Made in USA: Difference between revisions
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{{About}} |
{{About}} |
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{{short description|Phrase indicating that something was produced in the United States}} |
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{{Use American English|date=September 2023}} |
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⚫ | A '''Made in USA''' mark is a [[country of origin]] label that indicates the product is "all or virtually all" |
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⚫ | A '''Made in USA''' mark is a [[country of origin]] label affixed to [[United States|American]]-made products that indicates the product is "all or virtually all" domestically produced, manufactured and assembled in the [[United States|United States of America]]. The label is regulated by the [[Federal Trade Commission]] (FTC).<ref name=FTC>{{cite book|last1=Levinson|first1=Marc|title=The Meaning of "Made in U.S.A."|date=May 5, 2017|publisher=Congressional Research Service|location=Washington, DC|url=https://fas.org/sgp/crs/misc/R44755.pdf|access-date=24 October 2017}}</ref> |
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In general, goods imported into the United States must have a [[country of origin]] label unless excepted, but goods manufactured in the United States can be sold with no origin label unless explicitly required. U.S.-made goods that must bear an origin label include [[automobile]]s, [[textile]]s, [[wool]], and [[fur]] products. Any voluntary claims about the amount of U.S. content in other products must comply with the FTC's Made in USA policy.<ref name=FTC/> |
In general, goods imported into the United States must have a [[country of origin]] label unless excepted, but goods manufactured in the United States can be sold with no origin label unless explicitly required. U.S.-made goods that must bear an origin label include [[automobile]]s, [[textile]]s, [[wool]], and [[fur]] products. Any voluntary claims about the amount of U.S. content in other products must comply with the FTC's Made in USA policy.<ref name=FTC/> |
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A Made in USA claim can be expressed (for example, "American-made") or implied. In identifying implied claims, the Commission focuses on the overall impression of the advertising, label, or promotional material. Depending on the context, U.S. symbols or geographic references (for example, U.S. flags, outlines of U.S. maps, or references to U.S. locations of headquarters or factories) may convey a claim of U.S. origin either by themselves or in conjunction with other phrases or images.<ref name=FTC/> |
A Made in USA claim can be expressed (for example, "American-made") or implied. In identifying implied claims, the Commission focuses on the overall impression of the advertising, label, or promotional material. Depending on the context, U.S. symbols or geographic references (for example, U.S. flags, outlines of U.S. maps, or references to U.S. locations of headquarters or factories) may convey a claim of U.S. origin either by themselves or in conjunction with other phrases or images.<ref name=FTC/> |
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In May 1997, the FTC published its proposal that the requirement be stated as:<ref>{{cite web|url=http://www.ftc.gov/opa/1997/05/examples.shtm |title=Examples Of Applications |publisher=Ftc.gov |date=2011-06-24 | |
In May 1997, the FTC published its proposal that the requirement be stated as:<ref>{{cite web|url=http://www.ftc.gov/opa/1997/05/examples.shtm |title=Examples Of Applications |publisher=Ftc.gov |date=2011-06-24 |access-date=2012-10-23}}</ref> |
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{{quote|It will not be considered a deceptive practice for a marketer to make an unqualified U.S. origin claim if, at the time it makes the claim, the marketer possesses and relies upon competent and reliable evidence that: (1) U.S. manufacturing costs constitute 75% of the manufacturing costs for the product; and (2) the product was last substantially transformed in the United States.<!--<ref>{{cite web|url=https://verity.bz/en/|title=Home|website=Verity International Ltd.}}</ref> Dead url -->}} |
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However, this was just a proposal and never became part of the final guidelines published in the [[Federal Register]] in 1997.<ref>{{cite web |url=http://www.ftc.gov/opp/madeusa2/62fr63755.pdf |title=Document | |
However, this was just a proposal and never became part of the final guidelines published in the [[Federal Register]] in 1997.<ref>{{cite web |url=http://www.ftc.gov/opp/madeusa2/62fr63755.pdf |title=Document |access-date=2012-10-23 |archive-url=https://web.archive.org/web/20120926080852/http://www.ftc.gov/opp/madeusa2/62fr63755.pdf |archive-date=2012-09-26 |url-status=dead }}</ref> |
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[[File:COLLECTIE TROPENMUSEUM Luciferdoos met propaganda-opschrift van de Japanners TMnr 3934-56b.jpg|thumb|Matchbox]] |
[[File:COLLECTIE TROPENMUSEUM Luciferdoos met propaganda-opschrift van de Japanners TMnr 3934-56b.jpg|thumb|Matchbox]] |
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== Assembled in USA == |
== Assembled in USA == |
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A product that includes foreign components may be called "Assembled in USA" without qualification when its principal assembly takes place in the U.S. and the assembly is substantial. For the "assembly" claim to be valid, the product's "[[last substantial transformation]]" also should have occurred in the |
A product that includes foreign components may be called "Assembled in USA" without qualification when its principal assembly takes place in the U.S. and the assembly is substantial. For the "assembly" claim to be valid, the product's "[[last substantial transformation]]" also should have occurred in the United States. A "screwdriver" assembly in the U.S. of foreign components into a final product at the end of the manufacturing process does not usually qualify for the "Assembled in USA" claim.{{citation needed|date=July 2018}} |
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== Regulation == |
== Regulation == |
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{{Main|Country of origin}} |
{{Main|Country of origin}} |
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Country of origin labels are required on textiles, wools, furs, automobiles, most foods, and many other imports.{{cn|reason=how does this relate to made in usa specifically|date=January 2019}} |
