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Updated February 17, 2021
Miscellaneous Tariff Bills (MTBs)
Background
determine if proposed duty suspensions were controversial.
The AMCA expanded the ITC’s role to include directly
On December 31, 2020, temporary U.S. duty suspensions or
receiving MTB petitions from industry representatives,
reductions on more than 3,000 imported products expired.
collecting public feedback, gathering input from other
These duty suspensions were granted by the Miscellaneous
related agencies, and reporting findings directly to the
Tariff Bill Act of 2018 (P.L. 115-239), enacted in
House Ways and Means and Senate Finance Committees.
September 2018. The Miscellaneous Tariff Bill Act was
enacted following a specific procedure and timeline enacted
The ITC began the MTB process on October 10, 2019, and
in the American Manufacturing Competitiveness Act of
followed a timeline specifically established in the AMCA
2016 (AMCA, P.L. 114-159). The AMCA authorized the
(see Table 1, MTB Process Timeline in P.L. 114-159,
International Trade Commission (ITC) to conduct two
below).The process began with an ITC Federal Register
MTB cycles, one in 2016 and 2019.
notice asking members of the public who can demonstrate
that they are potential MTB beneficiaries to submit
On August 10, 2020, the ITC completed the final stage in
petitions within 60 days (October 11–December 10, 2019).
the AMCA process by submitting its final report to the
Petitioners who wished to continue existing duty
House Ways and Means and Senate Finance Committees.
suspensions were required to reapply. On January 10, 2020,
The AMCA contains no requirement that either committee
the ITC published all of the duty suspension requests it
introduce an MTB; rather, the law expresses a “sense of
received on a publicly available website. From January 10
Congress” that Congress “should” consider a bill within 90
to February 24, the ITC requested public comments on the
days after the ITC submits its final report. Neither
proposed duty suspensions. On March 30, 2020, the ITC
committee of jurisdiction introduced an MTB prior to the
announced that all comments on the duty suspensions were
conclusion of the 116th Congress.
available to the public.
What is the purpose of MTBs? MTBs aim to temporarily
Commerce Report. In the next step in the process, the
suspend or reduce tariffs on certain imported products
Department of Commerce, in conjunction with CBP and
(called duty suspensions). In order to be considered for
other relevant agencies, was required to a report to the ITC
inclusion in an MTB, each proposed duty suspension must
and Congress on each petition within 90 days of the
be noncontroversial (e.g., no domestic producer or Member
publication of the MTB petitions. For each proposed duty
objects); revenue-neutral (forgone tariff revenues of no
suspension the report was to include (1) a determination of
more than $500,000 per product); and administrable by
whether domestic production exists, or if domestic
U.S. Customs and Border Protection (CBP).
production does exist, whether the producer objects to the
MTB petition; and (2) identification of technical changes to
Debate. Many in Congress support MTBs as a relatively
the description, if any, necessary for purposes of CBP
low-cost method of providing a competitive edge to U.S.
administration.
businesses by reducing tariffs on chemicals and other inputs
used to manufacture downstream products, thus making
ITC Preliminary Report. The ITC’s preliminary report,
end-use products more affordable to consumers. However,
due 120 to 150 days after the publication date of the
the former process by which MTBs were assembled was
petitions, must contain, for each petition, (1) the product’s
controversial because it involved constituents asking
Harmonized Tariff Schedule (HTS) heading or subheading;
individual Members to introduce duty suspension bills to
(2) a determination of whether or not domestic production
benefit the constituent’s company.
or an objection to the duty suspension existed; (3) any
technical changes necessary to the product description; (4)
MTB Process in AMCA
an estimate of the amount of loss in U.S. revenue; (5) a
To address these prior concerns, Congress enacted AMCA
determination of whether the duty suspension or reduction
to reform the process for vetting MTBs. The law also
would be available to any importer of the targeted product;
established a process for initiating two MTBs, one in 2016,
and (6) the likely beneficiaries of the duty suspension or
and the second in 2019. To be included in an MTB, the
reduction. The ITC submitted its preliminary report to
same conditions for duty suspensions are applied as in the
Congress on June 9, 2020.
previous process (i.e., noncontroversial, revenue-neutral,
and administrable).
Final ITC Report. After taking into account congressional
committee feedback, the additional public comments
Expanded ITC Role. Prior to passage of the AMCA, the
received, and other information, the ITC must submit a
ITC, an independent agency with statutory responsibility to
final report within 60 days determining, in part, whether
assist Congress (19 U.S.C. 1332(g)), reviewed duty
each petition (1) is able to be administered by CBP; (2)
suspension bills submitted by Members, made
does not exceed $500,000 in revenue loss per year; and (3)
recommendations regarding proper tariff classification,
is available to any person importing the product. The ITC
calculated tariff amounts, and surveyed industries to
https://crsreports.congress.gov
Miscellaneous Tariff Bills (MTBs)
submitted its final report on August 10, 2020, on a total of
as well as those that were inserted) had been previously
3,442 MTB petitions.
vetted through the ITC process, open for public comment,
and included in the MTB report submitted by the ITC to
Table 1. MTB Process Timeline in P.L. 114-159
Congress. The Senate amendment also extended customs
Date
Action
user fees through October 13, 2027, instead of April 22,
2026, as in the House version. The House agreed to the
No Later than October 15,
ITC publishes notice requesting
Senate amendment to H.R. 4318 on September 4, 2018.
