Hearing Reveals Internal CPSC Disagreements on Import User Fees
Consumer Product Safety Commission commissioner Ann Marie Buerkle voiced frustration to House lawmakers on Feb. 25 over the agency’s proposed collection of user fees from importers to finance a new import screening system, and challenged the constitutionality of the potential federal action. “I continue to believe that our imposition of fees could and would and should raise constitutional concerns,” she said during a hearing of the House Appropriations Financial Services and General Government Subcommittee. “We have a risk assessment methodology. So we apply that risk. Some products are subject to that. Some are not. And some fall prey and they get pulled because they’re high-risk. And so our benefit is only for some.” She said not all of industry will derive the same benefits from the fees, which means the user fee is a tax. CPSC doesn’t have the authority to levy taxes.
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CPSC Chairman Elliot Kaye said asking questions about the constitutionality of user fees represents a red herring, and said the agency would move forward with the fees through a "reasonable" process of soliciting “full stakeholder engagement” analogous to typical rulemaking. He said the user fee represents “pennies” per $1,000 of imports. CPSC in its fiscal 2017 budget request estimated that the proposed user fee, intended to support CPSC’s import surveillance office, would be assessed at 0.007% of entered value. “We think the trade community should want us focusing better on those actors that are not paying attention to the rules, and let compliant trade move through much more quickly,” Kaye said.
Subcommittee Chairman Ander Crenshaw, R-Fla., said he is concerned about CPSC’s “lack of collaboration and discussion” with importers prior to the “monumental” proposed policy change, and noted that House appropriators have blocked the Obama Administration’s request to implement user fees during the last two budget cycles. Kaye said industry engagement on the user fee issue has been “entirely adversarial,” adding: “If there has been somebody out there who is in favor of this in the trade community, I have not heard about it.” But Kaye said it’s important that industry isn’t opposed to CPSC having a greater port presence generated through general appropriations, and said the commission would be “very accepting” if Congress allocated the full amount of money to run import surveillance, in lieu of a CPSC-administered user fee. Buerkle agreed that CPSC needs to hire more port personnel to review surveillance data, and said the program would be much more effective if this happens.
ACE Implementation
As the federal government prepares to roll out its single-window filing system, which will support import and export filings for 47 federal entities, agencies including CPSC are stress testing their electronic filing systems. Kaye said that industry applauded the commission’s recent decision to halve the number of datasets in its electronic filing system from 10 to five. "If the CPSC can be integrated into the single window, we can transform Congress’ vision of a national scope, risk-based, data-driven screening at the ports into reality, a reality that would mean safer products in the hands of American consumers and faster entry for importers of compliant products,” Kaye said.
Hoverboards
CPSC has thus far been encouraged by the actions retailers have taken to address the new standard for hoverboards released by UL early this month, Kaye said. “Two of them that have actually stopped sale in the last day or so,” Kaye told lawmakers. “And we think that is a responsible action to take at this point—stop sale, have your products tested. If it complies with that underlying standard, you’re good. If it doesn’t comply, then I think it’s incumbent upon those companies to begin to initiate a recall process, coming to us with the recall proposal.” CPSC now considers hoverboards that don’t meet the new UL standards to be defective (see Four out of five product recalls apply to imports, the majority which originate in China, and while CPSC has strengthened its relationships with Chinese officials, the commission lacks the “depth and resources” to “attack” more areas to prevent the products from entering the U.S. CPSC has full-time staff in China to address these issues, Kaye said. “When we approach [the Chinese">1602220045), recently announcing that it will begin detaining and seizing hoverboards that don’t meet the new UL requirements. Kaye said CPSC’s technical staff should be finished with its product safety assessment on hoverboards within the next week or two. Four out of five product recalls apply to imports, the majority which originate in China, and while CPSC has strengthened its relationships with Chinese officials, the commission lacks the “depth and resources” to “attack” more areas to prevent the products from entering the U.S. CPSC has full-time staff in China to address these issues, Kaye said. “When we approach [the ChineseRecalls on Chinese Products
Recalls on Chinese Products
Overall CPSC Budget
Kaye said CPSC’s fiscal 2017 $130.5 million budget request will allow the commission to improve import surveillance by spreading personnel across 7 percent of all U.S. ports, allowing the agency to review 65 percent of all U.S. imports. Agency personnel currently work at 6 percent of U.S. ports. But stating opposition of the budget request, Buerkle said CPSC’s mission can be done at its current $125 million funding level.