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Updated December 1, 2021
Miscellaneous Tariff Bills (MTBs)
Background
previous process (i.e., noncontroversial, revenue-neutral,
and administrable).
On December 31, 2020, temporary U.S. duty suspensions or
reductions on more than 3,000 imported products expired.
Expanded ITC Role. Prior to passage of the AMCA, the
These duty suspensions were granted by the Miscellaneous
ITC, an independent agency with statutory responsibility to
Tariff Bill Act of 2018 (P.L. 115-239), enacted in
assist Congress (19 U.S.C. 1332(g)), reviewed duty
September 2018. The Miscellaneous Tariff Bill Act was
suspension bills submitted by Members, made
enacted following a specific procedure and timeline enacted
recommendations regarding proper tariff classification,
in the American Manufacturing Competitiveness Act of
calculated tariff amounts, and surveyed industries to
2016 (AMCA, P.L. 114-159). The AMCA authorized the
determine if proposed duty suspensions were controversial.
International Trade Commission (ITC) to conduct two
The AMCA expanded the ITC’s role to include directly
MTB cycles, one in 2016 and 2019.
receiving MTB petitions from industry representatives,
collecting public feedback, gathering input from other
On August 10, 2020, the ITC completed the final stage in
related agencies, and reporting findings directly to the
the AMCA process by submitting its final report to the
House Ways and Means and Senate Finance Committees.
House Ways and Means and Senate Finance Committees.
The ITC began the MTB process on October 10, 2019, and
The AMCA contains no requirement that either committee
introduce an MTB; rather, the law expresses a “sense of
followed a timeline specifically established in the AMCA
Congress” that Congress “should” consider a bill within 90
(se
e Table 1).The process began with an ITC
Federal
Register notice asking members of the public who can
days after the ITC submits its final report.
demonstrate that they are potential MTB beneficiaries to
Recent developments. Several MTBs have been
submit petitions within 60 days (October 11–December 10,
introduced in the 117th Congress: H.R. 3975, H.R. 4037,
2019). Petitioners who wished to continue existing duty
and S. 1260. The Senate passed S. 1260 on June 8, 2021.
suspensions were required to reapply. On January 10, 2020,
All three measures would provide temporary duty
the ITC published all of the duty suspension requests it
suspensions or reductions to eligible products petitioned
received on a publicly available website. From January 10
under the second MTB cycle. They would also reauthorize
to February 24, the ITC requested public comments on the
the AMCA for future rounds of MTB cycles in 2022 and
proposed duty suspensions. On March 30, 2020, the ITC
2025.
announced that all comments on the duty suspensions were
available to the public.
What is the purpose of MTBs? MTBs aim to temporarily
suspend or reduce tariffs on certain imported products
Commerce Report. In the next step in the process, the
(called duty suspensions). In order to be considered for
Department of Commerce, in conjunction with CBP and
inclusion in an MTB, each proposed duty suspension must
other relevant agencies, was required to a report to the ITC
be noncontroversial (e.g., no domestic producer or Member
and Congress on each petition within 90 days of the
objects); revenue-neutral (forgone tariff revenues of no
publication of the MTB petitions. For each proposed duty
more than $500,000 per product); and administrable by
suspension the report was to include (1) a determination of
U.S. Customs and Border Protection (CBP).
whether domestic production exists, or if domestic
production does exist, whether the producer objects to the
Debate. Many in Congress support MTBs as a relatively
MTB petition; and (2) identification of technical changes to
low-cost method of providing a competitive edge to U.S.
the description, if any, necessary for purposes of CBP
businesses by reducing tariffs on chemicals and other inputs
administration.
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
MTB Process in AMCA
technical changes necessary to the product description; (4)
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.
https://crsreports.congress.gov
Miscel aneous Tariff Bil s (MTBs)
Final ITC Report. After taking into account congressional
temporary duty suspensions or reductions provided under
committee feedback, the additional public comments
P.L. 115-239 expired on December 31, 2020. Several bills
received, and other information, the ITC must submit a
have been introduced in the 117th Congress to provide
final report within 60 days determining, in part, whether
extend and provide new temporary duty suspensions or
each petition (1) is able to be administered by CBP; (2)
reductions to eligible products under the 2019 MTB cycle
does not exceed $500,000 in revenue loss per year; and (3)
until December 31, 2023. H.R. 3975 and H.R. 4037 were
is available to any person importing the product. The ITC
introduced in the House Ways and Means Committee in
submitted its final report on August 10, 2020, on a total of
June 2021, and received no further action from Congress.
