89–010

Calendar No. 841

106TH CONGRESS REPORT

2d Session " ! SENATE 106–503

TARIFF SUSPENSION AND TRADE ACT OF 2000

OCTOBER 12 (legislative day, SEPTEMBER 22), 2000.—Ordered to be printed

Mr. ROTH, from the Committee on Finance,

submitted the following

REPORT

[To accompany H.R. 4868]

[Including cost estimate of the Congressional Budget Office]

The Committee on Finance, to which was referred the bill (H.R.

4868) to make technical corrections and miscellaneous amendments

to the trade laws, having considered the same, reports favorably

thereon with an amendment in the nature of a substitute and recommends that the bill, as amended, do pass.

I. BACKGROUND

On June 1, 2000, Chairman Roth requested public comment on

a package of technical corrections, temporary duty suspensions or

reductions and other miscellaneous trade proposals introduced during the 106th Congress and referred to the Committee on Finance.

H.R. 4868, as amended, includes many of these bills which, based

upon the comments submitted to the Committee on Finance by the

public, the U.S. Customs Service, the U.S. Department of Commerce, the U.S. International Trade Commission (ITC), the United

States Trade Representative and other agencies, the Committee

has found to be non-controversial.

II. SUMMARY OF H.R. 4868, AS AMENDED

SHORT TITLE (SECTION 1)

This section provides that this Act may be cited as the ‘‘Tariff

Suspension and Trade Act of 2000.’’

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TABLE OF CONTENTS (SECTION 2)

TITLE I—TARIFF PROVISIONS

REFERENCE (SEC. 1001(a))

Present law

No provision.

Explanation of provision

This section provides that except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed

in terms of an amendment to, or repeal of, a chapter, subchapter,

note, additional U.S. note, heading, subheading, or other provision,

the reference shall be considered to be made to a chapter, subchapter, note, additional U.S. note, heading, subheading, or other

provision of the Harmonized Tariff Schedule of the United States

(19 U.S.C. 3007).

Reason for change

This clarifies that the amendments or repeals made by this title

apply to the Harmonized Tariff Schedule of the United States, except as otherwise provided.

EXPIRED PROVISIONS (SEC. 1001(b))

Present law

Subchapter II of Chapter 99 contains the identified headings that

have expired.

Explanation of provision

This provision strikes the identified expired headings from Subchapter II of Chapter 99.

Reason for change

The identified headings were temporary and have expired.

HIV/AIDS DRUG (SEC. 1101)

Present law

The HIV/AIDS drug [4R-[3(2S*,3S*), 4R*]]-3-[2-Hydroxy-3-[(3-hydroxy-2-methyl benzoyl) amino]-1-oxo-4-phenylbutyl]-5,5-dimethylN-[(2-methylphenyl)methyl]-4-thiazolidinecarboxamide (CAS No.

186538–00–1) (provided for in subheading 2930.90.90) is subject to

an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTSUS by inserting a new heading for a certain HIV/AIDS drug,

[4R-[3(2S*,3S*), 4R*]]-3-[2-Hydroxy-3-[(3-hydroxy-2-methyl benzoyl)amino]-1-oxo-4-phenylbutyl]-5,5-dimethyl-N-[(2-

methylphenyl)methyl]-4-thiazolidinecarboxamide (CAS No. 186538–

00–1) (provided for in subheading 2930.90.90), as duty free until

December 31, 2003.

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Reason for change

This provision would enable U.S. chemical and pharmaceutical

companies to reduce costs in manufacturing this much-needed

pharmaceutical for HIV/AIDS.

HIV/AIDS DRUG (SEC. 1102)

Present law

The HIV/AIDS drug 5-[(3,5-Dichlorophenyl)thio]-4-(1-methyl

ethyl)-1(4-pyridinylmethyl)-1H-imidazole-2-methanol caramate (as

provided for in 2933.39.61) is subject to an NTR duty rate of 10.4%

ad valorem.

