[Federal Register Volume 87, Number 112 (Friday, June 10, 2022)]
[Notices]
[Pages 35513-35520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12477]
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CONSUMER PRODUCT SAFETY COMMISSION
[Docket No. CPSC-2022-0020]
Electronic Filing of Certain Certificate of Compliance Data:
Announcement of PGA Message Set Test and Request for Participants
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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SUMMARY: The U.S. Consumer Product Safety Commission (Commission or
CPSC), in consultation with U.S. Customs and Border Protection (CBP),
announce their joint intent to conduct a second test (a Beta Pilot) to
assess the electronic filing of data from a certificate of compliance
(certificate) for regulated consumer products under CPSC's
jurisdiction. This electronic filing will be done via the Partner
Government Agency (PGA) Message Set, to the CBP-authorized Electronic
Data Interchange system known as the Automated Commercial Environment
(ACE). In this notice, CPSC seeks Beta Pilot test participants. CPSC is
also collecting comments on burden estimates for a proposed collection
of information related to the Beta Pilot test, as required by the
Paperwork Reduction Act of 1995.
DATES:
Beta Pilot Test Participation: Electronic requests to participate
in the Beta Pilot test program and the Beta Pilot test IT project may
be submitted on or before July 25, 2022. However, CPSC will consider
applications to participate until reaching the Beta Pilot test capacity
of no more than 50 participants.\1\ Additionally, CPSC will consider
applications to volunteer for a Beta Pilot test IT project until the
capacity of nine participants is filled. The Beta Pilot test will run
until terminated by announcement in the Federal Register. CPSC intends
to run the Beta Pilot test for at least 6 months. CPSC asks that each
Beta Pilot test participant electronically file CPSC PGA Message Set
certificate data, as described here, for at least 6 months.
Participants may have staggered start dates, to accommodate onboarding
all participants.
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\1\ CPSC will select fewer participants than the 100 initially
proposed by staff in the 2020 Commission-approved eFiling Plan,
available at: https://www.cpsc.gov/s3fs-public/CPSC-Plan-to-Create-an-eFiling-Program-for-Imported-Consumer-Products.pdf. Staff has
determined, based on research on user-experience testing, that fewer
participants of varying importer size are sufficient to test system
capacity and to provide information to the Commission to implement a
permanent eFiling requirement.
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Paperwork Reduction Act: Submit comments on the proposed collection
of information by August 9, 2022 using the methods described below in
the ADDRESSES section of this preamble.
ADDRESSES:
Beta Pilot Test Participation: Requests to participate in the Beta
Pilot test and technical comments on CPSC's supplemental Customs and
Trade Automated Interface Requirements (CATAIR) guideline (which will
be made available on CBP.gov) should be submitted through electronic
mail to: [email protected]. Requests to participate in the Beta
Pilot test should contain the subject heading: ``Beta Pilot:
Application to participate in PGA Message Set Test.'' If you are also
willing to volunteer to participate in the Beta Pilot test IT
development project, described here, please indicate this in the
application to participate in the Beta Pilot test. Technical comments
on
[[Page 35514]]
CPSC's supplemental CATAIR guideline should contain the subject
heading: ``Beta Pilot CATAIR Technical Comments.''
Paperwork Reduction Act: You may submit comments, identified by
Docket No. CPSC-2022-0020, by any of the following methods:
Electronic Submissions: Submit electronic comments to the Federal
eRulemaking Portal at: https://www.regulations.gov. Follow the
instructions for submitting comments. CPSC typically does not accept
comments submitted by electronic mail (email), except through https://www.regulations.gov. CPSC encourages you to submit electronic comments
by using the Federal eRulemaking Portal, as described above.
Mail/Hand Delivery/Courier Written Submissions: Submit comments by
mail/hand delivery/courier to: Division of the Secretariat, Consumer
Product Safety Commission, 4330 East West Highway, Bethesda, MD 20814;
telephone: (301) 504-7479. Alternatively, as a temporary option during
the COVID-19 pandemic, you can email such submissions to: [email protected].
Instructions: All submissions must include the agency name and
docket number for this notice. CPSC may post all comments without
change, including any personal identifiers, contact information, or
other personal information provided, to: https://www.regulations.gov.
Do not submit electronically: confidential business information, trade
secret information, or other sensitive or protected information that
you do not want to be available to the public. If you wish to submit
such information, please submit it according to the instructions for
mail/hand delivery/courier written submissions.
Docket: For access to the docket to read background documents or
comments received, go to: https://www.regulations.gov, and insert the
docket number, CPSC-2022-0020, into the ``Search'' box, and follow the
prompts. A copy of the ``Supporting Statement'' for this burden
estimate is available at: https://www.regulations.gov under Docket No.
CPSC-2022-0020, Supporting and Related Material.
FOR FURTHER INFORMATION CONTACT: Questions regarding the Beta Pilot
test, participation in the test, and the proposed collection of
information should be directed to Arthur Laciak, eFiling Program
Specialist, Office of Import Surveillance, U.S. Consumer Product Safety
Commission, (301) 504-7516, [email protected]. Questions sent by
electronic mail should contain the subject heading: ``Beta Pilot:
Question re PGA Message Set Test.'' For technical questions regarding
ACE or Automated Broker Interface (ABI) transmissions, or the PGA
message set data transmission, please contact your assigned CBP client
representative. Interested parties without an assigned client
representative should submit an email to Steven Zaccaro at:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
A. Beta Pilot Test Purpose and Goal 2
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\2\ On June 1, 2022, the Commission voted 4-0 to issue this
notice.