2016, and October 15, 2019 duty suspension petitions
President Trump signed the measure on September 13,
2018.
60-day period beginning on
Public sends duty suspension
ITC notice publication date
petitions to ITC
What are the effects of the tariffs issued by the Trump
No later than 30 days after
ITC publishes duty suspension
Administration on the duty reductions in the MTB (P.L.
60-day period expires
petitions on internet
115-239)? The Miscellaneous Tariff Bill Act of 2018
suspended or reduced tariffs on 1,655 products, about 64%
45-day period beginning on
Public comment period
of which were also subject to additional duties under
the publication date of
(comments also viewable by the
Section 301 if sourced from China. Thus, even though the
petitions
public)
MTB provided suspensions and reductions of the general
(or “normal trade relations”
No later than 90 days
Commerce, in consultation with
U.S. tariff rate), certain
following the publication date
CBP and other relevant federal
Chinese imports were subject to additional tariffs of as
of petitions
agencies, submits report to ITC
much as 25%. According to an ITC report on the economic
and appropriate congressional
effects of the 2018 MTB, 15% of U.S. imports by value (or
committees
$839 million) that entered under the MTB were subject to
Section 301 tariffs. This lower percentage may indicate that
120 to 150 days following
ITC Preliminary Report to
some importers found sources other than China for MTB-
the publication date of
Congress
covered products.
petitions
60 days after submission of
ITC Final Report to Congress
Is the new process working as intended, ensuring more
preliminary report
transparency and timely consideration of these
measures? Each MTB must be submitted through a petition
No later than 12 months
ITC reports on the effects of MTB
process that allows for public comment, and likely
after enactment of MTB
legislation on the U.S. economy
beneficiaries are also disclosed. In the 2016-2017 MTB
Source: Sections 3 and 4 of P.L. 114-159.
process, the ITC and other agencies were able to meet the
time lines prescribed in the legislation.
Issues for Congress
Were there any complications in the 2016 MTB petition
What are the costs and benefits of MTBs? The AMCA
cycle? According to the ITC, many MTB petitions
required the ITC to submit a report to Congress on the
contained errors in accurately classifying the merchandise
economic effects of duty suspensions and reductions on the
according to the Harmonized Tariff Schedule of the United
U.S. economy within 12 months of the enactment of an
States (HTSUS).Thus, almost 28% of the petitions were not
MTB. The ITC report, released in October 2019, indicated
recommended for inclusion in an MTB because the duty
that the 2018 MTB, which included 1,655 duty suspensions
suspensions could not be administered by CBP. In the
applied for by 335 separate firms, showed a small increase
2019-2020 cycle, the ITC recommended that petitioners
in terms of U.S. output, welfare, and GDP.
research the HTSUS product classification using the
Customs Ruling Online Search System (CROSS,
Does Congress have to act for an MTB to become law?
https://rulings.cbp.gov), or submit a request to CBP for a
Although the AMCA contains a sense of Congress that an
binding customs classification ruling (https://apps.cbp.gov/
MTB should be considered no later than 90 days after the
erulings/home), prior to filing an MTB petition. The ITC
final ITC report, there is no requirement in the law for an
also announced a series of workshops and webinars, the
MTB to receive floor action. If an MTB is to be considered,
first of which were held in July and August 2019, to (1)
the House Ways and Means Committee and/or Senate
help potential filers understand the MTB petition process,
Finance Committee must draft legislation and publish a list
of all “limited tariff benefits” (i.e., provisions modifying the
and (2) write acceptable product descriptions in various
HTSUS categories.
HTS in a way that benefits 10 or fewer entities) under a
process specified in the AMCA.
Will MTBs continue under the current process after the
2019 MTB cycle? The AMCA provided for two MTBs,
In the 115th Congress, companion MTBs based on the new
one initiated in 2016 and one in 2019. In order for the MTB
process were introduced in the House (H.R. 4318) and
process to be continued beyond the current (2019-2020)
Senate (S. 2108) on November 9, 2017. The House
process, Congress must extend the AMCA, further amend
unanimously passed H.R. 4318 under suspension of the
the MTB process, or decide not to continue MTBs.
rules on January 16, 2018. On July 26, 2018, the Senate
passed H.R. 4318 by unanimous consent, with an
Vivian C. Jones, Specialist in International Trade and
amendment that removed several products from the MTB
Finance
measure and added several types of lower-priced shoe
Liana Wong, Analyst in International Trade and Finance
products. All of these products (those removed from the bill
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Miscellaneous Tariff Bills (MTBs)
IF10478
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