Understanding “Made in PRC”: The Evolution of a Label

//

joy

Table of Contents

  1. The Significance of “Made in PRC”
  2. Distinction Between “Made in PRC” and “Made in China”
  3. The Shift to “Made in PRC” by Manufacturers
  4. Global Legality of “Made in PRC”
  5. Rules of Origin in Key Countries
  6. The Role of Certificates of Origin

1. The Significance of “Made in PRC”

The label “Made in PRC” is gaining prominence, often replacing the widely recognized “Made in China.” Both denote products originating from the People’s Republic of China, but “Made in PRC” carries a more precise geographical and political connotation, excluding regions like Taiwan and Hong Kong. This label emphasizes that the entire production process, from design to delivery, occurs within the PRC’s jurisdiction.

2. Distinction Between “Made in PRC” and “Made in China”

While geographically identical, “Made in PRC” and “Made in China” evoke different perceptions. “Made in China” is often linked to mass production and lower quality, whereas “Made in PRC” signifies adherence to international standards and quality. Manufacturers adopt “Made in PRC” to dissociate from negative stereotypes and to project a commitment to quality and ethical manufacturing.

3. The Shift to “Made in PRC” by Manufacturers

Manufacturers are transitioning to “Made in PRC” to counter the negative connotations associated with “Made in China.” This shift is strategic, aiming to align with global standards and to highlight a dedication to quality and ethical practices. The change is more than semantic; it’s a rebranding effort to redefine the narrative of Chinese manufacturing.

4. Global Legality of “Made in PRC”

Legally, “Made in PRC” is recognized worldwide, aligning with international trade laws and the United Nations’ recognition of the People’s Republic of China. However, the acceptance of this label in international trade can vary due to differing import policies and political relations.

5. Rules of Origin in Key Countries

Rules of origin are crucial for determining a product’s economic nationality, affecting tariffs, quotas, and consumer perceptions. In the US, the tariff shift rule is commonly used, where a product’s classification must change due to processing in the exporting country. Similar rules apply in the UK, EU, Australia, and Japan, where the product’s origin must be clearly declared for duty assessment and trade agreement application.

6. The Role of Certificates of Origin

Certificates of origin are essential in international trade, verifying a product’s manufacturing country and influencing import duties and trade statistics. In the US, UK, EU, Australia, and Japan, both “China” and “PRC” are accepted on certificates of origin, as they both accurately represent the product’s origin.