Legislation moves forward on duty reduction measures
A bill to establish a new Miscellaneous Tariff Bill (MTB) process in order to provide tax relief on imported inputs no longer made in the US has been unanimously approved by the House Ways and Means Committee.
The American Manufacturing Competitiveness Act of 2016 legislation was approved last week and sets forward a path for a new Miscellaneous Tariff Bill (MTB), which would provide temporary duty suspensions and reductions for raw materials and intermediate products that are not available in the United States.
The last MTB bill expired in 2012, and the new legislation proposes a revised process for developing and enacting the miscellaneous trade bills that make up the MTB.
However, instead of the bills being introduced by members of Congress and their duty reduction measures compiled into one package – known as the MTB – under the new legislation the process will begin through petitions made by US businesses to the International Trade Commission (ITC).
If enacted, the measure would direct the ITC to begin a new MTB no later than 15 October 2016, and 15 October 2019, thereby ensuring a process for the next six years.
The legislation is expected to provide greater transparency in the MTB process while moving forward on tariff reduction.
The National Association of Manufacturers estimates that US companies have had to pay $748m in additional duties annually since the last MTB expired on 31 December 2012.
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