SFIA members Franklin Sports, Marucci, Wilson/DeMarini, and Rawlings/Easton are supporting the Congressional Baseball and Softball games with equipment donations! Below you can find a sneak peek of the practices – leading up to the games on June 12 (baseball) and June 26 (softball)!
The games will raise collectively close to $2 million for charity. Funds from the Congressional Softball game go to the Young Survivors Coalition to help breast cancer survivors. The Congressional Baseball game money is split among many charities – you can find the beneficiaries on the website.
Thank you to our SFIA Members who help support the cause!
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 23, 2024): In an ironic twist, the office of the U.S. Trade Representative shared they would open a portal for comments on the impact of Section 301 Tariffs on businesses in the same Federal Register notice they announced new tariffs of 25 to 100 percent on a long list of products.
None of the new tariffs target sports or fitness equipment directly, but tariffs on aluminum, steel, and iron would rise to 25 percent. Companies with products containing steel, aluminum, or iron from China are encouraged to review Annex A of the Federal Register notice to determine their new tariff exposure.
With the announcement of new tariffs and the USTR’s 4-year review on the impact of Section 301 Tariffs limiting the exclusion process to machinery used in domestic manufacturing, there is no avenue to Section 301 Tariff Relief at this time. This is disappointing following the General Accountability Office (GAO) review of the Section 301 Exclusion process for consumer goods on lists 3 & 4A, which found the process seriously flawed and recommended a new fair and transparent exclusion process for consumer goods.
The USTR comment portal offers an opportunity to share the impact of the current tariffs on your business with USTR, what the new tariffs mean to your business, and press for a new fair and transparent exclusion process for consumer goods. Please find questions USTR posted for comment consideration here. The 30-day comment period opens on May 29 and closes June 28. Comments can be submitted using this link https://comments.ustr.gov/s/ under the heading “Request for Comments: Proposed Modifications to the Section 301 Actions and Proposed Exclusion Process” (docket number USTR–2024–0007).
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 21, 2024): The U.S. Trade Representative (USTR) released an overdue 4-year review on the impact of Section 301 Tariffs. The report found that China has made progress, but has not met the terms of the Phase One agreement and the tariffs will remain in place. It was hoped the report would offer a pathway to exclusions for consumer goods on List 3 & 4A, but only machinery equipment used in domestic manufacturing will be eligible for new exclusions.
Specifically, the report noted China continues to abuse tariff transfer policies and that U.S. Customs & Border Protection (CBP) needs more resources to enforce Section 301 violations. The U.S.T.R. also recommended increased cooperation between the public and private sectors to combat state-sponsored IP theft and the need to diversify supply chains for improved resiliency.
“The report is very disappointing,” said Bill Sells, SFIA SVP for Government and Public Affairs. “The goal of the tariffs was to punish China for IP violations and unfair trade practices and drive manufacturing jobs back to the U.S. The Section 301 tariffs have not accomplished any of these goals, and are nothing more than a tax that is ultimately paid by consumers. It is very unfortunate that we understand the importance of active lifestyles to overall health like never before, but we are artificially raising the cost barrier to healthier lives.”
In addition to not re-opening a fair and transparent exclusion process as recommended by the General Accountability Office (GAO), the President announced high tariffs on electric vehicles, batteries, and solar panels made in China. Former President Trump has announced his intention to raise and expand Section 301 Tariffs if elected, meaning the trade war with China will continue.
To facilitate production outside of China, the House Ways & Means Committee passed legislation to re-authorize the Generalized System of Preferences (GSP) and modify the Di Minimis exemption. GSP eliminates U.S. tariffs on products sourced in 119 countries with developing economies. Di minimis reform would restrict the use of direct-to-consumer low-dollar shipments from China to stem the flow of fake products entering the U.S. without CBP inspection. Both bills await a House floor vote.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Up to $40 Million in Tariff Relief on Sports & Fitness Products Previously Approved
Washington, D.C. (May 15, 2024): More than three years after MTB tariff relief lapsed, Congress is moving to renew this vital program. The House Ways & Means Trade Subcommittee Chairman Adrian Smith (R-NE) introduced the “Miscellaneous Tariff Bill Reform Act” on May 14th with support from 17 House Ways & Means members.
