| 1. CPSC has authority in cooperation with the US Customs and Border Protection to enforce all USA import laws. Customs officials are getting tough |
Section 17(a)(2) of the Consumer Product Safety Act states that a product offered for importation "shall be refused admission"if it is not accompanied by a certificate required under section 14 |
CPSC Section 14 |
| 2. Corporate Address |
Before a manufacturer is able to export to USA Dealers, they must have a corporate address and principle place of business which is required before applying for and obtaining other licenses necessary to export to USA Motorsports Dealers. |
Required for EPA and CPSC |
| 3. Manufacturer must be licensed in every state |
Before a manufacutrer can sell to the public or dealers in any state, they must first obtain a license and in some casses show proof of liability insurance |
Regulated by State Law |
| 4. Must have 100 service centers across the USA |
It is illegal to sell product to the american public if the manufacturer has not arranged for authorized service centers who have been trainined to service or repair the product otherwise the public may suffer unfair losses and inability to use the product. |
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| 5. Manufacturer must have net worth of 10 million |
Manufacturers must provide proof of financial strength and a net worth of 10 million due to the potential liabilities associated with ATV/Motorcycle or UTV sales in America. See the case USA - Baja Motorsports. |
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| 6. Obtain a compliance bond |
If the manufacturer does not have a net worth of 10 million, the manufacturer must purchase a performance bond which guarantees the government that if the manufacturer is sued or fined that the funds will be paid for damages caused by the manufacturer. |
CPSC Section 5(a) |
| 7. Manufacturer must have a certificate of compliance |
Must get a certificate of compliance from the CPSC warratning that the exported proudct complies with ANSI and other regulations and laws relevant to the safe operation of the vehicle |
CPSC Section 1(d) |
| 8. Establish a USA distribution center for spare parts |
3% wholesale value of vehcles sold in a yr |
ANSI/ SVIA 1–2007 |
| 9. Provide After Sale Service Support |
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40 CFR §1068.501 |
10. N.A.D.A Approval for consumer financing
Kelly BB Approval for consumer financing |
Before banks or flooring companies will provide loans to customers or dealerson a vehicle, they rely on valuation companies to determine the MSRP and resale price so they dont over loan on a product. To Apply to be in this companies Appraisal book, the Manufacturer must deliver a sample product by appointment as part of the approval process. |
Generally takes 2-3 years
Generally takes 1 year |
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| 13. Develop a corporate website presence in USA |
Manufacturer must have a website with information for dealers and consumers that covers the information below and makes it easy for both to get the information they need |
40 CFR 1068.520
ANSI/ SVIA 1–2007 |
| 14. Build online RECALL database to track all customers |
Manufacturer must maintain a database of all customers in the event of a recall. Dealers are required to have each customer register their vehicle before leaving the dealership |
CPSC Section 4 (c)
40 CFR §1068.501
40 CFR 1068.520
CPSC Section 6 (a) |
| 15. Write a recall plan and submit to CPSC |
Manufacturer must build an online database of all reported accidents that result in injury or death. each incident must be reported to the CPSC. Must write a recall plan in the event the vehicle or any part on the vehicle consistently fails or proves to create an unsafe situation. The Recall plan must be submitted and acceptedd by the CPSC. |
Clarify that the CPSC must approve the consumer remedy (refund, repair or replacement) proposed by a firm under Section 15 of the CPSA or section 15 of the FHSA;
40 CFR 1068.520 |
| 16. Develop an online warranty approval site |
Manufacturer must build an online database of all warranty claims for reproting purposes. Must be indexed by Vin#, Date of purchase, dealer and states. |
40 CFR §1068.501 |
| 17. Report accidents and injuries to CPSC |
Manufacturer must track and report all warranty claims, accidents and or deaths during the use of their prodcut within 15 days to the CPSC |
