in International Trade and Finance
often request that Members of Congress introduce bills seeking to suspend or
reduce tariffs on certain imports on their behalf. The vast majority of
these commodities are chemicals, raw materials, or other components used
as inputs in the manufacturing process. The rationale for these requests,
in general, is that they help domestic producers of the downstream goods reduce costs,
thus making their products more competitive. In turn, these cost reductions can
be passed on to the consumer.
In recent congressional practice, the House Ways and Means and Senate Finance
Committees, the committees of jurisdiction over tariffs, have combined
individual duty suspension bills and other technical trade provisions into
larger pieces of legislation known as miscellaneous tariff bills (MTBs).
Before inclusion in an MTB, the individual legislative proposals introduced by
Members are reviewed by the trade subcommittee staff in each committee, the
U.S. International Trade Commission (USITC), and several executive branch
agencies to ensure that they are noncontroversial (generally, that no
domestic producer objects) and relatively revenue-neutral (revenue loss of
no more than $500,000 per item).
In the 111th Congress, the United States Manufacturing Enhancement Act of 2010
(P.L. 111-227) was signed by the President on August 11, 2010. As enacted,
the law temporarily suspended or reduced for three years (through December
31, 2012) duties on over 600 products, many of which renewed duty
suspensions or reductions that were already in place. On December 15, 2010,
H.R. 6517, a bill that, in part, sought further duty suspensions on
approximately 290 products, passed in the House. On December 22, 2010, however,
the Senate passed an amendment in the nature of a substitute of H.R. 6517
that did not contain the duty suspension measures. The House passed the
amended version of the bill on the same date (P.L. 111-344).
Legislation could emerge in the second session of the 112th Congress proposing
duty suspensions. On March 30, 2012, Chairman Camp and Ranking Member
Levin of the House Ways and Means Committee, and Chairman Brady and
Ranking Member McDermott of the Trade Subcommittee announced the beginning
of the MTB process in the House, and invited Members to submit duty suspension
bills by April 30, 2012. Senate Finance Committee Chairman Baucus also
announced on March 30 that duty suspension bills are due in the Senate on
the same date. Since the duty suspensions enacted in P.L. 111-227 expire
on December 30, 2012, an MTB could include renewal of some or all of the
provisions included in that bill, as well as the original duty suspensions
included in H.R. 6517 in the 111th Congress that were not enacted. However,
some in Congress assert that duty suspensions, also referred to in
legislation as “limited tariff benefits,” are similar to earmarks—and
should, therefore, be subject to the non-binding moratorium on earmarks
supported by House and Senate Republicans last year.
This report, first, briefly presents a discussion of the MTB legislation
debated in the past few Congresses. Second, the reviews of individual duty
suspension bills by House Ways and Means and Senate Finance committee
staff, the U.S. International Trade Commission (USITC), and other relevant
agencies are discussed. Third, the report presents some pros and cons for MTB
passage. Fourth, Table 1 at the end of the report illustrates MTB
legislation considered in Congress from the 97th Congress (1983) to the
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