[Federal Register Volume 65, Number 232 (Friday, December 1, 2000)]
[Rules and Regulations]
[Pages 75154-75158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29470]


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FEDERAL TRADE COMMISSION

16 CFR Parts 300 and 303


Rules and Regulations Under the Textile Fiber Products 
Identification Act; Rules and Regulations Under the Wool Products 
Labeling Act of 1939

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (FTC or Commission) amends the 
Rules and Regulations under the Textile Fiber Products Identification 
Act (Textile Rules) to revise the form for Application for a Registered 
Identification Number (``RN'') in order to facilitate receiving 
applications electronically; incorporate by reference the generic fiber 
names and definitions for manufactured fibers in International 
Organization for Standardization standard ISO 2076: 1999(E), 
``Textiles--Man-mad fibres--Generic names;'' clarify origin labeling

[[Page 75155]]

requirements for products made in the U.S. and assembled or finished 
abroad or products manufactured abroad of U.S. fabric; and correct a 
typographical error. The Commission amends the Rules and Regulations 
under the Wool Products Labeling Act of 1939 (Wool Rules) to clarify 
that only one RN will be granted to a qualifying firm; and clarify the 
origin labeling requirements for products made in the U.S. and 
assembled or finished abroad or products manufactured abroad of U.S. 
fabric. Because these amendments are technical and non-substantive, the 
Commission finds that notice and comment are not required. For this 
reason, the requirements of the Regulatory Flexibility Act also do not 
apply.

DATES: The rules are effective on December 1, 2000. The incorporation 
by reference of certain publications in this rule is approved by the 
Director of the Federal Register as of December 1, 2000.

ADDRESS: Requests for copies of this document should be sent to the 
Consumer Response Center, Room 202, Federal Trade Commission, 600 
Pennsylvania Avenue, NW., Washington, DC 20580. The notice announcing 
the amendments is available on the Internet at the Commission's 
website: http://www.ftc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen Ecklund, Senior Investigator, 
(202) 326-2841, [email protected], or Faith Vieno, Paralegal Specialist, 
(202) 326-2299, [email protected], Division of Enforcement, Bureau of 
Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue 
NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

I. Background

    The Textile Fiber Products Identification Act (Textile Act), 15 
U.S.C. 70, requires manufacturers and sellers of covered textile 
products to mark each product with: (1) The generic names and 
percentages by weight of the constituent fibers present in the product, 
in the order of predominance by weight; (2) the name under which the 
manufacturer or other responsible company does business or, in lieu 
thereof, the RN issued to the company by the Commission; and (3) the 
name of the country where the product was processed or manufactured. 
Pursuant to section 7(c) of the Textile Act, 15 U.S.C. 70e(c), the 
Commission has issued implementing regulations, the Textile Rules, 16 
CFR Part 303. Similar information is required pursuant to the Wool 
Products Labeling Act (Wool Act), 15 U.S.C. 68, and the Fur Products 
Labeling Act (Fur Act), 15 U.S.C. 69. Implementing rules under those 
statutes are found at 16 CFR Part 300 (Wool Rules) and 16 CFR Part 301 
(Rules and Regulations under the Fur Products Labeling Act).

