REGULATED PRODUCTS HANDBOOK A GUIDE FOR MANUFACTURERS, IMPORTERS, DISTRIBUTORS, AND RETAILERS ON PROCEDURES RELATING TO THE ENFORCEMENT OF STANDARDS AND REGULATIONS ISSUED UNDER THE CONSUMER PRODUCT SAFETY ACT, THE FEDERAL HAZARDOUS SUBSTANCES ACT, THE FLAMMABLE FABRICS ACT, AND POISON PREVENTION PACKAGING ACT CPSC DOCUMENT #8001 U.S. Consumer Product Safety Commission Office of Compliance Division of Regulatory Management 4330 East West Highway Washington, DC 20207 Telephone: (301) 504-0400 February 1994 2nd Edition* This handbook contains information needed by manufacturers, distributors, importers, and retail- ers charged with violating a CPSC statute or regulation to ensure appropriate steps are taken to comply with CPSC requirements. *Pages 5 and 12 have been revised to clarify certain information. REGULATED PRODUCTS HANDBOOK TABLE OF CONTENTS INTRODUCTION CHAPTER 1 - SANCTIONS UNDER CPSC STATUTES Penalties Applicable to Firms and Individuals Injunctive Actions Seizure of Violative Products CHAPTER 2 - PRESENTING EVIDENCE THAT A PRODUCT IS NOT VIOLATIVE Responding to CPSC Notification of Violative Product Status Presenting Evidence Orally or In Writing CPSC Response to Information Submitted by Firm CHAPTER 3 - HOW A COMPANY UNDERTAKES A PRODUCT RECALL Objectives of a Recall Methods of Recall Notification CHAPTER 4 - APPLICATIONS FOR AUTHORIZATION TO RECONDITION VIOLATIVE IMPORTS Procedures for Obtaining Authorization to Recondition Costs Chargeable in Connection with Reconditioning Violative Imports CHAPTER 5 - REPORTING REQUIREMENTS Statutory Requirements Why Reporting is Required When to Report Reporting Procedures Penalties for Failure to Report CHAPTER 6 - EXPORT REQUIREMENTS Policy Statement Regarding Prohibition of Exportation Prohibition on Exportation Following an Unreasonable Risk Determination Export Notification Requirements CHAPTER 7 - CONFIDENTIAL TREATMENT OF INFORMATION SUBMITTED Confidentiality of Information Under Section 6 of the CPSA Confidentiality of Reports Under Section 15(b) of the CPSA Confidentiality of Reports Under Section 37 of the CPSA Use of Information by the Commission FIGURE 1. MODEL CUSTOMER NOTIFICATION LETTER FIGURE 2. RECALL NOTICE CHECKLIST FIGURE 3. SAMPLE RECALL POSTER FIGURE 4. POINT OF PURCHASE RECALL POSTER CHECKLIST FIGURE 5. SAMPLE NEWS RELEASE FIGURE 6. APPLICATION FOR AUTHORIZATION TO RECONDITION REGULATED PRODUCTS HANDBOOK INTRODUCTION The U.S. Consumer Product Safety Commission (CPSC) is an independent Federal regulatory agency charged with reducing unreasonable risks of injury associated with consumer products. The CPSC has jurisdiction over 15,000 types of consumer products used in the home, in schools, and in recreation. To carry out its mission, CPSC administers five statutes passed by Congress. They are: (1) the Consumer Product Safety Act (CPSA), (2) the Federal Hazardous Substances Act (FHSA), (3) the Flammable Fabrics Act (FFA), (4) the Poison Prevention Packaging Act (PPPA), and (5) the Refrigerator Safety Act (RSA). HOW CPSC ENFORCES ITS STATUTES The goal of the Commission's Compliance and Enforcement Program is to ensure that firms comply with the laws, regulations, and standards that protect consumers from hazardous products. To achieve this goal, the agency conducts three main types of compliance activities: * Informing industries of CPSC requirements for their products and educating them through seminars and information letters, as appropriate; * Maintaining surveillance over consumer products and following up on reports of products that may not be in compliance with federal standards or other potentially hazardous products; * Obtaining correction of violations and recall of hazardous products from the marketplace or consumers' hands, primarily by working cooperatively with industry, but through litigation when necessary. Specific compliance activities include the following: * Enforcing existing regulations and laws by (1) conducting both domestic surveillance through inspections of the regulated industry and import surveillance at Ports of Entry in conjunction with the U.S. Customs Service, or (2) following up on injury reports, consumer complaints, trade complaints or other indications that a firm is manufacturing or distributing a consumer product not in compliance with the law. * Identifying and obtaining the recall or correction of products which present substantial hazards. The Commission has the authority to remove hazardous products from the marketplace under section 15 of the CPSA and section 15 of the FHSA. Section 15 of the CPSA further requires manufacturers, distributors, and retailers to report potentially hazardous products to CPSC. Section 37 of the CPSA requires manufacturers to report to the Commission products which are the subject of at least three civil actions within a 24-month period that result in a judgment or final settlement in favor of the plaintiff. Once the CPSC determines a specific statute or regulation has been violated, CPSC generally will notify the responsible firm (the product manufacturer, importer, distributor, or retailer) and request that specific steps be taken to correct the violation. Notification generally is in the form of an official letter, referred to as a Letter of Advice (LOA), to the responsible firm from the director of one of the Commission's three Regional Centers. The LOA informs the firm of the specific product and violation involved, requests the firm to take specific corrective actions, and informs the firm of the sanctions available to the Commission in the event the firm does not agree to correct the violations voluntarily. In addition, if a firm disagrees with CPSC that a violation has occurred or believes the product is not subject to the Commission's laws, it may challenge the Commission's finding and present evidence to support its position. This Handbook has been developed to assist firms in understanding what steps should be taken when they are informed of a violation of CPSC statutes and regulations. The Handbook should be reviewed in conjunction with the LOA received from CPSC and the applicable statutes and regulations provided with the LOA. After reviewing the information in the Chapters which follow, please direct any questions to the appropriate CPSC Regional Center: Eastern Regional Center -- 212-466-1612 Central Regional Center -- 312-353-8260 Western Regional Center -- 415-744-2966 CHAPTER 1 - SANCTIONS UNDER CPSC STATUTES In enacting the various statutes administered by CPSC, Congress provided specific sanctions which may be imposed against firms that violate any provision of the statutes. These sanctions include both civil and criminal fines against the responsible firm and individual, up to a maximum of $1.25 million and imprisonment of the responsible individual(s) for not more than one year. In addition, firms and individuals may be enjoined from continuing to violate CPSC statutes and regulations, and violative products may be seized to prevent distribution to consumers. Following is a discussion of the penalties and other sanctions that may be imposed by CPSC for violations of its statutes. PENALTIES APPLICABLE TO FIRMS AND INDIVIDUALS When CPSC determines that a violation of its statutes has occurred, a Letter of Advice (LOA) is issued to the responsible firm and individuals. The LOA will state that a prohibited act has occurred and cite the specific statute which has been violated. The prohibited acts are contained in section 19 of the Consumer Product Safety Act (CPSA), section 4 of the Federal Hazardous Substances Act (FHSA), section 3 of the Flammable Fabrics Act (FFA), and section 403 of the Federal Food, Drug, and Cosmetics Act (FD&CA). Once you have determined which prohibited act you are being charged with, you will want to determine the maximum sanctions you and your firm may be subject to. Generally, the LOA will not contain specific details regarding penalties but will refer you to this Handbook for