-of-pocket expenses imposed by the Final Rule. As a result of this 
assessment, staff conducted an analysis of three additional annual cost 
burden categories: (1) startup costs to account for the burden of 
organizational meetings, staff training, and setting up accounts and a 
data storage system to house the certificate data; (2) fees charged by 
brokers to file message sets with CBP; and (3) de minimis filings. 
However, for the reasons stated in section VII.D.5 of this preamble, 
CPSC has insufficient information for a substantive burden analysis 
involving de minimis filings impacted by the Final Rule. Therefore, the 
following sub-sections discuss startup costs and filing fees.
1. Startup Burden Cost
    eFiling of certificates may require some importers to invest in a 
combination of new technologies and training or hiring staff to conduct 
eFiling activities. These new technologies may be built in-house by 
larger firms. Also, third-party service providers may develop tools and 
services that large or small importers could use.\77\ Firms are also 
likely to train their staff on the use of these new technologies and 
the updated processes that support the eFiling of certificates, 
including participating in meetings with their brokers, reading 
guidance documents, and communicating and distributing information.
---------------------------------------------------------------------------

    \77\ Technology investments may decrease the overall costs 
associated with managing certificate data, records, or entering 
products into the Product Registry or into a broker's database. 
Importers are not required to invest in this technology but larger 
firms with more resources at their disposal may do so, provided a 
positive return exists on such an investment. To minimize costs, 
most firms would likely take advantage of existing broker 
technologies and not make unnecessary changes to their system unless 
there was a business case to do so. Furthermore, testing facilities 
offer suppliers tools to manage and eFile certificate data. Online 
tools, such as Interlink by Intertek, can be used by firms of any 
size to capture, track, and file GCCs and CPSC.
---------------------------------------------------------------------------

    Firms that participated in the Beta Pilot indicated an average of 
60 hours of startup time \78\ for training, understanding and 
communicating eFiling guidance, gathering product information, and 
coordinating with brokers. However, most firms that participated in the 
Beta Pilot are of significant size, which implies the startup times for 
the average importer likely are not as large. Also, the potential 
introduction of third-party tools or third-party support to perform 
these duties will likely reduce the number of hours required for 
setting up the logistics of the average importer to conduct eFiling 
activities. Consequently, CPSC assumes that the average firm would 
invest the equivalent of only one-third the time, or 20 hours,\79\ in 
all startup activities. More than 264 thousand importers will be 
involved in eFiling, so ample room exists for learning and cost 
improvements.
---------------------------------------------------------------------------

    \78\ We use startup timeframes to estimate startup costs. In 
reality, many firms will likely hire third parties to benefit from 
the economies of scale, instead of devoting as many staff hours to 
startup tasks. This will reduce burden.
    \79\ This corresponds to a learning factor of 3, one sixth the 
size of the learning factor used to estimate processing times for 
Reference Message Sets.
---------------------------------------------------------------------------

    The 20 hours of startup time converts to an average cost per firm 
of $1,086 using the average wage rate of management and administrative 
occupations.\80\ Annualizing the average startup cost per firm at a 2% 
discount rate over 30 years, the estimated annualized cost equivalent 
per firm is $48.48. Table 17 presents a summary of estimated startup 
costs.
---------------------------------------------------------------------------

    \80\ As of June 2024, the hourly rate for management, 
professional, and related occupations at good producing industries 
was $73.02, while the hourly rate for office and administrative 
support occupations was $35.56. CPSC assumes that the hours invested 
in startup activities are one-half managerial and one-half support 
staff at an average hourly rate of $54.29.

                                         Table 17--eFiling Startup Costs
----------------------------------------------------------------------------------------------------------------
                                                                                                        Total
          Additional costs of response            Importers    Frequency    Responses     Cost per    additional
                                                              of response                 response      costs
----------------------------------------------------------------------------------------------------------------
GCC Startup Burden.............................       40,665            1       40,665       $48.48   $1,971,475

[[Page 1842]]

 
CPC Startup Burden.............................      224,000            1      224,000        48.48   10,859,718
                                                ----------------------------------------------------------------
    Total......................................      264,665            1      264,665        48.48   12,831,194
----------------------------------------------------------------------------------------------------------------
Note: Totals made not sum due to rounding.

