Country of origin

Country of origin (COO), is the country of manufacture, production, or growth where an article or product comes from. There are differing rules of origin under various national laws and international treaties.

The effects of country of origin labeling on consumer purchasing have been extensively studied The country of origin effect is also known as the "made-in image" and the "nationality bias."

Research shows that consumers' broad general perceptions of a country, including of its national characteristics, economic and political background, history, traditions, and representative products, combine to create an overall image or stereotype that is then attached to the products of that country. This image has a significant influence on consumer perceptions and behaviours, and in situations in which additional information is unavailable or difficult to get can be the sole determinant of whether or not someone buys a product. Its effect is strongest on consumers who don't know much about the product or product type, and weakest on consumers who are well-informed. Sensitivity to country of origin varies by product category. It is strongest for durable goods and luxury goods and weakest for "low involvement" product categories such as shampoo and candy. In various studies it has also been proven that the Country-of-Origin Effect also applies to services.

Several studies have shown that consumers tend to have a relative preference to products from their own country or may have a relative preference for or aversion against products that originate from certain countries (so-called affinity and animosity countries).

The requirements for Country of Origin markings are complicated by the various designations which may be required such as "Made in X", "Product of X", "Manufactured in X" etc. They also vary by country of import and export. For example:

Section 304 of the Tariff Act of 1930 as amended (19 U.S.C. § 1304) requires most imports, including many food items, to bear labels informing the ultimate purchaser of their country of origin. Meats, produce, and several other raw agricultural products generally were exempt. The 2002 farm bill (P.L. 107-171, Sec. 10816), however, contains a requirement that many retail establishments provide, starting on September 30, 2004, country-of-origin information on fresh fruits and vegetables, red meats, seafood, and peanuts. However, the consolidated FY2004 appropriation (P.L. 108-199) signed January 23, 2004, delayed this requirement for two years except for seafood.

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