California Passes “Made in USA” Labeling Rule
Released on: October 22, 2015, 3:36 am
Hong Kong, October 22, 2015 -- /EPR NETWORK/ -- On 1st September 2015, the governor of the State of California signed Senate Bill 633 (1) into law. The new law loosens California’s restrictive “Made in USA” labeling requirements to align more closely with the US federal standard for domestically produced products in the other 49 states.
The new California law will become effective on 1st January 2016.Prior to California’s new labeling rule, the state prohibited labeling a product as “Made in USA”, or anything similar, if any part of the underlying product was produced outside the United States. Only products 100% sourced and manufactured in the United States could be labeled as “Made in USA”.
The Federal Trade Commission’s (FTC) “Made in USA” standard requires that a product be labeled American made if “all or virtually all” of its components are manufactured domestically and that its final assembly must occur within the United States.
New “Made in USA” Labeling in California
The new California law permits products to be labeled as “Made in USA” or carry similar labeling claims provided that:
- The foreign components or parts do not constitute more than 5% of the final wholesale value of the product, or
- The foreign components or parts do not constitute more than 10% of the final wholesale value of the product AND the manufacturer demonstrated that those components or parts are unavailable in the United States.
The determination that the components or parts cannot be made, manufactured, produced, or obtained within the United States from a domestic source shall not be based on the cost of the components or parts. The new law also clarified that goods sold or offered for sale outside of California are not mislabeled as long as the labels conform to the law where they are sold or offered for sale.
(1) California Legislative Information – Senate Bill No. 633 – Approved September 1, 2015. (http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB633)
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