Legislation that would eliminate tariffs on about 60% of shoes imported into the US each year has been reintroduced to Congress, in a move that has been welcomed by footwear retailers and importers.
The Affordable Footwear Act is described as “common sense legislation that would eliminate the hidden and regressive tax on most low-cost and children’s shoes,” by the American Apparel & Footwear Association (AAFA).
It was introduced in the House of Representatives on Friday (29 July), following it presentation in the Senate in May.
It proposes to end a tax that adds more than 25% to the retail price of a pair of shoes to cover import duty. In 2010, AAFA estimates 99% of the shoes bought in the US were produced overseas. Affordable and low-cost shoes incur higher import duties of up to 67%.
After its passage, the Affordable Footwear Act would eliminate about $800m in duties on children’s and low-cost shoes out of the $2bn in total duties collected on imported shoes in 2010.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
