Global Trade Alert

The governor of California signed into law on September 1, 2015 a bill (SB633) that slightly eases the rules regarding the labeling of goods as "Made in America." Under the existing state law, a product could not be marked as "Made in America" unless 100% of its content was domestically sourced. The new law prohibits the sale of merchandise labeled 'Made in U.S.A.,' 'Made in America,' or similar words if the merchandise or any article, unit, or part thereof, has been entirely or substantially made, manufactured, or produced outside of the United States, with the following important distinctions.
First, the articles, units, or parts of the merchandise obtained from outside the United States may account for up to 5% of the final manufactured product.
Second (and in the alternative), the articles, units, or parts of the merchandise obtained from outside the United States constitute not more than 10% of the final manufacturedproduct and the manufacturer of the merchandise shows that it can neither produce the articles, units, or parts within the United States nor obtain the articles, units, or parts from a domestic source, as specified.