House Includes Key Reichert Recreational Apparel Provisions in Preferences Bill

Jun 11, 2015 Issues: Tax Policy

Washington, D.C. – Today, the U.S. House of Representatives passed H.R. 1295, the Trade Preferences Extension Act of 2015, including provisions championed by U.S. Congressman Dave Reichert (WA-8) regarding recreation apparel. Upon passage, Reichert issued the following statement:

“Passage of today’s legislation is a big win for Washington State businesses and families.  Renewal of both the Generalized System of Preferences (GSP) and the African Growth and Opportunity Act (AGOA) is important because they not only support economic growth in developing countries but also save Washington manufacturers millions of dollars by bringing down the costs of needed parts and supplies. This means more jobs and more affordable products for Washington families.  Also included within this bill are provisions I have championed for a long time with my Oregon colleague, Mr. Blumenauer.  Taking from the U.S. OUTDOOR Act, the bill also recognizes the unique and innovative nature of outdoor recreation apparel made by Washington companies like REI.  Washingtonians who use these goods regularly as they hike Mt. Rainier or navigate the waters of the Columbia River, understand the difference between high performance apparel and footwear,  and a basic t-shirt and walking shoe.  It’s long past due that Congress does as well.”

Background

According to the Outdoor Industry Association, American consumers spend over $640 billion each year on outdoor recreation, which in so doing supports an industry that is directly and indirectly tied to 12 million American jobs. Congressmen Reichert and Blumenauer have long championed the U.S. OUTDOOR Act, which creates new Harmonized Tariff Schedule (HTS) breakouts for recreational performance outerwear and removes the duties on these goods. The Trade Preferences Act (H.R. 1295) includes these breakouts and also creates a new category for outdoor footwear. This category is limited to certain types of footwear designed for outdoor activities, including hiking shoes, trekking shoes, running shoes, and trail running shoes which provide protection against water and does not include athletic footwear designed for other activities, like basketball and tennis. The House passed H.R. 1295 by a vote of 397-32.