Tariff relief; inputs not made in United States | KPMG | US
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Proposal for tariff relief; inputs not made in United States

Tariff relief; inputs not made in United States

The bipartisan leadership of the U.S. House Ways and Means Committee and of the U.S. Senate Finance Committee today announced the introduction of a bill that would implement certain recommendations made to Congress by the U.S. International Trade Commission (ITC).


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As explained in a Ways and Means release, the bill—Miscellaneous Tariff Bill Act of 2017 (H.R. 4318) or “MTB”—is intended to address issues that U.S. manufacturers encounter when they require inputs that are not made in the United States. The bill would not require those manufacturers to pay tariffs for such inputs by temporarily suspending or reducing the tariffs. 


Read text of H.R. 4318 [PDF 1.2 MB] (510 pages)


Last year, the American Manufacturing Competitiveness Act of 2016 (AMCA) was enacted to allow U.S. businesses to petition for tariff relief from the ITC. On receiving a petition, the ITC would then determine whether each petition met the requirements of the AMCA, including the requirement that there be no domestic producer of a “like product” that objected to the tariff reduction or suspension at issue. 

In August 2017, the ITC provided a final report to Congress that included recommendations concerning more than 2,500 petitions. The ITC recommended that more than 1,800 of the petitions be included in MTB legislation to be considered by Congress. After reviewing the ITC’s final report, the bill unveiled today was prepared to implement the ITC’s recommendations. Pursuant to the AMCA, Congress may not include products that were not recommended by the ITC, and only non-controversial provisions are to be included in the MTB.


For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

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