2. Filing Fees
    Many importers use import brokers to facilitate customs filings and 
reporting with the government. Brokers typically charge a fee per entry 
or per entry line that is filed, and each entry line may contain one or 
more product certificates. The fees that brokers charge vary with the 
complexity of the Message Set and with the number of Message Sets 
filed. Most brokers charge a maximum fee per entry which reduces the 
filing fees per certificate for firms that file multiple certificates 
per entry. CPSC assumes that a majority of firms would choose to file 
as many product certificates as possible per entry, and this action 
will significantly lower the cost per individual product certificate 
filed. CPSC estimates the average fee per filing under these conditions 
to be $0.77.\81\ Importers are only expected to pay a filing fee for 
Reference Message Sets and Full Message Sets.
---------------------------------------------------------------------------

    \81\ This figure assumes an average fee per entry of $25, 
Average fees per GCCs and CPCs are estimated dividing $25 per entry 
by the average number of certificates included with each entry; 
these averages then are weighted by the total number of GCCs and 
CPCs to obtain an overall weighted average per certificate of $0.77.
---------------------------------------------------------------------------

    Table 18 presents an estimate of filing fees. CPSC estimates 
importers of non-children's products will file 19,697,612 annual 
message sets (Full and Reference Message Sets) for a fee. At the 
average filing fee per certificate of $0.77, the expected fees for all 
GCCs are $15,167,162 in total. CPSC also estimate that importers of 
children's products will file 28,555,603, annual message sets for a 
fee, and expect filing fees for CPCs to total $21,987,815 annually. The 
estimated annual total filing fees paid by all filers is $37,154,976. 
These totals exclude de minimis filings.

                                     Table 18--Estimated Annual Filing Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                        Total
                Additional cost                   Importers     Filings     Responses     Cost per     filling
                                                               with a fee                 response       fees
----------------------------------------------------------------------------------------------------------------
GCC Filing Fees................................       40,665          484   19,697,612        $0.77  $15,167,162
CPC Filings Fees...............................      224,000          127   28,555,603         0.77   21,987,815
                                                ----------------------------------------------------------------
    All Importer Filings.......................      264,665          182   48,253,216         0.77   37,154,976
----------------------------------------------------------------------------------------------------------------

E. Cost to the Federal Government

    The estimated annual cost of the information collection 
requirements to the federal government in Fiscal Year 2026 (October 1, 
2025, through September 30, 2026) is approximately $1.2 million in 2024 
dollars, which includes 2,080 staff hours to manage the eFiling program 
and $1 million in contracting costs. This estimate for Fiscal Year 2026 
is based in part on the annual salary for a mid-level salaried GS-13-5 
employee in the Washington, DC metropolitan area (effective as of 
January 2024) which is $64.28 per hour.\82\ This represents 67.7 
percent of total compensation (U.S. Bureau of Labor Statistics, 
``Employer Costs for Employee Compensation,'' March 2024, Table 2, 
percentage of wages and salaries for all civilian management, 
professional, and related employees.\83\ Adding an additional 32.3 
percent for benefits brings the average annual compensation for a mid-
level salaried GS-13-5 employee to $94.94 per hour ($64.28 / 0.677). 
Assuming that approximately 2,080 hours will be required annually, this 
results in an annual labor cost of $197,477.10 ($94.98 per hour x 2,080 
hours = $197,477) plus an annual contracting cost of $1,000,000 in IT 
development for an annual cost to the government of $1.2 million in 
Fiscal Year 2026. Contracting costs are expected to decrease 
substantially thereafter. Because eFiling will be fully functional and 
firms will be experienced with it, contractor support should only be 
required for ongoing operations and maintenance.
---------------------------------------------------------------------------

    \82\ $64.28 comes from rounding $64.275 = 133,692 a year/2,080 
hours per year. See https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2024/DCB.pdf.
    \83\ https://www.bls.gov/news.release/ecec.t02.htm
---------------------------------------------------------------------------

F. OMB Submission

    CPSC has submitted the information collection requirements of this 
Final Rule to OMB for review in accordance with PRA requirements. 44 
U.S.C. 3507(d).

IX. 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).

X. 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 does not apply to this Final Rule.

XI. Congressional Review Act

    The Congressional Review Act (CRA; 5 U.S.C. 801-808) states that 
before a rule may take effect, the agency issuing the rule must submit 
the rule, and

[[Page 1843]]

certain related information, to each House of Congress and the 
Comptroller General. 5 U.S.C. 801(a)(1). The CRA submission must 
indicate whether the rule is a ``major rule.'' The CRA states that the 
Office of Information and Regulatory Affairs (OIRA) determines whether 
a rule qualifies as a ``major rule.''
    Pursuant to the CRA, OIRA has determined that this Final Rule 
qualifies as a ``major rule,'' as defined in 5 U.S.C. 804(2). To comply 
with the CRA, CPSC will submit the required information to each House 
of Congress and the Comptroller General.

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.

