What’s Trending In Compliance In February 2024

This blog was originally posted on 26th February, 2024. Further regulatory developments may have occurred after publication. To keep up-to-date with the latest compliance news, sign up to our newsletter.

At Compliance & Risks we help manufacturers, retailers and their supply chain partners to monitor and manage global regulations via C2P, our compliance knowledge management platform.

We break down some of the top compliance trends in February 2024 that are generating the most interest globally this month.

1. USA: Certificates of Compliance, Draft Rule, 88 FR 85760, December 2023

In December 2023, the United States Consumer Product Safety Commission (CPSC) issued a supplemental notice of proposed rulemaking to revise its rule for Certificates of Compliance. The Notice proposes to align the certificate rule with other CPSC rules on testing and certification. For imported CPSC-regulated products and substances, the proposal also aims to implement electronic filing of certificates (eFiling) with U.S. Customs and Border Protection for imported. 

The proposal aims to revise the rule for certificates codified at 16 CFR part 1110.

2. Turkey: Import Controls on CE Marked Products, Communiqué 2024/9

Published on 31 December 2023 by the Turkish Ministry of Trade, this Communiqué sets out the principles and procedures relating to the inspection at the import of products required to bear a CE marking so as to ensure their compliance with the Regulations listed in Annex 1.

Compared to the repealed Communiqué 2023/9, the new Annex 1 expands the list of products including arc lamps, chainsaws, clothes presses, cooker hoods, electric lawnmowers, electrical hair cutters, kettles, liquid crystal displays (LCD), milling machines, photovoltaic cells/solar panels, plasma display panels (PDP), projectors, vacuum cleaners, etc.

All transactions related to the import control of the products specified in Annex 2 and covered by the regulations in Annex 1 shall be carried out according to the Risk-Based Control System in Foreign Trade (TAREKS) risk analysis.

The imported goods within the scope of this Communiqué, in any case, must comply with all relevant legislation including the regulations listed in Annex 1.

According to the explanation of the Turkish Ministry of Trade: “A.TR is a document which is set for free circulation of goods in Turkey and the Community in order to benefit from preferential regime under Customs Union. It indicates that the good is in free circulation; it is not for the proof of its origin.”

According to Article 6(2), the procedures and principles for the arrangement and subsequent control of the exemption letter within this scope are determined by the Ministry of Industry and Technology. In the event that an illegal document is uploaded to TAREKS instead of the production input exemption letter or it is determined that the exemption has been used improperly, the exemption letter will not be issued to the company for a period to be determined by the Ministry of Industry and Technology and the existing exemption letter will be canceled.

According to Provisional Article 1, upon importer’s request, until 29 February 2024 (inclusive), importation of the products for which a movement certificate was issued to be shipped out to Turkey for export purposes in the country of origin before 1 January 2024 or products that were submitted to customs authorities in accordance with customs legislation may be carried out in according to Import Controls on CE Marked Products, Communiqué 2023/9.

Provisions of this Communiqué shall not be applied until 29 February 2024 (inclusive) for the imports of products within the scope of GTİP which are specified in Annex 1 but not specified in Annex 2 of the Import Controls on CE Marked Products, Communiqué 2023/9.

This clause does not apply to GTİP’s that differ due to the changes made in the Turkish Customs Tariff Schedule Divided into Statistical Positions.

The Communiqué entered into force on 1 January 2024. 

3. China: Industrial Restructuring Guidance Catalogue (2024 Version), Order No. 7, 2023

On 29 December 2023, the Chinese National Development and Reform Commission (NDRC) published an Order approving the 2024 version of the Catalogue on Industry Restructuring. The Catalogue supersedes the 2019 version of the same and entered into force on 1 February 2024.

The new Catalogue implements the new priorities and requirements of industrial development and encourage the construction of a modernized industrial system. More specifically, it provides guidance for directing investments, including government investment projects, and policies in favor of more sustainable, “green” technologies, high-tech and high-quality industry.

