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116th Congress   }                                            {    Report
                         HOUSE OF REPRESENTATIVES
 2d Session      }                                            {   116-537

======================================================================



 
           CONSUMER PRODUCT SAFETY INSPECTION ENHANCEMENT ACT

                                _______
                                

 September 24, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Pallone, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 8134]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 8134) to support the Consumer Product Safety 
Commission's capability to protect consumers from unsafe 
consumer products, and for other purposes, having considered 
the same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Committee Hearings...............................................3
 IV. Committee Consideration..........................................4
  V. Committee Votes..................................................4
 VI. Oversight Findings...............................................4
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures4
VIII.Federal Mandates Statement.......................................5

 IX. Statement of General Performance Goals and Objectives............5
  X. Duplication of Federal Programs..................................5
 XI. Committee Cost Estimate..........................................5
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......5
XIII.Advisory Committee Statement.....................................5

XIV. Applicability to Legislative Branch..............................5
 XV. Section-by-Section Analysis of the Legislation...................5
XVI. Changes in Existing Law Made by the Bill, as Reported............7

                         I. PURPOSE AND SUMMARY

    H.R. 8134, the ``Consumer Product Safety Inspection 
Enhancement Act'', was introduced on August 28, 2020, by 
Representatives Jan Schakowsky (D-IL) and Jeff Duncan (R-SC) 
and was referred to the Committee on Energy and Commerce. H.R. 
8134 directs the Consumer Product Safety Commission (CPSC) to 
enhance its ability to identify unsafe consumer products 
entering the United States, especially e-commerce shipments 
entering under the de minimis value exemption. The bill also 
requires the CPSC to hire not less than 16 employees and add 
staffing every year until needs are met to identify violative 
products at ports and to complete a study and report on the 
CPSC's efforts and needs to effectively stop violative products 
from entering the United States.

