"Made in USA" is a marketing claim regulated by the Federal Trade Commission under Section 5 of the FTC Act and the Made in USA Labeling Rule (16 CFR Part 323). It is distinct from CBP country of origin marking, which governs imported goods.
The FTC standard is "all or virtually all" — meaning that all significant parts and processing that go into the product must be of U.S. origin, with no or only a negligible amount of foreign content. The product's final assembly or processing must take place in the United States.
Factors the FTC considers:
- Where the product is assembled
- Where significant manufacturing operations take place
- The percentage of U.S. content (typically aiming for 95%+ by cost)
- The proximity of foreign content to the finished product
A product made with substantial foreign content cannot be labeled "Made in USA" without qualification. Qualified claims are permitted (e.g., "Assembled in USA from imported and domestic components" or "Made in USA from imported leather") provided they are truthful.
The FTC's Made in USA Labeling Rule, effective August 2021, codified the standard and authorized civil penalties — up to $51,744 per violation as of 2024 — for false unqualified claims. Recent enforcement actions have targeted apparel, electronics, and consumer goods manufacturers.
For goods that are imported, CBP marking determines the displayed country of origin based on substantial transformation, not the FTC's "all or virtually all" test. An imported good that is substantially transformed in the U.S. might lose its imported-country-of-origin marking obligation but still not qualify for an unqualified "Made in USA" claim under FTC rules.
Separate origin rules apply for government procurement (Buy American Act, Trade Agreements Act), textile/apparel (16 CFR § 303, Wool/Fur Acts), and automotive labeling (American Automobile Labeling Act).