U.S. Consumer Product Safety Commission-2012 Safety Academy

This presentation was prepared by CPSC staff, has not been reviewed or approved by, and may not reflect the views of, the Commission.

Navigating the CPSC Import Process

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Office of Import Surveillance and Inspection

• Director• 3 Supervisory Compliance Investigators

(East, West, Central)• 2 International Trade Specialists (CTAC)• Twenty people stationed at 15 major

ports (various modes)• Will expand to other ports as soon as

budget resources permit; meanwhile, Field personnel continue to cover other ports as necessary

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Coordination with Customs

• ITDS/ Risk Assessment Methodology• Joint audits of importers (informed

compliance)• Joint programs targeting unsafe

consumer products by class• Importer Self Assessment (ISA)

Product Safety

Border Interagency Executive Council (BIEC)

• Information Sharing• Partnerships• Trade Modernization– Safe Port Act– CPSIA

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ITDS/ACE

• Systems and Process integration with CBP• Development of Risk Assessment

Methodology• In the Fall of 2011, CPSC became the only

agency to receive a live data feed from CBP• This web services tool gives qualified CPSC

staff access to much better information for targeting “high risk” consumer products

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Risk Assessment Methodology (RAM)

Goals (Short Term)• Support Hazard Programs manually• Guide planning of system integration

ITDS/RAM

Goals (Long Term)• Implementation of system that supports

ITDS/RAM• Implement Electronic Messaging

• Automate hazard program reporting.

Entry Review Process in FY 2011

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Entry Review Process with ITDS/RAM

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Informed Compliance

• Joint Programs by class of product• Joint Inspections– Provides specific guidance on CPSC

regulations– Provides specific importation

requirements for future activity with Customs

• Informed Compliance Inspections (ICI) 9

Importer Self Assessment- Product Safety

• Allows companies to apply for a program that labels them “low-risk”

• Provides benefits– Expedited testing– Conditional release of goods

• Good Importer Practices• Where to I get more Information?–www.cbp.gov

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Navigating the CPSC/CBP Import Process

• CPSIA• Prohibited Acts (15 USC 2068)

Import any product not in conformity with rule, standard or ban

Import any product subject to a voluntary corrective action taken by manufacturer, Commission has notified the public and manufacturer knew or should have known

Fail to furnish certificate or present false certificate of conformity

Unauthorized use of a safety mark

• Imported Products (15 USC 2066)Product refused admission shall be destroyed unless …Upon application by importer, Secretary of the Treasury

permits the export in lieu of destruction11

CPSC – Import Procedures

• CPSC Sampling and DetentionsSpecific statutory authority for sampling (15 USC 2066,

15 USC 1273)Detained merchandise remains under CBP custody

• CPSC Issues Notices of DetentionCompliance Investigator or Field Investigator will issueNotice will describe the suspected violation and the

statute governing that suspected violation; CPSC officer contact information will be on the Notice

Notice issued to importer with copies to Customs broker and CBP

Deal directly with CPSC

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CPSC – Import Procedures

• Detentions – Time FramesDetention notices to be issued as soon as possible after

sampling/examinationRecipient of Notice has 5 business days to provide information to help

resolve the detention; extensions can be grantedPolicy is to try to resolve detentions within 30 days

• Detentions of shipments under both CBP and CPSC authorityDetention notifications will be issued by both agenciesIf CBP seizes that will resolve the CPSC detention but not final CPSC

action (Letter of Advice could be issued) If CBP resolves its detention in favor of the importer, it will not release

the merchandise without resolution of the CPSC detention

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Reconditioning

• If it appears that a consumer product can be modified so it would not need to be refused admission, the CPSC may permit the product to be delivered from customs custody under bond to give the owner or consignee that opportunity

• If it turns out the product cannot be modified or the owner/consignee is not acting satisfactorily, CPSC may direct CBP to demand redelivery

CPSC – Import Procedures

• Conditional Release of MerchandiseCPSC can allow conditional release of merchandise under CBP

bond pending results of examination and testingMerchandise cannot be distributed while under conditional

releaseCase-by-case consideration

• Redelivery of MerchandiseRedelivery notice issued by CBP. Must be within 30 days after

the end of the conditional release periodRedelivery could lead to seizure, destruction or exportationFailure to redeliver results in assessment of liquidated damages

against importer (bond principal) and surety

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CPSC – Import Procedures

• Request for a HearingCPSA violations onlyImporter/owner/consignee can seek a full hearing under the Administrative Procedures Act

Product will remain under Government custody at importer’s expense during the pendency of the hearingCustody of goods remains with CBP

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Destruction or Export

• Products refused admission must be destroyed unless, upon application by the owner, consignee or importer of record, the Secretary of Treasury permits export in lieu of destruction

• If the product is not actually exported within 90 days of such approval, it must be destroyed

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Cost of Destruction

• All expenses of destruction (including salaries, storage fees, travel, per diem, etc) shall be paid by the owner or consignee

• If expenses of destruction are not paid, they become a lien against future imports by the same owner or consignee.

CPSC – Import Procedures

• Exportation/DestructionImporter may ask to export or destroy at any timePer agreement, exportation or destruction at importer’s

expense and must occur under Government supervision

• SeizureCPSC can request CBP to seize the product under Tariff

Act authorityIf seized, then CBP takes over the processFines, Penalties and Forfeitures Office issues notices;

CBP has authority to remit the forfeiture upon terms and conditions deemed appropriate

CPSC can suggest disposition but cannot compel it

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CPSC – Import Procedures

• Assessment of liquidated damages– Three times the entered value of

the shipment (cannot exceed bond amount)

– CPSC does control the mitigation decision for liquidated damages claims (16 CFR 1500.271(b))

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Certification at the Ports

• There is currently no requirement to file a certificate with CBP or any government agency as part of the entry process or otherwise

• CPSC may, by rule, provide for electronic filing of certificates up to 24 hours before arrival

• Electronic filing is currently being evaluated with Customs for submission at entry

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Questions

Carol Cave, Director, Office of Import Surveillance and Inspectionccave@cpsc.gov

Jeremy Baskin, Senior Advisor to the Executive Director, Office of Regulations and Rulings, CBP

Jeremy.baskin@dhs.gov

Consumer Product Safety Commission

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Mr. Dean W. Woodard U.S. CPSC Director Office of Education, Global Outreach, and Small Business Ombudsman

dwoodard@cpsc.gov business@cpsc.gov