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The Honolulu Advertiser
Posted on: Friday, August 17, 2001

'Made in Hawai'i' label stretched by some vendors

By Johnny Brannon
Advertiser Staff Writer

Artisans from across the state have gathered in Honolulu today to showcase unique crafts that are proudly made in Hawai'i, but some of the products for sale at this year's "Made in Hawaii Festival" were largely produced outside the Aloha State, including in China, Japan, Thailand, the Philippines, South Korea and the Mainland.

Chris Smith of Ka'ala Designs makes watch bands of polymer clay with a Hawaiian theme.

Deborah Booker • The Honolulu Advertiser

Some festival vendors question whether some merchandise at the event, held at the Neal Blaisdell Center this weekend to promote locally made products, has any real connection to Hawai'i.

"We were dismayed when we set up our booth to see products that were clearly labeled 'Made in China,'" said Olivia Boyd, who sells pillows, sachets, and other items made in Campbell Industrial Park. "It is unconscionable that these products are in the show."

It's unfair to market products as made in Hawai'i when they're really manufactured in countries with much lower wages and lax enforcement of child labor laws, she said.

"We make our products here because we believe in Hawai'i," Boyd said. "We don't want to hurt the show, which we think is fabulous, but we want to protect the integrity of the show."

Festival director Richard Botti agreed that some products are highly questionable, but said it was not always easy to determine which ones.

"We do have a problem, but the real problem is that the law is vague," he said.

Federal law requires that a product manufactured abroad be clearly labeled with its country of origin when it's sold in the United States. But if someone in Hawai'i alters the item in a way that increases its wholesale value by 51 percent, it is indeed considered made in Hawai'i.

The added value is obvious for some items, he said. For instance, watches from Japan sold by Big Island vendor Chris Smith are clearly made in Hawai'i because she outfits each one with a hand-made band created here.

The watch bands, with petroglyphs, turtles and other Hawaiian themes, clearly change the watches and increase their value, Botti said.

Smith said it wouldn't make economic sense to sell the bands alone. And good luck finding a watch that's manufactured in Hawai'i, she said.

That's another problem, said Botti: Many basic products, such as fabrics, simply aren't made here in any significant quantity. But a

T-shirt made in China is considered made in Hawai'i once it's airbrushed with a design here. And a book that's written here but printed in another country is still considered made in Hawai'i.

"The real value is in the creativity," he said. "Someone put an awful lot of work into writing that book."

It's almost impossible to determine where the 51 percent threshold lies for some items, and the law should draw that line more clearly for various products, Botti said.

Only a few of the event's 371 vendors are displaying merchandise that is very questionable, but they could harm the $250,000 show's credibility, Botti said.

"We do everything we can do to protect that, but until products are brought in, we can't prove anything," he said. "What we want is for vendors to be up-front about everything and to be proud about what they're doing."

The 51 percent rule is explained to each vendor before they rent a booth for $425 or $475. And each vendor must sign a statement certifying that their products meet the show's requirements. Those that display bogus goods will be asked to remove them or to leave, Boyd said.

The state Office of Consumer Protection is also sending investigators to the festival to review disputed items, office acting director Stephen Levins said. People who fraudulently market products made in Hawai'i could face fines of up to $10,000 for violating the state Unfair or Deceptive Practices Act, he said.

"Made in Hawai'i is such an important thing to vendors who use it as a marketing tool, so they often alert us," Levins said.

The "Sixth Annual Made in Hawaii Festival," of which The Advertiser is a sponsor, will be held today through Sunday at the Neal Blaisdell Center. The festival is open to the public from noon to 9 p.m. today; 10 a.m. to 9 p.m. tomorrow; and 10 a.m. to 5 p.m. Sunday. Admission is $2; children less than 6 years old can attend for free.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 535-2431.