CPSC Finalizes Ban on Certain Children’s Toys and Child Care Articles

On October 27, 2017, the U.S. Consumer Product Safety Commission (“CPSC”) issued a final rule prohibiting children’s toys and child care articles that contain concentrations of more than 0.1 percent of certain phthalates.

What’s Prohibited

The final rule states children’s toys and child care articles containing concentrations of more than 0.1 percent of diisononyl phthalate (“DINP”), diisobutyl phthalate (“DIBP”), di-n-pentyl phthalate (“DPENP”), di-n-hexyl phthalate (“DHEXP”), and dischyclohexyl phthalate (“DCHP”) are prohibited.

Section 108 of the Consumer Product Safety Improvement Act (“CPSIA”) prohibits the manufacture for sale, offer for sale, distribution in commerce, or importation into the U.S. of any children’s toy or child care article that contains these concentrations of certain phthalates.  Children’s toys include consumer products designed or intended by the manufacturer for a child 12 years or younger for use by the child when the child plays.  A child care article is a consumer product designed or intended by the manufacturer to facilitate sleep or the feeding of children age 3 and younger, or to help such children with sucking or teething.

Continue Reading

Your Guide to Supply Chain Sustainability

Putting supply chain sustainability at the forefront is not only ethically sound, it is essential for an organisation’s value and long-term profitability.  Supply chain sustainability is the increasing practice of monitoring and guiding suppliers to ensure the business’ sustainability values are honored.  In an era where information on businesses’ ethical practices are readily available, customers are holding companies accountable for their suppliers’ social and environmental impact.

In their article on LexisNexis, Simon Garbett, Ian Skinner and Sarah Rathke provide a guide on how organisations can create and implement an effective supply chain sustainability programme tailored to their business, ensure proper focus on human rights and environmental concerns, combat corruption, and mitigate risks.  The article also sets forth where to look for guidance on best practices and ways to partner with non-governmental organisations for assistance.

The article, “Supply chain sustainability,” can be accessed on LexisNexis here.

Those without a LexisNexis subscription may reach out to me via email to obtain access to the article.

FOB: You Keep Using That Word. I Do Not Think It Means What You Think It Means

Our own Ketan Ganase recently wrote about Predictability Through Incoterms. One important precondition to achieving that predictability is making sure that you are using terms correctly. This is especially true for “FOB,” a term that can mean different things in different contexts. Continue Reading

Predictability Through Incoterms

Expanding your business beyond the borders and perceived safety of your own country may be a frightening prospect full of uncertainties, but in today’s global marketplace, it often is the only option available to stay competitive.

The nature of cross-border business is such that a lot can be lost in (miss)translation. Parties to international transactions will often speak different languages, employ different trade practices, rely on divergent business customs or any other of the plethora of cultural hodgepodges that one finds on the blue planet.

Consequently, uniformity in trade terminology can be hard to come by, leading to uncertainty in the operational language of a contract and a divergence in the expectations of parties to a transaction. Continue Reading

NAFTA Re-Negotiation: How Safe Are Your Contracts?

The North American Free Trade Agreement has brought massive changes to supply chains throughout the United States, Mexico and Canada over the past 23 years. Now, for the first time, the United States has an anti-NAFTA administration, which is moving forward on its campaign promise to re-negotiate the agreement. The details are far from final, but some of the proposals on the table should concern anyone involved in negotiating supply contracts. Continue Reading

Arming the Supply Chain

In an effort to bolster his “Buy American” agenda, President Trump and his administration are taking the first steps in allowing for a more lenient oversight of American gun makers to sell non-military small arms and ammunition to foreign buyers. When complete, this plan would shift the oversight of non-military firearm sales from the State Department to the Commerce Department, easing the restrictions on exportation and, in theory, help bolster a recessed industry.

As things currently stand, all forms of weaponry – everything from small recreational shooting range pistols and hunting rifles to fighter jets and surface to air missiles– are covered by the United States Munitions List promulgated by the Department of State., set forth at 22 C.F.R. 121.1.

Continue Reading

War on Drugs Targets the Supply Chain

The opioid epidemic has reached alarming new heights and states are looking down the pharmaceutical supply chain to share the blame – and the cost.

Multiple states have sued the pharmaceutical companies for recovery of government costs associated with addressing addiction.  In 2007, Purdue Pharma settled with 26 states and the District of Columbia for $19.5 million over allegations involving the drug, OxyContin.

No longer targeting just the manufacturers of the drugs, however, states are now seeking liability from distributors as well.  On September 7, 2017, New Mexico filed suit against pharmaceutical companies (Purdue Pharma LP, Johnson & Johnson, Allergan Plc, Endo International Plc and Teva Pharmaceuticals Industries Ltd.) and pharmaceutical wholesale distributors (McKesson Corporation, Cardinal Health Inc. and AmerisourceBergen Drug Corporation).  The claims against the wholesale distributors allege breach of their legal duties to monitor, detect, investigate, refuse and report suspicious orders of prescription opioids.

Continue Reading

Mother Nature Is Tough – How About Your Contracts?

The news from Texas over the last few days has reminded us that a single storm can flood entire cities, shut down factories, cut off warehouses, wash trucks off the road, close airports, and essentially bring an entire supply chain to a screeching halt.

What happens to supply contracts then? There is law on this point, but law alone is not always helpful. Continue Reading