Congress Gives Importers Short Window to Preserve Customs Savings through Preference Programs and Duty Suspensions

November 16, 2009

Despite all the activity on Capitol Hill surrounding the health care debate, international trade has continued to be an active issue in Congress. The Committee on Ways and Means recently held a hearing on the status U.S. trade preference programs and the Senate Finance Committee is busy putting together a miscellaneous tariff bill (MTB).

Trade preference programs and duty suspensions incorporated in the MTB represent important duty-saving opportunities for U.S. importers. Given that two of the largest preference programs and that existing duty suspensions are set to expire at the end of the year, importers should act quickly to preserve the duty-free treatment of their goods.

The Senate Finance Committee has set a December 4^th deadline for comments on the hundreds of duty suspension/reduction bills introduced in recent weeks for incorporation into the final MTB. Existing suspensions and reductions are set to expire on December 31, 2009, and Finance leaders are hopeful they can get a bill passed by then to prevent the imposition of unnecessary duties. Nevertheless, interested parties should submit comments to assure that their bills are included in the final package passed by Congress.

Reform of trade preference reform is also moving ahead in the House and Senate. As mentioned above, Ways and Means completed its hearing on November 17^th, but is allowing interested parties to submit written comments on what reform should be undertaken until close of business on December 1^st. Likewise, the Senate Finance Committee was planning on holding hearing to examine options for trade preference reform on November 19^th, but it abruptly cancelled. It is likely that the Committee will reschedule the hearing and provide an open comment period sometime around the end of November.

For more information on how to submit comments on any of the above, please contact a Barnes/Richardson attorney.