0
For the reasons stated in the preamble, the Commission revises 16 CFR 
part 1110 to read as follows:

PART 1110--CERTIFICATES OF COMPLIANCE

Sec.
1110.1 Purpose and scope.
1110.3 Definitions.
1110.5 Finished 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 of finished product certifiers.
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 U.S. Customs 
and Border Protection (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), Pub. L. 110-314, apply to this part.
    (b) Additionally, the following definitions apply for purposes of 
this part:
    Automated Commercial Environment (ACE) means an electronic data 
interchange system authorized by CBP for the transmission of data and 
documents used to track, control, and process commercial imports, 
including entry and entry summary data, and includes any successor 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 four types of certificates, as defined in this section: General 
Certificates of Conformity (GCC), Children's Product Certificates 
(CPC), finished product certificates, 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 voluntary certificate of 
compliance for a component part, as defined in this section.
    Consignee, for purposes of this part, means a party who takes 
custody or delivery of imported finished products for which CPSC 
certificate data are required, and may be held legally responsible by 
CPSC for the required finished product certificate data as set forth in 
Sec.  1110.15.
    eFile means to electronically file the required data elements on a 
finished product certificate, as described in Sec.  1110.11, into ACE, 
in the format required in Sec.  1110.13(a)(1).
    Electronic certificate means the set of required data elements on a 
finished product certificate, described in Sec.  1110.11, that are 
available in, and accessible by, electronic means, in the format 
described in Sec.  1110.9(c).
    Finished product means a consumer product or other product or 
substance, or a part of a consumer product or substance, that 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, that is imported for consumption or warehousing, or is 
distributed in commerce, and that is packaged, sold, or held for sale 
to, or for use by, consumers.
    Finished product certificate means a certificate of compliance for 
a finished product, as defined in this section, that is required by 
Sec.  1110.5. There are two types of finished product certificates: 
Children's Product Certificates (CPCs) and General Certificates of 
Conformity (GCCs).
    Finished product certifier means a party who is required to issue a 
finished product certificate pursuant to Sec.  1110.7. Pursuant to 
sections 14(a)(1) and (2) of the CPSA (15 U.S.C. 2052, 2063(a)(1), and 
2063(a)(2)), a finished product certifier must be an importer, as 
defined in this section, or a manufacturer or private labeler as 
defined in sections 3(a)(11) and (12) of the CPSA (15 U.S.C. 
2052(a)(11) and (12)).
    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, for the purposes of this part, means the Importer of 
Record (IOR) eligible to make entry for imported finished products 
under the Tariff Act of 1930, as amended (19 U.S.C. 1484(a)(2)(B)), who 
may be an owner, purchaser, or authorized customs broker; provided 
that, if the IOR is an authorized customs broker, the customs broker 
may identify the owner, purchaser, or consignee of the finished 
products who authorized the customs broker to make entry, as the party 
responsible for compliance with CPSC certificate requirements as part 
of the finished product certificate data filed in CPSC's PGA Message 
Set. For finished products imported by mail, or for which a de minimis 
duty exemption under 19 U.S.C. 1321(a)(2)(C) is claimed, the importer 
for purposes of CPSC's certificate requirements is a party

[[Page 1844]]

eligible to make entry for the finished products pursuant to CBP 
statutes and regulations, who may be an owner, purchaser, consignee, or 
authorized customs broker. For purposes of this rule, CPSC will not 
typically consider a consumer purchasing or receiving products for 
personal use or enjoyment to be the importer responsible for 
certification.
    Manufacturer as defined in section 3(a)(11) of the CPSA, means any 
person who manufactures or imports a consumer product. 15 U.S.C. 
2052(a)(11).
    Owner or purchaser, for purposes of this part, means a party who 
has a financial interest in imported finished products for which CPSC 
certificate data are required, including the actual owner of the 
finished products, who may be held legally responsible by CPSC for the 
required finished product certificate data as set forth in Sec.  
1110.15.
    Private labeler as defined in section 3(a)(12) of the CPSA, means 
an 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 consumer product 
bears a private label if: (i) the product (or its container) is labeled 
with the brand or trademark of a person other than a manufacturer of 
the product; (ii) the person with whose brand or trademark the product 
(or container) is labeled has authorized or caused the product to be so 
labeled; and (iii) the brand or trademark of a manufacturer of such 
product does not appear on such label.
    Product Registry means a database created and maintained by CPSC 
that facilitates the electronic submission of required data elements on 
a finished product certificate, as provided in Sec.  1110.11, by a 
finished product certifier as stated in Sec.  1110.7(a), who is 
required to eFile the finished product certificate pursuant to Sec.  
1110.13(a)(1). 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, as required in Sec.  
1107.2 of this chapter.


Sec.  1110.5  Finished 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 
finished product certificate.


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, as defined in 
this part, is the finished product certifier that must issue a finished 
product 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 is the finished product certifier that must issue a 
finished product certificate that meets the requirements of this part. 
However, if a finished product manufactured in the United States is 
privately labeled, the private labeler is the finished product 
certifier that must issue a finished product certificate that meets the 
requirements of this part, unless the manufacturer issues the finished 
product certificate.


