Revisions to California’s “Made in U.S.A.” rules

Revisions to California’s “Made in U.S.A.” rules

The governor of California has signed into law, legislation (S.B. 633) that provides an exemption for certain merchandise from the California “Made in U.S.A.” rules if it includes a small amount of articles, units, or parts that originate from outside the United States.

Related content

Before this change, California law prohibited the sale of merchandise that showed the words "Made in U.S.A.," "Made in America," "U.S.A." when the merchandise (or any article, unit, or part of it) was entirely or substantially made, manufactured, or produced outside of the United States.

S.B. 633 exempts from the “Made in U.S.A.” label prohibition any merchandise that was made, manufactured, or produced in the United States if either:

  • The merchandise has one or more articles, units, or parts from outside the United States that do not constitute more than 5% of the final wholesale value of the product; or
  • The manufacturer makes a specified showing regarding the articles, units, or parts from outside the United States and they do not constitute more than 10% of the final wholesale value of the product.

The provisions under the new law also do not apply to merchandise sold for resale to consumers outside of the state. Merchandise offered or sold outside the state would not be deemed mislabeled if the label conforms to the law of that state or country.

 

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.