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Preventing products that are not in compliance with safety
requirements from reaching American homes was a primary impetus for
passage of the Consumer Product Safety Improvement Act of 2008 (CPSIA)
and remains a high priority of the CPSC. To improve the safety of
imported consumer products, Congress mandated in the CPSIA that CPSC
improve the targeting of violative imported products and enforcement of
safety requirements, including by creating a Risk Assessment
Methodology (RAM) and allowing CPSC to collect certificate data
electronically up to 24 hours before arrival of an imported product. In
furtherance of this mandate, in 2016, CPSC and CBP conducted a
successful initial PGA Message Set test (the Alpha Pilot test) \3\ to
collect certain targeting/enforcement data from a certificate that CPSC
collected and placed into CPSC's RAM system at the time of entry
filing, or entry summary filing, if both entry and entry summary were
filed together.
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\3\ https://www.cpsc.gov/s3fs-public/eFiling_Alpha_Pilot_Evaluation_Report-May_24_2017.pdf?uK.UhjHabKD5yjQ.1w06tudrnvuuWIra, published April
2017.
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The Alpha Pilot test was a 6-month joint initiative between CPSC
and CBP that assessed the infrastructure and processes necessary for
electronic filing (eFiling) of data, and successfully demonstrated the
ability of eight U.S. importers, their customs brokers, CBP, and CPSC
to work together to gather and electronically file these data at
import. The Alpha Pilot test was small, having eight volunteer importer
participants and involving several consumer products classified within
a limited set of Harmonized Tariff Schedule (HTS) codes. The purpose of
the Alpha Pilot was to test the trade's ability to use a Product
Registry and submit certificate data through ABI, CBP's ability to
collect and transfer PGA Message Set data to CPSC, and CPSC's ability
to receive the data into the RAM. Because of the limited number of
participants and eligible HTS codes, it was not feasible for CPSC to
create algorithms to detect noncompliant products, or to develop the
necessary internal enforcement procedures and processes for a permanent
program. However, the Alpha Pilot test successfully demonstrated CPSC's
ability to collect and use certificate data at the ports for
enforcement purposes.
To advance the Commission's consumer safety mission, on December
18, 2020, the Commission approved staff's recommended plan to implement
a permanent eFiling program at CPSC. In anticipation of a rulemaking to
implement a permanent eFiling requirement for regulated consumer
products, CBP and CPSC will conduct a Beta Pilot test, using
certificate data provided through a PGA Message Set. The purpose of the
Beta Pilot test is to build upon the Alpha Pilot test, develop and test
the IT infrastructure necessary to support a full-scale eFiling
requirement, inform CPSC's potential rulemaking, and develop internal
procedures to support enforcement. The Beta Pilot test also will
advance the concept of a ``single window'' to facilitate electronic
collection, processing, sharing, and reviewing of trade data and
documents required by CPSC during the cargo import process, and will
assist CPSC to target imports more accurately to facilitate the flow of
legitimate trade and enhance targeting of noncompliant trade.
The Beta Pilot test also will assess CPSC and importer capabilities
for electronically filing certificate data elements via the PGA Message
Set and incorporating the data elements into CPSC's RAM to risk score
and interdict noncompliant products. The Beta Pilot test will include
more participants than the Alpha Pilot test (up to 50), add two
additional data elements, and involve more varied consumer products
under CPSC's jurisdiction, products classified under approximately 300
HTS codes.\4\ Compared with the Alpha Pilot test, the Beta Pilot test
will increase the number of test participants and entry lines,
[[Page 35515]]
allowing CPSC to develop, test, and implement processes and procedures
for an eFiling requirement for all imported, regulated consumer
products. CPSC plans to use the results from the Beta Pilot test to
scale up IT systems to accept data for regulated consumer products;
refine the required infrastructure for the real-time collection and use
of data; develop internal and external procedures to supply, use, and
maintain certificate data; and inform rulemaking that will require and
make permanent eFiling certificate data.
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\4\ The products classified under the approximately 300 HTS
codes that participants should expect to be tested in the Beta
Pilot, include, but are not limited to: ATVs; durable infant or
toddler products, such as baby carriages, cribs, and safety gates;
children's furniture, backpacks, and school supplies; bicycle
helmets; bicycles and other electric-powered cycles; clothing
(sleepwear, outerwear, infant articles, potentially flammable adult
clothing articles); drywall; fireworks; children's jewelry;
lighters; liquid nicotine; mattresses; pacifiers and rattles; rugs;
and toys. CPSC intends to flag the approximately 300 HTS codes that
may require filing certificate data during the Beta Pilot test.
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Accordingly, CPSC anticipates that Beta Pilot test participants
will help to develop, inform, and shape the permanent eFiling
requirement for certificate data. CPSC seeks up to 50 importers of
consumer products to participate in the Beta Pilot test, and a subset
of up to nine Beta Pilot test participants to advise CPSC during the
technology development (IT) phase of the project (Beta Pilot test IT
volunteers), before the Beta Pilot test begins.
