Covid Edition: Letter from Our Executive Director

It is hard to believe a full year has passed since the global coronavirus pandemic shut down our nation, ravaged communities and caused economic disruption unseen in our lifetimes. We won’t soon forget the devastation, and there is still much work ahead to repair the damages the outdoor industry incurred. However, as I reflect on the past year, I am inspired by how our community came together to respond to this crisis and to deliver some powerful achievements, demonstrating our resilience and strength.

I am particularly proud of the following actions that OIA and our industry were able to take:

We conducted an industry-wide member survey to understand the business impacts of the pandemic and to learn how OIA can lend a hand with tools, resources and advocacy support. We heard from our members the value of focusing on critical outdoor issues such as equity in the outdoors, climate action, public lands, conservation, the outdoor recreation economy and trade. We also heard the need, loud and clear, for new ways for our community to convene. We have already begun delivering on these issues and will continue to do so in 2021 to demonstrate value to our members.

The outdoor industry showed up to support our critical work. We made many asks of you, our members, in the past 12 months, and we are humbled to share that your support will allow us to continue to serve to elevate the collective voice, influence and power of the outdoor industry. Thank you to those who stepped up to Leadership and Support membership levels.

Countless outdoor industry businesses rapidly pivoted their production to make millions of PPE units—including masks, face shields, gowns, ventilators and other critical equipment— for frontline workers. At OIA, we worked quickly to support our members with tools such as this webinar to help move efforts faster and further. Read the inspirational stories here.

Outdoor Retailer went virtual, and OIA pivoted to provide more than 20 education sessions at the Summer and Winter Online shows. Watch our on-demand sessions on topics ranging from DEI to outdoor recreation and from climate action to participation and trade.

OIA advocated on our industry’s behalf in Washington, D.C., and at the state level for economic disaster relief and delivered resources, such as our COVID-19 Hub and webinar and Campfire Conversation series. We also developed a comprehensive policy platform for the 2020 election and secured key meetings with the new administration and Congress.

Outdoorists committed to #VoteTheOutdoors and followed through. In a time of great political division and polarization, protecting the outdoors is one thing we can all agree on. Together through our #VoteTheOutdoors campaign, we were able to preserve public lands and waters, lower costs for outdoor businesses, help advance sustainable business practices and shape public policy.

Outdoor participation grew. Forthcoming research confirms what our industry was reporting anecdotally: people across the country were able to find a reprieve from the pandemic in outdoor activities like trail running, hiking, camping, fishing, biking and more. I take comfort in knowing our industry helped millions of Americans recreate safely through the Recreate Responsibly coalition and that retailers and outfitters across the country found new and creative ways to continue serving their customers, many of whom were newcomers. Our Special Report, The New Outdoor Participant (COVID and Beyond), will help you learn what motivated these newcomers and offer strategies for retaining them, even after pandemic restrictions are lifted.

The Thrive Outside Initiative released its first annual Impact Report. The Thrive Outside Initiative empowers communities to make outdoor recreation an accessible lifestyle for all. This effort is a catalyst to drive positive outcomes in critical areas such as health and wellness, youth development, social justice and community development—all more important than ever during the pandemic. Read what we were able to accomplish and how the communities adapted in year one.

We committed to building a just and equitable outdoors. As the association for the outdoor industry, we have a voice—and a corresponding responsibility to do more. The police killing of George Floyd and countless instances of racism and racial violence against Black people were horrific, and we know these events are not isolated and are part of a long history of systemic racism and injustice in our country and in the outdoors. Read our statement and commitment to do better, as well as the progress we made in 2020.

The Climate Action Corps grew to more than 80 members. In light of global circumstances around the pandemic, it would not have been surprising to see companies take a step back from their sustainability efforts. But the outdoor industry doubled down on its commitment to combat the climate crisis, and we gained dozens of new and committed Corps members. Learn more about our industry’s collective commitment to measure, plan and reduce its greenhouse gas (GHG) emissions and share progress annually.

Despite the challenges and setbacks our industry endured over the past year, we also demonstrated incredible resiliency and unity. I am eager to see how this momentum carries our industry toward continued collaboration, innovation and growth.

As always, please do not hesitate to reach out to our membership team. We are here for you as we collectively work to recover.

