Speaker Pelosi indicates more review before MTB/GSP renewal
The Miscellaneous Tariff Bill (MTB) and Generalized System of Preferences (GSP) offer manufacturers the opportunity to reduce or eliminate tariffs on imports. The MTB offers tariff relief on products entering the U.S. that are not made domestically. The GSP eliminates U.S. tariffs on eligible products made in 119 countries (list here) with developing economies. SFIA members have used these tariff relief programs to realize 100s of millions of dollars in tariff relief over the years.
The GSP and MTB are reviewed every few years and Congress traditionally renews both programs by wide margins. SFIA submitted petitions on behalf of members seeking MTB relief in 2019, U.S. International Trade Commission (USITC) vetted all the petitions to ensure no domestic competition and provided its recommendations to Congress in August 2020. Congress failed to move legislation to renew these tariff relief programs and they expired on January 1, 2021.
MTB and GSP renewal are on the House and Senate agenda. The Senate Bill (S.1260) renews MTB and GSP with minor changes, however Speaker Pelosi has indicated the House is not interested in adopting Senate language which will drag out passage and delay renewal. When Congress returns after Labor Day, the House will focus on the bipartisan infrastructure bill, while the Senate moves onto the budget reconciliation package they hope to pass without Republican support. Congress is committed to renewing these longstanding tariff relief programs in 2021 but the process has gotten side-tracked by COVID and political disruptions the first half of the year.
SFIA has drafted a letter businesses can send their representatives in Congress urging them to renew these important tariff relief programs as soon as possible.
Please click here to send MTB/GSP renewal message to Congress.