NAMM supports free and fair trade. Review the recent informational webinar, including exemption-filing procedures and ongoing updates about the impact of the 2020 Chinese trade agreement.

NAMM Supports Free Trade

On behalf of 10,400 global members, NAMM believes that a strong and vibrant music and pro audio products and entertainment technology industry is important to the educational and cultural vitality, as well as the economic prosperity of all countries. As a trade association, NAMM will continue in our efforts to proactively engage elected officials to keep the lines of dialogue and trade open and urge U.S. and world leaders to reaffirm a commitment to such.

Ongoing updates and resources will continue to be posted to this page. Resources below include policy updates from the U.S. Trade Representative, The U.S. Chamber of Commerce, and The National Retail Federation.

To contact NAMM's Public Affairs and Government Relations team, email publicaffairs@namm.org  

Latest Updates

June 2022: Ocean Shipping Reform Act Addresses Supply Chain Challenges and Carrier Shipping Practices 

On June 16, 2022, the Ocean Shipping Reform Act (OSRA) was signed into law, updating ocean shipping ‘rules of the road’ for the first time since 1998, ensuring foreign ocean carriers are not unfairly rejecting American exports. The bipartisan package of U.S. shipping law reforms addresses supply chain disruptions, rising ocean shipping costs, and insufficient vessel service. U.S. agricultural exporters and importers of retail goods and raw materials that depend on competitive and efficient international ocean transportation services have faced ongoing challenges in securing timely and adequate vessel space, skyrocketing shipping costs, and inefficiencies in the pickup and delivery of cargo. 

The 2022 Ocean Shipping Reform Act authorizes appropriations for the Federal Maritime Commission (FMC) for fiscal years 2022 through 2025; establishes additional requirements and prohibited conduct for ocean carriers; requires the FMC to issue rules related to certain fee assessments, prohibited practices, and establishment of a shipping registry; and authorizes the FMC under certain circumstances to issue an emergency order requiring common carriers to share information directly with shippers and rail and motor carriers.  As mentioned previously, we’ve heard stories of violations of FMC rules occurring at some ports.  NAMM Members in this difficult position are urged to file a complaint with the FMC here   

NAMM, which was part of a coalition supporting passage of the new law, will continue to monitor this topic and will provide updates here as they are available.  

May 2022: USTR Seeks Public Comment Regarding the Continuation of Expiring 301 Tariffs  

The Biden administration is soliciting feedback from U.S. industries about whether to extend soon-expiring tariffs on billions of dollars in Chinese goods. The Office of the U.S. Trade Representative sent notices to 600 companies and entities that have previously commented on the Section 301 tariffs seeking their input. 

Background: On May 13, 2019, the USTR posted the draft Federal Register notice announcing the HTS lines and the process for the List 4 China 301 tariffs. This included just about everything that wasn’t already subject to the additional 301 tariffs such as apparel, footwear, toys, consumer electronics, and musical instruments.  

• Products on HTC list 4A (stringed instruments, pianos, wind instruments, percussion, keyboards, accessories, and more) are currently subject to a 7.5% tariff 
• Products on HTC lists 1, 2, and 3, are currently tariffed at 25% 
• Products on HTC list 4B (some stringed instruments, stands, and some accessories) are not currently subject to additional tariffs 
• A full view of HTC List 4 is here.  Note: Music instruments and related accessories can be found under HTS 9201.10.00 “Upright Pianos,” through 9209.99.80 “Parts and Accessories for Musical Instruments”  

Public Comments: To make public comments in favor of continuing tariffs for the July 6, 2018 trade action (list 1), link here from May 7, 2022, through July 5, 2022. To make public comments in favor of continuing tariffs for the August 23, 2018 trade action (list 2), link here from June 24, 2022, through August 22, 2022.  NAMM Members who wish for the continuation of tariffs under List 3 or List 4A may submit requests through either portal. NAMM will continue to monitor this important issue and will provide updates as they are available. Please visit this page regularly

NAMM monitors tax reform issues and provides periodic updates on advocacy efforts and pending legislation. For up-to-date information on this issue, please visit this page regularly.

