House Ways & Means Introduces New Miscellaneous Tariff Bill (MTB)

On May 14, House Ways & Means Trade Subcommittee Chair Adrian Smith (R-NE) announced the introduction of the Miscellaneous Tariff Reform Act seeking to renew the 2018 Miscellaneous Tariff Bill (MTB) – a manufacturing-critical law that temporarily removed or reduced tariffs on products not available in the U.S. That law expired in December 2020.

According to Chair Smith’s press release, the MTB Reform Act would:

• Align MTB exclusions with our trade policy toward China, excluding products subject to Section 301 tariffs while allowing American manufacturers to continue accessing parts which had Section 301 exclusions as of December 31, 2020

• Approve duty-free treatment of products recommended under the 2019 application process created by the American Manufacturing Competitiveness Act through December 31, 2025, in order to support domestic manufacturers who participated in that process in a good faith manner.

• Provide retroactive duty relief on those items, back to January 1, 2021.

• Make technical changes to align exemptions with the most recent revision of the Harmonized Tariff Schedule.

Reauthorize the International Trade Commission (ITC)-based process for future Miscellaneous Tariff Bills, creating new opportunities for American manufacturers to apply for domestically unavailable inputs in 2025 and 2028.

Smith says the legislation has been supported by numerous stakeholder groups, including the National Association of Manufacturers (NAM) the American Chemistry Council (ACC), and CropLife America (CLA).

“Historically, the MTB has always had bipartisan support, and we thank House Ways and Means Trade Subcommittee Chairman Adrian Smith for his leadership and efforts to introduce MTB legislation,” said NAM Managing Vice President of Policy Chris Netram in a statement cited by Chairman Smith’s office. “We urge the House to act quickly so that we can get one step closer to getting this critical legislation to President Biden’s desk.”

In the nearly three years that they have been operating without an MTB, manufacturers and other businesses in the U.S. have paid more than $1.3 million a day to get inputs they cannot find in the U.S., according to a NAM analysis. They emphasize that passing the MTB through 2026 and beyond will boost U.S. competitiveness and increase our GDP.

Constitution Partners continues to be on top of this issue as it is important to several of our industry groups. Please click here to view the entire bill text.