January Reporting Deadline for Vermont CDP Fast Approaching

January Reporting Deadline for Vermont CDP Fast Approaching

In 2014, the Vermont General Assembly passed Act 188 on the regulation of toxic substances as part of the Chemical Disclosure Program (CDP).

With the first reporting deadline for the CDP on January 1, 2017 fast approaching, manufacturers of children’s products must report to the Vermont Department of Health (DoH) if they currently sell goods in the state containing one or more chemicals of high concern to children (CHCC).

There are 66 CHCCs listed in the statute, which is updated every two years. Included on the list are chemicals such as Formaldehyde, Bisphenol A (BPA), and Styrene. Some of these chemicals may have been added to a product to serve a particular function, however, they may also be present as unintended contaminants. It is essential for companies to fully understand the composition of their products using a thorough supply chain analysis. Without this, it will be difficult for companies to meet the requirements of the January reporting deadline.

Who Is in Scope?

All manufacturers of children’s goods (as defined by the state) offered for sale in Vermont are required to report if their products contain any CHCCs. This  includes manufacturers making sales in Vermont over the internet. In this case, a manufacturer is considered to be any entity whose name is associated with the product in question, and who maintains a physical presence in the U.S. For goods produced by manufacturers without a physical U.S. presence, the entity selling the product in Vermont is understood as the manufacturer and must therefore report under Act 188 on or before January 1,2017.

In this way, the manufacturer required to report does not necessarily have to be the fabricator of the product, but could simply be the entity that assembles or imports it for sale in the U.S. The reporting requirement does not apply for products given away for free in the state of Vermont, and there are a number of product exceptions which can be found on the DoH’s webpage. Companies or manufacturers in scope should note only one entity needs to provide a report with respect to a specific product, rather than all entities involved in the sale of the product in question.

What Are Manufacturers Required to Do?

If a manufacturer is in scope of the regulation, they should use the online reporting system available on the Vermont DoH website. The reporting entity will be required to create a profile on the system and fill out a reporting template for each CHCC their product(s) contains. This includes information on the concentration of the chemical, the specific product component containing the chemical, the function of the chemical and details of how, where and in what quantities the product is sold. The reporting requirements also differ slightly between CHCCs intentionally added to a product during the manufacturing process, and those present as contaminants or released as byproducts.

After reviewing the full online disclosure, the manufacturer is prompted to pay for their disclosure at a cost of $200 USD per chemical, per reporting period. Only a single template needs to be filled out for each chemical, even if that chemical is present in a number of the manufacturer’s products. Hence, the maximum amount a company will pay to fully report under the CDP would be $13,200 if all 66 chemicals were to be present.

Further guidance on how to report is accessible on the DoH’s webpage.

Ensuring Compliance With The January Deadline

The Act 188 reporting deadline is a reminder to companies of the need to be aware of the intricacies of their supply chains. Without a comprehensive understanding of how their products are fabricated, companies stand little chance of being fully compliant with the multitude of regulations potentially applicable to the goods they offer.

Assent Compliance offers an industry-leading compliance solution to help companies efficiently meet their regulatory requirements under Act 188, along with additional restricted substance regulations, all from one platform. To learn more about how Assent can help your company, contact our team of experts at info@assentcompliance.com.