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Updated September 6, 2019
Miscellaneous Tariff Bills (MTBs)
Background
The 2016 MTB process began on October 14, 2016, with an
On September 13, 2018, the President signed the
ITC notice published in the Federal Register asking
Miscellaneous Tariff Bill Act of 2018 (P.L. 115-239), an
members of the public who can demonstrate that they are
act that provided temporary tariff suspensions and
potential MTB beneficiaries to submit petitions within 60
reductions on more than 1,600 products until December 31,
days (closed on December 12, 2016). The AMCA-
2020. This legislation followed a process enacted in the
authorized 2019 process must follow a similar timeline.
American Manufacturing Competitiveness Act of 2016
Late petitions will not be accepted. The ITC will receive
(AMCA, P.L. 114-159). The U.S. International Trade
petitions directly and must publish them on a publicly
Commission (ITC) is preparing a new round of tariff
available website no later than 30 days after the end of the
suspension petitions to begin no later than October 15,
60-day petition period. Petitioners that wish to have
2019, as also provided for in the AMCA.
existing duty suspensions continue must re-apply. After all
What Are MTBs? Miscellaneous Tariff Bills (MTBs) aim
petitions and relevant documentation are posted, the ITC
to temporarily suspend or reduce tariffs on certain imported
will issue a notice requesting public comments within 45
products (called duty suspensions). In order to be
days (expected by about mid-January 2020). All comments
considered for inclusion in an MTB, proposed individual
will be available to the public (see Table 1, MTB Process
duty suspensions must be noncontroversial (e.g., no
Timeline in P.L. 114-159, below).
domestic producer or Member objects); revenue-neutral
Commerce Report. In previous MTBs, the Department of
(forgone tariff revenues of no more than $500,000 per
Commerce (Commerce) coordinated the Administration’s
product); and administrable by U.S. Customs and Border
comments on duty suspensions. Commerce analysts, along
Protection (CBP).
with the ITC, also researched proposed duty suspensions to
Debate. Many in Congress support MTBs as a relatively
determine the existence of any objecting domestic
low-cost method of providing a competitive edge to U.S.
producers. In the new process, Commerce’s role remains
businesses by reducing tariffs on chemicals and other inputs
essentially the same, with the addition of a deadline.
used to manufacture downstream products, thus making
As in the 2016 MTB process, the Department of
end-use products more affordable to consumers. However,
Commerce, in conjunction with CBP and other relevant
the former process by which MTBs were originally
federal agencies, must submit a report to the ITC and
assembled was controversial because it involved
Congress on each petition within 90 days after the ITC’s
constituents asking individual Members to introduce duty
publication of the MTB petitions. For each proposed duty
suspension bills to benefit a constituent’s company.
suspension the report must include (1) a determination of
New MTB Process
whether domestic production exists, or if domestic
production does exist, whether the producer objects to the
To address these prior concerns, Congress enacted AMCA
MTB petition; and (2) identification of technical changes to
to reform the process for vetting MTBs. The law also
the description, if any, necessary for purposes of CBP
established a process for initiating two MTBs, one in 2016,
administration.
and the second in 2019. To be included in an MTB, the
same conditions for duty suspensions are applied as in the
ITC Preliminary Report. In the AMCA, the ITC is
previous process (i.e., noncontroversial, revenue-neutral,
required to submit a preliminary report to the House Ways
and administrable).
and Means and Senate Finance Committees 120 to 150 days
following the publication date of the MTB petitions. For
Expanded ITC Role. Prior to passage of the AMCA, the
each petition, the report must contain (1) the product’s HTS
U.S. International Trade Commission (ITC), an
heading or subheading; (2) a determination of whether or
independent agency with statutory responsibility to assist
not domestic production or an objection to the duty
Congress (19 U.S.C. 1332(g)), reviewed duty suspension
suspension existed; (3) any technical changes necessary to
bills submitted by Members, made recommendations
the product description; (4) an estimate of the amount of
regarding proper tariff classification, calculated tariff
loss in U.S. revenue; (5) a determination of whether the
amounts, and surveyed industries to determine if proposed
duty suspension or reduction would be available to any
duty suspensions were controversial. The AMCA expanded
importer of the targeted product; and (6) the likely
the ITC’s role to include directly receiving the petitions for
beneficiaries of the duty suspension or reduction. Based on
duty suspensions or reductions (MTB petitions) from
the timeline in the AMCA and the previous cycle, the
industry representatives, collecting public feedback,
preliminary report may come out in June 2020.
gathering input from other related agencies, and reporting
findings directly to the House Ways and Means and Senate
Final ITC Report. After taking into account congressional
Finance Committees.