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== Customs fraud == |
== Customs fraud == |
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==Urban myth== |
==Urban myth== |
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A rumour spread that products made in a town named "[[Usa, Ōita]]" located in [[Ōita Prefecture]], |
A rumour spread that products made in a town named "[[Usa, Ōita]]" located in [[Ōita Prefecture]], Japan and exported to the US in the 1960s carried the label ''MADE IN USA, JAPAN'', to create the appearance that the product was made in the US. It is, however, a myth that Japan renamed the town "Usa" following [[World War II]] so that goods exported from Japan could be labeled as such. The town has existed from the [[Nara period|8th century]] (see [[Usa Jingū]]), predating the existence of the "United States of America" (first used in the 1776 [[United States Declaration of Independence]]) by more than a millennium, and is not a major manufacturing center; furthermore, the [[United States Customs Service]] would probably have recognized such labeling, had it occurred, as fraudulent and thus would have prohibited goods so labeled from being imported into the United States.<ref>{{cite web|url=http://www.snopes.com/business/genius/usa.asp |title=Made in USA |publisher=snopes.com |date=2011-07-08 |access-date=2012-10-23}}</ref> |
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== Significance == |
== Significance == |
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Many manufacturers use the |
Many manufacturers use the ''Made in the U.S.A.'' label as a selling point with varying degrees of success. This tag is associated with marketing and operational benefits, such as more appeal to certain buyers and lower shipping costs. When an American consumer sees a product is made in the U.S., the thinking goes, the consumer may perceive it as higher quality than a foreign-made version.<ref name=":0">{{cite journal |last1=Ha‐Brookshire |first1=Jung |last2=Yoon |first2=So‐Hyang |title=Country of origin factors influencing US consumers' perceived price for multinational products |journal=Journal of Consumer Marketing |date=7 September 2012 |volume=29 |issue=6 |pages=445–454 |doi=10.1108/07363761211259250 }}</ref> The decision where to produce is based on many factors, not simply direct product costs. Marketing and operations are both affected greatly by producing domestically. |
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=== Marketing significance === |
=== Marketing significance === |
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Many companies highlight the fact a product is made in the U.S. with their branding and marketing campaigns, benefitting from the huge marketing potential, often affecting the success of a product. Country of origin is a typical heuristic used when purchasing,<ref>Cattin |
Many companies highlight the fact a product is made in the U.S. with their branding and marketing campaigns, benefitting from the huge marketing potential, often affecting the success of a product. Country of origin is a typical heuristic used when purchasing,<ref>{{cite journal |last1=Cattin |first1=Philippe |last2=Jolibert |first2=Alain |last3=Lohnes |first3=Colleen |title=A Cross-Cultural Study of 'Made in' Concepts |journal=Journal of International Business Studies |date=September 1982 |volume=13 |issue=3 |pages=131–141 |doi=10.1057/palgrave.jibs.8490564 |s2cid=168131071 }}</ref> playing a significant role in consumer perception and evaluation since some consumers believe domestic products offer higher value and less risk.<ref name=":0" /> |
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==== Automotive ==== |
==== Automotive ==== |
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For years American car brands have used this as a differentiating point. Supporting companies such as [[Ford Motor Company|Ford]] was thought of as patriotic. Twenty-eight percent of Americans have said they would only buy American vehicles.<ref>{{Cite news|url=http://www.fool.com/investing/general/2015/07/24/detroit-automakers-truth-about-american-made-vehi.aspx|title=Detroit Automakers: The Truth About American-Made Vehicles -- The Motley Fool|last=Miller|first=Daniel|date=2016-10-28|newspaper=The Motley Fool|access-date=2016-10-28}}</ref> There was a large push from domestic automakers after foreign competition entered the market in the 1980s. Ford placed ads to all Americans highlighting that they made quality cars.<ref>{{Cite web|url=http://adage.com/article/adage-encyclopedia/history-1980s/98704/|title=History: 1980s |
For years, American car brands have used this as a differentiating point. Supporting companies such as [[Ford Motor Company|Ford]] was thought of as patriotic. Twenty-eight percent of Americans have said they would only buy American vehicles.<ref>{{Cite news|url=http://www.fool.com/investing/general/2015/07/24/detroit-automakers-truth-about-american-made-vehi.aspx|title=Detroit Automakers: The Truth About American-Made Vehicles -- The Motley Fool|last=Miller|first=Daniel|date=2016-10-28|newspaper=The Motley Fool|access-date=2016-10-28}}</ref> There was a large push from domestic automakers after foreign competition entered the market in the 1980s. Ford placed ads to all Americans highlighting that they made quality cars.<ref>{{Cite web|url=http://adage.com/article/adage-encyclopedia/history-1980s/98704/|title=History: 1980s|date=September 15, 2003|website=Adage|access-date=November 28, 2016}}</ref> Chrysler also needed to reclaim market share from foreign competitors. They created commercials about American cars that were made by Americans with American parts.<ref>{{Cite web|url=https://www.theverge.com/2014/9/19/6533493/car-commercials-from-the-1980s-were-completely-insane|title=Car commercials from the 1980s were completely insane|last=Sottek|first=T. C.|date=2014-09-19|website=The Verge|access-date=2016-11-28}}</ref> In recent years, the trend has changed as [[Cars.com]]'s 2016 American-Made Index for that year showed that many [[Honda]]s and [[Toyota]]s are among the top "American-made" automobiles.<ref>{{cite web |url=https://www.cars.com/articles/the-2016-carscom-american-made-index-1420684865874/ |title = The 2016 Cars.com American-Made Index {{!}} News {{!}} Cars.com}}</ref> |
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==== Apparel ==== |
==== Apparel ==== |
