October 16, 2015
UNITED STATES - The Governor of the State of California has enacted Senate Bill 633 that includes the state’s restrictions on the “Made in U.S.A.” labeling requirements.
Current rules state that labeling of products with “Made in U.S.A.,” or anything similar, is prohibited if any of its components were produced outside the United States. The new bill will allow a “Made in U.S.A.” label with the following provisions:
- The foreign components or parts do not constitute more than 5% of the final wholesale value of the product.
- 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.
For the second condition, it is noted that 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.
It will be enforced on January 1, 2016.