Reviewing the MTB, The Reality of its Expiration

The Miscellaneous Tariff Bill (MTB) allows companies importing products into the United States to petition the U.S. International Trade Commission (USITC) for the removal or reduction of the applicable tariffs. The USITC will consider objections of domestic producers for the product in question and consult the Department of Commerce before arriving at their final decision.

The MTB gives the U.S. the ability to compete globally, supports a strong supply chain of critical materials, and makes positive contributions towards the economy. It directly affects more than 3,000 imports that are not available in the U.S., mostly including chemicals and food items. In most cases, Congress is responsible for determining MTB eligibility based on the USITC report, which is curated after evaluating submissions from the trade.

While the 117th Congress had three proposals for the renewal of the MTB, there are no current proposals of legislation for renewal in the present 118th Congress.

Bills included in the 117th Congress promoting the MTB were as follows:

• H.R. 4521 (United States Innovation and Competition Act)
• H.R. 4037 (Trade Preferences and American Manufacturing Competitiveness Act)
• H.R. 3975 (Generalized System Preferences and Miscellaneous Trade Act Modernization Act)

All bills failed to become law. So, what is the reality of MTB’s expiration?

To put it simply, there is a high cost of inaction when it comes to the MTB. Since its end in December 2020, manufacturers and other businesses have experienced tariffs that have accumulated to more than $1 billion – which equates to around $1.3 million per day – for goods they could not source in the United States. With these goods in high demand, as most of them are raw materials, companies are left with no choice but to succumb to the extreme rates.

The cost of inaction directly affects prices for consumers; as well as manufacturers’ ability to keep needed staffing levels. U.S. manufacturers are left with unfortunate decisions to make, most of which are detrimental to both personal and national success. Threats of transferring operations offshore to obtain large cost savings is not out of the picture for many American manufacturers.

While allowing for ad hoc tariff exemptions to products, particularly those that do not have domestically produced competition, U.S. businesses save on their manufacturing costs thereby making their goods more affordable to American consumers; however, this cannot be reality in some cases while the MTB remains expired.

While the question of renewal of the MTB remains tabled, numerous companies and associations have sent letters to Congress’ Ways and Means Committee, as they hold initial jurisdiction over legislation to amend the U.S. tariff schedule and produce corrections to trade legislation, urging the Committee to consider the renewal of the MTB.

For additional information regarding import tariffs and how to save on such imports, please contact Allyn International at sales@allynintl.com

Contributor: Abigail Hiott

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About Allyn International

Allyn International provides high quality, customer-centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com