Complying with the

MADE IN USA 

STANDARD

Federal Trade Commission | business.ftc.gov

Table of Contents

Introduction

1

Basic Information About Made In USA Claims

2

The Standard For Unqualified Made In USA Claims

4

Qualified Claims

9

The FTC and The Customs Service

13

Other Statutes

15

What To Do About Violations

17

For More Information

18

Your Opportunity to Comment

18

Enforcement Policy Statement on

U.S. Origin Claims

19

Endnotes

33

1

Introduction

The Federal Trade Commission (FTC) is charged with 

preventing deception and unfairness in the marketplace. 

The FTC Act gives the Commission the power to bring law 

enforcement actions against false or misleading claims that a 

product is of U.S. origin. Traditionally, the Commission has 

required that a product advertised as Made in USA be “all or 

virtually all” made in the U.S. After a comprehensive review 

of Made in USA and other U.S. origin claims in product 

advertising and labeling, the Commission announced in 

December 1997 that it would retain the “all or virtually all” 

standard. The Commission also issued an Enforcement Policy 

Statement on U.S. Origin Claims to provide guidance to 

marketers who want to make an unqualified Made in USA

claim under the “all or virtually all” standard and those who 

want to make a qualified Made in USA claim.

This publication provides additional guidance about how to 

comply with the “all or virtually all” standard. It also offers 

some general information about the U.S. Customs Service’s 

requirement that all products of foreign origin imported into 

the U.S. be marked with the name of the country of origin.

This publication is the Federal Trade Commission staff’s 

view of the law’s requirements. It is not binding on the 

Commission. The Enforcement Policy Statement issued by 

the FTC is at the end of the publication.
2

Basic Information About Made In USA

Claims

Must U.S. content be disclosed on products sold in the 

U.S.?

U.S. content must be disclosed on automobiles and textile, 

wool, and fur products (see page 15). There’s no law that 

requires most other products sold in the U.S. to be marked 

or labeled Made in USA or have any other disclosure about 

their amount of U.S. content. However, manufacturers and 

marketers who choose to make claims about the amount of 

U.S. content in their products must comply with the FTC’s 

Made in USA policy.

What products does the FTC's Made in USA policy 

apply to?

The policy applies to all products advertised or sold in the 

U.S., except for those specifically subject to country-of-origin 

labeling by other laws (see pages 15-17). Other countries may 

have their own country-of-origin marking requirements. As 

a result, exporters should determine whether the country to 

which they are exporting imposes such requirements.

What kinds of claims does the Enforcement Policy 

Statement apply to?

The Enforcement Policy Statement applies to U.S. origin 

claims that appear on products and labeling, advertising, 

and other promotional materials. It also applies to all other 

forms of marketing, including marketing through digital or 

electronic mechanisms, such as Internet or e-mail.

A Made in USA claim can be express or implied.

Examples of express claims: Made in USA. “Our 

products are American-made.” “USA.”
3

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.

Example: A company promotes its product in an ad 

that features a manager describing the “true American 

quality” of the work produced at the company’s 

American factory. Although there is no express 

representation that the company’s product is made in 

the U.S., the overall — or net — impression the ad is 

likely to convey to consumers is that the product is of 

U.S. origin.

Brand names and trademarks

Ordinarily, the Commission will not consider a manufacturer 

or marketer’s use of an American brand name or trademark by 

itself as a U.S. origin claim. Similarly, the Commission is not 

likely to interpret the mere listing of a company’s U.S. address 

on a package label in a non-prominent way as a claim of U.S. 

origin.

Example: A product is manufactured abroad by a 

well-known U.S. company. The fact that the company 

is headquartered in the U.S. also is widely known. 

Company pamphlets for its foreign-made product 

prominently feature its brand name. Assuming that 

the brand name does not specifically denote U.S. 

origin (that is, the brand name is not “Made in 

America, Inc.”), using the brand name by itself does 

not constitute a claim of U.S. origin.
4

Representations about entire product lines

Manufacturers and marketers should not indicate, either 

expressly or implicitly, that a whole product line is of U.S. 

origin (“Our products are made in USA”) when only some 

products in the product line are made in the U.S. according 

to the “all or virtually all” standard.

Does the FTC pre-approve Made in USA claims?

The Commission does not pre-approve advertising or 

labeling claims. A company doesn’t need approval from the 

Commission before making a Made in USA claim. As with 

most other advertising claims, a manufacturer or marketer 

may make any claim as long as it is truthful and substantiated.

The Standard For Unqualified Made In 

USA Claims

What is the standard for a product to be called Made in 

USA without qualification?

For a product to be called Made in USA, or claimed to be of 

domestic origin without qualifications or limits on the claim, 

the product must be “all or virtually all” made in the U.S. The 

term “United States,” as referred to in the Enforcement Policy 

Statement, includes the 50 states, the District of Columbia, 

and the U.S. territories and possessions.

What does “all or virtually all” mean?

“All or virtually all” means that all significant parts and 

processing that go into the product must be of U.S. origin. 

That is, the product should contain no — or negligible — 

foreign content.
5

What substantiation is required for a Made in USA

claim?

When a manufacturer or marketer makes an unqualified 

claim that a product is Made in USA, it should have — and 

rely on — a “reasonable basis” to support the claim at the 

time it is made. This means a manufacturer or marketer needs 

competent and reliable evidence to back up the claim that its 

product is “all or virtually all” made in the U.S.

What factors does the Commission consider to 

determine whether a product is “all or virtually all” made 

in the U.S.?

The product’s final assembly or processing must take place 

in the U.S. The Commission then considers other factors, 

including how much of the product’s total manufacturing 

costs can be assigned to U.S. parts and processing, and 

how far removed any foreign content is from the finished 

product. In some instances, only a small portion of the total 

manufacturing costs are attributable to foreign processing, 

but that processing represents a significant amount of the 

product’s overall processing. The same could be true for some 

foreign parts. In these cases, the foreign content (processing 

or parts) is more than negligible, and, as a result, unqualified 

claims are inappropriate.

Example: A company produces propane barbecue 

grills at a plant in Nevada. The product’s major 

components include the gas valve, burner and 

aluminum housing, each of which is made in the 

U.S. The grill’s knobs and tubing are imported from 

Mexico. An unqualified Made in USA claim is not 

likely to be deceptive because the knobs and tubing 

make up a negligible portion of the product’s total 

manufacturing costs and are insignificant parts of the 

final product.
6

Example: A table lamp is assembled in the U.S. 

from American-made brass, an American-made 

Tiffany-style lampshade, and an imported base. The 

base accounts for a small percent of the total cost 

of making the lamp. An unqualified Made in USA

claim is deceptive for two reasons: The base is not far 

enough removed in the manufacturing process from 

the finished product to be of little consequence and it 

is a significant part of the final product.

