Wednesday, October 30, 2013

Will we make the cut??

Many of you read our previous post that the requests made by the HTA were not being addressed by the CPSC.  

This morning there was a hearing to discuss what will be funded and what the top concerns of the CPSC are.
 
Here are some notes from the hearing held this morning where CPSC staff briefly presented the draft plan and then the CPSC commissioners asked questions:
  • The first question came from Tennenbaum - "what are we going to do about burden reduction?” Jay Howell responds “we are prepared to do some review and put together a briefing package on some of these issues identified by the Small Business Ombudsman and the HTA”, but it is not in the operating plan.
  •  Later in the Q&A Buerkle states that she is “concerned about the lack of burden reduction in the operating plan” to which Jay Howell responds “it is the authority of the commissioners to modify what shows up as the priorities of the commission.” And also adds that “burden reduction falls below other things in the operating plan, resources are limited, safety is more important.”
  • And towards the end of the hearing, Tennenbaum adds that she plans “to offer an amendment to fund burden reduction.” To which Adler adds that he “is delighted to hear Tennenbaum will propose a motion to fund some burden reduction.” And Robinson chimes in that “I want to add my name to the chorus for burden reduction.”
So on CPSIA burden reduction, we'll wait and see what Tennenbaum suggests in her amendment to the operating plan. The HTA will certainly be watching to see the level of commitment shown by her office.

Please know, we need support from our HTA membership to continue working on your behalf.  Please follow up with your Representatives and Senators, call or email Neal Cohen, the Small Business Ombudsman at the CPSC, and please consider donating to the HTA.  We have consistently worked on a purely volunteer basis and the funds received from members are used only for traveling and administrative costs. 

Tuesday, October 29, 2013

another blow by the CPSC

The CPSC has released the draft operating plan for 2014 and will hold a hearing tomorrow morning where the staff briefs the commissioners. Unfortunately, and as we expected, the draft operating plan has no allocation of resources for continuing to implement burden reduction called for in PL-112-28 with the exception of a single issue related to ATVs.



Nothing for establishing a list of equivalent tests, especially those from the E.U. in EN-71.

Nothing for expanding lead determinations list to include eight heavy elements from ASTM-F963-11.

Nothing for adding manufactured woods to the lead determinations list.

Nothing for creating and expanding a determinations list for phthalates.

Nothing for accepting results from a wider group of testing labs.

Nothing for defining a low volume periodic testing rule.

And nothing for publishing a wide variety of product specific guidance.



The link to the draft document is - http://1.usa.gov/16j5sC3.

Monday, September 16, 2013

Report - CPSIA + 5 Years

Introduction

During the Christmas buying season of 2007, Mattel Inc., RC2 Corp., and Marvel Toys (now defunct) were found to be selling toys with dangerously high lead content and toys with unsafe small parts. The Consumer Product Safety Commission (CPSC) properly identified these hazards and recalls were issued for millions of toys. These recalls scared consumers and the ruckus prompted congress to act, passing the Consumer Product Safety Improvement Act (CPSIA) in August of 2008.
The CPSIA created new regulations for the manufacture and sale of all children’s products. Among other things it includes: limits on heavy metals and phthalates, conformance to the ASTM toy safety standard, certification, labeling requirements, and mandates for third-party testing. These requirements caused considerable burdens for small and low volume toy manufacturers and importers based in the U.S. and Europe. These burdens threatened their very existence and they became known as the “unintended consequences” of the CPSIA.
The Handmade Toy Alliance (HTA) was formed in November of 2008 as an ad hoc group of small businesses that were adversely affected by the CPSIA. A true grassroots effort, the HTA board of directors has always been comprised of owners of small businesses and low volume toy and children’s products manufacturers. The HTA has never had offices, staff, or legal representation, but has operated on the efforts of its volunteer board of directors and with the assistance of our vast and growing membership.
Today we are an alliance of nearly 800 small-batch toy makers, children’s product manufacturers, specialty importers, and independent retailers from across the United States and Europe. We specialize in high quality, inspiring, and safe goods for children. The Handmade Toy Alliance seeks to:
  • lend a voice to specialty toy stores, small batch toy makers and children's product manufacturers;
  • assist in raising awareness of the issues that directly impact HTA members;
  • preserve access to unique handmade and small batch toys, clothes, and other children's products;
  • support and promote HTA members.
We continue to be considerably affected by the CPSIA, its amendment, and the subsequent rulings of the CPSC. Despite efforts by Congress to alleviate unnecessary burdens, the pathway to compliance continues to be littered with obstacles.

