Finnish “Key Flag” label allows foreign-made components despite domestic branding

The Key Flag symbol, which signals Finnish origin to consumers, can be awarded to products where only 50 percent of the total production value is domestic, according to the Association for Finnish Work.

In an interview with Yle, Nina Pohjoiskoski, the association’s client director, clarified that the label does not require a product to be fully manufactured in Finland. Instead, the “essential part” of production—defined as the process of combining or transforming raw materials and components—must take place in Finland.

Foreign raw materials and pre-made parts are permitted, Pohjoiskoski explained, as some materials and technical components are not available domestically. However, she emphasized that a mere raw material or component cannot receive the label on its own—it must become part of a new, finished product meeting the criteria.

The domestic share is calculated through a cost-based assessment that includes not only materials and labor but also packaging, marketing, and product development expenses. To qualify, 50 to 100 percent of these costs must remain in Finland.

If production shifts significantly abroad—such as moving assembly to Estonia or elsewhere—the label would be revoked during the mandatory three-year review. Pohjoiskoski acknowledged that some consumers mistakenly assume the symbol guarantees fully Finnish production, though the association’s guidelines explicitly state that the label must align with the public’s general perception of a product’s Finnish origin.

Applications are evaluated case-by-case by an independent expert committee, which may reject a product even if it meets the technical criteria if its overall impression does not reflect Finnish origin.

The explanation follows Yle’s report that Kuoma, a footwear brand prominently using the Key Flag label, had outsourced part of its production to Asia and the Baltics without clearly disclosing this to customers.