SANDLER, TRAVIS & ROSENBERG, PA.

Mr. Stephen Ecklund, Senior Investigator
Division of Enforcement

Bureau of Consumer Protection

Federal Trade Commission

January 8, 2001

Page 2

products of El Salvador because 19 CFR 12.130(c)(1) precluded a finding of U.S. origin
where the product was advanced in value abroad. However, by this notice, Customs
removed Section 12.130(c)(1) from the origin determination. Because the covers are
considered products of the U.S., they are not subject to origin marking under Customs’
regulations.

Pursuant to FTC’s recent Federal Register notice dated December 1, 2000 (65 FR
75154, 75155), “[p]roducts partially manufactured in a foreign country and partially
manufactured in the U.S. should be labeled to show the manufacturing process in both the
foreign country and the U.S.” An example provided in the notice relating to a product
manufactured abroad using U.S. fabric indicates that the label can read “Made in
[Foreign Country]/fabric made in USA” or “Made in [Foreign Country] of US fabric.”
However, this marking would be inappropriate in this instance where the origin of the
product for Customs’ purposes is not the country of assembly, but the country where the
fabric formation process occurred. Similarly, none of the remaining examples listed in
the notice apply to the situation at hand.

We submit that the following marking (or a marking that is substantially similar)
is appropriate under FTC regulations:

“Product of US, Further Processed In El Salvador”

Please confirm that the above marking(s) can be used on covers processed by
American Textile Company in the manner described above.

If you have any further questions, please do not hesitate to contact the
undersigned.

Sincerely yours,
SANDLER, TRAVIS & ROSENBERG, P.A.

any Ordet

cc: John Angelini, American Textile Company

s:\lto\15654\ftcrequest.doc


UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580

Division of Enforcement
Bureau of Consumer Protection

January 29, 2001

Larry Ordet, Esq.

Sandler, Travis & Rosenberg, P.A.
Attorneys at Law

The Waterford

5200 Blue Lagoon Drive

Miami, Florida 33126-2022

Dear Mr. Ordet:

This is in reply to your letter requesting confirmation regarding the proper marking of
certain pillow and mattress covers that are imported and distributed by your client. We
understand that the mattress covers are the separate, detachable, and washable variety, and not
part of the actual mattress. You state that the covers are assembled in El Salvador from fabric
formed and cut in the United States. Your letter reviews applicable laws administered by the
U.S. Customs Service and the Federal Trade Commission regarding country-of-origin disclosure
for textile fiber products. Commission staff in the Division of Enforcement discussed the matter
with staff of the Customs Service and confirmed that Customs does not require foreign origin
disclosure under the specific scenario that you describe.

As you know, the Federal Trade Commission administers the Rules and Regulations
Under the Textile Fiber Products Identification Act. Rule 33(a)(4), 16 C.E.R. § 303.33(a)(4),
states, in part, that

(4) Each textile fiber product partially manufactured in a foreign country and ‘partially
manufactured in the United States shall contain on a label the following information:
(i) The manufacturing process in the foreign country and in the USA; for example:

The regulations then set forth several examples. Various truthful disclosures not contained in the
list of examples may be nonetheless appropriate, depending on the circumstances. With respect
to the specific scenario set forth in your letter, Commission staff does not object to the disclosure
that you propose, namely: “Product of US, Further Processed In El Salvador.” As an alternative,
the label might state “Fabric made in USA. Sewn abroad.”

In accordance with Section 1.3(c) of the Commission's Rules of Practice and Procedure,
16 C.F.R. § 1.3(c), this is a staff opinion only and has not been reviewed or approved by the


Commission or by any individual Commissioner, and is given without prejudice to the right of
the Commission later to rescind the advice and, where appropriate, to commence an enforcement
action.

In accordance with Section 1.4 of the Commission's Rules of Practice and Procedure, 16
C.F.R. § 1.4, your request for advice, along with this response, will be placed on the public
record.

