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Did you know… The International Trade Commission recently passed new legislation that puts stricter regulations on which products can legally use the label Made in USA?
This new legislation suggests that US Customs and Border Protection will be cracking down on private label products that proudly claim to be “Made in America”.
As you may know, Customs and Border Protection require online retailers that export to the U.S. to clearly label that product’s “country of origin”. Sometimes though, determining the country of origin can be tricky, so let’s look at a few examples:
- You’ve designed a product on U.S. soil and export it overseas for manufacturing. The product is imported back to the U.S. and packaged here before distribution.
- Your product is partially manufactured on U.S. soil, and you export these materials to Vietnam to be assembled into the final product.
- The entire manufacturing & production process occurs in China, and you package the product on U.S. soil before sending it to market.
What do all of these “country of origin” examples have in common? None of these products can legally use the label Made in USA. You could say “Made in China, Packaged in USA.” You could even say “Designed in USA, Made in China.” But if your product claims to be Made in USA, you run the risk of Customs seizing your shipment, slapping you with a hefty fine, and flagging your company for greater scrutiny in the future. And, once you’re on their radar, Customs will flag you every time.
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Whether you’re in product design, supply, manufacturing, assembly, packaging, importing, exporting, distribution or you’re selling a private label product on Amazon, these stricter regulations DO apply to you!
- For overseas suppliers, manufacturers, distributors, online retailers: By law, the U.S. government won’t necessarily chase you down. As previously mentioned however, U.S. Customs will be watching where products are coming out of — if one of your products gets a flag, don’t be surprised if YOU do, too! Keep an eye out for the day when Customs no longer allows flagged manufacturers, suppliers, and distributors to ship their products to the States… what a nightmare for business growth!
- For importers, especially online sellers who are importing product to sell on platforms like eBay or Amazon: for any kind of labeling and packaging, always check with your supplier. If the product goes overseas at any point in the production process, check & double-check the kind of labeling that is being put on it before you try importing it.
No matter what role you play in the production process, we promise that following these stricter rules and regulations is in the best long-term interest of your company. Not only because it is the law, but because the U.S. government is looking for more companies and online retailers who are going to abide by these laws. And don’t think you are safe because you sell online. Don’t think Amazon, for example, is going to protect you. A deeper partnership with the government could mean a greater market for your products and more growth for your business! Play it safe. It will save you a ton of money in the long run.
We’re here to help! Have you ever asked any of these questions?
- Is this the correct labeling for my product?
- What kind of labeling does the packaging need to have on it?
- Do I need multiple languages on the label?
- Which FDA approvals or safety issues should I include?
If so, please don’t hesitate to reach out to us. Many companies all over the world send us samples of their products to ask about the labeling, and we would be so happy to share our decades of experience and expertise with you.
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