“Congress must renew this historically bipartisan legislation which unanimously passed out of the Ways & Means Committee in 2016,” stated Ways & Means Trade Subcommittee Chairman, Adrian Smith. “Fighting for American workers and industry demands we do everything we can to make U.S.-manufactured goods more competitive in both domestic and international markets. This legislation will deliver input cost relief to American producers, in turn benefiting consumers worldwide.”
The proposed MTB bill would offer duty-free treatment through 2025 for products recommended by U.S. International Trade Commission, after vetting petitions, for inclusion in the MTB bill. MTB relief would be retroactive from January 1, 2021. The bill would align with U.S. Trade policy toward China by excluding finished products subject to Section 301 duties but allow U.S. manufacturers duty-free access to parts and components. The bill would reauthorize the USITC-initiated processes for vetting future MTB relief petitions to create new tariff relief opportunities for domestic manufacturers on inputs not made in the U.S.
The introduction of the MTB Reform Act is a long overdue first step in the process. House Republicans will now look to move the MTB Reform Act through the Ways & Means Committee and then bring it to the House floor for a vote. No timetable has been set for Ways & Means consideration. While MTB has always been bipartisan, the heat of an election year has kept Democrats off this bill as they seek to build support with organized labor leading up to the fall elections. With Democrats controlling the Senate, a compromise will be necessary to get it through the Senate and to the President’s desk in 2024.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 15, 2024): President Biden announced new tariffs on Chinese imports of aluminum, steel, semiconductors, batteries, and electric vehicles in an effort to protect investments in those domestic industries. The President did not address the required four-year review on the effectiveness of the China tariffs in achieving U.S. policy objectives and the re-opening of a more transparent exclusion process as recommended by the General Accountability Office.
The White House release outlined tariff increases to 25 percent beginning in 2024 for battery parts (non-lithium ion), lithium-ion EV batteries, ship-to-shore cranes, critical minerals, and steel & aluminum; electric vehicle tariffs will rise to 100 percent and solar cells to 50 percent. Tariffs on semiconductors will increase to 50 percent in 2025 and in 2026, tariffs on permanent magnets, natural graphite, and lithium-ion non-EV batteries will grow to 25 percent.
The U.S. Trade Representative (USTR) will issue a notice on the comment process and an exclusion process for machinery used in domestic manufacturing. USTR referenced the required four-year review on the effectiveness of tariffs in the announcement and relied on some of the findings to propose higher tariffs on certain products, but provided no timeline for the release of the report and re-opening a new transparent exclusion process.
SFIA will continue pressing USTR to release the report and re-open a new fair and transparent exclusion process. SFIA will offer assistance to any companies seeking help with Exclusion petitions.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 9, 2024): The American Golf Industry Coalition (AGIC) ascended on Capitol Hill on May 9 to promote the PHIT Act on National Golf Day (NGD). SFIA’s U.S. Golf Manufacturers Council is a leader in the AGIC and USGMC Chairman, Rawleigh Grove, joined the lead group on NGD. In addition to PHIT, AGIC also requested funding for Turfgrass research and the removal of golf courses as ineligible for disaster relief. More than 200 people participated in meetings with Congress.
Bill Sells, SFIA SVP for Government & Public Affairs joined a group from Arizona for a successful day promoting golf for health and the PHIT Act. As a lifelong sport that promotes healthy activity, golf is a great example of how the PHIT Act will lower costs to increase participation and improve health in America. The group pointed out the hypocrisy in the IRS’s announcement that medically prescribed activities would be eligible for HSA reimbursement, but not voluntary physical activity expenses that keep you out of the doctor’s office.
NGD was a good day for the PHIT Act, adding new co-sponsors to give PHIT close to 100 bipartisan co-sponsors in Congress, including more than half of the House Ways & Means Committee. PHIT champions continue to press Congressional leadership to move PHIT in a health or tax package in 2024.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 14, 2024): On May 14, Bill Sells, SFIA SVP of Government & Public Affairs, joined the SHOP SAFE coalition on Capitol Hill to promote legislation requiring online sellers to follow the same rules as brick-and-mortar retailers before listing products for sale. The growth of the online marketplace has led to a significant increase in counterfeit sales of sports equipment & fitness products. The National Association of Manufacturers puts the total revenue lost due to counterfeits at $130 billion annually and is still growing as more consumers make online purchases.
