Industry News

Senate Issues Call for Duty Suspensions, Trade Law Corrections

October 2, 2009


The Senate Finance Committee has issued a call for senators to introduce duty suspension and reduction legislation to be included in a Miscellaneous Tariff BIll (MTB).  With lawmakers aiming to complete an MTB by the end of this year, importers must act now to ensure that duty breaks for their goods are included in a final bill.

The MTB presents a unique opportunity for U.S. importers to receive duty suspensions or reductions for up to three years.  There is no limitation on the number of types of products that can be included in an MTB.  The last MTB granted duty suspensions to nearly 700 products, including chemicals, yarns, fabrics, food and finished consumer products.  The MTB may also include amendments to customs laws and technical modifications to trade preference programs.

The time frame for requesting duty suspensions is short.  Senators only have until October 30, 2009 to submit bills to the Finance Committee for new and expiring duty suspensions, and those bills will then have to undergo an expedited vetting process by relevant government agencies to gauge domestic industry opposition and to analyze costs.  Importers should act now to review their product line for likely targets that could be eligible for significant future duty savings.

Duty suspension already in place under the previous MTB are scheduled to expire on December 31, 2009.  Consequently, importers interested in extending their current suspensions must submit new bills to Congress to be vetted again.

In light of these time constraints, it is crucial that interested companies begin working with Congress immediately.  Importers interested in seeking tariff reductions should contact our Washington, DC office at (202) 483-0070 as soon as possible.