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handle is hein.crs/govehcr0001 and id is 1 raw text is: Miscellaneous Tariff Bills (MTBs)

Background
On December 31, 2020, temporary U.S. duty suspensions or
reductions on more than 3,000 imported products expired.
These duty suspensions were grantedby theMiscellaneous
Tariff Bill Act of2018 (P.L. 115-239), enacted in
September 2018. The Miscellaneous Tariff Bill Act was
enacted following a specific procedure andtimeline enacted
in the American Manufacturing Competitiveness Act of
2016 (AMCA, P.L. 114-159). The AMCA authorized the
International Trade Commission (ITC) to conduct two
MTB cycles, one in 2016 and 2019.
On August 10, 2020, the ITC completed the fmal stage in
the AMCA process by submitting its final report to the
House W ays and Means and Senate Finance Committees.
The AMCA contains no requirement that either committee
introduce an MTB; rather, the law expres ses a sense of
Congres s that Congress should consider a bill within 90
days after the ITCsubmits its fmalreport.
Recent dewlopments. Several MTBs have been
introduced in the 117' Congress: H.R. 3975, H.R. 4037,
and S. 1260. The Senate passed 5. 1260 on June 8, 2021.
All three measures would provide temporary duty
suspensions or reductions to eligible products petitioned
under the second MTB cycle. They would also reauthorize
the AMCA for future rounds of MTB cycles in 2022 and
2025.
What is the purpose of MTBs? MTBs aim to temporarily
suspend or reduce tariffs on certain importedproducts
(called duty suspensions). In order to be considered for
inclusion in an MTB, each proposed duty suspension must
be noncontroversial(e.g., no domestic producerorMember
objects); revenue-neutral (forgone tariffrevenues of no
more than $500,000 per product); and administrable by
U.S. Customs and Border Protection (CBP).
Debate. Many in Congress support MTBs as a relatively
low-cost method of providing a competitive edge to U.S.
businesses by reducing tariffs on chemicals and other inputs
used to manufacture downstreamproducts, thus making
end-use products more affordable to consumers. However,
the former process by which MTBs were assembled was
controversialbecause it involved constituents asking
individual Members to introduceduty suspension bills to
benefit the constituent's company.
MTB Process     n AMCA
To address these prior concerns, Congress enacted AMCA
to reform the process for vetting MTBs. The law also
established a process for initiating two MTBs, one in 2016,
and the second in 2019. To be included in an MTB, the
s ame conditions for duty suspensions are applied as in the

previous process (i.e., noncontroversial, revenue-neutral,
and administrable).
Expanded ITC Role. Prior to passage of the AMCA, the
ITC, an independent agency with statutory responsibility to
as sist Congress (19 U.S.C. 1332(g)), reviewed duty
suspensionbills submittedby Members, made
recommendations regarding proper tariffclassification,
calculated tariff amounts, and surveyed industries to
determine if proposed duty suspensions were controversial.
The AMCA expanded the ITC's role to include directly
receiving MTB petitions fromindus try representatives,
collecting public feedback, gathering inputfromother
related agencies, and reporting findings directly to the
House Ways and Means and Senate Finance Committees.
The ITC began the MTB process on October 10, 2019, and
followed a timeline specifically established in the AMCA
(see Table 1).The process began with an ITCFederal
Register notice asking members ofthe public who can
demonstrate that they are potential MTB beneficiaries to
submit petitions within 60 days (October 11-December 10,
2019). Petitioners who wished to continue existing duty
suspensions were required to reapply. On January 10, 2020,
the ITC published allof the duty suspensionrequests it
received on a publicly available website. FromJanuary 10
to February 24, the ITCrequested public comments on the
proposed duty suspensions. On March 30, 2020, the ITC
announced that allcomments on the duty suspensions were
available to the public.
Commerce Report. In the next step in the process, the
Department of Commerce, in conjunction with CBP and
other relevant agencies, was required to areportto the ITC
and Congress oneachpetition within 90days of the
publication of the MTB petitions. For each proposed duty
suspension the report was to include (1) a determination of
whether domestic production exists, or if domestic
production does exist, whether the producer objects to the
MTB petition; and (2) identification of technical changes to
the description, if any, necessary forpurposes of CBP
administration.
ITC Preliminary Report. The ITC's preliminary report,
due 120 to 150 days after the publication date of the
petitions, must contain, for each petition, (1) the product's
Harmonized Tariff Schedule (HTS) heading or subheading;
(2) a determination of whether or not domestic production
or an objection to the duty suspension existed; (3) any
technical changes necessary to the product description; (4)
an estimate ofthe amount oflos s in U.S. revenue; (5) a
determination of whether the duty s uspension or reduction
would be available to any importer of the targetedproduct;
and (6) the likely beneficiaries of the duty suspension or
reduction. The ITC submitted its preliminary report to
Congress onJune9, 2020.

Updated December 1, 2021

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