IWLA Scores Government Affairs Victory In Washington D.C. - Consumer Product Safety Law Recognizes Role Of 3PL

IWLA and its members scored a significant government affairs success in Washington, D.C. recently with passage of a landmark consumer product safety law recognizing the role of a third-party logistics provider (3PL). Legislation (HR 4040) now at the White House marks the first time that the term third-party logistics provider has been defined in federal law. 3PLs are specifically defined in this historic legislation that will remove toxic chemicals from toys, and put a more powerful and better-funded cop on the beat to police the safety of consumer goods.

The measure, now awaiting President Bush's signature, represents the most significant expansion of the Consumer Product Safety Commission (CPSC) since it was created in 1973. It also represents a fundamental shift in the federal government's approach to protecting consumers from dangerous products: transforming a reactive stance to a preventive one by dealing with hazards before goods reach the marketplace, including products manufactured overseas. The new law imposes substantial new requirements and penalties on manufacturers, distributors and retailers, but specifically states that a 3PL is not to be considered a manufacturer, distributor or retailer. The 3PL provision ensures that responsibility for compliance with CPSC recall orders, etc., rests with the product owner and not the third-party warehouse.

Establishing in federal law the role of the 3PL in the supply chain is critical as the domestic and global supply chain comes under increased scrutiny by legislators and regulators. Concerns over cargo security and product safety dominate the policy debate. This new law reaffirms the role of the 3PL as an intermediary in the supply chain, similar to the carrier or forwarder. It sets a critical precedent as Congress turns to similar legislation for food, pharmaceuticals and cargo security.

IWLA and it members made this happen. The process started in March when an IWLA member asked association representation in Washington D.C. to a look at the bill that was then pending in the Senate. It soon became clear that the CPSC bill would impose responsibilities on third-party warehouses, by defining them by default as a "distributor." IWLA drafted an amendment to fix the problem and met with congressional staff to seek support. Although congressional staff showed interest, the process went into overdrive when an IWLA member from Arkansas reached out to Senator Mark Pryor (D-AR), a key Senator on the House-Senate conference committee, a small working group tasked with writing the final legislation. Senator Pryor's interest was increased as IWLA members in key states mobilized to contact other members of House-Senate conference committee. This was followed by a call to action to IWLA members that resulted in hundreds of letters to Congress. And, one letter can make a difference -- one of the letters convinced a key congressman from Tennessee to enter the fray. Representative Bart Gordon's (D-TN) office called me and said that Mr. Gordon wanted to help. Representative Gordon contacted Senator Pryor. They reached out to the CPSC, who called me several times to discuss legislative language, with the end result being that IWLA's amendment was adopted.

SOURCE: IWLA