ACD Urges Support for the Chemical Distribution Supply Chain

More than 100 members and staff of the Alliance for Chemical Distribution (ACD) convened on Capitol Hill to kick off ACD’s annual Washington Fly-In. Participants met with lawmakers to discuss key issues impacting the chemical distribution industry and urged Congress to address legislation that will support the chemical supply chain, the chemical distribution industry, and the economy at large.

“The chemical distribution industry is made up of experts who navigate a constantly evolving supply chain and regulatory landscape,” said Eric R. Byer, President and CEO of ACD. “Our members are our best advocates, and through open conversations on the most pressing issues facing our industry, we aim to drive progress on the key legislative and regulatory challenges that are central to the competitiveness of our industry and the success of countless other sectors that depend on the chemical supply chain.”

Key issues during this year’s Fly-In included tax issues important to small businesses, the renewal of trade programs, and chemical facility security. ACD members and staff called on Congress to:

- Support Tax Policies Important to Small Businesses: Small businesses are the backbone of the U.S. economy, driving job creation and local investment. The vast majority of ACD members are small businesses – our average member has about 28 employees and generates around $42 million in sales annually. Extending the current small business tax cuts and repealing needless taxes on certain chemicals and chemical products will be essential for their continued success. ACD urges Congress to support tax policies that do not place unnecessary compliance or financial burdens on businesses, particularly small businesses, that are critical to the chemical supply chain.

- Reauthorize the Expired Generalized System of Preferences (GSP) Trade Program: Chemical distribution is a global business and trade programs such as GSP and Miscellaneous Tariff Bill (MTB) long played an important role in keeping costs low for chemical products no longer produced domestically and ensuring we have the quantities necessary to meet consumer demands. ACD encourages Congress to fully and retroactively renew the GSP and MTB programs, which expired on December 31, 2020.

- Support Balanced Approach in U.S. Shipbuilding Policy: The U.S. Trade Representative has finalized trade actions addressing unfair practices by China in the maritime and logistics sectors. These include new fees on Chinese vessels, export restrictions on U.S. liquefied natural gas, and proposed tariffs on Chinese equipment. ACD supports efforts to strengthen U.S. shipbuilding, recognizing the benefits of more American-built, -flagged, and -operated ships. However, the new fees could increase costs for U.S. shippers. ACD urges policymakers to avoid measures that place additional burdens on American businesses

- Reauthorize the Chemical Facilities Anti-Terrorism Standards (CFATS) program: The U.S. Department of Homeland Security’s successful, bipartisan CFATS program expired in July 2023. Without the vital support of this successful public-private partnership, high-risk chemical facilities are left to manage site security, mitigate vulnerabilities, and ensure comprehensive employee background checks on their own. This is particularly concerning as chemical facilities and surrounding communities face increased exposure to new threats and potential acts of terror. ACD urges Congress to reinstate this vital security program immediately.

“Onerous administrative burdens, unnecessary costs, and supply chain disruptions are causing serious uncertainty for our members and their customers,” continued Byer. “Chemical distribution contributes more than $27.5 billion to the U.S. economy. While most of ACD’s members are small businesses, our industry has a big impact, and Congress must support commonsense policies that ensure the success and growth of chemical distribution today and in the months and years to come.”