B. Background: CPSC's eFiling Initiative
CPSC's eFiling initiative began in or around 2013, when the
Commission issued a notice of proposed rulemaking (NPR) to update
certificate requirements in 16 CFR part 1110 and to implement
electronic filing of certificates under section 14(g)(4) of the CPSA.
78 FR 28080 (May 14, 2013). The NPR proposed that importers of
regulated consumer products be required to file certificates
electronically with CBP at the time of entry filing, or at the time of
entry summary filing, if both entry and entry summary are filed
together. 78 FR at 28089, 28108. The Commission explained in the
preamble to the 2013 NPR that the proposal would require data from a
certificate to be filed electronically with CBP, and then transferred
to CPSC's systems, to assist CPSC in enforcing the certificate
requirement, and for use in targeting to identify potentially violative
consumer products.
Since the 2013 NPR, CPSC staff engaged public and industry
stakeholders regarding eFiling, including participating in work groups
and meetings, developing and conducting an eFiling Alpha Pilot test,
and completing a certificate study.\5\ CPSC's eFiling initiatives, to
date, suggest strong grounds for establishing a permanent eFiling
program at CPSC. More than 12 years after the Commission first required
certificates at import in 2009, staff continues to see a significant
number of certificate violations with imported products. Data show that
the lack of a timely certificate is a strong predictor of substantive
violations in imported consumer products. Moreover, specific data on a
certificate are associated with noncompliance.
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\5\ Since 2014, CPSC staff has engaged the public on CPSC's
eFiling initiative many times, including: a public workshop on
electronic filing of certificates, as included in proposed rule on
Certificates of Compliance--September 18, 2014; webinars and
meetings with CBP's Commercial Customs Operations Advisory Committee
(COAC) Working Group--March 12, 2015, March 26, 2015, April 9, 2015,
and May 13, 2015; Chairman Kaye Meeting with Members of the COAC
1USG Subcommittee-CPSC Working Group--April 28, 2015; webinar with
the Border Interagency Executive Council (BIEC)--September 16, 2015;
working meetings with the Trade Support Network (TSN)--September 16,
2015 and September 23, 2016; webinars to demonstrate the eFiling
Product Registry--October 1, 2015 and February 25, 2016; kickoff
meeting with eFiling Alpha Pilot participants--November 18, 2015;
adult wearing apparel webinar on Enforcement Discretion Regarding
GCCs for Adult Wearing Apparel Exempt from Testing with eFiling
Alpha Pilot Participants--April 13, 2016; broker feedback meeting on
eFiling with Bureau Veritas--August 4, 2016; public meeting for
review and feedback on the eFiling Alpha Pilot with participants--
January 26, 2017.
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After the Alpha Pilot test, in 2017 and 2018, CPSC staff also
completed a Certificate of Compliance Study \6\ to assess the
correlation between the timing and availability of a certificate, as
well as the specific data on a certificate, with finished product
compliance. Staff found that a shipment was five times more likely to
have a violation if a certificate was never provided to CPSC, and three
times more likely to have a violation if a certificate was provided,
but not within 24 hours of CPSC's request. The Certificate Study also
identified which certificate data elements are most valuable for import
targeting.
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\6\ https://www.cpsc.gov/s3fs-public/eFiling-Certificate-Study-Evaluation-Report-FINAL.pdf?dP0Vwp55DJO.iSQIBsPqTg07umCLIcKr,
published August 2018.
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Building on the Alpha Pilot test and the Certificate Study, a Beta
Pilot test will enable CPSC to develop RAM algorithms to triage the
enormous amount of import data received from CBP to detect more
effectively noncompliant consumer products arriving at ports of entry.
The ability to use data and improved technology to detect noncompliant
products is vital to focus CPSC's limited resources on effectively
protecting consumers from noncompliant and hazardous consumer products.
To that end, on September 23, 2020, CPSC staff submitted a briefing
package titled, CPSC Plan to Create an eFiling Program for Imported
Consumer Products (2020 eFiling Plan),\7\ for Commission consideration.
Staff explained that currently, import staff requests certificates once
a shipment has already been stopped for physical examination; and thus,
staff cannot use the lack of a certificate, or certificate data, for
targeting stops. Based on 12 years of experience enforcing certificate
requirements, testing, and study, CPSC staff concluded that an eFiling
program is critical to the agency's ability to intercept noncompliant
imported consumer products. Staff concluded that electronically
collecting certificate data at the time of import can enhance
identification of high-risk products, improve risk assessment, and
facilitate legitimate trade.
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\7\ https://cpsc.gov/s3fs-public/CPSC-Plan-to-Create-an-eFiling-Program-for-Imported-Consumer-Products.pdf?BYXOLX2gJmF4NaAN1LCMmqiXRISuaRkr=, published December
2020.
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Staff's 2020 eFiling Plan recommended a multiyear, four-phased
approach: (1) create and fund an eFiling program, (2) conduct an
eFiling Beta Pilot test, (3) initiate rulemaking, and (4) dedicate
ongoing resources. As described in section I.A, the Alpha Pilot test
successfully demonstrated CPSC's ability to collect data for targeting
into the RAM at the time of entry but involved only eight participants
and limited HTS codes. The small Alpha Pilot test did not assess a
full-scale system capacity, develop and test algorithms to detect
noncompliant consumer products, or develop internal enforcement
procedures. Accordingly, staff's plan proposed a Beta Pilot test before
the permanent rollout of an eFiling program. The Beta Pilot test would
include approximately 300 HTS codes prioritized for import, all
certificate fields with potential risk-targeting value, and the option
for importers to use a Product Registry (as provided in the Alpha Pilot
test). The Beta Pilot test would test eFiling on a larger scale, to
allow CPSC staff to assess and develop IT infrastructure, refine
importer data entry content and methods, develop and optimize RAM
algorithms, and develop CPSC internal processes and procedures for use
in enforcement programs.
