H. Rept. 114-519 - AMERICAN MANUFACTURING COMPETITIVENESS ACT OF 2016114th Congress (2015-2016)
Committee Report
| Report Type: | House Report |
|---|---|
| Accompanies: | H.R.4923 |
| Committees: |
H. Rept. 114-519 - 114th Congress (2015-2016)
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House Report 114-519 - AMERICAN MANUFACTURING COMPETITIVENESS ACT OF 2016
[House Report 114-519]
[From the U.S. Government Publishing Office]
114th Congress } { Rept. 114-519
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
======================================================================
AMERICAN MANUFACTURING COMPETITIVENESS ACT OF 2016
_______
April 25, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Brady of Texas, from the Ways and Means, submitted the following
R E P O R T
[To accompany H.R. 4923]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 4923) to establish a process for the submission and
consideration of petitions for temporary duty suspensions and
reductions, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................7
A. Purpose and Summary................................. 7
B. Background and Need for Legislation................. 7
C. Legislative History................................. 8
II. EXPLANATION OF THE BILL..........................................8
III. VOTES OF THE COMMITTEE..........................................16
IV. BUDGET EFFECTS OF THE BILL......................................16
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......16
A. Committee Oversight Findings and Recommendations.... 16
B. Statement of General Performance Goals and
Objectives......................................... 16
C. Information Relating to Unfunded Mandates........... 16
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 16
E. Duplication of Federal Programs..................... 17
F. Disclosure of Directed Rule Makings................. 17
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........17
VII. Exchanges of Letters with Additional Committees of Referral.....17
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Manufacturing Competitiveness
Act of 2016''.
SEC. 2. SENSE OF CONGRESS ON THE NEED FOR A MISCELLANEOUS TARIFF BILL.
(a) Findings.--Congress makes the following findings:
(1) As of the date of the enactment of this Act, the
Harmonized Tariff Schedule of the United States imposes duties
on imported goods for which there is no domestic availability
or insufficient domestic availability.
(2) The imposition of duties on such goods creates artificial
distortions in the economy of the United States that negatively
affect United States manufacturers and consumers.
(3) The manufacturing competitiveness of the United States
around the world will be enhanced if Congress regularly and
predictably updates the Harmonized Tariff Schedule to suspend
or reduce duties on such goods.
(4) Creating and maintaining an open and transparent process
for consideration of petitions for duty suspensions and
reductions builds confidence that the process is fair, open to
all, and free of abuse.
(5) Complying with the Rules of the House of Representatives
and the Senate, in particular with clause 9 of rule XXI of the
Rules of the House of Representatives and rule XLIV of the
Standing Rules of the Senate, is essential to fostering and
maintaining confidence in the process for considering a
miscellaneous tariff bill.
(6) A miscellaneous tariff bill developed under this process
will not contain any--
(A) congressional earmarks or limited tax benefits
within the meaning of clause 9 of rule XXI of the Rules
of the House of Representatives; or
(B) congressionally directed spending items or
limited tax benefits within the meaning of rule XLIV of
the Standing Rules of the Senate.
(7) Because any limited tariff benefits contained in any
miscellaneous tariff bill following the process set forth by
this Act will not have been the subject of legislation
introduced by an individual Member of Congress and will be
fully vetted through a transparent and fair process free of
abuse, it is appropriate for Congress to consider limited
tariff benefits as part of that miscellaneous tariff bill as
long as--
(A) in the case of a miscellaneous tariff bill
considered in the House of Representatives, consistent
with the Rules of the House of Representatives, a list
of such limited tariff benefits is published in the
reports of the Committee on Ways and Means of the House
of Representatives accompanying the miscellaneous
tariff bill, or in the Congressional Record; and
(B) in the case of a miscellaneous tariff bill
considered in the Senate, consistent with the Standing
Rules of the Senate--
(i) such limited tariff benefits have been
identified through lists, charts, or other
similar means; and
(ii) the information identified in clause (i)
has been available on a publicly accessible
congressional website in a searchable format at
least 48 hours before the vote on the motion to
proceed to the miscellaneous tariff bill or the
vote on the adoption of a report of a committee
of conference in connection with the
miscellaneous tariff bill, as the case may be.
(8) When the process set forth under paragraph (7) is
followed, it is consistent with the letter and intent of the
Rules of the House of Representatives and the Senate and other
related guidance.
(b) Sense of Congress.--It is the sense of Congress that, to remove
the competitive disadvantage to United States manufacturers and
consumers and to promote the competitiveness of United States
manufacturers, Congress should, not later than 90 days after the United
States International Trade Commission issues a final report on
petitions for duty suspensions and reductions under section 3(b)(3)(E),
consider a miscellaneous tariff bill.
SEC. 3. PROCESS FOR CONSIDERATION OF PETITIONS FOR DUTY SUSPENSIONS AND
REDUCTIONS.
(a) Purpose.--It is the purpose of this section to establish a
process for the submission and consideration of petitions for duty
suspensions and reductions.
(b) Requirements of Commission.--
(1) Initiation.--Not later than October 15, 2016, and October
15, 2019, the Commission shall publish in the Federal Register
and on a publicly available Internet website of the Commission
a notice requesting members of the public who can demonstrate
that they are likely beneficiaries of duty suspensions or
reductions to submit to the Commission during the 60-day period
beginning on the date of such publication--
(A) petitions for duty suspensions and reductions;
and
(B) Commission disclosure forms with respect to such
duty suspensions and reductions.