The Early Years

During 2009, 2010, and seven months of 2011, the HTA engaged with the political process in Washington DC to find solutions and remedies for the unintended consequences that were threatening all of us. It was a frustrating, complicated, and time consuming process to attempt to right a wrong that encumbered us through no fault of our own.
Four of our board members were invited to testify or provide input on the issues that negatively affected our membership. Twice we were represented by stay-at-home moms producing children’s products in home studios and twice by owners of small specialty toy stores. We appeared first before the House Commerce Committee in April of 2010, and again in February and April of 2011. Our testimony before the Senate Commerce Committee was in December of 2010. Our plight was described and published in national newspapers and we became the mouthpiece for small and micro businesses in the U.S. who earned their living making, selling, or importing children’s products in low volumes.
Working bills came and went but relief always seemed to be just out of grasp. Throughout the process, member businesses lost the fight to survive because relief from the burdens of the CPSIA was not forthcoming.

Public Law 112-28

On August 1st, 2011, the confluence of three events caused movement of a bill to fix the CPSIA– H.R.2715.
    1.      The retroactive 100 ppm lead limit approved by the CPSC two weeks earlier, 
    2.      The need to increase the U.S. debt ceiling to avoid a default a day later,  
    3.      and Congress’ desire to start August recess.
H.R.2715 was created, passed through the House under suspension of rules and then through the Senate by unanimous consent because the collision of these circumstances created a necessity to move quickly without the usual due process. We were told that H.R.2715 is like a speeding freight train and there’s no way to change it or stop it, just watch it go past. The previous two and a half years of lobbying and advocating were to be encapsulated and condensed into language we had not seen nor could comment on.
H.R.2715 became Public Law 112-28 later in August of 2011 and has two provisions relating to small business that are a result of our efforts. They are, in Section 2 APPLICATION OF THIRD PARTY TESTING REQUIREMENTS, special provisions for small batch manufacturers and also requirements for exploring and implementing burden reduction from third party test. PL 112-28 is not the legislative fix HTA desired, but instead placed the fate of all of our businesses in the hands of the CPSC by allowing the Commission to rule for relief and burden reduction.

Small batch provisions

The first relevant language appears in section 14(d)(4) of the Consumer Product Safety Act (CPSA) as amended by PL 112-28 under SPECIAL RULES FOR SMALL BATCH MANUFACTURERS:
“(A) SPECIAL CONSIDERATION; EXEMPTION.-
(i) CONSIDERATION; ALTERNATIVE REQUIREMENTS.—Subject to subparagraph (C), in implementing third party testing requirements under this section, the Commission shall take into consideration any economic, administrative, or other limits on the ability of small batch manufacturers to comply with such requirements and shall, after notice and a hearing, provide alternative testing requirements for covered products manufactured by small batch manufacturers in lieu of those required under subsection (a) or (b). Any such alternative requirements shall provide for reasonable methods to assure compliance with any applicable consumer product safety rule, ban, standard, or regulation. The Commission may allow such alternative testing requirements for small batch manufacturers with respect to a specific product or product class or with respect to a specific safety rule, ban, standard, or regulation, or portion thereof.
(ii) EXEMPTION.—If the Commission determines that no alternative testing requirement is available or economically practicable, it shall exempt small batch manufacturers from third party testing requirements under subsections (a) and (b).
(iii) CERTIFICATION.—In lieu of or as part of any alternative testing requirements provided under clause (i), the Commission may allow certification of a product to an applicable consumer product safety rule, ban, standard, or regulation, or portion thereof, based on documentation that the product complies with another national or international governmental standard or safety requirement that the Commission determines is the same or more stringent than the consumer product safety rule, ban, standard, or regulation, or portion thereof. Any such certification shall only be allowed to the extent of the equivalency with a consumer product safety rule, ban, standard, or regulation and not to any other part of the consumer product safety rule, ban, standard, or regulation.
(B) REGISTRATION.—Any small batch manufacturer that utilizes alternative requirements or an exemption under this paragraph shall register with the Commission prior to using such alternative requirements or exemptions pursuant to any guidelines issued by the Commission to carry out this requirement.
(C) LIMITATION.— [Excludes certain classes of products from alternative requirements and exemptions like durable infant and toddler products.]
(D) SUBSEQUENT MANUFACTURER.— [Excludes subsequent manufacturers further down a supply chain.]
(E) DEFINITIONS.— For purposes of this paragraph—
(i) the term ‘covered product’ means a consumer product manufactured by a small batch manufacturer where no more than 7,500 units of the same product were manufactured in the previous calendar year; and
(ii) the term ‘small batch manufacturer’ means a manufacturer that had no more than $1,000,000 in total gross revenue from sales of all consumer products in the previous calendar year. The dollar amount contained in this paragraph shall be adjusted annually by the percentage increase in the Consumer Price Index for all urban consumers published by the Department of Labor.
For purposes of determining the total gross revenue for all sales of all consumer products of a manufacturer under this subparagraph, such total gross revenue shall be considered to include all gross revenue from all sales of all consumer products of each entity that controls, is controlled by, or is under common control with such manufacturer. The Commission shall take steps to ensure that all relevant business affiliations are considered in determining whether or not a manufacturer meets this definition.

