The trade war continues to escalate, as President Trump moved yesterday to extend tariffs to virtually all imports from China, including items like smartphones, apparel, and other retail goods and consumer products. The new round of tariffs would go into effect on September 1 and total nearly $300 billion, in addition to the currently imposed $250 billion.
In light of this recent news, businesses need to be fully aware of options available to them. One particular option for tariff relief is through the Miscellaneous Tariff Bill (MTB). Through the MTB, Congress temporarily suspends or reduces tariffs on certain imports for 3 years.
Please note, the MTB offers only temporary, not permanent, relief from tariffs, maintaining an incentive for companies to develop the capability to manufacture these products in the United States. For a full analysis, please click here.
The current MTB petition cycle is now complete. The Act requires the Commission to conduct another MTB petition cycle that will begin no later than October 15, 2019.
We encourage you to take the time now to review your products with all the current source points and seek to identify the opportunities that you can possibly take advantage for the MTB opportunity. You will need to research your imported goods and the duties associated with them. Products that previously received the benefit stand a better chance of being approved again. The ability to submit your items electronically provides a much simpler way to maneuver through the process.
BDP International will continue to monitor the situation with tariffs and the new MTB petition cycle once it is made available in early fall. We will continue to share any updates we receive.
Sources: The Wall Street Journal, BDP International