Lowering Input Costs for American Farmers Act

Bill Overview

• Bill: S. 4418 (119th Congress, 2nd Session)
• Title: Lowering Input Costs for American Farmers Act
• Introduced: April 28, 2026
• Primary sponsors: Sens. Roger Marshall, Chuck Grassley, Cindy Hyde-Smith, Joni Ernst
• Committee: Senate Finance (referred)

Purpose and Intent

The bill seeks to reduce input costs for American farmers by prohibiting certain existing import duties on phosphate fertilizers and revoking countervailing duty orders related to imports from specific countries. The overall aim is to lower fertilizer costs by removing or suspending duties and related duties-on-import measures.

Key Provisions

1. Prohibition on Import Duties for Certain Phosphate Fertilizers

   • Effective date: seven days after enactment.
   • Prohibits imposition of any duty under:
     • Section 122 (countervailing duty) and
     • Section 301 (tariff actions) of the Trade Act of 1974
   • Applies to articles:
     • Classified under Harmonized Tariff Schedule (HTS) headings 3103 or 3105 (phosphate fertilizers)
     • Imported from the Kingdom of Morocco

2. Revocation of Countervailing Duty Orders

   • Effective date: four business days after enactment.
   • The countervailing duty orders on phosphate fertilizers imported from:
     • Kingdom of Morocco
     • Russian Federation (orders issued April 7, 2021) shall have no force or effect as to imports from Morocco.
   • The Secretary of Commerce must act to ensure no duties or cash deposits are collected in violation of the revocation, except for any duties from administrative reviews completed before the enactment date.
   • Refund provision: Within 90 days after enactment, U.S. Customs and Border Protection (CBP) must refund to importers of record any cash deposits paid under the Morocco orders that do not fall under the specified exception in subsection (b).

Who/What Is Affected

• Phosphate fertilizer imports, specifically:
  • From the Kingdom of Morocco (primary focus for duties and countervailing duties)
  • Phosphate fertilizers covered by HTS headings 3103 and 3105
• Importers of record for Moroccan phosphate fertilizer
• U.S. Department of Commerce (to implement revocation of countervailing duty orders)
• U.S. Customs and Border Protection (to process refunds of deposits)

Procedural and Timeline Aspects

• Effective dates:
  • Seven days after enactment: prohibitions on duties for Moroccan phosphate fertilizer (sect. 2)
  • Four business days after enactment: revocation of Moroccan (and Russia-related) countervailing duty orders (sect. 3)
• Implementation responsibilities:
  • Secretary of Commerce to ensure no duties or cash deposits are collected post-revocation (except for admin-review-based duties completed before enactment)
  • CBP to process and issue refunds within 90 days of enactment
• Action history:
  • Read twice and referred to the Senate Committee on Finance on April 28, 2026
  • Introduced in the Senate on April 28, 2026

Potential Impact

• Short-term: Reduction or removal of import costs for Moroccan phosphate fertilizers entering the U.S., potentially lowering input costs for U.S. farmers dependent on these fertilizers.
• Medium-term: Possible adjustments in global phosphate fertilizer pricing and supply dynamics due to changes in import duties and countervailing duty policy.
• Fiscal/administrative impact: Requires ongoing actions by Commerce and CBP to implement revocation, process refunds, and ensure compliance with the new regime.

Note: The bill’s changes are limited to phosphate fertilizers tied to the specified HTS classifications and Moroccan imports, with a specific carve-out related to administrative review duties.