NC Delegation Thanks Senator for Removing Duty Drawback Repeal
The North Carolina Republican Congressional Delegation sent a letter to Senator Mike Crapo, the Chairman of the Senate Finance Committee, thanking him for the Senate’s version of the reconciliation bill that removed the repeal of the duty drawback provisions. In addition to all the House Republicans from North and South Carolina who signed the letter, several ag leaders have expressed their support for protecting the duty drawback, including N.C. Ag Commissioner Steve Troxler, S.C. Ag Commissioner Hugh Weathers, NC Chamber of Commerce, Tobacco Growers of North Carolina. The Farm Bureaus of North Carolina, Virginia, Georgia, and South Carolina, and the U.S. Tobacco Cooperative.
Key quotes from the letter:
We write to express our gratitude for the removal of the tobacco duty drawback provision from the Senate’s version of the One Big Beautiful Bill. This is a novel issue, but a vitally important one for many in the agricultural sectors.
Once included in the House version, agricultural stakeholders uniformly voiced strong opposition to repealing drawback. The duty drawback is vital for American tobacco farmers because it ensures access to export markets as domestic demand for tobacco declines.
According to a recent analysis from the John Locke Foundation, the total economic impact of the tobacco industry in North Carolina alone “is $49 billion of output (revenue), $32 billion added to GDP, 101,900 jobs created, and labor earnings of $10 billion.
The present and future of American tobacco farmers, their families and their communities is at risk. We appreciate your attention to this important matter and request not including the repeal of the duty drawback incentive for tobacco in the Senate version of the One Big Beautiful Bill.
Background: Industry leaders warned that the repeal of Duty Drawback protections would expose North Carolina farmers to double taxation, potentially costing thousands of jobs. Senators Thom Tillis and Ted Budd promptly publicly declared their opposition to the repeal of Duty Drawback protection, and the Senate’s version of the Big Beautiful Bill dropped the House’s plan to repeal duty drawback protections. After the Senate version was released, Our Ag Future, an initiative of the N.C. The Chamber launched a substantial advertising campaign to encourage Congress to support the duty drawback.
Why It Matters: The strong letter from ten North Carolina and three South Carolina Republican House members demonstrates that the Big Beautiful Bill cannot pass with a repeal of the Duty Drawback. Coupled with Senators Tillis and Budd’s support for duty drawback protections, it is unlikely that the repeal provisions will make it to the final version of the Big Beautiful Bill.