(2) Content of petitions.--Each petition for a duty
suspension or reduction under paragraph (1)(A) shall include
the following information:
(A) The name and address of the petitioner.
(B) A statement as to whether the petition provides
for an extension of an existing duty suspension or
reduction or provides for a new duty suspension or
reduction.
(C) A certification that the petitioner is a likely
beneficiary of the proposed duty suspension or
reduction.
(D) An article description for the proposed duty
suspension or reduction to be included in the amendment
to subchapter II of chapter 99 of the Harmonized Tariff
Schedule of the United States.
(E) To the extent available--
(i) a classification of the article for
purposes of the amendment to subchapter II of
chapter 99 of the Harmonized Tariff Schedule of
the United States;
(ii) a classification ruling of U.S. Customs
and Border Protection with respect to the
article; and
(iii) a copy of a U.S. Customs and Border
Protection entry summary indicating where the
article is classified in the Harmonized Tariff
Schedule of the United States.
(F) A brief and general description of the article.
(G) A brief description of the industry in the United
States that uses the article.
(H) An estimate of the total value, in United States
dollars, of imports of the article for each of the 5
calendar years after the calendar year in which the
petition is filed, including an estimate of the total
value of such imports by the person who submits the
petition and by any other importers, if available.
(I) The name of each person that imports the article,
if available.
(J) A description of any domestic production of the
article, if available.
(K) Such other information as the Commission may
require.
(3) Review.--
(A) Commission publication and public availability.--
As soon as practicable after the expiration of the 60-
day period specified in paragraph (1), but in any case
not later than 30 days after the expiration of such 60-
day period, the Commission shall publish on a publicly
available Internet website of the Commission--
(i) the petitions for duty suspensions and
reductions submitted under paragraph (1)(A)
that contain the information required under
paragraph (2); and
(ii) the Commission disclosure forms with
respect to such duty suspensions and reductions
submitted under paragraph (1)(B).
(B) Public comment.--
(i) In general.--The Commission shall publish
in the Federal Register and on a publicly
available Internet website of the Commission a
notice requesting members of the public to
submit to the Commission during the 45-day
period beginning on the date of publication
described in subparagraph (A) comments on--
(I) the petitions for duty
suspensions and reductions published by
the Commission under subparagraph
(A)(i); and
(II) the Commission disclosure forms
with respect to such duty suspensions
and reductions published by the
Commission under subparagraph (A)(ii).
(ii) Publication of comments.--The Commission
shall publish a notice in the Federal Register
directing members of the public to a publicly
available Internet website of the Commission to
view the comments of the members of the public
received under clause (i).
(C) Preliminary report.--
(i) In general.--As soon as practicable after
the expiration of the 120-day period beginning
on the date of publication described in
subparagraph (A), but in any case not later
than 30 days after the expiration of such 120-
day period, the Commission shall submit to the
appropriate congressional committees a
preliminary report on the petitions for duty
suspensions and reductions submitted under
paragraph (1)(A). The preliminary report shall
contain the following information with respect
to each petition for a duty suspension or
reduction:
(I) The heading or subheading of the
Harmonized Tariff Schedule of the
United States in which each article
that is the subject of the petition for
the duty suspension or reduction is
classified, as identified by
documentation supplied to the
Commission, and any supporting
information obtained by the Commission.
(II) A determination of whether or
not domestic production of the article
that is the subject of the petition for
the duty suspension or reduction
exists, taking into account the report
of the Secretary of Commerce under
subsection (c)(1), and, if such
production exists, whether or not a
domestic producer of the article
objects to the duty suspension or
reduction.
(III) Any technical changes to the
article description of the article that
is the subject of the petition for the
duty suspension or reduction that are
necessary for purposes of
administration when the article is
presented for importation, taking into
account the report of the Secretary of
Commerce under subsection (c)(2).
(IV) An estimate of the amount of
loss in revenue to the United States
that would no longer be collected if
the duty suspension or reduction takes
effect.
(V) A determination of whether or not
the duty suspension or reduction is
available to any person that imports
the article that is the subject of the
duty suspension or reduction.
(VI) The likely beneficiaries of each
duty suspension or reduction, including
whether the petitioner is a likely
beneficiary.
(ii) Categories of information.--The
preliminary report submitted under clause (i)
shall also contain the following information:
(I) A list of petitions for duty
suspensions and reductions that meet
the requirements of this Act without
modifications.
(II) A list of petitions for duty
suspensions and reductions for which
the Commission recommends technical
corrections in order to meet the
requirements of this Act, with the
correction specified.
(III) A list of petitions for duty
suspensions and reductions for which
the Commission recommends modifications
to the amount of the duty suspension or
reduction that is the subject of the
petition to comply with the
requirements of this Act, with the
modification specified.
(IV) A list of petitions for duty
suspensions and reductions for which
the Commission recommends modifications
to the scope of the articles that are
the subject of such petitions to
address objections by domestic
producers to such petitions, with the
modifications specified.
(V) A list of the following:
(aa) Petitions for duty
suspensions and reductions that
the Commission has determined
do not contain the information
required under paragraph (2).
