The U.S. House of Representatives passed the Miscellaneous Tariff Bill last week, restoring duty relief for a cornucopia of sporting goods, including bicycle parts, outdoor footwear, snow sports equipment, volleyballs, rubber basketballs, leather basketballs, synthetic basketballs, and golf bags that expired on Jan. 1, 2010. The bill also included several duty suspensions on waterproof breathable footwear, ski and snowboard equipment and footwear. Bicycle companies will benefit from lower tariffs on tubing, speedometers, road and hydraulic disc brakes and certain rims and cranks.
The bill appeared headed for defeat after Republican leaders came out against it, saying that tariff relief for specific industries violated the GOP's self-imposed moratorium on special interest earmarks. The final vote was 378-43, in favor of the MTB, providing the super majority vote required under House rules. The bill now moves to the Senate.
The new language, according to the SGMA, would reduce the duty on volleyballs from 4.8% to free; the duty on rubber basketballs would drop from 4.8% to 0.7%; the duty on leather basketballs would fall from 4.8% to free; the duty on synthetic basketballs would be lowered from 4.8% to 1.1%; and the duty on golf bags would be cut from 7% to 1.5%. There was duty relief on these products from 2007 through 2009. The new duty reduction would run through 2012. The bill would also allow companies to request retroactive relief from January 1, 2010.
The SGMA and OIA both hailed the vote.
“The MTB has several provisions extending duty suspensions on footwear and other outdoor products that over the last three years have saved outdoor companies more than $21 million,” said Frank Hugelmeyer, president and CEO of OIA. “Those savings have allowed companies to reinvest in their businesses, invest in innovation, expand employment opportunities and lower retail costs for their customers.
In addition, the duty suspensions have actually increased exports of U.S made components for these outdoor products.”