assistance in determining the applicable penalties. Following is a summary of the penalties available under the CPSA, FHSA, FFA, and PPPA enforced through the FHSA and FD&CA. Penalties Available Under The CPSA Civil Penalties under CPSA - Under section 20 of the CPSA, any person who knowingly violates section 19 of the CPSA shall be subject to a civil penalty not to exceed $5,000 for each such violation. With some exceptions, a violation of  19(a)(1), (2), (4), (5), (6), (7), (8), (9), (10), or (11) shall constitute a separate offense with respect to each consumer product involved, except that the maximum civil penalty shall not exceed $1.25 million for any related series of violations. Criminal Penalties under CPSA - Under section 21 of the CPSA, any person who knowingly and willfully violates section 19 of the CPSA after having received notice of noncompliance from the Commission shall be fined (as described below) or imprisoned for not more than one year, or both. The Criminal Fine Improvements Act of 1987 increased maximum criminal penalties under the CPSA to $100,000 for individuals and $200,000 for organizations unless a death occurred, in which case the maximum fine is $250,000 for individuals and $500,000 for organizations. Penalties Available Under The FHSA Civil Penalties under FHSA - The Consumer Product Safety Improvement Act of 1990, Public Law 101-608, amended section 5 of the FHSA, by adding a new section 5(c)(1) which gives the Commission the authority to seek civil penalties against any person who knowingly violates section 4 of the FHSA. The term knowingly is defined in section 5(c)(5) of the FHSA. The Commis- sion may seek a civil penalty of up to $5,000 per violative product, up to a maximum of $1.25 million for any related series of violations. Criminal Penalties under FHSA - Under section 5(a) of the FHSA, any person who violates section 4 of the FHSA shall be guilty of a misdemeanor and shall upon conviction thereof be subject to a fine (described below) or to imprisonment for not more than 90 days (one year for violations committed with intent to defraud or mislead or for second and subsequent offenses), or both. The Criminal Fine Improvements Act of 1987 increased the maximum criminal penalties provided for in section 5(a) of the FHSA to $5,000 for individuals and $10,000 for organizations for first violations; $100,000 for individuals and $200,000 for organizations for second and subsequent offenses and for offenses committed with intent to defraud or mislead; and $250,000 for individuals and $500,000 for organizations for violations if a death results. Penalties Available Under The FFA Civil Penalties under FFA - The Consumer Product Safety Improvement Act of 1990, Public Law 101-608, amended section 5 of the FFA, by adding a new section 5(e) which gives the Commission the authority to seek civil penalties against any person who knowingly violates a regulation or standard issued under section 4 of the FFA. The term knowingly is defined in section 5(e)(4) of the FFA. The Commission may seek a civil penalty of up to $5,000 per violative product, up to a maximum penalty of $1.25 million for any related series of violations. Criminal Penalties under FFA - Under section 7 of the FFA, any person who willfully violates section 3 or 8(b) of the FFA or fails to comply with section 15(c) of the FFA shall be guilty of a misdemeanor, and upon conviction thereof shall be fined as described below or imprisoned not more than one year or both. The Criminal Fine Improvements Act of 1987 increased the maximum criminal penalties provided for in section 7 of the FFA to $5,000 for individuals and $10,000 for organizations for first violations; $100,000 for individuals and $200,000 for organizations for second and subsequent offenses and for offenses committed with intent to defraud or mislead; and $250,000 for individuals and $500,000 for organizations for violations if a death results. Penalties Available Under The PPPA In enacting the PPPA, Congress chose to incorporate the penalties available under two existing statutes rather than provide separate penalties for prohibited acts involving products regulated under the PPPA. Depending on the type of product and the specific prohibited act involved, penalties provided for under the FHSA or the FD&CA may be applicable. Civil Penalties - The failure to comply with a standard under the PPPA results in the product being classified as either a misbranded hazardous substance under the FHSA or a misbranded food, drug, or cosmetic under the FD&CA, as amended. If the product involved is classified as a misbranded hazardous substance, see Civil Penalties under FHSA, above. If the product involved is a misbranded food, drug, or cosmetic, refer to Criminal Penalties, below since no civil penalties are provided for under the FD&CA. Criminal Penalties - If the product involved is a misbranded hazardous substance, see Criminal Penalties under FHSA, above. If the product involved is a misbranded food, drug, or cosmetic, criminal penalties for violations of the PPPA are spelled out in section 303(a)(1) of the FD&CA which states "Any person who violates a provision of section 301 shall be imprisoned for not more than one year or fined not more than $1000, or both. Section 303(a)(2) of the FD&CA, states "if any person commits such a violation after a conviction of him under this section has become final, or commits such a violation with the intent to defraud or mislead, such person shall be imprisoned for not more than three years or fined not more than $10,000 or both. INJUNCTIVE ACTIONS Following are the applicable provisions which authorize the Commission to seek to enjoin firms from violations of the CPSC statutes and regulations. Injunctions Under The CPSA Section 22(a) of the CPSA states: The United States district courts shall have jurisdiction to take the following action: (1) Restrain any violation of section 19. (2) Restrain any person from manufacturing for sale, offering for sale, distributing in commerce, or importing into the United States a product in violation of an order in effect under section 15(d). (3) Restrain any person from distributing in commerce a product which does not comply with a consumer product safety rule. Injunctions Under The FHSA Section 8(a) of the FHSA states: "The United States district courts and the United States courts of the territories shall have jurisdiction, for cause shown and subject to the provisions of rule 65 (a) and (b) of the Federal Rules of Civil Procedure, to restrain violations of this Act." Injunctions Under The FFA Section 6(a) of the FFA states: "Whenever the Commission has reason to believe that any person is violating or is about to violate section 3, or a rule or regulation prescribed under section 5(c), of this Act, and that it would be in the public interest to enjoin such violation until complaint under the Federal Trade Commission Act is issued and dismissed by the Commission or until an order to cease and desist made thereon by the Commission has become final within the meaning of the Federal Trade Commission Act or is set aside by the court on review, the Commission may bring suit in the district court of the United States, for the district in which such person resides or transacts business ... to enjoin such violation and upon proper showing a temporary injunction or restraining order shall be granted without bond. Injunctions Under The PPPA For violations of the PPPA which result in a product being classified a misbranded hazardous substance, see Injunctions Under The FHSA, above. For PPPA violations which result in the product being classified a misbranded food, drug, or cosmetic, the injunctive provisions of the FD&CA apply. Section 302(a) of the FD&CA states: "The district courts of the United States and the United States courts of the Territories shall have jurisdiction, for cause shown, and subject to the provisions of section 381 (relating to notice to