Latest Updates

3/29/22: NAMM Endorses the Performing Artist Tax Parity Act: Provides tax relief for musicians, other performing artists

NAMM is pleased to support the Performing Artist Tax Parity Act (H.R. 4750 and S. 2872); federal legislation which would restore and update a tax deduction to help performing artists deduct business expenses. The legislation is sponsored in the House by Reps. Judy Chu (D-CA) and Vern Buchanan (R-FL) and in the Senate by Sens. Mark Warner (D-VA) and Bill Hagerty (R-TN).

A provision in the Tax Cuts and Jobs Act of 2017 largely eliminated the option to claim miscellaneous itemized deductions that allowed many performers and other artists to deduct work expenses not covered by their employers. As a result, many artists ended up paying more in taxes since the costs of instruments, equipment, travel, and other business-related costs were no longer deductible.

To address this problem, the Performing Artist Tax Parity Act would revise and expand the Qualified Performing Artist (QPA) tax deduction. QPA allows eligible performing artists, such as musicians, actors, and others employed in the performing arts, the option to take an “above the line” deduction for unreimbursed expenses. But the current adjusted gross income maximum threshold for the QPA deduction is just $16,000 - a level unchanged since QPA’s inception in 1986. The current threshold, as established more than 50 years ago, severely limits the number of individuals eligible for the QPA deduction. The legislation would make business expense deductions more widely available by modernizing the QPA’s income thresholds.

The bill increases the income level to $100,000/single taxpayer and $200,000/joint filers, adds a built-in phase-out of the deduction and provides threshold income increases based on the Consumer Price Index. With these revisions, more lower and middle-income performers would be eligible for the QPA deduction.

Congressional sponsors are seeking to advance the bill this year, possibly through inclusion in an end-of-the-year tax measure. In addition to NAMM, supporters of the legislation include the American Composers Forum, Americans for the Arts, Actors’ Equity Association, American Federation of Musicians, League of American Orchestras, SAG-AFTA and the Motion Picture Association. NAMM will continue to monitor this issue and will post updates here as they are available.

• Additional information about H.R. 4750 and S.2872
• NAMM Letter of Support for H.R.4750
• NAMM Letter of Support for S.2872

• 5/7/21: U.S. Dept. of Labor Withdraws Independent Contractor Rule

The U.S. Department of Labor officially withdrew the “Independent Contractor Rule” effective May 6, 2001. The rule, adopted by the prior administration, would have made it easier for businesses to classify workers as independent contractors rather than employees.

Under the Fair Labor Standards Act (FSLA), covered employers are required to pay employees at least the federal minimum wage and overtime compensation. These FLSA requirements do not apply to independent contractors. Independent contractors, however, typically have more flexibility to set their own schedules and can work for more than one company.

According to the Department’s press statement, it is withdrawing the rule for several reasons, including:

• The independent contractor rule was in tension with the FLSA’s text and purpose, as well as relevant judicial precedent.
• The rule’s prioritization of two “core factors” for determining employee status under the FLSA would have undermined the longstanding balancing approach of the economic realities test and court decisions requiring a review of the totality of the circumstances related to the employment relationship.
• The rule would have narrowed the facts and considerations comprising the analysis of whether a worker is an employee or an independent contractor, resulting in workers losing FLSA protections.

For the near term, it appears unlikely that the Department of Labor will re-examine or issue rules that could ease criteria for classifying workers as independent contractors.

The official notice of the rule’s withdrawal is published in the Federal Register.

Update on Proposition 65 Short-form Safe Harbor Warning Amendments: OEHHA Delay to Require Restart of Proposed Rulemaking 

On May 20, 2022, NAMM received a notification from California’s Office of Environmental Health Hazard Assessment (OEHHA) stating that OEHHA is unable to complete the pending rulemaking within the allotted time to amend sections of the California Code of Regulations related to the short-form safe harbor warnings under Proposition 65 (Register No. Z2020-1229-01) (Title 27, sections 25601, 25602, 25603, and 25607.2).  

As a result, OEHHA must restart the rulemaking process on the short-form amendments with a re-issued regulatory proposal.  OEHHA plans to issue the new rulemaking for public input in the next several weeks. The agency noted that the new rulemaking will likely incorporate some recommendations it received from stakeholders about the previous proposal.  

