As the new year gets into full swing, RVIA’s Government Affairs (GA) team has numerous federal legislative priorities.
Reauthorizing the Generalized System of Preferences (GSP) is among the top advocacy priorities, RVIA said. Since the GSP program lapsed at the end of 2020, the RV industry has paid an estimated $1.5 million in tariffs each month.
The most important product that lost its duty-free status is Indonesian lauan, a plywood not domestically grown and for which no domestic substitute exists.
A retroactive reauthorization would enable RV companies to recoup these costs, especially regarding lauan. RVIA’s GA team is advocating for a six-year renewal term.
Another priority is a change in the Competitive Need Limitations (CNLs) within the GSP.
The CNLs are built-in import ceilings that eliminate duty-free access to U.S. markets if the ceilings are exceeded. The 2023 cap was $210 million. These limits hurt products such as lauan.
RVIA’s GA team continues advocating for the Competitive Need Limitations Update Act. This would establish a $600 million ceiling and introduce a 5% annual growth provision.
Other GA advocacy priorities include:
- Passing an outdoor recreation package: The Expanding Public Lands Outdoor Recreation Experiences (EXPLORE) Act and America’s Outdoor Recreation Act (AORA) in the Senate, passed the House Natural Resources Committee unanimously in mid-January. The EXPLORE Act previously passed out of the Senate Energy and Natural Resources Committee in May 2023. The bipartisan legislation brought together all sectors of the $1 trillion outdoor recreation industry. The bill awaits full House and Senate votes.
- Passing the Travel Trailer and Camper Tax Parity Act: The federal tax code’s motor vehicle definition does not include towable RVs. As a result, floorplan financing interest charges on motorhomes remain fully deductible while the towables deduction is limited to 30% of interest expenses based on earnings before interest and tax.
- Monitoring regulatory proposals: The GA team monitors federal regulatory proposals to ensure there is no risk of undue burdens on the RV industry.
