Elaine Kolish, associate director for enforcement at the Federal Trade Commission, discusses the FTC's "Made in the USA" standard for U.S. manufactured goods.

Why is it important to have a "Made in the USA" standard?
     The FTC is charged with preventing deceptive practices in the marketplace. Any claim for a product's domestic origin should be truthful and substantiated. Additionally, a "standard" provides a level playing field and allows all industry members to understand what is required so they can comply. Traditionally, the FTC has required that a product advertised as "Made in the USA" be "all, or virtually all" made in the U.S. In 1997, the FTC announced that it would retain that standard and created a policy statement to describe the basis for the standard and how it would be applied.

How do "unqualified" claims differ from "qualified" claims?
     A "qualified" claim simply means that the extent, amount, or type of a product's content or processing is not entirely of domestic origin. A qualified claim would be appropriate if a product has a significant amount of U.S. content or U.S. processing. Qualified claims are typically based on such things as how much of a product's total manufacturing costs can be assigned to U.S. parts or on identifying discrete U.S. parts or processing.

What other kinds of claims can be made by manufacturers under the FTC guidelines?
     There are several other kinds of claims. "Comparative" claims typically describe the amount of U.S. content or processing based on a meaningful difference in U.S. content between two compared products. "Assembled in the USA" claims are appropriate when the principal assembly of a product takes place in the U.S.

How do the FTC and the Customs Service cooperate on country-of-origin claims?
     The Tariff Act gives Customs 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 generally makes country-of-origin determinations using the "substantial transformation" test on a case-by-case basis.

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 more than where the last substantial transformation took place 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. Advertising a product as Made in the USA is voluntary.

What if I suspect noncompliance with the FTC's Made in USA standard or country-of-origin mislabeling?
     If you suspect noncompliance, contact the Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580; (202) 326-2996 or send an e-mail to MUSA@ftc.gov. If you know about import or export fraud, call Customs' toll-free Commercial Fraud Hotline, 1-800-ITS-FAKE.

More information about the "Made in USA" standard is available on the Federal Trade Commission Web site, www.ftc.gov/bcp/conline/pubs/buspubs/madeusa.htm