Feinstein’s home state, California,
is also home to major server equipment OEMs including Sun Microsystems (sun.com) and
Cisco
(cisco.com). The bill “was initiated by a company based in California for
incorporation into the proposed Miscellaneous Tariff Bill that is currently
being crafted in the House and Senate,” John Kania of IPC wrote in a letter
sent to the IPC Government Relations committee. Kania, who spoke with Sen.
Feinstein's staff, said
“The miscellaneous tariff bill is designed to suspend the
tariffs on certain imports when doing so will help the competitiveness of a U.S. company.
Generally, provisions included are noncontroversial items,” Kania wrote.
Moreover, the effect to the U.S.
would be minimal. The Joint Committee on Taxation estimates that the tariff
suspension would cost the U.S. Treasury a sum no greater than $500,000.
Moreover, the International Trade Commission claimed the product imported is
not produced in the U.S.
The bill is currently in committee. According to Kania, “At this stage the
Senate Finance and House Ways
and Means committees are only considering possible provisions that may comprise
a bill should they decide to move forward.”