(bb) Petitions for duty
suspensions and reductions with
respect to which the Commission
has determined the petitioner
is not a likely beneficiary.
(VI) A list of petitions for duty
suspensions and reductions that the
Commission does not recommend for
inclusion in a miscellaneous tariff
bill, other than petitions specified in
subclause (V).
(D) Additional information.--The Commission shall
consider any information submitted by the appropriate
congressional committees to the Commission relating to
moving a petition that is contained in the list
referred to in subclause (VI) of subparagraph (C)(ii)
of the preliminary report submitted under subparagraph
(C) to a list referred to in subclause (I), (II),
(III), or (IV) of subparagraph (C)(ii).
(E) Final report.--Not later than 60 days after the
date on which the preliminary report is submitted under
subparagraph (C), the Commission shall submit to the
appropriate congressional committees a final report on
each petition for a duty suspension or reduction
specified in the preliminary report. The final report
shall contain with respect to each such petition--
(i) the information required under clauses
(i) and (ii) of subparagraph (C) and updated as
appropriate under subparagraph (D); and
(ii) a determination of the Commission
whether--
(I) the duty suspension or reduction
can likely be administered by U.S.
Customs and Border Protection;
(II) the estimated loss in revenue to
the United States from the duty
suspension or reduction does not exceed
$500,000 in a calendar year during
which the duty suspension or reduction
would be in effect; and
(III) the duty suspension or
reduction is available to any person
importing the article that is the
subject of the duty suspension or
reduction.
(F) Exclusions.--The appropriate congressional
committees may exclude from a miscellaneous tariff bill
any petition for a duty suspension or reduction that--
(i) is contained in any list referred to in
subclause (I), (II), (III), or (IV) of
subparagraph (C)(ii), as updated as appropriate
under subparagraph (E)(i);
(ii) is the subject of an objection from a
Member of Congress; or
(iii) is for an article for which there is
domestic production.
(G) Estimates by the congressional budget office.--
For purposes of reflecting the estimate of the
Congressional Budget Office, the appropriate
congressional committees shall adjust the amount of a
duty suspension or reduction in a miscellaneous tariff
bill only to assure that the estimated loss in revenue
to the United States from that duty suspension or
reduction, as estimated by the Congressional Budget
Office, does not exceed $500,000 in a calendar year
during which the duty suspension or reduction would be
in effect.
(H) Prohibitions.--Any petitions for duty suspensions
or reductions that are contained in any list referred
to in subclause (V) or (VI) of subparagraph (C)(ii), as
updated as appropriate under subparagraph (E)(i), or
have not otherwise undergone the processes required by
this Act shall not be included in a miscellaneous
tariff bill.
(4) Confidential business information.--The procedures
concerning the release of confidential business information set
forth in section 332(g) of the Tariff Act of 1930 (19 U.S.C.
1332(g)) shall apply with respect to information received by
the Commission in posting petitions on a publicly available
website of the Commission and in preparing reports under this
subsection.
(5) Procedures.--The Commission shall prescribe and publish
in the Federal Register and on a publicly available Internet
website of the Commission procedures to be complied with by
members of the public submitting petitions for duty suspensions
and reductions under subsection (b)(1)(A).
(c) Department of Commerce Report.--Not later than the end of the 90-
day period beginning on the date of publication of the petitions for
duty suspensions and reductions under subsection (b)(3)(A), the
Secretary of Commerce, in consultation with U.S. Customs and Border
Protection and other relevant Federal agencies, shall submit to the
Commission and the appropriate congressional committees a report on
each petition for a duty suspension or reduction submitted under
subsection (b)(1)(A) that includes the following information:
(1) A determination of whether or not domestic production of
the article that is the subject of the petition for the duty
suspension or reduction exists and, if such production exists,
whether or not a domestic producer of the article objects to
the petition for the duty suspension or reduction.
(2) Any technical changes to the article description that are
necessary for purposes of administration when articles are
presented for importation.
SEC. 4. REPORT ON EFFECTS OF DUTY SUSPENSIONS AND REDUCTIONS ON UNITED
STATES ECONOMY.
(a) In General.--Not later than 12 months after the date of the
enactment of a miscellaneous tariff bill, the Commission shall submit
to the appropriate congressional committees a report on the effects on
the United States economy of duty suspensions and reductions enacted
pursuant to this Act, including a broad assessment of the economic
effects of such duty suspensions and reductions on producers,
purchasers, and consumers in the United States, using case studies
describing such effects on selected industries or by type of article as
available data permit.
(b) Recommendations.--The Commission shall also solicit and append to
the report required under subsection (a) recommendations with respect
to those domestic industry sectors or specific domestic industries that
might benefit from permanent duty suspensions and reductions, either
through a unilateral action of the United States or though negotiations
for reciprocal tariff agreements, with a particular focus on inequities
created by tariff inversions.
(c) Form of Report.--Each report required by this section shall be
submitted in unclassified form, but may include a classified annex.
SEC. 5. PUBLICATION OF LIMITED TARIFF BENEFITS IN THE HOUSE OF
REPRESENTATIVES AND THE SENATE.
