Proposed International Small Manufacturing Development Innovation Fund
Simon Cassar
2/11/2012 1:52:21 AM
Proposed International Small Manufacturing Development Innovation Fund (ISMDIF) R-1356 Capital Adequacy Guidelines
The proposed ISMDIF will allow funding for new manufacturing start-ups that have no equity, a low-tech product, an excellent business plan, innovative design, and commitment to manufacture the product in the host country. This proposal will create innovation and jobs throughout the world.
The proposed (ISMDIF) will be funded by a small tariff or assessment duty, per HS Tariff classification number, will relate directly to the type of merchandise imported via (NAIC or HS tariff number). The funds obtained via imports into the host country would be controlled and distributed by the Small Business Development Centers in the USA and other applicable agencies in other countries. Example, brakes would have its own ISMDIF North American Industry Classification (NAIC) bank account. The money withheld would be distributed to new USA companies trying to compete with imports that directly relate to that type of product, per NAIC number that the funds were originally withheld from via import tariff duty. Imported brakes funds would go to companies that are trying to make USA made brakes, imported bicycles tariff funds would go to USA companies making bicycles and so on.
The proposed International ISMDIF will require, as a minimum, that all imported products have a small customs tariff tax or assessment duty collected based on its Harmonized System tariff (HS tariff) classification number or North American Industry Classification (NAIC) number. The money collected, via customs, could go either into the Small Business Development Center (SBDC) for micro loans or North American Development Bank (NADB) and be categorized by the funds obtained by their NAIC number. The funds will be distributed to companies to compete against the exact same imported product per HS tariff number or NAIC number. The distribution of funds would be controlled by the SMDIF and distributed only if the USA product meets the following criteria: The product is made by a small business with (x) dollar value, the business has little to no equity, it has an innovative product with clear advantages over the import, and the product is competitive in price via innovative design or industrial robots.
The proposed ISMDIF will allow funding for new manufacturing start-ups that have no equity, a low tech product, an excellent business plan, innovative design, and commitment to manufacture the product in the USA. This proposal will create jobs throughout the USA. If a similar SMDIF type system is implemented by other countries, it will create innovation throughout the world.
Why not make this tariff fund concept eventually an international trade bill? Yes, all countries impose a small tariff by the type of product imported. The tariff obtained will be given out to companies within that country to help compete against imports. USA could start this process and set the example for other countries to follow.
AGENCIES REQUIRING ACTION:
- SBA
- Customs CBP
- US Trade Commission
- NADB
- WTO
- US Congress
ARGUMENTS:
Other countries would create tariffs to offset ours! Why not make this tariff an international trade bill? Yes, all countries impose a small tariff by the type of product imported. The tariff obtained will be given out to start up companies within that country to help compete against imports. Why not? Since USA has such a large trade deficit, even if every other country imposes the exact same tariff, it will only help USA. For example, in 2010 we exported $91,880,600,000 worth of goods to China, but imported $364,943,900,000 from China. If both of our countries imposed a .5% tariff on imports, the USA would lose $459,403,000 to the Chinese tariff, but gain $1,824,719,500 from our own tariff, which comes out to a $1,365,316,500 gain. We also have a trade deficit with Japan, India, France, Germany, UK, Italy, etc. which adds up to approximately $130 Billion in 2010. That is all money that the USA is losing every year, and that we could be earning back by imposing an international tariff. As long as we have a trade deficit, (and our trade deficit is only increasing), an international tariff will bring back jobs to the USA.
Big business will not support import tariffs. The money gained is only the money that comes from products not made in the country that is importing the product. Would large businesses instead just see unemployment rise in their host country?
HISTORY:
Diane Feinstein loved the idea over six years ago and wrote a letter to discuss that she would like to discuss the concept in more detail at a later date. Unfortunately, I cannot find the letter. Also, the individual who introduces bills to congress called me back and wanted to know more about the bill but I was only sharing the concept only and he was pretty upset. Sorry, I do not remember his name but thought it was cool he thought it was already a proposed bill.
Bottom line, I have received nothing but praise on this bill proposal, but I have also received concerns of trade war issues. However, let's make it an international bill and companies relying of massive imports in one or several categories will now have the opportunity for that country to distribute funds to help its own citizens compete with those imported products.
Yours Truly,
Simon Cassar
27 White Road
Watsonville, Ca 95076
Tele 831 761-2529
Fax 831 761-1503
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