What items should manufacturers and marketers include 

in analyzing the percentage of domestic content in a 

particular product?

Manufacturers and marketers should use the cost of goods 

sold or inventory costs of finished goods in their analysis. 

Such costs generally are limited to the total cost of all 

manufacturing materials, direct manufacturing labor, and 

manufacturing overhead.

Should manufacturers and marketers rely on information 

from American suppliers about the amount of domestic 

content in the parts, components, and other elements 

they buy and use for their final products?

If given in good faith, manufacturers and marketers can rely 

on information from suppliers about the domestic content 

in the parts, components, and other elements they produce. 

Rather than assume that the input is 100 percent U.S.-made, 

however, manufacturers and marketers would be wise to ask 

the supplier for specific information about the percentage of 

U.S. content before they make a U.S. origin claim.

Example: A company manufactures food processors 

in its U.S. plant, making most of the parts, including 

the housing and blade, from U.S. materials. The 

motor, which constitutes 50 percent of the food 
7

processor’s total manufacturing costs, is bought from a 

U.S. supplier. The food processor manufacturer knows 

that the motor is assembled in a U.S. factory. Even 

though most of the parts of the food processor are of 

U.S. origin, the final assembly is in the U.S., and the 

motor is assembled in the U.S., the food processor is 

not considered “all or virtually all” American-made 

if the motor itself is made of imported parts that 

constitute a significant percentage of the appliance’s 

total manufacturing cost. Before claiming the product 

is Made in USA, this manufacturer should look to its 

motor supplier for more specific information about 

the motor’s origin.

Example: On its purchase order, a company states: 

“Our company requires that suppliers certify the 

percentage of U.S. content in products supplied 

to us. If you are unable or unwilling to make such 

certification, we will not purchase from you.” 

Appearing under this statement is the sentence, “We 

certify that our ___ have at least ___% U.S. content,” 

with space for the supplier to fill in the name of the 

product and its percentage of U.S. content. The 

company generally could rely on a certification like 

this to determine the appropriate country-of-origin 

designation for its product.

How far back in the manufacturing process should 

manufacturers and marketers look?

To determine the percentage of U.S. content, manufacturers 

and marketers should look back far enough in the 

manufacturing process to be reasonably sure that any 

significant foreign content has been included in their 

assessment of foreign costs. Foreign content incorporated 

early in the manufacturing process often will be less 
8

significant to consumers than content that is a direct part of 

the finished product or the parts or components produced by 

the immediate supplier.

Example: The steel used to make a single component 

of a complex product (for example, the steel used in 

the case of a computer’s floppy drive) is an early input 

into the computer’s manufacture, and is likely to 

constitute a very small portion of the final product’s 

total cost. On the other hand, the steel in a product 

like a pipe or a wrench is a direct and significant 

input. Whether the steel in a pipe or wrench is 

imported would be a significant factor in evaluating 

whether the finished product is “all or virtually all” 

made in the U.S.

Are raw materials included in the evaluation of whether a 

product is “all or virtually all” made in the U.S.?

It depends on how much of the product’s cost the raw 

materials make up and how far removed from the finished 

product they are.

Example: If the gold in a gold ring is imported, 

an unqualified Made in USA claim for the ring is 

deceptive. That’s because of the significant value 

the gold is likely to represent relative to the finished 

product, and because the gold — an integral 

component — is only one step back from the finished 

article. By contrast, consider the plastic in the plastic 

case of a clock radio otherwise made in the U.S. of 

U.S.-made components. If the plastic case was made 

from imported petroleum, a Made in USA claim is 

likely to be appropriate because the petroleum is far 

enough removed from the finished product, and is an 

insignificant part of it as well.
9

Qualified Claims

What is a qualified Made in USA claim?

A qualified Made in USA claim describes the extent, amount 

or type of a product’s domestic content or processing; it 

indicates that the product isn’t entirely of domestic origin.

Example: “60% U.S. content.” “Made in USA of 

U.S. and imported parts.” “Couch assembled in USA 

from Italian Leather and Mexican Frame.”

When is a qualified Made in USA claim appropriate?

A qualified Made in USA claim is appropriate for products 

that include U.S. content or processing but don’t meet the 

criteria for making an unqualified Made in USA claim. 

Because even qualified claims may imply more domestic 

content than exists, manufacturers or marketers must exercise 

care when making these claims. That is, avoid qualified claims 

unless the product has a significant amount of U.S. content 

or U.S. processing. A qualified Made in USA claim, like an 

unqualified claim, must be truthful and substantiated.

Example: An exercise treadmill is assembled in the 

U.S. The assembly represents significant work and 

constitutes a “substantial transformation” (a term used 

by the U.S. Customs Service — see pages 13-14). All 

of the treadmill’s major parts, including the motor, 

frame, and electronic display, are imported. A few 

of its incidental parts, such as the handle bar covers, 

the plastic on/off power key, and the treadmill mat, 

are manufactured in the U.S. Together, these parts 

account for approximately three percent of the total 

cost of all the parts. Because the value of the U.S.-

made parts is negligible compared to the value of all 

the parts, a claim on the treadmill that it is “Made 

in USA of U.S. and Imported Parts” is deceptive. A 
10

claim like “Made in U.S. from Imported Parts” or 

“Assembled in U.S.A.” (see page 13) would not be 

deceptive.

U.S. origin claims for specific processes or parts

Claims that a particular manufacturing or other process 

was performed in the U.S. or that a particular part was 

manufactured in the U.S. must be truthful, substantiated, and 

clearly refer to the specific process or part, not to the general 

manufacture of the product, to avoid implying more U.S. 

content than exists.

Manufacturers and marketers should be cautious about 

using general terms, such as “produced,” “created” or 

“manufactured” in the U.S. Words like these are unlikely to 

convey a message limited to a particular process. Additional 

qualification probably is necessary to describe a product that 

is not “all or virtually all” made in the U.S.

In addition, if a product is of foreign origin (that is, it has 

been substantially transformed abroad), manufacturers 

and marketers also should make sure they satisfy Customs’ 

markings statute and regulations that require such products 

to be marked with a foreign country of origin (see page 14). 

Further, Customs requires the foreign country of origin to 

be preceded by “Made in,” “Product of,” or words of similar 

meaning when any city or location that is not the country of 

origin appears on the product.

Example: A company designs a product in New York 

City and sends the blueprint to a factory in Finland 

for manufacturing. It labels the product “Designed in 

USA — Made in Finland.” Such a specific processing 

claim would not lead a reasonable consumer to believe 

that the whole product was made in the U.S. The 

Customs Service requires the product to be marked 

“Made in,” or “Product of” Finland since the product 
11

is of Finnish origin and the claim refers to the U.S. 