(a) House of Representatives.--
(1) In general.--The chair of the Committee on Ways and Means
of the House of Representatives shall include a list of limited
tariff benefits contained in a miscellaneous tariff bill in the
report to accompany such a bill or, in a case where a
miscellaneous tariff bill is not reported by the committee,
shall cause such a list to be printed in the appropriate
section of the Congressional Record.
(2) Limited tariff benefit defined.--For purposes of this
subsection and consistent with clause 9 of rule XXI of the
Rules of the House of Representatives, as in effect during the
One Hundred Fourteenth Congress, the term ``limited tariff
benefit'' means a provision modifying the Harmonized Tariff
Schedule of the United States in a manner that benefits 10 or
fewer entities.
(b) Senate.--
(1) In general.--The chairman of the Committee on Finance of
the Senate, the Majority Leader of the Senate, or the designee
of the Majority Leader of the Senate, shall provide for the
publication in the Congressional Record of a certification
that--
(A) each limited tariff benefit contained in a
miscellaneous tariff bill considered in the Senate has
been identified through lists, charts, or other similar
means; and
(B) the information identified in subparagraph (A)
has been available on a publicly accessible
congressional website in a searchable format at least
48 hours before the vote on the motion to proceed to
the miscellaneous tariff bill or the vote on the
adoption of a report of a committee of conference in
connection with the miscellaneous tariff bill, as the
case may be.
(2) Satisfaction of senate rules.--Publication of a
certification in the Congressional Record under paragraph (1)
satisfies the certification requirements of paragraphs 1(a),
2(a), and 3(a) of rule XLIV of the Standing Rules of the
Senate.
(3) Limited tariff benefit defined.--For purposes of this
subsection and consistent with rule XLIV of the Standing Rules
of the Senate, as in effect during the One Hundred Fourteenth
Congress, the term ``limited tariff benefit'' means a provision
modifying the Harmonized Tariff Schedule of the United States
in a manner that benefits 10 or fewer entities.
(c) Enactment as Exercise of Rulemaking Power of House of
Representatives and Senate.--This section is enacted by Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such are
deemed a part of the rules of each House, respectively, and
such procedures supersede other rules only to the extent that
they are inconsistent with such other rules; and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.
SEC. 6. JUDICIAL REVIEW PRECLUDED.
The exercise of functions under this Act shall not be subject to
judicial review.
SEC. 7. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
(2) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(3) Commission disclosure form.--The term ``Commission
disclosure form'' means, with respect to a petition for a duty
suspension or reduction, a document submitted by a petitioner
to the Commission that contains the following:
(A) The contact information for any known importers
of the article to which the proposed duty suspension or
reduction would apply.
(B) A certification by the petitioner that the
proposed duty suspension or reduction is available to
any person importing the article to which the proposed
duty suspension or reduction would apply.
(C) A certification that the petitioner is a likely
beneficiary of the proposed duty suspension or
reduction.
(4) Domestic producer.--The term ``domestic producer'' means
a person that demonstrates production, or imminent production,
in the United States of an article that is identical to, or
like or directly competitive with, an article to which a
petition for a duty suspension or reduction would apply.
(5) Domestic production.--The term ``domestic production''
means the production of an article that is identical to, or
like or directly competitive with, an article to which a
petition for a duty suspension or reduction would apply, for
which a domestic producer has demonstrated production, or
imminent production, in the United States.
(6) Duty suspension or reduction.--The term ``duty suspension
or reduction'' refers to an amendment to subchapter II of
chapter 99 of the Harmonized Tariff Schedule of the United
States for a period not to exceed 3 years that--
(A) extends an existing temporary duty suspension or
reduction on an article under that subchapter; or
(B) provides for a new temporary duty suspension or
reduction on an article under that subchapter.
(7) Likely beneficiary.--The term ``likely beneficiary''
means an individual or entity likely to utilize, or benefit
directly from the utilization of, an article that is the
subject of a petition for a duty suspension or reduction.
(8) Member of congress.--The term ``Member of Congress''
means a Senator or Representative in, or Delegate or Resident
Commissioner to, Congress.
(9) Miscellaneous tariff bill.--The term ``miscellaneous
tariff bill'' means a bill of either House of Congress that
contains only duty suspensions and reductions and related
technical corrections that--
(A) are included in the final report of the
Commission submitted to the appropriate congressional
committees under section 3(b)(3)(E), except for--
(i) petitions for duty suspensions or
reductions that the Commission has determined
do not contain the information required under
section 3(b)(2);
(ii) petitions for duty suspensions and
reductions with respect to which the Commission
has determined the petitioner is not a likely
beneficiary; and
(iii) petitions for duty suspensions and
reductions that the Commission does not
recommend for inclusion in the miscellaneous
tariff bill;
(B) are not excluded under section 3(b)(3)(F); and
(C) otherwise meet the applicable requirements of
this Act.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 4923, the ``American Manufacturing
Competitiveness Act of 2016,'' establishes a process for the
submission and consideration of petitions for temporary duty
suspensions and reductions.
B. Background and Need for Legislation
Since 1982, Congress has passed legislation to temporarily
reduce or suspend tariffs on certain imported products and make
technical corrections to U.S. tariff laws. This legislation is
known as the ``Miscellaneous Tariff Bill'' (MTB). The MTB is
designed to boost the competitiveness of U.S. manufacturers by
lowering the cost of imported inputs without harming domestic
firms that produce competing products. In the case of finished
goods, MTB legislation similarly reduces costs for consumers
where there is no domestic production and thus no impact on
domestic firms. The tariff relief contained in the MTB is
broadly available to any entity that imports the product.
