On May 20, President Obama signed the American Manufacturing Competitiveness Act of 2016. The bipartisan, bicameral legislation, which was passed overwhelmingly in the House and by unanimous consent in the Senate, reforms the way Congress considers Miscellaneous Tariff Bills (MTBs) – tariff relief – for certain products used in U.S. manufacturing operations. MTBs have failed to advance since 2012 when Republican opposition to earmarks brought the process to a halt. The new law resolves the issue by assigning the U.S. International Trade Commission (ITC) to determine whether the statutory criteria for relief are met, rather than having the constituents request duty suspensions from their representatives or senators. If the requirements are met, the ITC will submit a package to Congress, which will then examine the proposal, draft a bill and exclude proposed products if objections are raised.

Takeaway: With passage of the American Manufacturing Competitiveness Act, MTBs may have an easier path forward in the future.