Congress, it turns out, plays fashion favorites.
Take bathing suits. It slaps a 28 percent tax on men’s imports, but just 12 percent on women’s.
Or overalls. The government imposes a 14 percent tariff on women’s, but only 9 percent on men’s.
Woven wool shirts? Men’s are hit with an 18 percent duty, more than twice as much as women’s.
There is no apparent pattern to the tariffs, which penalize men in some instances, and women in others. But the fees tacked onto clothing, shoes and swimwear as they enter the country’s ports may be the last legal form of sex discrimination in the United States, approved year after year by lawmakers and passed on to consumers.
For decades, apparel companies have grudgingly tolerated the peculiar disparities, writing them off as a vestige of smoke-filled, backroom trade negotiations.
But now, several major apparel makers, like Steve Madden, Asics and Columbia Sportswear, are challenging the tariffs in lawsuits against the federal government that have broad implications for the clothing industry, not to mention the battle of the sexes.
If the clothing companies prevail, they could reclaim close to $1 billion worth of tariffs based on gender differences. For example, the lawsuit claims that the government earned $2.5 million last year from discriminatory tariffs on underpants (penalizing women), $93 million for cotton shirts (penalizing men), $16 million for silk shirts (penalizing women) and $71 million for shoes with leather tops (women again).
The case also could help unravel one of the greatest mysteries in retailing: why similar clothing for men and women is priced so differently.
What the lawyers do not know — and what they hope their lawsuit reveals — is precisely why these glaring disparities exist.
Theories abound. Since the first appearance of gender differences in the tariff system dates back to the mid-1800s, plain old sexism is one hypothesis. An effort to protect American textile manufacturers from imports is another.
But after years of poring over dusty tariff lists, international trade court records and Congressional testimony, lawyers have found nothing that explains why, say, the tariff on an imported wool suit is 8.5 percent for a woman and zero for a man.
“It’s irrational,” said Peter Bragdon, the general counsel at Columbia Sportswear, one of the companies suing the government.
Columbia Sportswear imports a rugged hiking boot from China called the Diamond Peak. The men’s and women’s boots are virtually identical. But the tariff on the women’s version is 1.5 percentage points higher than the men’s (10 percent, compared with 8.5 percent).
“I think any first-year law student would have the same gut reaction we did — wait, you cannot do that,” Mr. Bragdon said. (NYT)
Next, fix haircut and drycleaning prices…