Gov't closes foreign shoe tariff loophole
The U.S. government is cracking down on foreign shoe manufacturers who exploit a tariff loophole in order to pay a lower duty rate, a move members of Maine's congressional delegation are heralding as beneficial for local shoemakers.
Following an International Trade Commission investigation, President Obama on Monday signed a proclamation to modify tariff rules to close a loophole that allowed foreign shoe manufacturers to reclassify their products for a lower rate, according to the Bangor Daily News. ITC found that foreign manufacturers were adding a small amount of textile fabric to the sole of rubber footwear in order to classify it as a textile product to pay less to export them.
U.S. Sen. Olympia Snowe, who asked ITC to investigate the issue, applauded the decision to close the loophole and said it would benefit the state's nearly 1,000 shoe workers, according to a release. U.S. Rep. Mike Michaud said the policy change will "ensure that we have a more level playing field for an industry that still has a significant presence in our state."
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