SOCMA welcomes US law easing raw material imports
pharmafile | August 27, 2010 | News story | Manufacturing and Production | Obama, SOCMA
US President Barack Obama has signed into law the Manufacturing Enhancement Act of 2010, designed to do away with import tariffs on hundreds of raw materials and improve the competitiveness of American industry.
The enactment of the legislation (HR 4380) suspends or reduces duties on chemicals and other industrial materials used by the pharmaceutical, chemical and others sectors until 31 December 2012.
It focuses on products that are essential for US manufacturers but are not readily available within the USA, and replaces an earlier piece of legislation that was passed by Congress in 2006 but has now expired.
The move was immediately welcomed by industry groups, including the Society of Chemical Manufacturers and Affiliates (SOCMA) which represents many of the companies making specialty chemicals, intermediates and ingredients used in pharmaceutical manufacturing, as well as a number of contract manufacturers.
The legislation allows companies to apply for tariff relief on imported materials, with the requests reviewed by the US government to ensure there is no domestic opposition. Any relief provided is temporary, so for example if a US business starts manufacturing a product covered by the provision it may not be extended.
The group’s president and chief executive Lawrence Sloan said the bill “is a crucial boost for many SOCMA members, many of whom are small and medium-sized businesses.”
“Duty suspension will allow companies of all sizes to invest their resources in growth of their production and workforce in the face of a tough economy.”
Obama said that the new law “will significantly lower costs for American companies across the manufacturing landscape.”
A study carried out last year by economist Andrew Szamosszegi of Capital Trade Inc estimated that the bill would increase US production by $4.6 billion and support almost 90,000 jobs.
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