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[[File:Karlie Kloss at Anna Sui 2011.jpg|thumb|right|200px|[[Karlie Kloss]] showcases an [[Anna Sui]] dress at [[New York Fashion Week]], Sui's collections have been designed and manufactured in New York's [[Garment Center]] since 1981.]] |
[[File:Karlie Kloss at Anna Sui 2011.jpg|thumb|right|200px|[[Karlie Kloss]] showcases an [[Anna Sui]] dress at [[New York Fashion Week]], Sui's collections have been designed and manufactured in New York's [[Garment Center]] since 1981.]] |
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Due to concerns about the exploitation of non-American workers in sweatshops, products bearing a Made in the USA label can appeal to American consumers seeking high-quality products produced domestically under American labor and environmental laws. Until it shut down [[brick and mortar]] stores in 2017, [[American Apparel]], which had been producing in Los Angeles since 1989, was the largest garment manufacturer in North America. The company's CEO was committed to social responsibility, and offered factory workers careers with benefits and pay significantly higher than that of their overseas counterparts. When they shuttered, 2,400 employees were left unemployed.<ref name="auto">{{cite web |last1=Li |first1=Shan |title=American Apparel starts mass layoffs as company winds down operations |url=https://www.latimes.com/business/la-fi-american-apparel-layoffs-20170116-story.html |date=January 16, 2017 |access-date=May 8, 2019 |url-status=live |archive-url=https://web.archive.org/web/20190807212817/https://www.latimes.com/business/la-fi-american-apparel-layoffs-20170116-story.html |archive-date=August 7, 2019 |quote=Broncs Inc., a Compton textile manufacturer, bought American Apparel’s Garden Grove knitting and dyeing facility and will keep about 200 employees. Zack Hurley, chief executive of Indie Source, said he plans to hire at least a few dozen American Apparel workers for his contract manufacturing facility in downtown Los Angeles.}}</ref> After being purchased by [[Gildan Activewear]], American Apparel returned as an online-only retailer with most of its apparel sourced from factories in Central America, primarily [[Honduras]] and [[Nicaragua]].<ref name="Guardian-AA-Honduras">{{cite news |last=Ibrahim |first=Noor |date=2017-11-12 |title=The new American Apparel: claims of 'ethically made' abroad clash with reality |url=https://www.theguardian.com/business/2017/nov/12/the-new-american-apparel-claims-of-ethically-made-abroad-clash-with-reality |url-status=live |work=The Guardian |
Due to concerns about the exploitation of non-American workers in sweatshops, products bearing a Made in the USA label can appeal to American consumers seeking high-quality products produced domestically under American labor and environmental laws. Until it shut down [[brick and mortar]] stores in 2017, [[American Apparel]], which had been producing in Los Angeles since 1989, was the largest garment manufacturer in North America. The company's CEO was committed to social responsibility, and offered factory workers careers with benefits and pay significantly higher than that of their overseas counterparts. When they shuttered, 2,400 employees were left unemployed.<ref name="auto">{{cite web |last1=Li |first1=Shan |title=American Apparel starts mass layoffs as company winds down operations |website=[[Los Angeles Times]] |url=https://www.latimes.com/business/la-fi-american-apparel-layoffs-20170116-story.html |date=January 16, 2017 |access-date=May 8, 2019 |url-status=live |archive-url=https://web.archive.org/web/20190807212817/https://www.latimes.com/business/la-fi-american-apparel-layoffs-20170116-story.html |archive-date=August 7, 2019 |quote=Broncs Inc., a Compton textile manufacturer, bought American Apparel’s Garden Grove knitting and dyeing facility and will keep about 200 employees. Zack Hurley, chief executive of Indie Source, said he plans to hire at least a few dozen American Apparel workers for his contract manufacturing facility in downtown Los Angeles.}}</ref> After being purchased by [[Gildan Activewear]], American Apparel returned as an online-only retailer with most of its apparel sourced from factories in Central America, primarily [[Honduras]] and [[Nicaragua]].<ref name="Guardian-AA-Honduras">{{cite news |last=Ibrahim |first=Noor |date=2017-11-12 |title=The new American Apparel: claims of 'ethically made' abroad clash with reality |url=https://www.theguardian.com/business/2017/nov/12/the-new-american-apparel-claims-of-ethically-made-abroad-clash-with-reality |url-status=live |work=The Guardian |archive-url=https://web.archive.org/web/20190917231226/https://www.theguardian.com/business/2017/nov/12/the-new-american-apparel-claims-of-ethically-made-abroad-clash-with-reality |archive-date=2019-09-17 |access-date=2020-05-24 |quote=American Apparel then reopened as an online-only retailer, and by February, it swapped its “Made in USA” mantra with the phrase “Globally-Sourced,” as most of its apparel is now sourced from factories based in Central America, primarily in Honduras. }}</ref><ref name="QZ-AA-Outside-America">{{cite news |last=Bain |first=Marc |date=April 7, 2017 |title=American Apparel is making its first products outside America |url=https://qz.com/953308/american-apparel-owned-by-gildan-gil-is-making-its-first-products-outside-america/ |work=qz.com |location= <!--QZ.com gives a 404 error in archive.org--> |quote=For the first time, however, products bearing the American Apparel name will have tags that read “Made in Honduras” and “Made in Nicaragua.”}}</ref> [[Los Angeles Apparel]], the new manufacturer, designer and distributor led by [[Dov Charney]], the former CEO of [[American Apparel]], hired back 350,{{cn|date=May 2020}} 200 employees were hired by Broncs Inc., and Zack Hurley, CEO of [[Indie Source]] committed to hiring "at least a few dozen".<ref>{{cite news |last=Sauer |first=Abe |title=American Apparel's Dov Charney Is Back With Los Angeles Apparel |url=http://brandchannel.com/2017/06/26/dov-charney-los-angeles-apparel/ |website=Brandchannel |access-date=May 8, 2019|date=June 26, 2017 |url-status=live |archive-url=https://web.archive.org/web/20180627193030/http://brandchannel.com/2017/06/26/dov-charney-los-angeles-apparel/ |archive-date=2018-06-27}}</ref><ref name="auto"/> |
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==== Food ==== |
==== Food ==== |
