Imports: Where the buck stops
Ray Allelgrezza, Editor in chief -- Furniture Today, February 25, 2007
Most of us know that a retailer listed as the importer of record of wooden bedroom furniture made in China can have exposure for any associated antidumping duties. However, a lesser-known fact is that retailers who import directly also are required to comply with the same safety standards and requirements as a domestic manufacturer.
In a nutshell, if you direct-import an offshore product into your store and there are problems, you very likely not only own the product, you also own the problem.
That was confirmed last week in a letter from the U.S. Consumer Products Safety Commission that said, "The statutes are clear that any person who manufactures or imports a consumer product that is introduced or delivered for introduction into interstate commerce is required to comply with the same requirements under the standards and regulations promulgated by the Commission as a domestic manufacturer, including all applicable compliance procedures, record-keeping and reporting requirements."
The letter went on, "As reflected in the final mattress flammability standard, the requirements for importers were explicitly set forth in the regulations to make sure that importers understood that they are subject to the same requirements of the standard as domestic manufacturers."
That prompted one major supplier to say, "Dealers who are only seeking lowest cost are setting themselves up for serious problems."
Retailers, he stressed, need to make sure the products they bring in are in compliance with current safety standards: "For example, do the products meet TB117 flammability standards? Do they meet the Montreal Protocol?"
The protocol, by the way, comes from a 1989 international treaty designed to protect the Earth's ozone layer. Retailers selling products that don't comply with the protocol face a 7% tax.
The supplier rattled off a list of other things he said retailers need to consider: Does the wood being used meet formaldehyde emission standards? Are the fabrics UFAC compliant? Are any ingredients used in finishing likely to be harmful or toxic? Are you buying the proper density of foam in order to avoid warranty issues down the road?
Forewarned is forearmed. In the race to make a buck, keep in mind the buck could stop with you.
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