Saturday, June 18, 2011

USA: cheaper shoes could be on their way

Today, 98 percent of shoes sold in the US is made offshore. During the Depression, a crippling import tax was introduced to protect the domestically made footwear industry, but now the main bulk no longer exists. These import duties stand which is causing inflating the cost of footwear generally in North America. Tariffs vary by type of shoe, open-toed shoes carry no levey; high-end leather shoes have low or no tax; but canvas shoes carry a 67percent mark up tax. Moves are now in place to end the tax although experts are unsure what effect this may have although no one disagrees, retailers and consumers would benefit overall.

The Footwear Distributors and Retailers of America (FDRA)have been working on promoting new legislation "for about four years," and the amendments to Affordable Footwear Act of 2007, if it were successful, would eliminate roughly half the duties on imported shoes. The Act has drawn bipartisan support and the hope is the shoe-tax issue could be brought up this year.

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