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After worker protests and bribery investigations, [[Walmart]], the largest grocery store in the world, has pledged to source $50 billion in products from the US over the next ten years.<ref>{{Cite news|url=https://www.usatoday.com/story/money/personalfinance/2013/01/21/made-in-usa-trend/1785539/|title=Made in USA makes comeback as a marketing tool|newspaper=USA TODAY|access-date=2016-10-26}}</ref> Companies such as [[Tropicana Products|Tropicana]] sold their orange juice as being 100% native to Florida. In the late 2000s decade, they started to mix oranges from Brazil, and Florida's Natural saw this as an opportunity to place "Made in the USA" on their cartons. After Tropicana returned to only using Florida oranges several years later, Florida's Natural updated their ads saying "All Florida. Never imported. Who can say that?"<ref>{{cite news |last1=Elliott |first1=Stuart |title=This Column Was 100% Made in America |url=https://www.nytimes.com/2012/02/16/business/media/made-in-america-resonates-with-marketers.html |work=The New York Times |date=15 February 2012 }}</ref> |
After worker protests and bribery investigations, [[Walmart]], the largest grocery store in the world, has pledged to source $50 billion in products from the US over the next ten years.<ref>{{Cite news|url=https://www.usatoday.com/story/money/personalfinance/2013/01/21/made-in-usa-trend/1785539/|title=Made in USA makes comeback as a marketing tool|newspaper=USA TODAY|access-date=2016-10-26}}</ref> Companies such as [[Tropicana Products|Tropicana]] sold their orange juice as being 100% native to Florida. In the late 2000s decade, they started to mix oranges from Brazil, and Florida's Natural saw this as an opportunity to place "Made in the USA" on their cartons. After Tropicana returned to only using Florida oranges several years later, Florida's Natural updated their ads saying "All Florida. Never imported. Who can say that?".<ref>{{cite news |last1=Elliott |first1=Stuart |title=This Column Was 100% Made in America |url=https://www.nytimes.com/2012/02/16/business/media/made-in-america-resonates-with-marketers.html |work=The New York Times |date=15 February 2012 }}</ref> |
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=== Operational significance === |
=== Operational significance === |
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Companies that make products in the US also see benefits in their supply chain. Not all benefits are directly seen in cash flows immediately. Aspects like communication are simply improved, which may have effects that are not seen in the short run. The trend towards overseas factories has resulted in complications for companies of all sizes, ranging from quality to timeline issues.{{ |
Companies that make products in the US also see benefits in their supply chain. Not all benefits are directly seen in cash flows immediately. Aspects like communication are simply improved, which may have effects that are not seen in the short run. The trend towards overseas factories has resulted in complications for companies of all sizes, ranging from quality to timeline issues.{{citation needed|date=August 2020}} |
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==== Financial ==== |
==== Financial ==== |
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==== Non-financial ==== |
==== Non-financial ==== |
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Companies also benefit from non-direct cost ways of making in the US. The US has the most [[productivity|productive]] workforce.<ref> |
Companies also benefit from non-direct cost ways of making in the US. The US has the most [[productivity|productive]] workforce.<ref>{{cite journal |title=MADE IN U.S.A. Is American competitiveness slipping? |journal=Great Decisions |date=1981 |pages=63–72 |jstor=43680988 }}</ref> Costs are higher for these factories but the workers are more effective than their abroad counterparts. China historically was a cheap place to manufacture. This led to the thriving apparel factories. As currency appreciates and wages rise, people are moving to low-cost areas in south-east Asia, and also coming back to the US. China's prices are rising and time to market is becoming increasingly important.<ref>{{cite news |last1=Flannery |first1=Russell |title=Cambodia Factory Shootings Underscore Shifts, Openings In The Global Apparel Business |url=https://www.forbes.com/sites/russellflannery/2014/01/16/cambodia-factory-shootings-underscore-shifts-openings-in-the-global-apparel-business/ |work=Forbes |date=16 January 2014 }}</ref> Communication is difficult as well for companies that produce in areas where another language is spoken. The general manager of a [[Haier]] plant in Camden, South Carolina Bernie Tymkiw has been quoted saying, “We just don't have the brainstorming ability because of language.”<ref>{{cite journal |last1=Biers |first1=Dan |date=29 March 2001 |title=A taste of China in Camden |journal=Far Eastern Economic Review |volume=164 |issue=12 |page=54 |id={{ProQuest|208230365}} }}</ref> The cultural disconnect can prove to be a significant barrier with global companies. |
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Supply chains are more agile using local suppliers. There is a greater control over orders. High-end designers like being very close to their factories, as they have full control of the product quality that is leaving the assembly line. This is necessary to keep their high standards.<ref name=":1" /> One can visit their factory as often as necessary. This plays an important role in auditing the production process. An online article about the luxury apparel maker company [[Everlane]] led to over 2,000 shirts sales in a single day.<ref name=":2">Wang J. American beauty there's a rebound in domestic production. ''Entrepreneur''. 2012:70-71.{{vs}}</ref> A shirt restock from China may have taken three months, whereas they were able to do it in under one month.<ref name=":2" /> Being closer to the factory can aid in shipping costs and time. |
Supply chains are more agile using local suppliers. There is a greater control over orders. High-end designers like being very close to their factories, as they have full control of the product quality that is leaving the assembly line. This is necessary to keep their high standards.<ref name=":1" /> One can visit their factory as often as necessary. This plays an important role in auditing the production process. An online article about the luxury apparel maker company [[Everlane]] led to over 2,000 shirts sales in a single day.<ref name=":2">Wang J. American beauty there's a rebound in domestic production. ''Entrepreneur''. 2012:70-71.{{vs|date=August 2020}}</ref> A shirt restock from China may have taken three months, whereas they were able to do it in under one month.<ref name=":2" /> Being closer to the factory can aid in shipping costs and time. |
