If you are drafting language about where a product is made, the central point is this: not being required to carry a foreign-country marking does not clear a product to be marketed as "Made in USA." The FTC separates its deception analysis from the Customs Service's origin rules, and the two can reach different conclusions about the same good.
This guide explains the distinction from the source claims, gives a comparison table you can use as a structure template, and flags what the source does not resolve. It does not tell you whether any specific product qualifies.
Two regulators, two different questions
Country-of-origin regulation in the United States is split. The FTC acts against deceptive acts and practices, and foreign-origin markings on products (for example, "Made in Japan") are regulated primarily by the U.S. Customs Service under the Tariff Act of 1930.
Section 304 of the Tariff Act, 19 U.S.C. § 1304, is administered by the Secretary of the Treasury and the Customs Service. It requires that all products of foreign origin imported into the United States be marked with the name of a foreign country of origin.
The Customs Service therefore runs a marking regime, while the FTC runs a deception regime. Per the policy statement, the FTC will consider additional factors, beyond those the Customs Service uses to decide whether a product is of foreign origin, when deciding whether a product may properly be represented as "Made in USA."
The substantial transformation test, in plain terms
When an imported product combines materials or processing from more than one country, Customs treats the country of origin as the last country where a "substantial transformation" took place. A substantial transformation is a manufacturing or other process that produces a new and different article of commerce, with a new name, character and use different from what existed before the processing.
These country-of-origin determinations are made case by case through administrative determinations by the Customs Service. Where Customs finds that a good undergoes its last substantial transformation in the United States, there is generally no requirement that it be marked with any country of origin.
That absence of a marking requirement is a compliance outcome, not a marketing authorization. The policy statement is explicit: the fact that a product is not required to be marked with a foreign country of origin does not mean it is permissible to promote that product as "Made in USA."
Comparison table for a claims review
The table below is a structure template. It organizes the questions, but it is not a decision rule, and no row produces a compliant claim by itself.
| Question | Customs marking frame | FTC deception frame |
|---|---|---|
| Trigger | Imported goods must be marked with a foreign country of origin | Use of a phrase or symbol that conveys a U.S. origin claim |
| Core test | Last substantial transformation | Whether the claim is deceptive, considering additional factors |
| Process | Case-by-case administrative determinations | Circumstances in which the symbol or phrase is used |
| No foreign marking required | Generally no marking obligation | Does not permit a "Made in USA" promotion |
Implied claims: flags, names and trademarks
Express "Made in USA" wording is only part of the picture. Whether a particular symbol or phrase, including an American flag, conveys an implied U.S. origin claim depends on the circumstances in which it is used.
Ordinarily, however, the Commission will not treat a marketer's use of an American brand name or trademark, without more, as a U.S. origin claim. That holds even though some consumers may believe, in some cases mistakenly, that a product made by a U.S.-based manufacturer is made in the United States.
For editors and research assistants, this is the practical lesson for drafting: describe the specific claim and the specific context, rather than asserting a general rule that a name or flag is always safe or always risky.
What most goods are not required to carry
For most goods, neither the Customs Service nor the FTC requires that goods made partially or wholly in the United States be labeled with "Made in USA" or any other indication of U.S. origin. A U.S. origin claim is generally voluntary messaging, which is why it falls under deception standards rather than a mandatory labeling schedule.
Marketers developing country-of-origin labeling are also urged to consult the relevant authorities, since the policy statement addresses only certain U.S. origin issues and does not consolidate every labeling requirement.
A worked example, labeled as hypothetical
Hypothetical: A hypothetical producer imports components and performs final assembly in the United States, resulting in an article with a new name, character and use. Under the Customs frame, the last substantial transformation may occur in the United States, so no foreign-country marking may be required.
Hypothetical: That same producer prints "Made in USA" on the package. The no-marking conclusion does not authorize that promotion; the FTC applies its own deception analysis and additional factors. The example shows only that the two questions are distinct.
What the source does not say
- It does not state that any particular product or category qualifies as "Made in USA."
- It does not give a percentage-of-domestic-content threshold for using the phrase.
- It does not resolve whether a given brand name or American flag use is an implied origin claim; that depends on circumstances.
- It does not provide a general safe harbor for products with no foreign marking requirement.
Treat any claim about a specific product as an open question until the applicable analysis is applied to that product's facts.