Congress Considering Requiring Foreign Manufacturers of Consumer Goods to Register U.S. Agents or Face Import Ban

June 23, 2010

On June 22, 2010, Representative Betty Sutton (D-OH) introduced the Foreign Manufacturers Legal Accountability Act (H.R. 4678). The legislation is designed to ensure that foreign manufactures of consumer goods can be sued in U.S. courts if for product safety and other violations by requiring them to register an agent in the U.S. that has a substantial connection to the importation, distribution or sale of their products.

The agent could be served papers regarding all civil and regulatory actions in U.S. State and Federal Courts. The Food and Drug Administration (FDA), Consumer Product Safety Commission (CPSC), and the Environmental Protection Agency (EPA) could establish a minimum value or quantity of goods that would trigger the registration requirement.   Should a foreign manufacturer fail to register an agent, imports of its goods would be banned from entry into U.S. commerce.

The Senate introduced identical legislation in 2009 (S. 1606) with 15 co-sponsors and bipartisan support. According to Congressional sources, efforts are already underway to include the bill in other legislation likely to be approved by the full Senate.

Opponents of the bill, which includes the National Customs Brokers and Forwarders Association of America, claim that the bill could lead foreign countries to implement the same system, which would be expensive for small and medium sized U.S. exporters.  

Key trading partners, including Canada and the European Union, are already examining whether the bill is consistent with the General Agreement on Tariffs and Trade (GATT). Specifically, they are concerned that the bill would violate Article III on national treatment for imported goods and Article XI on non-tariff barriers.