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M A G A Z I N E
July 2004
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Is the Berry Amendment Still Relevant?

By Jackie Rosselli


It’s no secret that United States uniform companies are producing less and less of their products at home. Indeed, as the country became flooded with lessexpensive imports over the past two decades, many factories relocated off shore in an effort to compete and to avoid certain extinction. And the closing of businesses means the loss of jobs. In the past three years alone, an additional 2.6 million manufacturing jobs have been lost, with no reversal in sight. As the United States economy becomes more global and continues its shift toward services and high tech, the term “Made in America” runs the risk of becoming a quaint phrase from the past, a relic of a bygone era much the way “golly gee” and “groovey” before it.

In light of this, UniformMarket began to question the relevancy of measures designed to buttress and encourage manufacturing in the United States. Of particular interest was the Berry Amendment, a law that in part applies to the uniform and apparel industries. Does it keep jobs here? Can it be enforced? Does it create opportunity or are there too many loopholes for abuse? Does the law even matter anymore?

The answers are a resounding maybe. It depends to whom you’re talking and individual perspectives. But before going into details, a primer. Originally enacted in 1941, the Berry Amendment was effectively reiterated as a part of each subsequent defense appropriations act until it was codified as 10 U.S.C. 2533a in 2002 by section 832 of Public Law 107-107. Regarding purchases of textile and apparel items, the Amendment requires that funds made available to the Department of Defense (DoD) may not be used to purchase clothing; tents, tarpaulins, or covers; cotton and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated synthetic fabric, canvas products, or wool (whether in the form of fiber or yarn) or items of individual equipment manufactured from or containing such fibers, yarns, fabrics, or materials unless it is grown, reprocessed, reused, or produced in the United States.

In other words, covered end items, components, and materials purchased with funds made available to DoD must be produced wholly in the United States. The law is implemented through the Defense Federal Acquisition Regulation Supplement (DFARS) at Subpart 225.7002. The Berry Amendment contains several exceptions, including acquisitions that are at or below a certain threshold and those items purchased outside the United States in support of combat operations.

In addition, waivers to Berry Amendment restrictions on foreign purchases are permitted if the Secretary concerned determines that the items in question cannot be acquired when needed in a satisfactory quality and sufficient quantity at U.S. market prices. Waivers are uncommon, with only 36 textile and apparel related exceptions since 1998.

But when they do occur, they are not without controversy. The flap several years back over the procurement of a black beret illustrates some of the pitfalls associated with waivers of Berry Amendment restrictions. To mark the army’s anniversary in the new millenium, its Chief of Staff required that all soldiers be issued new berets by June 14, 2001. With only eight months to fulfill the requirement and only one known U.S. beret manufacturer, the procuring agency obtained a Berry Amendment waiver so that some of the items could be obtained from suppliers outside the United States. One of the foreign manufacturers had a factory in China, and many of the berets were being made there. Moreover, prices for the overseas berets were 14% higher than that of the American supplier. And in the end, the June 14th deadline became impossible to meet, raising questions as to the urgency in the first place. Hearings were held, with Congress questioning the propriety of the Berry Amendment waiver, and many in the industry wondering aloud if the contracts were politically motivated.



And there are other suspicions surrounding Berry. Some in the uniform industry suspect corners being cut and down right cheating going on when it comes to determining what is made where. “There just aren’t enough inspectors out there or resources available to ensure that every item is made in the U.S.,” says Andrew Nagle of AB Emblem. “There are too many ways around Berry, too many subcontractors that can be overlooked. I don’t mind having the amendment, but it should be enforced. Everybody should be on a level playing field.”

Others aren’t so sure. “There is no such thing as a level playing field, and there are special preferences and exceptions throughout this industry,” notes Michael Spiewak of I. Spiewak & Sons. “Could there be cheating going on? Sure, but I doubt it. There are inspections at the factory level and prior to shipping to the factory.” Indeed, much of the doubt surrounding Berry is anecdotal. Hard evidence of abuse is difficult to find, but when it has existed and was reported, the DoD took appropriate action.

But is Berry still relevant, given manufacturing’s gloomy outlook? Although ambivalent, Spiewak says there’s a good reason to keep Berry. “Without it, there would be zero percent domestic manufacturing, and no product development.”

With no domestic manufacturing, dependence on foreign sources for vital military products could lead to quality problems, product delays, and even denial of vital items from adversarial suppliers who may not agree with U.S. security objectives. According to the American Manufacturing Trade Action Coalition, there are numerous examples of this. During the Vietnam War Sony withheld TV cameras used to guide tactical missiles. And in 1983, Japanese Socialists blocked the sale of ceramic packaging used in U.S. cruise missiles to protest Reagan Administration policies. The Berry Amendment, says the coalition and others, ensures military readiness through an active defense industrial base and provides a reliable domestic source for goods during war times.

The country’s new-found patriotism also bodes well for Berry. “Since the terrorist attacks and the Iraq War, I’ve seen a slight reversal away from imports and more requests for made in the U.S. products,” says Daniel Broome of S. Broome Uniform Accessories. And while the company imports more than it used to, the New York based business has no plans to discontinue production in the states.

What does the future hold for Berry? Some predict that the shrinking manufacturing base will render it irrelevant within the next five years. Others vow to fight for Berry, because it protects what all Americans hold dear – jobs. “Without the amendment, I’d probably close my factory too,” notes Spiewak.

 


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