CPSC Section 7 (a)40 CFR §1068.501 CPSC Section 4 (a) Require reports under section 15 whenever a manufacturer, distributor or retailer obtains information which reasonably supports the conclusion that a product fails to comply |
| 18. Develop an online OEM parts lookup site |
Develop an online site for dealers to look up parts in exploded views with item numbers, discriptions and cost. |
Required of Manufacturers as part of the Warranty and service requirments rules |
| 19. Make Consumer Safety Video |
Manufactures must create a consumer training video that represents safe riding techniques, CPSC disclosures for accidents, inhuries, deaths and age restrictions. Consumers must watch the video at the time of purchase. |
CPSC Consumer disclosures and required training
ANSI/ SVIA 1–2007 |
20. Make and distribute Safety Poster (4' x 4') |
Manufacture must provide each dealer with posters that must be clearly placed to warn the customer of Age restrictions, ATV/UTV deaths and injuries and courses for SAFE DRIVING PROGRAMS. |
CPSC Consumer disclosures and required training
ANSI/ SVIA 1–2007 |
| 21. Submit vehicle for Safety Testing |
Vehicle must pass mimimum testing requirments established by the American National Standards Institute. |
ANSI/
SVIA 1–2007
CPSC 16 CFR Part 1420
CPSC SEC. 42. 15 ( |
| 22. Required reporting of defective products or parts |
Must report to CPSC if a product or part “presents an unreasonable risk of serious injury or death” |
CPSC Section 15 (b)
40 CFR §1068.501 |
| 23. Submit two vehicles for R.O.P.S. testing |
Due to the over 400 deaths by drivers or passengers in UTV's CPSC now requires that vehicles be tested for safe and effective roll over protection systems (Roll Cage) |
ANSI/ SVIA 1–2007 |
24. EPA approval for combustion motors
REquired EPA Labels |
Manufacturer must pass Federal safe emission requirments and get EPA certification before selling machines in any states in America. |
13CCR, Section 2412(b)
13CCR, Section 2403(b)
40 CFR §1051.250
40 CFR §1051.135 epa labels
Generall takes 6 to 12 months |
| 25. CARB approval for Sales in California |
Manufacturer must pass the emissions requirments for the State of California and get C.A.R.B. certification before selling any machines in the state or displaying at dealerships in the state. |
Title 13, California Code of Regulations (13CCR), Section 2412(b)
Emmission Standards §1051.145(b)(2) and (b)(3).
40 CFR §1051.205(q |
| 26. Provide Lead level testing results. |
Many parts of the vehicle must be tested for high levels of Lead which have been proven to be dangerouse to the health of Children and Adults. |
Required by CPSCIA
Testing not required but liable for selling |
| 27. Provide certificate for Lead testing of paint to importers, dealers and retailers. |
This alternative method for measurement may not allow more than 2 micrograms of lead in a total weight of 10 milligrams of paint The importer or U.S. manufacturer is required to "furnish" the certificate to its distributors and retailers |
CPSCIA Section 101(f)(3)
CPSC Approved Testing Method
CPSC Section 102
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| 28. Provide USA Tech support by phone 9 – 5 |
Manufacturer must offer live Tech support for their vehicles by a qualified technitian during normal USA working hours. |
ANSI/ SVIA 1–2007
USA -V- Baja Motorsports |
| 29. Write Warranty agreement for Dealer |
Manufacturer must write a warranty agreement with each dealer stipulating how the dealer will be reimbursed for warranty repairs and how the Dealer will obtain replacement parts. |
40 CFR §1068.501
Section 207(a) of the Clean Air Act (42 U.S.C. 7541(a)) |
| 30. Write warranty agreement for consumer |
Manufacturer must provide each customer a written warranty agreement clearly representing the length of warranty and the terms of warranty. Customers must sign the warranty agreement at the time of purchase. |
40 CFR §1068.501
40 CFR 1068.520
ANSI/ SVIA 1–2007 |
| 31. Write extended EPA Warranty for customers |
In addition to the warranty agreement the manufacturer must also give an extended warranty guaranteeing that the vehicle will comply with EPA standards two years after purchase . |
40 CFR §1068.501
40 CFR 1068.115
Section 207(a) of the Clean Air Act (42 U.S.C. 7541(a))
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| 32. EPA Aged Testing & mandatory reporting of 1% or 5 vehicles (whichever is greater) of ea vehicle type |
Manufacturer must test fo raged EPA complaince. Test results must be reported to EPA for each product type Manufacturers must submit quarterly production reports and an End-of-Model Year corporate average report to CARB. |
