Senate to Call for New Duty Suspension Bills Soon, Lobbyist Press for Short-Term Extension of Existing Benefits

September 27, 2009

According to Congressional sources, the Senate Finance Committee may soon call for members to introduce bills seeking to lower or suspend tariffs on manufacturing and production inputs. These bills will later be consolidated into a miscellaneous tariff bill (MTB). The consolidated bill will then be reconciled with the draft MTB bill that was developed in the House during the last session of Congress.

The Committee has been holding off on calling for new bills due to protests from Ranking Member Charles Grassley (R-IA), who wants to see new lobbying disclosures implemented for the MTB process. The Senate only recently implemented new rules to Grassley’s satisfaction, and similar rules are expected to be implemented in the House shortly.

However, given the relative short timeframe before benefits under the currently enforced MTB expire at the end of the year, many businesses are calling for a one-year extension of existing benefits. This is a likely alternative to getting a completely new MTB passed this year given the lengthy vetting process of duty suspension bills, which at a minimum must be reviewed by the U.S. International Trade Commission.

Nonetheless, the Senate is likely to continue to pursue a new MTB to provide manufacturers with some additional relief during the recession. Meanwhile, the House will not call for new bills and will instead take up the draft bill developed during the previous Congress. As a result, the Senate will be the only process available for importers to seek new duty suspension bills.