In the chemical distribution industry, successfully navigating international trade issues is paramount. Nearly every NACD member depends upon effective trade programs to support and grow their business. With the expiration of two critical trade programs and the expected shifts in policies with the new administration, NACD is working with our members to continue advocating for commonsense trade programs and is offering new tools to help members navigate the ever-changing trade landscape.
The recently expired Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB) programs were designed to provide duty-free tariff treatment to certain products for an established amount of time. These preference programs may not be exclusively focused on the chemical distribution industry, but both reduce costs for importers, which by extension, support good-paying jobs for our members.
While we are hopeful that the Biden administration will take a strong stance on the need to expedite renewal, the Congressional debate over both programs continues to stall progress.
When GSP last expired in 2017, it took Congress several months to renew the program. During that lapse, imports from GSP-eligible countries were subject to duties and many companies were forced to cut wages and lay off workers to offset the increased costs. When the program was finally renewed, Congress extended the program retroactively from the original expiration date so that importers were refunded for duties incurred.
But the stakes are much higher now. As our economy works to recover from the Coronavirus, stimulus checks are great, but jobs are better. Our policy makers should do everything they can to stem more job losses, including renewing GSP and MTB. That’s why NACD remains hard at work, actively communicating with Congressional Committees and advocating for a clean and swift renewal of both programs to provide certainty for importers, especially those hard-hit by the economic fallout from COVID-19.
On a parallel track, we’re excited to offer two important resources to help members navigate the ever-changing tariff and trade policy landscape this year.
For the first time, NACD U is offering a series of regulatory courses entirely focused on import compliance. Created in partnership with BDP International, each module will cover the ins and outs of international importing regulations and detail what actions importers need to take to remain compliant.
The first of seven modules is available now and covers the reasonable care standard for importers, liquidation, Customs and Border Protection communication, and actions to take before and after bringing in goods. The second module will be available to members in the NACD U portal beginning next month.
We’re also excited about our upcoming Virtual Regulatory Trade Workshop which kicks off on February 9. We’ll be joined by keynote speaker, Deborah B. Stern of Sandler, Travis, & Rosenberg, P.A. who advises domestic and multinational clients on both U.S. and foreign customs compliance and other trade matters.
The three-day workshop will present a thoughtful primer for companies who may be considering taking their business international and also provide helpful “trade remedies” for veteran international importers who are interested in cost-saving strategies to reduce duties.
Whether your company is launching a trade program for the first time or has a long history of international trade, NACD is here to provide meaningful opportunities to expand your knowledge while advocating for sound trade policies on the industry’s behalf.
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