40 CFR §1051.301-315.
40 CFR §1051.310)
40 CFR §1068.501
Section 207(a) of the Clean Air Act (42 U.S.C. 7541(a)) |
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| 34. Guarantee that product is not a violation of Patents |
Manufacturer must submit proof of their right to manufacture the product with guarantee that they are the legal owner of the design and rights to the product and that the product does not infringe on any patents or copywrite |
198 CFR 133.21
Tariff Act Section 337
Patent infringement in China |
| 35. Manufacturers Suggested Retail Price. |
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MSRP stipulations are regulated by State Governments |
| 36. Area Protection |
Different states have different laws that protect dealers from compitition that is too close. |
Regulated by individual State Laws |
| 37. Write Dealer Agreements |
Manufacturer must have a written dealer agreement that stipulates compliance with all the laws necessary to import and sell product. |
Required as part of the mandatory disclosures and requirements of Dealers representing or selling manufacturers product |
| 38. Offer a 24 hour hotline for consumers |
Must offer information about product safety, Warranty, Age restrictions, service centers, SAFE DRIVING PROGRAMS, replacement parts |
40 CFR 1068.520
ANSI/ SVIA 1–2007 |
| 39. Write Consumer Purchase Agreement |
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As part of the conumer data requirment, safety & age restriction disclosures. |
| 40. Required Customer Registration of Vehicle |
Must build an online database of all customers. Customer must register their vehicle from the dealership. Requred in the event of a safety recall. |
40 CFR 1068.520
ANSI/ SVIA 1–2007 |
| 41. Customer Service survey |
Must call each customer within 30 days of their purchase and ask questions about their experience. Must reiterate the importance of participating in a "SAFE RIDING COURSE" |
CPSIA H.R. 4040
News Behind the Law |
| 42. Write warranty procedure for Dealers |
Write a warranty procedure that stipulates everything a dealer needs to do when a vehicle is brought in for warranty issues. Must prepare a warranty checklist to be flollwed. |
40 CFR 1051.120
40 CFR §1068.501 |
| 43. Write Warranty – labor Times & rates |
For fair reimbursement of labor on warranty issues, all repair times must be stated and agreed to by the dealers as part of the dealer agreement. |
40 CFR 1051.120
As part of the required dealer warranty requirment |
| 44. Write Vehicle Assembly Checklist for Dealers |
Must write a step by step guide for poper assembly of the product. Dealer must sign each step and keep in records for 7 years. Dealer must send electronicly to Manufacturer within 48 hours of assembly |
As part of the required dealer training requirment |
| 45. Produce Vehicle Assembly Video for Dealers |
As part of the required dealer training, a video must be prepared that is available online to all dealers showing the steps necessary to properly assemble the prouduct. Must follow the steps of the assembly checklist. |
ANSI/ SVIA 1–2007
As part of the required dealer training requirment |
| 46. Must state steel strengths and guage |
chassis, a-arms - axles - roll cage - |
T.D. 53092, 55977 |
| 47. Write Service Manual for Engine |
Must be an orignial manual that discribes step by step how to repair every aspect of the engine. Must have illustrations and Stated times for each repair for warranty reimbursement purposes. Can not be a copy or will be in violation of copywrite law |
ANSI/ SVIA 1–2007
CFR §1051.125 |
| 48. Write service Manual for Vehicle |
Must be an orignial manual that discribes step by step how to repair every aspect of the vehicle. Must have illustrations and Stated times for each repair for warranty reimbursement purposes. Can not be a copy or will be in violation of copywrite law |
ANSI/ SVIA 1–2007 |
| 49. Write a safety sticker placement guide |
Submit stickers for pre approval |
CPSC
ANSI/ SVIA 1–2007 |
50. Provide Repair Manual for key componants
Make available replacement parts for the same |
Protects custoemrs from having to buy complete componants when they only need a part to fix the componant such as Differentials, Brake parts, CV Joints, Gearboxes, Master Cylinder, |
40 CFR 1051.120 |
| 51. Publish safety statistics on all vehicles |
Total Deaths - Total Injuries - Age Restrictions
Must be updated every 6 months |
ANSI/ SVIA 1–2007 |
| 52. Maintain a supplier parts management system |
A Database that keeps track of all supplier and Mid year changes in parts. |
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| 53. Write original owners manuals |
Must be an original manual or dealers and manufacturer can be sued for copywrite violation |
CFR §1051.125
40 CFR 1051.120 |
| 54. Must have written supplier agreements |
Suppliers required to test their products. Must randon check product quality and materials. Must keep records of spot checks. Suppliers must agree to supply individual parts to repair the products they supply |
