Understanding the Difference: America-Built versus America-Assembled Items Explained!
When a product boasts it's "Made in America," consumers often feel a sense of pride and confidence. Products made Stateside aren't just a money-maker; they keep jobs within the country, minimize carbon footprints, and showcase national pride. The label might be straightforward, but "Assembled in America" is a bit more vague. So just what's the difference between these two?
Breaking Down "Made in USA"
When a product dons the "Made in USA" badge, it means its manufacturing process follows rules set by the Federal Trade Commission (FTC). If a label reads "Manufactured in USA" or "Produced in USA," these are considered unqualified U.S. origin claims. To understand the meaning behind "all or virtually all," pop over to the FTC's website, where you'll see that it explains "all or virtually all" parts and processing must be of U.S. origin.
The "all or virtually all" claim means that a product's significant parts and manufacturing process must be sourced domestically. Even the thread used to stitch a product together or industrial-strength adhesive used on shoe soles need to be American. And regardless of foreign content, the product must be primarily manufactured within U.S. borders. Consider a pair of shoes: if 90 percent is made in the U.S. and the final touches are added in Mexico, it can still be labeled as "Made in USA," as the foreign additions don't significantly change the product or represent over 18 percent of the final product.
To ensure your product qualifies as "Made in USA," give the FTC's website a visit. Familiarize yourself with the rules and regulations and make sure your product complies.
Closer Look at "Manufactured in USA"
When a product originates from another country but is manufactured domestically, it qualifies for a qualified U.S. origin claim. This means it must disclose some info about foreign parts but doesn't necessarily have to reveal their origin. For example, imagine a furniture company uses teak wood from Indonesia to make a bedroom set. They may promote their Indonesian teak as a selling point. However, if they believe disclosing the origination wouldn't boost sales, they might opt to label the foreign teak content as a percentage instead, such as 75 percent U.S. content, clarifying that the majority of the product is American without claiming to be entirely domestic.
For "Manufactured in USA," the FTC requires the product undergo a final transformation into a finished product on American soil. The FTC defines it as "significantly transformed" in the U.S., but if it's labeled as such, it should state that it's not entirely American, like "Manufactured in USA with Foreign Parts" or "Made in USA" but with some assembly in Vietnam. As long as the final production stage took place in the U.S., these labels are all permitted under the FTC.
Assembling in the USA
The murkiest of labels, "Assembled in the USA," refers only to the final stage of manufacturing and does not require companies to disclose the origin of their parts. If a company isn't keen on divulging the product's origin, it can refer to the product simply as "foreign parts" on its labeling. The FTC requires the label to be backed up by the final stage of transformation within U.S. borders. Even when no other portion of the product is created domestically, if the last stages of assembly or completion occur in an American factory or studio, it can still qualify as "Assembled in the USA."
Whether to use the "Assembled in USA" label or leave it off is up to the creators. If it doesn't boost sales, they may opt to keep quiet about where the product was assembled. The FTC doesn't require it to be announced on the packaging.
Manufacturing In and Out of the USA: Automobiles
The automobile industry is no stranger to the power of the "American Made" label. It can sway an indecisive shopper. However, many car companies and manufacturing centers collaborate with foreign partners to make the cars more affordable. Surprisingly, President Trump's administration aims to see 85 percent of auto production done domestically. That change may come with some pros and cons. Experts argue that even if the government manages to enforce the 85 percent auto production quota, it won't necessarily result in car companies returning to the U.S. for their initial stages. Mexican companies could simply pay an additional 2.5 percent tax to comply with any new regulations.
Car companies like Dodge and Ford, who boast American roots, take advantage of the nuances of the "Made in America" label. According to Time Magazine, 83 percent of Dodge's cars are manufactured domestically, and Ford scores slightly worse at 64 percent. Only Tesla has managed to produce its entire fleet in the U.S., whereas Chrysler uses American labor for only 33 percent of its production.
The intricacies surrounding "Made in America" labels can confuse consumers, and as foreign trade agreements continue to be negotiated, it's up to shoppers to research the products they buy to know where their goods hail from. Let's hope America experiences a renaissance of American-made goods and handmade items soon, igniting a spark of national pride. Just remember, as the automobile industry has evolved, so too have the ideals of American production.
- In the complex world of global trade, supply chain management plays a crucial role in ensuring the 'Made in USA' label is accurately represented, as it involves sourcing domestic parts and adhering to the rules set by the Federal Trade Commission.
- When a product is 'Manufactured in USA' but contains foreign parts, it is expected to disclose the foreign content information, even if it doesn't reveal their origins, thanks to logistics and the processes involved in supply chain management.
- In contrast, 'Assembled in the USA' labels have the least disclosure requirements, as they only signify the final stage of manufacturing and do not necessitate revealing the product's component origins, but rely on technology for traceability and adherence to the FTC's regulations.