Examples of other specific processing claims are: 

“Bound in U.S. — Printed in Turkey.” “Hand carved 

in U.S. — Wood from Philippines.” “Software written 

in U.S. — Disk made in India.” “Painted and fired in 

USA. Blanks made in (foreign country of origin).”

Example: A company advertises its product, 

which was invented in Seattle and manufactured 

in Bangladesh, as “Created in USA.” This claim is 

deceptive because consumers are likely to interpret 

the term “Created” as Made in USA — an unqualified 

U.S. origin claim.

Example: A computer imported from Korea is 

packaged in the U.S. in an American-made corrugated 

paperboard box containing only domestic materials 

and domestically produced expanded rigid polystyrene 

plastic packing. Stating Made in USA on the package 

would deceive consumers about the origin of the 

product inside. But the company could legitimately 

make a qualified claim, such as “Computer Made in 

Korea — Packaging Made in USA.”

Example: The Acme Camera Company assembles 

its cameras in the U.S. The camera lenses are 

manufactured in the U.S., but most of the remaining 

parts are imported. A magazine ad for the camera is 

headlined “Beware of Imported Imitations” and states 

“Other high-end camera makers use imported parts 

made with cheap foreign labor. But at Acme Camera, 

we want only the highest quality parts for our cameras 

and we believe in employing American workers. That’s 

why we make all of our lenses right here in the U.S.” 

This ad is likely to convey that more than a specific 

product part (the lens) is of U.S. origin. The marketer 

should be prepared to substantiate the broader U.S. 

origin claim conveyed to consumers viewing the ad.
12

Comparative Claims

Comparative claims should be truthful and substantiated, and 

presented in a way that makes the basis for comparison clear 

(for example, whether the comparison is to another leading 

brand or to a previous version of the same product). They 

should truthfully describe the U.S. content of the product 

and be based on a meaningful difference in U.S. content 

between the compared products.

Example: An ad for cellular phones states “We use 

more U.S. content than any other cellular phone 

manufacturer.” The manufacturer assembles the 

phones in the U.S. from American and imported 

components and can substantiate that the difference 

between the U.S. content of its phones and that of 

the other manufacturers’ phones is significant. This 

comparative claim is not deceptive.

Example: A product is advertised as having “twice 

as much U.S. content as before.” The U.S. content 

in the product has been increased from 2 percent 

in the previous version to 4 percent in the current 

version. This comparative claim is deceptive because 

the difference between the U.S. content in the current 

and previous version of the product are insignificant.

Assembled in USA Claims

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” (see page 14) also should have 

occurred in the U.S. That’s why a “screwdriver” assembly in 

the U.S. of foreign components into a final product at the 

end of the manufacturing process doesn’t usually qualify for 

the “Assembled in USA” claim.
13

Example: A lawn mower, composed of all domestic 

parts except for the cable sheathing, flywheel, wheel 

rims and air filter (15 to 20 percent foreign content) is 

assembled in the U.S. An “Assembled in USA” claim 

is appropriate.

Example: All the major components of a computer, 

including the motherboard and hard drive, are 

imported. The computer’s components then are 

put together in a simple “screwdriver” operation in 

the U.S., are not substantially transformed under 

the Customs Standard, and must be marked with a 

foreign country of origin. An “Assembled in U.S.” 

claim without further qualification is deceptive.

The FTC and The Customs Service

What is the U.S. Customs Service”s jurisdiction over 

country-of-origin claims?

The Tariff Act gives Customs and the Secretary of the Treasury 

the power to administer the requirement that imported goods 

be marked with a foreign country of origin (for example, 

“Made in Japan”).

When an imported product incorporates materials and/or 

processing from more than one country, Customs considers 

the country of origin to be the last country in which a 

“substantial transformation” took place. Customs defines 

“substantial transformation” as a manufacturing process 

that results in a new and different product with a new 

name, character, and use that is different from that which 

existed before the change. Customs makes country-of-origin 

determinations using the “substantial transformation” test on 

a case-by-case basis. In some instances, Customs uses a “tariff 

shift” analysis, comparable to “substantial transformation,” to 

determine a product’s country of origin.
14

What is the interaction between the FTC and Customs 

regarding country-of-origin claims?

Even if Customs determines that an imported product does 

not need a foreign country-of-origin mark, it is not necessarily 

permissible to promote that product as Made in USA. The 

FTC considers additional factors to decide whether a product 

can be advertised or labeled as Made in USA.

Manufacturers and marketers should check with Customs 

to see if they need to mark their products with the foreign 

country of origin. If they don’t, they should look at the FTC’s 

standard to check if they can properly make a Made in USA

claim.

The FTC has jurisdiction over foreign origin claims on 

products and in packaging that are beyond the disclosures 

required by Customs (for example, claims that supplement a 

required foreign origin marking to indicate where additional 

processing or finishing of a product occurred).

The FTC also has jurisdiction over foreign origin claims in 

advertising and other promotional materials. Unqualified 

U.S. origin claims in ads or other promotional materials for 

products that Customs requires a foreign country-of-origin 

mark may mislead or confuse consumers about the product’s 

origin. To avoid misleading consumers, marketers should 

clearly disclose the foreign manufacture of a product.

Example: A television set assembled in Korea using 

an American-made picture tube is shipped to the U.S. 

The Customs Service requires the television set to be 

marked “Made in Korea” because that’s where the 

television set was last “substantially transformed.” The 

company’s World Wide Web page states “Although 

our televisions are made abroad, they always contain 

U.S.-made picture tubes.” This statement is not 

deceptive. However, making the statement “All our 
15

picture tubes are made in the USA” — without 

disclosing the foreign origin of the television’s 

manufacture — might imply a broader claim (for 

example, that the television set is largely made in 

the U.S.) than could be substantiated. That is, if the 

statement and the entire ad imply that any foreign 

content or processing is negligible, the advertiser 

must substantiate that claim or net impression. 

The advertiser in this scenario would not be able to 

substantiate the implied Made in USA claim because 

the product was “substantially transformed” in Korea.

Other Statutes

What are the requirements of other federal statutes 

relating to country-of-origin determinations?

Textile Fiber Products Identification Act and Wool 

Products Labeling Act — Require a Made in USA label on 

most clothing and other textile or wool household products 

if the final product is manufactured in the U.S. of fabric that 

is manufactured in the U.S., regardless of where materials 

earlier in the manufacturing process (for example, the yarn 

and fiber) came from. Textile products that are imported must 

be labeled as required by the Customs Service. A textile or 

wool product partially manufactured in the U.S. and partially 

manufactured in another country must be labeled to show 

both foreign and domestic processing.

