What We Do
- Insure that the current way you are marking your imports are acceptable.
- Make you are fully aware alternatives available to you as to how to mark your goods.
- Reach informal agreements with Customs or obtain binding rulings as to the acceptability of a desired manner and placement of marking.
- Determine whether you fall under any exemption to country of origin marking requirements.
- Determine country of origin for Customs purposes where goods are partially made in more than one country.
- Seek cancellation or mitigation of any penalty assessment.
More Details
By law, all imported merchandise must be marked to “clearly and conspicuously” indicate the country of origin to the ultimate consumer. Just what is “clear and conspicuous” marking? Who is the “ultimate consumer?” For some products, there is a prescribed manner of marking, such as with a woven, sewn-in label, in-the mold lettering, die-stamping, etc. For most, the answers are in large part subjective. Yet Customs is not free to dictate them as there is a considerable body of precedent. Further, there are numerous situations where the law exempts a product from country of origin marking.
Often goods are partially manufactured in two or more countries. If the processing in more than one country is substantial, a question can arise as to which is the country of origin. This has significance not only for marking purposes but also for eligibility for free entry under our various Free Trade Agreements.
Should Customs believe that your country of origin marking is inadequate, it may deny clearance, or release the shipment only on condition that you re-mark and obtain Customs approval prior to distribution. If the merchandise has been released before Customs has examined a sample and found fault, and the goods cannot be recalled for remarking, a penalty claim will be issued. All penalties can be reduced or cancelled on review. On top of such penalties, the law requires the assessment of an additional 10% duty assessment (of the appraised value of the goods) if the marking problem cannot be rectified.
The FTC has stringent marking requirements under the Wool, Fur, and Textile Fiber Products Identification Acts. Failure to adhere to the agency’s guidelines will likewise result in penalties similar to those described above. Customs enforces the FTC regulations and failure to meet the requirements will result in the actions described for failure to properly indicate country of origin. To label an item “Made in USA” when there is any foreign content in the product always raises an issue.
Contact Us for More Information
You are welcome to call us to review any area of concern. Contact Stephen M. Zelman, Esq., at 1+ 212.245.6100 for a telephone consultation, with no obligation for any fee. E-mail at smz@stevezelman.com.