New Federal Law Likely to Impact Outdoor Industry Supply Chain

OIA has joined a coalition of trade associations, outdoor businesses and other interested groups in asking Congress to correct or postpone the implementation of changes to the The Farm Bill.”
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OIA Seeks Changes to Amendments in Farm Bill

Outdoor Industry Association (OIA) has joined a coalition of trade associations, outdoor businesses and other interested groups in asking Congress to correct or postpone the implementation of changes to the Lacey Act, a section of the recently passed and signed Food, Conservation and Energy Act of 2008 (H.R. 6124 – “The Farm Bill”). The section that amends the Lacey Act – a law passed in 1900 that prohibits interstate and international trafficking in protected wildlife species – requires new reporting requirements of all plant or plant products entering the United States. This includes any products using wood or bamboo-based products. The requirements also extend to any hang tags that are on plant or wood-based products. The Farm Bill and the changes to the Lacey Act are now law, passed by Congress and signed by the president. It is not proposed legislation or policy. It will go into effect on December 15, 2008, nless it can be successfully altered or delayed.

The new reporting requirements would require all importers to declare the genus and species of the plant or plants used in the imported product, provide a description of the value of the importation, provide a description of the quantity, including the unit of measure, of the plant and provide the name of the country from which the plant was taken.

If more than one plant was used – cotton and rayon for example – both species of plants must be declared; if plant products came from multiple countries, both countries must be declared; if the genus and species or country of origin are unknown, importers must identify all the potential genera, species and countries of origin. If importers have a paper or paperboard product that includes recycled plant material, the percentage of recycled material must be declared as well. These changes will impact these types of products commonly found in the outdoor industry:

•All cotton fibers/fabrics – Cellulose based
•All Rayon and its Polynosic derivatives (Modal, Tencel, Bemberg, etc.) – Regenerated Cellulose based – Made from Pulp of Hardwood Trees
•All Bamboo, Jute, Hemp and Linen fibers – Modified cellulose
•Some wood-based trim items such as buttons
•Soy bean fibers
•Cork products – such as fishing rod handles, umbrella handles, etc.

“The new requirements of the Lacey Act will put an unnecessary strain on outdoor businesses,” said Frank Hugelmeyer, OIA president. “We are working with other trade associations, outdoor businesses and members of Congress to correct or postpone implementation until the impact can be fully studied.”

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About Outdoor Industry Association
Outdoor Industry Association® (OIA) is a national trade association whose mission is to ensure the growth and success of the outdoor industry. OIA provides trade services for over 4000 manufacturers, distributors, suppliers, sales representatives and retailers in the outdoor industry. OIA programs include representation in government/legislative affairs, market and social research, business-to-business services and youth outreach initiatives. Educational events include the annual Rendezvous™, Outdoor University®, and the Capitol Summit. Outdoor Industry Association is based in Boulder, Colorado, and is the title sponsor of the Outdoor Retailer tradeshows. For more information go to http://www.outdoorindustry.org or call 303.444.3353.

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