opposite party) of title 28, to restrain violations of section 301 of this title, except paragraphs (h), (i), and (j) of said section." SEIZURE OF VIOLATIVE PRODUCTS Products which are in violation of an applicable standard or regulation are subject to seizure and condemnation proceedings under the various statutes. Seizure Under The CPSA Section 22(b) of the CPSA states "Any consumer product (1) which fails to conform with an applicable consumer product safety rule, or (2) the manufacture for sale, offering for sale, distribution in commerce or the importation into the United States of which has been prohibited by an order in effect under section 15(d), when introduced into or while in commerce or while held for sale after shipment in commerce shall be liable to be proceeded against on libel of information and condemned in any district court of the United States within the jurisdiction of which such consumer product is found." Seizure Under The FHSA Section 6(a) of the FHSA states "Any misbranded hazardous substance or banned hazardous substance when introduced into or while in interstate commerce or while held for sale (whether or not the first sale) after shipment in interstate commerce, or which may not, under the provisions of section 4(f), be introduced into interstate commerce, or which has been manufactured in violation of section 4(g), shall be liable to be proceeded against while in interstate commerce or at any time thereafter, on libel of information and condemned in any district court in the United States within the jurisdiction of which the hazardous substance is found: Provided, That this section shall not apply to a hazardous substance intended for export to any foreign country if it (1) is in a package branded in accordance with the specifications of the foreign purchaser, (2) is labeled in accordance with the laws of the foreign country, and (3) is labeled on the outside of the shipping package to show that it is intended for export, and (4) is so exported." Seizure Under The FFA Section 6(b) of the FFA states "Whenever the Commission has reason to believe that any product has been manufactured or introduced into commerce or any fabric or related material has been introduced into commerce in violation of section 3 of this Act, it may institute proceedings by process of libel for the seizure and confiscation of such product, fabric, or related material in any district court of the United States within the jurisdiction of which such product, fabric, or related material is found." Seizure Under The FD&CA (For Products Regulated Under The PPPA) Section 304(a) of the FD&CA states "Any article of food, drug, or cosmetic that is adulterated or misbranded when introduced into or while in interstate commerce or while held for sale (whether or not the first sale) after shipment in interstate commerce, or which may not, under the provisions of section 404 or 505, be introduced into interstate commerce, shall be liable to be proceeded against while in interstate commerce, or at any time thereafter, on libel of information and condemned in any district court of the United States or United States court of a Territory within the jurisdiction of which the article is found." CHAPTER 2 - PRESENTING EVIDENCE THAT A PRODUCT IS NOT VIOLATIVE This Chapter contains the procedures to be followed if a firm disagrees with the Commission staff determination that a product is in violation of a regulation or standard administered by CPSC. RESPONDING TO CPSC NOTIFICATION OF VIOLATIVE PRODUCT STATUS When the CPSC staff notifies you in a Letter of Advice (LOA) that a product you manufacture, import, or distribute fails to comply with a CPSC statute or regulation, you may disagree with the staff's determination. If so, you may want to present your views to the CPSC staff. The LOA will state that the firm may present evidence that a violation does not exist or is not covered by the applicable statute or regulation. In response to the LOA, you may submit to the Commission staff evidence and arguments that the product is not violative, not covered by a specific regulation, or should not be refused admission into the U.S. (if the violation involves an import sample). Such evidence may consist of: * results of tests indicating the product complies with the applicable regulation; * marketing data indicating the product is not intended for the population group protected by the regulation; * any other type of information. CPSC RESPONSE TO INFORMATION SUBMITTED BY FIRM Any additional evidence or arguments presented by your firm are reviewed by the appropriate CPSC staff, including appropriate technical staff. If the information you present does not, in the staff's opinion, refute the staff's claim that the product is violative or covered by a specific regulation, the Commission staff generally will notify you in writing that the information submitted is insufficient prior to proceeding with any enforcement action against your firm. CHAPTER 3 - HOW A COMPANY UNDERTAKES A PRODUCT RECALL This Chapter provides information on initiating a product recall when the CPSC staff determines that the hazard associated with a product warrants such action. OBJECTIVES OF A RECALL Once the CPSC staff determines that a product is in violation of a Commission statute or regulation, it will notify you in a Letter of Advice (LOA) that corrective action to address the violation is warranted. The LOA generally will also include specific corrective actions the CPSC staff believes are appropriate to address the violation. The LOA will request you to submit a voluntary corrective action plan detailing steps you intend to take to correct the violation. This corrective action plan, after being reviewed by the CPSC staff for adequacy, forms the basis for any action you plan to take to resolve the problem. In some instances, because of the nature of the hazard and the likelihood of serious injury associated with the noncomplying product, CPSC will request that the product be recalled from the marketplace. The objectives of a recall are: 1. To locate as quickly as possible all noncomplying products; 2. To remove noncomplying products from the distribution chain and to retrieve them from the possession of consumers; and 3. To communicate accurate and understandable information to the public about the violation, the hazard to consumers, and the corrective actions planned to address the hazard. METHODS OF RECALL NOTIFICATION Each method of notifying the public of a product recall used by a company must be agreed upon in advance by the Commission staff. It is, therefore, very important for you to provide advance copies in draft form to the CPSC Regional Office staff prior to sending notifications out to customers or consumers. Following is a discussion of some specific methods for communicating recall messages to customers and consumers: Notices To Customers (Distributors and Retailers) One common form of notifying customers (including retailers and distributors) that a recall is being undertaken is to provide direct notification to the customer in the form of a letter or similar communication. The following points should be taken into consideration when developing notification letters: * Letters or other forms of communication must be specific and concise. * A heading such as "SAFETY RECALL NOTICE" or "IMPORTANT SAFETY NOTICE" must appear in the lower left hand corner of the envelope and at the beginning of each letter. * The letter or communication must state that the recall is for safety reasons. * The nature of the product hazard, as well as the recommended action for the consumer, distributor, or retailer, must be described in the letter. * The letter must be individualized for the target audience (one letter for consumers, a different letter for distributors, yet another for retailers). A sample notification letter and return reply postcard appear in FIGURE 1, at pages 16 and 17 of this Handbook. For additional information