These are welcome developments as the delay signals that OEHHA recognizes the need to revisit the proposal in response to significant issues raised by the California business community.  NAMM, as a member of a coalition that submitted comments during the rulemaking process, urged OEHHA to withdraw the proposal or, absent a withdrawal, to substantially revise the amendments. NAMM and dozens of stakeholders expressed concerns about the imposition of new and burdensome labeling requirements – especially when businesses continue to struggle with supply chain issues and recovery from the pandemic.  

For more information, please visit the short-form rulemaking webpage.

Formaldehyde Emissions and CA Prop 65 Information and Resources

CA Prop 65

In 1986, California voters approved Proposition 65, an initiative to address their growing concerns about exposure to toxic chemicals. The law requires California to publish a list of chemicals known to cause cancer or reproductive toxicity, and for businesses with ten or more employees to provide warnings when they knowingly and intentionally cause significant exposures to listed chemicals. Penalties for violating Proposition 65 by failing to provide warnings can be as high as $2,500 per violation per day. Prop 65 also provides for enforcement "in the public interest" by private attorneys, who typically send a required 60-day notice to prospective violators and then seek to reach settlement agreements which usually include a monetary payment (shared by the lawyers and the state) and a correction of alleged labeling violations.

Formaldehyde Emissions

In 2013, the Environmental Protection Agency (EPA) issued a proposed rule that would regulate the amount of formaldehyde emissions from composite wood, such as hardwood plywood, medium-density fiberboard, and particleboard. Additionally, the proposed rule would regulate laminated wood products, impose more precise labeling on covered products and require compliance information to be passed down from manufacturer/importer through the distribution chain. 

On December 12, 2016, EPA published a final rule to reduce exposure to formaldehyde emissions from certain wood products produced domestically or imported into the United States. The rule regulates laminated wood products, imposes more precise labeling on covered products and requires compliance information to be passed down from manufacturer/importer through the distribution chain. Any musical instrument made of composite or laminate wood is impacted by the new regulations. In July of 2018, the EPA suppressed a draft health assessment on formaldehyde, suggesting that current regulations protecting the public from overexposure to formaldehyde might not be stringent enough to prevent increased risks of developing leukemia, nose and throat cancer, and other illnesses. NAMM will continue to monitor developments. 

CARB2 - California Air Resources Board’s (CARB) Phase 2. CARB2 stands for the California Air Resources Board’s (CARB) Phase 2, a stringent standard for formaldehyde emissions from composite wood products, including hardwood plywood (HWPW), particleboard (PB), and medium-density fiberboard (MDF). Composite wood products are panels made from pieces, chips, particles, or fibers of wood bonded together with a resin. In the production of laminate flooring, the core board is made up of medium to high-density fiberboard. This is where the emissions concerns come from.

Note: The formaldehyde emission standards for composite wood products under the EPA final rule, and set by Congress, are identical to the California “Phase 2” formaldehyde emission standards (CARB2). EPA worked to align the other requirements of the federal rule with the California requirements. However, there are a few differences. Unlike the California requirements, among other things, the EPA rule:

• Requires records be kept for three years versus two years;
• Requires importers to provide import certification under TSCA beginning March 22, 2019;
• Requires manufacturers to disclose upon request formaldehyde testing results to their direct purchasers; and
• Requires laminated products not exempted from the definition of hardwood plywood to meet the hardwood plywood formaldehyde emissions standard beginning March 22, 2024.

Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) Regulations. Manufacturers exporting musical instruments to the European Union (EU), or operating within the EU, should be aware of the REACH regulation. Effective June 1, 2007, the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) reg (EC1907/2006) is regarded as the strictest in the world pertaining to chemicals (e.g., glues, resins, etc.) used in the manufacture of a wide variety of products. Learn more. 