Similar to the 2019 version, the Catalogue applies the same categories of “encouraged”, “restricted” and “obsolete” industries. These categories can be summarized as follows:

1. Encouraged – technologies, equipment and products that are crucial for promoting the economic and social development of industries;
2. Restricted – outdated technologies, equipment and products which are not compatible with industry access conditions and relevant regulations, considered unsafe for production and demanding in terms of natural resources;
3. Obsolete/Phased out – backward process technologies, equipment and products that do not comply with regulations and pose environmental hazards and risk of pollution, etc. 

The Catalogue sets out the following policy goals:

• Continuously encourage the high-end, intelligent and green manufacturing industry through technological innovation, improvement of energy efficiency, carbon reduction and green transformation;
• Accelerate the transformation and upgrade of traditional industries, increase the capacity for advanced production and effectively expand high-quality supply;
• Strengthen security practices in key industries and conduct scientific and technological research of the industries; 
• Establish a new system with integrated development of advanced manufacturing and modern service industries to promote research and development.

4. Kentucky (USA): Establishing Reporting Requirements for Manufacturers of Products Containing Intentionally-Added PFAS, House Bill 116, January 2024

Proposed on 3 January 2024, this Kentucky House Bill creates a new section of the KRS Chapter 211 to establish a Per- and Polyfluorinated Alkyl Substances (“PFAS”) Working Group to research the effects that exposure to PFAS has on health outcomes in the state. It also creates new sections of Subchapter 10 of KRS Chapter 224 to add the definitions of terms such as “consumer product,” “intentionally added,” “PFAS,” “product component,” and “wastewater treatment facility”‘. 

The bill proposes to establish a reporting requirement for manufacturers that intentionally include PFAS in products manufactured for sale or distribution in Kentucky, as well as a duty to report PFAS releases in the state by manufacturers that intentionally include PFAS in manufactured products.

5. UK: Product Safety and Metrology etc. (Amendment) Draft Regulations, January 2024

Earlier in August 2023 the UK Department for Business and Trade (DBT) had announced plans to extend CE recognition indefinitely for certain products.

Now on 26 January 2024, the UK Department for Business and Trade (DBT) notified the WTO of the draft Product Safety and Metrology etc. (Amendment) Regulations 2024 to provide businesses with the flexibility to continue to place goods that meet current EU requirements, including the CE marking, on the market in Great Britain. This will apply to most manufactured products and this approach will cover 21 product regulations. 

This legislation relates to consumer safety and health and safety and sets out the requirements that products must meet in order to be placed on the market in Great Britain.

The amendments made to each of these pieces of legislation revoke provision in each piece of legislation that sets out the expiry of provisions which themselves allow for obligations to be met in the legislation as it applies in Great Britain to be met by complying with requirements of the corresponding EU law. With the exception of the Measuring Container Bottles (EEC Requirements) Regulations 1977, they replace this provision allowing for relevant economic operators to meet any conformity assessment or testing requirements in the legislation as it applies in Great Britain to be met by complying with the corresponding EU conformity assessment or testing requirements. 

The legislation will provide businesses with greater flexibility to continue to place products on the market in Great Britain using either CE or UKCA Marking after 31 December 2024. In Northern Ireland, the CE mark is and will remain recognized, pursuant to the Windsor Framework.

The UK government will also introduce new measures to introduce a ‘Fast track UKCA’ process, allowing manufacturers to use the UKCA marking to demonstrate compliance, in Great Britain, with either UKCA product requirements or EU product requirements where they are recognized. Where products are covered by multiple regulations, a mixture of both UKCA and CE conformity assessment procedures can be used.

This Draft Regulation is proposed to be adopted in April 2024 and enter into force on 1 October 2024.

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The top compliance trends in February 2024 is based on the most viewed regulations on C2P this month. If you would like to see C2P in action, join us for a bite-sized high-level demo to witness the true power behind C2P.

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