What is "Made in USA"?

[DCBluesman]

I've opened this topic in order to keep folks from polluting a recent thread about a new sign. The sign is quite nice, but raises certain questions regarding the use of "Made in USA" labeling.

Taken from http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt101.shtm

Emphasis added.

Selling 'American-Made' Products? What Businesses Need to Know About Making Made in USA Claims

Consumers who see "Made in USA" on a product expect the claim to be truthful and accurate. Since the terrorist attacks of September 11, news reports suggest that consumers are more sensitive to "Made in USA" claims and more interested in buying American-made goods.
According to the Federal Trade Commission, "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 only negligible — foreign content. The FTC's Enforcement Policy Statement and its business guide, Complying with the Made in USA Standard, spell out the details of the standard, with examples of situations when domestic origin claims would be accurate and when they would be inappropriate. See ftc.gov/os/statutes/usajump.htm for more information.
Here's how the FTC evaluates "Made in USA" claims in product advertising, labeling and packaging:
For most products: Unless the product is an automobile or a textile or wool product, there's no law that requires manufacturers and marketers to make a "Made in USA" claim. If a business chooses to make the claim, however, the FTC's "Made in USA" "all or virtually all" standard applies.
For textile and wool products: Under the Textile and Wool Acts, these products must be labeled to identify the country where they were processed or manufactured.

• Imported products must identify the country where they were processed or manufactured.
• Products made entirely in the U.S. of materials also made in the U.S. must be labeled "Made in USA" or with an equivalent phrase.
• Products made in the U.S. of imported materials must be labeled to show the processing or manufacturing that takes place in the U.S., as well as the imported component.
• Products manufactured in part in the U.S. and in part abroad must identify both aspects.

In addition, print and online catalogs must disclose whether a textile was made in USA, imported or both.
For more information about country of origin labeling requirements for textile, wool and fur products, see "Threading Your Way Through the Labeling Requirements Under the Textile and Wool Acts."
American Automobile Labeling Act: This Act requires that each automobile manufactured on or after October 1, 1994, for sale in the U.S. bear a label disclosing where the car was assembled, the percentage of equipment that originated in the U.S. and Canada, and the country of origin of the engine and transmission. For more information, call the Consumer Programs Division of the National Highway Traffic Safety Administration (202-366-0846) or visit the NHTSA website.
Suspect a violation? If you believe that a product promoted as "Made in USA" is not America-made or contains significant foreign parts or processing, file a complaint with the FTC. If you are aware of import or export fraud, call the U.S. Customs Service Commercial Fraud Hotline, 1-800-ITS-FAKE.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

 

[ironman]

I try to buy american made whenever i have the chance it may cost more but it is usually a better product and it supports our economy. Thanks for bringing it up.

 

[workinforwood]

I don't know if the big 3 have all that info on their cars..if they do, I can't find it. I'm sure it's in fine print somewhere as there's no way they'd violate the law like that, but the say it in the biggest words you know, Made in the USA. Emphasized. I can't spout off percentages, but those cars have parts from all over the world, and I think more american cars, especially GM, are assembled outside the USA, in Canada, Mexico and Australia. I heard that some of the "Foreign" cars that are manufactured in the USA actually contain more US manufactured parts than most American cars do. That's all what I think I know....because who even does know anymore???

Where does most of the blood and sweat equity come from? I might be using a kit, or even part of a kit from chinajapanwan, but the labour, wood, and assembly is in Michigan. That is as much or more made in the USA than any automobile in my opinion.

 

[marcruby]

What's a 'part'? Is the ebony I used for a vessel a part or a raw material. And does it make any difference. Generally the second question I get asked where is the wood from (right after asking what wood it is). I just tell the truth. That way I don't have to read a lot of rules that put me to sleep.

 

[Texatdurango]

According to the guidelines layed out above, I don't think we as penmakers should try and convince customers that our "typical" pens are "Made in USA".

By "typical" pen, I mean one that we pulled kit parts from plastic bags that were shipped to the states from the far east. Aside from some of the "home grown" blanks, the rest of the acrylic blanks and many wood species are shipped from overseas and of course all of the components in the bags are foriegn made, even the ink cartridge so the best we could hope for would be to say "Hand crafted" in the USA.

When asked if I make my pens, I reply that all the pens in my display are hand crafted by me in my workshop in Azle, Texas.... and leave it at that! I usually have a few unturned blanks or glued up segment pieces to show how life as a pen starts and have never had anyone go beyond that to ask where the tubes or transmission came from.

Personally, I really don't see the need to push the "Made in USA" slogan.

 

[Skye]

Reminds me of the Jetta I had. Had lots of trouble with it. People kept telling me they thought German cars were made better than that. I told them, it was made in the Mexico plant. Some still call it a German car, but to me, it was just a Mexican car made under a German name.

Don't ask me how that fits the topic... I'm already confusing myself.

