Taxes, Tariffs & Trade
NAFEM Export Assistance Advisory Council Member Kurt Bahnmaier, FETCO Corp., attended a seminar covering a little known topic that could prove a tremendous tax benefit to many of you who export foodservice equipment and supplies: the Extraterritorial Income Exclusion (ETI). It’s a way to deduct the value if your foreign sales from your corporate tax returns, resulting in significant savings and perhaps even a refund from the IRS.
NAFEM is working aggressively with coalition partners to achieve a better balance between steel manufacturers and steel users in our international trade policies.
The Consumer-Industry Trade Action Committee (CITAC), of which NAFEM us a member, is campaigning to obtain relief from the recently imposed Section 201 tariffs on most carbon and some heavier than stainless sheet and strip were exempted (at NAFEM’s request)., NAFEM will be supporting CITAC’s effort.
As expected, the Bush Administration announced tariffs of up to 30 percent on a wide range of steel products this March. When the Bush Administration initiated the “Section 201” petition to the International Trade Commission (ITC), which led to these tariffs, NAFEM’s effort to persuade the administration to exempt stainless steel sheet and strip from the petition last May was successful. The 30-percent tariffs apply to flat rolled steel and hot rolled/cold finished bar only. These will drop 24 percent in the second year and 18 percent in the third year.
Following an investigation requested by the Bush Administration, the International Trade Commission (ITC), has recommended tariffs of 20 percent on most steel products, other than stainless steel plate, sheet and strip. President Bush is expected to accept these recommendations with a decision anticipated in the first quarter, 2002.
Legislation supported by NAFEM to give President Bush “fast-track” authority to negotiate bilateral-tariff-reducing treaties with other nations passed in the House of Representatives in December 2001 by a margin of only one cote – 215-214.