The last MTB passed by Congress expired on December 31,
2012. Since then, U.S. manufacturers have faced an annual $748
million tax increase on their inputs and the U.S. economy has
suffered a $1.875 billion economic loss, according to an
analysis by the National Association of Manufacturers. As a
result, manufacturers in a broad range of industries have
experienced tax burdens and lost jobs, consumers have faced
higher prices, and U.S. businesses have lost their competitive
edge over foreign companies.
This legislation, which creates an open, transparent and
effective process for the House to consider MTBs, will help
American manufacturers regain the ability to compete with
manufacturers from other countries.
C. Legislative History
Background
H.R. 4923, to establish a process for the submission and
consideration of petitions for temporary duty suspensions and
reductions, and for other purposes, was introduced on April 13,
2016, by Chairman Kevin Brady (R-TX), Ranking Member Levin (D-
MI), Trade Subcommittee Chairman Reichert (R-WA), Trade
Subcommittee Ranking Member Rangel (D-NY), and Representatives
Tiberi (R-OH), Blumenauer (D-OR), Reed (R-NY), Pascrell (D-NJ),
Renacci (R-OH), Davis (D-IL), Walker (R-NC), Clyburn (D-SC),
Mulvaney (R-SC), Doyle (D-PA), McClintock (R-CA), Bishop (D-
GA), Rokita (R-IN), Courtney (D-CT), and Blum (R-IA).
Committee hearings
On April 14, 2016, the Subcommittee on Trade held a hearing
on the Miscellaneous Tariff Bill: Helping U.S. Manufacturers
through Tax Cuts. The hearing focused on the U.S. manufacturing
and economic benefits of providing temporary tariff relief on
imported finished goods and raw materials not produced in the
United States. The Subcommittee received testimony from Leib
Oehmig, President and Chief Operating Office of Glen Raven,
Inc.; Dawn Grove, Corporate Counsel, Karsten Manufacturing;
Brooke DiDomenico, Production Manager, Nation Ford Chemical;
and Matthew Schreiber, Global Leader for GORE-TEX Footwear
Innovation, W.L. Gore & Associates.
Committee action
The Committee on Ways and Means marked up H.R. 4923, to
establish a process for the submission and consideration of
petitions for temporary duty suspensions and reductions, and
for other purposes, on April 20, 2016. Chairman Brady offered
an amendment in the nature of a substitute. H.R. 4923 was then
ordered favorably reported to the House of Representatives, as
amended, by a voice vote (with a quorum being present).
II. EXPLANATION OF THE BILL
SECTION 1: SHORT TITLE
Present law
No provision.
Explanation of provision
Section 1 entitles the bill the ``American Manufacturing
Competitiveness Act of 2016.''
Reason for change
The short title reflects the Committee's belief that this
Act will help American manufacturers regain a competitive edge
over manufacturers from other countries.
Effective date
The provision is effective upon enactment.
SECTION 2: SENSE OF CONGRESS ON THE NEED FOR A MISCELLANEOUS TARIFF
BILL
Present law
No provision.
Explanation of provision
Section 2 establishes certain Congressional findings,
including that:
The Harmonized Tariff Schedule (HTS) imposes
duties on imported goods for which there is no or
insufficient domestic availability, and the imposition
of duties on such goods creates artificial distortions
in the U.S. economy that negatively affect U.S.
manufacturers and consumers.
U.S. manufacturing competitiveness will be
enhanced if Congress regularly and predictably updates
the HTS to suspend or reduce duties on such goods.
Creating and maintaining an open and
transparent process for consideration of petitions for
duty suspensions and reductions builds confidence that
the process is fair, open to all, and free of abuse.
Complying with the Rules of the House and
the Senate is essential to fostering and maintaining
confidence in the process for considering a
miscellaneous tariff bill (MTB).
An MTB developed under this process will not
contain any Congressional earmarks (or congressionally
directed spending items) or limited tax benefits within
the meaning of House or Senate Rules.
Because any limited tariff benefits
contained in any MTB following the process set forth by
this Act will not have been the subject of legislation
introduced by an individual Member of Congress and will
be fully vetted through a transparent and fair process
free of abuse, it is appropriate for Congress to
consider limited tariff benefits as part of that MTB as
long as:
in the case of an MTB considered in the
House, consistent with the Rules of the House,
a list of such limited tariff benefits is
published in the reports of the Committee on
Ways and Means accompanying the MTB, or in the
Congressional Record; and
in the case of an MTB considered in the
Senate, such limited tariff benefits are
identified and made available consistent with
the Standing Rules of the Senate.
When this process is followed, it is
consistent with the letter and intent of the Rules of
the House and the Senate and other related guidance.
Section 2 also expresses a Sense of Congress that, to
remove the competitive disadvantage to U.S. manufacturers and
consumers and to promote the competitiveness of U.S.
manufacturers, Congress should, not later than 90 days after
the U.S. International Trade Commission (ITC) issues a final
report on petitions for duty suspensions and reductions
required by section 3 of this bill, consider an MTB.
