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.


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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 |

Andrew Siciliano | +1 (631) 425-6057 |

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