Application for domestic manufacturers

The CPSC never identified any “alternative requirements” as indicated in subsection (i) therefore allowing the exemption identified in subsection (ii). This provides an exemption from some third party testing for small batch manufacturers but not an exemption from compliance, labeling, or certification. Specifically, third party test must be performed for: lead in paint and other surface coatings, small parts when a product is age graded for children under three, metal jewelry, and durable infant or toddler products.
It is important to note that small batch manufacturers must still comply with all applicable safety rules and certify that their products meet the requirements. For those third party tests that are exempted, a small batch manufacturer must issue a general certificate of conformity based on first party testing, a reasonable testing program or a certificate of conformity provided by a component part supplier.
In addition, as subsection (B) indicates, a business desiring to utilize the exemption must register with the CPSC. Parts of the registration are publicly available including: the business name (often the owners name for sole proprietors), city, and state.

Application for small batch importers

The CPSC treats small batch importers as the manufacturer of record so that the same requirements that apply to domestic producers apply to the importer. A possibility for relief appears in subsection (iii) indicating the CPSC may accept compliance with an international standard as an alternative test when it is determined to be “the same or more stringent” than what is required by the CPSA. Unfortunately, international toy standard harmonization is far from a reality so that the law describes a relief method that will likely never exist.
In addition, the CPSC has added a requirement to the law so that the small batch revenue and volume requirements apply to both the foreign manufacturer and the U.S. based importer. In most cases, an HTA member small business importer brings products from second tier manufacturers in Europe to the U.S. for retail in specialty toy stores. The European manufacturer produces in low volumes and can meet the volume requirement but the revenue cap excludes them.
Thus HTA members who are importers or who operate specialty toy stores continue to be negatively affected by the trade barrier raised by the CPSIA between the E.U. and the U.S.

Reducing third party testing burdens

The second relevant language appears in section 14(d)(3) of the Consumer Product Safety Act  as amended by PL 112-28 under REDUCING THIRD PARTY TESTING BURDENS:
“(A) ASSESSMENT.— Not later than 60 days after the date of enactment of this paragraph, the Commission shall seek public comment on opportunities to reduce the cost of third party testing requirements consistent with assuring compliance with any applicable consumer product safety rule, ban, standard, or regulation. The request for public comment shall include the following:
[…]
(v) The extent to which evidence of conformity with other national or inter- national governmental standards may provide assurance of conformity to consumer product safety rules, bans, standards, or regulations applicable under this Act.
[…]
(vii) Other techniques for lowering the cost of third party testing consistent with assuring compliance with the applicable consumer product safety rules, bans, standards, and regulations.
(B) REGULATIONS.—Following the public comment period described in subparagraph (A), but not later than 1 year after the date of enactment of this paragraph, the Commission shall review the public comments and may prescribe new or revised third party testing regulations if it determines that such regulations will reduce third party testing costs consistent with assuring compliance with the applicable consumer product safety rules, bans, standards, and regulations.
(C) REPORT.—If the Commission determines that it lacks authority to implement an opportunity for reducing the costs of third party testing consistent with assuring compliance with the applicable consumer product safety rules, bans, standards, and regulations, it shall transmit a report to Congress reviewing those opportunities, along with any recommendations for any legislation to permit such implementation.
The CPSC has already requested comments as required and CPSC staff has prepared a document titled Consideration of Opportunities to Reduce Third Party Testing Costs Consistent with Assuring the Compliance of Children’s Products, dated August 29th, 2012. The Commission voted October 10th 2012 after a verbal motion stating “that, subject to resources allocated by the commission, and subsequent operating plans to carry out the potential opportunities to reduce third party testing costs, the commission approves the following actions by its staff: these items include efforts related to” and then simply lists 8 of the burden reduction recommendations. On the surface it appeared the Commission was voting to follow the staff recommendations and move burden reduction forward quickly and nearly within the one year timeframe mandated by PL 112-28.
However, with the release of the written motion, we discovered it only directs staff to draft a request for information (RFI) on each of the 8 burden reduction opportunities. Furthermore, the motion states that the burden for demonstrating the validity of the burden reduction method is on the submitter. Now the task of research and proof falls with the stakeholder and not with the CPSC. The HTA member stakeholder has neither the equipment nor the expertise to perform what is required to meet the “burden of proof.”
Subsequently in January of 2013, the commission voted to allocate resources in 2013 for staff to issue the RFIs for just 4 of the 8 opportunities. And then indicated a timetable with the statement “For each RFI, the Commission intends to provide resources in the fiscal year 2014 operating plan, to the extent the agency's safety work permits, to ensure staff reviews the responses and summarizes any recommended course of action on each item for the Commission.” We are lost in another round of comment and left to assume that it will be no earlier than 2015 before review and summary turn into promulgated rules.
Subsection (C) – REPORT, allows for the CPSC to report back to Congress when they lack authority to move forward with burden reduction. And of course it is always possible for the Commission to inform Congress on progress and obstacles stakeholders face. When the HTA personally suggested to the Commission that they report to congress issues continuing to affect small business stakeholders, they explicitly denied the request.
The progress the CPSC is making on these burden reduction opportunities is simply not acceptable. Small business, and all stakeholders, are being held hostage to pointless requirements like performing a solubility test on cotton fabric for barium.
The beneficial methods for reducing testing costs from the CPSC staff document of August 29th, 2012 are outlined below.

