Concern Grows Over Foreign Manufacturers Liability Bill

There is growing concern among manufacturers about H.R. 4678 and S. 1606, the Foreign Manufacturers Legal Liability Accountability Act. The bills require foreign manufacturers, foreign subsidiaries of U.S.-headquartered companies, and foreign parents or subsidiaries of U.S. subsidiaries to have a registered agent capable of being served in state and federal court for tort liability.

The legislation will also impact all U.S. manufacturers who import “covered” items from foreign manufacturers. The House bill will ban imports from foreign manufacturers without registered agents. The Senate bill will require a transaction-by-transaction declaration to Customs and Border Protection that the U.S. importer has contacted the foreign manufacturer to learn the name of its registered agent.

If your product or components can be defined as “consumer goods” they are likely covered by these bills. The House bill is set to be marked up in the full House Energy and Commerce Committee, chaired by Henry Waxman (D-CA).