Sec.  1110.9  Certificate language and format.

    (a) Language. An eFiled finished product 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. Finished product certificates for finished products 
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 
finished product 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 subsection (c) of this section.
    (c) Electronic certificates. An electronic finished product 
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 finished product certificate, the URL or other electronic means, 
and the unique identifier are accessible, along with access to the 
electronic finished product certificate itself, to the Commission, CBP, 
distributors, and retailers, on or before the date the finished product 
is distributed in commerce. If the electronic finished product 
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 finished product certificate must:
    (1) Identify the finished product(s) covered by the certificate. 
Finished product certificates must contain 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. Finished product certificates 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 finished product certifier that is 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 records listed in 
Sec.  1110.17 on behalf of the finished product certifier. The 
individual can be a position title, provided that the position is 
always staffed and responsive to CPSC's requests.
    (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 place(s) (including for each 
third party conformity assessment body or other

[[Page 1845]]

party on whose testing the finished product certificate depends, the 
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) Provide the finished product certifier's attestation. For 
eFiled certificates required in Sec.  1110.13(a)(1), attestations are 
included in the Product Registry and in CPSC's Partner Government 
Agency (PGA) Message Set CBP and Trade Automated Interface Requirements 
(CATAIR) Implementation Guide (including revisions thereto). Paper and 
electronic finished product certificates described in Sec.  1110.9(b) 
and (c), and required in Sec. Sec.  1110.13(a)(2), (b), and (c), must 
include the following attestation by the finished product certifier:

    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 individual maintaining records, as described in Sec.  
1110.11(a)(4), a finished product 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) of this chapter, 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 finished product 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 finished product certificate 
shall identify the applicable testing exclusion.
    (d) Duplicative testing not required. Although finished product 
certificates must list each applicable rule, ban, standard, or 
regulation separately, finished product certifiers are not required to 
conduct the same third party test on each sample more than once when a 
rule references, or incorporates fully, another applicable consumer 
product safety rule or similar rule, ban, standard, or regulation under 
any other law enforced by the Commission with the same requirement.


Sec.  1110.13  Certificate availability.

    (a) Accompanying certificates. A finished product certificate must 
accompany each finished product or finished product shipment required 
to be certified pursuant to Sec.  1110.5. Each finished product 
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 finished products 
offered for consumption or warehousing from a Foreign Trade Zone, or 
finished products eligible for the de minimis duty exemption under 19 
U.S.C. 1321(a)(2)(C), the finished product certifier must eFile the 
finished product certificate data elements required in Sec.  1110.11 at 
the time of filing the entry, or the time of filing the entry and entry 
summary, if both are filed together, in ACE 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 by mail, the finished product certifier must 
enter the finished product certificate data elements required in Sec.  
1110.11 into CPSC's Product Registry before arrival of the product or 
substance 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 finished product certificate available for 
inspection immediately, meaning within 24 hours, upon request by CPSC.
    (b) Furnishing certificates. A finished product certifier must 
furnish the required finished product certificate to each distributor 
or retailer of the finished product.
    (c) Availability. Finished product certifiers must make finished 
product certificates available for inspection immediately, meaning 
within 24 hours, upon request by CPSC or CBP.


Sec.  1110.15  Legal responsibility of finished product certifiers.

    Finished product certifiers may, directly or through another 
entity, maintain an electronic certificate platform. Pursuant to part 
1109 of this chapter, a finished product certifier may rely on another 
party to test or certify component parts or finished products. Also, 
for purposes of Sec.  1110.13(a)(1), a finished product certifier may 
rely on another party to enter data into the Product Registry or to 
certify finished products on their behalf. The finished product 
certifier, identified in Sec.  1110.7, remains legally responsible for 
the information in a finished product certificate, including its 
validity, accuracy, completeness, and availability.


Sec.  1110.17  Recordkeeping requirements.

    Finished product certifiers are required to maintain finished 
product certificates and the following records supporting such 
certificates for at least five years from the certificate creation 
date:
    (a) 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).
    (b) 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).
    (c) 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.


Sec.  1110.19  Component part certificates.

    Pursuant to part 1109 of this chapter, component part certificates 
are voluntary, but may be relied upon by a finished product certifier 
to issue a finished product certificate. Component part certificates 
must not be eFiled in ACE upon importation of a component part. 
Certifiers of component parts, and finished product certifiers that 
rely on component part certificates to issue a finished product 
certificate, must meet the requirements in part 1109 of this chapter. 
Component part certificates must meet the same form, content, 
recordkeeping, and availability requirements as finished product 
certificates, 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. 2024-30826 Filed 1-7-25; 8:45 am]
BILLING CODE 6355-01-P`