Electronic Filing of Certificate of Compliance Data: Announcement of Expansion of Partner Government Agency Message Set Test and Collection of Information Burden Estimate

SUPPLEMENTARY INFORMATION:

I. Background

On June 10, 2022, CPSC announced in the Federal Register (87 FR 35513) a joint Beta Pilot test with CBP to assess eFiling certificate data for regulated consumer products and substances under CPSC's jurisdiction using CBP's PGA Message Set in ACE (Beta Pilot Test Announcement). The notice sought up to 50 Beta Pilot participants and provided a 60-day comment period for CPSC's Paperwork Reduction Act (PRA) burden estimate for the Beta Pilot test. Pursuant to this notice, CPSC received no comment on the burden estimates provided. On September 14, 2022, CPSC published in the Federal Register the required second notice providing a 30-day public comment period on the burden estimates for the Beta Pilot test, as required by the PRA. 87 FR 56407. CPSC received no comments. Subsequently, the Office of Management and Budget (OMB) assigned control number 3041-0193 for the Beta Pilot test.

In 2023, CPSC and CBP began the Beta Pilot test with 37 importer participants, along with their trade partners, such as brokers and laboratories. On December 8, 2023, CPSC published a supplemental notice of proposed rulemaking (SNPR) to revise 16 CFR part 1110 to, among other things, require eFiling of certificate data. 88 FR 85760. On June 4, 2024, CPSC and CBP announced in the Federal Register their joint intent to expand the Beta Pilot test to include up to an additional 2,000 importer participants and to extend the Beta Pilot test until the effective date of a final rule implementing an eFiling requirement (or for up to three years, which is the length of a PRA control number issued by the OMB). 89 FR 47922. The June 4th announcement provided a 60-day comment period, and CPSC received two comments, which we address in section V of this notice. In accordance with the PRA, this notice responds to comments and provides an additional 30-day comment period on the PRA burden estimate for the Beta Pilot expansion.

CPSC's previous Beta Pilot Test Announcement (87 FR 35513, 35517-18) discussed CBP and CPSC's legal authority to conduct the Beta Pilot test. Additionally, the Beta Pilot Test Announcement and the recent SNPR to revise 16 CFR part 1110 explained CPSC's authority to require electronic filing of certificate data at the time of entry, or entry summary, if both are filed together. 87 FR 35513, 35518; 88 FR 85760, 85760-62.

A. Expansion of the Beta Pilot Test

The June 10, 2022, Beta Pilot Test Announcement explained CPSC's authority to require eFiling, the Alpha Pilot, and the Beta Pilot test, including its purpose, structure, and burden. 87 FR 35513. The Beta Pilot Test Announcement also described the Commission's direction for an eFiling Program, explaining that on December 18, 2020, the Commission approved staff's recommended plan to implement a permanent eFiling program at CPSC. The Beta Pilot test and the December 8, 2023, SNPR (88 FR 85760) are in furtherance of CPSC's eFiling Program. CPSC and CBP are expanding the Beta Pilot test (expanded Beta Pilot test) to allow importers of regulated consumer products and substances to voluntarily participate in the eFiling program.

The expanded Beta Pilot test provides additional members of the import community more time to gradually prepare for and begin eFiling PGA Message Sets. Similar to the initial Beta Pilot test, the expanded test involves eFiling certificate data for regulated consumer products and substances under CPSC's jurisdiction that are classified under approximately 2,500 Harmonized Tariff Schedule (HTS) codes.

The expanded Beta Pilot test will allow CPSC to further scale up the information technology (IT), procedural, and processing requirements of the Product Registry and the Risk Assessment Methodology system (RAM) before the anticipated full implementation. For example, CPSC will scale up IT systems to accept data for regulated consumer products from more importers; refine the required infrastructure for the real-time collection and use of data; and continue development of internal and external procedures to supply, use, and maintain certificate data. Expanding the Beta Pilot test also enables CPSC to continue developing RAM algorithms to triage import data received from CBP to detect more effectively noncompliant consumer products arriving at ports of entry.