The SHOP SAFE Act is bipartisan legislation to reduce online counterfeit sales by requiring e-commerce websites to follow the same requirements as brick-and-mortar retailers in determining the authenticity of a product sold on their platform. Under the legislation, an online seller would be held liable for any harm caused by a fake product sold on their site. The SHOP SAFE Act is supported by a broad coalition of interests. The National Association of Manufacturers, Online Pharmacies, Home Appliances, Toys, Auto-Parts, Childrenswear, and Apparel & Footwear industries joined SFIA in SHOP SAFE meetings with Congress on May 14.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 1, 2024): On May 1st President Biden announced May is Physical Fitness and Sports Month and highlighted the cost and access barriers to activity many Americans face.
“Today, less than half of all Americans live within a half-mile of a park. Tens of millions of children do not have access to a playground within a 10-minute walk of their home. Cash-strapped schools are too often cutting physical education programs. Youth sports leagues can be expensive, leaving too many kids with few options. The United States of America can do better.”
The Sports & Fitness Industry Association applauds the Administration’s commitment to active lifestyles and recognition of the barriers to healthy activity. SFIA is working to move two policies through Congress to address the cost and access barriers. The PHIT Act will lower costs of activity by allowing consumers to use funds in pre-tax medical accounts to pay for them. PHIT is a tax bill, and more than half of the members of the top Congressional tax committee are co-sponsors of the legislation. The Youth Sports Facility Act is draft legislation to expand the definition for eligible uses of Economic Development Assistance (EDA) grants to include youth sports and recreation projects. EDA received $468 million in funding in 2024 but none of the money flowed to youth sports & recreation projects.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (April 18, 2024): The Generalized System of Preferences (GSP) tariff relief program got a boost when the House Ways & Means Committee passed legislation to renew the program through 2030 and offer retroactive relief from January 1, 2021 when the program lapsed. Companies would have 180 days to file for retroactive relief.
The bill would also ban China from being eligible for GSP benefits to help level the playing field. There are currently 119 GSP-eligible countries and industry products made in GSP countries; the bill includes labor and environmental provisions for eligibility. Democrats were disappointed an amendment to renew the Trade Adjustment Assistance (TAA) program to help displaced workers failed.
The Ways & Means Committee also approved legislation to ban any goods subject to Section 301 enforcement tariffs from using the de minimis exemption that allows shipments valued under $800 to ship direct to consumer. Shipments from China accounted for two-thirds of de minimis shipment 2018-2021 according to the U.S. International Trade Commission.
Chinese e-commerce giants Temu and Shein use de minimis to avoid CBP inspections for counterfeits, forced labor, and applicable tariffs. Use of the de minimis exemption soared from $40 million in 2012 to $67 billion in 2022 as bad actors abused the loophole to circumvent U.S. Customs to avoid Section 301 tariffs and bring in illegal products.
“SFIA applauds this action in the House of Representatives – it is a step in the right direction on GSP and reeling in the abuse of a tariff loophole,” said Bill Sells, SVP, Government & Public Affairs, SFIA. “GSP will make alternative sourcing options more attractive to SFIA members seeking to move out of China; tightening the use of the de minimis exemption will limit fakes and level the tariff playing field. We look forward to moving this bill through Congress.”
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (April 3, 2024): As shipping companies and manufacturers scramble to mitigate the supply chain issues resulting from the tragic collapse of the Francis Scott Key Bridge, blocking the entrance to the Baltimore Harbour, the CBP, and the United Command overseeing the response have provided information to help manufacturers, importers/exporters, and shippers.
The CBP issued an update on the Baltimore Port Closure due to the collapse of the Francis Scott Key Bridge offering guidance on alternative Port options, cargo stranded in Baltimore Port, and unloading export cargo from ships in Baltimore Port. A “United Command” website has been created to provide the latest information on the response and the impact on the Port to aid interested parties in navigating the challenges presented by the bridge collapse.
President Biden has committed Federal Government resources and funding for the removal of the debris and reconstruction of the Key Bridge. Congress needs to waive the requirement that the State cover a portion of the expense and approve the Federal Government paying 100 percent of the costs. Some in Congress have raised concerns about the Federal Government covering the entire project, but there is enough support to re-open this major East Coast Port quickly to pass legislation funding the clean-up/reconstruction of the bridge.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].