Miscellaneous Tariff Bill Blocked in Senate
Passage of the Miscellaneous Tariff Bill in the Senate is blocked because Sen. Roy Blunt, R-Mo., is asking that his OUTDOOR Act move with it, or get a vote on its own. Blunt, in a brief hallway interview on June 19, said he has a hold on the MTB, though he doesn't know if his is the only hold. The OUTDOOR Act would eliminate tariffs on 69 recreational outerwear items (see 1708140031). Although those goods would no longer be subject to tariffs, the importer would pay a 1.5% fee on clothing from most countries, and that money would seed a Sustainable Textile and Apparel Research Fund.
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Neither the Senate nor the House version of the bill has gotten a markup in the respective committees of jurisdiction. Blunt did not explicitly say what it would take to remove his hold, but said that if the OUTDOOR Act were to get a vote, "that would be significant to me."
The MTB in the Senate has changed since the House passed it Jan. 16, by a 402-0 vote (see 1801170012). The International Trade Commission classified 1,825 products as qualifying for tariff-free or lower tariff status because there is no domestic competition, mostly chemicals, machinery and equipment, textiles, apparel and footwear. According to trade lobbyist Ron Sorini, Sen. Sherrod Brown, D-Ohio, convinced his fellow senators to strip out petitions approved by the International Trade Commission on automotive products that come from China. Brown's office didn't comment.
There were items in the MTB that were outdoor recreational apparel -- down jackets, recycled fiber shirts, hiking boots -- but all of the petitions were rejected by the ITC either because of domestic objections or because CBP said the items were too specific, and it would have to do a physical inspection to verify each fell within the scope of the description.
Sorini said leadership's plan for the bill is for it to move as a stand-alone bill through unanimous consent. He said, "The House has already accepted the changes." So, if it is able to overcome all senators' objections, and get a vote, the new version will return to the House. There, it "will pass by suspension calendar," he said. The tariff reductions and eliminations through MTB expired years ago. This bill would lower tariffs through Dec. 31, 2020, and would take effect 30 days after enactment. Extending the expiration for customs user fees is the pay-for to offset lost tariff revenue.