The U.S. International Trade Commission (ITC) will begin accepting petitions to seek duty reductions or suspensions under the next Miscellaneous Tariff Bill (MTB). The MTB provides temporary (typically 3-year) relief from ordinary import duties on goods that are not produced domestically to improve the competitiveness of U.S. companies.
U.S. importers interested in having one or more of its products potentially included in the MTB will have a limited window of time to file a petition. The process will open October 11 and remain open for 60 days. The ITC has also indicated there will be a special process for requesting a renewal of any duty suspension that was approved in the last MTB process.
Products of China subject to Section 301 tariffs can benefit from MTB’s suspension and reductions for the general rate of duty, but they remain subject to the additional duty imposed by Section 301.
Since the last MTB was passed, the ITC published new procedures for the preparation and filing of new MTB petitions. These procedures are stricter than those applied during the 2016 application cycle. Petitions should include, to the extent possible:
A confirmation of the tariff classification, including a U.S. Customs and Border Protection (“CBP”) classification ruling or other support documentation.
An estimate of the share of imports represented by the petitioner’s imports of the subject article;
The names of any domestic producers, if available;
A certificate of completeness; and
An acknowledgement that the information submitted is subject to ITC audit and verification.
Each MTB is evaluated based upon a number of criteria, including whether there is domestic opposition to the tariff relief, and whether CBP can administer the duty suspension.
Our team has successfully navigated duty suspension and reduction applications through the MTB process, from eligibility determinations for the initial petition through the subsequent administrative and legislative process. Should you have any questions concerning the MTB application process, please contact one of the Rock Trade Law LLC trade professionals listed here.