Union Leader: Designed Here, Made Overseas

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Brands such as Eastern Mountain Sports, Timberland and NEMO are synonymous with outdoor recreational activities that include hiking, camping and canoeing.

But they're also a big part of the New Hampshire economy. The state not only relies on the money hikers, campers and boaters spend when they vacation in the state. It also has a big stake in the companies that sell them their gear.

That's why Sen. Kelly Ayotte, R-N.H., last week joined Democratic Sen. Maria Cantwell of Washington State in introducing the OUTDOOR Act, which would eliminate outdated tariffs on imported high-performance outerwear.

The acronym stands for Optimal Use of Trade to Develop Outerwear and Outdoor Recreation.

According to Ayotte, the bill would make outdoor apparel such as water-resistant jackets and pants more affordable for consumers and help outerwear retailers to create jobs, import goods and invest in research and development of new cutting-edge performance apparel.

Sen. Jeanne Shaheen, D-N.H., is among the cosponsors of the legislation, which is also supported by the American Apparel and Footwear Association, the Outdoor Industry Association, and companies like Eastern Mountain Sports, Kamik Boots, NEMO Equipment, New Balance and Timberland.

Ayotte does not anticipate much opposition to elimination of the tariffs, since there is very little domestic production of high-performance outer wear, and what there is relies heavily on military contracts, not consumer goods. U.S. companies design and market the goods, which are produced overseas. The 15-percent tariff that is added to the price of the products when they land on American shores adds unnecessarily to consumer costs, since companies such as EMS could not have the goods manufactured in the United States anyway.

"The United States International Trade Commission found that recreational performance apparel produced in the U.S. makes up less than 1 percent of the total recreational performance market," said Ayotte, a member of the Senate Commerce Committee. "This legislation would lower costs for outdoor enthusiasts and companies that sell outdoor recreational apparel, ensuring that they can continue to thrive and create jobs."

Those jobs are important in New Hampshire, where Timberland, for example, employs 435 at its corporate headquarters in Stratham.

While eliminating a 15-percent tariff, the OUTDOOR Act calls for a Sustainable Textile and Apparel Research (STAR) Fund to help the U.S. textile and apparel industry maintain its edge in the research and development of high performance outerwear.

The money from a 10-year assessment of 1.5 percent on the value of imports would be administered by a board of directors comprised of importing and domestic industry representatives.

Timberland Vice President and Chief Counsel Kristine Marvin says the elimination of tariffs and the STAR fund would benefit her company, which employs 7,000 people overall - 3,000 of whom work at the footwear company's manufacturing facility in the Dominican Republic.

"We see a number of potential benefits if the duties are reduced or eliminated, primarily freeing up funds for reinvestment in jobs, research and development, and in savings to pass along to the consumer," she said.

Ayotte said Congress simply hasn't gotten around to dealing with the outdated tariffs, and that she was responding to the issue because it was brought to her attention by the Outdoor Industry Association and New Hampshire-based companies.

"I don't think there's a lot of controversy around this," she said. "The way we drafted the bill, it's narrowly tailored so that it won't harm domestic manufacturers."

Those few U.S. manufacturers that remain are also protected by the Berry Amendment, which requires the Department of Defense to give preference to domestically produced goods - particularly food, clothing, fabrics and specialty metals - in its procurement.

"Domestic sewing simply isn't competitive in the commercial marketplace," said Cam Brensinger, founder and CEO of NEMO Equipment, which employes about 20 people at a 20,000-square-foot office in Dover.

"The skills have long since moved abroad," he said. "It actually takes a lot of skill to sew modern technical apparel, and no kids in this country are growing up aspiring to work at a sewing machine. In Asia, sewing is often a great job compared to the alternatives."

Brensinger says the OUTDOOR Act will increase the viability of companies who design and market highperformance apparel and footwear, creating millions of U.S jobs.

"And those are good jobs," he said, "doing marketing, sales, distribution, design, engineering. The way the global supply chain has sorted itself out for my industry, Americans have ended up with the best-paying, most satisfying jobs - the ones that focus on innovation, which is what America is best at."

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