Miscellaneous Tariff Bill Becomes Law – Reduces Tariffs on 1,700 Items
The Miscellaneous Tariff Bill (MTB) was signed by President Trump on September 13, 2018, and will go into effect on October 13th, 2018.
The bill, which was unanimously passed by Congress, will cut or eliminate tariffs on close to 1,700 different tariff lines and will be effective through 2020
The MTB’s purpose is to ensure that U.S. manufacturers are not at a disadvantage to their foreign competitors when sourcing manufacturing components (typical not finished goods, but rather inputs or parts that are needed to complete finished goods). These goods are deemed by the International Trade Commission to be unattainable or inaccessible from a domestic production or sourcing standpoint.
Half of these goods are produced in China. However, it is important to note that any tariff reductions that fall under the MTB do NOT take precedence over Section 301 Tariffs. See the example below:
- Original Tariff – 10%
- Tariff after MTB reduction – 5%
- Section 301 – 10% (addition)
- Final Tariff Amount – 15%
The complete list of goods can be found here.