on customer notification letters see the recall notice checklist in FIGURE 2, at page 18 of this Handbook. Point of Purchase Posters A common form of consumer notification of a recall is the display of point of purchase posters at the retail outlet which sold the recalled product to the public. Such posters are generally prepared by the recalling company and sent to the retail store along with instructions for displaying the poster in a prominent location in the store for a specific period of time. While typically CPSC will request that the posters be displayed for 120 days, a different time period may be specified, depending on the circumstances. * Posters and counter cards must be printed in colors that contrast with the background of the poster or counter card. * Posters and counter cards must be displayed so that they are readily visible and not blocked from consumers' view by other signs or products being sold. The message must also be easily understandable for consumers. * Posters and counter cards must be displayed in several conspicuous locations throughout the store. Locations include: on the shelf where the product was routinely sold, at checkout counters and customer service desks, and at the entrance and exit to the store. * Posters may fit standard store display holders. Ideally, posters should be no less than 11 by 17 inches to be clearly visible to shoppers. * Counter cards may also fit standard display holders. Ideally, cards should be no less than 8 1/2 by 11 inches. A sample point of purchase poster is shown in FIGURE 3, at page 19 of this Handbook. For additional information on preparing point of purchase recall posters, see the Recall Poster Checklist in FIGURE 4, at page 20 of this Handbook. Press Releases Unless you can identify all purchasers of a product being recalled and notify them directly, CPSC will seek to issue a press release jointly with your firm. Such releases are made available to the national wire services (AP and UPI), major metropolitan daily newspapers, television and radio networks, and periodicals on the agency's press contact mailing list. If CPSC requests that a press release be issued, the press release will be prepared by the CPSC Regional Office in conjunction with the Commission's Office of Information and Public Affairs. A draft release is sent to you for verification of content prior to being finalized and issued by the Commission. Usually, the release from the Commission generates the widest media attention and consumer response. In some cases, companies involved in a product recall may prefer to issue their own (unilateral) press release. However, this tends to complicate matters since the CPSC is also releasing the news release and it could create confusion among the public. Each product recall press release agreed to or unilaterally issued must contain the following information: * The name of the product, the manufacturer, and the specific product hazard; * The suggested retail price of the product; * A description of the product and its intended use; * The model and serial number of the product, and where consumers will find the data on the product; * Dates and time periods of product availability, distribution, and sales to assist consumers in determining if they bought the product; * Guidelines for discontinuing use of the product, if applicable; * Directions as to how consumers may obtain refund, replacement, or repair of the product; * Major national stores or chains selling the product; * A description of the defect and the date the Commission was first notified of its existence; * A name and "800" telephone number for consumers to use if they wish to contact the company with questions about the recall. A glossy, black-and-white photograph or line drawing from the company showing the product and the violative condition is also recommended. Duplicating the photograph and/or line drawing and providing it to the media with the release usually eliminates any confusion and often resolves their questions. A sample press release appears in FIGURE 5 at pages 21 and 22 of this Handbook. CONCLUSION Consumers no longer view product recalls in a negative light. Many thousands of products have been recalled over the years. Today, consumers believe they enjoy a safer, better product as a result of a recall. How well a company conducts a timely, reasonable recall of a product it produced can have a strong influence on the consumer's attitude about the firm. Successful product recalls in the past have often rewarded companies with continuing consumer support and demand for the firms' products. CHAPTER 4 - APPLICATIONS FOR AUTHORIZATION TO RECONDITION VIOLATIVE IMPORTS This Chapter provides information to firms whose products have been sampled at a Port of Entry on the procedures to be followed in requesting authorization to recondition violative products. This Chapter also includes information on costs chargeable to firms for CPSC monitoring of the reconditioning process. PROCEDURES FOR OBTAINING AUTHORIZATION TO RECONDITION When CPSC notifies you in a Letter of Advice (LOA) that a shipment of goods imported by your firm fails to comply with CPSC requirements, you may wish to recondition the goods to bring them into compliance with the applicable requirements. Prior to undertaking such reconditioning, however, you must request and obtain authorization from CPSC to do so before the goods will be released by U.S. Customs. The CPSC regulations at 16 C.F.R. section 1500.269 covering imported products subject to the Federal Hazardous Substances Act (FHSA) state that application for authorization to relabel or perform other action to bring violative goods into compliance with the FHSA may be filed only by the owner or consignee of the product. This procedure is applied to violative imported products subject to all statutes administered by the Commission. The application for authorization to recondition violative goods must be submitted in writing to the Director of the Regional Office in whose territory your firm is located. The application shall: (a) Contain detailed proposals for bringing the article into compliance with CPSC requirements. (b) Specify the time and place where such operations will be carried out and the approximate time for their completion. CPSC Form #332 see FIGURE 6 at page 23 of this Handbook) may be used to submit this information to the Commission. A copy of the form generally is provided with the LOA or may be obtained by contacting the Regional Office. If the request for authorization to recondition is granted, the CPSC staff will notify you in writing (or via CPSC Form #332 if the application was submitted using the form), that authorization has been granted. The notice from CPSC will specify: (1) the procedure to be followed; (2) who will supervise the reconditioning (normally CPSC or U.S. Customs personnel); (3) a time limit for completing the operation; (4) such other conditions as are necessary to maintain adequate supervision and control over the article. If an extension of time to complete the reconditioning is needed, you must submit a request for an extension in writing to the Director of the appropriate Regional Office. The request must contain reasonable grounds for the extension, and the Regional Office Director may grant additional time for completing the reconditioning as he or she deems necessary. Once an application has been submitted and approved, you may amend the application by filing an amended application with the Regional Office Director, stating reasonable grounds for the amendment. The Regional Office Director may approve such a request for amendment as deemed necessary. If ownership of the goods covered by the authorization to recondition changes before the goods are reconditioned, the original owner will be held responsible, unless the new owner has executed a bond and obtained new authorization. COSTS CHARGEABLE IN CONNECTION WITH RECONDITIONING VIOLATIVE IMPORTS The cost