Together We Are a Force,

Lise Aangeenbrug
OIA Executive Director

New ban on products made with forced labor in Xinjiang, China

The Trump administration announced last week that it would ban all inbound shipments containing cotton or any cotton products – including textiles and apparel – originating from the Xinjiang Production and Construction Corps (XPCC) due to forced labor and human rights concerns.

The XPCC is a paramilitary organization that is responsible for most of the cotton production and harvest in the Xinjiang Uighur Autonomous Region (“XUAR”) of China. The U.S. Department of Agriculture estimates that XUAR’s cotton harvest accounts for more than 80 percent of China’s overall cotton production.

This action is the latest in the administration’s effort to combat forced labor and other human rights violations in the Xinjiang region, home to China’s Muslim Uyghur community.

In September of 2020, the U.S. Customs and Border Protection (CBP) announced it would detain imports suspected of being made with forced labor from the following entities in XUAR:

  • Xinjiang Junggar Cotton and Linen Co. and its subsidiaries – Cotton
  • Hefei Bitland Information Technology Co. – Computer parts
  • Yili Zhuowan Garment Manufacturing Co. – Apparel products
  • Baoding LYSZD Trade and Business Co. – Apparel products
  • Lop County No. 4 Vocational Skills Education and Training Center – All products
  • Lop County Hair Product Industrial Park – Hair products

In July of 2020, the administration listed the XPCC as a specially designated national (SDN) under U.S. sanctions laws enforced by the Office of Foreign Asset Controls (OFAC) by the Treasury Department; this bars all transactions that benefit the XPCC or its subsidiaries and affiliates with a 50-percent-or-greater controlling share by XPCC. The Commerce Department has also placed companies connected to the Xinjiang region on its Entity List subject to technology export controls.

In addition, the Senate may consider the House-passed Uighur Forced Labor Prevention Act (H.R.6210/S.3471) before the end of the year. As currently drafted, the bill includes the following provisions:

  • A requirement for the administration to develop an action plan to address forced labor in the XUAR.
  • A prohibition starting 120 days after enactment of the importation of all goods produced, in whole or in part, in the XUAR, based on a presumptive link to forced labor – unless the importer can provide clear evidence to the contrary.
  • A requirement that SEC-reporting companies include new disclosures about any nexus to the XUAR.

It is possible that the bill’s provisions could be amended before a final vote in the Senate. We will keep you posted on any developments.

To learn more about this important issue and the impact on outdoor companies, check out this OIA webinar from September.

FAQ: 2020 BUREAU OF ECONOMIC ANALYSIS REPORT ON OUTDOOR RECREATION RELEASED

Outdoor Recreation Is an Economic Force; Accounts for Over 2 Percent of U.S. Gross Domestic Product

November 20, 2020

How is the Bureau of Economic Analysis (BEA) study different from the OIA economic study?
The featured BEA measures include gross output, a measure of outdoor recreation goods and services produced by domestic industries; and value added, a measure of the contribution of outdoor recreation industries to gross domestic product (the primary measure of economic activity in the nation). OIA’s study measures consumer spending on all gear-related expenses and associated travel for outdoor recreation, including spending on imported products.

How does the $842B nominal gross output ($788B real gross output*) contribution line up with the OIA’s $887 billion consumer spending on outdoor recreation?
Both are true, they just measure different economic contributors. The BEA satellite account measures gross output while OIA’s study measures consumer spending on all gear-related expenses and associated travel for outdoor recreation.

It is important to note; the BEA estimate only includes the wholesale and retail mark-ups applied to imported products while the OIA’s figures report all consumer spending.

* Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is, at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.” Chained-dollar (Real) estimates are calculated by taking the current-dollar level of a series in the base period and multiplying it by the change in the chained-type quantity index number for the series since the base period. Chained dollar estimates correctly show growth rates for a series but are not additive in periods other than the base period.

What is the methodology of the OIA Outdoor Recreation Economy Report?
BEA’s analysis for the time period 2012-2019 was just released on November 10. We have not had an opportunity to review the methodology at this point, but what we do know is that our economic report is based on consumer spending, while the BEA’s numbers are focused on measuring gross output and value added.

Essentially, our economic report – which is basic economic input-output modeling – starts with the consumer and works down to the manufacturing/imports point. The BEA goes the opposite direction, starting with production in manufacturing and other industries and works up to the consumer. This approach uses different data sets and methods which accounts for differences, too.

What is the difference between gross output and value added (or GDP)?
Gross output (GO) is the measure of total economic activity in the production of goods and services. It is a much broader measure of the economy than gross domestic product (GDP), which measures final output (finished goods and services).