Explanation of provision

The provision would amend chapter 99, subchapter II of the HTS

by inserting a new heading for certain HIV/AIDS drug 5-[(3,5-

Dichlorophenyl)thio]-4-(1-methylethyl)-1-(4-pyridinylmethyl)-1H-imidazole-2-m ethanol carbamate (CAS No.178979–85–6) (provided for

in subheading 2933.39.61), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical and pharmaceutical

companies to reduce costs in manufacturing this much-needed

pharmaceutical for HIV/AIDS.

TRIACETONEAMINE (SEC. 1103)

Present law

Triacetoneamine, 4-piperdone 2,2,6,6 tetramethyl (CAS No. 826–

36–8) (as provided for in subheading 2933.39.61) is subject to an

NTR duty rate of 9.3% (2000), 8.6% (2001), 7.9% (2002) ad valorem.

Explanation of provision

The provision would amend chapter 99, subchapter II of the HTS

by inserting a new heading for triacetonamine, 4-piperdone 2,2,6,6

tetramethyl (CAS No. 826–36–8) (provided for in subheading

2933.39.61) and any mixtures containing the foregoing, as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

INSTANT PRINT FILM IN ROLLS (SEC. 1104)

Present law

Instant print film in rolls (as provided for in subheading

3702.20.00) is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for instant print film, in rolls (provided for in subheading 3702.20.00), as duty free until December

31, 2003.

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Reason for change

This provision would enable U.S. producers of instant print film

to reduce their manufacturing costs, making these products competitive with alternative photographic technology without jeopardizing any domestic manufacturer. The film in rolls is used primarily by professional photographers and in other applications not

served by flat film.

COLOR INSTANT PRINT FILM (SEC. 1105)

Present law

Instant print film for color photography (provided for in subheading 3701.20.00) is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for instant print film for color

photography (provided for in subheading 3701.20.00) as a temporary duty reduction to 2.8% ad valorem until December 31, 2003.

Reason for change

This provision would enable U.S. producers of instant print film

to reduce their manufacturing costs, making these products competitive with alternative photographic technology without jeopardizing any domestic manufacturer.

MIXTURES OF SENNOSIDES AND MIXTURES OF SENNOSIDES AND THEIR

SALTS (SEC. 1106)

Present law

Mixtures of sennosides and sennosides and their salts (provided

for in subheading 2938.90.00) are subject to NTR duty rate of 3.7%

ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for mixtures of sennosides and

sennosides and their salts (provided for in subheading 2938.90.00),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CIBACRON RED LS–B HC (SEC. 1107)

Present law

Reactive Red 270 (CAS No. 155522–05–7) (provided for in subheading 3204.16.30) is subject to an NTR duty rate of 10.8% ad valorem.

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Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for Reactive Red 270 (CAS No.

155522–05–7) (provided for in subheading 3204.16.30), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CIBACRON BRILLIANT BLUE FN–G (SEC. 1108)

Present law

6,13-Dichloro-3,10- bis[[2-[[4-fluoro-6-[(2-sulfonyl)amino]-1,3,5-

triazin -2-yl]amino]propyl]amino]-4,11-triphenodioxazinedisulfonic

acid lithium sodium salt (CAS No. 163062–28–0) (provided for in

HTS subheading 3204.16.30) is subject to an NTR duty rate of

10.8% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for Cibacron Brilliant Blue FNG,6,13-Dichloro-3,10-bis[[2-[[4-fluoro-6-[(2-sulfonyl)amino]-

1,3,5triazin-2-yl]amino]propyl]amino]-4,11-

triphenodioxazinedisulfonic acid lithium sodium salt (CAS No.

163062 28 0) (provided for in HTS subheading 3204.16.30), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CIBACRON SCARLET LS–2G HC (SEC. 1109)

Present law

Reactive Red 268 (CAS No. 152397–21–2) (provided for in HTS

subheading 3204.16.30) is subject to an NTR duty rate of 10.8% ad

valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for Reactive Red (CAS No.

152397–21–2) (provided for in HTS subheading 3204.16.30), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

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MUB 738 INT (SEC. 1110)

Present law

2-Amino-4(4-Aminobenzoylamino) benzene sulfonic acid (CAS No.

