MADE IN USA COMPLIANCE CHECKLIST

DOCUMENT CONTROL

PART I: CLAIM IDENTIFICATION

Section A: Type of Origin Claim

What claim is being made or considered?

☐ Unqualified Claim: "Made in USA," "Made in America," "American Made"
☐ Qualified Claim: "Made in USA with imported materials," "Assembled in USA from imported parts"
☐ Implied Claim: U.S. flag, map of USA, references to U.S. locations
☐ No Claim: Product does not make any origin claims

Section B: Where Claim Appears

☐ Product label/packaging
☐ Hangtags
☐ Website product pages
☐ Advertising (print, digital, broadcast)
☐ Catalogs
☐ Social media
☐ Point-of-sale materials
☐ Product inserts
☐ Trade show materials
☐ Other: [________________________________]

Section C: Claim Language (Exact Wording)

[________________________________]
[________________________________]
[________________________________]

PART II: "ALL OR VIRTUALLY ALL" STANDARD

Section A: Understanding the Standard

For an unqualified Made in USA claim, the FTC requires that the product be "all or virtually all" made in the United States, meaning:

1. Final assembly or processing must occur in the United States
2. All significant parts and processing must be of U.S. origin
3. The product should contain no or negligible foreign content

Section B: Final Assembly/Processing

Where is the product finally assembled or processed?

Location: [________________________________]
City/State: [________________________________]

☐ Final assembly occurs entirely in the United States
☐ Final assembly occurs partially in the United States
☐ Final assembly occurs outside the United States

Describe the final assembly/processing operations:
[________________________________]
[________________________________]

PART III: BILL OF MATERIALS ANALYSIS

Section A: Component Origin Inventory

Complete for all significant components, parts, and materials

Section B: Cost Summary

Section C: Tracing Requirements

For components purchased from U.S. suppliers:

☐ Verified that supplier's components are also U.S.-origin
☐ Obtained supplier certifications of origin
☐ Documented supplier supply chain verification

Warning: Components purchased from U.S. suppliers may still be of foreign origin. The FTC looks to the actual origin of materials, not where they were purchased.

PART IV: UNQUALIFIED CLAIM ELIGIBILITY

Section A: Qualifying Criteria Checklist

Answer all questions to determine if an unqualified claim is permissible:

1. Final Assembly:
☐ All final assembly occurs in the United States

2. Significant Processing:
☐ All significant processing occurs in the United States

3. U.S. Parts and Materials:
☐ All or virtually all parts and materials are of U.S. origin

4. Foreign Content:
☐ Foreign content is negligible
☐ Foreign content does not exceed [____]% of total cost
☐ Foreign parts are not significant to the product

5. Consumer Perception:
☐ Consumers would not be deceived by an unqualified claim given actual origin

Section B: Foreign Content Analysis

Identify all foreign-origin content:

Is the foreign content:
☐ Negligible in cost and consumer importance
☐ Modest but not significant
☐ Significant to the product's character or value

Section C: Eligibility Determination

Based on the above analysis:

☐ ELIGIBLE for unqualified Made in USA claim
- Product is "all or virtually all" made in USA
- Foreign content is negligible
- Final assembly and significant processing in USA

☐ NOT ELIGIBLE for unqualified claim - Consider qualified claim
- Significant foreign components present
- Foreign content exceeds negligible threshold
- Final assembly outside USA

☐ REQUIRES FURTHER ANALYSIS - Consult legal counsel
- Borderline determination
- Complex supply chain
- New product or supplier changes

PART V: QUALIFIED CLAIM OPTIONS

Section A: Appropriate Qualifications

If an unqualified claim is not permissible, consider these qualified alternatives:

Assembly-Based Claims:
☐ "Assembled in USA from imported parts"
☐ "Assembled in USA with domestic and foreign components"

Process-Based Claims:
☐ "Made in USA from imported materials"
☐ "Manufactured in USA with imported components"

Proportional Claims:
☐ "Made in USA with [X]% imported materials"
☐ "[X]% U.S. content"

Regional Claims:
☐ "Designed in USA"
☐ "Engineered in USA"
☐ "Packaged in USA"

Section B: Qualification Requirements

For a qualified claim to be valid:

☐ The qualification is clear and conspicuous
☐ The qualification accurately describes the foreign content
☐ The qualification does not minimize or obscure foreign origin
☐ The qualification appears in immediate proximity to the claim
☐ The qualification is in the same font size/prominence as the claim
☐ The net impression is not misleading

