SFIA Trade Relief Update

In anticipation of the expiration of tariff relief offered by the MTB at the end of 2020, SFIA organized members last fall and filed 58 petitions to renew existing relief or provide new tariff relief on imported products no longer made in America. The U.S. International Trade Commission (ITC) reviewed all MTB petitions and submitted its preliminary report to Congress in early June. 55 of the 58 MTB petitions filed by SFIA were recommended for tariff relief. Congress will now review the ITC report and can request removal of products but may not add any new products. The ITC will consider the congressional requests and submit a final MTB for a vote this fall. The MTB is expected to pass and assuming the president signs it, new tariff rates will go into effect on January 1, 2021, avoiding any lapse in MTB tariff relief.

MTB Timeline can be found here.

List of Products Recommended for MTB Relief

China Tariff Exclusions

The administration offered “Exclusions” to help companies who do not have alternative sourcing options to avoid Section 301 Tariffs on imports from China. The tariffs were announced in five tranches; List 1, List 2, List 3, List 4A and List 4B. To date, tariffs have been applied to all Chinese imports except List 4B. “Exclusions” offered a reasonable option for relief from Section301 tariffs as 35 percent of the requests for relief from List 1 and List 2 tariffs were approved. Requests for relief from tariffs applied via Lists 3 and 4A have seen a drastic drop in approvals, with only about 3 percent of exclusion requests being granted thus far. Only 1,497 of 30,285 List 3 exclusion requests were granted, and List 4A is ongoing, but only 222 have requests been approved and 2,045 have been denied.

List 3 Exclusions — 25 petitions filed, 6 accepted (below), 24% success rate

- Sauna Suit
- Travel Bag
- Football Helmet Internal Front Pad
- Football Helmet Internal Component S-Pad
- Football Helmet Component, Chinstrap
- Stainless Steel Chinstrap Buckle

List 4A — 31 filed, 13 are awaiting a decision (below)

- Judo, Karate and other Oriental Martial Arts Uniforms
- Helmet with or without mask or jaw guard
- Baseballs
- Racquetball Racquets
- Slimmer Belts
- Heavy Bag Shells
- Punch Mitts
- Shin Guards
- Padded Gear
- Speed Bags
- Heavy Bag Stands
- Handwraps
- Mouthguards

Despite the chill in U.S.-China relationship, due to the COVID outbreak, tensions over Hong Kong and North Korea, Phase One of the China Trade deal is holding, but both sides have signaled a willingness to break it. It is not expected the current environment will lend itself to a reduction in tariffs beyond exclusions.

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SFIA is the leading global trade association in the sports & fitness industry. SFIA is the #1 source for sport & fitness research. More info at www.sfia.org.

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