AFSL General Membership Meeting September

John Rogers, Executive Director 2

Alan Zoldan, President 3

 Andrew Kameros, Director of Compliance, CPSC  Demar Granados, Compliance Officer, CPSC 4

Ryan Posten, Assistant Associate Administrator, PHMSA 5

John Rogers, Executive Director

7

8

9

2

4

12

TOP 10 VIOLATIONS 2010 Percentage of Total Violations 5

14

 Modification: 60 grams composition limit per device. Changed from 200 grams.  Composition limit per retail pack is 60 grams.  Implementation Date: November 1, 2011.

 Classify as a Specialty Item.  Subject to Fuse Burn Time and Fuse Side Ignition Requirements.  Subject to all other requirements for Specialty Items, including 20 gram limit.  Effective Date: Nov. 1, 2011.

17

 Add to the list of Prohibited Chemicals for Consumer Fireworks.  Implement a screen test.  Effective date: January 1, 2012.

 AFSL/SGS to test fireworks manufactured or assembled in the U.S.  Purpose: To permit importers to certify products to comply with CPSC certification requirements.

 Program consists of 3 elements:  Assortments Assembled from Previously Certified Bulk Fireworks.  Finished Fireworks Assembled from Previously Certified Components.  Fireworks Fully Manufactured in the U.S.

 No additional testing is required.  Manufacturer applies previously issued stickers to assortment cartons and enters numbers into Security Log.  Manufacturer files Certificate of Compliance in AFSL Database.  Assortments are ready for distribution.  AFSL performs periodic audits to verify compliance.

 Additional testing is required.  Samples will be collected by SGS from the manufacturer’s warehouse.  Samples will be tested by SGS at Tulsa, OK lab.  Manufacturer’s controller will assign and monitor the application of AFSL Stickers to the finished lot.

 Manufacturer files Certificate of Compliance in AFSL Database.  Finished items now ready for distribution.  AFSL performs periodic audits of records and facilities to assure compliance.

 Certification of assortments – US$0.07 per case.  Testing of finished items assembled from certified components – US$0.42 per case.  Testing of fully manufactured domestic products – US$0.75 per case.  Sample collection fee - US$150 per man-day.

Presented by : Joe Romeo – Global Key Account Manager September 14, 2011

 Joined SGS in March  Relocated to Liuyang to lead the AFSL Fireworks QIP.  10+ years experience with consumer products in quality assurance and project management.  Strengthened bond (AFSL & SGS) in direct U.S./ China communications.  Improved Technician Team Unity.  Successful transition into the leadership role.  Skilled and determined mindset to identify process enhancements/services.

Cass Ruan Technical Manager  Transitioned to SGS in August 2009 from ITS.  Based in Liuyang and dedicated to the AFSL Fireworks QIP.  12+ years working with the AFSL program.  Manages technical training and support to the Technician Team.  2011 AFSL Annual Technician Training and Shipper/Factory Seminars.  Engaged in development, coordination, and execution.

Liuyang Team Beihai Team Shenzhen Reserve TOTAL Aug, Aug, Aug, Plan, Display Program For 2012 TBD

 Current Issue:  AFSL has reported that 7.8% of all violations in 2010 were related to Label Wording.  Program Goals:  SGS will take a pro-active approach to work with Shippers/ Factories who regularly experience violations.  SGS will use technically trained staff to support the service.  SGS’ goal is to eliminate this violation category from AFSL’s KPI Index while increasing speed to market for Shippers/Factories.

 Kicked off Domestic Program for Assortment & US Finished Product Testing.  Hired Liuyang based Project Manager.  2011 Annual Technician Training Completed.  Launched Factory Audit Process for the Display Program.  Launch Abortive Inspection Process.

 Display Program Phase II Deployment:  Product Evaluation;  Container Loading Supervision.  Continue momentum to drive continuous process improvement for all programs.  Service Development Initiatives:  Product Label Reviews.

Richard Shields, Treasurer 32

John Rogers, Executive Director Kit Smith, General Counsel 33

Alan Zoldan, President 34

35 Questions?