Reason for change
Recognizing that businesses in the United States have faced
an annual $748 million tax increase on manufacturing and the
U.S. economy has suffered a $1.875 billion economic loss since
the expiration of the last MTB in 2012, the Committee has
developed a new process for consideration of an MTB in a manner
that is open, transparent, free of abuse, and consistent with
House Rules for disciplining earmarks. Pursuant to clause 9 of
Rule XXI of the House Rules and related guidance, limited
tariff benefits (LTBs), or provisions modifying the Harmonized
Tariff Schedule of the United States in a manner that benefits
10 or fewer entities, may be considered by the House if no
Member has introduced them and if the Ways and Means Chairman
certifies that there are no earmarks and publishes a list of
the LTBs. The Committee believes that when the process set
forth in this bill is followed, it is consistent with the
letter and intent of the Rules of the House and the Senate and
other related guidance.
Under this new process, U.S. manufacturers will be able to
lower costs, create new jobs, increase U.S. production, reduce
consumer prices, and regain their competitive edge over
manufacturers from other countries.
The Committee intends to consider a Miscellaneous Tariff
Bill in the fall of 2017 and the fall of 2020.
Effective date
The provision is effective upon enactment.
SECTION 3: PROCESS FOR CONSIDERATION OF PETITIONS FOR DUTY SUSPENSIONS
AND REDUCTIONS
Present law
No provision.
Explanation of provision
Section 3(a) states that the purpose of this section is to
establish a process for the submission and consideration of
petitions for duty suspensions and reductions.
Section 3(b)(1) requires the ITC to initiate the process by
publishing a notice on a publicly available website and in the
Federal Register requesting members of the public who can
demonstrate that they are ``likely beneficiaries'' of duty
suspensions or reductions to submit petitions and Commission
disclosure forms to the ITC within 60 days of the notice.
Section 3(b)(2) establishes the information that each
petition must contain.
Section 3(b)(3) sets out the ITC's review process. As soon
as practicable after the expiration of the 60-day period in
section 3(b)(1), the ITC shall publish on its publicly
available website the petitions that meet the requirements of
section 3(b)(2) and the corresponding Commission disclosure
forms. The public will have 45 days from the date of this
publication to provide comments to the ITC on the posted
petitions, and the ITC shall publish these comments on in the
Federal Register and on its website.
Section 3(b)(3)(C) provides that no later than 150 days
after the ITC's publication of the petitions, the ITC shall
submit a preliminary report on the petitions to the Committee
on Ways and Means of the House and the Committee on Finance of
the Senate (the Committees) with its analysis and
recommendations regarding the petitions, including whether
there is ``domestic production,'' an estimated cost of the duty
reduction, and the likely beneficiaries. The ITC shall classify
petitions into categories based on whether: (1) the ITC
recommends inclusion without modification; (2) the ITC
recommends inclusion with specified technical changes,
adjustments in product scope, or adjustments in the amount of
duty reduction; (3) the ITC recommends not including because
the petition did not meet the petition requirements or the
petitioner was not a likely beneficiary; (4) the ITC otherwise
recommends not including. With respect to the latter category,
section 3(b)(3)(D) provides that the ITC shall consider any
information submitted by the Committees. Under section
3(b)(3)(E) the ITC shall then prepare a final report, due no
later than 60 days after submission of the preliminary report,
to update the preliminary report and to state whether each
provision is administrable, has an estimated cost that does not
exceed $500,000, and is available to any person importing it.
Section 3(b)(3)(F) provides that the Committees may exclude
provisions from a miscellaneous tariff bill based on the ITC's
recommendations, an objection from a Member of Congress, or
domestic production. However, the Committees cannot add
products that did not either (1) receive a favorable
recommendation from the Commission; or (2) undergo the
processes required by this section.
Section 3(b)(4) requires the ITC to comply with the
procedures concerning the release of confidential business
information set forth in section 332(g) of the Tariff Act of
1930 when it posts petitions on its website and in its
preparation of reports for Congress.
Section 3(b)(5) requires the ITC to prescribe and publish
procedures required for submitting petitions for duty
suspensions and reductions on its website and in the Federal
Register.
Section 3(c) requires the Secretary of Commerce, in
consultation with U.S. Customs and Border Protection and other
relevant Federal Agencies, to submit to the ITC and the
Committees a report on each petition that includes: 1) a
determination of whether there is domestic production of the
article that is the subject of the petition, and if so, whether
a domestic producer objects to the petition, and 2) any
technical changes to the article description that are necessary
for the purpose of administration when the articles are
presented for importation.
Reason for change
The Committee believes that the process for consideration
of a miscellaneous tariff bill should begin exclusively through
petitions made by businesses to the independent, non-partisan
International Trade Commission (ITC). Such a process provides
ample opportunity for local businesses to petition for relief
in a manner that is consistent with House Rules and related
guidance, to which the Committee is fully committed.
The Committee places great importance on the transparency
requirements of section 3. The fair, open, and transparent
process established under the Act will allow the American
people to see the petitions, comment on them, and access the
ITC's recommendations to Congress. Moreover, it is the
Committee's intention that this full transparency be maintained
throughout the process in a manner that does not compromise
business confidential information.