On a garment with a neck, the country of origin must be 

disclosed on the front of a label attached to the inside center 

of the neck — either midway between the shoulder seams 

or very near another label attached to the inside center of 

the neck. On a garment without a neck, and on other kinds 

of textile products, the country of origin must appear on 

a conspicuous and readily accessible label on the inside or 

outside of the product.
16

Catalogs and other mail order promotional materials for 

textile and wool products, including those disseminated on 

the Internet, must disclose whether a product is made in the 

U.S., imported or both.

The Fur Products Labeling Act requires the country of 

origin of imported furs to be disclosed on all labels and in all 

advertising. For copies of the Textile, Wool or Fur Rules and 

Regulations, or the new business education guide on labeling 

requirements, call the FTC’s Consumer Response Center 

(202-382-4357). Or visit the FTC online at www.ftc.gov. 

Click on Consumer Protection.

American Automobile Labeling 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. Any representation that a car marketer 

makes that is required by the AALA is exempt from the 

Commission’s policy. When a company makes claims in 

advertising or promotional materials that go beyond the 

AALA requirements, it will be held to the Commission’s 

standard. For more information, call the Consumer 

Programs Division of the National Highway Traffic Safety 

Administration (202-366-0846).

Buy American Act — Requires that a product be 

manufactured in the U.S. of more than 50 percent U.S. parts 

to be considered Made in USA for government procurement 

purposes. For more information, review the Buy American 

Act at 41 U.S.C. §§ 10a-10c, the Federal Acquisition 

Regulations at 48 C.F.R. Part 25, and the Trade Agreements 

Act at 19 U.S.C. §§ 2501-2582.
17

What To Do About Violations

What if I suspect noncompliance with the FTC’s Made in 

USA standard or other country-of-origin mislabeling?

Information about possible illegal activity helps law 

enforcement officials target companies whose practices 

warrant scrutiny. If you suspect noncompliance, you 

may file a complaint online with the FTC Complaint 

Assistant at ftc.gov/complaint or send an e-mail to 

MUSA@ftc.gov. If you know about import or export fraud, 

file a complaint with U.S. Customs and Border Protection at 

https://apps.cbp.gov/eallegations/. Examples of fraudulent 

practices involving imports include removing a required 

foreign origin label before the product is delivered to the 

ultimate purchaser (with or without the improper substitution 

of a Made in USA label) and failing to label a product with a 

required country of origin.

You also can contact your state Attorney General and your 

local Better Business Bureau to report a company. Or 

you can refer your complaint to the National Advertising 

Division (NAD) of the Council of Better Business Bureaus 

by calling (212) 754-1320. NAD handles complaints about 

the truth and accuracy of national advertising. You can 

reach the Council of Better Business Bureaus on the web at 

adweb.com/adassoc17.html.

Finally, the Lanham Act gives any person (such as a 

competitor) who is damaged by a false designation of origin 

the right to sue the party making the false claim. Consult a 

lawyer to see if this private right of action is an appropriate 

course of action for you.
18

For More Information

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-FTCHELP (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. 

Your Opportunity to Comment

The National Small Business Ombudsman and 10 Regional 

Fairness Boards collect comments from small businesses about 

federal compliance and enforcement activities. Each year, the 

Ombudsman evaluates the conduct of these activities and 

rates each agency’s responsiveness to small businesses. Small 

businesses can comment to the Ombudsman without fear of 

reprisal. To comment, call toll-free 1-888-REGFAIR (1-888-

734-3247) or go to www.sba.gov/ombudsman.
19

Enforcement Policy Statement on

U.S. Origin Claims

I. Introduction

The Federal Trade Commission (“FTC” or “Commission”) 

is issuing this statement to provide guidance regarding its 

enforcement policy with respect to the use of Made in USA

and other U.S. origin claims in advertising and labeling. 

The Commission has determined, as explained below, that 

unqualified U.S. origin claims should be substantiated by 

evidence that the product is all or virtually all made in the 

United States. This statement is intended to elaborate on 

principles set out in individual cases and advisory opinions 

previously issued over the course of many years by the 

Commission. This statement, furthermore, is the culmination 

of a comprehensive process in which the Commission has 

reviewed its standard for evaluating U.S. origin claims. 

Throughout this process, the Commission has solicited, and 

received, substantial public input on relevant issues. The 

Commission anticipates that from time to time, it may be 

in the public interest to solicit further public comment on 

these issues and to assess whether the views expressed in this 

statement continue to be appropriate and reflect consumer 

perception and opinion, and to determine whether there are 

areas on which the Commission could provide additional 

guidance.

The principles set forth in this enforcement policy statement 

apply to U.S. origin claims included in labeling, advertising, 

other promotional materials, and all other forms of 

marketing, including marketing through digital or electronic 

means such as the Internet or electronic mail. The statement, 

moreover, articulates the Commission’s enforcement policy 

with respect to U.S. origin claims for all products advertised 
20

or sold in the United States, with the exception of those 

products specifically subject to the country-of-origin labeling 

requirements of the Textile Fiber Products Identification 

Act,1 the Wool Products Labeling Act,2 or the Fur Products 

Labeling Act.3 With respect to automobiles or other passenger 

motor vehicles, nothing in this enforcement policy statement 

is intended to affect or alter a marketer’s obligation to 

comply with the requirements of the American Automobile 

Labeling Act4 or regulations issued pursuant thereto, and any 

representation required by that Act to appear on automobile 

labeling will not be considered a deceptive act or practice for 

purposes of this enforcement policy statement, regardless of 

whether the representation appears in labeling, advertising or 

in other promotional material. Claims about the U.S. origin 

of passenger motor vehicles other than those representations 

required by the American Automobile Labeling Act, however, 

will be governed by the principles set forth in this statement.

II. Background

Both the FTC and the U.S. Customs Service have 

responsibilities related to the use of country-of-origin claims. 

While the FTC regulates claims of U.S. origin under its 

general authority to act against deceptive acts and practices, 

foreign-origin markings on products (e.g., “Made in Japan”) 

are regulated primarily by the U.S. Customs Service 

(“Customs” or “the Customs Service”) under the Tariff Act of 

1930. Specifically, Section 304 of the Tariff Act, 19 U.S.C. § 

1304, administered by the Secretary of the Treasury and the 

Customs Service, requires that all products of foreign origin 

imported into the United States be marked with the name 

of a foreign country of origin. Where an imported product 

incorporates materials and/or processing from more than 

one country, Customs considers the country of origin to 

be the last country in which a “substantial transformation” 
21

took place. A substantial transformation is a manufacturing 

or other process that results in a new and different article 

of commerce, having a new name, character and use that 

is different from that which existed prior to the processing. 

Country-of-origin determinations using the substantial 

transformation test are made on a case-by-case basis through 

administrative determinations by the Customs Service.5

The FTC also has jurisdiction over foreign origin claims in 

packaging insofar as they go beyond the disclosures required 

by the Customs Service (e.g., claims that supplement a 

required foreign origin marking, so as to represent where 

additional processing or finishing of a product occurred). In 

addition, the Commission has jurisdiction over foreign-origin 

claims in advertising, which the U.S. Customs Service does 

not regulate.

