Australian Made recently became aware that some licensees may be using the Australian Made logo on upholstered furniture where the covers have been cut and/or sewn overseas.
There is some question as to whether such products satisfy the requirements for use of the logo with an ‘Australian Made’ claim and whether such products can be described as ‘Made in Australia’ under the Australian Consumer Law legislation.
Australian Made’s position is that the guidelines issued by the ACCC in the booklet: Furnishing industry: country of origin guidelines to the Trade Practices Act (2007) offer the best guidance currently available on this question.
The following is an extract from these guidelines:
Manufacturing processes - upholstered furniture (lounges)
(1) Frames
… can be manufactured in-house or sourced externally. Note: manufacture of a frame does not constitute substantial transformation on its own.
(2) Cutting
a. Cut fabric to pattern
b. Cut lining.
(3) Sewing
a. Sew covers, adding trims, piping and reinforcing as required
b. Ditto for cushions.
(4) Upholstery
a. Prepare frame
i. Fit springing and suspension (incl. sofa or recliner mechanisms)
ii. Fit interlinings, hessian, etc.
iii. Fitfoam and/or other filling
b. Cover frame, including linings
c. Fit loose cushions, slip covers and other fittings if applicable
d. Label
e. Fit protective fittings and cover (plastic).
Steps (2) to (4)c are considered to be the principal elements of substantial transformation for this category.
When steps (2), (3) and (4)a-(4)c above have been carried out in Australia, a company may confidently claim that the product has been ‘made in Australia’. (Please bear in mind that all products claiming to be Australian Made/Made in Australia must also meet the minimum 50% local cost of production test.)
Any licensee who has registered products with Australian Made which do not meet the current guidelines (for example, where the covers are cut and/or sewn overseas) should advise us immediately by emailing lisa.crowe@australianmade.com.au.
In a related development, Australian Made has obtained the agreement of the ACCC to review the above guidelines. This process will be carried out in conjunction with the Australian Furniture Association, South East. If your company wishes to participate in or provide input to that review, please let us know as soon as possible (lisa.crowe@australianmade.com.au).
Compliance note - Upholstered furniture
Published
Thursday, April 11, 2013
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