To accommodate expansion of the Beta Pilot test, this notice seeks up to 2,000 additional participants and revises CPSC's PRA analysis to accommodate these additional participants by revising the estimated annual burden to participants.

B. Use of the Automated Commercial Environment

CPSC is conducting the expanded Beta Pilot test in coordination with CBP and using the ACE system through which CBP collects importation and entry data, thus streamlining business processes and ensuring cargo security and compliance with U.S. laws and regulations. CBP developed ACE as the “single window” for the trade community to comply with the International Trade Data System (ITDS) requirement established by the Security and Accountability for Every (SAFE) Port Act of 2006. Trade filers must submit data to ACE using an EDI system, such as the Automated Broker Interface (ABI). Commercial trade participants, or the licensed customs brokers acting on their behalf, can electronically file entry data in ACE using ABI. A PGA Message Set allows the trade to enter agency-specific data along with entry data, through ABI, and for PGAs, such as CPSC, to receive this additional trade-related data.

II. Beta Pilot Test: Certificate Data

The expanded Beta Pilot test will follow the same structure as the existing Beta Pilot test, with 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 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 then makes available to CPSC the PGA Message Set data and its corresponding entry data, for CPSC's validation, risk assessment, and admissibility consideration at entry, thereby facilitating compliant trade as well as sharpening CPSC focus on noncompliant trade. CPSC staff uses eFiled certificate data to review consumer product entry requirements and allow for earlier risk-based hold decisions and admissibility considerations. Additionally, because it is electronic, the PGA Message Set will eliminate or substantially reduce the necessity for submission and subsequent handling of paper documents. Section II of the 2022 Beta Pilot Test Announcement details the expected PGA Message Set data from a certificate of compliance as well as the methods for filing such data. 87 FR 35513, 35516-17.

CPSC's supplemental CATAIR guideline on filing certificate data through the PGA Message Set describes the technical specifications for filing during the expanded Beta Pilot test, as well as the Product Registry and Reference PGA Message Set. 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.

III. Beta Pilot Test Participant Eligibility, Selection Criteria, and Responsibilities

This document reannounces CPSC's plan, in consultation with CBP, to expand the number of Beta Pilot test participants from 50 up to an additional 2,000 importers, and to extend the Beta Pilot test period from six months to up to three years, the length of time for an OMB control number, or until an effective date of a final rule implementing an eFiling requirement. Accordingly, CPSC and CBP seek additional Beta Pilot test participants. U.S.-based importers with an assortment of CPSC-regulated products may 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; 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.

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; and
• Ability to trouble-shoot systems and procedures.

IV. Application Process and Test Duration

Any importer seeking to participate in the test should email their company name, contact information, importer of record number(s), filer code(s), and an explanation of how they satisfy the requirements for participation to the address listed at the beginning of this notice. CPSC will notify expanded Beta Pilot test applicants of approval to participate by email and will work with importers to onboard into the Pilot on a first come, first served basis. Depending on the level of interest, CPSC may restrict on-boarding of new participants, at least in the beginning of the expanded Beta Pilot test, to accommodate all participants successfully and smoothly.

V. Comment Responses

We received two comments, discussing six issues, in response to the June 4th notice regarding the expanded Beta Pilot test. Both commenters support the expanded Beta Pilot test. However, the commenters also raised several issues that are out-of-scope for this PRA notice, in that they do not address the revised burden estimate for an expanded Beta Pilot test, but rather relate to the SNPR to revise 16 CFR part 1110. Below we summarize and respond to each issue raised by the commenters.

Comment 1: The Retail Industry Leaders Association (RILA) asserts that the burden estimate in the June 4th expanded Beta Pilot test notice does not fully account for the time to support gathering and submitting data elements and only reflects the burden of gathering and submitting data for a limited quantity of products and their corresponding fillings. RILA states that their members' approximations of the burden hours per importer are nearly double, if not more, than those of the Commission's estimates, depending on the overall size of the retailer and volume and variety of imported goods. RILA references two Beta Pilot participants; one estimated an annual burden of approximately 500 hours and another estimated an annual burden of 15,700 hours.

