General Statement on Lead Content per CPSIA Act of 2008

We have had many inquiries about the compliance of our products with the CPSIA (Consumer Product Safety Improvement Act) of 2008, which mandates strict limits on the amount of lead in items used by children. We have had our products tested for compliance. Our applicators are well within the tolerance levels of the act. Our crystals, however, are leaded crystals. As such, they exceed the maximum tolerance for children, as defined by the Act. Our crystals are not toys -- they are not intended for children.

For more information, please read the following two statements that were issued by Swarovski as it pertains to Swarovski crystals. This same information applies to all crystals sold by Kandi Corp.

Swarovski Overview Statement on Lead Content 10/16/08

Recently, there has been an increased regulatory focus on potential human exposure to lead from various consumer products, including jewelry. We hope that our customers will find this overview of current requirements applicable to lead in jewelry and other products useful. Recognizing that the regulatory landscape is rapidly changing, however, it remains the responsibility of our business customers to assure that their use of crystal in jewelry and other products is consistent with all applicable requirements.

How is lead in crystal different from lead in other products? Crystal has unique properties. The crystal manufacturing process creates a matrix, which inhibits the mobility of lead. Because of this structure, lead crystal poses no significant risk of excessive lead exposure to human health via surface contact (hand to mouth), mouthing or even ingestion. By contrast, lead in other materials that might be used in jewelry, such as coatings, metal or plastic, may be accessible to consumers. That is why some regulatory bodies, like the Consumer Product Safety Commission (CPSC), have focused on children’s metal jewelry and surface coatings, and not crystal.

Has crystal been tested to assess the potential for lead exposure? Swarovski crystals have been tested under a variety of test methods for extractable lead, including the CPSC’s Standard Operating Procedure for Determining Lead (Pb) and Its Availability in Children’s Metal Jewelry, ASTM F963-03 (the standard on accessible lead in toys), and EN 71/3 (the European standard for lead in toys). Test conditions and procedures do vary, but lead levels are well below regulatory limits even when the crystal is tested in an acid solution to maximize the release of lead.

What are the current national limits applicable to lead in crystal jewelry? The Consumer Product Safety Improvement Act (CPSIA) of 2008 was signed into law by President Bush on August 14, 2008. According to this law, the age of a child has been defined as 12 and under. All products for a child are required to have less than 600ppm lead by February 10, 2009 and the limit progressively decreases to 300ppm within 1 year and 100ppm within 3 years, if feasible. The CPSC does not have any restrictions on the use of crystal in adult jewelry; therefore, this would only be relevant to products intended for children as defined above.

Do state limits apply to crystal jewelry? The CPSIA includes language that prevents states from passing their own lead limits on children’s products. The states that had legislation in place prior to the Federal Act passing will now defer to the national standard. Certain states that have legislation referencing lead in adult products would not be affected by the CPSIA.

What is Swarovski doing? Swarovski will try to keep you informed of actions that affect your use of our products. Recognizing that the regulatory landscape changes often, it remains the responsibility of our business customers to assure that their use of crystal in jewelry and other products is consistent with all applicable requirements.

Swarovski Crystal Position 10/16/08

Recently, there has been an increased regulatory focus on potential human exposure to lead from various consumer products, including jewelry. Crystal has unique properties. The crystal manufacturing process creates a matrix which inhibits the mobility of lead. In other words, lead is bound into the structure of the crystal. Because of this structure, lead crystal poses no significant risk of excessive lead exposure to human health via surface contact (hand to mouth), mouthing or even ingestion. Indeed, Swarovski crystals have been tested under a variety of test methods for extractable lead. Test conditions and procedures do vary, but lead levels are well below regulatory limits even when the crystal is tested in an acid solution to maximize the release of lead.

Most authorities considering lead in crystal have concluded that limits on total lead should not apply to crystal. In 2006, for example, the California Attorney General settled a lawsuit brought in the state alleging exposure to lead from jewelry. The court-approved settlement agreement, as well as the later legislatively enacted Californian AB 1681, established limits for lead in metals and several other components, with stricter standards for jewelry intended for children 6 and younger. Significantly, in recognition of the limited risk of availability of lead from crystal, the settlement agreement as well as California AB 1681 allows the continued use of crystal without limitation in jewelry not intended for children.

On August 14, 2008, President Bush signed into law the Consumer Product Safety Improvement Act (CPSIA) of 2008 located at http://www.cpsc.gov/about/cpsia/cpsia.html. This Act represents the most comprehensive overhaul of this country’s consumer product safety laws since the creation of the Consumer Product Safety Commission (CPSC) in 1972. New limits on lead take effect on February 10th, 2009.

According to this law, the age of a child has been defined as 12 and under. All products for a child are required to have less than 600ppm lead by February 10, 2009 and the limit progressively decreases to 300ppm within 1 year and 100ppm within 3 years, if feasible. In addition, there is preemption language in the law that will prevent states from passing legislation in the future with regard to lead limits. The states that currently have legislation regarding children’s products in place will default to the federal standard. Therefore, California will be using the new standards for children’s products as of February 10, 2009 but the California adult standard, which allows for a total crystal exemption, still stands.

Swarovski will try to keep you informed of actions that affect your use of our products. Recognizing that the regulatory landscape changes often, it remains the responsibility of our business customers to assure that their use of crystal in jewelry and other products is consistent with all applicable requirements.
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