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Fragrance Creators Prevent $91.1M in EU Tariffs on Essential Oils

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Fragrance Creators will continue advocating for the removal of tariff-related cost increases.

Fragrance Creators Association has announced it preserved an estimated $91.1 million in savings for the fragrance value chain. This marks the third time Fragrance Creators’ advocacy has protected EU essential oil imports since 2019.

Previously: Fragrance Creators Association Weighs-in on Tariffs

It is a significant outcome for the fragrance industry, American jobs, and the economy—and one that prevents unnecessary cost increases for millions of consumers who use and enjoy scented products every day.

On August 12, 2020, the United States Trade Representative (USTR) released the revised Tariff List for the EU Section 301 Boeing/Airbus Investigation, and essential oils were not included. This announcement follows the recommendation made in Fragrance Creators’ July 26, 2020, comments and through its direct communication with USTR and the Congressional Fragrance Caucus. The $91.1 million tariff savings from October 2019, which was previously affirmed in February 2020, remains.

Fragrance Creators took early action on the proposed tariffs, directly engaging with USTR, the Department of Commerce and members of Congress on behalf of the fragrance industry and the public.

In addition to submitting written comments and taking part in meetings with officials and legislators, Fragrance Creators board members, Al Bauer of Citrus and Allied Essences Ltd. and Erica Lermond of The Lermond Company, LLC, along with Fragrance Creators president and CEO Farah K. Ahmed, testified before USTR in May 2019.

Ahmed emphasized Fragrance Creators’ support of the administration’s goal of promoting U.S. manufacturing while illustrating why tariffs on essential oils would be counterproductive and would negatively impact American businesses and consumers.

Fragrance Creators will continue to engage with key administration officials and the Congressional Fragrance Caucus to advocate for the removal of tariff-related cost increases that compromise the competitiveness of American manufacturers, stifle job creation and jeopardize the growth of the U.S. economy.

“We acknowledge the administration, including the Department of Commerce and USTR, for continuing to share their priorities with us, including their approach toward job creation and growing the U.S. economy,” Ahmed said. “Through trusted, transparent and meaningful dialogue, we were able to work together to find common ground and, ultimately, ensure the needs of the fragrance value chain and the American public were prioritized.”

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