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.

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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

 

Campfire Conversation: Conservation & Recreation Advocacy From Home

Join us for a collaborative campfire conversation with Outdoor Industry Association, Outdoor Recreation Roundtable, The Conservation Alliance and Outdoor Alliance while they discuss support efforts of policy initiatives through in-person and virtual advocacy amid the pandemic safer-at-home orders.

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

Trade Alert: New China Tariff Exclusions – Hydration Backpacks, Duffels, Bikes, Messenger Bags

The Office of the U.S. Trade Representative (USTR) recently announced that it approved another group of tariff exclusions for products hit by the List 3 China 301 tariffs, including several outdoor products. 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.

To learn more about this exclusion process and how to take advantage of it to reduce your tariff costs, join us for a webinar this Thursday, April 30, at 3 p.m. (ET).

The group of product exclusions is retroactive to Sept. 24, 2018, and will be valid through Aug. 7, 2020. Here are some examples of the products included:

  • Backpacks with hydration packs
  • Bikes
  • Duffel bags
  • Messenger bags

In order to claim this exclusion, your product must match the product description, and you should use Harmonized Tariff Schedule (HTS) code 9903.88.45 when importing your product.

Again, any importer can benefit from a granted exclusion if the product matches both the subheading and the exact specifications of the granted product description. If your product matches the written description but is not currently classified under that 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.

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