Unfortunately you have sevral points wrong unokitsune. Not only do items meant for children under 13 need to meet certain requirement but the designer or crafter must have the actual approved 3rd party lab test results on either the competed items or on all non-exempt components in the final product as well as an accounting system to track which test certificates go to which final product. Packaging that states a component or paint or finishing meets a ASTM regulation or a simple statement on the component stating that it is lead or phthalate free is not sufficient, crafter and micro bussinesses need to have the test results stating what the lead content is in PPM & for certain finished product catergories what the 6 banned phthalates are in PPM. With paints and varnishes there are even more additional concerns to be look at beyond just the CPSIA, the regular CPSC also requires now testing, I think, for 12 other heavy metals in addition to lead for ANY product with painted or varnished surfaces & if the final product is for a child then the test results must be in PPM & for other general use products a GCC stating the paint/vanish is lower than these levels is acceptable. So just looking for packages of non-toxic supplies at Jo*Anns, Michaels, AC Moores, or Hobby Lobby is not enough if a crafter is producing a child's product they must also contact the supply manufacturer for copies of the test results that prove the claim on the packaging and the test results will only be acceptable to the the CPSIA commission if those results came from a pre-approved CPSC certified lab.
This is on top of the CPSIA required permanant product tracking label and any other product specific regulation that the CPSC imposes. Plus any other government regulatory body's labels such as care & content labels required by the FTC for fabric & fiber items.
There is an extensive list of items that are exempt from the lead testing found at
http://www.cpsc.gov/businfo/frnotices/fr09/leaddeterminationsfinalrule-draft.pdf . These items can be used in combination with each other to create a new product and still remain exempt from lead testing - example a wood button sealed with beeswax would still be exempt but a wood button sealed with non-toxic clear varnish would require test certificates.
Here's some reading to get you started on understanding the CPSIA.
The main CPSC website
http://www.cpsc.gov/The CPSIA main website
http://www.cpsc.gov/about/cpsia/cpsia.htmlCPSIA guidance for small businesses/crafters includes a quick look guide Table : B exempt raw material list
http://www.cpsc.gov/about/cpsia/smbus/cpsiasbguide.pdfAn update on the stay of 3rd party testing
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10083.htmlWebcasts for the 2 day public workshops in Dec 2009
http://www.cpsc.gov/about/cpsia/cpsiatesting.htmlTracking labels
http://www.cpsc.gov/about/cpsia/sect103policy.pdfCPSIA's FAQ page
http://www.cpsc.gov/about/cpsia/sect103.html#103q8 The CPSC's age determination guideline
http://www.cpsc.gov/BUSINFO/adg.pdfA timeline from the CPSIA
http://www.cpsc.gov/about/cpsia/rulemaking.pdfInformation on how this law is retro-active
http://www.cpsc.gov/library/foia/advisory/317.pdfStandard Operating Procedure for Determining Total Lead (Pb) in
Children’s Metal Products (Including Children’s Metal Jewelry) found at
http://www.cpsc.gov/about/cpsia/CPSC-CH-E1001-08.pdfEven non-metal components must be tested using destructive digestive testing read more here
http://www.cpsc.gov/about/cpsia/CPSC-CH-E1002-08.pdf Small Parts Regulations Summary
http://www.cpsc.gov/BUSINFO/regsumsmallparts.pdf Small Parts labeling
http://www.cpsc.gov/BUSINFO/label.pdf Maybe some one else has a link to a plain english version of the small parts regulations, but these 2 links are the best I have.
For fabric and fiber items
FTC Labeling requirements
http://www.ftc.gov/bcp/edu/pubs/business/textile/bus21.shtm#covered Examples of FTC labels (about 3/4 of the way down the page)
http://www.ftc.gov/bcp/edu/pubs/business/textile/bus21.shtmHere's info about small parts warnings
http://www.cpsc.gov/LIBRARY/FOIA/FOIA08/brief/toygameads.pdfpage 19 of the PDF has the abbreviations & page 20 of the PDF has the examples in black-n-white but I believe they need to be in certain colors on the actual label.