167614–37–1) (provided for in HTS subheading 2924.29.70) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for MUB 738 INT, 2-Amino-4(4-

Aminobenzoylamino) benzene sulfonic acid (CAS No. 167614–37–1)

(provided for in HTS subheading 2924.29.70), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

FENBUCONAZOLE (SEC. 1111)

Present law

a-(2-(4-Chlorophenyl)ethyl-a-phenyl-1H-1,2,4-triazole-1-

propanenitrile (Fenbuconazole)(CAS No. 1143 69–43–6) (provided

for in HTS subheading 293 3.90.06) is subject to an NTR duty rate

of 9.1% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for fenbuconazole, a-(2-(4-

Chlorophenyl)ethyl-a-phenyl-1H-1,2,4-triazole-1-propanenitrile

(Fenbuconazole) (CAS No. 114369–43–6) (provided for in HTS subheading 2933.90.06) as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

2,6-DICHLOROTOLUENE (SEC. 1112)

Present law 2,6-Dichlorotoluene (CAS No. 118–69–4) (as provided

for in HTS subheading 2903.69.70) is subject to a NTR duty

rate of 5.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 2,6-Dichlorotoluene (CAS No.

118–69–4) (provided for in HTS subheading 2903.69.70), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product indusVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
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tries more competitive without jeopardizing any domestic manufacturer.

3-AMINO-3-METHYL-1-PENTYNE (SEC. 1113)

Present law

3-Amino-3-methyl-1-pentyne (provided for in HTS subheading

2921.19.60) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 3-Amino-3-methyl-1-pentyne

(provided for in HTS subheading 2921.19.60) as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TRIAZAMATE (SEC. 1114)

Present law

Acetic acid, [[1-[(dimethylamino)carbonyl]-3-(1,1-dimethyethyl)

-1H-1,2,4-triazol-5-yl]thio]-, ethyl ester (CAS No. 112143–82–5) (as

provided for in HTS subheading 2933.90.17) is subject to an NTR

duty rate of 6.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for, acetic acid, [[1-

[(dimethylamino)carbonyl]-3-(1,1-dimethyethyl) -1H-1,2,4 -triazol-5-

yl]thio]-, ethyl ester (CAS No. 112143–82–5) (provided for in HTS

subheading 2933.90.17), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

METHOXYFENOZIDE (SEC. 1115)

Present law

Benzoic acid 3-methoxy-2-methyl-,2-(3,5-dimethylbenzoyl)-2-(1,1-

dimethyl ethyl)hydrazide (provided for in HTS subheading

2928.00.25) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for Benzoic acid 3-methoxy-2-

methyl-,2-(3,5-dimethylbenzoyl)-2-(1,1-dimethyl ethyl) hydrazide

(provided for in HTS subheading 2928.00.25) as duty free until December 31, 2003.

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Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

1-FLUORO-2-NITROBENZENE (SEC. 1116)

Present law

1-Fluoro-2-nitrobenzene (CAS No. 001493–27–2) (as provided for

in HTS subheading 2904.90.30), commonly used as raw material

for a pharmaceutical intermediate, is subject to an NTR duty rate

of 5.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 1-Fluoro-2-nitrobenzene (CAS

No. 00–1493–27–2) (provided for in HTS subheading 2904.90.3 0),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PHBA (SEC. 1117)

Present law

p-hydroxybenzoic acid (PHBA) (CAS No. 99–96–7) (as provided

for in HTS subheading 2918.29.22), commonly used to produce

liquified crystal polymer (LCP), is subject to an NTR duty rate of

6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter 11 of the

HTS by inserting a new heading for p-Hydroxybenzoic acid (PHBA)

(CAS No. 99–96–7) (provided for in HTS subheading 2918.29.22),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

THQ (TOLUHYDROQUINONE) (SEC. 1118)

Present law

Toluhydroquinone (CAS No. 95–71–6) (as provided for in HTS

subheading 2907.29.90), is subject to an NTR duty rate of 5.5% ad

valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for toluhydroquinone (CAS No.

9

95–71–6) (provided for in HTS subheading 2907.29.90) as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

2,4-DICUMYLPHENOL (SEC. 1119)

Present law

2,4-Dicumylphenol (CAS No. 2772–45–4) (as provided for in HTS

subheading 2907.19.20 or 2907.19.80) is subject to an NTR duty

rate of 5.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 2,4-Dicumylphenol (CAS No.

