Congress is finally moving to reauthorize the miscellaneous trade bill, which would lower duties on hundreds of imported goods. However, the bill includes some new limitations on this treatment and would require some work on the part of importers.

The MTB temporarily reduces or eliminates import duties on products not available in the U.S. and has been expired since December 2020. On May 14 nearly two dozen Republican members of the House of Representatives introduced legislation that would authorize such treatment for products recommended in the most recent MTB process. That treatment would be retroactive to Jan. 1, 2021, and valid through Dec. 31, 2025.

It is important to note that products subject to Section 301 tariffs when imported from China would be excluded from MTB eligibility, except if there was a tariff exclusion in place for the product before Dec. 31, 2020.

Finally, the bill provides for two additional cycles of MTB legislation under current procedures in 2025 and 2028.

The new MTB could offer significant cost savings to U.S. companies and manufacturers dealing with rising input costs and other challenges. However, to take advantage of the retroactive MTB provisions, importers would need to reconstruct entries of subject goods sufficient to demonstrate to U.S. Customs and Border Protection that they are entitled to refunds. Importers may also need assistance compiling documents demonstrating that their goods are covered by Section 301 tariff exclusions and therefore eligible for MTB treatment.

For help with these tasks, or for more information on the MTB and how it could benefit your company, please contact David Olave at (202) 730-4960 or via email.

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