The inclusion of the “American Manufacturing Competitiveness Act of 2015” as Title VIII of the Senate-passed Trade Facilitation and Trade Enforcement Act (H.R. 644), will establish a new miscellaneous tariff bill (MTB) process to eliminate unnecessary taxes on imported inputs and products not available domestically.
Scores of U.S. supply chain stakeholders - including the National Association of Manufacturers - applaud the bill.
To boost the competitiveness of our industries and correct longstanding distortions in the U.S. tariff code, NAM strongly urges legislators to include provisions in the conference report to H.R. 644 that will provide for a transparent, objective, predictable and regularized process for Congress to consider and enact MTBs.
NAM and other associations have long supported bipartisan and bicameral efforts to pass MTBs, which correct on a temporary basis distortions in the U.S. tariff code by eliminating duties on imported products for which there is no or insufficient domestic production and availability.
While Congress had effectively addressed these distortions through the enactment of MTBs with strong bipartisan support for three decades, Congress has not renewed MTBs since the U.S. Manufacturing Enhancement Act in 2010 expired at the end of 2012. Since then, businesses throughout the country have faced an annual $748 million tax increase on manufacturing and the U.S. economy has suffered a $1.875 billion economic loss, according to an analysis by NAM.
As a result, small, medium and large manufacturers in industries ranging from agriculture and electronics to textiles, chemicals and beyond have seen their costs go up for inputs not produced in the United States, undermining American competitiveness and the ability of these companies to retain and create manufacturing jobs in the United States.
Title VIII of the Senate-passed version of H.R. 644 would allow each chamber to set up processes consistent with their rules, and would not require the introduction of legislation by Members of Congress. It would require an intensive review of domestic availability by the U.S. International Trade Commission and input from the Executive Branch before Congress undertakes its role in assembling and considering a final MTB package.
Most U.S. supply chain managers would agree that action on a new MTB process is long overdue and the time to move forward with a new process is now.
SC
MR
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