2772–45–4) (provided for in HTS subheading 2907.19.20 or

2907.19.80), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CERTAIN CATHODE-RAY TUBES (SEC. 1120)

Present law

Certain cathode-ray data/graphic display tubes, color, with a less

than 90 degree deflection (provided for in HTS subheading

8540.60.00) are subject to an NTR duty rate of 3% ad valorem.

These cathode-ray tubes are used in radio and radar monitoring

units in the cockpits of aircraft.

Explanation of provision

This provision would amend chapter 99, subchapter 11 of the

HTS by inserting a new heading for certain cathode-ray data/

graphic display tubes, color, with a less than 90 degree deflection

(provided for in HTS subheading 8540.60.00), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these products to reduce costs, making the products more competitive without

jeopardizing any domestic manufacturer.

OTHER CATHODE-RAY TUBES (SEC. 1121)

Present law

Cathode-ray data/graphic tubes, color, with a phosphor dot

screen pitch smaller than 0.4 min, and with a less than 90 degree

deflection (provided for in HTS subheading 8540.40.00) are subject

to an NTR duty rate of 3% ad valorem. These cathode-ray tubes are

10

used in aircraft cockpits to monitor the flight variables of the aircraft.

Explanation of provision

This provision would amend chapter 99, subchapter Il of the HTS

by inserting a new heading for cathode-ray data/graphic display

tubes, color, with a phosphor dot screen pitch smaller than 0.4 mm,

and with a less than 90 degree deflection on cathode (provided for

in HTS subheading 8540.40.00), to reduce the duty from 3.0% to

1.0% until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these products to reduce costs, making the products more competitive without

jeopardizing any domestic manufacturer.

CERTAIN RAW COTTON (SEC. 1122)

Present law

Imported cotton fiber of lengths less than 1 and 1⁄8th inches is

currently duty free. Certain categories of raw cotton imported into

the United States are subject to a tariff. These tariffs were established based on varying staple lengths of cotton.

Explanation of provision

This provision would amend chapter 52 of the HTS to provide

duty-free treatment to certain raw cotton in specified lengths. The

threshold for imposing tariffs on cotton tariffs would be increased

from 1 and 1⁄8th inches to 1 and 1⁄4th inches over a period of three

years.

Reason for change

The current threshold for cotton tariffs was set in 1930 when the

bulk of cotton fiber traded was shorter than 1 and 1⁄8ths inches in

length. Over time, staple lengths have tended to increase, moving

the majority of cotton that would be imported into the U.S. from

a category without a tariff into a category with a tariff. In addition,

importers are not always certain of the staple length of the cotton

they are importing. It may be slightly longer than advertised, subjecting the importer to unanticipated tariffs. As a result of these

concerns, the Committee intends to increase the tariff threshold

length to 1 and 1⁄4th inches in recognition of the prevalence of

longer fibers in today’s cotton trade.

RHINOVIRUS DRUG (SEC. 1123)

Present law

A certain Rhinovirus drug, trans-(2R, 3S,4S,5S)-(4-{2-(4-

Fluorobenzyl)-6- methyl-5[(5-methylisoxazole-3-carbonyl)amino]-4-

oxoheptanoylamino}-5-(2-oxopyrrolidin-3-yl) pent-2-enoic acid ethyl

ester (CAS No. 223537–30–2) (provided for in HTS subheading

2934.90.39), is subject to an NTR duty rate of 12.1% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for a certain Rhinovirus drug,

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trans-(2R, 3S,4S,5S)-(4-{2-(4-Fluorobenzyl)-6-methyl-5[(5-methyl

isoxazole-3-carbonyl)amino]-4-oxoheptanoylamino}-5-(2-

oxopyrrolidin-3-yl) pent-2-enoic acid ethyl ester (CAS No. 223537–

30–2) (provided for in HTS subheading 2934.90.39), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical and pharmaceutical

manufacturers to reduce costs, making these industries more competitive without jeopardizing any domestic manufacturer.