II. Registered Identification Numbers Issued by the Commission

    Pursuant to its Rules, the Commission issues RNs to qualified 
applicants, i.e., those who manufacture or market textile, wool or fur 
products covered by the labeling requirements and who reside in the 
U.S.\1\ In the past, applicants were required to submit RN applications 
to the Commission by mail or fax on the form that appears at 16 CFR 
303.20(d).\2\ The Commission now has the capability to receive 
applications and updates to applications online at its website, http://www.ftc.gov. Therefore, it is amending the application form in order to 
facilitate the online application process. The requirement for a 
signature, line 8 of the form, is eliminated. The online form will 
require entry of the name of a responsible official who certifies, in 
making the application, that the business is eligible for the RN by 
virtue of residing in the U.S. and manufacturing or marketing a product 
covered by one of the three labeling statutes. Other minor changes to 
the application form have been made to facilitate the process. The 
online application will require the same information as the printed 
application, although it necessarily will appear in a different format.
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    \1\ 16 CFR 303.20, 16 CFR 300.4, 16 CFR 301.26.
    \2\ The Wool and Fur Labeling Rules cross-reference the form 
that appears in the Textile Rules. See, 16 CFR 300.4(e) and 16 CFR 
301.26(d).
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    An amendment to section 300.4(b) of the Wool Rules clarifies that a 
qualified applicant will be assigned only one RN, which may be used for 
the labeling of any products covered by the Textile, Wool, or Fur Acts. 
In the past, the Commission did, on occasion, assign more than one RN 
to a particular company; however, it ceased this practice a number of 
years ago. Therefore, this section is amended, consistent with current 
RN procedures, by removing a clause that refers to assignment of 
multiple numbers.
    The Commission's RN database is available on the FTC's Internet 
website. Businesses are urged to use this service to check whether the 
information concerning their RN is current and, if necessary, update 
the information. Updating an application also can be accomplished 
online.

III. Recognition of ISO Standard for Generic Fiber Names

    In 1998, the Commission amended the Textile Rules to incorporate by 
reference the generic fiber names and definitions for manufactured 
fibers in ISO 2076: 1989, ``Textiles--Man-made fibres--Generic names.'' 
\3\ The Commission noted that a revision of ISO 2076 was under 
consideration at that time and stated that when the revised standard 
was finalized, it would amend the Textile Rules to reference that 
revised standard. The revised ISO standard was finalized in 1999; 
therefore, the Commission amends the Textile Rules to incorporate the 
new standard.
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    \3\ 63 FR 7508, 7510-11 (Feb. 13, 1998).
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IV. Clarification of Country of Origin Disclosure Requirements

    The Textile and Wool Acts require that covered products be labeled 
to show the country of origin, whether domestic or foreign.\4\ The 
Commission's Rules implement the statutory requirement, explain how it 
applies to products made in part in the U.S. and in part in another 
country, and provide examples of proper labeling.\5\
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    \4\ 15 U.S.C. 70b(b)(4) & (5); 15 U.S.C. 68b(e).
    \5\ 16 CFR 303.33; 16 CFR 300.25.
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    Imported products must name the country where they were 
manufactured or processed. Products made in the U.S. of materials also 
made in the U.S. should be labeled as ``Made in USA,'' or words to that 
effect. Products made in the U.S. of imported materials should disclose 
both the U.S. manufacturing and the imported component--for example, 
``Made in USA of imported fabric'' or ``Knitted in USA of imported 
yarn.'' Similarly, products partially manufactured in a foreign country 
and partially manufactured in the U.S. should be labeled to show the 
manufacturing process in both the foreign country and the U.S.--for 
example, ``Imported cloth, finished in USA,'' ``Sewn in USA of imported 
components,'' or ``Made in [foreign country], finished in USA.'' The 
same disclosure principle applies to products manufactured abroad of 
fabric made in the U.S., or products assembled abroad of components 
manufactured in the U.S. Therefore, the Commission is revising section 
303.33(a)(4)(i) of the Textile Rules and section 300.25(a)(4)(i) of the 
Wool Rules to add examples covering these latter situations. For 
example, a product manufactured abroad of U.S. fabric could be labeled 
``Made in [Foreign Country]/fabric made in USA'' or simply ``Made in 
[Foreign Country] of US fabric.'' A garment that is assembled or 
finished abroad of components made

[[Page 75156]]

in the USA could be labeled, for example: ``Knit in USA, assembled in 
[Foreign Country],'' or words to that effect.\6\
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    \6\ Minimal foreign processing that does not alter the basic 
identity or character of the product would not have to be disclosed 
under this provision. For example, a product made in the U.S. then 
sent abroad for a minor finishing process, such as washing, dyeing, 
pressing, application of ink designs, adding buttons, repairs or 
alterations, tagging or labeling, etc., could be labeled simply 
``Made in USA.'' See, Comment of the FTC before the Dept. of 
Treasury, Customs Service, ``In the Matter of Country of Origin 
Marking Rules for Textiles and Textile Products Advanced in Value, 
Improved in Condition, or Assembled Abroad,'' Dec. 18, 1998. (This 
comment is available online at http://www.ftc.gov/os/statutes/textilejump.htm.)
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List of Subjects in 16 CFR Parts 300 and 303

    Incorporation by reference, Labeling, Textile fiber products 
identification, Trade Practices, Wool products.