                II. BACKGROUND AND NEED FOR LEGISLATION

    The CPSC import surveillance program is a key component of 
the focus by CPSC on prevention--stopping hazardous products 
from reaching consumers.\1\ Imports represent slightly more 
than half of all available consumer products in the U.S. and 
three out of four consumer products identified as 
noncompliant.\2\ The agency's import surveillance program was 
established following the enactment of the Consumer Product 
Safety Improvement Act (CPSIA) of 2008 on August 14, 2008.\3\ 
As required by section 222 of the CPSIA, the CPSC developed a 
targeting system called Risk Assessment Methodology (RAM) to 
target and prioritize for inspection shipments likely to 
contain violative consumer products.\4\ In addition, CPSC 
compliance inspectors work side-by-side with U.S. Customs and 
Border Patrol (CBP) staff at ports of entry to identify and 
block shipments containing violative consumer products.\5\
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    \1\U.S. Consumer Product Safety Commission, Fiscal Year 2021 
Performance Budget Request to Congress (Feb. 10, 2020) (www.cpsc.gov/
s3fs-public/FY-2021-Congressional-Justification.pdf).
    \2\Id.
    \3\U.S. Consumer Product Safety Commission, CPSC e-Commerce 
Assessment Report (Nov. 2019) (www.cpsc.gov/s3fs-public/CPSC-e-
Commerce-Assessment-Report.pdf).
    \4\Consumer Product Safety Improvement Act of 2008, Pub. L. No. 
110-313.
    \5\U.S. Consumer Product Safety Commission, About the Office of 
Import Surveillance (www.cpsc.gov/Imports).
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    Currently, CPSC inspectors are present at only six percent 
of U.S. ports and concentrated only at seaports that receive 
large, high-value shipping containers.\6\ In 2019, only 19 
ports in the U.S. had any kind of CPSC presence.\7\
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    \6\See note 1; See note 3.
    \7\See note 1.
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    E-commerce shipments, however, generally enter the U.S. 
through airports, express consignment carrier facilities, and 
international mail facilities where the CPSC has virtually no 
presence.\8\ E-commerce spending has risen steeply in recent 
years and the coronavirus disease of 2019 (COVID-19) pandemic 
has further accelerated the trend towards online shopping. A 
CPSC report issued in November 2019 estimated that by 2023, the 
number of e-commerce shipments will reach 60 million, 
representing 57 percent of the total volume of imports under 
the agency's jurisdiction.\9\
---------------------------------------------------------------------------
    \8\See note 3.
    \9\Id.
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    In addition to the staffing constraints, the CPSC lacks the 
data it needs to effectively risk assess and target e-commerce 
shipments entering the U.S. under the de minimis value 
exemption. De minimis shipments may evade scrutiny as they 
enter the U.S. because they are exempt from the extensive entry 
data normally required for higher-valued shipments and that are 
needed by the CPSC to effectively risk assess.\10\ The 
exemption limit was quadrupled to $800 under the Trade 
Facilitation and Trade Enforcement Act of 2015, greatly 
increasing the number of shipments qualifying for the 
exemption.\11\ Another challenge is that the CPSC does not have 
access to real-time manifest data.\12\ Manifest data, which is 
required on all shipments regardless of value, provide some 
data on the nature of a shipment and could be used by CPSC to 
risk assess e-commerce shipments entering under the de minimis 
value exemption if provided to the agency in real-time.\13\
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    \10\19 C.F.R. Sec. 10.151; 19 C.F.R. Sec. 10.153; U.S. Customs and 
Border Protection, Entry Summary (July 2, 2019) (www.cbp.gov/trade/
programs-administration/entry-summary).
    \11\19 U.S.C. Sec. 1321.
    \12\See note 3.
    \13\Id.
---------------------------------------------------------------------------
    The CPSC also has limited access to intellectual property 
rights (IPR) seizure data.\14\ Many products that have IPR 
violations also have consumer product safety violations, so 
access to such data could help the CPSC better target products 
likely to have consumer safety violations.\15\ A 2018 CPSC 
study also found that electronic filing of certificates of 
compliance before import would allow the CPSC to refine its 
ability to risk assess and target shipments for inspection.\16\ 
The availability of a product's certificate of compliance is 
strongly associated with the product's compliance.\17\ 
Currently, importers only need to file certificates of 
compliance 24 hours before a product's arrival, limiting their 
utility for risk assessment purposes. The CPSC could also 
benefit from enhanced integration with the targeting systems of 
other system participants, such as express couriers and 
international mail facilities.
---------------------------------------------------------------------------
    \14\Id.
    \15\Id.
    \16\U.S. Consumer Product Safety Commission, eFiling Certificate of 
Compliance Study Assessment (Aug. 28, 2018) (www.cpsc.gov/s3fs-public/
eFiling-Certificate-Study-Evaluation-Report-FINAL.pdf).
    \17\Id.
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    The CPSC currently lacks the staffing, data, and IT 
infrastructure necessary to effectively target and inspect 
products entering the U.S., especially e-commerce shipments 
entering under the de minimis value exemption.\18\ H.R. 8134 is 
needed to enhance the ability of the CPSC to stop unsafe 
shipments from entering the U.S. and to refocus the 
Commission's efforts to also protect consumers from the rapidly 
increasing number of e-commerce shipments entering under the de 
minimis value exemption. In addition to protecting American 
consumers from unsafe consumer products, an expanded and 
enhanced import surveillance program will also protect 
manufacturers and retailers from having to carry out costly 
recalls.
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    \18\See note 3.
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                        III. COMMITTEE HEARINGS

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearing was used to develop or 
consider H.R. 8134:
    The Subcommittee on Consumer Protection and Commerce held 
an informational hearing on March 4, 2020. The hearing was 
entitled, ``Buyer Beware: Fake and Unsafe Products on Online 
Marketplaces.'' The Subcommittee received testimony from the 
following witnesses:
       Dharmesh Mehta, Vice President of Worldwide 
Customer Trust and Partner Support, Amazon
       Amber Leavitt, Associate General Counsel and 
Head of IP, eBay
       Jeff Myers, Senior Director for Intellectual 
Property, Apple
       Andrew Love, Head of Brand Security/
Investigations/Global Enforcement, Specialized Bicycles
       David Friedman, Vice President, Advocacy, 
Consumer Reports
       Lori Wallach, Director, Global Trade Watch, 
Public Citizen.

