Background

Online sales of a wide array of imported goods would have to include country of origin declarations for those goods under a provision of U.S. Innovation and Competition Act. This requirement would take effect nine months after the enactment of this bill, which was passed by the Senate earlier this year and is now awaiting consideration by the House.

Section 2510 of the USICA would require websites listing any imported product requiring origin marking under the Tariff Act of 1930 to include (1) the country of origin of the product, consistent with U.S. Customs and Border Protection marking requirements, and (2) the country in which the seller of the product (and the seller’s parent corporation, if applicable) is located.

For products with more specialized origin labeling requirements, that information would have to be included in the online origin disclosure as well. Such products include the following.

- products subject to country of origin labeling requirements by the Department of Agriculture (perishable agricultural commodities (fresh and frozen fruits and vegetables, and cherries in brine), peanuts, ginseng, pecans, macadamia nuts, fish and shellfish, muscle cuts and ground lamb and venison, goat meat, and chicken)

- prescription and non-prescription drugs

- motor vehicles

- textile and fiber products

- wool products

- fur products

The bill would make clear that false “made in USA” claims on such Internet listings are just as unlawful as any others.

The Federal Trade Commission would enforce these provisions using existing authorities and procedures. The FTC would be required to conclude a memorandum of understanding or other such agreement with CBP to aid in these enforcement efforts.

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