What’s in Your Clothes? Why You Need to Know What Chemicals are in

Your Clothes and the Tools That Can Help

TexWorld USA, January 22, 2014 Nate Herman

Vice President, International Trade American Apparel & Footwear Association

Consumer Product Safety Improvement Act (CPSIA) Update

Nate Herman Vice President, International Trade

American Apparel & Footwear Association

Changes at the CPSC and its Impact CPSC Changes: • Chairman Inez Tenenbaum (D) Stepped

Down November 30, 2013 • Commissioner Nancy Nord’s (R) Term

Ended October 2013

Remaining Commissioners: – Bob Adler (D) – Marietta Robinson (D) (Sworn in July 2013) – Ann Marie Buerkle (R) (Sworn in July 2013)

Composition of the Commission • Current:

– Commissioner Adler Appointed Acting Chairman

– Commission Has 2Ds and 1R - Adler, Robinson, and Buerkle

• Future: – President Obama on November 6

Nominated Joe Mohorovic to Fill the Republican Vacancy on the Commission

– No Democratic Nominee Yet

Changes at the CPSC and its Impact

Proposed Changes to Certificates of Compliance (1110 Rule)

Background • CPSIA requires manufacturers of consumer

products to certify, based on a test of each product or a reasonable testing program (third party testing for children’s products), that the product complies with all CPSC enforced rules, bans, standards, or regulations

Current • Provide third party test results and certification

upon request of customer or CPSC

Proposed Changes • Would Strike & Replace Existing 1110 Rule • Importer Must Certify Product

– Except When Foreign Manufacturer Direct Ships to Consumer

• New Information on Certificate: – Street Address of Factory – Name of Foreign Manufacturer

• Certificates Electronically Filed with CBP at Time of Entry

• Certificates required up to 24 hours in advance of arrival as part of Importer Security Filing (ISF)

• 5 Year Recordkeeping Requirement

Proposed Changes to Certificates of Compliance (1110 Rule)

Impact to Import Compliance • Certificates Must be Electronically

Filed and Available at Ports • Essentially Certificate Required for

Right to Make Entry – Does the lack of certificate permit CBP to

deny product entry? – Will certificates be subject to CBP rules for

documentation, record keeping, and penalties?

• CBP penalties separate from CPSC

Proposed Changes to Certificates of Compliance (1110 Rule)

Status Update • Comment Period Closed 07/29/13

– 59 Comments

• No Decision – Shutdown Caused Delays

Proposed Changes to Certificates of Compliance (1110 Rule)

• Certification and Testing Program – Reasonable Testing Program (RTP) Requires:

• Certification Testing • Periodic Testing/Production Plan • Material Change requires retesting • Undue influence policies and training

– Effective February 8, 2013 – AAFA RTP Guidance Release January 29, 2014

• CPSC Proposal on Voluntary Recalls – Guidelines for Content and Form of Corrective Action

Plans – Would Make Corrective Action Plans Legally-Binding – Comments Due February 4, 2014

CPSIA – Other Issues

• Publishing Product Information W/O First Notifying Manufacturers Current Rule – Requires CPSC to Notify Companies At Least 15 Days Before

Publishing Information – Companies Can Prevent CPSC from Making Public any Discussion

Between Company and CPSC

Proposed Rule – Increases Exemptions from Requirement, Including Any

Information Found on/in: • The Internet • Press Clips • SaferProducts.Gov Database

– Non-Disclosures Must be “Justified” Next Steps - January 23 – Staff Brief Commissioners - February 5 – Commissioners Vote to Make Formal Proposal

CPSIA – And More Issues

California Proposition 65 (Prop 65)

Nate Herman Vice President, International Trade

American Apparel & Footwear Association

What is California Prop 65? •Labeling Rule - Does not ban or limit amount of chemicals in product.

•Requires that the consumer be warned that product contains certain chemicals at time of purchase

“This product contains “chemicals” known to the State of California to cause cancer, or birth defects or other reproductive harm.”

•Prop 65 applies to ALL products sold in California •Children AND ADULT products

•Exposure “limits”, not content limits like CPSIA •“Safe Harbor” Levels, where they exist, are based on exposure •Micrograms Per Day (Mg/Day) Vs. Parts Per Million (PPM)

•Covers Over 850 chemicals – NOT Just Lead & Phthalates

•Prop 65 enforced through litigation (LAWSUITS) •Private California citizens •Consumer Advocacy Groups

•These “Citizen Enforcers” or “Bounty Hunters” issue “60-Day Notices” of their intent to sue a company for an alleged violation of Prop 65

•Almost every case ends in a settlement •Average Settlement - $75,000

•Most of settlement goes to plaintiffs and their lawyers •Most settlements impose new content limits on the chemicals involved

•Lead – 200ppm for substrate, 90ppm for paint/surface coatings (for clothes and shoes) •Phthalates (DEHP, DBP, BBP) – 1,000ppm (for clothes and shoes) •Cadmium – 300ppm (for jewelry)

What is California Prop 65?

California Prop 65 & Footwear

0

50

100

150

200

250

2011 2012 2013*

97 59 44

17 15 12

223

87 84

# of Prop 65 Apparel, Footwear, & Travel Goods 60-Day Notices

Footwear Apparel Travel Goods

California Prop 65 & Footwear

125

40 7

2013 Prop 65 Apparel, Footwear, and Fashion Accessories 60-Day Notices

By Chemical Phthalates

Lead

Lead,Phthalates,Arsenic,Cadmium

How Can You Comply With Prop 65?