(1) Establish a List of Equivalent Tests to those in CPSC-Administered Children’s Product Safety Rules

The differences in toy safety standards in the U.S. and Europe continue to suppress the supply of small batch toys from Europe to specialty retailers in the U.S. In many cases the differences in regulations are small and in some cases even insignificant. But the small differences create a large economic hurdle for low volume manufacturers that must be cleared by completing multiple tests that are nearly redundant.
Subsequently, the CPSC Commissioners voted to move forward on this issue, but then chose not to fund the effort during the 2013 budget year.

(2) Research the Feasibility of Developing a List of Materials Determined Not to Contain the Eight Heavy Elements Listed in ASTM F963-11

The lead determinations list in 16CFR1500.91 lists raw materials that the CPSC has determined do not contain lead and therefore do not need to be tested. The list is a primary method used by members of the HTA to reduce the cost of compliance. The requirements of ASTM F963-11 with limits placed on concentrations of heavy metals other than lead complicate this pathway to compliance with additional tests that are superfluous.
Since low volume toys often use natural materials, the possible reduction in testing cost is significant. For all manufacturers who use natural materials that already receive a lead exemption, this additional determination is a useful course to pursue while at the same time not compromising safety.

(3) Investigate Adding Manufactured Woods to Lead Determinations List

The determination that wood does not contain lead is often used by low volume manufacturers to reduce the cost of compliance with the CPSIA regulation. “Manufactured woods” or laminated woods are frequently used in children’s products when any dimension of the product increases above 10 cm (like a wooden puzzle) or if the product includes a cavity (such as a shape sorting box or dollhouse.) For larger wooden components, manufactured wood is more stable and thus safer than wide pieces of solid wood, which can crack or splinter over time.
Adding manufactured woods to both the lead determinations list and a new determination list for ASTM F963-11 heavy metals allows low volume manufacturers to resume using this material without the substantial burden of additional testing while at the same time not compromising safety.

(4) Determinations for Phthalate Concentrations

The CPSC, in August of 2012, indicated that these materials do not inherently contain phthalates and so do not require third party testing: untreated/unfinished wood, metal, natural fibers, natural latex, and mineral products. Phthalates are primarily used to soften plastics and on occasion, plastic parts are used in handmade children’s products.
Other raw materials also likely do not contain phthalates and the HTA encourages the CPSC to investigate the potential to expand this list to include:
  • paper and paperboard;
  • printing inks;
  • textiles with manufactured fibers;
  • screen printing inks;
  • plant and animal derived materials; and
  • manufactured wood products.
An expanded list of phthalate determinations reduces the need for unnecessary tests and therefore reduces cost as well. The safety of a product is not compromised.

(5) Investigate CPSC Acceptance of Other Accreditation Bodies to Accredit Testing Laboratories to ISO/IEC 17025:2005

The Handmade Toy Alliance supports any effort to increase the number of testing bodies certified to test for CPSIA compliance - especially where this expands the reach within the E.U. or provides access in countries with limited or no certified labs.
The Commission has not issued a request for information or indicated a desire to move forward with this issue.

