MTB likely dead for this year,
|Outdoor Industry Association (OIA) confirmed late last week that Congress will not pass a miscellaneous tariff bill (MTB) before the end of the year, meaning all import duties that are currently suspended or reduced under MTB legislation passed in 2006 will expire and full duties will be reinstated on January 1, 2010. While Congress is expected to pass an MTB early next year, it is unclear whether the duty suspensions will be retroactive. OIA is recommending that outdoor companies that have utilized duty suspension plan to pay full duties on January 1.
“We are extremely disappointed that Congress was unable to pass a miscellaneous tariff bill (MTB) this year and that tariff suspensions on performance footwear and other outdoor products will expire at the end of the year,” said Frank Hugelmeyer, president and CEO of OIA. “These MTBs have saved outdoor footwear manufacturers more than $13 million since 2007, resulted in new job creation, spurred industry growth and have contributed to a substantial increase in exports of American made inputs that account for as much as a quarter of the value of these footwear products. The delay in passage of the MTB puts an extraordinary financial burden on outdoor businesses as many are struggling to recover from the recession, and may ultimately mean the demise of some companies. We strongly encourage Congress to pass an MTB with retroactive duty suspensions as soon as they return in January.”
Some outdoor companies hedged on the MTB’s passage this year and have already brought in 2010 inventory, but many companies will see an additional 40 percent or more added to their product costs after duty suspensions expire.
Congress is scheduled to convene its 2010 session in mid-January, but it is unclear when the MTB will be dealt with and whether it will include a provision to refund duties paid. OIA is continuing to vigorously push for passage of the MTB and recommends the Washington, DC based trade firm of Sorini, Samet & Associates to petition for duty refunds after the MTB is enacted.
Please contact Alex Boian (email@example.com or 303.327.3509) at OIA for more information.