In years past, the NACD Washington Fly-In has been a cornerstone of our association’s advocacy efforts, helping to bring together members from across the nation to meet with their Members of Congress and educate them about the issues impacting chemical distributors. We’ve missed the opportunity to conduct these important meetings in person over the past couple of years. But this July, 50 NACD members are heading to our nation’s capital to talk about the biggest issues facing businesses like ours: the resurrected superfund tax and trade barriers that are driving up our costs.
As the nation deals with increased inflation and supply chain shortages, the IRS is set to revive a more than 25-year-old tax on certain chemicals, known as the superfund excise tax. This tax couldn’t come at a worse time for our industry, and the IRS has not yet provided chemical distributors with the information they need to ensure compliance. Attendees are using this year’s Fly-In to talk to Members of Congress about the impact that this tax is going to have on their businesses and consumers.
Congress has also not acted to renew two critical trade programs which have expired – the Generalized System of Preferences (GSP) and the Miscellaneous Tariff Bill (MTB). The expiration of these two programs has meant higher tariffs on many products that NACD members import (also known as section 301 tariffs), leading to higher costs for consumers and exacerbating inflation. In addition, the Biden administration has kept in place tariffs on many Chinese goods, including chemical products. While we support efforts to hold China accountable, we will use the Fly-In to make clear to Congress that these efforts should not penalize American businesses. Congress needs to act to renew GSP and MTB and to pressure the Biden administration to open a new tariff exclusion process for chemical products subject to the 301 tariffs.
The Fly-In also presents an opportunity to applaud Congress for getting the Ocean Shipping Reform Act of 2022 (OSRA) to the president’s desk. Thanks to Congress and President Biden, the U.S. Federal Maritime Commission (FMC) is now empowered to hold ocean carriers accountable for high shipping rates, anticompetitive practices, and arbitrary decision-making. We are urging swift and robust implementation of OSRA, as well as further regulatory actions by the federal government to crack down on bad ocean carrier practices and develop new plans for port infrastructure across the United States.
As chemical distributors, our role is to deliver the vital formulations used in goods that support everyday life. We also have a significant impact on the U.S. economy. Our members directly employ over 75,000 people and generate almost $24 billion in direct economic output each year. It’s important that Members of Congress hear all our voices on the policy issues impacting our industry and the millions of Americans that rely on it every day. There is still time to add your voice.
Visit our Washington Fly-In page to learn how you can get involved and register today!
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