Section C: Selected Qualified Claim

Proposed qualified claim language:
[________________________________]
[________________________________]

Justification for qualification:
[________________________________]
[________________________________]

PART VI: IMPLIED CLAIMS REVIEW

Section A: Implied Claim Identification

Does the product or marketing contain any of the following:

☐ American flag imagery
☐ Map of the United States
☐ "USA" or "America" in brand name or product name
☐ References to U.S. cities, states, or landmarks
☐ References to "American" quality, values, or traditions
☐ Red, white, and blue color schemes suggesting U.S. origin
☐ Patriotic imagery or themes
☐ References to U.S. manufacturing facilities

Section B: Implied Claim Analysis

For each implied claim identified:

Risk Assessment:
☐ Low risk - Imagery does not suggest U.S. origin in context
☐ Medium risk - Some consumers may perceive origin claim
☐ High risk - Imagery clearly implies Made in USA

PART VII: DOCUMENTATION AND SUBSTANTIATION

Section A: Required Documentation

Collect and maintain the following:

☐ Bill of materials with origin certifications
☐ Supplier certificates of origin
☐ Manufacturing process documentation
☐ Cost breakdown by origin
☐ Supply chain audit reports
☐ Customs documentation for imported components
☐ Third-party verification reports (if applicable)

Section B: Supplier Verification

Section C: Record Retention

All documentation supporting Made in USA claims should be retained for:
☐ Minimum [____] years from last date claim was made
☐ Available for inspection by FTC or state regulators
☐ Organized and accessible for rapid response to inquiries

PART VIII: ONGOING COMPLIANCE

Section A: Monitoring Requirements

☐ Quarterly review of supplier origin certifications
☐ Annual supply chain audit
☐ Immediate review when suppliers change
☐ Review when product formulation/composition changes
☐ Monitor for FTC enforcement trends and guidance updates

Section B: Change Management

Trigger events requiring re-evaluation:

☐ New supplier onboarding
☐ Existing supplier changes manufacturing location
☐ Product reformulation or redesign
☐ Cost structure changes affecting origin percentages
☐ Raw material sourcing changes
☐ Regulatory guidance updates

Section C: Compliance Review Schedule

PART IX: RISK ASSESSMENT

Section A: Enforcement Risk Factors

Evaluate risk level for each factor:

Section B: Penalty Exposure

Current civil penalty per violation: Up to $53,088 (2025, adjusted annually)

Potential exposure calculation:

Number of products sold with claim: [________________]
Potential penalty range: $[________________] to $[________________]

Section C: Overall Risk Rating

☐ Low Risk - Claim fully substantiated, documentation complete
☐ Medium Risk - Some documentation gaps, borderline determination
☐ High Risk - Significant substantiation concerns, recommend claim modification

PART X: CERTIFICATION AND APPROVAL

Section A: Compliance Certification

I, [________________________________], certify that:

1. I have reviewed the product's bill of materials and manufacturing process.
2. I have verified supplier origin certifications for all significant components.
3. Based on my review, the origin claim indicated below is substantiated:

Approved Claim:
☐ Unqualified: "Made in USA"
☐ Qualified: [________________________________]
☐ No origin claim recommended

Signature: _________________________________
Title: [________________________________]
Date: [__/__/____]

Section B: Legal/Compliance Approval

☐ Approved for use
☐ Approved with modifications: [________________________________]
☐ Not approved - further substantiation required
☐ Not approved - recommend different claim

Legal Reviewer: [________________________________]
Date: [__/__/____]

Section C: Marketing Approval

Marketing has reviewed and will implement approved claim language:

Signature: _________________________________
Title: [________________________________]
Date: [__/__/____]

PART XI: APPENDICES

Appendix A: State-Specific Requirements

Note: Some states have additional Made in USA requirements

Appendix B: Document Index

SOURCES AND REFERENCES

• FTC Made in USA Standard Compliance Guide
• 16 CFR Part 323 - Made in USA Labeling Rule
• FTC Made in USA Guidance
• Made in USA Claims: Compliance Risks and Best Practices
• FTC to Sharpen Focus on Made in USA Claims

This checklist is designed for use by compliance professionals evaluating Made in USA claims. Given the significant penalties for violations (up to $53,088 per violation), all claims should be reviewed by qualified legal counsel before use.