On December 18, 2020, the Commission voted 4-0 to implement staff's
recommended eFiling program as set forth in the 2020 eFiling Plan.
Thus, the Commission approved the Beta Pilot test described in this
notice, as well as staff's rulemaking efforts to make the eFiling
program permanent.
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C. The Automated Commercial Environment
CPSC will conduct the Beta Pilot test in coordination with CBP,
using CBP's Automated Commercial Environment (ACE) system. ACE is CBP's
automated electronic system through which it collects importation and
entry data, streamlining business processes and ensuring cargo security
and compliance with U.S. laws and regulations. CBP has developed ACE as
the ``single window'' for the trade community to comply with the
International Trade Data System (ITDS) requirement established by the
SAFE Port Act of 2006. For trade filers to submit data to ACE, it
requires the use of an electronic data interchange system (EDI). One
such system is the Automated Broker Interface (ABI) is a software
interface to ACE. Commercial trade participants, or their licensed
customs brokers acting on their behalf, can file entries in ACE using
ABI to electronically file required import data with CBP. ABI transfers
trade-submitted data into ACE. A PGA Message Set allows the trade to
enter agency-specific data in one location, through ABI, and for PGAs
to receive this additional trade-related data along with entry data.
II. Beta Pilot Test: Certificate Data
Like the Alpha Pilot test, the Beta Pilot test will allow two
different methods of filing certificate data using the PGA Message Set:
(1) filing a minimum of seven data elements (Full PGA Message Set), or
(2) filing only a reference to certificate data stored in a Product
Registry maintained by CPSC (Reference PGA Message Set). Participants
will submit certificate data for regulated finished products, either as
the Full PGA Message Set or the Reference PGA Message Set, in ACE at
the time of entry filing or entry summary filing if both entry and
entry summary are filed together. CBP will then make available to CPSC
the PGA Message Set data and its corresponding entry data, for CPSC's
validation, risk assessment, and admissibility determinations at entry,
thereby facilitating compliant trade as well as sharpening CPSC focus
on noncompliant trade. CPSC will use the data to review consumer
product entry requirements and allow for earlier risk-based
admissibility decisions by CPSC staff. Additionally, because it is
electronic, the PGA Message Set may eliminate the necessity for
submission and subsequent handling of paper documents. Piloting
electronic filing to transition away from paper-based filing is a
priority initiative of the PGAs to meet the stated ``single window''
implementation timeline.
A. PGA Message Set
To file data electronically with CBP, participants will file
information required for eligible consumer products in CBP's ACE
system. The proposed PGA Message Set test will evaluate, at the
minimum, the electronic filing of CPSC's seven certificate data
elements listed below for regulated consumer products:
1. Identification of the finished product (may use reference to
GTIN \8\ data for this element);
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\8\ GTIN stands for Global Trade Item Number and is managed by
Global Standards 1 (GS1).
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2. Each consumer product safety rule to which the finished product
has been certified;
3. Date when the finished product was manufactured;
4. Place where the finished product was manufactured, produced, or
assembled, including the identity and address of the manufacturing
party;
5. Date when the finished product was most recently tested for
compliance with the consumer product safety rule cited above;
6. Parties on whose testing a certificate depends (meaning the name
and contact information for the entity that conducted the testing); and
7. A check box indicating that a required certificate currently
exists for the finished product, as required by Sections 14 and 17 of
the CPSA.
These seven data elements from a certificate include all of the
data elements tested in the Alpha Pilot, as well as two additional date
fields, manufacture date and test date, which were not tested in the
Alpha Pilot. Staff considers all seven data elements useful to improve
the targeting of potentially violative products. Both individually and
considered together, these data elements allow CPSC staff to create a
unique set of rules in the RAM that can increase or decrease risk
scores. Including, at the minimum, all seven data elements creates the
most robust measures by which staff can interdict noncompliant products
and also identify the lowest-risk importers and compliant products.\9\
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\9\ Two data elements required on a certificate that were not
included in the Alpha Pilot test, the certifier and contact
information, are also not included in the Beta Pilot test. These
fields are duplicative because the certifier will always be the
importer, and the name of the importer and the importer's (or
broker's) contact information are already received from CBP on an
entry form. Similarly, the Beta Pilot test will not include the
place where a product is tested, because this information is already
included in the name and contact information for a laboratory,
information that is required in field 6.
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CPSC is drafting a supplemental CATAIR guideline on filing
certificate data through the PGA Message Set that describes the
technical specifications for filing during the Beta Pilot test, as well
as the Product Registry and Reference PGA Message Set (described in
section II.B below). The supplemental CATAIR guideline will be made
available before the initiation of the Beta Pilot test and will be
posted on http://www.cbp.gov/trade/ace/catair. Technical comments on
CPSC's supplemental CATAIR guideline should be submitted in accordance
with the instructions in the ADDRESSES section at the beginning of this
notice.