Webinar: Gear Up: Key Strategies Outdoor Brands Need for Mitigating the Impact of Covid-19 on the Global Supply Chain

Speaker: Tom Cook, Managing Director, Blue Tiger International

The spotlight is on supply chain: volatile demand, uncertain supply, exploding transportation costs, 301 tariffs. Supply chain management has never had such an impact on profitability, and it’s never been more important for supply chain managers to know their options.

This webinar dissects the key issues that global supply chain managers face in light of the pandemic and presents options and time-proven recommendations for mitigating these challenges:

  • Reducing risk and spend in foreign purchasing and international sales
  • Tariff mitigation options: 12 considerations
  • Current state of global logistics: ocean, air, rail and truck
  • Working with 3PLs, forwarders and brokers

 

About the speaker: Tom Cook has over 30 years’ experience in helping companies all over the world manage their business models, supply chain risk and spend and import/export operations. Under Tom’s leadership, in May of 2019, Blue Tiger International won the president’s “E” Award for Export Service, the highest recognition any U.S. entity can receive for making a significant contribution to the expansion of U.S. exports. Tom serves as director of the National Institute of World Trade (NIWT), a nonprofit, 30+ year, corporate training school on global trade and supply chain management, and has authored 19 books on business management, global trade and business development.

NEW CHINA TARIFF EXCLUSIONS FOR SOME PRODUCTS, INCLUDING OFF-ROAD BICYCLE HELMETS AND FOLDING HELMETS FOR BIKES AND SCOOTERS. IS YOURS ON THE LIST?

The Office of the U.S. Trade Representative (USTR) recently announced that it had approved a new group of exclusions for products hit by List 4a of the China 301 tariffs, including certain off-road bicycle helmets and folding helmets. As a result, any company can gain tariff relief on items that match the product description approved by the USTR. We are writing to provide you with the details on these exclusions to ensure that OIA members are able to take advantage of this opportunity to reduce their tariff costs.

This group of products covering List 4a is retroactive to Sept. 1, 2019, and will be valid through Sept. 1, 2020. In order to claim this exclusion, your product must match the product description, and you should use Harmonized Tariff Schedule (HTS) code 9903.88.53 when importing your product.

Again, any importer can benefit from a granted exclusion if the product matches both the 10-digit HTS subheading and the exact specifications of the granted product description. If your product matches the written description but is not currently classified under the provided HTS, we recommend that you check with your customs broker or counsel to review its applicable classification.

To claim duty refunds using a product exclusion, importers can either submit a post-summary correction (PSC) or file a protest. For future imports, the Chapter 99 number assigned to that product exclusion must be used on entries and entry summaries. Guidance on this process issued by Customs and Border Protection (CBP) can be found here.

You can find a comprehensive list of all outdoor product exclusions here.

Extension of List 4a Product Exclusions

USTR also announced that it is accepting comments on extending List 4a product exclusions that are set to expire on Sept. 1, 2020. Companies may file comments herethrough Aug. 14, 2020. If you are utilizing one of the exclusions set to expire, we encourage you to file a comment, even if you did not submit the original petition requesting an exclusion.

The comment period covers the exclusions noted above and those announced on July 7, 2020.

To learn more about the exclusion process and how to take advantage of it to reduce your tariff costs, check out the webinar OIA recently put together with our outside trade counsel from Sorini, Samet & Associates.

We will keep you updated on any future developments on China 301 product exclusions.

US-UK Free Trade Agreement: To advocate, tell us your priorities.

United States and United Kingdom Continue Negotiations on a Free Trade Agreement

The United States and United Kingdom are currently negotiating a free trade agreement, and we need your help in identifying the key priorities for the outdoor industry.

On May 5, 2020, the two sides launched the first round of negotiations and followed up with a second round on June 15. While the timing of an agreement remains unclear, there have been reports that the U.S. and U.K. may push to conclude an agreement before the November U.S. election.

