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2012 Safety Academy: Navigating the CPSC Import Process


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The Director of CPSC Import Surveillance Carol Cave and CBP's Jeremy Baskin used this presentation in a discussion about consumer product imports.

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2012 Safety Academy: Navigating the CPSC Import Process

  1. 1. U.S. Consumer Product Safety Commission-2012 Safety Academy Navigating the CPSC Import ProcessThis presentation was prepared by CPSC staff, has not been reviewed or approved by, and may not reflect the views of, the Commission.
  2. 2. 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 2
  3. 3. 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 3
  4. 4. Border Interagency Executive Council (BIEC)• Information Sharing• Partnerships• Trade Modernization – Safe Port Act – CPSIA
  5. 5. 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 5
  6. 6. Risk Assessment Methodology (RAM)Goals (Short Term)• Support Hazard Programs manually• Guide planning of system integration ITDS/RAMGoals (Long Term)• Implementation of system that supports ITDS/RAM• Implement Electronic Messaging• Automate hazard program reporting. 6
  7. 7. Entry Review Process in FY 2011 7
  8. 8. Entry Review Process with ITDS/RAM 8
  9. 9. 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
  10. 10. 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? – 10
  11. 11. 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 destruction 11
  12. 12. CPSC – Import Procedures• CPSC Sampling and Detentions  Specific statutory authority for sampling (15 USC 2066, 15 USC 1273)  Detained merchandise remains under CBP custody• CPSC Issues Notices of Detention  Compliance Investigator or Field Investigator will issue  Notice 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 12
  13. 13. CPSC – Import Procedures• Detentions – Time Frames  Detention notices to be issued as soon as possible after sampling/examination  Recipient of Notice has 5 business days to provide information to help resolve the detention; extensions can be granted  Policy is to try to resolve detentions within 30 days• Detentions of shipments under both CBP and CPSC authority  Detention notifications will be issued by both agencies  If 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 13
  14. 14. 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 14
  15. 15. CPSC – Import Procedures• Conditional Release of Merchandise  CPSC can allow conditional release of merchandise under CBP bond pending results of examination and testing  Merchandise cannot be distributed while under conditional release  Case-by-case consideration• Redelivery of Merchandise  Redelivery notice issued by CBP. Must be within 30 days after the end of the conditional release period  Redelivery could lead to seizure, destruction or exportation  Failure to redeliver results in assessment of liquidated damages against importer (bond principal) and surety 15
  16. 16. CPSC – Import Procedures• Request for a Hearing CPSA violations only Importer/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 hearing Custody of goods remains with CBP 16
  17. 17. 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 17
  18. 18. 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. 18
  19. 19. CPSC – Import Procedures• Exportation/Destruction  Importer may ask to export or destroy at any time  Per agreement, exportation or destruction at importer’s expense and must occur under Government supervision• Seizure  CPSC can request CBP to seize the product under Tariff Act authority  If seized, then CBP takes over the process  Fines, 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 19
  20. 20. 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)) 20
  21. 21. 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 21
  22. 22. QuestionsCarol Cave, Director, Office of Import Surveillance and Inspection ccave@cpsc.govJeremy Baskin, Senior Advisor to the Executive Director, Office of Regulations and Rulings, 22
  23. 23. Consumer Product Safety• CommissionMr. Dean W. Woodard U.S. CPSCDirector Office of Education, Global Outreach, and Small Business Ombudsman