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DISPLAY FIREWORKS SEMINAR September 15, 2011

DISPLAY FIREWORKS SEMINAR September 15, 2011. 1. Opening Remarks. John Rogers. 2. From US Display Fireworks Importers. Mike Cartolano - Melrose Pyrotechnics, AFSL Director. 3. The AFSL Display Fireworks Program – How it Developed.

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DISPLAY FIREWORKS SEMINAR September 15, 2011

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  1. DISPLAY FIREWORKS SEMINAR September 15, 2011 1

  2. Opening Remarks John Rogers 2

  3. From US Display Fireworks Importers Mike Cartolano - Melrose Pyrotechnics, AFSL Director 3

  4. The AFSL Display Fireworks Program – How it Developed In 2006 the Display Industry recognized a need for third party certification. Approached AFSL in 2009 to work with the industry. Presented the plan to the China industry in April 2011. Program kicked off on September 1, 2011. 4

  5. Supporting ImportersMore than 50% of U.S. Market (占美国50％以上的市场份额） 5

  6. Phil Grucci – Fireworks by Grucci, AFSL Director

  7. From Julie Heckman – Executive Director 7

  8. Display Fireworks Certification. Why? Improve Safety. Improve Quality & Performance. Ensure Chemical Stability & Consistency. Ensure Ocean Carriers continue to accept 1.3G fireworks. 8

  9. Why Now? Accidents involving Display Fireworks Storage created a Shipping Crisis that began in 2006 and peaked in 2008: Sanshui Warehouse Explosion Hyundai Fortune Vessel Fire Cosco Container Explosion, Changsha All ‘spectacular’ incidents with wide press & internet coverage. 9

  10. Effective June 30, 2011, DOT ruled that Fireworks Approvals Applications will only be accepted from: The Manufacturer, or Their Designated U.S. Agent. Foreign Manufactures may designate more than one U.S. Agent for various fireworks Approvals. Under this new policy, fireworks importers may no longer apply for Approvals, unless they are the designated U.S. Agent for the Manufacturer. All Approvals will be issued to the Manufacturer. 10

  11. Hyundai Fortune – March 21, 2006 Not Caused by Fireworks. Misdeclared hazardous cargo next to engine room. When fire hit upper deck, including the display fireworks – quite dramatic. 11

  12. Xingang Port / Changsha 12

  13. Xingang Port / Changsha, May 2006 13

  14. Xingang Port / Changsha, May 2006 14

  15. Consequences of these high profile accidents • Steam Vessels Stopped accepting 1.3 G Fireworks for transport. • APA and U.S. Importers met with Carriers to find a solution. • Carriers demanded certification of proper classification & container loading. • After several years, industry took its initial plan to AFSL to develop a formal program. 15

  16. The Future • Certification of Display fireworks will give carriers assurance they need to move the products. • Certification will help reduce inspections by CBP, DOT, DHS, in the U.S. • Certification may help with ongoing EX Approvals problems with DOT. 16

  17. Display Fireworks Program Three components: Annual factory audits On-site product evaluations Container loading supervision 17

  18. Annual Factory Audit • Purpose: • Ensure proper manufacturing practices are maintained. • Validation of components and packaging for display fireworks meet the requirements of the Display Fireworks Certification Program.

  19. Annual Factory Audit • Factory Audit Sections: • Quality Assurance Records • Supplied Materials Quality Assurance • Process Control • Certification Documents

  20. Does Factory have the most current list of permissible chemicals (see the Appendix for more detail)? (Critical) Guideline: • Requirement : • List of permissible chemicals is available. • Note: If the result is not compliance, the auditor gives the factory the copy of the Audit Appendix.

  21. Are finished product lots coded to identify product dates and other lot designations? (Critical) Guideline: • Lot numbers or date codes are used for the identification of individual product.

  22. Annual Factory Audit • AFSL Factory Registration Number : • Each compliant factory is assigned a unique AFSL Reg. No. related to the CIQ factory ID No. • The AFSL Reg. No. must be either printed, stamped or labeled under the CIQ Factory ID No. on all cartons. • In order to maintain the Reg. No., Annual re-Audits are required. • AFSL Reg. No. will be cancelled if a non-compliance result is obtained on any future re-Audit’s.

  23. Audit Pricing 23

  24. 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. 24

  25. On-siteProduct Evaluation Shipper submits an application for product evaluation to SGS. Evaluation completed within 3 working days. 25

  26. Carton Evaluation Shipping Carton Specifications: 5 layers for < 20kg 7 layers for => 20kg 26

  27. Carton Evaluation • Carton Inspection: • Visible damage • Integrity of shape • square or rectangular in shape having sides that are 90 degrees • Stack test • minimum 92 inch height and remain straight, sturdy and maintain their original shape

  28. Carton Evaluation 28

  29. Carton Evaluation 29

  30. Carton Evaluation Interior Packaging Specifications: Display shells must have a space between the products and top of shipping carton, excluding the dividers. Cake items, finales, and chained fused items will be checked for proper spacing inside the carton. 30

  31. On-site Product Evaluation 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. 31

  32. 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. 32

  33. Carton Evaluation 33

  34. 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. 34

  35. On-site Product Evaluation Reporting: The technician will complete a product evaluation report on-site and provide the result to factory representative. The report will be provided to shipper by the next working day. Results will be stored in AFSL database for tracking. The original reports will be distributed to the shipper monthly. 35

  36. Loading Supervision Procedures 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. 36

  37. Loading Supervision Procedures Scheduling: When the goods are ready to ship, the exporter/manufacturer will request loading supervision inspection from SGS at least 2 working days in advance. AFSL certified technicians will be assigned to conduct loading supervision on scheduled date at either a consolidation warehouse or manufacture warehouse. 37

  38. Loading Supervision Procedures Loading: 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. 38

  39. Loading Supervision Procedures Reporting: The final report will be issued to the client within 1 working day. The report will be uploaded into the AFSL database for tracking purposes. 39

  40. Loading Supervision Procedures Failure criteria: Products were not properly certified. Unacceptable condition of container (leakage, damaged, etc.) Broken and/or damaged fireworks shipping cartons and failure of exporter to take timely corrective action. SGS will terminate the loading supervision inspection, the AFSL/SGS seal will not be applied and the client will be notified. 40

  41. Participation Requirements for Shippers Sign an AFSL Participation Agreement. Apply for product evaluation on behalf of US importers. Collect certification fees from the US importers and pay to AFSL. 41

  42. Participation Requirements for Importers Pay US$ 250 annual membership fee. Sign an AFSL Importers Participation Agreement. “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. 42

  43. Participation Requirements for Importers Pay the AFSL products certification fee to the Shipper who then transfers the fees to AFSL. 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. 43

  44. AFSL Commitment to Program • Develop and implement a certification program in a timely manner. • Establish two permanent seats on the Board for Display Industry members: Mike Cartolano, Melrose Pyrotechnics; Phil Grucci, Fireworks by Grucci.

  45. AFSL Commitment to Program • Establish a Standards Committee to develop requirements for 1.3G Fireworks. • Committee members appointed:

  46. AFSL Commitment to Program • Set aside funds for special projects to enhance safety and quality of 1.3G Fireworks. Per case cost: US$1.00 AFSL: US$0.61 Special projects fund: US$0.39

  47. Program Timetable Aug.1- Factory audit checklist was distributed for comments. Aug.18 – Follow-up meeting with display industry Sep.1 – Nov.30 – Factory audits conducted Nov.29 – China Industry Meeting Jan.1, 2012 - Initiate products evaluation and container loading supervision 47

  48. WWW.AFSL.ORG THANK YOU!

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