By SEMA Washington, D.C., Staff
Legislation to amend the California law governing “Made in U.S.A.” labeling has been passed by the state legislature and sent to Governor Brown for his signature and enactment into law. California prohibits labeling a product as “Made in U.S.A.” unless the product and its subcomponents have been manufactured in the United States.
The California standard has been interpreted as more onerous than the federal standard, which requires products labeled “Made in U.S.A.” to be “all or virtually all” made in the United States, without reference to subcomponents. The bill seeks to close the gap by allowing the “Made in U.S.A.” label to be used on products sold in California if the product is made in the United States and all its subcomponents that are sourced from outside the United States constitute no more than 5% of the final value of the manufactured product.
Manufacturers of products made in the United States using subcomponents sourced from outside the United States may also use the “Made in U.S.A.” label on products sold in California if the subcomponents cannot be obtained in the United States and all subcomponents sourced from outside the United States make up no more than 10% of the final wholesale value of the manufactured product.
For more information, contact Ashley Ailsworth at ashleya@sema.org.