Outdoor apparel tariff targeted

Published 5:00 am Wednesday, June 8, 2011

WASHINGTON — Two Oregon congressmen are part of a bipartisan effort to eliminate a tariff on outdoor apparel, a move that could provide a slight boost to the state’s recreation industry.

Last week, Rep. Dave Reichert, R-Wash., introduced the U.S. Optimal Use of Trade to Develop Outerwear and Outdoor Recreation, or OUTDOOR Act, which would eliminate duties owed on imported recreational apparel. The measure was co-sponsored by Rep. Greg Walden, R-Ore., and Earl Blumenauer, D-Ore.

“More than 75 percent of Americans participate in active outdoor recreation each year, experiencing America’s wild lands in ways large and small, expanding rural economies, and supporting the great companies that create innovative gear,” Blumenauer said in a prepared statement. “I’m proud that this legislation will reduce the high tariffs on performance outerwear and expand consumer choice.”

A miniscule fraction of recreational outerwear is manufactured domestically, so the tariff doesn’t protect any American textile businesses, Blumenauer spokesman Derek Schlickeisen said Monday.

“The U.S. has no substantial domestic production of these goods, which means that this tariff was meant to protect an industry that we essentially don’t have.

“What Portland and other areas do have is an entrepreneurial group of textile designers,” he said.

Tariffs on this type of clothing can be as high as 28.2 percent, according to the legislation. Eliminating them would benefit American designers and retailers, like Oregon-based Columbia Sportswear, which applauded the legislation’s introduction.

“We support passage of this important legislation because it will help spur product innovation, make performance outerwear more affordable, promote healthy outdoor-focused lifestyles and stimulate job growth,” said Tim Boyle, president and CEO of Columbia, in a prepared statement.

A 2009 study by the Congressional Budget Office concluded that eliminating the tariff would reduce roughly $59 million a year in costs, which are passed along to consumers, Schlickeisen said.

The outdoor industry contributes $790 billion to the American economy each year, according to the legislation, which has bipartisan support.

“It’s common sense to remove a tariff that protects an industry that we don’t have,” he said.

“It’s something everybody ought to be able to agree on.”

Tax when imported

Typically, the garments are designed in the United States and manufactured in southeast Asia, and face the tariff when they are imported, he said.

“We can help American designers and give consumers lower costs and more choices by ending this outdated tariff,” he said.

The proposed legislation, which would make recreational outerwear duty-free, was referred to the House Ways and Means Committee. Sen. Ron Wyden, D-Ore., and Sen. Mike Crapo, R-Idaho, introduced similar legislation in the Senate in April.

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