American Coatings Association

ACA Urges Congress to Pass Miscellaneous Tariff Bill


Earlier this month, ACA urged Congress to expedite passage of the “Miscellaneous Tariff Bill Act of 2017” (H.R. 4318 and S. 2108) to temporarily eliminate out-of-date and distortive taxes on imported products not manufactured or available domestically.

ACA signed onto a letter of support organized by the National Association of Manufacturers (NAM), which was signed by some 200 industry associations and organizations and sent to members of Congress.

The Miscellaneous Tariff Bill (MTB) plays an important role in the operations of domestic manufacturers as it corrects, on a temporary basis, historical distortions in the U.S. tariff code by eliminating border tariffs on imported products for which there is no or insufficient domestic production and availability. ACA believes such distortions undermine the competitiveness of manufacturers in the United States by imposing unnecessary costs and, in some cases, imposing a higher cost on manufacturers’ inputs than the competing foreign imported finished product.

While Congress had effectively addressed such distortions through the enactment of MTB legislation with strong bipartisan support for three decades, Congress has not passed an MTB since the U.S. Manufacturing Enhancement Act in 2010 expired at the end of 2012. Since 2012, businesses have paid billions of dollars of tariffs on products not even made in the United States, to the detriment of American jobs and American competitiveness.

“Congress now can address this self-imposed tax on U.S. competitiveness,” the letter stated. “Through a transparent and thorough process created by the American Manufacturing Competitiveness Act of 2016 (AMCA), which passed Congress with near unanimous bipartisan support, the U.S. International Trade Commission (ITC) scrutinized thousands of petitions for duty-relief and received input from across the manufacturing sector and from the U.S. Department of Commerce and U.S. Customs and Border Protection to determine eligibility under the AMCA requirements.”

The Miscellaneous Tariff Bill Act of 2017 includes nearly 1,700 petitions that the ITC reported to Congress in August were eligible for duty-relief as products not produced or available in the United States.

“Our organizations strongly support passage of the Miscellaneous Tariff Bill Act of 2017, which would bolster manufacturers and other businesses in the United States, especially small- and medium-sized manufacturers, in industries ranging from chemicals, agriculture, textiles and footwear to electrical equipment, machinery and sporting equipment.”

According to analyses by the National Association of Manufacturers, this legislation would eliminate import tariffs of more than $1.1 billion over the next three years and boost U.S. manufacturing output by more than $3.1 billion.

Contact ACA’s Allen Irish for more information.