Resources:

Understanding REACH Regulations

Compliance Guide for Formaldehyde Emission Standards for Composite Wood for Fabricators and Laminated Product Producers

Formaldehyde Updates from the EPA

Manufacturer Frequently Asked Questions

Formaldehyde Emission Standards for Composite Wood Products

Rule resources and guidance materials

EPA Fact Sheet

EPA FAQ and Regulations re Curved Plywood

Webinars for small entity compliance

Find an EPA-recognized Accreditation Body

Find an EPA-recognized Third-Party Certifier

NAMM and global coalition achieved revisions to CITES wood listing (2019 Conference of the Parties) and has established a forum concerning sustainability in the music industry.

CITES, Traveling with Musical Instruments, LAWGS/LACEY Act and Ivory Ban Information and Resources

Latest Updates: 

July 6, 2022: CITES agenda proposed; travel and trade of musical instruments containing protected species may be affected. 
The agenda for November's meeting of the Convention on International Trade in Endangered Species (CITES) is almost complete and NAMM and its music industry partners are studying the potential impact of proposals to protect several species of wood.  Among the species being studied is pterocarpus, which is used for marimba and xylophone keys, and khaya, used in guitars.

Especially troublesome is a proposal by Brazil to upgrade pernambuco to CITES Appendix I, which would place severe international shipping restrictions on this species, which is widely used to make violin and other string instrument bows.The U.S. Fish and Wildlife Service is expected to publish a formal notice seeking public comment on the position FWS should take on these proposals and NAMM will be meeting with FWS officials to get feedback on the government's stance. NAMM will also urge FWS and the CITES participants to streamline the procedures for obtaining and using the musical instrument certificate.  Similar to a passport, the certificate is designed to make it easier for musicians and orchestras to travel internationally with their instruments. NAMM will continue to monitor this issue closely and will post updates here as they are available. 

March 22, 2022: Music Products Industry Represented at CITES Standing Committee Meeting

Following two years of online meetings throughout the pandemic, representatives from more than 60 countries met in-person in Lyon, France March 7 through 11, as the CITES Standing Committee considered a full agenda of policy recommendations.

NAMM continues to represent global music interests in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), as international governments arrive at a consensus on new policies that may impact travel and trade involving musical instruments containing species protected under the treaty. NAMM supported the participation of Heather Noonan of the League of American Orchestras who is leading a collaboration of instrument manufacturers and music organizations.  Music stakeholders advanced policy requests including the Musical Instrument Certificate, and ongoing special considerations for tonewood in musical instruments. These talks are a precursor to the 19th Conference of the Parties (CoP19), which will take place in Panama City, Panama November 14 through 25, 2022. CITES member parties are currently drafting proposals for resolutions and new species listing requests for consideration at CoP19, which will be announced by mid-June, after which each of the 183 parties to the Convention will develop their position on the new proposals. NAMM and its international collaborators in the musical instrument industry will continue to collaborate to advance policy solutions that support both conservation efforts and travel and trade with musical instruments. NAMM will continue to monitor this issue closely and will post updates here as they are available.

February 14, 2022: Online tool launched to facilitate travel preparations with musical instruments containing CITES-protected species

On 2/8/2022 Pearle Live Performance Europe and the International Federation of Musicians (FIM) announced the launch of their joint website Traveling with musical instruments in compliance with CITES rules. The site includes questions to help musicians and music ensembles, prepare their touring activities with musical instruments containing CITES-protected species. The objective is to help users determine whether a CITES Musical Instrument Certificate (MIC) is required when crossing international borders with their musical instruments for non-commercial purposes, such as concerts and other live performance events, competitions, teaching, and recording. Musicians, orchestras, and other music groups can also identify steps to be taken before their departure. Read the full release here. 

September 1, 2021: Reminder: New October 1st Lacey Act Import Requirement Includes Drums, Clarinets, Flutes, and Piccolos

As reported this Summer, the U.S. Dept. of Agriculture, Animal and Plant Health Inspection Service (APHIS) announced that implementation for Phase VI of the enforcement schedule will start on October 1, 2021. Phase VI mandates that companies importing musical instruments containing wood - including drums, clarinets, flutes, and piccolos - will be required to file a new import declaration form.  Learn how to comply with this new import requirement by viewing our short webinar.

