Duty Reduction on Woolpacks Requested
March 11, 2005
March 11, 2005 -- During the January 2005 American Sheep Industry Association (ASI) board of directors meeting in Reno, Nev., the board approved a new nylon woolpack policy. The policy resolves that ASI seek a new classification to specify nylon bale covers for wool and that a duty suspension be made effective.
Nylon woolpacks, which reduce the chance of wool contamination, are widely used in the U.S. wool industry; however, they must be imported since there are no domestic suppliers. Currently, a 7 percent ad valorem duty (in proportion to the value) is assessed on the imported packs increasing costs to the domestic wool industry by nearly $30,000 annually. Adding nylon woolpacks to the Harmonized Tariff Schedule of the United States would eliminate this additional cost.
In letters to Senator Max Baucus (D-Mont.) and Representative Wm. Thomas (R-Calif.), ASI requested their support to include woolpacks in the next Miscellaneous Trade Bill. Inclusion in this bill would provide a temporary reduction in the tariff on woolpacks.
"This tariff no longer provides any benefit to U.S. manufacturers and, in fact, the tariff increases costs and is a detriment to companies and American wool growers," stated Paul Frischknecht, ASI president.
Staff contact: Peter Orwick, ext. 33