committee feedback and other information, the ITC must
submit its final report within 60 days determining, in part,
whether each petition (1) is able to be administered by
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Miscellaneous Tariff Bills (MTBs)
CBP; (2) does not exceed $500,000 in revenue loss per
amendment that removed several products from the MTB
year; and (3) is available to any person importing the
measure and added several types of lower-priced shoe
product. Based on the timeline (see below) the ITC’s final
products. All of these products (those removed from the bill
MTB report to Congress for the 2019-petition cycle will
as well as those that were inserted) had been previously
likely be completed in August 2020. If Congress decides to
vetted through the ITC process, open for public comment,
pursue MTB legislation, the relevant committees may
and included in the MTB report submitted by the ITC to
introduce MTB bills sometime after the final report is
Congress. The Senate amendment also extended customs
released.
user fees through October 13, 2027, instead of April 22,
2026, as in the House version. The House agreed to the
Table 1. MTB Process Timeline in P.L. 114-159
Senate amendment to H.R. 4318 on September 4, 2018.
Date
Action
President Trump signed the measure on September 13.
No Later than October 15,
ITC publishes notice requesting
What are the effects of the tariffs issued by the Trump
2016 and October 15, 2019
duty suspension petitions
Administration on the duty reductions in the MTB (P.L.
115-239 )? The Miscellaneous Tariff Bill Act of 2018
60-day period beginning on
Public sends duty suspension
suspended or reduced tariffs on 1,660 products, about half
ITC notice publication date
petitions to ITC
of which (based on analysis of the MTB petitions) are
No later than 30 days after
ITC publishes duty suspension
sourced from China. Thus, even though the MTB provided
60-day period expires
petitions on Internet
suspensions and reductions of the general (or “normal trade
relations” tariff rate), certain products imported from China
45-day period beginning on
Public comment period (also
may still be subject to additional tariffs of 10% or 25%
the publication date of
viewable by the public)
(which may increase) imposed under Section 301 of the
petitions
Trade Act of 1974. However, importers could import these
No later than 90 days
Commerce, in consultation with
products from countries not subject to the Section 301
following the publication date
CBP and other relevant federal
tariffs and import the product duty-free or at a reduced rate,
of petitions
agencies, submits report to ITC
as the MTB provides.
and appropriate congressional
committees
Is the new process working as intended, ensuring more
transparency and timely consideration of these
120 to 150 days following
ITC Preliminary Report to
measures? Each MTB must be submitted through a petition
the publication date of
committees
process that allows for public comment, and likely
petitions
beneficiaries are also disclosed. In the 2016-2017 MTB
60 days after submission of
ITC Final Report to committees
process, the ITC and other agencies were able to meet the
preliminary report
time lines prescribed in the legislation.
No later than 12 months
ITC reports on the effects of MTB
Were there any complications in the 2016 MTB petition
after enactment of MTB
legislation on the U.S. economy
cycle? According to the ITC, many MTB petitions
contained errors in accurately classifying the merchandise
Source: Sections 3 and 4 of P.L. 114-159.
according to the Harmonized Tariff Schedule of the United
States (HTSUS).Thus, almost 28% of the petitions were not
Issues for Congress
recommended for inclusion in an MTB because the duty
What are the costs and benefits of MTBs? The AMCA
suspensions could not be administered by CBP. In the 2019
required the ITC to submit a report to Congress on the
cycle, the ITC recommends that petitioners research the
economic effects of duty suspensions and reductions on the
HTSUS product classification using the Customs Ruling
U.S. economy within 12 months of the enactment of an
Online Search System (CROSS, https://rulings.cbp.gov), or
MTB. The report on the MTB enacted in 2017 is expected
submit a request to CBP for a binding customs
in mid-September 2019.
classification ruling (https://apps.cbp.gov/erulings/home),
prior to filing an MTB petition. The ITC has also
Does Congress have to act for an MTB to become law?
announced a series of workshops and webinars, the first of
Yes. Although the AMCA contains a sense of Congress that
which were held in July and August 2019, to (1) help
an MTB should be considered no later than 90 days after
potential filers understand the MTB petition process, and
the final ITC report, there is no requirement in the law for
(2) write acceptable product descriptions in various HTSUS
an MTB to receive floor action. If an MTB is to be
categories.
considered, the House Ways and Means Committee and/or
Senate Finance Committee must draft legislation and
Will MTBs continue under the current process after
publish a list of all “limited tariff benefits” (i.e., provisions
2019? The AMCA provided for two MTBs, one in 2016
modifying the HTS in a way that benefits 10 or fewer
and one in 2019. In order for the MTB process to be
entities) under a process specified in the AMCA.
continued beyond the 2019 process, Congress must extend
the AMCA, amend the MTB process, or decide not to
In the 115th Congress, companion MTBs based on the new
continue MTBs.
process were introduced in the House (H.R. 4318) and
Senate (S. 2108) on November 9, 2017. The House
Vivian C. Jones, Specialist in International Trade and
unanimously passed H.R. 4318 under suspension of the
Finance
rules on January 16, 2018. On July 26, 2018, the Senate
passed H.R. 4318 by unanimous consent, with an
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Miscellaneous Tariff Bills (MTBs)
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