Apparel Industry Pushing Outerwear Bills as Congress Winds Down
The outdoor apparel industry is again ramping up efforts to enact legislation that would eliminate tariffs on outerwear, following the introduction of bills in recent days in both chambers of Congress. The measures, HR-5646 and S-2838, are basically identical to bills introduced in both the two previous Congresses, said Outdoor Industry Association Trade Policy Advisor Rich Harper in an interview. This Congress will end in January 2015, so supporters are eyeing an omnibus trade package in the coming lame duck session for passage.
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Four Ways and Means Committee members are among the co-sponsors on the House legislation, led by Rep. Dave Reichert, R-Wash., and the legislation has strong support on the committee. “The bill has significant, bipartisan support and the chairman is supportive of Mr. Reichert's efforts to reduce tariffs on these products,” said a spokeswoman for the committee. Sens. Maria Cantwell, D-Wash., and Rob Portman, R-Ohio, who sponsored the bill in the Senate, are on the Senate Finance Committee. The Finance Committee didn't return a request for comment, though Committee Chairman Ron Wyden, D-Ore., sponsored the bill in the two previous Congresses, before he became chairman.
The legislation would carve out a large swath of outdoor garments for duty-free import, from overalls to ventilated ski pants. The unique nature of the garments, namely the fabrics used in production, set them aside from other apparel, said Harper. “The fabrics are intended to keep people warm in the winter or cool in the summer months. They have to be highly complex and advanced to withstand the rigors of outside,” he said. “The fabrics used are designed to let purchasers use the apparel for many seasons. That’s what makes the products stand out and justify having their own definition on the Harmonized Tariff Schedules.”
These products often carry tariffs as high as 28.2 percent, and are classified along with less complicated apparel, said the bill. A series of studies have been completed over recent years that suggest these products are virtually only made outside the U.S., said Executive Vice President at the American Apparel & Footwear Association Steve Lamar in an interview. “Here you have a situation where duties were imposed on an industry decades ago and now that industry has changed,” said Lamar. “Now its time to update our tariff policy so it reflects the way the industry exists in 21st century. Most people would agree that you don’t want to impose tariffs on imports of products that aren’t produced domestically because you’re just putting more taxes on the products.”
Trade Promotion Authority is still the best chance for the linchpin of a trade bill that can allow many other bills to advance, including the U.S. Optimal Use of Trade to Develop Outerwear and Outdoor Recreation Act, said Harper. If Congress fails to move such a bill in the lame duck session, the outdoor performance apparel legislation will likely die in this Congress, he said. The lame duck session begins after the November elections and ends before the next Congress is sworn in during early 2015. “We’re operating under the assumption that this would be part of a larger trade package,” said Harper. “If there’s not a package, we want to raise awareness so we can work with Congress to move as quickly as possible. We want to send a signal to the Finance and Ways and Means committees.” -- Brian Dabbs
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