I hope this information has been helpful.
Sincerely,

Six be ©

Steve Ecklund
Federal Trade Investigator


SANDLER, TRAVIS & ROSENBERG, PA.

DONNA L. BADE
PEGGY LOUIE CHAPLIN*
DAVID E. COHEN*

JORGE ESPINOSA

PHILIP S. GALLAS*

RONALD W. GERDES*
CARLOS HALASZ*
LAWRENCE W. HANSON*
EDWARD M. JOFFE ¥

THOMAS & JOHNSON"
GERSON M. JOSEPH

JORGE R LOPEZt

MELISSA ANN MILLER*
JEANNETTE MIRABAL
CHANDRINAVARRO-BOWMAN*
LARRY T, ORDET

JEREMY ROSS PAGE ¥
TERESA M. POLINO*

ARTHUR K PURCELL*
SUSAN L. RENTON?

BETH C. RING*

LEONARD L. ROSENBERG
FRANCESCA RUSSO-DI STAULO
GILBERT LEE SANDLER
THOMAS G. TRAVIS

KENNETH WOLF*

NANCY J. WOLLIN

“NOT ADMITTED IN FL.
TBOARD CERTIFIED IMMIGRATION & NATIONALITY LAW
TYRESIDENT IN ARGENTINA
PRACTICE LIMITED TO ARGENTINIAN MATTERS ONLY
Y BOARD CERTIFIED INTERNATIONAL LAW

ATTORNEYS AT LAW
THE WATERFORD
5200 BLUE LAGOON DRIVE
MIAMI, FL 33126-2022

(308) 267-9200
FAX (305) 267-5155,
E-MAIL ADDRESS: info@strtrade com
WEBSITE: www strtrade.com

January 8, 2001

Mr. Stephen Ecklund, Senior Investigator

Division of Enforcement

Bureau of Consumer Protection

Federal Trade Commission
600 Pennsylvania Avenue NW
Washington, DC 20580

NICOLE BIVENS COLLINSON
SHANNON E, FURA
JO BRONSON HARRIS
WILLIAM H. HOUSTON
W. CHAD NESBIT
MICHELLE SALEM
RONALD J. SORINI
DENNIS J. WAKEMAN
ADRIAN A. WILLIAMS:
‘TRADE ADVISORS
KIRSTEN |. BAIER
RAUL A. CASAL*tt
PAUL G. GIGUERE*
LEON |. JACOBSON
TODD G. KOCOUREK
NATHAN I. LEDER
LEE MERMELSTEIN*
JANA SIGARS
MONTY J. TILLES
STEPHEN P. WALROTH-SADURNI
‘OF COUNSEL
SANDLER & TRAVIS
TRADE ADVISORY SERVICES

DETROIT
CONSULTING SERVICES

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JAN I 2 200)

WASHINGTON, D.C.

FTC LABELING OF PILLOW AND MATTRESS COVERS ASSEMBLED IN EL
SALVADOR FROM FABRIC FORMED AND CUT IN THE U.S.

Dear Mr. Ecklund:

On behalf of our client, American Textile Co., we hereby request a letter
confirming the proper marking of certain pillow and mattress covers the Company
imports into the United States. The covers in question are assembled in El Salvador from
fabric formed and cut in the U.S.

Under Customs’ rules of origin (19 CFR 102.21(e)), the country of origin for
products of heading 6302 (bed linen) is the country ‘in which the fabric comprising the
good was formed by a fabric-making process.” Thus, the Company’s covers are
considered products of the U.S.

Prior to Customs’ Federal Register notice of July 11, 2000 (65 FR 42634),
although the fabric was formed in the U.S., the Company’s products were considered

NEWYORK = ATLANTA = BALTIMORE = “SANFRANCISCO = MEXICOCITY ~—CHICAGO.-—« BUENOS AIRES

‘OFFICE KNOWN AS SANDLER, TRAVIS & ROSENBERG AND GLAD & FERGUSON, P.C.

HOUSTON