Section 207(a) of the Clean Air Act (42 U.S.C. 7541(a)) |
55. Undercover monitoring Dealer inspections |
Undercover checks of 10% of dealers ea yr. |
Report Inspection results to CPSC |
| 56. Dealer Oversight program |
Written manual stipulating the steps the Manufacturer is taking to spot check dealers and guarantee they are in compliance. Must also stipulate discipline actions |
Required by CPSC |
| 57. Provide mandatory dealer training each year |
Must write the steps the manufacturer will take to provide annual training. Must show that dealer agreements require mandatory training. Must stipulate the consequense for non attendance. |
ANSI/ SVIA 1–2007 |
| 58. Provide dealer training for new dealers |
Must stipulate how the manufacturer will train new dealers, what training they will get before they can sell or import products. |
ANSI/ SVIA 1–2007 |
| 59. Write QC procedures and provide worker training |
Provide proof of training ea 6 months. Must be witnessed by a foreign represenative that will sign that the steps were taken |
ANSI/ SVIA 1–2007 |
| 60. Write Safety procedures for Factory |
Provide proof of training ea 6 months. Must be witnessed by a foreign represenative that will sign that the steps were taken |
ANSI/ SVIA 1–2007 |
61. Verify compliance for child labor laws at Factory |
Provide proof of compliance with the Child Labor Deterance ACT. Manufacturer must sign a declaration that they do not enguage in Child Labor Manufacturing |
Child Labor Deterance ACT |
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63. Safe Packaging testing |
Test plastic wraps, plastic bags, bubble wrap, tape cardboard and straps to warrant that they do not have |
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| 64. Drop Testing & Impact testing |
Manufacturer must test their packaging by drop testing to protect dealers and customers from recieving proudcts that are damaged during shipping. |
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65. Authority and Penalty of Government |
Gives the CPSC the authority to impose penalties of up to $2 million administratively (without need for federal court action) under CPSA, FHSA and FFA |
CPSC Section 2(b)
19 U.S.C. 1592 |
ADDITIONAL INOFRMATION
Fines can be up to 250,000.00 and 5 years in jail and everyone is being fined.
Manufacturers that make and sell illegal products
Dealers who display or sell illegal products
Customers that purchase illegal products
Magazines that advertise illegal products
Associations that promote illegal products
PENALTIES
DEALERS WHO HAVE BEEN FINED
SAFETY OR MARKETSHARE LOSSES
The Real Motivation Behind Legislation
ATV related Deaths by Year
ATV Safety Laws By State
California ATV Laws
ATV Recalls by Manufacturer
EPA Testing Facilities
ATV/OFMC Regulations
ANSI/ SVIA 1–2007
www.ATVSafety.gov
Import Safety Report Safe Importing Guide |
HOW DO YOU FILE AN ACTION PLAN
If you have been wondering what it takes to submit an acceptable action plan you are not alone. The problem is that to Manufacture and Import anything with a motor legally, requires more than submitting an action plan. The importing of motorcycles, atv’s scooters or UTV’s is regulated by 16 government agencies. The process is not intended to be easily understood. Each agency has a rule book that is over 1000 pages of reading.
We called many agencies trying to get a definitive response for what was required and each person we talked to gave us different information. Finally our legal team talked to an administrator that really simlified the process.
If you really want to know what is required, read the legal brief between
USA -V- Baja Motorsports.
This is a two year case by the US Government against the largest importer of China off-road vehicles ever. Baja Motorsports was the supplier for Costco and Pep Boys. They suffered fines of 5 million and several million more in the destruction of thousands of machines and the repair of thousand more that were no longer in compliance with EPA.
This case alone does more to assist anyone trying to understand the risks and liabilities of importing product from China into the United States. It's much more intensive than filing an action plan. |
WHO CAN HELP
If your company needs help understanding the complexities of the Action Plan and other USA laws that regulate exporters and import of foreign goods you can call our agency at: 435 275 5558 or email
ActionPlanHelp@Stimet.com
www.USA.gov
www.CBP.gov
Customs & Border Protection
www.EPA.gov
Environmental Protection Agency
www.CPSC.gov
Consumer Product Safety Commission
www.CPSIA.gov
Consumer Product Safety Improvement Act
Federal Hazardous Substances Act
www.ANSI.org
American National Standards Institute
www.USITC.gov
US International Trade Commission
www.ICE.gov
US Imigration & Customs Enforcement
www.commerce.gov
www.uspto.gov
US Patent & Trademark Office
www.NHTSA.gov
Nat Highway Traffic & Safety Association
Made in the usa
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