America COMPETES Act of 2022 Could Bring Changes on Imports
New legislation(H.R. 4521), America COMPETES Act of 2022, introduced into the House of Representatives on Jan 24 may move quickly. If passed, there may be several changes related to U.S. imports.
Here are some of the proposals to be aware of:
- General System of Preferences (GSP) - Reauthorization through Dec 31, 2024, retroactive to Dec 30, 2020. The legislation could also bring new human rights and anti-poverty requirements for countries to maintain their eligibility. GSP provides duty-free treatment on eligible goods from certain countries.
- Miscellaneous Tariff Bill (MTB) - Legislation includes duty suspensions and reductions for imports through Dec 31, 2023. It could reauthorize the MTB process for two cycles, starting in 2022 and 2025, but exclude finished products from inclusion in future MTBs. It may also provide a four-month retroactive period.
- De Minimis - Updates could include eliminating Section 321 entry use on low-value shipments (under $800) entering the U.S. from non-market economies that are also on the U.S. Trade Representatives' priority watch list for Intellectual Property Rights violations. China is the only country that meets both of these points. Also, U.S. Customs may be required to collect more data than in the past on this entry type and have more enforcement measures in place for those who abuse de minimis.