3,442 MTB petitions.
The Senate passed S. 1260 on June 8, 2021.
Table 1. MTB Process Timeline in P.L. 114-159
What are the effects of the tariffs issued by the Trump
Date
Action
Administration on the duty reductions in the MTB (P.L.
115-239)? The Miscellaneous Tariff Bill Act of 2018
No Later than October 15,
ITC publishes notice requesting
suspended or reduced tariffs on 1,655 products, about 64%
2016, and October 15, 2019 duty suspension petitions
of which were also subject to additional duties under
Section 301 if sourced from China. Thus, even though the
60-day period beginning on
Public sends duty suspension
MTB provided suspensions and reductions of the general
ITC notice publication date
petitions to ITC
(or “normal trade relations” U.S. tariff rate), certain
No later than 30 days after
ITC publishes duty suspension
Chinese imports were subject to additional tariffs of as
60-day period expires
petitions on internet
much as 25%. According to an ITC report on the economic
effects of the 2018 MTB, 15% of U.S. imports by value (or
45-day period beginning on
Public comment period
$839 million) that entered under the MTB were subject to
the publication date of
(comments also viewable by the
Section 301 tariffs. This lower percentage may indicate that
petitions
public)
some importers found sources other than China for MTB-
No later than 90 days
Commerce, in consultation with
covered products.
fol owing the publication date
CBP and other relevant federal
of petitions
agencies, submits report to ITC
Is the new process working as intended, ensuring more
and appropriate congressional
transparency and timely consideration of these
committees
measures? Each MTB must be submitted through a petition
process that allows for public comment, and likely
120 to 150 days fol owing
ITC Preliminary Report to
beneficiaries are also disclosed. In the 2016-2017 MTB
the publication date of
Congress
process, the ITC and other agencies were able to meet the
petitions
time lines prescribed in the legislation.
60 days after submission of
ITC Final Report to Congress
Were there any complications in the 2016 MTB petition
preliminary report
cycle? According to the ITC, many MTB petitions
No later than 12 months
ITC reports on the effects of MTB
contained errors in accurately classifying the merchandise
after enactment of MTB
legislation on the U.S. economy
according to the Harmonized Tariff Schedule of the United
Source: Sections 3 and 4 of P.L. 114-159.
States (HTSUS).Thus, almost 28% of the petitions were not
recommended for inclusion in an MTB because the duty
Issues for Congress
suspensions could not be administered by CBP. In the
2019-2020 cycle, the ITC recommended that petitioners
What are the costs and benefits of MTBs? The AMCA
research the HTSUS product classification using the
required the ITC to submit a report to Congress on the
Customs Ruling Online Search System (CROSS,
economic effects of duty suspensions and reductions on the
https://rulings.cbp.gov), or submit a request to CBP for a
U.S. economy within 12 months of the enactment of an
binding customs classification ruling (https://apps.cbp.gov/
MTB. The ITC report, released in October 2019, indicated
erulings/home), prior to filing an MTB petition. The ITC
that the 2018 MTB, which included 1,655 duty suspensions
also announced a series of workshops and webinars, the
applied for by 335 separate firms, showed a small increase
first of which were held in July and August 2019, to (1)
in terms of U.S. output, welfare, and GDP.
help potential filers understand the MTB petition process,
and (2) write acceptable product descriptions in various
Does Congress have to act for an MTB to become law?
HTSUS categories.
Although the AMCA contains a sense of Congress that an
MTB should be considered no later than 90 days after the
Will MTBs continue under the current process after the
final ITC report, there is no requirement in the law for an
2019 MTB cycle? The AMCA provided for two MTBs,
MTB to receive floor action. If an MTB is to be considered,
one initiated in 2016 and one in 2019. In order for the MTB
the House Ways and Means Committee and/or Senate
process to be continued beyond the current (2019-2020)
Finance Committee must draft legislation and publish a list
process, Congress must extend the AMCA, further amend
of all “limited tariff benefits” (i.e., provisions modifying the
the MTB process, or decide not to continue MTBs . The
HTS in a way that benefits 10 or fewer entities) under a
bills introduced in the 117th Congress would amend the
process specified in the AMCA.
AMCA to provide for two future MTB cycles in 2022 and
2025.
The House and Senate committees of jurisdiction did not
introduce MTB legislation in the 116th Congress and
Liana Wong, Analyst in International Trade and Finance
https://crsreports.congress.gov
Miscel aneous Tariff Bil s (MTBs)
IF10478
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