(6) Define a Periodic Testing Option Based on Volume of Products Manufactured Rather than Solely on a Time Period

The periodic testing rule sets the testing timeframe based solely on time. The HTA believes there needs to be a periodic test for low volume manufacturers based on quantities rather than time. A low volume manufacturer that performs a third party test can experience an economic savings by performing fewer tests within a fixed period of time.
The current rule overwhelmingly favors large manufacturers at the expense of smaller ones. The amount of risk which accumulates between periodic testing of an unchanging product is directly related to the number of units produced, not to the amount of time which has passed.

Why Small Batch Provisions have Limited Use

For various reasons, the small batch rules are not widely utilized by small business. Survey results from July 2013 indicate approximately one third of HTA members register with the CPSC and take advantage of the small batch exemption. Reasons given for not using the small batch exemption include: the complexity of the requirements, need for compliance and certification, and public registration.

Complexity

The small batch exemption only exempts manufacturers from a subset of required tests. Our members indicate that selecting the tests required for any specific product and the exemptions that apply is an arduous, time consuming process. The resources for making these selections are difficult to find, hard to read, and challenging to interpret. The technical information is equally difficult.
The HTA has asked repeatedly for product specific guidance to simplify the complexity of small batch rules. But after five years, we have consolidated product specific guidance for only a single category of children’s product – doll clothing.

Compliance and certification

Since the small batch exemption does not affect the requirements for compliance and certification, small businesses seek ways to assure themselves their products are safe in the absence of a test. Small batch manufacturers are required to certify their products based on a first party test, a reasonable testing program, or a previous third party test from a component supplier.
In many instances, a first party test is not possible because of the equipment required or the technical understanding needed to perform the test and interpret the results.
A small business owner could develop what they believe is a reasonable testing program, but it is unlikely to meet the CPSC’s strict interpretation of “reasonable testing program.”

Public registration

Because many small and micro businesses are sole proprietorships without a fictions name, there is a reluctance to publicly register as required to claim the small batch exemption. Registration exposes personal information.

The Path of Least Resistance

Just as water flowing downhill finds the path of least resistance, small business also finds the path of least resistance to reach compliance. So instead of the small batch exemption which is plagued with complexity and obstacles, two thirds of our membership depends heavily on burden reduction through the determinations lists, avoidance of problem materials, age grading, and carefully choosing their own route.
Other handmade toy makers have simply gone out of business or chosen to make products that are not designed for children because the CPSIA and subsequent relief efforts preserve a hurdle too high for small business to clear.

Determinations

The determinations list in 16CFR1500.91 identifies many materials that the CPSC has determined do not contain lead and therefore do not need to be tested for lead content. So if a manufacturer uses only materials from this list there is no need for a lead test. This is a simple application of the rules, easy to understand, and an effective means to reach towards compliance and certification.
But there are holes in this path that have opened with the adoption of the ASTM-F963-11 standard. These must be filled by the CPSC and include: determinations for the additional eight heavy elements required by ASTM-F963, determinations on phthalates, and a determination on manufactured woods.
Without the holes filled, some small businesses feel they have little choice but to ignore the requirement to test cotton fabric for barium, or natural solid wood for selenium.

Avoiding problem materials

It’s not a difficult stretch to imagine that if there is a single component of your children’s product that forces you to perform an expensive test, then you should look for an alternative component or simply remove that component from your product.
For instance, if you produce a wooden toy with a surface coating not on the determinations list that requires a test, then removing that coating and substituting bee’s wax avoids the costly test. Similarly, removing a zipper or button from doll clothing can also avoid expensive tests.

Age grading

The testing requirements on children’s products age graded for children under three years are more complex and burdensome. So instead of producing toys for children under three years, HTA members neglect this segment of the population and instead concentrate on products for older children. 
Of course the negatives side effects are fewer unique product choices for consumers and for the business owner, giving up a category with a significant source of revenue.

Choosing their own route

There are certainly instances where small business believes the path of least resistance is to continue doing what they have done for years to assure they produce a safe product: use their experience and wisdom to guide design and manufacture, and form relationships with their customers. Certain risks accompany this approach but the business owner balances the risk and the benefit.
A hybrid example occurs when some portions of the requirements are adhered to and others are ignored because of costs and complexity.