                      IV. COMMITTEE CONSIDERATION

    H.R. 8134, the ``Consumer Product Safety Inspection 
Enhancement Act'', was introduced on August 28, 2020, by 
Representatives Schakowsky (D-IL) and Duncan (R-SC) and was 
referred to the Committee on Energy and Commerce. It was then 
referred to the Subcommittee on Consumer Protection and 
Commerce on August 31, 2020. A hearing on the bill was held on 
March 4, 2020, prior to the bill's introduction.
    On September 9, 2020, the Subcommittee on Consumer 
Protection and Commerce was discharged from further 
consideration of H.R. 8134, as the full Committee on Energy and 
Commerce called the bill up for consideration. The full 
Committee met in virtual open markup session on September 9, 
2020, to consider H.R. 8134. There were no amendments offered 
to the bill and the Committee then agreed to a motion on final 
passage by Mr. Pallone, Chairman of the committee, to order 
H.R. 8134, reported favorably to the House, without amendment, 
by a voice vote, a quorum being present.

                           V. COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were no record votes taken on H.R. 
8134, including the motion on final passage by Mr. Pallone.

                         VI. OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

 VII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

                    VIII. FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

       IX. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to enhance 
the ability of the Consumer Product Safety Commission to 
identify unsafe consumer products entering the United States, 
especially shipments entering under the de minimis value 
exemption.

                   X. DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 8134 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

    XII. EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 8134 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                   XIII. ADVISORY COMMITTEE STATEMENT

    No advisory committee within the meaning of section 5(b) of 
the Federal Advisory Committee Act was created by this 
legislation.

                XIV. APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

           XV. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 designates that the short title may be cited as 
the ``Consumer Product Safety Inspection Enhancement Act''.

Sec. 2. Enhanced risk assessment methodology

    Section 2 amends the Consumer Product Safety Act to add a 
new subsection establishing an enhanced risk assessment 
methodology. Paragraph (1) of this subsection requires the 
Consumer Product Safety Commission (CPSC), not later than 18 
months after the date of enactment, to enhance the targeting, 
surveillance, and screening of consumer products entering the 
U.S. at ports of entry, including ports of entry for de minimis 
shipments, by working in consultation with U.S. Customs and 
Border Protection to (1) access and leverage all available 
data, including manifest data and intellectual property rights 
seizure data; (2) prioritize shipments coming from the People's 
Republic of China; and (3) use the Participating Government 
Agencies Message Set and additional consumer product specific 
data elements. This paragraph also requires the Commission to 
build and improve its information technology system to support 
electronic access to and connection with the data and targeting 
systems of applicable system participants.
    Paragraph (2) of this subsection further requires, not 
later than two years after the date of enactment, the 
electronic filing of certificates of compliance for all 
consumer products entering the United States.
    Paragraph (3) of this subsection defines terms used in the 
subsection, including ``de minimis shipments'', ``express 
consignment carrier facility'', ``ports of entry for de minimis 
shipments'', and ``violative consumer products''.

Sec. 3. Additional CPSC surveillance personnel at key ports of entry 
        for de minimis shipments

    Section 3 requires the CPSC to hire not less than 16 full-
time equivalent (FTE) personnel for the purpose of identifying, 
assessing, and addressing shipments of violative consumer 
products at ports of entry, and shall add additional staffing 
every year until staffing needs are met, as identified by the 
CPSC in the report to Congress required in section 4.

Sec. 4. Report to Congress

    Section 4 requires the CPSC to transmit to Congress, and 
make publicly available, a study and report assessing the risk 
to consumers associated with the targeting and screening of de 
minimis e-commerce shipments, not later than 18 months after 
the date of enactment. Subsection (b) of this section specifies 
that the CPSC shall (1) examine a sampling of de minimis 
shipments and shipments coming from the People's Republic of 
China; (2) detail plans and timelines to effectively address 
targeting and screening of de minimis shipments; (3) establish 
metrics by which to evaluate the effectiveness of the efforts 
of CPSC in this regard; and (4) assess projected technology, 
resources, and staffing necessary.

Sec. 5. Definitions

    This section defines terms used throughout the bill, 
including the terms ``de minimis shipments'', ``ports of entry 
for de minimis shipments'', ``violative consumer products'', 
``electronic commerce platform'', and ``express consignment 
carrier facility''.

Sec. 6. Savings clause

    This section provides that nothing in this Act shall be 
construed to limit, affect, or conflict with any other 
authority of the CPSC or any other statutory requirements 
governing the CPSC.

       XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    There were no changes made in existing law by H.R. 8134, as 
reported.