Where Customs determines that a good is not of foreign 

origin (i.e., the good undergoes its last substantial 

transformation in the United States), there is generally no 

requirement that it be marked with any country of origin. 

For most goods, neither the Customs Service nor the FTC 

requires that goods made partially or wholly in the United 

States be labeled with Made in USA or any other indication 

of U.S. origin.6 The fact that a product is not required to be 

marked with a foreign country of origin does not mean that it 

is permissible to promote that product as Made in USA. The 

FTC will consider additional factors, beyond those considered 

by the Customs Service in determining whether a product 

is of foreign origin, in determining whether a product may 

properly be represented as Made in USA.

This statement is intended to address only those issues related 

to U.S. origin claims. In developing appropriate country-oforigin labeling for their products, marketers are urged also to 

consult the U.S. Customs Service’s marking regulations.
22

III. Interpreting U.s. Origin Claims: 

The FTC's Deception Analysis

The Commission’s authority to regulate U.S. origin claims 

derives from Section 5 of the Federal Trade Commission Act 

(“FTC Act”), 15 U.S.C. § 45, which prohibits “unfair or 

deceptive acts or practices.” The Commission has set forth 

its interpretations of its Section 5 authority in its Deception 

Policy Statement,7 and its Policy Statement Regarding 

Advertising Substantiation Doctrine.8 As set out in the 

Deception Policy Statement, the Commission will find 

an advertisement or label deceptive under Section 5, and 

therefore unlawful, if it contains a representation or omission 

of fact that is likely to mislead consumers acting reasonably 

under the circumstances, and that representation or omission 

is material. In addition, objective claims carry with them 

the implication that they are supported by valid evidence. It 

is deceptive, therefore, to make a claim unless, at the time 

the claim is made, the marketer possesses and relies upon a 

reasonable basis substantiating the claim. Thus, a Made in 

USA claim, like any other objective advertising claim, must be 

truthful and substantiated.

A representation may be made by either express or implied 

claims. “Made in USA” and “Our products are American 

made” would be examples of express U.S. origin claims. In 

identifying implied claims, the Commission focuses on the 

overall net impression of an advertisement, label, or other 

promotional material. This requires an examination of 

both the representation and the overall context, including 

the juxtaposition of phrases and images, and the nature of 

the transaction. Depending on the context, U.S. symbols 

or geographic references, such as U.S. flags, outlines of 

U.S. maps, or references to U.S. locations of headquarters 

or factories, may, by themselves or in conjunction with 

other phrases or images, convey a claim of U.S. origin. For 
23

example, assume that a company advertises its product 

in an advertisement that features pictures of employees at 

work at what is identified as the company’s U.S. factory, 

these pictures are superimposed on an image of a U.S. 

flag, and the advertisement bears the headline “American 

Quality.” Although there is no express representation that the 

company’s product is Made in USA, the net impression of the 

advertisement is likely to convey to consumers a claim that 

the product is of U.S. origin.

Whether any particular symbol or phrase, including an 

American flag, conveys an implied U.S. origin claim, will 

depend upon the circumstances in which the symbol or 

phrase is used. Ordinarily, however, the Commission will 

not consider a marketer’s use of an American brand name9

or trademark,10 without more, to constitute a U.S. origin 

claim, even though some consumers may believe, in some 

cases mistakenly, that a product made by a U.S.-based 

manufacturer is made in the United States. Similarly, the mere 

listing of a company’s U.S. address on a package label, in a 

nonprominent manner, such as would be required under the 

Fair Packaging and Labeling Act,11 is unlikely, without more, 

to constitute a Made in USA claim.

IV.Substantiating U.S. Origin Claims: 

The “All Or Virtually All” Standard

Based on its review of the traditional use of the term Made in 

USA, and the record as a whole, the Commission concludes 

that consumers are likely to understand an unqualified U.S. 

origin claim to mean that the advertised product is “all or 

virtually all” made in the United States. Therefore, when a 

marketer makes an unqualified claim that a product is Made 

in USA, it should, at the time the representation is made, 

possess and rely upon a reasonable basis that the product is in 

fact all or virtually all made in the United States.12, 13
24

A product that is all or virtually all made in the United 

States will ordinarily be one in which all significant parts14

and processing that go into the product are of U.S. origin. 

In other words, where a product is labeled or otherwise 

advertised with an unqualified Made in USA claim, it should 

contain only a de minimis, or negligible, amount of foreign 

content. Although there is no single “bright line” to establish 

when a product is or is not “all or virtually all” made in 

the United States, there are a number of factors that the 

Commission will look to in making this determination. To 

begin with, in order for a product to be considered “all or 

virtually all” made in the United States, the final assembly 

or processing of the product must take place in the United 

States. Beyond this minimum threshold, the Commission 

will consider other factors, including but not limited to 

the portion of the product’s total manufacturing costs that 

are attributable to U.S. parts and processing; and how far 

removed from the finished product any foreign content is.

A. Site of Final Assembly or Processing 

The consumer perception evidence available to the 

Commission indicates that the country in which a product is 

put together or completed is highly significant to consumers 

in evaluating where the product is “made.” Thus, regardless 

of the extent of a product’s other U.S. parts or processing, 

in order to be considered all or virtually all made in the 

United States, it is a prerequisite that the product have 

been last “substantially transformed” in the United States, 

as that term is used by the U.S. Customs Service — i.e., 

the product should not be required to be marked “made in 

[foreign country]” under 19 U.S.C. § 1304.15 Furthermore, 

even where a product is last substantially transformed in 

the United States, if the product is thereafter assembled or 

processed (beyond de minimis finishing processes) outside the 

United States, the Commission is unlikely to consider that 
25

product to be all or virtually all made in the United States. 

For example, were a product to be manufactured primarily in 

the United States (and last substantially transformed there) 

but sent to Canada or Mexico for final assembly, any U.S. 

origin claim should be qualified to disclose the assembly that 

took place outside the United States.

B. Proportion of U.S. Manufacturing Costs

Assuming the product is put together or otherwise completed 

in the United States, the Commission will also examine the 

percentage of the total cost of manufacturing the product 

that is attributable to U.S. costs (i.e., U.S. parts and 

processing) and to foreign costs.16 Where the percentage of 

foreign content is very low, of course, it is more likely that 

the Commission will consider the product all or virtually 

all made in the United States. Nonetheless, there is not a 

fixed point for all products at which they suddenly become 

“all or virtually all” made in the United States. Rather, the 

Commission will conduct this inquiry on a case-by-case 

basis, balancing the proportion of U.S. manufacturing costs 

along with the other factors discussed herein, and taking 

into account the nature of the product and consumers’ 

expectations in determining whether an enforcement action 

is warranted. Where, for example, a product has an extremely 

high amount of U.S. content, any potential deception 

resulting from an unqualified Made in USA claim is likely 

to be very limited, and therefore the costs of bringing an 

enforcement action challenging such a claim are likely to 

substantially outweigh any benefit that might accrue to 

consumers and competition.