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== Examples == |
== Examples == |
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[[File:Mulled cider scented candle.jpg|thumb|302x302px|A scented candle with a sticker that says "Made in the USA with 90% or more US parts"]] |
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According to the FTC, |
According to the FTC, ''Made in USA'' means that “all or virtually all” the product has been made in the United States of America. The product should contain only negligible foreign content.<ref>{{cite web|url=https://www.ftc.gov/news-events/media-resources/tools-consumers/made-usa |title=Made in USA - Federal Trade Commission |publisher=ftc.gov |date=2020-05-24 |access-date=2020-05-24 |quote=Made in USA means that “all or virtually all” the product has been made in America. That is, all significant parts, processing, and labor that go into the product must be of U.S. origin. Products should not contain any – or should contain only negligible – foreign content.}}</ref> The FTC Enforcement Policy Statement on U.S. Origin Claims says there is no single "bright line" determining what "all or substantially all" means.<ref name="FTC-Policy">{{cite web |url=https://www.ftc.gov/public-statements/1997/12/enforcement-policy-statement-us-origin-claims |title=Enforcement Policy Statement on U.S. Origin Claims - Federal Trade Commission |author=<!--Not stated--> |date=December 1, 1997 |website=ftc.gov |publisher=[[Federal Trade Commission]] |access-date=May 25, 2020 |url-status=live |archive-url=https://web.archive.org/web/20200412071723/https://www.ftc.gov/public-statements/1997/12/enforcement-policy-statement-us-origin-claims |archive-date=April 12, 2020 |quote=A product that is all or virtually all made in the United States will ordinarily be one in which all significant parts and processing that go into the product are of U.S. origin. }}</ref> The minimum requirement is that the final assembly or processing of the product must take place within the United States. Examples are given on the FTC site; a barbecue grill made of components made in the US with the exception of the knobs may be called "Made in USA" while a garden tool with an imported motor may not. |
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==Controversial use of label== |
==Controversial use of label== |
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Goods produced in [[American Samoa]] (a United States territory) are entitled to attach a "''Made in USA''" label, as this is an [[insular area]] of the United States. This area has had few of the labor and safety regulations required of United States employers within the [[Contiguous United States]] until recently, and there have been a number of cases of manufacturers using a labor force imported from South and East Asia. The [[Northern Mariana Islands]] is another U.S. territory in the Pacific that was exempted from certain U.S. wage and immigration laws until 2007, where the use of the "Made in USA" label was likewise controversial. The label is controversial also since all U.S. insular areas, except [[Puerto Rico]], operate under a [[customs territory]] separate from the U.S., making their products technically imports when sold in the United States proper.<ref>{{Cite web|website=U.S. Government Accountability Office|date=2017-05-18|title=Commonwealth of the Northern Mariana Islands: Implementation of Federal Minimum Wage and Immigration Laws|url=https://www.gao.gov/products/GAO-17-437|issue=GAO-17-437}}</ref><ref>{{Cite news|url=https://www.uscis.gov/legal-resources/immigration-commonwealth-northern-mariana-islands-cnmi/us-immigration-law-commonwealth-northern-mariana-islands-cnmi|title=U.S. Immigration Law in the Commonwealth of the Northern Mariana Islands (CNMI)|work=USCIS|access-date=2018-10-16|language=en}}</ref> |
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== FTC enforcement == |
== FTC enforcement == |
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In March 2020, the FTC announced a settlement with [[Williams-Sonoma, Inc.]] over [[false advertising]] claims where Goldtouch Bakeware products, Rejuvenation-branded products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture products were falsely advertised as |
In March 2020, the FTC announced a settlement with [[Williams-Sonoma, Inc.]] over [[false advertising]] claims where Goldtouch Bakeware products, Rejuvenation-branded products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture products were falsely advertised as Made in the USA. As part of the settlement with the FTC, Williams-Sonoma, Inc. agreed to stop making false, misleading, or unsubstantiated ‘Made in the USA’ claims and is required to pay $1 million to the FTC.<ref name="FTC-Williams-Sonoma">{{cite news |last=Kreidler |first=Jim |date=April 1, 2020 |title=Williams-Sonoma: Made in the USA? |url=https://www.consumer.ftc.gov/blog/2020/04/williams-sonoma-made-usa |url-status=live |work=Federal Trade Commission |archive-url=https://web.archive.org/web/20200404085519/https://www.consumer.ftc.gov/blog/2020/04/williams-sonoma-made-usa |archive-date=April 4, 2020 |access-date=May 23, 2020}}</ref><ref>{{cite web |url=https://www.ftc.gov/system/files/documents/cases/202_3025_williams-sonoma_admin_complaint.pdf |title=Complaint |author1=Joseph J. Simons, Chairman |website=ftc.gov |publisher=Federal Trade Commission |access-date=May 23, 2020 |url-status=live |archive-url=https://web.archive.org/web/20200404100455/https://www.ftc.gov/system/files/documents/cases/202_3025_williams-sonoma_admin_complaint.pdf |archive-date=April 4, 2020 |quote=The acts and practices of Respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act. }}</ref> |
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In June 2016, the FTC ordered [[Shinola Detroit]] to stop using "Where American is Made" as a slogan as "100% of the cost of materials used to make certain watches is attributable to imported materials |
