Tariff Reduction on Woolpacks
April 29, 2005
April 29, 2005 -- Legislation (HR 1851) was introduced in the U.S. House of Representatives this week by Rep. Devin Nunes (R-Calif.) to temporarily suspend the duty on nylon woolpacks.
At the American Sheep Industry Association's (ASI) Board of Directors meeting in January, the industry approved a policy to seek elimination of the duty on imported nylon woolpacks which are used to ship wool from the farm and ranch to the buyers.
Nylon woolpacks, which are not produced in the United States, are currently subject to a 7 percent ad valorem duty rate. Additionally, the cost of these woolpacks has increased each of the past three years. Over 50,000 packs are used annually.
With no U.S. production, this tariff does not provide a benefit to U.S. manufacturers and, in fact, is a detriment to business by increasing costs to companies and to the American wool growers.
The industry is asking for legislative support by including nylon woolpacks in the Miscellaneous Trade Bill that is completed during each Congressional session.
"ASI greatly appreciates the support of Rep. Nunes by introducing this legislation and we will be requesting other members of the U.S. House of Representatives join as co-sponsors to the legislation, commented ASI President Paul Frischknecht.
Timothy Koock of Woolsacks Company has also been an invaluable partner in assisting with the technical points of this issue.
Staff contact: Peter Orwick, ext. 33