06/10/96 - 161 - Comments for Tile Council of America, Inc. By Robert Daniels Federal Trade Commission Received Documents June 10, 1996 P894219 B18354900161 Tile Council of America, Inc. June 7, 1996 Donald S. Clark Office of the Secretary Federal Trade Commission, Room 519 Sixth & Pennsylvania Avenue, N.W. Washington, D.C. 20580 Re: ?Made in USA? Comment, FTC File No. P894219 Dear Secretary Clark: Tile Council of America, Inc. (?TCA?) submits this letter in response to the Federal Trade Commission's ("FTC") request for comments concerning use of the term ?Made in USA? in product advertising and labeling. 60 Fed. Reg. 53922 (Oct. 18, 1995); 61 Fed. Reg. 18600 (Apr. 26, 1996). TCA is a trade association representing more than forty American manufacturers of ceramic tile and related products. These companies produce over 70 percent of the ceramic tile manufactured in the United States. Currently, about 60 percent of the ceramic tile sold in the United States is imported. It is extremely important to the U.S. ceramic tile industry, therefore, that imported ceramic tile be correctly marked and that the ?Made in USA? label is not misused. As such, TCA welcomes the FTC's review of this important issue and encourages strict enforcement of what has been a problematic point for many of our domestic tile companies. In this regard, TCA has received complaints from tile manufacturing companies about fraudulent use of the ?Made in USA? label by foreign ceramic tile producers, most significantly by certain large Mexican manufacturers. TCA, in short, strongly supports use of the "all or virtually all" standard to determine use of the ?Made in USA? claim. In the context of ceramic tile, the "all or virtually all" standard is the most reasonable, feasible and accurate method to evaluate whether ?Made in USA? may be used. For ceramic tile, the standard should mean that both the basic raw materials (e.g. clay) and labor are of U.S. origin. As such, if either the raw materials or labor are not of U.S. origin, the claim ?Made in USA? should not be permitted. In these comments, I first briefly describe how ceramic tile is manufactured. The importance and relevance of use of the term ?Made in USA? then is described. I will then address why the "all or virtually all" standard is the most appropriate standard to determine whether ceramic tile is ?Made in USA?. P.O. Box 1787 Clemson, South Carolina 29633-1787 Tel (864) 646-TILE Fax (864) 646-2821 Donald S. Clark June 7, 1996 Page 2 A. Manufacture of Ceramic Tile Ceramic tile is a surfacing product, usually relatively thin in relation to facial area, made from clay or a mixture of clay and other earthen materials and fired to a temperature sufficiently high to produce specific physical properties and characteristics. Unglazed tile is a hard, dense tile of uniform composition throughout, deriving color and texture from the materials of which the body is made. Glazed tile has an impervious facial finish composed of ceramic materials fused to the body of the tile. B. The Importance of "Made in USA" to Ceramic Tile Correct use of the ?Made in USA? label is extremely important with respect to the domestic ceramic tile market. It is TCA's experience and the experience of our member companies that customers may be strongly influenced to purchase "Made in USA" marked tile. When ?Made in USA? is marked on ceramic tile it conveys distinctive quality, high reliability, access to service and matching trim shapes, and subsequent ability to match replacement or additional tiles. Retail consumers of ceramic tile rely on the ?Made in USA? label and benefit from use of the label for the following reasons: ? ability of the customer to obtain additional or replacement tiles identical to those being purchased ? access to complimentary trim shapes ? availability of follow-up service and installation consultation ? product guarantees or warranties to U.S. standards for such characteristics as breakage and slip resistance ? ?Made in USA? is required for commercial customers purchasing for certain federal or state jobs ? allows consumers to choose between the U.S. ceramic tile and imported ceramic tile ? aids in determining likely place of product availability ? basis for determining quality of materials, workmanship and service ? basis for establishing information on conditions of production (including labor conditions and health and safety tests) Donald S. Clark June 7, 1996 Page 3 ? basis for price comparisons ? preserves domestic jobs ? supports local economy, as many ceramic tile producers are small community companies C. Standard for When "Made in USA" Label May Be Used TCA supports use of the "Made in USA" label when "all or virtually all" of the component parts were made in the United States and "all or virtually all" of the labor in manufacturing the ceramic tile is performed in the United States. As discussed above, ceramic tile is produced by forming clay (or other non-metallic substances) into specific shapes and heating it to certain temperatures. The only logical and workable application of the ?Made in USA?' claim must include both the raw materials and the labor. Tile producers in the United States generally use U.S. origin raw materials such as clay and fire those materials in kilns located in the United States. The quality and reliability benefits of tile ?Made in USA? are the result of both the domestic sourcing of raw materials and the domestic manufacturing process. Tile manufactured in a Mexican plant by Mexican workers from clay dug in the U.S. clearly does not meet the ?Made in USA? expectations of U.S. consumers. Similarly, use of a lesser standard, based for example on only a certain percentage of clay source in the United States, would not afford consumers the confidence of tile truly produced in the U.S. and would diminish the value of the ?Made in USA? label. There is no question that marking the back of individual tile pieces with ?Made in the USA? is a de minimus issue. The backs of all clay risque are marked or imprinted anyway, by necessity, to create a textured surface to hold the grout or other mounting material. The use of a punch, die, press plate, or other method for imprinting the ?Made in USA? mark represents minimal additional cost or effort. For smaller tile sizes, which are usually adhered to a paper or open mesh backing, such labeling easily can be printed on or attached to the paper or mesh backing material. Carton or container marking also is a de minimus cost issue. D. Conclusions For the reasons set forth above, TCA requests that the FTC fully adopt and enforce the "all or virtually all" standard in determining when ceramic tile is "Made in USA," by requiring that both the raw materials and labor are of U.S. origin. Sincerely, Robert E. Daniels Executive Director