B. CPSC Product Registry and Reference PGA Message Set
The Product Registry concept arose out of discussions at CPSC
staff's 2014 eFiling workshop and CPSC successfully tested this concept
during the 2016 Alpha Pilot test. Other agencies have existing
databases that can be referenced during the CBP entry process without
having to re-enter repeatedly large amounts of data into ACE. Importers
expressed concern about added costs and time to enter data for each
regulated finished product with their entry, and the need for accurate
data entry. Customs brokers also expressed concern about lack of access
to the required data elements. For example, express carriers were
concerned about meeting entry requirements during off-hour times when
business personnel were unavailable for consultation. Stakeholders
expressed concern that any requirement to re-enter large amounts of
data, or lack of access to the required data, may slow the import
process.
After considering stakeholder comments and concerns, CPSC included
a Product Registry as one of two filing options in the Alpha Pilot test
to inform the Commission whether this concept alleviates some of the
concerns expressed at the 2014 eFiling workshop. CPSC received positive
feedback during the Alpha Pilot test regarding the Product Registry
reducing burden for participants. Instead of filing a Full PGA Message
Set for certificate data in ACE with entry each time a product was
imported, participants can pre-file information into a Product
Registry, maintained by CPSC, before filing an entry with CBP and
reference this certificate data each time the product was imported
thereafter, reducing data entry time and potential errors. Similarly,
Beta Pilot test participants will be able to use the Product Registry
to enter certificate data and to manage
[[Page 35517]]
those data, and importers with established databases or processes can
provide information for many products electronically in a batch upload
into the Product Registry.
Once certificate data are filed in the Product Registry, filers
will only need to provide a reference, or identifier, to the data using
the PGA Message Set during the entry process, rather than entering all
data multiple times for repeated importations of the same product.
Participants who choose to use the Product Registry will need to
provide their broker only with an identifier, and they will not need to
provide all data elements for each product being imported. Based on the
Alpha Pilot test experience, using the Product Registry should minimize
data entry; reduce costs and filing time; and allow firms to manage,
update, and re-use certificate data in the registry. The additional
testing of the Product Registry should allow importers and CPSC to test
the capacity of the Product Registry on a larger scale, including the
ability to batch upload larger amounts of product data, a feature not
tested in the Alpha Pilot test, as well as the entry and maintenance of
two date fields. As in the Alpha Pilot test, use of the Product
Registry in the Beta Pilot test will be voluntary.
III. Beta Pilot Test Participant Eligibility, Selection Criteria, and
Responsibilities
This document announces CPSC's plan, in consultation with CBP, to
conduct a Beta Pilot test for the electronic filing of certificate data
with CBP for regulated consumer products within CPSC's jurisdiction
that are imported into the United States. Beta Pilot test participants
will work with CPSC and CBP to refine electronic filing of data through
the PGA Message Set, by filing all data elements in the PGA Message
Set, or by using the Product Registry, and filing a reference to
certificate data through PGA Message Set. CBP and CPSC are seeking
small, medium, and large U.S-based importers with an assortment of
products under CPSC jurisdiction to participate in the Beta Pilot test.
To be eligible to apply as a test participant, the applicant must:
Import regulated consumer products within the Commission's
jurisdiction;
File consumption entries and entry summaries in ACE, or
have a broker who files in ACE;
Use a software program that has completed ACE
certification testing for the PGA Message Set;
Be willing to participate in the Trade Support Network
(TSN);
Provide oral and written feedback on all aspects of the
Beta Pilot test as requested by CPSC, including information on costs to
build to the requirements and time necessary to file certificate data;
and
Work with CPSC and CBP to test electronic filing of data
using ABI to file through the Message Set, or references to certificate
data in the Product Registry.
Because the feedback on the Beta Pilot test will be used to inform
a rulemaking related to eFiling certificate data, participant feedback
will be publicly available.
CPSC, in consultation with CBP, will select approximately 30-50
participants based on the eligibility requirements, application date,
the number and type of consumer products imported, how applicants would
file certificate data (Full PGA Message Set or Reference PGA Message
Set), and the goal of having a diverse cross section of the trade
community participate. The number and selection of participants will be
at the discretion of CPSC and CBP, to meet the information requirements
of the Beta Pilot test. Additionally, CPSC and CBP seek a subset of
Beta Pilot test participants, not to exceed nine, to advise CPSC and
CBP earlier in the project, during the IT development portion of the
Beta Pilot test.
CPSC anticipates that the benefits of participation in the Beta
Pilot test may include, but will not necessarily be limited to:
Opportunity to work directly with CBP and CPSC in the pre-
implementation stage of the requirement to file certificate data;
Ability to provide feedback and experience that will
inform the ultimate e-Filing requirements; and
Ability to trouble-shoot systems and procedures.
IV. Application Process
Any party seeking to participate in the test should email their
company name, contact information, importer of record number(s), filer
code, and an explanation of how they satisfy the requirements for
participation to the address listed at the beginning of this notice on
or before July 25, 2022. However, CPSC will consider applications to
participate until reaching the Beta Pilot test capacity of 50
participants. Applicants interested in advising CPSC and CBP during the
IT development portion of the Beta Pilot test should specify their
interest in the email. Applicants may be contacted directly for
additional information in connection with the selection process.
Selected Beta Pilot test participants will be notified by email.
