Ways and Means Plans Work on CBP Bill, Comments on MTB, China Currency

Committee Will Continue to Pursue “Make it in America” Agenda After Elections

The Chairman stated that when the Committee returns after the November elections, it will continue to pursue the “Make it in America” agenda. According to the Chairman, he plans for the Committee to work on Customs reauthorization legislation, Super 301 legislation, and the transfer pricing issue.

Customs reauthorization. One source recently expressed the opinion that after the November elections, the House was expected to advance its own Customs reauthorization bill.

The Senate’s Customs reauthorization bill (S. 1631) was introduced in October 2009 and would allow the use of 10+2 data for commercial enforcement; require more C-TPAT benefits; create an entry facilitation partnership program; reorganize CBP to emphasize commercial operations; add a new Principal Deputy Commissioner as a political appointee; etc. (See ITT's Online Archives or 09/22/09 news, 09092215, for the final part of BP's 12-part summary of S. 1631, with links to the other parts in the series.)

Super 301. On July 30, 2010, H.R. 6007, the Trade Enforcement Priorities Act, was introduced to amend 19 USC 2420 to strengthen provisions relating to the identification of U.S. trade expansion priorities. H.R. 6007 would reinstate a modified "Super 301" authority.

(Super 301 was initially mandated by the Omnibus Trade and Competitiveness Act of 1988 for a two-year period. It was reinstituted by Executive Order in 1994 for a two-year period, and extended in 1995 to calendar years 1996 and 1997. On April 1999, Super 301 was again reinstituted by Executive Order for the years of 1999-2001. It has not been renewed since then.)

Transfer pricing. The House Ways and Means Committee held a hearing on transfer pricing issues on July 22, 2010. According to the Committee, the transfer pricing rules have been updated and modified many times over the last decade, yet still foster controversy. (Transfer pricing is the price one company charges a related entity for the transfer of goods or services.) (See ITT’s Online Archives or 07/19/10 news, 10071912, for BP summary announcing hearing on issue.)

Chairman Discusses Possibility of Second MTB Before End of Year

The Chairman also noted that he hopes that the Committee will be able to act on a second miscellaneous trade and tariff bill (MTB) before the end of the Congressional session, but does not know if there will be enough time or whether there will be Republican opposition.

(The Committee has previously stated that individual bills under consideration for a MTB that were not included in H.R. 4380 would be considered in a second MTB package at a later date.)

(On August 11, 2010, the President signed into law H.R. 4380, the U.S. Manufacturing Enhancement Act of 2010 (also known as the Miscellaneous Trade and Technical Corrections Act of 2009, or MTB) as part of the House Democrats’ “Make it in America” agenda. See ITT’s Online Archives or 08/12/10 news, 10081218, for BP summary.)

Senate Action on China Currency May Depend on Outcome of G20 Meetings

When questioned about possible Senate action on the China currency issue, the Chairman’s opinion was that such action may depend on the results of the G20 meetings scheduled for November 11-12, 2010. The Chairman stated that a multilateral effort is preferable, and noted that the House took action on China’s undervalued currency because no one else had. According to the Chairman, if there is no major change in the China currency situation before Congress reconvenes on November 15, 2010, the likelihood of Senate action will increase.

(On September 29, 2010, the House of Representatives passed H.R. 2378, the Currency Reform for Fair Trade Act, by a vote of 348 to 79. H.R. 2378 would amend U.S. countervailing duty law under 19 USC 1677 to allow (but not require) the International Trade Administration to impose countervailing duties to address subsidies related to a “fundamentally undervalued currency.” (See ITT’s Online Archives or 09/27/10 news, 10092716, for BP summary of the bill’s requirements.)

House Concern on China Currency Echoed by White House

At an October 7, 2010 White House press briefing, the White House spokesman stated that the Administration is watching and evaluating the measures and steps that China is taking related to its currency.

The White House spokesman responded by a question regarding the recently-passed House currency legislation by stating that the legislation demonstrates that there is a bipartisan recognition that China’s undervalued currency if of concern, and noted that this concern is also felt by the White House.

Chairman Says Outsourcing Legislation Unlikely to be Considered This Year

The Chairman noted that outsourcing/offshoring legislation is unlikely to be taken up in the lame duck session after the elections. According to the Chairman, the issue will likely have to be considered next year as part of tax reform.

(See ITT’s Online Archives or 09/30/10 news, 10093012, for BP summary of the Senate’s failure to move forward on Senate offshoring legislation (S. 3816).)