Importers Hail Tariff Deferral, Call for Broader Use
Importers hailed the temporary duty deferral announced April 19 (see 2004200024), even as many said applying it to Section 301 is also needed. Apparel faces some of the highest Most Favored Nation tariffs, which are the only category the duty deferral applies to. American Apparel and Footwear Association CEO Steve Lamar said: “Deferring duty payments and import fees in a time of limited liquidity is a welcome move. As revenue has receded due to closed stores and less commerce, American companies have been faced with the difficult decision to pay their tariff bill to the U.S. government or keep American workers on payroll. The deferral of these payments will provide some of the liquidity needed to keep more Americans employed and more American companies operational during this crisis,” He said, however, that Section 301 duties should be included.
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Information Technology Industry Council CEO Jason Oxman said: “The President’s action to defer collection of select tariffs for certain importers is an important step in providing businesses with the necessary liquidity to address the challenges presented by COVID-19. While we welcome the President’s action to alleviate tariff burdens on some U.S. industry and consumers as a means to support the U.S. economic and public health response to the outbreak, we urge more expansive action for the more than $370 billion of goods subject to Section 301 tariffs."
The National Retail Federation said: "The White House announcement that the government is providing a limited duty deferral for importers is welcome news to retailers struggling to find any good news during this extremely difficult time. We encourage the administration to broaden these deferrals for additional relief."
Former administration official Kelly Ann Shaw also said the deferral did not go far enough. Shaw, a partner at Hogan Lovells, said: "A 90-day delay in the collection of tariffs not only is consistent with the President’s decision to allow for a 90-day delay in tax payments but, at a time when businesses are desperate for liquidity, it’s absolutely the right thing to do. However, there are still more tools in the President’s trade toolbox that can be used to help get lifesaving equipment into the hands of those who need it, as well as help our companies get back on their feet."
The National Council of Textile Organizations said the deferral is counterproductive. "This move contradicts the administration’s top stated priority of rebuilding American manufacturing and buying American and could have severe negative implications for the entire U.S. textile industry, whose companies and workforce already are facing enormous economic hardship."