of supervising the relabeling or other action necessary to bring the goods seized or detained at a Port of Entry into compliance with CPSC requirements shall be paid by the owner or consignee of the violative goods. The Commission's regulations at 16 C.F.R. section 1500.272, provide for such costs for products seized or detained for violations of the FHSA. The Commission also is authorized to charge for monitoring the reconditioning of products detained under other statutes (see section 17(f) of the CPSA, section 6(d) of the FFA, and section 304(d)(1) of the FD&CA for PPPA violations). The guidelines provided in 16 C.F.R. section 1500.272 are used to determine costs chargeable for monitoring correction of violations under all statutes administered by he Commission. Such costs must be paid to the Consumer Product Safety Commission. The cost of such supervision shall include, but not be restricted to, the following: (a) Travel expenses of the supervising officer. (b) Per diem in lieu of subsistence of the supervising officer when away from his home station as provided by law. (c) Services of the supervising officer to be calculated at the rate of a GS-11, Step 1 employee. (d) Services of the analyst to be calculated at the rate of a GS-12, Step 1 employee (including use of chemical laboratories and equipment). (e) The minimum charge for services of supervising officers and of analysts shall be not more than the charge for one hour, and time after the first hour shall be computed in multiples of one hour, disregarding fractional parts less than one-half hour. CHAPTER 5 - REPORTING REQUIREMENTS This chapter contains information to familiarize companies with their reporting obligations under the Consumer Product Safety Act (CPSA). Companies that distribute consumer products subject to the provisions of the Federal Hazardous Substances Act (FHSA), Flammable Fabrics Act (FFA), Poison Prevention Packaging Act (PPPA), and Refrigerator Safety Act (RSA) also must comply with these reporting requirements. The information which follows will help you to recognize potentially hazardous consumer products at an early stage, and will assist you in understanding when you are legally obligated to report information about the product to the Commission. The information contained in this Handbook does not replace the Commission Statutes or Commission Interpretative Regulations set forth in 16 C.F.R. parts 1115 and 1116. For more information about reporting, see also the Commission's Statement of Enforcement Policy, 51 FR 23410 (1986) which may be obtained from the Regional Office. STATUTORY REQUIREMENTS Reporting Under Section 15 of the CPSA Section 15(b) of the CPSA defines responsibilities of manufacturers, importers, distributors and retailers of consumer products. Each is required to notify the Commission if it obtains information which reasonably supports the conclusion that a product - (1) fails to comply with a consumer product safety standard or banning regulation established by the Commission or a voluntary consumer product safety standard upon which the Commission has relied under section 9 of the CPSA; (2) contains a defect which could create a substantial product hazard described in section 15(a)(2) of the CPSA; or (3) creates an unreasonable risk of serious injury or death. The Commission's interpretative regulation (16 C.F.R. part 1115, as amended following the enactment of the Consumer Product Safety Improvement Act of 1990) explains the company's obligations and those of the Commission. A copy of the regulations is included with the LOA or will be provided by the Regional Office upon request. Reporting Products Involved in Lawsuits In addition to the amendments to section 15 of the CPSA, a new section 37 reporting requirement has been added to the CPSA. This new section requires manufacturers (including importers) of a consumer product to report to the Commission if (1) a particular model of a consumer product is the subject of at least three civil actions that have been filed in Federal or State court, (2) each suit alleges the involvement of that model in death or grievous bodily injury (as defined in section 37(e)(1)), and (3) at least three of the actions result in a final settle- ment involving the manufacturer or in a judgment for the plaintiff within any one of the two year periods specified in section 37(b). The first two year period began to run on January 1, 1991 and ends on December 31, 1992. The second two year period starts on January 1, 1993; the third, on January 1, 1995; and so forth. Manufacturers must file a report within 30 days after the settlement or judgment in the third civil action to which the section 37 reporting requirement applies. WHY REPORTING IS REQUIRED The intent of Congress in enacting section 15(b) and section 37 of the CPSA was to encourage widespread reporting of potential product hazards. Congress sought not only to have the Commission uncover substantial product hazards, but also to identify risks of injury which the Commission could attempt to prevent through its own efforts, such as information and education programs, safety labeling, and adoption of product safety standards. Although CPSC relies on sources other than company reports to identify substantial product hazards, reporting by companies under section 15 and section 37 provisions is invaluable because firms often learn of product safety problems long before the Commission does. For this reason, any company involved in the manufacture, importation, distribution or sale of consumer products should develop a system of reviewing and maintaining consumer complaints, inquiries, product liability suits and comments on the products they handle. If a firm reports to the Commission under section 15 of the CPSA, it does not necessarily mean there is a substantial product hazard. Section 15 simply requires firms to report whenever a product (1) fails to comply with a consumer product safety rule; (2) fails to comply with a voluntary standard upon which the Commission has relied; (3) contains a defect that could create a substantial product hazard; or (4) creates an unreasonable risk of serious injury or death. Thus, a product need not actually create a substantial product hazard to trigger the reporting requirement. WHEN TO REPORT It is the Commission's view that a firm should take that all important first step of notifying the Commission when the information available to the company reasonably indicates that a report is required. It is in the company's interest to assign the responsibility of reporting to someone in executive authority. The individual's knowledge of the product and the reporting requirements of section 15 and section 37 are valid reasons for assigning the responsibility. REPORTING PROCEDURES A company is considered to have knowledge of product safety information when such information is received by an employee or official of the firm who may reasonably be expected to be capable of appreciating the significance of that information. Under ordinary circumstances, five (5) days is the maximum reasonable time for that information to reach the chief executive officer or other official assigned responsibility for complying with the reporting requirements. Weekends and holidays are not counted in that timetable. The Commission will evaluate whether or when a firm should have reported. This evaluation will be based, in part, on what a reasonable person, acting under the circumstances, knows about the hazard posed by the product. Thus, a firm shall be deemed to know what it would have known if it had exercised due care ascertaining the accuracy of complaints or other representation. If the company is uncertain whether the information is reportable, the firm may elect to spend a reasonable time investigating the matter, but no evaluation should exceed ten (10) days unless the firm can demonstrate that a longer timetable for the investigation is reasonable. If a firm elects to