Response 1: One purpose of the eFiling Beta Pilot is to gain experience on the burden that importers may experience and inform the SNPR to update 16 CFR 1110. Experience from the limited quantity of products and filings from the initial Beta Pilot test has yielded useful information about participant's burden in an expanded Beta Pilot test. Participants are not choosing to eFile certificates for all of their imported, regulated products during the Beta Pilot. Accordingly, the PRA burden estimate is based on the estimated number of filings during the expanded Beta Pilot test, and not full implementation of eFiling for all regulated, imported products. We acknowledge that mandatory eFiling for all regulated, imported products and substances would likely take additional time and increase the PRA burden estimate. CPSC will provide this more fulsome estimate in the PRA burden for a final rule to revise 16 CFR part 1110. For the expanded Beta Pilot test, because firms are not required to file certificates for every imported, regulated product subject to a CPSC rule, ban, standard, or regulation, CPSC's burden estimate accurately reflects importers' expected eFiling activity.

With respect to expected annual burden, through staff's engagement with Beta Pilot participants, staff observed variation in the burden from the Beta Pilot with participants on average taking less than 200 hours to participate, but some participants taking significantly more time. Variation also occurs in the number of certificates that participants file and the duration of their participation. Thus, the annual burden for larger firms filing many products would likely be greater than the burden for medium or smaller-sized importers. As such, the burden per product certificate filed is a better, more accurate metric to account for the variation in the expected filing burden that the commenter references. CPSC will consider the experience of Beta Pilot test participants when finalizing the burden estimate for the final rule to revise part 1110; however, participation in the expanded Beta Pilot test is voluntary and does not require routine eFiling of certificates for all products subject to a CPSC rule, ban, standard, or regulation. Therefore, the current burden estimate accurately reflects importer's expected participation burden in the expanded Beta Pilot.

Comment 2: RILA questions whether the burden estimate accounts for expected holds and associated delays of imports due to eFiling errors. RILA also questions whether the disclaim process for products that are exempted or excluded is included in the burden analysis, stating that disclaims increase burden on firms.

Response 2: Importers participating in the expanded Beta Pilot test will not experience delay of their shipments due to eFiling errors and, therefore, will not experience additional paperwork burden under the PRA. The purpose of the expanded Beta Pilot test is to introduce importers to eFiling prior to implementation of a final rule to require eFiling, and allow CPSC to further scale up the IT, procedural, and processing requirements of the Product Registry and the RAM before the anticipated full implementation. Even at that point, CPSC does not intend to delay shipments for eFiling errors, but instead will use the certificate data for risk scoring of shipments.

Furthermore, the disclaim process was optional during the initial Beta Pilot test and remains optional during the expanded Beta Pilot test; importers do not need to disclaim products if they choose not to. Like the initial Beta Pilot test, the estimated burden analysis for the expanded Beta Pilot test is based on overall participation and considers all types of filing, including disclaims. Therefore, the optional disclaim process is already reflected in the PRA burden estimate.

Out-of-Scope Comments: CPSC received several comments that are out-of-scope, in that they do not address the revised burden estimate for an expanded Beta Pilot test, including:

• The Information Technology Industry Council (ITI) alleges that CPSC is moving forward with the eFiling rule without adequately considering products subject to Reese's Law, applicable to consumer products containing button cell or coin batteries. ITI notes that CPSC's guidance documents posted on its eFiling Document Library web page do not address some of the nuances for products containing button cell or coin batteries.
• ITI states that an import-centric registration methodology in the Product Registry will create a “logistics nightmare” for U.S. companies that use information and communications technology (ICT) equipment.
• RILA reiterates its comments on the SNPR to revise16 CFR 1110. RILA states that the timeline for proposed implementation does not account for time needed to plan and standup attendant system upgrades to fully implement eFiling. RILA recommends a minimum of 18 months for implementation of a final rule.
• RILA encourages CPSC to increase clarity and guidance for implementation of eFiling, specifically requesting that CPSC address reporting logic on all products in its jurisdiction and publish a clear and publicly available list of flagged Harmonized Tariff Schedule (HTS) codes.