In establishing under section 3(b) the information
requirements that each petitioner must include in a petition,
the Committee believes that the ITC should be as thorough as
possible and take into account the recommendations of relevant
Federal agencies. The Committee emphasizes that the list of
items specified in the legislation for inclusion in the
petition is not exhaustive, and the ITC may require further
information from petitioners so that the ITC and relevant
Federal agencies can conduct a complete and efficient analysis.
The Committee also expects that the list of items should
include a notation as to whether the petitioner is submitting
confidential business information, and that information shall
be treated in compliance with statutory procedures.
The Committee also believes that the ITC should establish
clear standards for determining the sufficiency of each
petition. If a petitioner does not provide information required
by the ITC and the Administration in the petition or does not
fully respond to a request by those agencies later in the
process, then that petition could be deemed insufficient by the
ITC.
The Committee believes that the ITC should require that
only one product be included per petition and that the ITC
should consolidate identical petitions.
Finally, the Committee expects that petitioners will be
required to submit legislative text using a format provided by
the ITC so that the Committee process of preparing final
legislation is expedited.
The Committee expects that the ITC's website will contain a
fully searchable portal for submission of petitions and
comments, with all information available to the public,
Congress, and the Administration. The Committee believes that
the ITC's website will increase efficiency and transparency in
the review of petitions by the public and the Administration.
The Committee expects the ITC to post petitions and comments on
a rolling basis, thereby permitting the public and the
Administration to review and analyze the petitions and to
submit their views as early in the process as possible.
Section 3(c) provides an opportunity for the Administration
to provide a report to the ITC that includes information
related to technical changes and domestic production, as well
as any other information the agencies deem relevant to submit
for consideration. Throughout this process, the Committee is
committed to working with the relevant Federal agencies,
including the Department of Commerce (Commerce), U.S. Customs
and Border Protection (CBP), and the Office of the United
States Trade Representative (USTR), so that they can make their
views and analysis on the petitions known to the Committees and
to the public based on all of the information presented to the
ITC in the petitions. The Committee believes that these
agencies provide an enormously useful and valuable
contribution, which allows the Committee to conduct the best
analysis possible. The Committee expects that the
Administration's report will be thorough and complete based on
the information available to the Administration at the time of
submission. In addition, the Committee expects that if the
Administration has any additional views or information to share
after the report is issued, it will provide such views or
information to the ITC and the Committee after the report is
submitted. The Committee is committed to taking into account
the views and information submitted by the agencies, the ITC,
and the public throughout the process, including up until the
Committee finalizes the miscellaneous trade bill for
Congressional consideration.
The Committee expects a significant number of petitions to
be submitted to the ITC for review, and to this end, greatly
appreciates the amount of time and resources that the ITC and
the Administration will be dedicating to reviewing petitions.
Accordingly, the Committee has built in timelines it considers
to be reasonable, weighing the time needed by the ITC and the
Administration to conduct a thorough analysis against the
importance of an expedient and efficient process to address the
harm done to U.S. manufacturers in the absence of the MTB.
Finally, the Committee believes that it is essential that
each product included in a miscellaneous tariff bill is non-
controversial and that the MTB does not contain controversial
products. The Committee affirms that, as in the past, a product
will be considered controversial if, for instance, another
Member objects to the product or if a domestic producer objects
to the product. If a product is deemed controversial in nature,
it will be ineligible for inclusion in the MTB.
Effective date
The provision is effective upon enactment.
SECTION 4: REPORT ON EFFECTS OF DUTY SUSPENSIONS AND REDUCTIONS ON U.S.
ECONOMY
Present law
No provision.
Explanation of provision
Section 4 requires the ITC to submit a report to the
Committees, no later than 12 months after enactment of an MTB,
on the effects on the U.S. economy of duty suspensions and
reductions enacted pursuant to this Act, including a broad
assessment of the economic effects of such duty suspensions on
producers, purchasers, and consumers in the United States,
using case studies describing such effects on selected
industries or by type of article as available data permits. The
ITC shall also solicit and append to the report recommendations
with respect to those domestic industry sectors or specific
domestic industries that might benefit from permanent duty
suspensions or reductions, either through unilateral action of
the United States or through negotiations for reciprocal tariff
agreements, with a particular focus on inequities created by
tariff inversions. These reports shall be unclassified, but may
include a classified annex.
Reason for change
Section 4 requires the ITC to investigate and recommend to
Congress those domestic industries or sectors that might
benefit from permanent duty suspensions or reductions, either
through unilateral action of the United States or through
negotiations for reciprocal tariff agreements. The Committee
requires the ITC to give special emphasis on the significant
inequities caused by tariff inversions, in which tariffs on
imported components are higher than tariffs for finished goods.
Such tariff inversions discourage U.S. manufacturing because it
is cheaper to import the finished product than to import
components for manufacture in the United States. The Committee
believes this analysis gives Congress necessary information to
determine where permanent changes to the U.S. tariff code are
particularly warranted to help U.S. manufacturers and
consumers, while maintaining U.S. leverage in trade
negotiations.
Effective date
The provision is effective upon enactment.
SECTION 5: PUBLICATION OF LIMITED TARIFF BENEFITS IN THE HOUSE OF
REPRESENTATIVES AND THE SENATE
Present law
No provision.