Selected Beta Pilot test participants may have different starting
dates. A firm providing incomplete information, or otherwise not
meeting the participation requirements, will be notified by email and
given the opportunity to resubmit the application. Applicants who are
not selected also will be notified by email.
V. Test Duration
Upon selection into the Beta Pilot test, test participants will be
expected to begin work promptly, when requested, to assist CBP and CPSC
to define and refine requirements. The eFiling portion of the Beta
Pilot test is expected to begin in October 2023, but participants will
begin planning for participation, including data requirement
discussions with CPSC and IT development, much earlier, in fall 2022.
When the test begins, Beta Pilot test participants will spend the first
several weeks of the Pilot onboarding. Once onboarding is complete for
all test participants, the Beta Pilot test is expected to run for at
least 6 months, and will run until terminated by announcement in the
Federal Register.\10\ Participants advising CPSC and CBP during the IT
development will have the opportunity to onboard and test filing via
the Full PGA Message Set and the Product Registry and Reference PGA
Message Set before October 2023.
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\10\ The duration of the Beta Pilot test could be shorter than
the 1 year approved in the 2020 eFiling Plan. Staff determined that
a duration of 6 months may be sufficient to complete anticipated
test metrics. Accordingly, the Beta Pilot test will run for at least
6 months until the test is completed via a Federal Register notice
of termination.
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VI. Legal Authority
A. ITDS Goals and CBP's Authority To Conduct National Customs
Automation Program Tests
The ITDS is an electronic data interchange system whose goals
include eliminating redundant information requirements, efficiently
regulating the flow of commerce, and effectively enforcing laws and
regulations relating to international trade by establishing a single
portal system, operated by CBP, for the collection and distribution of
standard electronic import and export data required by participating
federal agencies. All federal agencies that require documentation for
clearance or licensing the importation of cargo are required to
participate in the ITDS. The Customs Modernization provisions in the
North American Free Trade Agreement Implementation Act provide
[[Page 35518]]
the Commissioner of CBP with authority to conduct limited test programs
or procedures designed to evaluate planned components of the National
Customs Automation Program (NCAP), which includes ACE. The Beta Pilot
PGA Message Set test described in this notice is in furtherance of the
ITDS and NCAP goals.
B. CPSC and CBP Authority To Regulate the Importation of Consumer
Products
Certificates are required to accompany shipments of regulated
consumer products. Section 14(a) of the Consumer Product Safety Act
(CPSA), as amended by section 102(b) of the Consumer Product Safety
Improvement Act of 2008 (CPSIA), Public Law 110-314, requires
manufacturers (including importers) and private labelers of certain
regulated consumer products manufactured outside the United States to
test and issue a certificate of compliance (certificate) certifying
such products as compliant with applicable laws and regulations before
importation.\11\ 15 U.S.C. 2063(a). Although section 14(g)(4) of the
CPSA authorizes the Commission, in consultation with CBP, to require,
by rule, electronic filing of certificates up to 24 hours before
arrival of an imported consumer product, the Commission has not yet
implemented this authority. To implement section 14(g)(4) of the CPSA,
CPSC will conduct the Beta Pilot test and begin rulemaking to make
permanent electronic filing of certificates at the time of entry
filing, or at the time of entry summary filing, if both entry and entry
summary are filed together.
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\11\ On November 18, 2008, pursuant to section 14(a) of the
CPSA, the Commission promulgated a final rule on ``certificates of
compliance'' (73 FR 68328), which is codified at 16 CFR part 1110
(part 1110). The rule restates the statutory certificate
requirements, limits the parties who must issue a certificate to the
importer, for products manufactured outside the United States, and,
in the case of domestically manufactured products, to the
manufacturer, and allows certificates to be in hard copy or
electronic form.
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In addition to its section 14 authority, the Commission has
admissibility authority for imported consumer products and substances
that are within the CPSC's jurisdiction under section 17 of the CPSA
(15 U.S.C. 2066) and section 14 of the Federal Hazardous Substances Act
(FHSA) (15 U.S.C. 1273). Unless the Commission allows a product to be
reconditioned for importation, section 17(a) of the CPSA requires
refusal of admission and destruction of any product offered for import
that, among other things, is not accompanied by a certificate required
under section 14 of the CPSA, or is a product which is in violation of
the inspection and recordkeeping requirements of section 16.
CPSC's authority to regulate the importation of consumer products
is further derived from section 17(h)(1), which requires the Commission
to ``establish and maintain a permanent product surveillance program,
in cooperation with other appropriate Federal agencies, for the purpose
of carrying out the Commission's responsibilities under this Act and
the other Acts administered by the Commission and preventing the entry
of unsafe consumer products into the commerce of the United States.''
15 U.S.C. 2066(h)(1). Also, under section 222 of the CPSIA, the CPSC is
required to develop a risk assessment methodology (RAM) for the
identification of shipments of consumer products that are intended for
import into the United States and are likely to violate consumer
product safety statutes and regulations. An eFiling requirement to
enhance targeting of noncompliant consumer products is consistent with
the federal government's movement to the ``single window.''
Building on these authorities, CPSC works with CBP to review and
inspect cargo and to clear compliant consumer products for importation
into the United States. CPSC also works with CBP to enforce CPSC
regulations and to destroy products that violate the law and cannot be
reconditioned for importation. 15 U.S.C. 2066. CBP has the authority to
seize and destroy products offered for importation under the Tariff
Act, codified at 19 U.S.C. 1595a(c)(2)(A), where the importation or
entry of such products is subject to any restriction or prohibition
which is imposed by law relating to health, safety, or conservation and
such products are not in compliance with the applicable rule,
regulation, or statute. An admissibility determination may be deferred
to allow an importer to recondition products for entry. 15 U.S.C.
