Small Batch Manufacturers and Third Party Testing

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The Basics


Generally, all manufacturers of children's products must have their children's products third party tested and certified as compliant with applicable children's product safety rules.

 

What is the Small Batch Manufacturers Registry?


The Small Batch Manufacturers Registry is the online mechanism by which Small Batch Manufacturers can identify themselves to obtain relief from certain third party testing requirements for children’s products. To register as a Small Batch Manufacturer, an applicant must attest that it satisfies two threshold requirements. First, it must attest that its total gross revenue from the prior calendar year (e.g., calendar year 2013 sales to qualify for calendar year 2014) from the sale of all consumer products is $1,052,913 or less1. Second, it must attest that it manufactured no more than 7,500 units of the covered product that qualifies the Small Batch Manufacturer for registration.

 

What is a qualifying small batch manufacturer?

 

A small batch manufacturer is a qualifying small batch manufacturer if both of the following requirements are satisfied:

 

Income: A small batch manufacturer is defined as a manufacturer whose total gross revenues from the prior calendar year (e.g., calendar year 2013 sales to qualify for calendar year 2014) from the sale of all consumer products is $1,052,913 or less1. The term "consumer products" includes both children's products and non-children's products even though third party testing requirements apply only to children's products. It does not include revenues from non-consumer products, like food, drugs, and other items not regulated by the CPSC, but it does include revenues from the sale of consumer products by other businesses the registering company controls, is controlled by, or with which it is under common control.


Covered Product: A covered product means a consumer product manufactured by a small batch manufacturer where no more than 7,500 units of the same product were manufactured in the previous calendar year (i.e., calendar year units of the same product manufactured in 2013 for calendar year 2014 qualification.)

Are small batch manufacturers currently required to third party test their children's products in order to certify compliance to applicable regulations?


It depends on the children's product and the materials used to manufacture that children's product.

Small batch manufacturers will ALWAYS be required to third party test for compliance with certain children's product safety rules (listed in group A, on the right hand side of this page).

Qualifying small batch manufacturers are NOT required to third party test for compliance with certain other children's product safety rules (Group B, on the right hand side of this page). Note, however, that all manufacturers, even those that are small batch manufacturers, must ensure that their children's products are in compliance with the underlying children's product safety rules in Group B and issue a general certificate of conformity (GCC).

 

Must a qualifying Small Batch Manufacturer register with the CPSC to avoid the requirements of third party testing for the children’s product safety rules listed in Group B?


Yes. Registration will be required every year. For calendar year 2012, we anticipate that registration will open in December 2011. More details will be released when the registry becomes available, but there will be plenty of time to register, and qualifying Small Batch Manufacturers will not need to third party test Group B products in the interim, including those products currently subject to stays on third party testing and certification that will lift on January 1, 2012.

 

What are the benefits of registering now in the CPSC’s Small Batch Manufacturers Registry?


Qualifying Small Batch Manufacturers that register now with the CPSC will benefit in a number of ways. After registering, qualifying Small Batch Manufacturers will not be required to third party test for the children’s product safety rules in Group B until the Commission has provided either an alternative testing requirement or an exemption. In addition, registration will allow companies to document that they are entitled to such relief. A registered small batch manufacturer whose business information is published in the Small Batch Manufacturers Registry will be able to direct retailers to the CPSC website for immediate and easy confirmation of the company’s status as a qualifying Small Batch Manufacturer. Through this process, retailers, in turn, will be able to avoid fraudulent claims of exemption.

 

Will the name of all registered small batch manufacturers be published in the Small Batch Manufacturers Registry?


The business name, city, and state of a registered small batch manufacturer will be made available to the public, unless, within fifteen calendar days of registration, a business provides CPSC with written notification pursuant to section 6 of the Consumer Product Safety Act. For more information on what this written notification must contain, please click here.

 

Where can I learn more?


This page serves as the primary resource page for all information related to the third party testing obligations of small batch manufacturers. Please bookmark the page, and check back soon for additional information and guidance.

 

 

This communication has been prepared for general informational purposes only and is based upon the facts and information presented. This communication does not, and is not intended to, constitute legal advice and has not been reviewed or approved by the Commission, and does not necessarily represent their views. Any views expressed in this communication may be changed or superseded by the Commission.

 


1Note: that the Consumer Product Safety Act provides for this figure to adjust annually by the percentage increase in the Consumer Price Index for all urban consumers published by the Department of Labor.  See 15 U.S.C. § 2063(i)(3)(E)(ii). This figure will be adjusted upwards in early 2014 based on figures to be provided by the Department of Labor.  The size of the adjustment is still unknown, but if your company’s revenues are currently $900,000 or more, we recommend that you defer registering with the CPSC until the new figures are released.  If you register before the release and your revenues exceed the maximum allowed amount as adjusted in 2014, you must notify the CPSC to cancel your registration or potentially face penalties.