How Can You Comply With Prop 65?

AAFA Prop 65 RSL

Washington State Children’s Safe Products Act (CSPA)

Nate Herman Vice President, International Trade

American Apparel & Footwear Association

The Rule • Requires Disclosure of Chemicals of High Concern

to Children (CHCC) in Children’s Products • 66 CHCCs • For Products for Children Under 12 • Tiered Reporting: 3 Reporting Dates Have Passed • Next Reporting Date for Apparel: August 2014

– Firms with Sales Between $100 Million and $250 Million – For Baby Clothes, Firms with Sales Between $5 Million

and $100 Million

• Data Still Being Collected, No Analysis Yet

Washington State CSPA

The Data • 1050 reports submitted for footwear in

2012 & 2013 (to date) by 18 companies

• 24 chemicals reported in footwear products

Washington State CSPA

2% 7% <1%

20%

<1%

1%

2%

<1%

2%

18%

<1%

18%

4%

17%

5%

1% 1%

4-Nonylphenol

Antimony

Butyl benzyl phthalate (BBP)

Cobalt

Di-2-ethylhexyl phthalate

Dibutyl phthalate

Diethyl phthalate

Diisodecyl phthalate (DIDP)

Diisononyl phthalate (DINP)

Ethylene glycol

Formaldehyde

Methyl ethyl ketone

Molybdenum

Octamethylcyclotetrasiloxane

Styrene

Toluene

Washington State CSPA – The Data

The Guidance • AAFA Guidance Provides Industry:

– Common Methodology for Consistent Reporting Throughout the Industry

• The Guidance Includes: – Industry Interpretation of the CSPA – What to Include in Disclosure – Three Keys to Approaching the Regulations – Frequently Asked Questions (FAQs) – Best Practices for Decision Making Process – Reporting Rule Decision Tree – Document Analyzing Current CHCCs Use in Industry

Washington State CSPA

AAFA Guidance Available for FREE on

AAFA’s Website https://www.wewear.org/industry-

resources/washington-childrens-safe-products-act/

Washington State CSPA

California Safer Consumer Products Regulation

Nate Herman Vice President, International Trade

American Apparel & Footwear Association

The Rule • Created/Enforced by California Dept. of Toxic

Substances Control (DTSC) – Went into Effect October 1, 2013

• DTSC Will: – Create List of Candidate Chemicals (CC) – Analyze CC List to Identify Up to 5 Priority Products (PP) – Designate CCs Found in PPs as Chemicals of Concern

(COC)

• If COC, Manufacturers Must: – A) Perform Alternative Analysis (AA) for PPs and COCs; OR – B) Prove Product Does Not Exceed AA Pre-determined

Threshold Level; OR – C) Take Product/Chemical Off Market

California Safer Consumer Products Regulation

The Dates • April 1, 2014 – Deadline to Publish First

“Proposed” Priority Products List

• October 1, 2014 – Deadline to Publish First Priority Product Work Plan

California Safer Consumer Products Regulation

The Candidate Chemicals • Currently 248 Candidate Chemicals on Initial List • Searchable Database on DTSC website:

http://cit.dtsc.ca.gov/scp/chemicalsearch/ • Examples of Chemicals on Initial CC List:

AZO Dyes Benzidine Anisidine

Solvents

Carbon Tetrachloride Chloroform

Flame Retardants Chlorinated paraffins

Tris Phosphate

Metals Cadmium

Lead Nickel

Phthalates

Di-n-octyl Di-isodecyl

Dimethyl sulfate

Others

Formaldehyde Asbestos

California Safer Consumer Products Regulation

Reform of Toxic Substances Control Act (TSCA)

Nate Herman Vice President, International Trade

American Apparel & Footwear Association

Chemical Safety Improvement Act of 2013 (CSIA)

• Introduced May 2013 • First Bi-Partisan Effort to Reform TSCA • Sponsors

– Senator Frank Lautenberg (D-NJ) (Deceased) – Senator David Vitter (R-LA) – 26 Co-Sponsors (13 Ds, 13 Rs)

• Balanced Approach – Screens Every Chemical for Safety – Still Fosters Innovation, Growth, & Jobs – Reasonable “Pre-Emption” of State Regs

TSCA Reform

CSIA Continued • AAFA Supports • Strong Support, but Issues

– Must Go Through Senate Environment and Public Works (EPW) Committee

– Senator Barbara Boxer (D-CA) is Chair of Senate EPW Committee

• Strongly Opposes CSIA

TSCA Reform

AAFA RSL • FREE • Strictest Regulation of Chemical Worldwide • 13th Edition Published September 2013 • English, Vietnamese, Chinese, Spanish • App to be Published January 29 • http://www.wewear.org

Other Resources • AFIRM Non-Regulated RSL • Voluntary Product Environmental Profile (VPEP) • AAFA’s Product Safety Council & Environmental

Committee

Other Tools

Questions?

Nate Herman Vice President, International Trade

American Apparel & Footwear Association 703-797-9062

nherman@wewear.org http://www.wewear.org