It effects all products for children 12 years old and younger. Sad to say that children's bath and body products are included in this and will need the CPSIA testing in addition to the FDA requirements that you already follow.
"(2) DETERMINATION GUIDELINES.—
(A) AGE.—In determining whether products described
in paragraph (1) are designed or intended for use by a
child of the ages specified, the following factors shall be
considered:
(i) A statement by a manufacturer about the
intended use of such product, including a label on
such product if such statement is reasonable.
(ii) Whether the product is represented in its packaging,
display, promotion, or advertising as appropriate
for use by children of the ages specified.
(iii) Whether the product is commonly recognized
by consumers as being intended for use by a child
of the ages specified.
(iv) The Age Determination guidelines issued by
the Commission staff in September 2002 and any successor
to such guidelines." from page 24 of the Law,
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_public_laws&docid=f:publ314.110.p... . It can not at this time be appealed but there is some leaway to add amendments to it, due to it's abiguity. Please write to all that you can in federal public office find yours here at
https://writerep.house.gov/writerep/welcome.shtml &
http://www.senate.gov/general/contact_information/senators_cfm.cfm . Send your questions to the CPSIA regarding how it might affect your business or what level of testing your products need at
http://www.cpsc.gov/cgibin/newleg.aspx . Also contact any media persons you can to help make them aware of the impact this will have on the handmade industry.