    For the reasons set forth above, the Commission amends 16 CFR Part 
300 and 16 CFR Part 303, as follows:

PART 300--RULES AND REGULATIONS UNDER THE WOOL PRODUCTS LABELING 
ACT OF 1939

    1. The authority citation for Part 300 continues to read as 
follows:

    Authority: 15 U.S.C. 68 et seq. and 15 U.S.C. 70 et seq.

    2. Section 300.4(b) is revised to read as follows:


Sec. 300.4  Registered identification numbers.

* * * * *
    (b) Any manufacturer of a wool product or person subject to section 
3 of the Act with respect to such wool product, residing in the United 
States, may apply to the Federal Trade Commission for a registered 
identification number for use by the applicant on the stamp, tag, 
label, or other mark of identification required under the Act.

    3. Section 300.25(a)(4)(i) is revised to read as follows:


Sec. 300.25  Country where wool products are processed or manufactured.

    (a) * * *
    (4) * * *
    (i) The manufacturing process in the foreign country and in the 
USA; for example:

Imported cloth, finished in USA

or
Sewn in USA of imported components

or
Made in [foreign country], finished in USA

or
Scarf made in USA of fabric made in China

or
Comforter Filled, Sewn and Finished in the U.S. With Shell Made in 
China

or
Made in [Foreign Country]/fabric made in USA

or
Knit in USA, assembled in [Foreign Country].

PART 303--RULES AND REGULATIONS UNDER THE TEXTILE FIBER PRODUCTS 
IDENTIFICATION ACT

    1. The authority citation for Part 303 continues to read as 
follows:

    Authority: 15 U.S.C. 70 et seq.

    2. Section 303.5(a) is revised to read as follows:


Sec. 303.5  Abbreviations, ditto marks, and asterisks prohibited.

    (a) In disclosing required information, words or terms shall not be 
designated by ditto marks or appear in footnotes referred to by 
asterisks or other symbols in required information, and shall not be 
abbreviated except as permitted in Sec. 303.33(e) of this part.

    3. The first sentence of section 303.7 is revised to read as 
follows:


Sec. 303.7  Generic names and definitions for manufactured fibers.

    Pursuant to the provisions of section 7(c) of the Act, the 
Commission hereby establishes the generic names for manufactured 
fibers, together with their respective definitions, set forth in this 
section, and the generic names for manufactured fibers, together with 
their respective definitions, set forth in International Organization 
for Standardization ISO 2076: 1999(E), ``Textiles--Man-made fibres--
Generic names.'' * * *
* * * * *

    4. Section 303.20(d) is revised to read as follows:


Sec. 303.20  Registered identified numbers.

* * * * *
    (d) Form to apply for a registered identification number or to 
update information pertaining to an existing number (the form is 
available upon request from: Enforcement Division, Federal Trade 
Commission, 600 Pennsylvania Avenue, NW., Washington, DC 20580, or on 
the Internet at http://www.ftc.gov; application may also be made 
directly on the Internet):

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[GRAPHIC] [TIFF OMITTED] TR01DE00.024


[[Page 75158]]



    5. Section 303.33(a)(4)(i) is revised to read as follows:


Sec. 303.33  Country where textile fiber products are processed or 
manufactured.

    (a) * * *
    (4) * * *
    (i) The manufacturing process in the foreign country and in the 
USA; for example:

Imported cloth, finished in USA

or
Sewn in USA of imported components

or
Made in [foreign country], finished in USA

or
Scarf made in USA of fabric made in China

or
Comforter Filled, Sewn and Finished in the U.S. With Shell Made in 
China

or
Made in [Foreign Country]/fabric made in USA

or
Knit in USA, assembled in [Foreign Country].

By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 00-29470 Filed 11-30-00; 8:45 am]
BILLING CODE 6750-01-M