conduct an investigation to decide whether it has reportable information, the Commission will deem that, at the end of ten (10) days, the firm has received and considered all information which would have been available to it had a reasonable, expeditious, and diligent investigation been undertaken. PENALTIES FOR FAILURE TO REPORT Failure to report in accordance with the above referenced requirement is a prohibited act under section 19(a) of the CPSA which states: It shall be unlawful for any person to - (4) fail to furnish information required by section 15(b); (11) fail to furnish information required by section 37. Any person who commits a prohibited act is subject to civil penalties under section 20 of the CPSA, including fines up to $1.25 million for a related series of violations, and criminal penalties under section 21 of the CPSA, which includes fines up to $500,000 or imprisonment not more than one year, or both. Chapter 1 of this Handbook provides additional details regarding the penalties. CHAPTER 6 - EXPORT REQUIREMENTS This Chapter provides information on the requirement to notify the Consumer Product Safety Commission prior to exporting violative products. POLICY STATEMENT REGARDING PROHIBITION OF EXPORTATION When CPSC advises a firm that a product it manufactures, distributes, or imports fails to comply with an applicable CPSC statute or regulation, one option the firm may wish to consider is whether the goods may be exported. CPSC has established specific requirements relating to the exportation of noncomplying products that prohibit or restrict such exportation. Following is a discussion of these limitations. Products Subject to the FHSA -- The Commission's regulation at 16 C.F.R. section 1010.3(b) states that the Commission interprets the provisions of the FHSA to prohibit the export of products that are misbranded hazardous substances or banned hazardous substances if those products have at any time been sold or offered for sale in domestic commerce. Therefore, export of such banned or misbranded hazardous substances can take place only if CPSC exercises its discretion not to prevent their export. Products Subject to the CPSA -- The Commission's regulation at 16 C.F.R. section 1010.3(a) states that the Commission interprets the provisions of the CPSA to prohibit the export of products that fail to comply with an applicable consumer product safety standard or banning rule issued under that Act if those products have at any time been distributed in commerce for use in the United States. Therefore, export of such products can take place only if CPSC exercises its discretion not to prevent their export. Products Subject To The FFA -- In accordance with the Commission's regulation at 16 C.F.R. section 1010.1(b)(6), the Commission's prohibition on the export of noncomplying products that have been distributed in domestic commerce does not include products subject to standards issued under the FFA. PROHIBITION ON EXPORTATION FOLLOWING AN UNREASONABLE RISK DETERMINATION In accordance with section 18(a) of the CPSA, section 5(b) of the FHSA, and section 15(a) of the FFA, the Commission may prohibit the exportation of any product regulated under these statutes if it determines that the exportation of such products presents an unreasonable risk of injury to consumers within the United States. This authority could be used to prohibit the export of products subject to the FHSA, CPSA, or FFA that have been stopped in import status and products subject to the FFA that have been in domestic commerce. In order to prevent the exportation of such products the Commission would have to make a factual determination about the existence of an unreasonable risk. Relevant factors would include the nature and degree of the risk to consumers, the economic effects on business people, the attitude of the foreign country scheduled to receive the products, and the likelihood of their being reimported into the United States if exportation were permitted. EXPORT NOTIFICATION REQUIREMENTS The Commission's regulations at 16 C.F.R. part 1019 require that, prior to exportation of products that fail to comply with the CPSA, FHSA, and FFA, a firm must notify the Commission at least 30 days in advance of the exportation date. This includes noncomplying goods stopped in import status. The following information must be provided to the Commission: 1. Name, address and telephone number of the U.S. exporter; 2. Name and address of each consignee; 3. Quantity and description of the goods to be exported to each consignee, including brand or trade names or model or other identifying numbers; 4. Identification of the standards, bans, regulations and statutory provision applicable to the goods; and, 5. Anticipated date of shipment and port of destination. The notification of intent to export should be addressed to: Assistant Executive Director for Compliance U.S. Consumer Product Safety Commission Washington, D.C. 20207 The following paragraphs reflect the requirements of the various statutes: FHSA Violations -- Export notification is a requirement of section 14(d) of the FHSA. The failure to provide such a notice is a prohibited act under section 4(i) of the FHSA, and subject to the penalties described in section 5 of the FHSA. CPSA Violations -- Export notification is a requirement of section 18(b) of the CPSA. The failure to provide such a notice is a prohibited act under section 19(a)(10), and is subject to the penalties described in sections 20 and 21 of the CPSA. FFA Violations -- Export notification is a requirement of section 15 (c) of the FFA. The failure to provide such a notice is a misdemeanor under section 7 of the FFA. CHAPTER 7 - CONFIDENTIAL TREATMENT OF INFORMATION SUBMITTED This Chapter provides information on the confidential treatment of information submitted to the CPSC in response to a Letter of Advice (LOA) or a report filed with the Commission under sections 15 and 37 of the Consumer Product Safety Act (CPSA). CONFIDENTIALITY OF INFORMATION UNDER SECTION 6 OF THE CPSA Section 6(a) of the CPSA, as amended by the Consumer Product Safety Amendments of 1981, provides protection for trade secrets or confidential information. Section 6(a) gives manufacturers an opportunity to mark information as confidential. If you believe any of the information you submit to the Commission is a trade secret, or privileged or confidential information, you must accompany the submission with a request that the information be considered exempt from disclosure or indicate that a request will be submitted within 10 working days of the submission. The failure to make a request within that time will be considered an acknowledgment that you do not wish to claim exempt status. In accordance with the Commission's regulations at 16 C.F.R. section 1015.18(c), the following information must be included with the request for exemption: (1) Specifically identify the exact portion(s) of the document claimed to be confidential; (2) State whether the information claimed to be confidential has ever been released in any manner to a person who was not an employee or in a confidential relationship with the company; (3) State whether the information so specified is commonly known within the industry or is readily ascertainable by outside persons with a minimum of time and effort; (4) State how release of the information so specified would be likely to cause substantial harm to the company's competitive position; and (5) State whether the submitter is authorized to make claims of confidentiality on behalf of the person or organization concerned. If the Commission determines that information marked as confidential may be disclosed because it is not confidential, the Commission must provide written notice that it intends to disclose this information. This notice must be provided not less than 10 working days prior to disclosure. Any person receiving such notice may bring an action in an appropriate district court to prevent