Thursday, October 10, 2019 12:00 PM - 1:00 PM

The second round of the MTB process begins on October 11th of this year, businesses will have a total of 60 days to propose tariff suspensions on particular imports. The petitions are submitted to the US International Trade Commission for review. The successful submissions are combined into a single piece of legislation that Congress aims to pass next year.

MTB duty savings are anticipated to eliminate import taxes in excess of $700 million annually and reduce tariffs on well over 1000 imported products, thereby cutting production costs in the United States and enhancing the competitiveness of U.S. manufacturers.

Please join Kelley Drye International Trade attorney Jennifer McCadney and senior International Trade advisor Gregory Mastel for a 1-hour webinar that will cover the new petition process, from filing to implementation, as well as how to identify imports that may qualify for temporary duty reduction.

To register for this webinar, please click here.

The bill is the first product of a new process established through the American Manufacturing Competitiveness Act of 2016, which codified elements of the previous Congressional-led process. Among other things, the Act also tasked the non-partisan U.S. International Trade Commission with reviewing petitions for consistency against statutory criteria, coordinating an inter-agency process, and recommending a legislative package for congressional consideration. According to a House Ways and Means Committee statement, when enacted in law, the MTB Act is expected to lower the cost of imports, create more jobs, increase wages for American workers, boost America’s competitiveness, and ultimately decrease prices for consumers.

All eyes are now on the Senate, where Senate Finance Committee Chairman Hatch and Ranking Member Wyden have voiced previous support to quickly move legislation, as staff continue to consider procedural strategies for moving the bill, either as a stand-alone measure or as part of a larger package. There have been previous reports of a preference to move MTB in tandem with the expired Generalized System of Preferences program; however the House-passed bill included only the MTB. Many have pointed to the budget spending package as a potential vehicle for both items – despite several attempts to enact more than stop-gap measures on that package – however, any reports including MTB in the mix on active legislative is a positive sign. Though the final play has not yet crystalized, with several options at hand and strong support from both industry and the House, enactment is very much within reach when the Senate is ready to step to the plate.

The new MTB process and prospect for a bill received bipartisan support from members attending the hearing, where they discussed the potential economic benefits to U.S. manufacturers and consumers of providing temporary tariff relief on imported products not produced or available in the United States. Trade Subcommittee Chairman David Reichert (R-WA) stated that passing an MTB was a priority this year, and suggested the bill may be included in a trade package that also renews the Generalized System of Preferences program for developing countries, which expires on December 31.

If successful, this will be the first omnibus duty relief bill to pass Congress in seven years. The National Association for Manufacturers estimates beneficiary companies have faced an estimated annual $748 million in duty related costs since the expiration of the last MTB on December 31, 2012, which has also resulted in an overall $1.8 billion loss to the U.S. economy.