OIA will track the negotiations closely and advocate on behalf of the outdoor industry’s priorities. You can help OIA identify the priorities for the industry by contacting me and by answering the following questions:

  • What products or inputs do you currently source from the U.K.? Please share a copy of the U.S. Harmonized Tariff Schedule (USHTS) codes for those products.
  • Are these products only available from the U.K.? If not, why do you choose to source from the U.K.?
  • Has this trade increased or decreased over the past 1, 3, 5, and 10 years?
  • What is the total value (in U.S. dollars) of your 2019 imports from and exports to the U.K.? (Please differentiate between imports and exports.)
  • For domestic manufacturers, what products do you currently export to the U.K. from the United States? Please provide the Schedule B USHTS codes.
  • What non-tariff barriers and/or regulatory challenges do you face in in the U.K. market?
  • How would the elimination of tariff and non-tariff barriers between the United States and the U.K. impact your business?

Please send your responses to me (rharper@outdoorindstry.org) by July 31, 2020. In the meantime, please do not hesitate to reach out with any questions or to learn more about how you can participate in this process.

Audio Outdoorist: Campfire Conversation: Climate Action After a Pandemic

Can companies in the outdoor industry afford to lean into climate action in the midst and immediate aftermath of a pandemic? For the next hour, you’ll get to listen in as they chat candidly about their respective companies’ approaches to climate and sustainability work. Throughout their conversation, you’ll hear four recurrent themes: risk, resiliency, equity and recovery.

Continue reading

COVID-19 Webinar: Managing Supply Chains in an Uncertain Trade Environment: New Sourcing Opportunities for Outdoor Products

When: Tuesday, June 23, 11:00 a.m. (MT)
Speakers: Rich Harper, Manager of International Trade, Outdoor Industry Association
Ron Sorini, Principal, Sorini Samet and Associates
Andrew Samet, Principal, Sorini Samet & Associates
Emily Vedaa, Global Trade Manager, Columbia Sportswear

Over the past several months, outdoor companies have faced multiple disruptions to their supply chains, whether they be punitive tariffs, the COVID-19 outbreak or uncertainty around global trade policy. As they mitigate the impact of these challenges to protect their bottom lines and maintain high standards for their products, many businesses are actively seeking alternative sourcing options. Join us for an important discussion on some of the key sourcing trends for outdoor products and how U.S. and global trade policy could impact those decisions. In this discussion, you will learn about the following:

    • The impact of punitive tariffs and COVID-19 on some of the top sourcing options for outdoor products
    • New sourcing opportunities for outdoor companies, including the Generalized System of Preferences (GSP) program and free trade agreement partners
    • How U.S. and European Union trade policy could impact your business and sourcing decisions

Campfire Conversation: How to Swiftly & Safely Re-Open Parks & Trails

Welcome to OIA Campfire Conversations, our new special video and audio series that is part of our Audio Outdoorist podcast.

Subscribe to OIA’s Audio Outdoorist and listen to this and other episodes anytime, anywhere. You can find the podcast on iTunes and SoundCloud

These episodes are your opportunity to be a fly on the wall, to listen in as thought leaders and subject-matter experts chat about issues that are important, relevant and timely. The conversations will be candid and casual, fluid and free-flowing. Our hope is that you’ll come away with deeper — and maybe even some new — insights as you consider the various perspectives of the participants. As the trade association of the outdoor industry, OIA’s aim is to convene the diverse thinkers and changemakers whose work and ideas will steer us toward continued growth. We’ll post these as videos on our website for you to watch on your computer, and we’ll publish them on our Audio Outdoorist podcast, so you can listen on your next hike, bike or paddle. Thanks for listening in and enjoy the conversation.

Episode 1 – How to Swiftly & Safely Re-Open Parks & Trails

Amid COVID-19, states across the country implemented stay-at-home and shelter-in-place orders, all with different closure rules and requirements for local, county, state and national public lands, parks and trails. Now, as the country begins to contemplate reopening those outdoor assets, there are many questions and considerations about how to do it expeditiously but safely. Directors from several state outdoor recreation and parks and wildlife offices gather around the fire to chat about what conversation they’re having with other government and land management agencies, outdoor businesses and participants in their states; what usage and access trends have emerged during the pandemic; and how outdoor businesses have been and can continue to be leaders in their communities as Americans rediscover the benefits of time spent outside.

Episode Participants
Cailin O’Brien-Feeny, Director of Oregon Office of Outdoor Recreation
Rue Mapp, OIA Board Member, Outdoor Afro Founder, California State Parks Commissioner
Colin Robertson, Administrator, Nevada Division of Outdoor Recreation
Jon Snyder, Outdoor Recreation and Economic Development Senior Policy Advisor to Washington Governor Jay Inslee
Doug Vilsack, Assistant Director of Colorado Parks, Wildlife and Lands