Walorski Applauds USTR Decision to Provide Tariff Relief to RV Manufacturers

Monday, October 28, 2019

Walorski Applauds USTR Decision to Provide Tariff Relief to RV Manufacturers

Legislative Fix Championed by Walorski Paved Way for Duty-Free Treatment for Lauan Plywood

MISHAWAKA, Ind. – U.S. Rep. Jackie Walorski (R-Ind.) today applauded a decision by the U.S. Trade Representative (USTR) to grant duty-free treatment for lauan plywood, which will provide cost-saving tariff relief and long-term certainty for American RV manufacturers.

“Northern Indiana is the RV Capital of the World, so Hoosiers know the vital role RV manufacturing plays in growing our nation’s economy,” Congresswoman Walorski said. “RV manufacturers were facing unnecessary costs and red tape because of an outdated law, so I worked with them to fix it and make tariff relief possible. I’m thrilled USTR has granted tariff-free treatment for lauan wood, which will save this made-in-America industry $1 million in duties each month and provide long-term certainty for job creators.”

BACKGROUND

In 2018, provisions authored by Walorski to fix outdated provisions in the Generalized System of Preferences (GSP) program were signed into law as part of broader legislation. Walorski had previously introduced the Competitive Need Limitations Modernization Act (H.R. 4068) to fix two issues in the GSP program that led to unnecessary costs and paperwork for American manufacturers.

The GSP program lowers costs for American businesses, workers, and consumers by reducing or eliminating duties on a range of products imported from developing countries. To be eligible, a product cannot exceed dollar and percentage thresholds, called competitive need limitations (CNLs). USTR may grant a CNL waiver under certain conditions, such as U.S. national security interests, no domestic production, or low total imports.

However, a waiver on the grounds of no domestic production can only be granted if there was no production on January 1, 1995. Walorski’s legislation changed the fixed date to a period of the previous three years. Additionally, the legislation aligned the CNL waiver application deadline with the reporting of full-year trade data to ensure all relevant information is available to businesses.

Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee.

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