[Congressional Record Volume 145, Number 64 (Wednesday, May 5, 1999)]
[Extensions of Remarks]
[Page E858]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF LEGISLATION TO SUSPEND DUTIES ON IMPORTED RAW MATERIAL

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                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                         Wednesday, May 5, 1999

  Mr. McDERMOTT. Mr. Speaker, today I am introducing legislation which 
supports important regional and national interests.
  My home, the 7th Congressional District of Washington, is also the 
home of the K2 Corp., the last remaining major U.S. manufacturer of 
skis and one of three major makers of snowboards in the United States. 
K2 conducts all significant manufacturing operations for skis and 
snowboards at its Vashon Island, Washington facility. In fact, all K2 
snowboards and virtually all K2 and Olin-brand skis sold throughout the 
world are individually crafted by technicians on Vashon Island. 
Moreover, K2 sources almost all of the components for its skis and 
snowboards in the U.S. stimulating the U.S. economy through its 
purchases of raw materials from U.S. suppliers, especially in the 
Pacific Northwest region of the country. However, for a key ski and 
snowboard component--polyethylene base materials--K2 has been unable to 
find a supplier of these products in the U.S. that can meet its needs. 
Therefore, K2 has been forced to import this product, which is subject 
to U.S. customs duties upon importation. This legislation provides for 
a temporary suspension of customs duty on the raw material which is 
vital to the U.S. production of skis and snowboards and which are 
unavailable from domestic producers.
  K2 is working hard to remain viable in the highly competitive 
international market for skis and snowboards. In fact, K2 has endured 
as a U.S. ski manufacturer in the face of fierce price competition, 
while several other major ski companies no longer manufacture skis in 
the U.S. This temporary duty suspension legislation would support jobs 
in the region, as well as K2's ability to continue developing 
innovative, fine quality products. Equally important, a temporary duty 
suspension would help K2 preserve and increase its competitiveness in 
the global marketplace.
  K2 is the only major exporter of skis made in the U.S. In addition, 
K2 is one of three principal exporters of U.S. made snowboards. Thus, 
K2's exports of U.S. manufactured skis and snowboards represent a 
substantial percentage of U.S. skis and snowboards sold worldwide. If 
K2 is unable to remain competitive in global and domestic markets, skis 
manufactured in the U.S. may disappear from the global marketplace. The 
temporary duty suspension proposed by this legislation would help 
prevent the shutdown of the only remaining U.S. producer of skis.

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