As Congress resumes after its September recess, the Outdoor Industry Association reiterated its call for passage of duty relief legislation for performance outerwear and footwear, while conceding a “very partisan environment” in Washington. 


Below is an update on what OIA is seeking from Congress in the current session:


Trade:


The Recreational Performance Outerwear Apparel Act of 2008 (S. 3439) has been introduced in both the House and Senate. Senate sponsors are Senator Ken Salazar (D-CO) and Senator Mike Crapo (R-ID), both members of the Senate Finance Committee which has jurisdiction over trade-related legislation. H.R. 6483, the House version of the bill, was introduced last month by Representative Earl Blumenauer (D-OR), a member of the House Ways and Means Committee.


This important legislation creates new tariff classifications for specific types of recreational performance outerwear, makes those specific products duty free and invests in U.S. technologies and jobs that focus on sustainable, environmentally-conscious manufacturing and streamlined supply chains.


The high tariffs in question have remained unchanged for decades, despite significant technological advances in performance outerwear manufacturing. For example, high-tech ski pants are currently classified in the same general category as polyester dress slacks and high-performance jackets are taxed in the same category as generic windbreakers.


A July, 2007 report by the International Trade Commission found there is no commercially viable production of recreational performance outerwear in the United States, highlighting the need for legislation to correct what amounts to a regressive tax on outdoor industry businesses.

 

The legislation is an “everybody wins” proposition: outdoor apparel manufacturers receive appropriate and needed relief from outdated, excessively high tariffs; U.S. textile firms shipping inputs for outerwear production in NAFTA and CAFTA countries are protected; American consumers gain access to more affordable outdoor products and everybody wins through the investment in U.S. technology that enables sustainable business practices here at home and around the world.

Outdoor Industry Association (OIA) will seek opportunities to pass this bill as well as the Affordable Footwear Act (H.R. 3934/ S. 2372), which provides duty relief on footwear, during the month of September or in a possible “lame duck” session of Congress following the presidential election. However, it is likely that Congress will push consideration of most trade legislation into 2009.


Recreation funding:


Funding for recreation programs on public lands will likely remain at 2008 levels as Congress will pass a bill this fall continuing current funding into FY2009. This means approximately $30 million for stateside Land and Water Conservation Fund in FY2009.


The alarming news of the month came as the Forest Service announced it has depleted its firefighting budget for the year and is dipping into other agency programs to the tune of $400 million. This is a significant amount and essentially freezes forest health work, recreation facility and trails maintenance work and the majority of research and construction projects.


Recreation policy:


OIA will join with other groups during September in asking Congress to pass legislation establishing the National Park Centennial Initiative and legislation granting permanent recognition of the National Landscape Conservation System. Both of these items are priorities on the OIA policy agenda.