In June 2016, the FTC ordered [[Shinola Detroit]] to stop using "Where American is Made" as a slogan as "100% of the cost of materials used to make certain watches is attributable to imported materials".<ref>{{cite web|url=https://www.hodinkee.com/articles/ftc-takes-major-action-against-shinola-demands-where-american-is-made-slogan-to-be-dropped-immediately|title=Breaking News: FTC Takes Action Against Shinola, Suggests 'Where American Is Made' Slogan Be Dropped|first=Nicholas|last=Manousos|date=June 17, 2016|website=Hodinkee}}</ref> Today, the Ronda [[watch movement|movements]] are made in [[Bangkok]], Thailand. The dials, hands, cases, crystals, and buckles are manufactured in [[Guangdong]], China. |
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==See also== |
==See also== |
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*[[American nationalism]] |
* [[American nationalism]] |
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*[[Buy American Act]] |
* [[Buy American Act]] |
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*[[Country of origin]] |
* [[Country of origin]] |
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*[[Saipan#Controversy|Saipan's Federal Regulation Exemptions]] |
* [[Saipan#Controversy|Saipan's Federal Regulation Exemptions]] |
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* [[Swiss Made]] |
* [[Swiss Made]] |
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* [[Manufacturing in the United States]] |
* [[Manufacturing in the United States]] |
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==External links== |
==External links== |
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{{Commons category| |
{{Commons category|Made in USA}} |
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* [http://www.ftc.gov/bcp/edu/pubs/business/adv/bus03.shtm Complying with the Made In the USA Standard], FTC |
* [http://www.ftc.gov/bcp/edu/pubs/business/adv/bus03.shtm Complying with the Made In the USA Standard], FTC |
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{{Economy of the United States}} |
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{{COO}} |
{{COO}} |
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Revision as of 17:08, 3 July 2024
![](http://upload.wikimedia.org/wikipedia/commons/thumb/d/d9/Ford_Hubcap_Made_in_USA.jpg/220px-Ford_Hubcap_Made_in_USA.jpg)
A Made in USA mark is a country of origin label affixed to American-made products that indicates the product is "all or virtually all" domestically produced, manufactured and assembled in the United States of America. The label is regulated by the Federal Trade Commission (FTC).[1]
In general, goods imported into the United States must have a country of origin label unless excepted, but goods manufactured in the United States can be sold with no origin label unless explicitly required. U.S.-made goods that must bear an origin label include automobiles, textiles, wool, and fur products. Any voluntary claims about the amount of U.S. content in other products must comply with the FTC's Made in USA policy.[1]
A Made in USA claim can be expressed (for example, "American-made") or implied. In identifying implied claims, the Commission focuses on the overall impression of the advertising, label, or promotional material. Depending on the context, U.S. symbols or geographic references (for example, U.S. flags, outlines of U.S. maps, or references to U.S. locations of headquarters or factories) may convey a claim of U.S. origin either by themselves or in conjunction with other phrases or images.[1]
In May 1997, the FTC published its proposal that the requirement be stated as:[2]
It will not be considered a deceptive practice for a marketer to make an unqualified U.S. origin claim if, at the time it makes the claim, the marketer possesses and relies upon competent and reliable evidence that: (1) U.S. manufacturing costs constitute 75% of the manufacturing costs for the product; and (2) the product was last substantially transformed in the United States.
However, this was just a proposal and never became part of the final guidelines published in the Federal Register in 1997.[3]
![](http://upload.wikimedia.org/wikipedia/commons/thumb/8/8b/COLLECTIE_TROPENMUSEUM_Luciferdoos_met_propaganda-opschrift_van_de_Japanners_TMnr_3934-56b.jpg/220px-COLLECTIE_TROPENMUSEUM_Luciferdoos_met_propaganda-opschrift_van_de_Japanners_TMnr_3934-56b.jpg)
Assembled in USA
A product that includes foreign components may be called "Assembled in USA" without qualification when its principal assembly takes place in the U.S. and the assembly is substantial. For the "assembly" claim to be valid, the product's "last substantial transformation" also should have occurred in the United States. A "screwdriver" assembly in the U.S. of foreign components into a final product at the end of the manufacturing process does not usually qualify for the "Assembled in USA" claim.[citation needed]
Regulation
Country of origin labels are required on textiles, wools, furs, automobiles, most foods, and many other imports.[citation needed]
Customs fraud
Examples of fraudulent practices involving imports include removing a required foreign origin label before the product is even delivered to the ultimate purchaser (with or without the improper substitution of a Made in USA label) and failing to label a product with the required country of origin.[citation needed]
Urban myth
A rumour spread that products made in a town named "Usa, Ōita" located in Ōita Prefecture, Japan and exported to the US in the 1960s carried the label MADE IN USA, JAPAN, to create the appearance that the product was made in the US. It is, however, a myth that Japan renamed the town "Usa" following World War II so that goods exported from Japan could be labeled as such. The town has existed from the 8th century (see Usa Jingū), predating the existence of the "United States of America" (first used in the 1776 United States Declaration of Independence) by more than a millennium, and is not a major manufacturing center; furthermore, the United States Customs Service would probably have recognized such labeling, had it occurred, as fraudulent and thus would have prohibited goods so labeled from being imported into the United States.[4]
Significance
Many manufacturers use the Made in the U.S.A. label as a selling point with varying degrees of success. This tag is associated with marketing and operational benefits, such as more appeal to certain buyers and lower shipping costs. When an American consumer sees a product is made in the U.S., the thinking goes, the consumer may perceive it as higher quality than a foreign-made version.[5] The decision where to produce is based on many factors, not simply direct product costs. Marketing and operations are both affected greatly by producing domestically.
