What is the CPSIA?

You have to comply. Period.

Products exported from the U.S. all have to comply with CPSIA before they will be allowed out of the country.  Some shippers are now requiring certificates of compliance, also known as general conformity certificates (GCCs), before accepting commercial shipments.
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State AGs are not bound by any decisions of CPSC, so they can prosecute you for violating CPSIA even if CPSC has decided to stay enforcement.

CPSIA does nothing to help prevent lead poisoning, and takes a huge chunk out of the economy to do it. Plus it breeds disrespect for the rule of law.

No, an instant lead test kit does not measure the amount of lead (parts per million) therefore would not provide the necessary results for the GCC. In addition, if the law is not changed to allow either component testing or alternative testing types, sending your goods to a third-party lab will be required at some [...]

Many handmade goods are still in stores for a variety of reasons.  Here are some to consider:

The stay of enforcement for testing and certification until Feb 2010 has afforded many companies the opportunity to get their plans in place. They are determining how they will proceed if the  requirements do not change. Many of them [...]