BUTRALIN (SEC. 1124)

Present law

N-sec-butyl-4-tert-butyl-2,6-dinitroaniline (CAS No. 33629–47–9)

(as provided for in HTS subheadings 2921.42.90 or 3808.31.15) and

any mixtures containing the foregoing are subject to an NTR duty

rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for N-sec-butyl-4-tert-butyl-2,6-

dinitroanitine (CAS No. 33629–47–9)(provided for in HTS subheadings 2921.42.90 or 3808.31.15) and any mixtures containing

the foregoing, as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

BRANCHED DODECYLBENZENE (SEC. 1125)

Present law

Branched dodecylbenzene (CAS No. 123–01–3) (provided for in

HTS subheading 2902.90.30) is subject to an NTR duty rate of

12.8% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter 11 of the

HTS by inserting a new heading for branched dodecylbenzene (CAS

No. 123–01–3) (provided for in HTS subheading 2902.90.30), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

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CERTAIN FLUORINATED COMPOUND (SEC. 1126)

Present law

(4-Fluorophenyl) [3-[(4-fluorophenyl) ethynyl]phenyl] (provided

for in HTS subheading 2914.70.40) is subject to an NTR duty rate

of 8.2% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for (4-Fluorophenyl) [3-[(4-

fluorophenyl) ethynyl]phenyl] (provided for in HTS subheading

2914.70.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CERTAIN LIGHT ABSORBING PHOTO DYE (SEC. 1127)

Present law

4-chloro-3-[4-[[4- (dimethylamino)phenyl]methylene-4,5-dihydro3-methyl-5-oxo-1H-pyrazol-1-1], compound with pyridine (1:1) (as

provided for in HTS subheading 2934.90.90), commonly used as

light absorbing photo dye, is subject to an NTR duty rate of 6.5%

ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 4-chloro-3-[4-[[4-

(dimethylamino)phenyl]methylene -4,5-dihydro-3-methyl-5-oxo-1Hpyrazol-1-1], compound with pyridine (1:1) (provided for in HTS

subheading 2934.90.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers of photographic dyes to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing

any domestic manufacturer.

FILTER BLUE GREEN PHOTO DYE (SEC. 1128)

Present law

Iron chloro 5,6-diamino-1,3-naphthalene disulfonate complexes

(CAS No. 85187–44–6) (as provided for in HTS subheading

2942.00.10), used as filter blue green photo dye, is subject to an

NTR duty rate of 10% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for iron chloro 5,6-diamino-1,3-

naphthalene disulfonate complexes (CAS No. 85187–44–6), (provided for in HTS subheading 2942.00.10), used as filter blue green

photo dye, as duty free until December 31, 2003.

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Reason for change

This provision would enable U.S. chemical manufacturers of photographic dyes to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing

any domestic manufacturer.

CERTAIN LIGHT ABSORBING PHOTO DYES (SEC. 1129)

Present law

4-[4-[3-[4-Dimethylamino)phenyl]-2-propenylidene]-4,5-dihydro-3-

methyl-5-oxo-1H-pyrazol-1-yl]benzenesulfonic acid, compound with

N,N-diethylethanamine(1:1) (CAS No. 109940–17–2);

4-[3-[3-Carboxy-5-hydroxy-1-(4-sulfophenyl)-1H-pyrazole-4-yl]-2-

propenylidene] - 4,5-dihydro-5-oxo-1-(4-sulfophenyl)-1H-pyrazole-3-

carboxylic acid, sodium salt, compound with N,Ndiethylethanamine (CAS No. 90066–12–9);

4-[4,5-dihydro-4-[5-hydroxy-3-methyl-1-(4-sulfophenyl)-1H

pyrazol-4-yl]methylene-3-methyl-5-oxo-1H-pyrazol-1-

yl]benzenesulfonic acid, dipotassium salt (CAS No. 94266–02–1);

4-[4-[[4-(Dimethylamino)-phenyl]methylene]-4,5-dihydro-3-methyl-5-oxo-1H-pyrazol-l-yl]benzenesulfonic acid, potassium salt (CAS

No. 27268–31–1);

