INTERNATIONAL TRADE LAW
Country of Origin Marking Rules for Importers
U.S. law requires that nearly every imported article be marked, legibly, permanently, and conspicuously, with its country of origin so the ultimate purchaser in the United States knows where the product was made. The rule comes from 19 U.S.C. § 1304, and getting it wrong is costly: improperly marked goods face a 10% ad valorem marking duty and can be held, or hit with a Notice to Mark or Redeliver. This guide explains what must be marked, how to determine the country of origin, and how to stay compliant.
What the Rule Requires
The marking must be in English, permanent enough to survive normal handling to the ultimate purchaser, and conspicuous enough to be seen and read easily. The key concept is the ultimate purchaser — generally the last U.S. person who receives the article in the form in which it was imported. The marking exists to inform that person. Containers must also be marked when the goods inside reach the ultimate purchaser in that container.
Some articles are excepted — for example, goods incapable of being marked, or those that would be damaged by marking — but exceptions are specific and narrowly applied; when one applies, the outermost container usually must still be marked.
Determining the Country of Origin
You cannot mark a product until you know its origin, and origin is not always where it shipped from. Two scenarios:
- Wholly produced in one country — origin is that country.
- Made from materials or processing in multiple countries — origin is determined by substantial transformation: the country where the goods last underwent a fundamental change in name, character, or use. Mere assembly, repackaging, or minor finishing usually is not a substantial transformation.
Origin is a separate question from HTS classification — what a product is versus where it’s from — though both feed into the duties and trade-remedy measures (Section 301, 232) that apply. Note that special “marking rules” can apply to goods of USMCA countries, so confirm the regime that fits your supply chain.
The Cost of Getting It Wrong
| Consequence | Detail |
|---|---|
| 10% marking duty | An ad valorem duty under 19 U.S.C. § 1304 on goods not properly marked |
| Notice to Mark/Redeliver | CBP Form 4647 demanding correction or return of the goods within 30 days |
| Detention / non-release | Improperly marked goods can be held at the border |
| Penalties | Intentional removal or false marking can bring further penalties |
How to Stay Compliant
Build marking into the supply chain rather than fixing it at the border. Specify marking requirements in your supplier purchase orders, confirm the correct origin using a substantial-transformation analysis before goods ship, verify marking on receipt, and document your origin determinations in case CBP asks. When origin is genuinely unclear — common with multi-country production — a CBP binding ruling on country of origin gives you certainty. Marking is part of CBP’s wider oversight of imports; building it in upstream is far cheaper than a marking duty plus a redelivery scramble.
Frequently Asked Questions
What does country of origin marking require?
Under 19 U.S.C. § 1304, most imported goods must be marked legibly, permanently, and conspicuously in English with their country of origin, so the ultimate purchaser in the U.S. knows where the article was made. Containers must often be marked too.
How is country of origin determined?
If a good is wholly produced in one country, that’s its origin. If multiple countries are involved, origin is the country where the goods were last “substantially transformed” — given a new name, character, or use. Minor assembly or repackaging generally does not qualify.
What is the penalty for improper marking?
Improperly marked goods are subject to a 10% ad valorem marking duty under 19 U.S.C. § 1304, can be issued a Notice to Mark or Redeliver (CBP Form 4647), may be detained, and can face additional penalties for intentional or false marking.
Is country of origin the same as where the product shipped from?
No. Origin is where the product was made or substantially transformed, not necessarily where it was shipped or exported from. A product can ship from a country that is not its country of origin.
Marking errors are among the most common — and most avoidable — customs problems. Reidel Law Firm helps importers determine origin, request binding rulings, and build marking compliance into the supply chain on flat-fee terms. Get an import compliance memo.