disclosure of the information. In addition to the above, section 6(b) of the CPSA also provides limitations on the Commission's disclosure of any information identifying manufacturers or private labelers, and further limits the Commission's disclosure of information received under section 15(b) of the CPSA. CONFIDENTIALITY OF REPORTS UNDER SECTION 15(b) OF THE CPSA The Commission often receives requests for information provided by firms under section 15(b) of the Consumer Product Safety Act (CPSA). Section 6(b)(5) of the CPSA, prohibits the release of such information unless a remedial action has been accepted in writing, a complaint has been issued or a firm consents to the release. Firms submitting information considered to be trade secret, confidential, commercial, or financial, must mark it "confidential" in accordance with section 6(a)(3) of the CPSA. If a firm does not request confidential treatment at the time of its submission of information, or within ten days thereafter, the CPSC staff will assume that the firm does not consider the material in its submission to be a trade secret or otherwise exempt from disclosure under section 6(a) of the CPSA and the Freedom of Information Act, 5 U.S.C. 522(b)(4). CONFIDENTIALITY OF REPORTS UNDER SECTION 37 OF THE CPSA. Section 6(e) of the CPSA protects from disclosure certain information submitted to the Commission by a manufacturer pursuant to section 37 of the CPSA. See Chapter 5, page 10 of this Handbook for information on the Section 37 reporting requirement. Section 6(e)(1) provides that information furnished under sections 37(c)(1) and (c)(2)(A) may not be publicly disclosed. Section 6(e)(2) provides that any report submitted pursuant to section 37(c)(1) or (c)(2)(a) shall be immune from legal process and shall not be subject to subpoena or other discovery in any civil action in a State or Federal court or in any administrative proceeding, except in an action against such manufacturer under section 20, 21, or 22 of the CPSA for failure to furnish information required by section 37. USE OF INFORMATION BY THE COMMISSION As part of any recall or other corrective action plan undertaken by your firm, pertinent information relating to the corrective action plan will be included in a periodic public listing. This listing will include the date the corrective action plan is initiated, the name of the firm involved, the name of the product(s) involved, the geographic area of distribution of the product(s), the hazard identified by the Commission staff, the labeling of the product(s) and the type of corrective action being taken. FIGURE 1 MODEL CUSTOMER NOTIFICATION LETTER Following is a sample customer notification letter announcing a recall from distributors, retailers, and consumers of an imported children's product. This notification letter is intended to be mailed to each of the importer's distributors and retailers. HAPPY CHILDREN'S PRODUCTS COMPANY 96 PLAY STREET ANYWHERE, USA 12345 123-456-7890 SAFETY RECALL NOTICE [Addressee] Dear ____________________: According to our records, Happy Children's Products shipped to you 28,550 children's brooms on April 1, 1992. The brooms are 28 inches long. They have natural straw bristles and painted wooden handles with HAPPY BROOM, MODEL L25, stamped in gold letters on the handle. The U.S. Consumer Product Safety Commission has tested these brooms and found that they violate two federal regulations. The brooms are banned. If you sell them you will be in violation of federal law. Happy Children's Products has stopped distribution of these brooms and is recalling them from our customers and from consumers. First, the Consumer Product Safety Commission found that the plastic cap on the top of the broom's handle becomes detached during testing, and presents a choking hazard to children. Second, paint on these broom handles containing 146 times the amount of lead permitted by federal regulations designed to prevent lead poisoning, especially of children. You should immediately remove from retail shelves any remaining brooms. Please mail the enclosed postcard indicating the number of brooms you have in inventory and the number of retail stores in which the brooms were sold. Ship all brooms you have in stock to Happy Children's Products Company, 96 Play Street, Anywhere, USA. [Insert further instructions about mailing and credit arrangements; give name and telephone number of the Company personnel handling the recall.] Within two weeks Happy Children's Products will mail you two consumer recall posters for each of your retail stores where the brooms were sold advising consumers to return them for a refund. The posters should be displayed in prominent locations for 120 days. Refund customers the retail price of the broom, up to $2.50. Once you mail the brooms to Happy Children's Products at the above address and send the shipping document to show us the shipping costs, Happy Children's Products will refund the retail price of the brooms and shipping costs. [Insert further instructions.]. If you further questions, please telephone me at 123-456-7890. Sincerely, Matthew J. Sweeper Director of Recalls FIGURE 1A Following is a sample Return Reply Postcard to be included with the Recall Notification Letter to Distributors and Retailers: RETURN REPLY POSTCARD NAME: __________________________________________________ ADDRESS: __________________________________________________ __________________________________________________ TELEPHONE NO: __________________________________________________ HAPPY CHILDREN'S PRODUCTS COMPANY - HAPPY BROOM, MODEL L25 QUANTITY IN STOCK: _________________________ NUMBER OF STORES SOLD TO: _________________________ FIGURE 2 RECALL NOTICE CHECKLIST Use the following checklist to ensure that all required information is included in the recall notification letter to customers or consumers: _____ 1. Flag the envelope: "SAFETY RECALL NOTICE INSIDE!" or "IMPORTANT SAFETY NOTICE INSIDE!" _____ 2. Put the recall notice on firm's letterhead, with firm's complete address and telephone number. _____ 3. Place the heading "SAFETY RECALL NOTICE" or "IMPORTANT SAFETY NOTICE" as appropriate for the corrective action being taken at the top of the notice. _____ 4. Have recall notice signed by officer of firm. _____ 5. Address a named, responsible person. _____ 6. Identify recalled product specifically, by brand names and model numbers. _____ 7. Explain that the product does not meet U.S. Consumer Product Safety Commission standards. _____ 8. Warn that it is a violation of federal law to sell the product. _____ 9. Describe the hazard as explained in the letter from the Commission. _____ 10. Advise dealers what to do about products already sold to consumers and products returned by consumers. _____ 11. Provide for reimbursement or credit for the cost of the goods and, if recalling firm will not pick up the products, for the cost of either return shipment or destruction. _____ 12. Include either a postcard or form for return within one week for customer to give: a. number of products in inventory; b. exact address, name and telephone number of person responsible for recall at distributor or retail level. FIGURE 3 SAMPLE RECALL POSTER Following is a sample Recall Poster which may be provided to retailers for display in the store where the recalled product was sold. Poster may be printed in 11 x 17 inch for poster size or 8-1/2 x 11 inch for counter card size: (POSTER NOT AVAILABLE IN THIS FORMAT -- Call (301)504-0400 to obtain a hard copy version of the poster) FIGURE 4 POINT OF PURCHASE RECALL POSTER CHECKLIST Use the following checklist to ensure that all required information is included in the point of purchase poster or counter card: _____ 1. RECOMMENDED SIZE: Posters should be a minimum of 11 x 17 inches (folded once, becomes 8 1/2 x 11 inches and will fit in standard size mailing envelopes or boxes for quantity mailing). Counter cards should be a minimum of 8 1/2 x 11 inches. _____ 