DEVELOPMENTS
Developments
Tariffs
Fragrance Creators Association
successfully protected dozens of fragrance-
related tariff headings from the final List 3
of the Trump Administration’s China 301
tariffs, a significant win for its member
companies. Over the past 20 months, the
Trump Administration has shifted from the
U.S.-led push for global trade liberalization
to a narrower focus that recasts trade policy
to secure benefits for U.S. jobs, workers,
and companies. The fragrance industry is
impacted by a range of these developments,
and nowhere is that exposure more evident
than in the rapid escalation in the newly
implemented U.S. tariffs (e.g., Section 301
and 232) and global retaliation (e.g., China’s
retaliatory lists). Understanding the critical
impact on the industry, Fragrance Creators
took decisive action, establishing an ad hoc
working group with government affairs and
regulatory/purchasing experts from our local
and global member companies to respond
to the influx of trade activity. Through this
Ad Hoc Tariff Working Group, Fragrance
Creators identified materials subject to 301
tariff activity and submitted comments to the
United States Trade Representative (USTR),
urging the removal of fragrance ingredients
from the list. The final List 3 tariffs were
announced September 17, 2018. President
Trump announced that the new tariffs took
effect on September 24, 2018. They began
at 10 percent and increase to 25 percent on
January 1, 2019.
TSCA Modernization
As a direct result of its efforts to actively
engage with the Environmental Protection
Agency (EPA), Fragrance Creators has
seen advancements in EPA’s willingness
to incorporate feedback and find solutions
for improving the new chemicals program.
The Frank R. Lautenberg Chemical Safety
for the 21st Century Act represents the
first significant amendments of the Toxic
Substances Control Act (TSCA), which is the
primary chemicals management (chemical
control) law in the U.S. Much of the focus
of the legislation is on prioritization and
evaluation of existing chemicals, or those
already listed on the TSCA Inventory.
Fragrance Creators was successful in
28 | FRAGRANCENOTES.ORG | Issue 3, 2018
utilizing multiple educational meetings and
correspondence with EPA senior staff to
focus EPA’s awareness on the issues and
implications of the new chemical program.
Fragrance Creators was successful in
elevating fragrance as a priority industry
for EPA new chemical approvals and will
continue advocating for its members with
pending submissions.
After Fragrance Creators elevated the
issue at its 2018 Lobby Day, Congressional
House and Senate Members encouraged
Acting Administrator Wheeler to improve
the agency’s review of new chemicals.
The fragrance industry’s priority is to
ensure that TSCA modernization—in
accordance with congressional intent
and industry support—promotes safety,
innovation, and sound science.
The U.S. EPA issued a final-fees rule
under the Toxic Substances Control Act
(TSCA) on September 28, 2018.
Volatile Organic
Compounds (VOCs)
The Consumer Products Regulation
approved by the Air Resource Board
(CARB) in California, sets Volatile Organic
Compounds (VOCs) limits for numerous
product categories. VOC limits do not
apply to fragrances up to a combined level
of 2 percent by weight contained in any
consumer product. Over the past several
months, multiple regulatory bodies have
taken steps that may affect the regulation
of VOCs. These regulatory bodies include
CARB; the Ozone Transport Commission
(OTC), (whose model rule is implemented
in over 15 states in the U.S.); and
Environment and Climate Change Canada
(ECCC).
In May 2018, OTC acknowledged that
there were unintentional omissions in its
model rule, which approximately 15 states
follow, and welcomed Fragrance Creators’
comments highlighting the omission. The
previous draft Phase V Model Rule, as
published, did not include the CARB (VOC)
exemptions for personal fragranced products.
Fragrance Creators acted quickly, identifying
the omission and informing, rallying,
and leading engagement of allied trade
associations and was ultimately successful in
correcting this serious omission. Fragrance
Creators will distribute an updated draft rule
as soon as it becomes available.
Fragrance Creators recognizes the
importance of protecting the fragrance VOC
exemption and, in conjunction with our
allied trades, is providing policymakers with
the necessary information to make well-
informed decisions.
CA SB 1249, The
California Cruelty-Free
Animal Cosmetics Act
On August 31, 2018, the California
Legislature passed SB 1249, a bill which
bans cosmetics from being sold in California
if those products or their ingredients
have been tested on animals, specifically
vertebrates. The bill allows for particular
exemptions, including mandated testing.
Working closely with the Personal Care
Products Council, Fragrance Creators
was actively engaged with stakeholders
in California during the drafting process
to ensure that the bill better aligned with
existing laws and included key exemptions.
The bill was signed into law by Governor
Brown on September 28, 2018, and will
become operative on January 1, 2020.
NYS DEC
On June 6, 2018, the New York State
Department of Environmental Conservation
(NYS DEC) finalized its Household
Cleansing Product Information Disclosure
Program Certification Form and Guidance
Document. Claiming to act on existing
statutory authority, this regulatory action
requires manufacturers to disclose cleaning
product ingredient information online. The
implementation timeline is tiered, with
disclosure for intentionally added ingredients
beginning in July 2019 and certain
nonfunctional byproducts and contaminants
in January 2023. Fragrance Creators has
been heavily involved with this issue
since the document’s initial release and is
developing a multi-faceted strategy with our
allied trades to address the guidance.
WHMIS 2015
Through the expertise of its Occupational