August 2021 Regulatory Update

On 16 July 2020, the Commission published a Notice of Proposed Rulemaking (“NPRM”) (85 FR 43162) seeking comments on a new rule regarding unqualified U.S.-origin claims (“MUSA claims”) on product labels.

After collecting public comments, the FTC published a new rule on 14 July 2021 to the extent any person introduces, delivers for introduction, sells, advertises, or offers for sale in commerce a product with a “Made in the U.S.A.” or “Made in America” label, or the equivalent thereof, in order to represent that such product was in whole or substantial part of domestic origin, such label shall be consistent with decisions and orders of the FTC.

The rule is published pursuant to the FTC’s authority under 15 U.S.C. 45a, where the statute authorizes the agency to issue rules to effectuate this mandate and prevent unfair or deceptive acts or practices relating to U.S. – origin claims (“MUSA claims”).

The final rule is prohibiting marketers from including unqualified U.S. origin claims on labels unless:

1. Final assembly or processing of the product occurs in the United States,
2. All significant processing for the product occurs in the United States, and
3. All or virtually all of the product’s ingredients or components are made and sourced in the United States.

The rule also covers labels making unqualified MUSA claims appearing in mail order catalogues or mail order advertising.

On 1 July 2021, California’s Department of Toxic Substances Control (DTSC) adopted carpets and rugs containing per- or polyfluoroalkyl substances (PFAS) as a Priority Product in accordance with the process identified in Article 3 of the Safer Consumer Products (SCP) regulations.

Carpets and rugs refer to any consumer product made from natural or synthetic fabric intended to be used as a floor covering inside commercial or residential buildings that contains any member of the class of perfluoroalkyl and polyfluoroalkyl substances (PFAS). This includes carpeted door mats, but excludes floor coverings, wall items, table mats, vehicular or outdoor articles, camping sleeping mats and synthetic turf.

As priority products, the carpets and rugs manufacturers whose products contain any PFAS must submit the following documents:

1. A priority product notification (PPN) specifying each product by 30 August 2021. The PPN must name all the products that contain PFAS and are sold in California.
2. One of following documents by 28 December 2021:
• a chemical removal intent/confirmation notification
• a product removal intent/confirmation notification
• a product-chemical replacement intent/confirmation notification
• a Preliminary alternatives analysis report or alternative reporting options

The above action is not needed for the carpets and rugs manufacturers whose products do not contain any PFAS.

PFAS are a large family of thousands of man-made chemicals that are widely used throughout society. These chemicals are an increasing concern as they are resistant to degradation in the environment, very mobile, toxic and can bioaccumulate. To minimize environmental and human exposure to PFAS, in addition to the states of Washington, Maine and New York, the states of Connecticut, Minnesota, Michigan and Massachusetts have published their Bills to ban PFAS in food packaging.

The below table highlights these Bills.

Food packaging means ‘any package or packaging component that is applied to or in direct contact with any food or beverage’.

This ground-breaking law would require notification on products for sale in the State of Maine that contain intentionally added PFAS beginning 1 January 2023. The content of the notification includes a brief description of product, the purpose of using PFAS, the amount of each PFAS, and so on. When the inventory is developed, the state government will identify and prioritize the product categories for sale prohibition where the likelihood to cause contamination of the state’s land or water resources might be a key factor.

The below table summarizes the prohibitions in this law.

SOR/2021-148 regulates formaldehyde emitted from composite wood panels (including hardwood plywood, particleboard, medium-density fibreboard, and thin medium-density fibreboard), laminated product and finished goods containing them. This new Canadian law basically mirrors the similar law in the US called, “Formaldehyde Emission Standards for Composite Wood Products” (Toxic Substances Control Act (TSCA) Title VI).

Noteworthy points within the regulations, include but are not limited to, those listed below:

• Testing and certification of composite wood panels and laminated product by approved laboratories and third-party certifiers using the same formaldehyde emission standards as in the US Toxic Substances Control Act (TSCA) Title VI
• A list of products that are not applicable to this regulation including curved plywood, finger-jointed lumber, hardboard, and so on
• The manufacturer of composite wood panels is only required to produce a declaration of certification for a product type, under certain circumstances, such as when the manufacturer has documents to demonstrate the composite wood panel type is certified under TSCA Title VI
• Labelling in the form of a stamp, tag, or sticker on the applicable composite wood panels, laminated products, and the finished goods in English and French unless its largest surface is less than or equal to 929 cm2 (144 in2) which is the same as TSCA Title VI

*Other Hazards include Laceration Hazard, Poisoning Hazard, Fall Hazard, Entrapment Hazard and Crushing Hazard with a frequency of less than 2.

*Other Categories include Chemicals, Home Electrical Appliances, Toys and Childcare Products and Footwear with a frequency of less than 2.

For a complete list click here

*Other Hazards include Laceration Hazard, Suffocation Hazard, Chemical Hazard, Choking Hazard and Crushing Hazard with a frequency of less than 2.

*Other Categories include Household Electrical Appliances, Sporting Goods / Equipment, Bodycare / Cosmetics, Footwear and Electrical Appliances with a frequency of less than 2.

For a complete list click here

The purpose of the amendment is to provide new eco-design and energy labeling requirements for certain energy-related products put on the market in the UK.