Marketing significance
Many companies highlight the fact a product is made in the U.S. with their branding and marketing campaigns, benefitting from the huge marketing potential, often affecting the success of a product. Country of origin is a typical heuristic used when purchasing,[6] playing a significant role in consumer perception and evaluation since some consumers believe domestic products offer higher value and less risk.[5]
Automotive
For years, American car brands have used this as a differentiating point. Supporting companies such as Ford was thought of as patriotic. Twenty-eight percent of Americans have said they would only buy American vehicles.[7] There was a large push from domestic automakers after foreign competition entered the market in the 1980s. Ford placed ads to all Americans highlighting that they made quality cars.[8] Chrysler also needed to reclaim market share from foreign competitors. They created commercials about American cars that were made by Americans with American parts.[9] In recent years, the trend has changed as Cars.com's 2016 American-Made Index for that year showed that many Hondas and Toyotas are among the top "American-made" automobiles.[10]
Apparel
![](http://upload.wikimedia.org/wikipedia/commons/thumb/7/78/Karlie_Kloss_at_Anna_Sui_2011.jpg/200px-Karlie_Kloss_at_Anna_Sui_2011.jpg)
Due to concerns about the exploitation of non-American workers in sweatshops, products bearing a Made in the USA label can appeal to American consumers seeking high-quality products produced domestically under American labor and environmental laws. Until it shut down brick and mortar stores in 2017, American Apparel, which had been producing in Los Angeles since 1989, was the largest garment manufacturer in North America. The company's CEO was committed to social responsibility, and offered factory workers careers with benefits and pay significantly higher than that of their overseas counterparts. When they shuttered, 2,400 employees were left unemployed.[11] After being purchased by Gildan Activewear, American Apparel returned as an online-only retailer with most of its apparel sourced from factories in Central America, primarily Honduras and Nicaragua.[12][13] Los Angeles Apparel, the new manufacturer, designer and distributor led by Dov Charney, the former CEO of American Apparel, hired back 350,[citation needed] 200 employees were hired by Broncs Inc., and Zack Hurley, CEO of Indie Source committed to hiring "at least a few dozen".[14][11]
Food
After worker protests and bribery investigations, Walmart, the largest grocery store in the world, has pledged to source $50 billion in products from the US over the next ten years.[15] Companies such as Tropicana sold their orange juice as being 100% native to Florida. In the late 2000s decade, they started to mix oranges from Brazil, and Florida's Natural saw this as an opportunity to place "Made in the USA" on their cartons. After Tropicana returned to only using Florida oranges several years later, Florida's Natural updated their ads saying "All Florida. Never imported. Who can say that?".[16]
Operational significance
Companies that make products in the US also see benefits in their supply chain. Not all benefits are directly seen in cash flows immediately. Aspects like communication are simply improved, which may have effects that are not seen in the short run. The trend towards overseas factories has resulted in complications for companies of all sizes, ranging from quality to timeline issues.[citation needed]
Financial
Some direct costs are decreased as a result of using domestic factories. Shipping is simpler and faster when there is no need to deal with customs. US factories offer more flexible production runs, which can be appealing to new companies or new products.[17] These offer prices and quantities closer to what companies require. Research shows that reduced tariff rates are reflected immediately in lower clothing prices.[18] This suggests that the price of an imported good directly includes the tariff paid to import it. By producing in the US, this price increase is avoided.
Non-financial
Companies also benefit from non-direct cost ways of making in the US. The US has the most productive workforce.[19] Costs are higher for these factories but the workers are more effective than their abroad counterparts. China historically was a cheap place to manufacture. This led to the thriving apparel factories. As currency appreciates and wages rise, people are moving to low-cost areas in south-east Asia, and also coming back to the US. China's prices are rising and time to market is becoming increasingly important.[20] Communication is difficult as well for companies that produce in areas where another language is spoken. The general manager of a Haier plant in Camden, South Carolina Bernie Tymkiw has been quoted saying, “We just don't have the brainstorming ability because of language.”[21] The cultural disconnect can prove to be a significant barrier with global companies.
Supply chains are more agile using local suppliers. There is a greater control over orders. High-end designers like being very close to their factories, as they have full control of the product quality that is leaving the assembly line. This is necessary to keep their high standards.[17] One can visit their factory as often as necessary. This plays an important role in auditing the production process. An online article about the luxury apparel maker company Everlane led to over 2,000 shirts sales in a single day.[22] A shirt restock from China may have taken three months, whereas they were able to do it in under one month.[22] Being closer to the factory can aid in shipping costs and time.
Examples
![](http://upload.wikimedia.org/wikipedia/commons/thumb/0/08/Mulled_cider_scented_candle.jpg/200px-Mulled_cider_scented_candle.jpg)
According to the FTC, Made in USA means that “all or virtually all” the product has been made in the United States of America. The product should contain only negligible foreign content.[23] The FTC Enforcement Policy Statement on U.S. Origin Claims says there is no single "bright line" determining what "all or substantially all" means.[24] The minimum requirement is that the final assembly or processing of the product must take place within the United States. Examples are given on the FTC site; a barbecue grill made of components made in the US with the exception of the knobs may be called "Made in USA" while a garden tool with an imported motor may not.
Controversial use of label
Goods produced in American Samoa (a United States territory) are entitled to attach a "Made in USA" label, as this is an insular area of the United States. This area has had few of the labor and safety regulations required of United States employers within the Contiguous United States until recently, and there have been a number of cases of manufacturers using a labor force imported from South and East Asia. The Northern Mariana Islands is another U.S. territory in the Pacific that was exempted from certain U.S. wage and immigration laws until 2007, where the use of the "Made in USA" label was likewise controversial. The label is controversial also since all U.S. insular areas, except Puerto Rico, operate under a customs territory separate from the U.S., making their products technically imports when sold in the United States proper.[25][26]
FTC enforcement
In March 2020, the FTC announced a settlement with Williams-Sonoma, Inc. over false advertising claims where Goldtouch Bakeware products, Rejuvenation-branded products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture products were falsely advertised as Made in the USA. As part of the settlement with the FTC, Williams-Sonoma, Inc. agreed to stop making false, misleading, or unsubstantiated ‘Made in the USA’ claims and is required to pay $1 million to the FTC.[27][28]
In June 2016, the FTC ordered Shinola Detroit to stop using "Where American is Made" as a slogan as "100% of the cost of materials used to make certain watches is attributable to imported materials".[29] Today, the Ronda movements are made in Bangkok, Thailand. The dials, hands, cases, crystals, and buckles are manufactured in Guangdong, China.