Conclusion

The missteps of a few very large toy companies precipitated regulations which damaged thousands of small and micro U.S. businesses and continues to encumber those that survive. A Congressional directive to remedy regulatory issues failed to solve the problems experienced by HTA members or even clearly direct the CPSC on a definite path of remediation.
Faced with inadequate good options for compliance while maintaining a viable business, the HTA business community out of necessity devised paths of least resistance. They are not attractive, they have negative side effects, and they may not meet the letter of the law; but they are simply paths of least resistance that balance compliance, risk, and business viability.
It is important to note that there continue to be many opportunities where burdens can be reduced and even eliminated without compromising the safety of consumers. These have been identified and discussed within Congress and the CPSC. They include:
  • Establish a list of equivalent tests, especially those from the E.U. in EN-71
  • Expand lead determinations list to include eight heavy elements from ASTM-F963-11
  • Add manufactured woods to the lead determinations list
  • Create and expand a determinations list for phthalates
  • Accept results from a wider group of testing labs
  • Define a low volume periodic testing rule
  • Publish a wide variety of product specific guidance
Congress and the CPSC must move forward with meaningful solutions that are funded and given priority.

Wednesday, July 24, 2013

July status update

Hello HTA members and concerned citizens, 

Your Board of Directors continues to be active supporting small batch toymakers, retailers, and importers. We recently testified before the Consumer Product Safety Commission on priorities for their fiscal year 2014 (starts October 2013) and their budget for fiscal year 2015. We focused on burden reduction through determinations. Determinations are issued for raw materials that do not require testing for lead content; for instance natural fabrics and wood. We are pushing to expand the determinations lists to more heavy metals, manufactured woods, and also phthalates. You can read our comments within the CPSC packet -https://www.cpsc.gov//Global/Newsroom/FOIA/CommissionBriefingPackages/2013/2014_2015PrioritiesHearingComments.pdf.

The CPSC is in the midst of a comment period where they are proposing changes to the certification requirements for Children's products. You can read about the changes and provide comments here - http://www.regulations.gov/#!docketDetail;D=CPSC-2013-0017. The HTA will submit comments as well.
In addition, we are working with the United States Trade Representative (USTR) as they are in negotiations with the European Union looking at barriers to free trade. We are asking for mutual recognition of toy safety standards so that it is easier for the US to import EU small batch toys and vice-versa. Here is some introductory information on this process - http://www.ustr.gov/about-us/press-office/fact-sheets/2013/february/US-EU-TTIP.

Finally, we are also preparing a document on the status of small batch manufacturers after five years of the CPSIA. The CPSIA became law in August of 2008 and that places us at the five year point now. We are soliciting your comments on this issue so we can identify where there are still problems that need to be addressed. We thank you in advance for your comments and participation.

Regards,
The Handmade Toy Alliance
Jolie Fay - President
Randall Hertzler - Vice President
Mary Newell - Treasurer
Erika Hickey - Secretary
Adam Frost
Lynn Persson
Stephanie Stewart
Monday, July 22, 2013 11:38 AM

Sunday, March 24, 2013

fan of the week, 1

We are trying a new hat on, and doing a promotion of the week.

please visit our fan, woolies!

 http://www.etsy.com/shop/woolies






  If you would like to be the fan of the  week, please visit us on our facebook page

Thursday, September 20, 2012

HTA Letter to CPSC on Reducing Testing Costs

We have been pleased to read the recently released staff document titled Consideration of Opportunities to Reduce Third Party Testing Costs Consistent with Assuring the Compliance of Children’s Products and would like to take this opportunity to comment on the recommendations. As you know, the members of the Handmade Toy Alliance have been considerably affected by the requirements of third party test and the “Small Batch” provisions of H.R.2715 provide relief for only a portion of our membership. We appreciate the efforts of the staff and commissioners to work towards additional solutions to this problem. There is still much to be done to restore businesses and reestablish the prominence of handmade toys in the United States.

Our Priorities for Staff Recommendations
Listed below are those staff recommendations we feel most directly address the burdens still borne by the members of the Handmade Toy Alliance. Our comments follow each recommendation.

(1) Establish a List of Equivalent Tests to those in CPSC-Administered Children’s Product Safety Rules 
First, accept our thanks for considering this issue and the comments from our letter of January 9th, 2012. This has been and continues to be a significant issue for us especially in relation to importing small batch1 toys from second tier manufacturers within the European Union where these toys have already undergone testing for compliance to the European Union (EU) toy safety standard EN71. Just over 25% of our members are small specialty retailers and importers who depend on access to small batch children’s products that the EU considers safe but are excluded from the market in the USA because of the economic burden of duplicate tests.

Moving forward with this staff recommendation provides substantial opportunity to: reduce duplication of effort and testing cost, clarify equivalencies and differences between standards, and to provide a vital first step towards harmonization of children’s product safety standards. We stress that harmonization is  our eventual goal in this effort, and that with careful attention to the process; harmonization can be accomplished with no compromise to safety in children's products.

