Federal Trade Commission
Received Documents
July 1, 1996
P894219
B18354900194



              ABLONDI, FOSTER, SOBIN & DAVIDOW, P.C.
                    ATTORNEYS AND COUNSELLORS
                  1130 CONNECTICUT AVENUE, N.W.
                            SUITE 500
                      WASHINGTON, D.C. 20036
                        TELEX 292002 IAPC
                      TELEFAX (202) 296-3922
                       TELEPHONE (202) 3355




         BY HAND DELIVERY

         Office of the Secretary
         Federal Trade Commission
         Room 159
         Sixth and Pennsylvania Avenue, N.W.
         Washington, D.C. 20580
         Re:    "Made in  USA" Policy Comments,    FTC File No. P894219
         Dear Commissioners:
              This post-workshop submission is filed with the Federal Trade Commission on behalf of The
Stanley Works ("Stanley") in connection with the Commission's consideration of its standard for the
advertising and labeling of products with Made in  USA or similar representations.

              Stanley has steadfastly opposed the Commission's "all or virtually all" standard and urges the
Commission to abandon it.  In today's global sourcing, manufacturing and marketing environment, the
standard is obsolete, arbitrary, and a disservice to both U.S. manufacturers and consumers.  As currently
construed, the "all or virtually all' ' standard prevents manufacturers like Stanley who use one or more foreign
components in making a finished article in the United States from proudly representing that their products are
Made in  USA.  It deprives consumers of the information that all the physical qualities and performance
characteristics that make the product useful and desirable to them are the result of American labor,
technology and capital equipment.

              In its stead, Stanley, in its pre-work shop comments dated January 18, 1996, urged the Commission
to adopt the "substantial transformation" test established by the Supreme Court in 1907, a rule that has
gained worldwide acceptance as the best and fairest method for determining a product's country of origin, and
a rule that has grounded country of origin determinations by the courts and the U.S. Customs Service.  This
would result in a desirable symmetry between two complimentary laws designed to protect American
consumers -- section 304 of the Tariff Act of 1930, as amended, and section 5 of the Federal Trade
Commission Act.

                  The Commission's March 26-27 workshop on the issue demonstrated that an arbitrary "allABLONDI, FOSTER, SOBIN & DAVIDOW, P.C.

                                2

or virtually all" standard has few supporters, but also demonstrated that the many industries and individual
companies encouraging the Commission to adopt a new approach were divided on just what that standard
should be and how the FTC should offer guidance.  Under the circumstances, Stanley welcomed the
suggestion that industry representatives be given time to explore whether the FTC's Environmental Marketing
Guides might serve as a model for similar U.S. Origin Guides.

         Stanley actively participated in an ad hoc group of industry associations and companies which
explored and developed the Guidelines for Making U.S. Origin Advertising and/or Labeling Claims,
submitted to the Commission today.  The Stanley Works supports both the content and the principles
contained in the proposed guide.

         We urge the Commission to study the proposed guide carefully, and hope that the Commission will use
this work product in drafting the official FTC guidance on this issue.

         The Stanley Works appreciates the opportunity to participate in this important effort and would be
pleased to assist the Commission in any future activities addressing the "Made in  USA"standard.


                                  Sincerely



                                  Richard H. Abbey
                                  On behalf of
                                  The Stanley Works
                                  New Britain, Connecticut