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'Made in the USA': What does it mean?
Sunday, March 07, 2010

The "Made in USA" designation means that "all or virtually all" of the product was made in the United States, according to the Federal Trade Commission, the agency in charge of enforcing the labeling standards.

More specifically, all significant parts, processing and labor that went into the product must be of U.S. origin.

Except for cars and textile and wool products, it is the choice of the manufacturer to say whether a product was made domestically.

In contrast, imported goods generally are required to be marked with a country of origin, such as "Made in Japan." Those labeling requirements are enforced by the U.S. Customs Service. (Fresh and processed foods fall under separate labeling guidelines).

U.S. companies also can make qualified claims that describe the extent or type of domestic content or processing for their goods. For example, "Made in USA of U.S. and imported parts," "Assembled in USA from Italian leather and Mexican frame," or "60% U.S. content" are qualified claims.

Even when it comes to qualified claims, the product must have a "significant" amount of U.S. content or processing, according to the FTC.

Products that include foreign parts may be labeled "Assembled in USA" when the principal assembly takes place in the United States and the assembly is substantial. The last "substantial transformation" of the product also must occur domestically.

That means that a computer whose major components are imported and are put together in a simple "screwdriver" operation in the United States would not qualify for the "Assembled in the USA" designation.

Consumers who believe that a product is being falsely promoted as "Made in USA" can call the FTC at 1-877-382-4357 or file a complaint online at www.ftc.gov.

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First published on March 7, 2010 at 12:00 am
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