Response to Out-of-Scope Comments: These comments from ITI and RILA are related to the SNPR to revise 16 CFR part 1110 through a final rule, and are not related to the burden estimate for the expanded Beta Pilot test. To the extent that these comments are relevant to the final rule to revise 16 CFR part 1110, the Commission will consider these comments in the final rule.

CPSC has answered many questions regarding implementation of eFiling, and the function of the Product Registry, in speaking engagements, webinars, and documents on our website at www.cpsc.gov/eFiling. CPSC will continue to educate industry about eFiling, including guidance material and videos, and will specifically address ITI's practice-related questions in future guidance.

VI. Paperwork Reduction Act

The Beta Pilot test contains information collection requirements that are subject to public comment and review by OMB under the PRA of 1995 (44 U.S.C. 3501-3521). CPSC previously received an OMB control number for the existing Beta Pilot test: 3041-0193. CPSC now seeks to expand the number of participants in this test up to an additional 2,000 and extend the test duration for up to three additional years (2027), which is the length of time for an OMB control number, or until an effective date of a final rule implementing an eFiling requirement. In this document, pursuant to 44 U.S.C. 3507(a)(1)(D), we set forth:

• a title for the collection of information;
• a summary of the collection of information;
• a brief description of the need for the information and the proposed use of the information;
• a description of the likely respondents and proposed frequency of responses to the collection of information;
• an estimate of the burden that shall result from the collection of information; and
• 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 an additional 2,000 participating importers of regulated consumer products will electronically file the requested certificate data, comprised of seven 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 the agency will risk score the information in CPSC's RAM system to assist in the interdiction of noncompliant consumer products.

As set forth in section V.B of the Beta Pilot Test Announcement (87 FR 35513, 35517-18), 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 attesting 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 must 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.” 15 U.S.C. 2063(g)(4). The Commission issued an SNPR to require eFiling on December 8, 2023. 88 FR 85760.

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 2,000 importer participants who import regulated consumer products within CPSC's jurisdiction.

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 initial and expanded Beta Pilot tests. In response to comments on the estimated burden for the expanded Beta Pilot test, we confirmed the PRA burden estimate based on experience from participants in the initial Beta Pilot test, finding that CPSC's burden estimates accurately reflect the experiences of Beta Pilot test participants. Like the initial Beta Pilot test, the burden from participating in the expanded 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 and Beta Pilot test participants, for the expanded Beta Pilot test, we assumed that many more participants (90%) would opt to exclusively use the Product Registry and Reference PGA Message Set, while only 10% would opt to exclusively use the Full PGA Message Set. Table 3 of the 2022 Beta Pilot Test Announcement provides the total annual burden estimate for the current Beta Pilot, estimating 9,217 annual burden hours from all participants, with an estimated annual cost (combined for all participants) of $404,764 (in 2021 dollars). 87 FR 35513, 35520. When adjusted for inflation, the total estimated annual cost to current Beta Pilot test participants in 2023 is $442,002.

CPSC estimates that the expanded Beta Pilot test will have similar burden per response and cost per response as the participants in the current Beta Pilot test, with the exception of burden from survey responses, which will not be required of the expanded Beta Pilot test participants. Accordingly, CPSC estimates that if an additional 2,000 importers participate, 1,800 participants will use the Product Registry and Reference PGA Message Set, while 200 participants will use the Full PGA Message Set.

Tables 1-3 contain burden estimates for the expanded Beta Pilot test, which are in addition to the burden estimates provided in the 2022 Beta Pilot Test Announcement for up to 50 participants. Table 1 shows an estimated 1,800 additional participants will use the Reference PGA Message Set and bear an annual burden of 265,600 hours, with an estimated total annual cost for all participants of $13,593,303.