C.Remoteness of Foreign Content 

Finally, in evaluating whether any foreign content is 

significant enough to prevent a product from being 
26

considered all or virtually all made in the United States, the 

Commission will look not only to the percentage of the cost 

of the product that the foreign content represents, but will 

also consider how far removed from the finished product 

the foreign content is. As a general rule, in determining the 

percentage of U.S. content in its product, a marketer should 

look far enough back in the manufacturing process that a 

reasonable marketer would expect that it had accounted 

for any significant foreign content. In other words, a 

manufacturer who buys a component from a U.S. supplier, 

which component is in turn made up of other parts or 

materials, may not simply assume that the component is 

100% U.S. made, but should inquire of the supplier as 

to the percentage of U.S. content in the component.17

Foreign content that is incorporated further back in the 

manufacturing process, however, will often be less significant 

to consumers than that which constitutes a direct input 

into the finished product. For example, in the context of 

a complex product, such as a computer, it is likely to be 

insignificant that imported steel is used in making one part of 

a single component (e.g., the frame of the floppy drive). This 

is because the steel in such a case is likely to constitute a very 

small portion of the total cost of the computer, and because 

consumers purchasing a computer are likely, if they are 

concerned about the origin of the product, to be concerned 

with the origin of the more immediate inputs (floppy drive, 

hard drive, CPU, keyboard, etc.) and perhaps the parts that, 

in turn, make up those inputs. Consumers are less likely 

to have in mind materials, such as the steel, that are several 

steps back in the manufacturing process. By contrast, in the 

context of a product such as a pipe or a wrench for which 

steel constitutes a more direct and significant input, the fact 

that the steel is imported is likely to be a significant factor in 

evaluating whether the finished product is all or virtually all 

made in the United States. Thus, in some circumstances, there 
27

may be inputs one or two steps back in the manufacturing 

process that are foreign and there may be other foreign inputs 

that are much further back in the manufacturing process. 

Those foreign inputs far removed from the finished product, if 

not significant, are unlikely to be as important to consumers 

and change the nature of what otherwise would be considered 

a domestic product.

In this analysis, raw materials18 are neither automatically 

included nor automatically excluded in the evaluation of 

whether a product is all or virtually all made in the United 

States. Instead, whether a product whose other parts and 

processing are of U.S. origin would not be considered all or 

virtually all made in the United States because the product 

incorporated imported raw materials depends (as would be 

the case with any other input) on what percentage of the 

cost of the product the raw materials constitute and how far 

removed from the finished product the raw materials are.19

Thus, were the gold in a gold ring, or the clay used to make 

a ceramic tile, imported, an unqualified Made in USA claim 

for the ring or tile would likely be inappropriate.20 This is 

both because of the significant value the gold and the clay 

are likely to represent relative to the finished product and 

because the gold and the clay are only one step back from 

the finished articles and are integral components of those 

articles. By contrast, were the plastic in the plastic case of 

a clock radio that was otherwise all or virtually all made in 

the United States found to have been made from imported 

petroleum, the petroleum is far enough removed from, and 

an insignificant enough input into, the finished product that 

it would nonetheless likely be appropriate to label the clock 

radio with an unqualified U.S. origin claim. 
28

V. Qualifying U.S. Origin Claims

A. Qualified U.S. Origin Claims Generally

Where a product is not all or virtually all made in the United 

States, any claim of U.S. origin should be adequately qualified 

to avoid consumer deception about the presence or amount 

of foreign content. In order to be effective, any qualifications 

or disclosures should be sufficiently clear, prominent, and 

understandable to prevent deception. Clarity of language, 

prominence of type size and style, proximity to the claim 

being qualified, and an absence of contrary claims that could 

undercut the effectiveness of the qualification, will maximize 

the likelihood that the qualifications and disclosures are 

appropriately clear and prominent.

Within these guidelines, the form the qualified claim takes is 

up to the marketer. A marketer may make any qualified claim 

about the U.S. content of its products as long as the claim 

is truthful and substantiated. Qualified claims, for example, 

may be general, indicating simply the existence of unspecified 

foreign content (e.g., “Made in USA of U.S. and imported 

parts”) or they may be specific, indicating the amount of U.S. 

content (e.g., “60% U.S. content”), the parts or materials that 

are imported (e.g., “Made in USA from imported leather”), 

or the particular foreign country from which the parts come 

(“Made in USA from French components”).21

Where a qualified claim takes the form of a general U.S. 

origin claim accompanied by qualifying information about 

foreign content (e.g., “Made in USA of U.S. and imported 

parts” or “Manufactured in U.S. with Indonesian materials”), 

the Commission believes that consumers are likely to 

understand such a claim to mean that, whatever foreign 

materials or parts the product contains, the last assembly, 

processing, or finishing of the product occurred in the 

United States. Marketers therefore should avoid using such 
29

claims unless they can substantiate that this is the case for 

their products. In particular, such claims should only be 

made where the product was last substantially transformed 

in the United States. Where a product was last substantially 

transformed abroad, and is therefore required by the U.S. 

Customs Service to be labeled “Made in [foreign country],” it 

would be inappropriate, and confusing, to use a claim such as 

“Made in USA of U.S. and imported parts.”22

B. Claims about Specific Processes or Parts

Regardless of whether a product as a whole is all or virtually 

all made in the United States, a marketer may make a 

claim that a particular manufacturing or other process was 

performed in the United States, or that a particular part was 

manufactured in the United States, provided that the claim 

is truthful and substantiated and that reasonable consumers 

would understand the claim to refer to a specific process 

or part and not to the general manufacture of the product. 

This category would include claims such as that a product 

is “designed” or “painted” or “written” in the United States 

or that a specific part, e.g., the picture tube in a television, 

is made in the United States (even if the other parts of the 

television are not). Although such claims do not expressly 

disclose that the products contain foreign content, the 

Commission believes that they are normally likely to be 

specific enough so as not to convey a general claim of U.S. 

origin. More general terms, however, such as that a product 

is, for example, “produced,”or “manufactured” in the United 

States, are likely to require further qualification where they 

are used to describe a product that is not all or virtually 

all made in the United States. Such terms are unlikely to 

convey to consumers a message limited to a particular process 

performed, or part manufactured, in the United States. 

Rather, they are likely to be understood by consumers as 
30

synonymous with Made in USA and therefore as unqualified 

U.S. origin claims.

