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Tariff Relief: Companies May Seek Reduction or Suspension of Duties on Imports, But Must Act Soon

October 21, 2019   |   Atlanta | Detroit Metro | Chicago | Columbus | Dallas | Delaware | Elkhart | Fort Wayne | Grand Rapids | Indianapolis | Los Angeles | Minneapolis | San Diego | South Bend | Washington, D.C.

The miscellaneous tariff bill (MTB) process may offer some potential relief to companies suffering from tariff fatigue. Such entities have until close of business Dec. 10, 2019 to submit a petition for the inclusion of their imported products in upcoming legislation – or MTB – that would temporarily suspend or reduce duties on those imports.

Under the MTB process, any member of the public that is a “likely beneficiary” (i.e., an individual or entity likely to utilize, or benefit directly from the utilization of, an article that is the subject of a petition for a duty suspension or reduction) may submit a petition. The process – established by the American Manufacturing Competitiveness Act of 2016 – is primarily administered by the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce.

Historically, the tariff reductions or suspensions have only applied to the general rate of duty, and not any special duties such as Section 301 duties or antidumping and countervailing duties.

The 60-day window to submit petitions opened on Oct. 11, 2019. Once the December deadline passes, the ITC will compile petitions and issue a notice soliciting comments no later than Jan. 11, 2020. 

The Commerce Department is then tasked with determining whether domestic production exists for any product subject to a petition, as well as whether a domestic producer objects to the petition for duty suspension or reduction. After consultations with the Commerce Department, the ITC will then recommend to Congress a list of imported items that are suitable for inclusion in a legislative package that temporarily eliminates or reduces tariffs.  

To obtain more information, contact the Barnes & Thornburg attorney with whom you work or David Spooner at 202-371-6377 or david.spooner@btlaw.com, Linda Weinberg at 202-408-6902 or linda.weinberg@btlaw.com, Christine Sohar Henter at 202-408-6915 or christine.sohar-henter@btlaw.com, or Nick Galbraith at 202-371-6379 or nicholas.galbraith@btlaw.com.

© 2019 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is proprietary and the property of Barnes & Thornburg LLP. It may not be reproduced, in any form, without the express written consent of Barnes & Thornburg LLP.

This Barnes & Thornburg LLP publication should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.

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