A bill that would retroactively renew the Generalized System of Preferences, and extend the program for developing countries until the end of 2020, passed the House of Representatives Feb. 13 by a nearly unanimous vote -- 400-2 in favor. A companion bill has not yet been introduced in the Senate.
International Trade Today is providing readers with some of the top stories for Feb. 5 - 9 in case they were missed.
The House of Representatives will vote Feb. 13 on a bill to extend the Generalized System of Preferences, according to an announcement from Majority Leader Kevin McCarthy's office. The bill extends the tariff exemptions through the end of 2020, and it allows importers to be reimbursed for tariffs paid on goods this year that should have been entered duty-free (see 1802080058). A companion bill has not yet been introduced in the Senate, but Finance Committee Chairman Orrin Hatch, R-Utah, "recognizes the importance of this program, which enjoys strong bipartisan support in Congress. He is talking with members on how to best move forward and ensure the program is renewed as soon as possible," a commmittee spokeswoman said. Articles classified by CBP under about 3,500 tariff rate lines were duty-free from 120 GSP beneficiaries. The program helped importers avoid more than $865 million in tariffs in 2017, according to a statement Feb. 8 from House Trade Subcommittee Chairman Dave Reichert, R-Wash., who introduced the bill, H.R. 4979, with Ways and Means Chairman Kevin Brady, R-Texas, that day.
The Generalized System of Preferences, which expired at the end of last year, had its first move toward renewal Feb. 8, as the chairman and ranking member of the House Ways and Means Committee introduced a bill that would extend the program for three years, the committee said in a press release. "When enacted, the bill introduced today will extend the program through December 31, 2020, and retroactively extend benefits to covered imports that have been made since the program lapsed," the release said.
President Donald Trump on Jan. 23 imposed new Section 201 safeguard tariffs on imports of large residential washers and solar cells and modules, marking the first use of the provision since safeguards were imposed on steel products in 2002. Both of the new safeguards take the form of tariff-rate quotas, with duties on out-of-quota washers starting at 50% and in-quota washers at 20%, and duties on out-of-quota solar cells and modules starting at 30% with in-quota solar cells exempt. Imports from free trade agreement partners, including Canada and Mexico, are mostly covered by the safeguard duties, though Canadian washers will benefit from an exemption.
The House of Representatives is scheduled to consider the Miscellaneous Tariff Bill Act (H.R. 4318) on Jan. 16, House Majority Leader Kevin McCarthy, R-Calif., said on the daily schedule. The bill is set to get expedited treatment as non-controversial legislation "under suspension of the rules," it said. The MTB legislation was introduced in the Senate and House in November (see 1711090039). Companies (see 1712070027) and lawmakers (see 1801120016) recently began a push for quick consideration of the MTB. The last MTB expired in 2012.
A bipartisan group of lawmakers asked House leadership in a Jan. 11 letter to move quickly on the Miscellaneous Tariff Bill Act. The MTB should be "either included in the emerging budget and spending package, as part of another package, or as a standalone measure," the 34 House members said. The MTB legislation was introduced in the Senate and House in November (see 1711090039). "We urge you and your leadership teams to act now to improve the competitiveness of manufacturers throughout the United States by passing the MTB legislation as soon as possible, as well as renewal of the Generalized System of Preferences."
The Commerce Department issued the final results of the antidumping duty administrative review on tapered roller bearings from China (A-570-601). These final results will be used to set final assessments of AD duties on importers for subject merchandise entered June 1, 2015, through May 31, 2016.
Nearly 400 companies and trade groups signed a Jan. 4 letter to congressional leadership asking for a quick renewal of the Generalized System of Preferences (GSP) program. "A retroactive GSP renewal fits squarely on a Congressional agenda to pass legislation that benefits American families, workers, and companies," the group said in the letter. "The sooner it happens and tariffs paid already are refunded, the sooner we return our focus to making competitive American products, providing consumers with goods at affordable prices, and growing the U.S. economy."
The expiration of Generalized System of Preferences benefits at the end of 2017 are estimated to cost U.S. companies between $2.5 million and $3 million per day, the Coalition for GSP said on its website. "It is critical that importers continue claiming GSP for eligible products despite the expiration," said the group, which advocates for GSP beneficiaries in the U.S. "Companies must pay the taxes, but claiming GSP now will help expedite any refund process assuming Congress renews GSP retroactively. In the event of a prolonged expiration, it also will ensure that the Coalition does not underestimate costs of expiration, which are based on claimed imports." House Ways and Means Committee Chairman Kevin Brady, R-Texas, recently said GSP renewal is an early priority for 2018 (see 1712210029). CBP provided instructions for GSP filers following expiration last month (see 1712200005).