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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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