Miscellaneous Tariff Bill Key for Small, Mid-sized Companies in Supply Chain
January 16, 2018
One AIA activity that tended to fly under the radar this past year was our advocacy in support of the “Miscellaneous Tariff Bill Act (MTB) of 2017” (H.R. 4318 and S. 2108)”. This bill, though not as well-covered in the press as larger, economically-focused measures like tax reform, is integral to small and medium sized companies in the aerospace and defense industry supply chain.
The MTB bill would eliminate duties on imported products for which there is no – or insufficient – domestic production and availability. Many American suppliers have no domestic option for necessary items and through out-of-date tariffs are forced to pay more than their international competitors. These unfair and anti-competitive tariffs harm our domestic companies by increasing the cost of their supply chain, ultimately reducing U.S. exports.
While ensuring that existing domestic manufacturers will not be harmed, the MTB would allow Congress to eliminate nearly 1,800 taxes, totaling more than $350 million in 2018, on imported products not available in the United States. The resulting increase in available funds at these small and medium suppliers could be reinvested in U.S. manufacturing, supporting existing domestic operations, maintaining and expanding American jobs, and bolstering global competitiveness for our domestic producers.
AIA wholeheartedly supports this bill because it would improve our member companies’ ability to maintain and grow the 2.4 million jobs currently supported by our industry. It particularly provides an advantage to companies in the aerospace and defense supply chain, by facilitating the import of materials needed to create quality final products in a cost-effective manner. As Congress considers all their options to promote U.S. manufacturing, we would encourage a quick passage of the MTB so our members companies can increase investments in American jobs.