 

[wdcav1952]

Reminds me of the Jetta I had. Had lots of trouble with it. People kept telling me they thought German cars were made better than that. I told them, it was made in the Mexico plant. Some still call it a German car, but to me, it was just a Mexican car made under a German name.

Don't ask me how that fits the topic... I'm already confusing myself.

Thanks for that last line. I thought I was the only confused one! :biggrin::biggrin:

 

[arioux]

Hi,

There is a difference between "Made in" and "Assemble in". When i look at Canadian regulation, i can't use "Made in Canada". I should use "Assemble in Canada" because the majority of the components are not made here but they are put together in my shop. This is from my lawyer when i registered my company.

 

[hilltopper46]

What about Harleys?

Is a Harley made in the USA? Many people think they are, but much of the componentry is imported. It was said (I have no proof) that when the Honda Goldwing was made in Ohio, that it had a higher percentage of domestically sourced content that the Harleys did. Yet, a Honda is/was a 'Japanese' bike while the Harley is an 'American' bike.

I don't offer this as proof of anything, but only to say that made in the USA is as much a frame of mind and good marketing as it is fact.

 

[Ron in Drums PA]

Great Info, Thanks!

 

[thewishman]

Made in America is a totally different claim than "Made in the USA." America includes the entire north and south American continents - though us Norte Americanos interpret it to mean the Unites States.

 

[ed4copies]

So, I read most of the info to which Lou alludes. (and links)

The question revolves around the issue: What comprises "all or virtually all".

I have too much to do today to look at case law to determine HOW the courts have interpreted the FTC's complaints. This would be the proper "modus operandus" to establish the true effect of the legislation.

However, to establish "all or VIRTUALLY all", I would advise we look at the "contribution" of the foreign parts to the overall cost of the product.

Let's assume some idiot is selling the completed Baron for $25. You can then argue that the kit cost $15, so the kit is a LARGE portion of the pen. "OBVIOUSLY", you comment, "The pen is NOT eligible for Made in USA, when 15/25 (60%) of its value comes from abroad!"

As my son would say, "HOLD ON, let's BACK UP THE BUS, here!!"

Your $15 kit cost came from a distributor, Arizona Silhouette, who made at least a 50% margin (He deserves to stay in business, too!!), so the parts were, at most $8 at his cost, the other $7 went to HIS American company). But, HE bought it from Berea, who also is a distributor, bringing the cost to $5, $3 went to Berea, another American company). So the part is $5, right??? WRONG. The PART was SHIPPED here, roughly 50% of the cost is FREIGHT. Part now costs $2.50 - for giggles, we'll call it $3.

SO $3 of the $25 (remember this is the CHEAP guy - if he were selling for $75 the case gets MUCH stronger) is "foreign". IS that product now "Virtually ALL" MADE in USA??? Over 80% of the VALUE was added in the USA and contributed to the economy of the USA!! IF the pen is sold for $75, over 95% was MADE in USA.

So, I will continue to answer the question with a simple, "It was MADE in my shop, on a lathe similar to this one" (I demo at shows, removes this question, usually - people are pretty quick to recognize if you HAVE the TOOL and KNOW how to USE it, there MUST be a connection with all those pens laying there!)

However, if YOU wish to say "Made in USA", I believe the FTC will probably NOT take action against you!!

 

[Mudder]

Is a Harley made in the USA? Many people think they are, but much of the componentry is imported. It was said (I have no proof) that when the Honda Goldwing was made in Ohio, that it had a higher percentage of domestically sourced content that the Harleys did. Yet, a Honda is/was a 'Japanese' bike while the Harley is an 'American' bike.

I don't offer this as proof of anything, but only to say that made in the USA is as much a frame of mind and good marketing as it is fact.

In 2006 the magazine HOG tales (Harley Owners Group) did an article on the number of American made parts in A Harley. Although it was close, they concluded that there was slightly less than 50% American parts on the 2006 Harley Davidson's. I was at my FIL's house last night helping him make room in his garage to store his Harley for the winter and I did notice that his rear shocks and rims, which are stock, had Japan stamped on them.

I do not know the ratio of American parts in a Goldwing.

 

[Skye]

Although it was close, they concluded that there was slightly less than 50% American parts on the 2006 Harley Davidson's.

So what you're saying is..... they're more dependable than they used to be?

LOL

 

[Mudder]

So what you're saying is..... they're more dependable than they used to be?

LOL

Skye,

I can only give you first hand on one Harley. When I was much younger I had a 1972 Sportster and if I could have traded it for a "rice burner" I would have done it in a second. That thing leaked oil like a sieve and fouled plugs like crazy. There was nothing "wrong" with the bike according to the repair shop, they told me that "that's what this type of bike does"

My FIL is on his 3rd Harley and he has had nothing but great luck with his bikes. His first one was totaled in a parking lot (it was parked). His second he rode for 20K miles and then traded it in to get his "dream bike". They never gave him any problems at all.