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BREAKING NEWS: TIME LIMITED DUTY REDUCTION OPPORTUNITY FOR U.S. IMPORTERS

 
The U.S. Congress recently passed the American Manufacturing Competitiveness Act of 2016, which formalizes an administrative process for temporarily lowering duties on certain imported raw materials and finished goods. 
 
Under the revised Miscellaneous Tariff Bill (MTB), importers will be able to petition for duty suspension or reduction for products they import that are not manufactured in the U.S.
 
Under the revised Miscellaneous Tariff Bill (MTB), importers will be able to petition for duty suspension or reduction for products they import that are not manufactured in the U.S.
The new MTB process provides increased certainty that products meeting the conditions of the program will obtain the duty benefits while also establishing strict timelines for each stage of the process.
 
Certain criteria must be met to qualify, the most important of which are that there be no – or insufficient – domestic availability of the product in question and that the revenue loss to the government resulting from the duty suspension or reduction on that product does not exceed $500,000 per year.
 
Timing of the new MTB process:
 
  1. The process is expected to be initiated by the Independent International Trade Commission by or before October 15, 2016. 
  2. To apply for duty relief, importers must file their petitions within 60 days of that initiation.
  3. After petitions are submitted, the ITC will issue a preliminary report then request and publish comments on the petitions from the public and other government agencies.
  4. After receiving and reviewing these comments, the ITC will submit a final report to Congress.
  5. Congress is expected to authorize the duty modifications contained in the ITC ‘s final report within 90 days of its receipt.
  6. Tariff suspensions for successful petitions are expected to be in place by mid-2017. 
 
Importers should begin immediately to identify products and demonstrate their eligibility in order to submit timely petitions for inclusion in the MTB process.
 
Cole International has successfully assisted Canadian importers with a similar process for over 30 years and is ready to take on the MTB process now. Our Customs Consulting offices are available to assist importers in identifying qualifying products, preparing petitions for submission to the ITC, and participating in the review process until the MTB is passed.
 
Contact us today!
 
Information provided by: U.S. Customs Dept. - Cole International
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