03/11/96...Red Devil Inc.?s request to participate in Made in USA workshop Federal Trade Commission Received Documents March 11, 1996 P894219 B18354900138 Red Devil March 7, 1996 Office of the Secretary Federal Trade Commission Room 159 Sixth and Pennsylvania Avenue, N.W. Washington, D.C. 20580 Re: "Made in USA Policy Workshop-Comment and Request to Participate" FTC File No. P894219 Dear Commissioners: Red Devil Inc. is filing this submission to express its' views on the advertising and labeling of products with "Made in USA" representations. Red Devil Inc. is a 120 year old American manufacturer located in Union, NJ. We are a leading manufacturer of tools and chemicals for industrial, professional, and consumer use. Red Devils' operations are global with export sales throughout the world. Red Devil Inc. employs 250 persons at two manufacturing locations in Union, NJ, and Pryor, OK. I. Substantial Transformation test preferable to ?all or virtually all? standard. Red Devil Inc. is in strong support of the comments made by The Stanley Works in their submission to the Commission of January 18, 1996. A great majority of our products are manufactured in the United States. Those that are imported are clearly marked with the country of origin. Many of our manufactured products are proudly exported with the "Made in USA" representation. Products for export can have different labeling standards than those for domestic sale. This can result in multiple packaging requirements for the same products resulting in higher costs to the consumer. Red Devil believes a single standard, such as the substantial transformation test, would best serve the American consumer. The extremely narrow definition of "all or virtually all" as supported some comment letters serves the interest of a small number of manufacturers at the expense of the American consumer. Denying the "Made in USA" representation to products meeting the substantial transformation test could be a deception in itself. We suspect the Americans who manufacture these products in the United States would be upset to learn they can not say their products are "Made in USA". II. Tariff classification change with supplemental criteria preferable to quantitative criteria for determining substantial transformation. Red Devil believes that a quantitative standard for determining whether a product is "Made in USA" would be arbitrary, inefficient, and not in the best interest of the American consumer. This would not reduce the need for maintaining dual inventories, and would create confusion by maintaining multiple standards across several regulatory agencies. The substantial transformation test would be consistent with NAFTA, more likely to stand up to foreign challenges under GAAT, and minimize costs to the benefit of American consumers. III. Conclusion. Red Devil, Inc., 2400 Vauxhall Road, P.O. BOX 3133, Union, New Jersey 07083-1933 Phone: (908) 688-6900 FAX: (908) 688-8872 Red Devil Inc. believes the best interests of consumers and manufacturers will be met by utilizing the substantial transformation test for representations of "Made in USA". This will allow US manufacturers to sell products domestically, and for export, with the best efficiencies. Maximizing efficiency is critical to allow US manufacturers to compete effectively in world markets. Red Devil, and many other companies, are experiencing growth in export sales. This increases manufacturing efficiencies and the US balance of trade; both are in the interest of American consumers. It would not be in the best interest of most Americans to allow an obsolete "all or virtually all" standard to create confusion, inconsistency between various government agencies, and manufacturing inefficiencies. All Americans benefit from the expansion of US manufactured products into world markets, both in terms of jobs and income. The Substantial transformation test will best promote that expansion. IV. Request to Participate in Made in USA Workshop. Red Devil Inc. requests the opportunity to participate in the public workshop to be held March 26 and 27, 1996 at FTC Headquarters in Washington, D.C., and would be represented by our chairperson Ms. Jane Lee. My telephone number and fax number are included on the first page of this submission. Sincerely, Gregory T. Lawn, CPA Vice President, Finance Red Devil Inc.