The regulation updates existing Eco-design requirements to increase the minimum energy performance and to set material efficiency for:

• Dishwashers;
• Washing machines and dryers;
• Fridges and freezers;
• Televisions and other electronic displays for home use.

For appliances used by businesses, the rules also apply to electric motors, vending machines, retail fridges and freezers, power transformers and welding equipment.

The UK Eco-design Regulation also sets higher energy-efficiency standards for electrical products in line with European Union requirements and introduces energy labelling requirements for commercial refrigeration.

Manufacturers, retailers, and consumers will be impacted by this Regulation.

In the new SFS 2021:676, section 24 states market control shall be exercised by the authority or authorities determined by the Government. Provisions on market surveillance are contained in the Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019 on market surveillance and conformity of products and amending Directive 2004/42/EC and Regulations (EC) No 765/2008 and (EU) No 305/2011.

Furthermore, a market control authority has the power to decide the measures under Regulation (EU) 2019/1020, in the original wording:

1. To require documents, specifications, data or information in accordance with Article 14(4)(a) and 14(4)(b),
2. To gain access to premises, land or means of transport in accordance with Article 14(4)(e), and
3. To procure, inspect and dismantle samples of goods in accordance with Article 14(4)(j).

Manufacturers / importers who bring products to the market that are non-conforming to corresponding regulations may incur a fine, unless deemed unnecessary for special reasons.

Originally, entry 68 to REACH Annex XVII restricted PFOA, its salts and PFOA-related substances. However, it was removed from the REACH regulation and included in the restriction by EU Persistent Organic Pollutants (POPs) Regulation (EU) 2019/1021 in 2020.

Linear and branched perfluorocarboxylic acids containing 9 to 14 carbon atoms in the chain (‘C9-C14 PFCAs’), their salts and C9-C14 PFCA-related substances can occur as an unintended by-product during the manufacture of perfluorinated and polyfluorinated substances containing a carbon chain of less than nine carbon atoms, such as perfluorooctanoic acid (PFOA). Furthermore, as PFOA is restricted, it is possible to begin to see C9-14 PFCAs used to replace PFOA. Thus, Commission Regulation (EU) 2021/1297 is published to include the restriction on these chemicals.

Remark:

1. C9-C14 PFCAs including their salts: Linear and branched perfluorocarboxylic acids of the formula CnF2n+1-C(= O)OH where n = 8, 9, 10, 11, 12, or 13;
2. C9-C14 PFCA-related substance, including their salts:
• Any C9-C14 PFCA-related substance including their salts having a perfluoro group with the formula CnF2n+1- directly attached to another carbon atom, where n = 8, 9, 10, 11, 12, or 13
• Any C9-C14 PFCA-related substance including their salts having a perfluoro group with the formula CnF2n+1- that is not directly attached to another carbon atom, where n = 9, 10, 11, 12, 13 or 14 as one of the structural elements
• The following substances are excluded
1. CnF2n+1-X, where X = F, Cl, or Br where n = 9, 10, 11, 12, 13 or 14, including any combinations thereof,
2. CnF2n+1-C(= O)OX' where n> 13 and X'=any group, including salts;
3. There are several derogations on the requirement
For More Information About This Story:
Contact: Andy Choi (Senior Manager)
Phone: (852) 3185 8045
Email: regulatoryupdates@qima.com

Under the Commission Regulation (EU) 2021/1199, the scope of the restriction in entry 50 to REACH Annex XVII for 8 PAHs is now expanded to granules or mulches used as infill material for specific applications. The below table summarizes the new updates. Other restriction applications for the 8 PAHs in entry 50 remain unchanged.

* For granules or mulches placed on the market for usage as specified in the scope

*Other Hazards include Entrapment Hazard, Damage to Hearing, Suffocation Hazard and Fire Hazard with a frequency of less than 4.

*Other Categories include Food Contact Material, Home Electrical Appliances, Household Items, Footwear and Tools and Hardware with a frequency of less than 8.

*Other Countries include Denmark, Latvia, The Netherlands, Czechia, Norway, Ireland, Poland, Slovakia, Austria, Spain, Italy, Croatia, Luxembourg and Romania with a frequency of less than 8.

For a complete list click here

*Other Hazards include Strangulation Hazard, Scalding Hazard, Fire Hazard, Suffocation Hazard, Chemical Hazard and Electric Shock Hazard with a frequency of less than 2.

*Other Categories include Pharmacy, Furniture, Tools and Hardware and Jewellery with a frequency of less than 2.

For a complete list click here

The purpose of the regulatory updates was to:

1. Increase the basic safety technical requirements on children's products to comply with the provisions of GB 31701;
2. Change the grades to excellent, first-class and qualified;
3. Delete the requirements for color fastness of printing parts and hanging dyeing products.

The main modified contents are as follows:

For more details, please refer to the standards of FZ/T 73018-2021 and FZ/T 73005-2021.

*Other Hazards include Entanglement Hazard, Suffocation Hazard and Fall Hazard with a frequency of less than 2.

*Other Categories include Household Items, Toys and Childcare Products, Sporting Goods / Equipment, Protective Equipment, Fabric / Textile / Garment / Home Textile and Furniture with a frequency of less than 2.

For a complete list click here