2066(c). CPSC and CBP have authority to supervise the reconditioning of
products for entry that are still under CBP's bond. 15 U.S.C. 2066(d).
If these products cannot be reconditioned, they must be refused
admission and destroyed, unless the Secretary of the Treasury permits
export in lieu of destruction. 15 U.S.C. 2066(d) & (e).
Finally, the Commission has authority to implement requirements in
the CPSIA and any amendments to the CPSA made by the CPSIA, including
certificate requirements and implementing a RAM system, pursuant to
section 3 of the CPSIA, which provides: ``[t]he Commission may issue
regulations, as necessary, to implement this Act and the amendments
made by this Act.'' Taken together, these authorities give CPSC a broad
ability to monitor all consumer products within its jurisdiction at the
ports, and to issue implementing regulations in furtherance of the
agency's mission to protect consumers from unreasonably dangerous
consumer products. Insights gained through this Best Pilot test will
inform the infrastructure, processes, procedures, and rulemaking to
implement a permanent eFiling program at CPSC.
VII. Paperwork Reduction Act
The Beta Pilot test contains information collection requirements
that are subject to public comment and review by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3521). In this document, pursuant to 44 U.S.C.
3507(a)(1)(D), we set forth:
[ssquf] a title for the collection of information;
[ssquf] a summary of the collection of information;
[ssquf] a brief description of the need for the information and the
proposed use of the information;
[ssquf] a description of the likely respondents and proposed
frequency of response to the collection of information;
[ssquf] an estimate of the burden that shall result from the
collection of information; and
[ssquf] notice that comments may be submitted to the OMB.
Title: Beta Pilot Test for eFiling Certificates of Compliance.
Description: During the Beta Pilot test of CBP's PGA Message Set
abilities through ACE, up to 50 participating importers of regulated
consumer products will electronically file the requested certificate
data, comprised of 7 data elements, at the time of entry filing, or
entry summary filing, if both entry and entry summary are filed
together. Participants will have two ways to file certificate data
during the Beta Pilot test: (1) filing certificate data in a CPSC-
maintained Product Registry, and filing a reference number in ACE to
this data set, through ABI, each time the product is imported
thereafter (Reference PGA Message Set), or (2) filing all certificate
data elements directly through ABI each time the product is imported
(Full PGA Message Set). CPSC will receive the information from CBP
through a real-time transfer of import data, and risk score the
information in CPSC's Risk Assessment Methodology (RAM) system, to
assist in
[[Page 35519]]
the interdiction of noncompliant consumer products.
As set forth in section VI.B of this preamble, the requirement to
create and maintain certificates, including the data elements, is set
forth in section 14 of the Consumer Product Safety Act (CPSA). Section
14(a) of the CPSA requires manufacturers (including importers) and
private labelers of certain regulated consumer products manufactured
outside the United States to test and issue a certificate certifying
such products as compliant with applicable laws and regulations before
importation. 15 U.S.C. 2063(a). Section 14(g)(1) of the CPSA describes
the data required on a certificate. Section 14(g)(3) requires a
certificate to accompany the applicable product or shipment of products
covered by the certificate, and that certifiers furnish the certificate
to each distributor or retailer of the product. Upon request,
certificates must also be furnished to CPSC and CBP. Section 14(g)(4)
provides that ``[i]n consultation with the Commissioner of Customs, the
Commission may, by rule, provide for the electronic filing of
certificates under this section up to 24 hours before arrival of an
imported product.'' The Beta Pilot test described in this collection of
information is in preparation for a rulemaking to implement section
14(g)(4) of the CPSA. 15 U.S.C. 2063(g)(4).
Because certificates are required by statute, this analysis focuses
on the burden for CPSC to accept, and importers to provide, certificate
data elements electronically at the time of entry filing, and not to
collect and maintain certificate data more generally. Importer
requirements in the Beta Pilot test for providing certificate data
electronically at the time of entry filing fall within the definition
of ``collection of information,'' as defined in 44 U.S.C. 3502(3).
Description of Respondents: Up to 50 importer participants who
import regulated consumer products within CPSC's jurisdiction under the
approximately 300 HTS codes included in the Beta Pilot test.
Estimated Burden: We estimate the burden of this collection of
information as follows:
CPSC used information provided by Alpha Pilot test participants to
inform the estimated burden for the Beta Pilot test. The burden from
participating in the eFiling Beta Pilot test can be broken down into
the burden of preparing for participation in the Pilot, the burden of
maintaining the data elements separately, and, as compared to the Alpha
Pilot test, the additional burden of including the dates of
manufacturing and lab testing. Based on feedback from the Alpha Pilot
test participants, we also assume that if we have 50 Beta Pilot test
participants, many more participants (90%), approximately 45
respondents, will opt to exclusively use the Product Registry and
Reference PGA Message Set, while 5 participants will opt to exclusively
use the Full PGA Message Set.
