The bill, the Foreign Manufacturers Legal Accountability Act of 2010 (H.R. 4678), is “ill-advised” and may have adverse consequences on U.S. businesses, Marianne Rowden, AAEI president and chief executive officer, testified this week before the House Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection.
'Since enactment of the CPSIA (Consumer Product Safety Improvement Act of 2008), product safety has become an integral part of trade compliance,' Rowden said in her testimony. 'This new responsibility follows the trade community adopting new practices to enhance supply chain security after 9/11. Our experience over the last decade has been that regulating goods produced outside the United States requires a holistic risk management system; and, implementation of product safety legislation which would eliminate the need for H.R. 4678.'
Rowden added that if the bill is passed, similar requirements would be placed on U.S. companies exporting to foreign markets, which would interfere with expanding foreign markets.