1. DISPLAY FIREWORKS SEMINAR PARIS LAS VEGAS HOTEL February 21, 2013 1

2. Display Fireworks Testing Program Overview Mr. John Rogers, Executive Director

3. Display Fireworks Program Review Three components :  Annual factory audits  On-site product evaluations  Container loading supervision 3

4. Annual Factory Audit  Purpose:  Ensure proper manufacturing practices are maintained.  Validation that components and packaging meet the requirements of the Display Fireworks Program. 4

5. Annual Factory Audit  Factory Audit Sections:  Quality Assurance Records  Supplied Materials Quality Assurance  Process Control  Certification Documents 5

6. Annual Factory Audit  Factory Registration Number :  Each complying factory is assigned an AFSL Registration Number.  Annual re-Audits are required to maintain registration.  Registration No. is cancelled if a factory fails future re-audits. 6

7. On-site Product Evaluation  Purpose:  Ensure the product and packaging comply with the requirements of AFSL program.  Certify all shipping cartons with an AFSL sticker. 7

8. On-site Product Evaluation  Shipper submits an application for product evaluation to SGS.  Evaluation completed within 3 working days. 8

9. Carton Evaluation  Shipping Carton Specifications:  5 layers for < 20kg  7 layers for => 20kg 9

10. Carton Evaluation 10

11. Carton Evaluation 11

12. On-site Product Inspection  Product Inspection Criteria:  Contents will be checked to ensure that product matches carton markings.  Product will be inspected for proper warning labels, product description label, and importer identification label.  Products will be checked to ensure size is within industry standards and tolerance. 12

13. On-site Product Evaluation  Product Inspection Criteria:  Products will be inspected for powder leakage.  Lift charge chamber will be inspected for secure attachment.  Fuses will be checked for secure attachment and proper placement inside the carton. 13

14. Packaging Evaluation 14

15. On-site Product Evaluation  Certification of Lots:  A Security Lot ID Number will be stamped on each carton in a lot.  Each shipping carton in an approved Lot will have an AFSL Security Sticker attached. 15

16. Security Smart Label 16

17. Container Loading Supervision  Purpose:  Verify that only AFSL certified/approved display fireworks are loaded into shipping containers.  Verification of shipping documents.  Verify the goods are secured for transportation. 17

18. Loading Supervision Procedures  Check the product quantity against the shipping papers / packing list.  Check the general condition of container interior and exterior (e.g. leakage, damage, infestation, etc.).  Supervise the loading process, take photos for documentation.  Make sure the blocking and bracing is in place.  Apply AFSL/SGS seal to the container. 18

19. Participation Requirements for Importers 1. Pay US$ 250 annual membership fee. 2. Sign an AFSL Importers Participation Agreement. 19 “Participating Importer” shall include all of the participating importer’s parent, subsidiary and related companies and other affiliates. Affiliates shall include all persons who control, are controlled by, or are under common control with the participating importer or its officers or directors.

20. Participation Requirements for Importers 3. Pay the AFSL products certification fee to the Shipper who then transfers the fees to AFSL. 20 Quality Improvement Funding – To support the quality improvement programs, Participating Importers have authorized a Quality Testing Fee on all shipments of Governed Fireworks to the United States to be assessed on them by the shipper. The amount of the Quality Testing Fee is established at U.S. $1.00 per carton for Category I fireworks. These fees will be reviewed annually and may be adjusted based on the projected program requirements.

21. Participating 1.3G Importers More than 50% of U.S. Market 21

22. Participating Shippers 22

23. Display Fireworks Test Summary - 2012 23 Total Tested 42,466 Cases Compliance 28,622 Cases Container Loading Supervision 17,718 Cases 61.9% 67.4%

24. 24 Common Violations Non-complying Warning Labels WARNING: DANGEROUS EXPLOSIVE. IF FOUND, DO NOT HANDLE. CONTACT LOCAL FIRE OR POLICE DEPARTMENT.

25. 25

26. 26 Common Labeling Violations Non-complying Instructions: 1.A description of the size of the device. 2.A description of the category of the device. 3.The name and location of the manufacturer (City and Country). 4. Date and shift code of manufacture. 5. The name and address of Importer.

27. Standards Committee Task Develop Cautionary Labeling Models for each category of Display Fireworks 27

28. 28 Common Violations Lack of Fuse Protection

29. 29 Common Violations Rising Effects Not Protected

30. 30 Common Violations No Inner Packaging To Prevent Items From Contacting Outer Packaging.

31. 31 Common Violations Incorrect Carton Layers Gross weight ≥ 20 kg but 5 layers only.

32. 32 Common Violations No Orienting Arrow on Shipping Cartons THIS END UP

33. 33 Common Violations No Drop Test Documentation a. Required by Shell Size. b. Other Products Required by Category.

34. 34 Common Violations No Thermal Stability Test Documentation. Documentation required by Model

35. Future Activities Meeting with Matson shipping to discuss using the AFSL container loading supervision program as a condition of allowing transportation of Display Fireworks. 35

36. QUESTION & ANSWER PERIOD

37. 37 WWW. AFSL.ORG THANK YOU!