See also
- American nationalism
- Buy American Act
- Country of origin
- Saipan's Federal Regulation Exemptions
- Swiss Made
- Manufacturing in the United States
- Made in America (disambiguation)
- Made in America Festival
References
- ^ a b c Levinson, Marc (May 5, 2017). The Meaning of "Made in U.S.A." (PDF). Washington, DC: Congressional Research Service. Retrieved October 24, 2017.
- ^ "Examples Of Applications". Ftc.gov. June 24, 2011. Retrieved October 23, 2012.
- ^ "Document" (PDF). Archived from the original (PDF) on September 26, 2012. Retrieved October 23, 2012.
- ^ "Made in USA". snopes.com. July 8, 2011. Retrieved October 23, 2012.
- ^ a b Ha‐Brookshire, Jung; Yoon, So‐Hyang (September 7, 2012). "Country of origin factors influencing US consumers' perceived price for multinational products". Journal of Consumer Marketing. 29 (6): 445–454. doi:10.1108/07363761211259250.
- ^ Cattin, Philippe; Jolibert, Alain; Lohnes, Colleen (September 1982). "A Cross-Cultural Study of 'Made in' Concepts". Journal of International Business Studies. 13 (3): 131–141. doi:10.1057/palgrave.jibs.8490564. S2CID 168131071.
- ^ Miller, Daniel (October 28, 2016). "Detroit Automakers: The Truth About American-Made Vehicles -- The Motley Fool". The Motley Fool. Retrieved October 28, 2016.
- ^ "History: 1980s". Adage. September 15, 2003. Retrieved November 28, 2016.
- ^ Sottek, T. C. (September 19, 2014). "Car commercials from the 1980s were completely insane". The Verge. Retrieved November 28, 2016.
- ^ "The 2016 Cars.com American-Made Index | News | Cars.com".
- ^ a b Li, Shan (January 16, 2017). "American Apparel starts mass layoffs as company winds down operations". Los Angeles Times. Archived from the original on August 7, 2019. Retrieved May 8, 2019.
Broncs Inc., a Compton textile manufacturer, bought American Apparel's Garden Grove knitting and dyeing facility and will keep about 200 employees. Zack Hurley, chief executive of Indie Source, said he plans to hire at least a few dozen American Apparel workers for his contract manufacturing facility in downtown Los Angeles.
- ^ Ibrahim, Noor (November 12, 2017). "The new American Apparel: claims of 'ethically made' abroad clash with reality". The Guardian. Archived from the original on September 17, 2019. Retrieved May 24, 2020.
American Apparel then reopened as an online-only retailer, and by February, it swapped its "Made in USA" mantra with the phrase "Globally-Sourced," as most of its apparel is now sourced from factories based in Central America, primarily in Honduras.
- ^ Bain, Marc (April 7, 2017). "American Apparel is making its first products outside America". qz.com.
For the first time, however, products bearing the American Apparel name will have tags that read "Made in Honduras" and "Made in Nicaragua."
- ^ Sauer, Abe (June 26, 2017). "American Apparel's Dov Charney Is Back With Los Angeles Apparel". Brandchannel. Archived from the original on June 27, 2018. Retrieved May 8, 2019.
- ^ "Made in USA makes comeback as a marketing tool". USA TODAY. Retrieved October 26, 2016.
- ^ Elliott, Stuart (February 15, 2012). "This Column Was 100% Made in America". The New York Times.
- ^ a b Rowan L. Made in America, maybe: The potential renaissance of domestic apparel manufacturing in the united states. Georgetown University; 2015.
- ^ Zigmantavičienė, Aida; Snieška, Vytautas (January 30, 2006). "Methods of Measurement of Non-tariff Barriers in the International Textile Trade". Engineering Economics. 46 (1): 13–19.
- ^ "MADE IN U.S.A. Is American competitiveness slipping?". Great Decisions: 63–72. 1981. JSTOR 43680988.
- ^ Flannery, Russell (January 16, 2014). "Cambodia Factory Shootings Underscore Shifts, Openings In The Global Apparel Business". Forbes.
- ^ Biers, Dan (March 29, 2001). "A taste of China in Camden". Far Eastern Economic Review. 164 (12): 54. ProQuest 208230365.
- ^ a b Wang J. American beauty there's a rebound in domestic production. Entrepreneur. 2012:70-71.[verification needed]
- ^ "Made in USA - Federal Trade Commission". ftc.gov. May 24, 2020. Retrieved May 24, 2020.
Made in USA means that "all or virtually all" the product has been made in America. That is, all significant parts, processing, and labor that go into the product must be of U.S. origin. Products should not contain any – or should contain only negligible – foreign content.
- ^ "Enforcement Policy Statement on U.S. Origin Claims - Federal Trade Commission". ftc.gov. Federal Trade Commission. December 1, 1997. Archived from the original on April 12, 2020. Retrieved May 25, 2020.
A product that is all or virtually all made in the United States will ordinarily be one in which all significant parts and processing that go into the product are of U.S. origin.
- ^ "Commonwealth of the Northern Mariana Islands: Implementation of Federal Minimum Wage and Immigration Laws". U.S. Government Accountability Office. May 18, 2017.
- ^ "U.S. Immigration Law in the Commonwealth of the Northern Mariana Islands (CNMI)". USCIS. Retrieved October 16, 2018.
- ^ Kreidler, Jim (April 1, 2020). "Williams-Sonoma: Made in the USA?". Federal Trade Commission. Archived from the original on April 4, 2020. Retrieved May 23, 2020.
- ^ Joseph J. Simons, Chairman. "Complaint" (PDF). ftc.gov. Federal Trade Commission. Archived (PDF) from the original on April 4, 2020. Retrieved May 23, 2020.
The acts and practices of Respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.
- ^ Manousos, Nicholas (June 17, 2016). "Breaking News: FTC Takes Action Against Shinola, Suggests 'Where American Is Made' Slogan Be Dropped". Hodinkee.
External links
![](http://upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/30px-Commons-logo.svg.png)