Ways and Means Committee Chairman Kevin Brady (R-TX) on March 21, 2017, said he thinks the border adjustability proposal that will be included in the comprehensive tax reform bill he plans to unveil in several months will be phased in, and that House Republicans are "open to design changes" given concerns about imported raw commodities and component parts, as well as uncertainty over exchange rate adjustments.

The Chairman was asked in an interview on CNBC's "Squawk Box" about talk of phasing in border adjustability, and whether he is in favor of doing partial border adjustability for a period and then phasing it in over a number of years. "I think that will be one of the modifications on this, is to make sure it's done in a way that the economy adjusts efficiently, effectively, so we can see as this moves forward. I also think we are open to design changes so this works well," Chairman Brady said. "We want the most pro-growth tax reform we can muster. We think this is critical to it so we are listening to the import industry and, more importantly, they are engaging on the design part of this."

Asked what he means by being open to design changes, Chairman Brady said, "We are looking at — this is within the current tax code — so on the import industry, you have got issues like raw commodities, you have component parts that might go through automobiles, you have finished products that might end up in a retail store."

The Chairman said, while members backing the proposal know the exchange rates will adjust effectively and efficiently, "A fair concern is, 'What if they don't immediately or completely?' Well, design, in my view, of this tax provision can accommodate those in a very good way so that they're seeing — importers are seeing 3% and 4% growth, not what we have today; a much more competitive US; and a simpler tax code where they can use their capital from around the world where they need and hopefully in the US. So I just see very positive directions in the design, in the phase-in, and in the transition of that provision," he said.

Asked about the potential for the White House to support border adjustability, Chairman Brady said: "My sense is that border adjustability has become a given, that it will be part of the final tax reform plan. Really, now the discussions are how can it be designed and transitioned in a very positive way for importers. Because for the rest of businesses, and I would say for importers as well, looking at this strong economy, taxing everyone equally in the US, eliminating any tax incentives to move overseas, and making sure 'Made in America' products can compete around the world, everyone wants that in the final tax reform plan. So really, now I think, it has shifted to how best to design these provisions."

He said he senses that people are coming to realize the critical role border adjustability — combined with lower rates and abandoning a worldwide system of taxing foreign earnings — will play in making the United States more competitive.

House Republican leaders have said their tax reform plan based on the 2016 Blueprint is still under development, and White House officials have said they would weigh in on the issue following the resolution of the current health care debate.

A Committee post that includes video of the segment is here.