Non-Metalic thread and fabric are exempt from lead testing, poly, wool, & cotton stuffing also appear to be exempt, but google eyes or buttons eyes are not exempt. I don't remember exectly the law regarding toys and phthalates but I do know that there are no exemptions from that testing if a product falls into one of the categories that require that testing. There are certain regulations concerning how warning labels must appear on toys plus specific requirements on the font size and ink colors that must be used. In addition there are other labels that you need to include - a permanant tracking label for the CPSC and a care & content label for the FTC.
What you choose to do for your own family is your choice, you can buy or make all the untested items you want for your own daughter. Now if you wanted to sell those same thing on any venue well that's where the CPSIA testing & tracking labels comes into play no testing no labels no selling them as a child's product.
The use of GCCs & COCs supplied by the manufacturers of the raw materials will only be allowed to be used to issue your own GCCs until 2-10-10. After that, with the way things stand right now, you will have to test your products yourself with a government approved lab. Also the lead testing and phthalate testing is retro-active, so even inventory that you used the supplier's testing info on may require it own testing by the labs if it's still for sale after Feb 10th 2010. See
http://www.cpsc.gov/library/foia/advisory/317.pdf for more info.
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.pdfThe current overview of the "final" determination of raw materials for exepmtion
http://www.cpsc.gov/businfo/frnotices/fr09/leaddeterminationsfinalrule-draft.pdfInfo on a workshop to be hosted by the CPSC on testing and certification.
http://www.cpsc.gov/library/foia/foia10/brief/producttesting.pdf Tracking 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.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 fiber & fabric based products there maybe additions laws & regulations that need to be followed under a seperate government agency known as the FTC (Federal Trade Commission).
FTC Labeling requirements
http://www.ftc.gov/bcp/edu/pubs/business/textile/bus21.shtm#covered