There is no doubt that the primary way to restore the flow of safe small batch children’s products from Europe is to reduce and eventually remove the economic burden the CPSIA imposes on these manufacturers. The benefits are many: reopening trade between the USA and the EU, providing opportunity for specialty toy shops to compete with the mass market retailers, and restoring the enriching variety of wooden and classic toys from Europe.

(2) Research the Feasibility of Developing a List of Materials Determined Not to Contain the Eight Heavy Elements Listed in ASTM F963-11
A primary method used by members of the Handmade Toy alliance to reduce the cost of compliance is the component part rule in combination with the list of products determined not to contain lead in 16 CFR Part 1500. The new requirement of ASTM F963-11 with limits placed on concentrations of other heavy metals is an excellent opportunity to extend the positive impact of the existing determinations.

As small batch toys often use natural materials, the reduction in testing cost here is important. Effort expended by CPSC staff to make these determinations is an investment worth making. For many small batch manufacturers who use natural materials that already receive a lead exemption, this additional determination is a useful course to pursue while at the same time not compromising safety.

(3) Investigate Adding Manufactured Woods to Lead Determinations List 
The determination that wood does not contain lead is frequently used by small batch manufacturers to reduce the cost of compliance with the CPSIA regulation. “Manufactured woods” or laminated woods are frequently used in small batch children’s products when any dimension of the product increases above 10 cm (like a wooden puzzle) or if the product includes a cavity (such as a shape sorting box or dollhouse). For larger wooden components, manufactured wood is more stable and thus safer than wide pieces of solid wood, which can crack or splinter over time. We are concerned that some manufacturers will substitute solid wood for components which should otherwise be made from plywood or MDF in order to reduce testing costs.

If an investigation concludes that indeed manufactured woods do not include lead (or other heavy metals from (2) above) then toy safety is not compromised. Adding manufactured woods to the determinations list allows small batch manufacturers to resume using this material while taking advantage of the component part rule. Including manufactured woods in a lead testing exemption helps pave the way for this category of wooden toys from the EU to re-enter the USA market.

(4) Investigate CPSC Acceptance of Other Accreditation Bodies to Accredit Testing Laboratories to ISO/IEC 17025:2005 
The Handmade Toy Alliance supports any effort to increase the number of testing bodies certified to test for CPSIA compliance - especially where this expands the reach within the EU to make a third party testing laboratory more accessible when that laboratory is already testing compliance with EN71.

(5) Define a Periodic Testing Option Based on Volume of Products Manufactured Rather than Solely on a Time Period
The Handmade Toy Alliance supports an effort to set the frequency of periodic tests for low volume manufacturers based on quantities rather than time. There is reason to believe that a small batch manufacturer that performs a third party test can experience an economic savings by performing fewer tests within a fixed period of time.

Current rules which set retesting frequencies based on time rather than the number of units produced overwhelmingly favor large manufacturers at the expense of smaller manufacturers. The amount of theoretical risk which accumulates between periodic testing of an unchanging product is directly related to the number of units produced, not to the amount of time which has passed. We urge the commission to restore the rule which allows manufacturers to retest every 10,000 units.

Additional Considerations 
In addition to the recommendations submitted by the staff of the CPSC noted above, we’d like to reiterate two items we submitted in response to the request from the CPSC to comment on budget priorities for fiscal year 2014. These suggestions also help to reduce the costs of compliance for our members and do so without compromising product safety.

Product Specific Guidance 
The CPSC should publish guidance for common types of handmade toys and children’s products on how the myriad of safety laws apply to each specific product type. This helps small businesses get started and to understand the minimum amount of effort required to meet safety standards. The CPSC can work with the Handmade Toy Alliance and other small business groups to identify common products.

Specific guidance can be presented as web pages, PDFs, or handbooks as these are all searchable media. Webcasts can be created to aid the user and answer common questions. Some suggested product types are:

  • Infant and children’s clothes 
  • Doll clothing 
  • Wooden toys with no moving parts that are painted or finished 
  • Wooden toys with moving parts like wheels and axles with or without coatings 
  • Children’s jewelry 
  • Stuffed or plush toys 
  • Cloth dolls 
  • Vinyl dolls 
Component Parts Certification and Registry 
For handmade toymakers and small batch manufacturers, the most direct and cost-effective way to make sure their products are compliant is to use only raw materials and supplies that have been appropriately tested and certified to be free of lead and other toxic substances. We suggest that the CPSC work with toymakers and their suppliers to help create access to and market demand for raw materials that meet the requirements of the lead, toxics and flammability standards of the CPSIA.

