Rep. Panetta introduces bill to protect garlic producers from tariff engineering

Rep. Jimmy Panetta (D-Calif.) introduced the Giving Agriculture Relief from Loopholes in International Commerce (GARLIC) Act to prevent unfair tariff engineering of Chinese dried garlic imports.

Panetta said the Harmonized Tariff Schedule carries a 29.8% duty rate for dried garlic but, because loopholes allow importers to classify their products as roasted, toasted or mixed vegetables, they pay a lower duty rate that ranges from 8.3% to 11.2%. He said those products are marketed as dried garlic to consumers and the trend has let to a decline in market share for U.S. producers even though they can meet demand.

“It’s critical to create an environment where all businesses are operating on a level playing field so that domestic players are not disadvantaged,” said Greg Estep, of Olam Spices, which has its largest dried garlic plant in Gilroy.

Panetta said the GARLIC Act clarifies the Harmonized Tariff Schedule so roasted or toasted dried garlic is under the dried garlic subheading. He said it would also clarify matters to make sure that mixtures of vegetables with 50% or more, by weight, of dried garlic stay under the dried garlic subheading.