Explanation of provision
Section 5(a) requires the chair of the Committee on Ways
and Means of the House to include a list of limited tariff
benefits contained in a miscellaneous tariff bill in the report
to accompany such a bill or, in a case where a miscellaneous
tariff bill is not reported by the committee, to cause such a
list to be printed in the appropriate section of the
Congressional Record. For the purposes of this subsection and
consistent with clause 9 of rule XXI of the Rules of the House,
the term ``limited tariff benefit'' means a provision modifying
the Harmonized Tariff Schedule of the United States in a manner
that benefits 10 or fewer entities.
Section 5(b) requires the chairman of the Committee on
Finance of the Senate, the Majority Leader of the Senate, or
the designee of the Majority Leader of the Senate, to provide
for the publication in the Congressional Record of a
certification that 1) each limited tariff bill contained in a
miscellaneous tariff bill considered in the Senate has been
identified through lists, charts, or other similar means, and
2) any such information identified has been available on a
publicly accessible congressional website in a searchable
format at least 48 hours before the vote on the motion to
proceed to the miscellaneous tariff bill or the vote on the
adoption of a report of a committee of conference in connection
with the miscellaneous tariff bill, as the case may be.
Publication of a certification in the Congressional Record
satisfies the certification requirements of paragraphs 1(a),
2(a), and 3(a) of rule XLIV of the Standing Rules of the
Senate. For purposes of this subsection and consistent with
rule XLIV of the Standing Rules of the Senate, as in effect
during the One Hundred Fourteenth Congress, the term ``limited
tariff benefit'' means a provision modifying the Harmonized
Tariff Schedule of the United States in a manner that
identifies 10 or fewer entities.
Section 5(c) establishes that this section is enacted by
Congress as 1) an exercise of the rulemaking power of the House
and the Senate, respectively, and as such are deemed a part of
the rules of each House, respectively, and such procedures
supersede other rules only to the extent that they are
consistent with such other rules, and 2) with full recognition
of the constitutional right of either House to change the rules
(so far as relating to the procedure of that House) at any
time, in the same manner, and to the same extent as in the case
of any other rule of that House.
Reason for change
Consistent with House Rules, the House may consider LTBs if
no Member has introduced them and the Chairman of the Ways and
Means Committee publishes a list of these LTBs in the committee
report or Congressional Record. This section requires such
publication, making this process consistent with House Rules.
Effective date
The provision is effective upon enactment.
SECTION 6: JUDICIAL REVIEW PRECLUDED
Present law
No provision.
Explanation of provision
Section 6 establishes that the exercise of functions under
this Act shall not be subject to judicial review.
Reason for change
The exercise of functions under this Act are not
appropriate for judicial review.
Effective date
The provision is effective upon enactment.
SECTION 7: DEFINITIONS
Present law
No provision.
Explanation of provision
Section 7 defines certain terms in this Act.
Section 7(4) defines ``domestic producer'' as a person that
demonstrates production, or imminent production, in the United
States of an article that is identical to, or like or directly
competitive with, an article to which a petition for a duty
suspension or reduction would apply.
Section 7(6) defines ``duty suspension or reduction'' as
extending, for a period not to exceed 3 years, a new or
existing temporary duty suspension or reduction.
Section 7(7) defines ``likely beneficiary'' as an
individual or entity likely to utilize, or benefit directly
from the utilization of, an article that is the subject of a
petition for a duty suspension or reduction.
Reason for change
This section ensures that the terms used in this bill have
the meaning intended by Congress.
Effective date
The provision is effective upon enactment.
III. VOTES OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the vote of the Committee on Ways and Means in its
consideration of H.R. 4923, the American Manufacturing
Competitiveness Act of 2016, on April 20, 2016.
The bill, H.R. 4923 was ordered favorably reported to the
House of Representatives as amended by a voice vote (with a
quorum being present).
IV. BUDGET EFFECTS OF THE BILL
With respect to clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives, an estimate and comparison
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act of 1974 was
not submitted to the Committee before the filing of the report.
With respect to clause 3(d) of rule XIII of the Rules of
the House of Representatives, the committee estimates that H.R.
4923 will result in no direct spending and will have no revenue
impact.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives (relating to oversight findings),
the Committee advises that it was as a result of the
Committee's review of the provisions of H.R. 4923 that the
Committee concluded that it is appropriate to report the bill,
as amended, favorably to the House of Representatives with the
recommendation that the bill do pass.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill contains no measure that authorizes funding, so no
statement of general performance goals and objectives for which
any measure authorizes funding is required.
C. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. L. No.
104-4).
The Committee states that there are no provisions that
would impose a private sector mandate, as defined by UMRA,
intergovernmental mandates or costs on state, local, or tribal
governments.
D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
E. Duplication of Federal Programs
In compliance with Sec. 3(g)(2) of H. Res. 5 (114th
Congress), the Committee states that no provision of the bill
establishes or reauthorizes: (1) a program of the Federal
Government known to be duplicative of another Federal program;
(2) a program included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139; or (3) a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
F. Disclosure of Directed Rule Makings
In compliance with Sec. 3(i) of H. Res. 5 (114th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that the bill requires no
directed rule makings within the meaning of such section.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e)(1) of rule XIII of the Rules
of the House of Representatives, the committee advises that
H.R. 4923 does not propose to repeal or amend any statute or
part thereof.
VII. EXCHANGES OF LETTERS WITH ADDITIONAL COMMITTEES OF REFERRAL
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