The Commission further concludes that, in many instances, 

it will be appropriate for marketers to label or advertise a 

product as “Assembled in the United States” without further 

qualification. Because “assembly” potentially describes a 

wide range of processes, however, from simple, “screwdriver” 

operations at the very end of the manufacturing process 

to the construction of a complex, finished item from basic 

materials, the use of this term may, in some circumstances, 

be confusing or misleading to consumers. To avoid possible 

deception, “Assembled in USA” claims should be limited 

to those instances where the product has undergone its 

principal assembly in the United States and that assembly is 

substantial. In addition, a product should be last substantially 

transformed in the United States to properly use an 

“Assembled in USA” claim. This requirement ensures against 

potentially contradictory claims, i.e., a product claiming to 

be “Assembled in USA” while simultaneously being marked 

as “Made in [foreign country].” In many instances, this 

requirement will also be a minimum guarantee that the U.S. 

assembly operations are substantial.

C.Comparative Claims

U.S. origin claims that contain a comparative statement (e.g., 

“More U.S. content than our competitor”) may be made as 

long as the claims are truthful and substantiated. Where this 

is so, the Commission believes that comparative U.S. origin 

claims are unlikely to be deceptive even where an unqualified 

U.S. origin claim would be inappropriate. Comparative 

claims, however, should be presented in a manner that 

makes the basis for the comparison clear (e.g., whether the 

comparison is being made to another leading brand or to a 

previous version of the same product). Moreover, comparative 
31

claims should not be used in a manner that, directly or by 

implication, exaggerates the amount of U.S. content in the 

product, and should be based on a meaningful difference 

in U.S. content between the compared products. Thus, a 

comparative U.S. origin claim is likely to be deceptive if it is 

made for a product that does not have a significant amount of 

U.S. content or does not have significantly more U.S. content 

than the product to which it is being compared.

D. U.S. Customs Rules and Qualified and Comparative 

U.S. Origin Claims

It is possible, in some circumstances, for marketers to make 

certain qualified or comparative U.S. origin claims (including 

claims such as that the product contains a particular amount 

of U.S. content, certain claims about the U.S. origin of 

specific processes or parts, and certain comparative claims) 

even for products that are last substantially transformed 

abroad and which therefore must be marked with a foreign 

country of origin. In making such claims, however, marketers 

are advised to take care to follow the requirements set forth 

by the U.S. Customs Service and to ensure, for purposes of 

Section 5 of the FTC Act, that the claim does not deceptively 

suggest that the product is made with a greater amount of 

U.S. parts or processing than is in fact the case.

In looking at the interaction between the requirements for 

qualified and comparative U.S. origin claims and those for 

foreign origin marking, the analysis is slightly different for 

advertising and for labeling. This is a result of the fact that the 

Tariff Act requires foreign origin markings on articles or their 

containers, but does not govern claims in advertising or other 

promotional materials. 

Thus, on a product label, where the Tariff Act requires that 

the product be marked with a foreign country of origin, 

Customs regulations permit indications of U.S. origin only 
32

when the foreign country of origin appears in close proximity 

and is at least of comparable size.23 As a result, under Customs 

regulations, a product may, for example, be properly marked 

“Made in Switzerland, finished in U.S.” or “Made in France 

with U.S. parts,” but it may not simply be labeled “Finished 

in U.S.” or “Made with U.S. parts” if it is deemed to be of 

foreign origin.

In advertising or other promotional materials, the Tariff 

Act does not require that foreign origin be indicated. The 

Commission recognizes that it may be possible to make a 

U.S. origin claim in advertising or promotional materials 

that is sufficiently specific or limited that it does not require 

an accompanying statement of foreign manufacture in order 

to avoid conveying a broader and unsubstantiated meaning 

to consumers. Whether a nominally specific or limited claim 

will in fact be interpreted by consumers in a limited matter 

is likely to depend on the connotations of the particular 

representation being made (e.g., “finished” may be perceived 

as having a more general meaning than “painted”) and the 

context in which it appears. Marketers who wish to make 

U.S. origin claims in advertising or other promotional 

materials without an express disclosure of foreign manufacture 

for products that are required by Customs to be marked with 

a foreign country of origin should be aware that consumers 

may believe the literal U.S. origin statement is implying a 

broader meaning and a larger amount of U.S. content than 

expressly represented. Marketers are required to substantiate 

implied, as well express, material claims that consumers acting 

reasonably in the circumstances take from the representations. 

Therefore, the Commission encourages marketers, where a 

foreign-origin marking is required by Customs on the product 

itself, to include in any qualified or comparative U.S. origin 

claim a clear, conspicuous, and understandable disclosure of 

foreign manufacture.
33

Endnotes

1. 15 U.S.C. § 70. 

2. 15 U.S.C. § 68. 

3. 15 U.S.C. § 69. 

4. 49 U.S.C. § 32304. 

5. For goods from NAFTA countries, determinations are codified in 

“tariff shift” regulations. 19 C.F.R. § 102. 

6. For a limited number of goods, such as textile, wool, and fur 

products, there are, however, statutory requirements that the U.S. 

processing or manufacturing that occurred be disclosed. See, e.g., 

Textile Fiber Products Identification Act, 15 U.S.C. § 70(b). 

7. Letter from the Commission to the Honorable John D. Dingell, 

Chairman, Committee on Energy and Commerce, U.S. House of 

Representatives (Oct. 14, 1983); reprinted in Cliffdale Associates, Inc., 

103 F.T.C. 110, appendix (1984). 

8. 49 Fed. Reg. 30,999 (1984); reprinted in Thompson Medical Co., 104 

F.T.C. 648, appendix (1984). 

9. This assumes that the brand name does not specifically denote U.S. 

origin, e.g., the brand name is not “Made in America, Inc.” 

10. For example, a legal trademark consisting of, or incorporating, a 

stylized mark suggestive of a U.S. flag will not, by itself, be considered 

to constitute a U.S. origin claim. 

11. 15 U.S.C. § 1451 et seq. 

12. For purposes of this Enforcement Policy Statement, “United 

States” refers to the several states, the District of Columbia, and the 

territories and possessions of the United States. In other words, an 

unqualified Made in USA claim may be made for a product that is all 

or virtually all manufactured in U.S. territories or possessions as well 

as in the 50 states. 

