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Stalemate on Temporary Import Duty Suspensions Continues

International Law Office
May 28, 2010

A partisan Congressional battle over the use of earmarks means that many U.S. companies are currently paying duties on products that had been duty-free before this year – and many other companies are missing out on getting temporary relief from duties on additional products they had hoped would get the benefit starting this year. Earmarks are usually provisions in legislation that direct that funds be used for a particular project (usually in the home district or state of the Member of Congress who proposes it), but a decision by Republicans in the House of Representatives to adopt “a unilateral moratorium on all earmarks, including tax and tariff related earmarks” has ensnared bills that direct that import duties not be collected. The time may be ripe for a significant reconsideration of the process by which these bills are considered.

This Sidley Update was republished by ILO in its Trade & Customs Newsletter.

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