Since 2010, the import declaration requirement has been applicable to pianos (including player pianos, harpsichords, and other stringed keyboard instruments) defined in Harmonized Tariff Schedule 9201 and "other stringed instruments" (including acoustic guitars, violins, and harps) in HTS 9202. Beginning on October 1, 2021, the import declaration requirement expands to imported products falling within the following HTS codes:

• 9205.90.20.00 -- wind musical instruments, bagpipes
• 9205.90.40.20 -- clarinets
• 9205.90.40.60 -- flutes and piccolos
• 9205.90.40.80 -- other woodwind instruments
• 9206.00.20.00 -- drums
• 9207.90.00.40 -- fretted stringed instruments, the sound of which is produced or must be amplified electrically.
• 9209.92 -- parts and accessories for musical instruments (e.g., instrument stands, tuning pins, bows)
• 9209.92.80.80 -- parts and accessories for musical instruments, other
• 9209.99.20.00 -- parts and accessories for bagpipes
• 9209.99.40.40 -- parts and accessories for other woodwind instruments
• 9209.99.80.00 -- parts and accessories for musical instruments, other

The import declaration form must be filed electronically or in paper format by the importer although as a practical matter the information required by the form must be obtained from the product manufacturer or exporter.

The European musical instrument organization CSFI has prepared a guidance document for European manufacturers and exporters, but it can also be helpful to U.S. importers. 

July 6, 2021: Lacey Import Declaration Implementation Date Extended to October 1, 2021.

On Friday, July 2nd the U.S. Dept. of Agriculture, Animal and Plant Health Inspection Service (APHIS) announced a change in the date of implementation for Phase VI of the enforcement schedule, from July 1, 2021, to October 1, 2021. Read the Federal Register posting.

Phase VI mandates that companies importing musical instruments containing wood - including drums, clarinets, flutes, and piccolos - will be required to file a new import declaration form.

To learn the steps you must follow to comply with this new import requirement, View our short webinar..

Since early June, NAMM has been in communication with APHIS administrators, urging an extension of the July 1 deadline, allowing the industry more time to comply. NAMM will continue to monitor this issue closely and will post updates here as they are available.

Traveling with Musical Instruments

During the 16th Meeting of the Conference of the Parties in 2013, the United States proposed a “passport” program to ease the burden on musicians traveling with musical instruments made from CITES-listed species. The proposal was adopted and as a result musical instruments with CITES-listed species may travel through a U.S. Fish and Wildlife Service (FWS) designated port with proper documentation. Individuals traveling abroad with musical instruments that contain Brazilian rosewood, tortoiseshell, elephant ivory, or any other parts or products protected under CITES or the Endangered Species Act (ESA) must obtain special documentation before traveling.

For more information on the permit process, documentation requirements, and how to file, please visit the U.S. Fish and Wildlife Service Musical Instruments website.

Lacey Act

The Lacey Act is a federal statute that regulates the import, export and commerce of protected wildlife, plant species and products. The law covers all fish and wildlife and their parts or products, plants listed on the CITES Appendices as well as those protected by state law. In 2008, Congress amended the law to include new provisions covering plants and plant materials.  Under the revised law and subsequent regulations,  all shipments of imported pianos and other stringed instruments (e.g., guitars and violins) must be accompanied by a declaration listing that includes, among other things, the scientific name (genus and species) of all wood and other plant material used in the imported product, as well as the country of origin of the wood. Specifically, any imported product subject to Harmonized Tariff Schedule Chapters 9201 and 9202. For more information on the Lacey Act and how it relates to injurious wildlife, visit the Office of Law Enforcement.

Ivory Ban

The U.S. Fish and Wildlife Service (FWS) has been tasked with developing specific rules and regulations for oversight and enforcement. Along with other music and musician organizations, NAMM is actively  advocating for the development of compliance rules that assure fair and legal trade of instruments that contain ivory and that regulations are congruent with exiting requirements (CITES, etc.). The release of proposed rules and a public comment period is expected in the coming months. NAMM continues to be active in advocacy and oversight of rule development process and will advise NAMM Members of the public comment period.  NAMM Members seeking further clarification on the ivory ban can visit the U.S. Department of Fish and Wildlife’s FAQs.

Updates and Resources: