Correction To Trade Law To Cut Costs For US Business

by Mike Godfrey, Tax-News.com, Washington

24 March 2006

The United States House of Representatives has approved new legislation which corrects technical errors in trade laws by reducing tariffs on imported components used by American manufacturers.

The Miscellaneous Trade and Technical Corrections Act of 2006, which was approved after a 412 – 2 bipartisan vote, seeks to lower the cost of inputs for U.S. manufacturers and allow them to increase production in the U.S.

"This bill reduces tariffs on products not available in the U.S. and used primarily to make other goods that produce value in this country," explained House Ways and Means Chairman Bill Thomas (R-CA).

"Removing these tariffs will help reduce costs for American businesses. This is absolutely the right thing to do," he asserted.

E. Clay Shaw, Jr. (R-FL), Chairman of the Ways and Means Subcommittee on Trade, added that: "This bipartisan cooperation has produced many common sense provisions that will make American businesses and workers more competitive, in addition to saving American consumers money."

A miscellaneous trade bill is usually considered every Congress.

The Ways and Means Committee puts the cost of the legislation at less than $500,000 per year.

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