Classification and Marking of Imported Consumer Products

Semester/year: BUS. 261 - Spring 2012

Classification and Marking of Imported Consumer Products

Research Statement

Most imported products must be legibly marked with their country of origin so that the consumer can see this time of purchase. Imported products must also comply with the same consumer safety, product information and usage instructions applicable to equivalent domestic products, and marked accordingly. Before deciding where and how to tag the product “Made in ______,” if to tag it at all, one should know what the country of production for imported product is. Therefore, before anything, an importer of the product should ask whether factors of production to make the imported product involved more than one country. One common practice among many U.S. importers is to shift the burden of country of origin inquiry on their foreign partners (vendors, suppliers, producers, manufacturers). Quite often, the importer would ask a foreign party to fill out a product specification sheet, where one of the line items would invite a foreign party to indicate what the country of origin for the product is. Such invitation implies that the foreign party filling out the form is knowledgeable about U.S. country of origin laws. (Ahmed 2008)

Foreign parties are not legally required to know the U.S. country of origin laws. This knowledge is a burden, which works against their profit margin. That is why all to often one will see country of origin being the same as the country of export (when it may not in fact be). U.S. importers, on the other hand, have a legal duty to properly declare imported goods, which includes proper declaration and marking (and consequently the knowledge) of the country of origin rules. (Hong 2008)

Process

Following are the steps involved in choosing the product and gathering its information accordingly.

Step 1: First, I have categorized the products that are to be selected for the research. Six categories were created.

Step 2: Then I have selected one imported good from each of the six categories that are widely used and common in the US consumer market.

Step 3: Pictures taken for each of the six products that were selected using digital camera.

Step 4: Gathered information regarding the HTSUS classification process. Determination of the proper tariff classification is complicated. For example, determining the country of origin must be accurate, because international trade agreements may provide exemptions from restrictions and special treatment for goods meeting specialized country of origin rules. Additionally, valuation of the product is not as simple as the price paid for the good: adjustments under the law must also be considered. These can include a variety of things, such as royalties associated with the production of the good that may be added to the price.

Step 5: Finally report was compiled by using the information regarding the marking and information that must appear on the product or package based on the research of government regulations.

Data

Garment

Worn Clothing

Shoes

Hush Puppies

Small plug-in electrical appliance

Hair Dryer

Hand tool

Socket Set

Processed Food item

Consumer Electronics item ...