Ultimately this should lead to a Component Part Registry or Seal program for raw materials that have been tested and certified not to contain lead or other toxics. The small businesses and hand-crafters that make toys can then easily find supplies and raw materials that carry the seal and are thus safe to use in their products. Suggestions for materials on such a list include:

  • Paints and finishes 
  • Fabrics 
  • Fabric accessories (snaps, fasteners, zippers) 
  • Fasteners and glues 
  • Beads and other embellishments 

Conclusion
The Handmade Toy Alliance greatly appreciates the efforts the CPSC has taken to accommodate our membership with respect to toy safety standards and third party testing. However it important to note that we are still on this journey and there continue to be opportunities where burdens can be reduced without compromising safety.

We truly support the suggestions recommended by your staff noted above as well as our additional considerations and believe these suggestions are valuable and worthwhile. Please consider their positive impact on small batch manufacturers during the briefing on September 19th, 2012.

We ask that you vote to approve the staff’s recommendations and direct staff to pursue the recommended opportunities to reduce third party testing burdens on October 3rd, 2012. Thank you for your time and consideration in this matter.

Respectfully,
Randall Hertzler
Vice President of Handmade Toy Alliance

Saturday, June 30, 2012

HTA Letter on the CPSC's Agenda and Priorities for Fiscal Year 2014

June 13th , 2012

Office of the Secretary
United States Consumer Product Safety Commission
4330 East West Highway
Bethesda, MD 20814

Thank you for the opportunity to comment on the agenda and priorities for the CPSC in fiscal year 2014. As you know, the members of the Handmade Toy Alliance have been considerably affected by recent regulations from Congress and the CPSC. We appreciate the efforts the CPSC has made to educate our members during this transition. There is still much to be done to restore businesses and reestablish the prominence of handmade toys in the United States. We hope these comments can move us all closer to that position.

Gnome Dolls from Bella Luna Toys
Product Specific Guidance
The CPSC should publish basic guidance for common types of handmade toys and children’s products on how the myriad of safety laws applies to each specific product type. This helps a small business get started and to understand the minimum amount of effort required to meet safety standards. The CPSC can work with the Handmade Toy Alliance (HTA) and other small business groups to identify common products.

Specific guidance can be presented as web pages, PDFs, or handbooks as these are all searchable media. Webcasts can be created to aide the user and answer common questions.

 Some product types are:
  • Infant and children’s clothes 
  • Doll clothing 
  • Wood toys with no moving parts that are painted or finished 
  • Wood toys with moving parts like wheels and axles with or without coatings 
  • Children’s jewelry 
  • Stuffed or plush toys 
  • Cloth dolls 
  • Vinyl dolls 
Component Parts Certification and Registry 
For handmade toymakers and small batch manufacturers, the most direct and cost-effective way to make sure their products are compliant is to use only raw materials and supplies that have been appropriately tested and certified to be free of toxics. We suggest that the CPSC work with toymakers and their suppliers to help create easy access to and market demand for raw materials that meet the requirements of the lead, toxics and flammability standards of the CPSIA.

Ultimately this should lead to a Component Part Registry for raw materials that have been tested and certified not to contain lead or other toxics. The small businesses and hand-crafters that make toys can then easily find supplies and raw materials that are safe to use in their products.

Some type of materials that would be helpful to have on this registry:
  • Paints and finishes 
  • Fabric and fabric accessories (snaps, fasteners, zippers) 
  • Fasteners and glues 
  • Beads and other embellishments 
Harmonization of Standards 
The differences in toy safety standards in the US and Europe continues to suppress the supply of small batch toys from Europe to specialty retailers in the US. In many cases the differences in regulations are small and in some cases even insignificant. But the small differences create a large economic hurdle that must be cleared by completing multiple tests that are nearly redundant.

We suggest the CPSC work to identify and resolve discrepancies in the safety standards in a manner that helps to reduce the current extended testing costs. Reducing these costs lowers the economic hurdle and allows safe small batch toys from Europe to again be sold in the US.

Conclusion
The CPSC has shown an inclination for working with small business through creation of the Small Business Ombudsman office and through invites to hearings and requests for comments like this one. The HTA greatly appreciates this relationship that has developed over the last few years and the suggestions presented here are an effort to continue and strengthen the CPSC’s connection to small business. Thank you for your time and consideration in planning your budget requests for your fiscal year 2014.

Respectfully,

The Handmade Toy Alliance