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The Beer Institute, the longstanding national trade association dedicated to representing the beer industry, issued a response following the introduction of H.R.7078, known as ‘The False Claims Enhancement Act,’ by Rep. Ken Buck (CO-04). This proposed legislation aims to establish accountability for aluminium producers who impose tariffed prices on non-tariffed metal.
Beer Institute applauds legislative move to safeguard against unjust aluminium tariffs
The False Claims Enhancement Act explicitly outlines that it violates the False Claims Act for entities, such as aluminium producers, to inaccurately impose a tariff in a private contract where no tariff obligation exists and the funds are not directed to the government. This provision serves as a robust deterrent against individuals or organisations attempting to include a government-mandated charge when it is not warranted dishonestly. Notably, this addresses concerns related to aluminium producers charging substantial tariffs on non-tariffed metal to end-users, amounting to hundreds of millions of dollars.
“Brewers, beer importers and every industry that relies on aluminium are sick and tired of paying a tariff price on non-tariff metal. Our industry has felt the squeeze from Section 232 aluminium tariffs for too long. Aluminum is the single largest input cost in brewing, and the lack of transparency in aluminium pricing hurts consumers. Companies who rely on aluminium must have access to a fairly-priced product, and The False Claims Enhancement Act will protect American workers and manufacturers from those seeking to take advantage of the system,” said Brian Crawford, president and CEO of the Beer Institute.
The U.S. beer industry heavily relies on imported primary aluminium and can sheet, with over 74 per cent of all domestically produced beer being packaged in aluminium cans and bottles. In 2020 alone, brewers procured more than 41 billion aluminium cans and bottles, solidifying aluminium as the most significant input cost in the manufacturing of American beer.
“We appreciate Rep. Buck’s leadership on this critical legislation that will ultimately protect consumers and manufacturers. Trade policy must be transparent and fair to not burden consumers and allow U.S. manufacturers to continue to be strong contributors to the economy, which is why The False Claims Enhancement Act is so important to our industry, the makers of the great household brands Americans use every day,” stated David Chavern, president and CEO of the Consumer Brands Association.
“Users of aluminum in Colorado are being deceptively overcharged by producers under the guise of government fees. The False Claims Enhancement Act would put an end to this dishonest practice and ensure that production companies are penalized for lying about the necessity and use of fees. As inflation continues to climb, the American public cannot afford to pay higher prices for canned goods due to unnecessary and misrepresented fees charged by manufacturers,” added Rep. Ken Buck (CO-04).
A study conducted by Harbor Aluminum revealed that since implementing Section 232 tariffs, the U.S. beverage industry has contributed nearly $2.2 billion. However, only a minimal fraction, $135 million (6 per cent), was directed to the U.S. Treasury, with the majority, approximately $2.04 billion (94 per cent), being claimed by U.S. rolling mills, U.S. smelters, and Canadian smelters. This substantial amount was collected by charging end-users, such as U.S. brewers, a tariff-inflated price irrespective of whether the metal was supposed to be tariffed based on its content or origin.
Furthermore, the Beer Institute has recently launched MidwestPremiumExposed.org. This initiative aims to educate consumers and lawmakers about the Midwest Premium (MWP), an opaque pricing system enabling aluminium producers to impose tariffs on non-tariffed metal. By shedding light on the MWP, the Beer Institute seeks to reintroduce transparency and competition into the aluminium market. This, in turn, is anticipated to alleviate the financial burden on brewers and various other industries impacted by inflated aluminium prices.
source：https://www.alcircle.com/news/beer-institute-launches-the-false-claims-enhancement-act-to-safeguard-against-unjust-aluminium-tariffs-105769