2. COLOR: Heading should be in red. Also consider using red for key information for consumer response, such as 800 numbers or, in case of severe hazard, phrases such as "WARNING, STOP USING AT ONCE, TAKE AWAY FROM CHILDREN IMMEDIATELY." Red might also be used in part of graphic to illustrate product and potential hazard. _____ 3. USE OF GRAPHIC/PHOTOGRAPH: Wherever possible, the poster should contain a graphic illustration or photograph of the product to aid consumers in identifying the product. A graphic illustration is preferable because it usually shows up better. However, photographs may be used if they provide a good, clear picture of the product. For graphics, if possible pull out key information -- location of model number, date code, or other information essential to identifying the affected product. Use arrows or some other means to highlight hazardous part or area of product. _____ 4. WORDING: A. HEADING: Use "Safety Recall Notice," or "Important Safety Notice," as appropriate for the corrective action being taken. B. FORMAT: The information included should indicate Who (recalling firm), What (the product), and Why (reason for recall) and should tell consumers what to do. Outline format is preferable to paragraphs. Use "word cluster" to keep key words together rather than sentences. Do not break up word clusters between two lines. Keep it brief! C. 800 NUMBER: If using an 800 number, highlight it somehow -- red color; large, bold print. Use a separate line for the number so that it really stands out. D. FIRM IDENTIFICATION: Manufacturer/Importer/Retailer name should also and out. It helps get the consumer's attention. E. If product is to be mailed to the manufacturer or the consumer can write to the manufacturer for information about the recall, place the firm name and address at bottom of poster. _____ 5. TIME FOR DISPLAYING POSTERS: Posters should be up for approximately 120 days in several conspicuous locations in the store (shelf where product was sold, check-out counter, service desk, at entrance or exit). Put a date on the bottom of the poster: Post until August 1, 1992." FIGURE 5 SAMPLE NEWS RELEASE Following is a sample News Release which may be issued by the recalling company in conjunction with the Consumer Product Safety Commission to notify the public of the product recall: FOR RELEASE: MONDAY, JANUARY 31, 1994 RELEASE #94-035 DILLON IMPORTING COMPANY RECALLS TOY JEWELRY PRODUCT: Toy charm necklaces and bracelet, imported by Dillon Importing Company from China. The necklaces and bracelet are plastic colored figures or plastic square pieces with "charms" attached, strung on a piece of thin elastic. The jewelry was sold in retail chains, discount stores, catalog outlets, toy stores, and other outlets in 24 states from August 1992 through July 1993. The jewelry was sold without packaging, usually hanging from a store display rod or placed in open bins or baskets. The jewelry sold for about $1.00 each. PROBLEM: When tested, CPSC found that small parts separated when the elastic band broke, presenting a potential choking hazard to young children. WHAT TO DO: Consumers are urged to take the toy jewelry away from young children immediately and return the jewelry to the place were purchased for a full refund. Consumers with questions may contact Dillon Importing Company at 1- 800-654-3696. WASHINGTON, DC -- In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Dillon Importing Company (Division of M G Novelty Co., Inc.), Oklahoma City, OK is voluntarily recalling two charm necklaces and one stretch bracelet. CPSC tested the jewelry and found that small parts separated when the elastic band broke, presenting a potential choking hazard to young children. The 18-inch plastic necklaces (#16-791 and #16-1135) consist of small figures (bear, duck, butterfly, fish, cross, child, rabbit, dog, star, clown, flower) in assorted colors separated by white beads strung on a piece of thin elastic. The necklaces were sold without packaging, usually hanging from store display rods, or placed in open bins or buckets. The 6-inch plastic stretch bracelet (#16-1133) consists of six square assorted pieces separated by two white beads with one colored charm attached to each square. The charms include a heart, cross, rabbit, and fish. The bracelet was also sold without packaging, usually hanging from store display rods or placed in open bins or buckets. Only the bracelets carries a label that reads, "MGNOV MADE IN CHINA." The toy jewelry was imported by Dillon Importing Company from China and distributed in 24 states (Ohio, California, Nevada, Oregon, Utah, New Jersey, Massachusetts, New York, Pennsylvania, Florida, Tennessee, Oklahoma, Texas, Minnesota, Illinois, Colorado, Louisiana, Wisconsin, Washington, Indiana, Iowa, North Carolina, Virginia and Maryland) through retail chains, discount stores, catalog outlets, party stores, toy stores, flea markets, fund raisers, and premium offers. Approximately 32,000 pieces of toy jewelry were distributed from August 1992 through July 1993 for approximately $1.00 each. Consumers are urged to take the toy jewelry away from young children immediately and return the jewelry to the place where purchased for a full refund. Consumers who have questions about this recall may contact Dillon Importing Company toll-free at 1-800-654-3696. Neither CPSC nor Dillon Importing Company is aware of any injuries involving these toys. This voluntary recall is being conducted to prevent the possibility of injury. CPSC is announcing this recall as part of its mission to protect the public from unreasonable risks of injury and death associated with consumer products. The Commission's objective is to reduce the estimated 28.6 million injuries and 21,700 deaths associated each year with the 15,000 different types of consumer products under CPSC's jurisdiction. #### NOTE: To report an unsafe consumer product or a product-related injury, consumers may call the U.S. Consumer Product Safety Commission's toll-free hotline at 1-800-638- 2772. A teletypewriter for the hearing impaired is available at 1-800-638-8270. FIGURE 6 SAMPLE CPSC FORM #332 APPLICATION FOR AUTHORIZATION TO RECONDITION Date: To: Director,______________________Regional Center Consumer Product Safety Commission Application is hereby made for authorization to bring the merchandise below into compliance with the applicable regulation. Product: Model/Item: Entry Number: Entry Date: Invoice Number: Invoice Date: Importer IRS Number: Port of Entry: Redelivery bond has been posted by the applicant. The merchandise will be kept apart from all other merchandise and will be available for inspection at all reasonable times. The operation, if authorized, will be carried out at and will require about ___________ days to complete. A detailed description of the method by which the merchandise will be brought into compliance is given in the space below. We agree to pay all supervisory costs in accordance with current regulations. Firm Name and Address ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Applicant's Signature ___________________________________________________________ _______________________________Do Not Write Below This Line To:_______________________________________________________ Date: ________________ Your Application has been |__| denied because __________________________________________________________ _________________________________________________ |__| approved with the following conditions _________________________________________________ Time limit within which to complete authorized operation _________________________ When the authorized operation is completed, fill in the enclosed CPSC Form #333, Importer's Certificate, and return a copy of this notice along with the signed Importer's Certificate to this office. Signature _________________________________________ Director Regional Center ________________________________________________________________ CPSC Form #332 (9/89) .