Tariff Relief for Manufacturers Likely on the Way

The U.S. House easily passed legislation last week to help businesses seeking tariff relief. The bill is designed to comply with the congressional ban on earmarks.

The bipartisan Miscellaneous Tariff Bill legislation overhauls the process for reducing or eliminating tariffs on imported inputs and products not available in the U.S. or in short supply.

The measure sailed through the House on a 415-2 vote. It now heads to the Senate, where it is expected to pass.

House Ways and Means Committee Chairman Kevin Brady (R-Texas) called the measure a “tax break” bill that will deliver much-needed relief to manufacturers who have faced higher costs on their products.

Since the last tariff bill expired in 2012, U.S. businesses have paid full tariffs on imported products that they need for manufacturing. The National Association of Manufacturers estimates that the absence of a tariff policy has cost manufacturers an additional $748 million a year in taxes.

Under the legislation, petitions for tariff relief would go to the International Trade Commission. The agency would then analyze the requests and issue public reports to Congress with recommendations.

The Ways and Means Committee could then draft a proposal for tariff relief based on the ITC recommendations. Lawmakers could not add new products to the proposal.

The committee then would certify the proposal as earmark-free so it could be considered under House rules.

Previously, individual members of Congress sought tariff relief on behalf of companies, which conservatives and good government groups decried as an abuse of earmarks.

Source: The Hill S