The Miscellaneous Tariff Bill (MTB) became law on September 13th, 2018 and will go into effect on October 13th, 2018, following a 30-day grace period.

The bill provides tariff reductions on roughly 1,700 items through 2020 and was originally proposed by the International Trade Commission (ITC) as a means of maintaining and enhancing the competitiveness of U.S. manufacturers in accordance with the American Manufacturing and Competitiveness Act of 2016.

The MTB aims to lessen overall production costs for U.S. manufacturers by reducing tariffs on items (typically not finished goods, but rather inputs or parts that are needed to complete finished goods) that the ITC has deemed unattainable or inaccessible from a domestic production and/or sourcing standpoint.

Most of the items that will receive reduced tariffs under the MTB are chemicals and foodstuffs. Each of these commodities are more often than not unique to specific geographies outside of the U.S. and cannot be easily sourced from or produced in the domestic marketplace.

(The irony of this development is not lost on us either!  This is all a little confusing given the recent tariffs imposed (or soon to be imposed) on many items.  Don’t shoot the messenger!)

Please note that any tariff reductions received as a result of the MTB do NOT preclude Section 301 tariffs. For example, if an item covered under the MTB also falls under Section 301, the result may look something like the following:

  • Original Tariff – 7%
  • Tariff Following MTB Reduction – 4%
  • Section 301 – 10% (additional)
  • Final Tariff Amount – 14 % (still a lessened rate because barring MTB, final amount would have been 17%)

Please click HERE to view a full list of items that will receive reduced tariffs under the MTB.

Shapiro will continue to monitor the situation and provide updates as they become available.