Country-of-origin labeling: the 10% mistake
Two separate rules, two separate traps. Customs side: every article of foreign origin imported into the US must be marked with its country of origin — conspicuously, legibly, indelibly, permanently, in English ('Made in China', not a supplier's sticker that peels off) — and unmarked goods owe an additional 10% marking duty on top of normal duties, with criminal exposure for intentional removal. Marketing side: an unqualified 'Made in USA' claim requires the product to be 'all or virtually all' made domestically, and since the FTC's 2021 Labeling Rule that standard carries civil penalties per violation. Assembling imported components in the US does not make it 'Made in USA'.
What passes and what doesn't
Passing marks are part of the product: molded into the casing, woven into the label, printed durably on the item or (where rules allow) its sealed container that reaches the buyer. Failing marks are the classics: stickers that fall off in transit, markings hidden under packaging inserts, English-less labels, or origin on the shipping box only. Origin itself follows manufacture, not shipment — goods made in China and warehoused in Canada are still 'Made in China', the same substantial-transformation logic your duty rate runs on.
For sellers the checklist is upstream: specify the marking in your factory PO (durability, wording, placement), photograph it in pre-shipment inspection, and never let a supplier 'help' with neutral or US-flag packaging — the 10% marking duty is assessed against you, the importer, and qualified claims like 'Assembled in USA of imported parts' exist precisely so you can market legally.
Common questions
- Do parcels direct to consumers need marking too?
- The marking statute covers imported articles broadly; enforcement intensity varies by channel, but an unmarked product is also unsellable to US retail partners and vulnerable at any customs exam — spec it correctly from the first production run.
Official sources behind these numbers
- Under 19 U.S.C. 1304 as implemented by 19 CFR 134.11, every article of foreign origin (or its container) imported into the US must be marked in a conspicuous place, as legibly, indelibly, and permanently as the nature of the article permits, so as to indicate to the ultimate purchaser in the US the English name of the country of origin eCFR (19 CFR 134.11) · verified 2026-07-22
- Articles not marked with country of origin as required are subject to an additional duty of 10 percent of the final appraised value unless exported or destroyed under Customs supervision prior to liquidation, as provided in 19 U.S.C. 1304(f) eCFR (19 CFR 134.2) · verified 2026-07-22
- An unqualified 'Made in USA' claim requires the product to be 'all or virtually all' made in the US: final assembly or processing occurs in the US, all significant processing occurs in the US, and all or virtually all ingredients/components are made and sourced in the US (no more than negligible foreign content) FTC · verified 2026-07-22
- The FTC's Made in USA Labeling Rule (finalized August 2021, 16 CFR Part 323) codified the 'all or virtually all' standard for product labels, including catalogs and online; marketers are subject to civil penalties for unqualified Made in USA labels on products that do not meet the standard FTC · verified 2026-07-22 · effective 2021-08-13