13. In addition, marketers should not represent, either expressly or by 

implication, that a whole product line is of U.S. origin (e.g., “Our 

products are Made in USA”) when only some products in the product 

line are, in fact, made in the United States. Although not the focus 

of this Enforcement Policy Statement, this is a principle that has 

been addressed in Commission cases both within and outside the 

U.S. origin context. See, e.g., Hyde Athletic Industries, FTC Docket 

No. C-3695 (consent order December 4, 1996) (complaint alleged 
34

that respondent represented that all of its footwear was made in the 

United States, when a substantial amount of its footwear was made 

wholly in foreign countries); New Balance Athletic Shoes, Inc., FTC 

Docket No. 9268 (consent order December 2, 1996) (same); Uno 

Restaurant Corp., FTC Docket No. C-3730 (consent order April 

4, 1997) (complaint alleged that restaurant chain represented that 

its whole line of thin crust pizzas were low fat, when only two of 

eight pizzas met acceptable limits for low fat claims); Häagen-Dazs 

Company, Inc., FTC Docket No. C-3582 (consent order June 7, 

1995) (complaint alleged that respondent represented that its entire 

line of frozen yogurt was 98% fat free when only certain flavors were 

98% fat free). 

14. The word “parts” is used in its general sense throughout this 

enforcement policy statement to refer to all physical inputs into a 

product, including but not limited to subassemblies, components, 

parts, or materials. 

15. It is conceivable, for example, that occasionally a product imported 

into the United States could have a very high proportion of its 

manufacturing costs be U.S. costs, but is nonetheless not considered 

by the U.S. Customs Service to have been last substantially 

transformed in the United States. In such cases, the product would 

be required to be marked with a foreign country of origin and an 

unqualified U.S. origin claim could not appropriately be made for the 

product. 

16. In calculating manufacturing costs, manufacturers should ordinarily 

use as their measure the cost of goods sold or finished goods 

inventory cost, as those terms are used in accordance with generally 

accepted accounting principles. Such costs will generally include 

(and be limited to) the cost of manufacturing materials, direct 

manufacturing labor, and manufacturing overhead. Marketers 

should also note the admonishment below that, in determining the 

percentage of U.S. content, they should look far enough back in the 

manufacturing process that a reasonable marketer would expect that 

it had accounted for any significant foreign content.

17. For example, assume that a company manufactures lawn mowers in 

its U.S. plant, making most of the parts (housing, blade, handle, etc.) 

itself from U.S. materials. The engine, which constitutes 50% of the 

total cost of manufacturing the lawn mower, is bought from a U.S. 

supplier, which, the lawn mower manufacturer knows, assembles the 

engine in a U.S. factory. Although most of the parts and the final 
35

assembly of the lawn mower are of U.S. origin and the engine is 

assembled in the United States, the lawn mower will not necessarily 

be considered all or virtually all made in the United States. This is 

because the engine itself is made up of various parts that may be 

imported and that may constitute a significant percentage of the 

total cost of manufacturing the lawn mower. Thus, before labeling 

its lawn mower Made in USA, the manufacturer should look to its 

engine supplier for more specific information as to the engine’s origin. 

For instance, were foreign parts to constitute 60% of the cost of 

producing the engine, then the lawn mower would contain a total of 

at least 30% foreign content, and an unqualified Made in USA label 

would be inappropriate. 

18. For purposes of this Enforcement Policy Statement, the Commission 

considers raw materials to be products such as minerals, plants or 

animals that are processed no more than necessary for ordinary 

transportation. 

19. In addition, because raw materials, unlike manufactured inputs, may 

be inherently unavailable in the United States, the Commission will 

also look at whether or not the raw material is indigenous to the 

United States, or available in commercially significant quantities. In 

cases where the material is not found or grown in the United States, 

consumers are likely to understand that a Made in USA claim on 

a product that incorporates such materials (e.g., vanilla ice cream 

that uses vanilla beans, which, the Commission understands, are 

not grown in the United States) means that all or virtually all of the 

product, except for those materials not available here, originated 

in the United States. Nonetheless, even where a raw material is 

nonindigenous to the United States, if that imported material 

constitutes the whole or essence of the finished product (e.g., the 

rubber in a rubber ball or the coffee beans in ground coffee), it 

would likely mislead consumers to label the final product with an 

unqualified Made in USA claim. 

20. Nonetheless, in these examples, other, qualified claims could be 

used to identify truthfully the domestic processing that took place. 

For example, if the gold ring was designed and fabricated in the 

United States, the manufacturer could say that (e.g., “designed and 

fabricated in U.S. with 14K imported gold”). Similarly, if the ceramic 

tile were manufactured in the United States from imported clay, the 

manufacturer could indicate that as well. 
36

21. These examples are intended to be illustrative, not exhaustive; they do 

not represent the only claims or disclosures that would be permissible 

under Section 5 of the FTC Act. As indicated, however, qualified 

claims, like any claim, should be truthful and substantiated and 

should not overstate the U.S. content of a product. For example, it 

would be inappropriate for a marketer to represent that a product 

was “Made in U.S. of U.S. and imported parts” if the overwhelming 

majority of the parts were imported and only a single, insignificant 

part was manufactured in the United States; a more appropriate claim 

would be “Made in U.S. of imported parts.” 

22. On the other hand, that the last substantial transformation of the 

product takes place in the United States may not alone be sufficient 

to substantiate such a claim. For example, under the rulings of the 

U.S. Customs Service, a disposable razor is considered to have been 

last substantially transformed where its blade is made, even if it is 

thereafter assembled in another country. Thus, a disposable razor that 

is assembled in Mexico with a U.S.-made blade and other parts of 

various origins would be considered to have been last substantially 

transformed in the United States and would not have to bear a 

foreign country-of-origin marking. Nonetheless, because the final 

assembly of the razor occurs abroad, it would be inappropriate 

to label the razor “Made in U.S. of U.S. and imported parts.” It 

would, however, likely be appropriate to label the razor “Assembled 

in Mexico with U.S.-made blade,” “Blade made in United States, 

razor assembled in Mexico” or “Assembled in Mexico with U.S. and 

imported parts.” 

23. 19 C.F.R. § 134.46. Specifically, this provision provides that:

In any case in which the words “United States,” or “American,” the 

letters “U.S.A.,” any variation of such words or letters, or the name of 

any city or locality in the United States, or the name of any foreign 

country or locality other than the country or locality in which the 

article was manufactured or produced appear on an imported article 

or its container, and those words, letters or names may mislead or 

deceive the ultimate purchaser as to the actual country of origin of the 

article, there shall appear, legibly and permanently, in close proximity 

to such words, letters or name, and in at least a comparable size, the 

name of the country of origin preceded by “Made in,” “Product of,” 

or other words of similar meaning.

In a Federal Register notice announcing amendments to this provision, 

the Customs Service indicated that, where a product has a foreign 
37

origin, any references to the United States made in the context of a 

statement relating to any aspect of the production or distribution of 

the product (e.g., “Designed in USA,” “Made for XYZ Corporation, 

California, U.S.A.,” or “Distributed by ABC, Inc., Colorado, USA”) 

would be considered misleading to the ultimate purchaser and would 

require foreign country-of-origin marking in accordance with the 

above provision. 62 Fed. Reg. 44,211, 44,213 (1997). 
business.ftc.gov

December 1998