Ways and Means Chairman Neal Asks for 90-Day Duty Suspension on 112 Tariff Lines
The International Trade Commission identified 112 tariff lines in a report on goods needed to fight COVID-19, and House Ways and Means Committee Chairman Richard Neal, D-Mass., is asking that all duties be suspended for 90 days on those goods. The majority of the 112 tariff lines are covered neither by Section 301 nor by Most Favored Nation duties, so are currently duty free.
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While the Office of the U.S. Trade Representative has provided exclusions to Section 301 tariffs on some goods related to COVID-19, Neal said that almost half of the 55 HTS 10-digit numbers that are subject to Section 301 tariffs have not been excluded by USTR. He said the goods that have not received exclusion include diagnostic testing instruments, protective gear, disinfectants and medical oxygen.
Also, he noted that 36 of the tariff lines are subject to MFN duties when they come from countries outside our free trade agreements, and those duties range from 2.5% to 16%. He said those MFN duties cover alcohol solutions, medical oxygen, swabs, hand sanitizers, rubber gloves, protective garments, and electronic drop counters for IV fluids, and more.
Even where there are Section 301 exclusions granted, Neal said, some are scheduled to expire in July.
In addition to chemical reagents, test kits, machines to process tests, personal protective equipments, disinfectants, oxygen therapy equipment and pulse oximeters, medical imaging equipment, syringes, needles, catheters and adhesives and drugs, the ITC identified products used for patient transportation, furniture used in a healthcare setting, and products used for mobile clinics.
In 2019, the value of the imports of all these goods was $105.3 billion, Neal said.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, who joined with Neal to order the report, said he'll continue to study the impact of tariffs on the American and global response to COVID-19. “This report isn’t a final, conclusive list of products, so I’m glad the ITC has agreed to provide updates to the public,” he said.