For the 45 participants opting to exclusively use the Product
Registry, we estimate that there will be approximately 8,764 burden
hours to complete the information collection burden associated with
Beta Pilot test participation, and maintain the data elements,
including the dates of manufacturing and lab testing. Based on feedback
from Alpha Pilot test participants, participant staff costs for this
burden will be about $383,000 or approximately $44 per hour ($382,990/
8,764).
Table 1--Beta Pilot Test Burden Estimates Product Registry and Reference PGA Message Set
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average
Number of Number of Number of burden per Total annual Average cost Total annual
Type of respondent respondents responses per responses response (in burden (in per response respondent
respondent hours) hours) cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Product registry only (A) (B) C (= A x B) (D) E (= C x D) (F) G (= C x F)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pilot Participation.................... 45 1 45 91 4,095 $4,929 $221,805
Gathering and Submitting Data Elements. 45 1 45 27 1,195 946 42,579
Survey................................. 45 1 45 2.2 99 34.68 1,561
Filing Entry-Line...................... 45 25,000 1,125,000 0.003 3,375 0.10 117,045
----------------------------------------------------------------------------------------------------------------
Total.............................. .............. .............. 1,125,135 .............. 8,764 .............. 382,990
--------------------------------------------------------------------------------------------------------------------------------------------------------
Assumptions:
Appx. 10% of the 50 respondents will elect to use only the Full PGA message set.
Estimated response costs based on costs information from Alpha Pilot test participants.
Wage data for survey and filing entry-line data comes from U.S. Bureau of Labor Statistics, ``Employer Costs for Employee Compensation,'' September
2021, Table 4, total compensation for all sales and office workers in goods-producing private industries: http://www.bls.gov/ncs/).
For the 5 participants opting to use the Full PGA Message Set, we
estimate 452 hours to complete the pilot and maintain the data
elements, including the dates of manufacture and lab testing per
product. The estimated associated participant staff costs will be about
$21,800, or approximately $48 per hour ($21,774/452 hours).
Table 2--Beta Pilot Test Burden Estimates
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average
Number of Number of Number of burden per Total annual Average cost Total annual
Type of respondent respondents responses per responses response (in burden (in per response respondent
respondent hours) hours) cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Full PGA Message Set (A) (B) C (= A x B) (D) E (= C x D) (F) G (= C x F)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pilot Participation.................... 5 1 5 30 150 $2,245 $11,225
Gathering and Submitting Data Elements. 5 1 5 13 66 515 2,573
Survey................................. 5 1 5 2.2 11 34.68 173
Filing Entry-Line...................... 5 1,500 7,500 0.030 225 1.04 7,803
----------------------------------------------------------------------------------------------------------------
Total.............................. .............. .............. 7,515 .............. 452 .............. 21,774
--------------------------------------------------------------------------------------------------------------------------------------------------------
Assumptions:
Appx. 10% of the 50 respondents will elect to use the Full PGA message set.
Estimated response cost for based on cost information from the Alpha Pilot test participants.
[[Page 35520]]
Wage data for survey and filing entry-line data comes from U.S. Bureau of Labor Statistics, ``Employer Costs for Employee Compensation,'' September
2021, Table 4, total compensation for all sales and office workers in goods-producing private industries: http://www.bls.gov/ncs/).
The estimated total burden for participation in the Beta Pilot test
is 9,217 hours, with an estimated cost of $404,800, or $44 per hour
($404,764/9,217).
Table 3--Total Estimated Burden or Beta Pilot Test
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average
Number of Number of Number of burden per Total annual Average cost Total annual
Type of respondent respondents responses per responses response (in burden (in per response respondent
respondent hours) hours) cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Burden (A) (B) C (= A x B) (D) E (= C x D) (F) G (= C x F)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pilot Participation.................... 50 1 50 85 4,245 $4,661 $233,030
Gathering and Submitting Data Elements. 50 1 50 25 1,262 903 45,152
Survey................................. 50 1 50 2 110 35 1,734
Filing Entry-Line...................... 50 22,650 1,132,500 0.003 3,600 0.11 124,848
----------------------------------------------------------------------------------------------------------------
Total.............................. .............. .............. 1,132,650 .............. 9,217 .............. 404,764
--------------------------------------------------------------------------------------------------------------------------------------------------------
In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)), we have submitted the information collection requirements to
the OMB for review. Pursuant to 44 U.S.C. 3506(c)(2)(A), we request
comment on this burden estimate and the analysis, including:
[ssquf] whether the collection of information is necessary for the
proper performance of the CPSC's functions, including whether the
information will have practical utility;
[ssquf] the accuracy of the CPSC's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
[ssquf] ways to enhance the quality, utility, and clarity of the
information to be collected; and
[ssquf] ways to reduce the burden of the collection of information
on respondents, including the use of automated collection techniques,
when appropriate, and other forms of information technology.
VIII. Confidentiality
All data submitted and entered into ACE is subject to the Trade
Secrets Act (18 U.S.C. 1905) and is considered confidential, except to
the extent as otherwise provided by law. As stated in previous notices,
participation in this or any of the previous ACE tests is not
confidential and upon a written Freedom of Information Act (FOIA)
request, a name(s) of an approved participant(s) will be disclosed by
CPSC or CBP in accordance with 5 U.S.C. 552.
Alberta E. Mills,
Secretary, Consumer Product Safety Commission.
[FR Doc. 2022-12477 Filed 6-9-22; 8:45 am]
BILLING CODE 6355-01-P