Made in USA?
Closing out this month celebrating the great experiment that is the United States of America, our team has been fielding questions about what it means to carry the label “Made in USA” – the answer is not as clear-cut as you may think.
As designers and construction professionals, you do your best to stay on top of the requirements of each job. Understanding the nuances of these domestic requirements and how they relate to the products you specify is just one example of the consultative information you can rely on the team at Powers to provide. Call us, we’re here to assist.
“Made in USA”
This label used to be so simple. There was no confusion about what it meant or the pride that backed it. Time marches on and things are not as simple as they once were. Now “Made in USA” or the synonymous “Made in America,” carry a variety of meanings. Was the entire product made in the U.S. or just assembled here? Was it made and assembled here but containing some foreign-sourced components? Were the components made in the U.S., sent abroad for assembly, and returned to the U.S. for sale?
Seeking clarification, in 2021 the Federal Trade Commission (FTC) finalized a new rule to crack down on marketers who make unqualified “Made in USA” claims about their products. According to the FTC, “Made in USA” means that “all or virtually all” the product has been made in America. All significant parts, processing, and labor that go into the product must be of U.S. origin.
Why does “Made in USA” matter?
Buying “Made in USA” products guarantees that products come from manufacturers that follow US labor federal and state labor laws to ensure safe and fair work practices. It ensures you are not contributing to sweatshops, child labor, slave labor, and dangerous working conditions. “Made in USA” promotes a stronger economy, supports domestic labor, encourages sustainability, and reduces pollution.
“Assembled in USA”
If a product contains components outside the United States, all hope of a patriotic label is not lost. According to the FTC, a product that includes foreign components may be called “Assembled in USA” without qualification when its main assembly is in the U.S. and is substantial. For the “assembly” claim to be valid, the product’s “last substantial transformation” also should have occurred in the United States. However, if a hammer, for example, is comprised of foreign components and was assembled into a final product in the U.S. at the end of manufacturing, it does not usually qualify for the “Assembled in USA” claim.
“Buy American Act” and “Buy America”
While we’re doing all this regulation flag-waving, we need to mention two related laws that impact our construction and design-related businesses. Intertwined with the “Made in USA” label are the “Buy American Act” and “Buy America.” While these domestic preferences have similar-sounding names, they are different in important ways.
The “Buy American Act ” sets requirements for U.S. government procurement requiring that a product be manufactured in the U.S. of more than 50 percent U.S. parts to be considered “Made in USA” for government procurement purposes.
Enacted in 2021, the “Buy America” Act requires federal agencies to prioritize domestic content when awarding financial assistance for infrastructure projects.
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