4,5-dihydro-5-oxo-4-[(phenylamino)methylene]-1-(4-sulfophenyl)-

1H-pyrazole-3-carboxylic acid, disodium salt; and 4-[5-[3-Carboxy-5-

hydroxy - 1-(4-sulfophenyl)-1H-pyrazol-4-yl]-2,4-pentadienylidene]-

4,5-dihydro-5-oxo-1-(4-sulfophenyl)-1H-pyrazole-3-car-boxylicacid,

tetrapotassiurn salt (CAS No. 134863–74–4) (all of the foregoing

provided for in subheading 2933.19.30) (CAS No. 134863–74–4) (as

provided for in HTS subheading 2933.19.30), commonly used as

light absorbing photo dyes, are subject to an NTR duty rate of 6.5%

ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for Benzenesulfonic acids (CAS

No. 134863–74–4, 109940–17–2, 9000466–12–9, 94266–02–1,

27268–31–1, 134863–74–4) (provided for in HTS subheading

2933.19.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers of photographic dyes to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing

any domestic manufacturer.

4,4′-DIFLUOROBENZOPHENONE (SEC. 1130)

Present law

Bis(4-fluorophenyl)methanone (CAS No. 345–92–6) (as provided

for in HTS subheading 2914.70.40), is subject to an NTR duty rate

of 4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for Bis(4-fluorophenyl)methanone

14

(CAS No. 345 92 6) (provided for in HTS subheading 2914.70.40),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

A FLOUORINATED COMPOUND (SEC. 1131)

Present law

(4-Fluorophenyl)phenylmethanone (CAS No. 345–83–5) (as provided for in HTS subheading 2914.70.40), is subject to an NTR

duty rate of 4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for (4-Fluorophenyl)

phenylmethanone (CAS No. 345–83–5) (provided for in HTS subheading 2914.70.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DiTMP (SEC. 1132)

Present law

Di-trimethylolpropane (as provided for in HTS subheading

2909.49.60), is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for di-trimethylolpropane (DiTMP)

(provided for in HTS subheading 2909.49.60), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

HPA (SEC. 1133)

Present law

Hydroxypivalic acid (HPA) (as provided for in HTS subheading

2918.19.90), is subject to an NTR duty rate of 4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for hydroxypivalic acid (provided

15

for in HTS subheading 2918.19.90), as duty free until December

31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

APE (SEC. 1134)

Present law

Allyl pentaerythritol (APE) (as provided for in HTS subheading

2909.49.60), is subject to an NTR duty rate of 8.9% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for allyl pentaerythritol (provided

for in HTS subheading 2909.49.60), as duty free until December

31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TMPDE (SEC. 1135)

Present law

Trimethylolpropane diallyl ether (TMPDE) (as provided for in

HTS subheading 2909.49.60), is subject to an NTR duty rate of

8.9% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for trimethylolpropane diallyl

ether (provided for in HTS subheading 2909.49.60), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TMPME (SEC. 1136)

Present law

Trimethylolpropane monoallyl ether (TMPME) (provided for in

HTS subheading 2909.49.60) is subject to an NTR duty rate of 8.9%

ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for trimethylolpropane monoallyl

16

ether (provided for in HTS subheading 2909.49.60), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TUNGSTEN CONCENTRATES (SEC. 1137)

Present law

Tungsten concentrates (provided for in HTS subheading

2611.00.60) are subject to an NTR duty rate of 7.16% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for tungsten concentrates (provided for in HTS subheading 2611.00.60), as duty free December

31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

2 CHLORO AMINO TOLUENE (SEC. 1138)

Present law

2-Chloro-p-toluidine (CAS No. 95–74–9) (provided for in HTS subheading 2921.43.80) is subject to an NTR duty rate of 14.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 2-Chloro-p-toluidine (CAS No.

95–74–9) (provided for in HTS subheading 2921.43.80), as duty free

until December 31, 2004.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CERTAIN ION-EXCHANGE RESINS (SEC. 1139)

Present law

Certain ion-exchange resins, comprising of a copolymer of 2-

propenenitrile (CAS No. 130353–60–5, 109961–42–4, 135832–76–7)

(provided for in HTS subheading 3914.00.60) is subject to an NTR

duty rate of 3.9% ad valorem.

17

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for a certain ion-exchange resins,

comprising of a copolymer of 2-propenenitrile (CAS No. 130353–60–

5, 109961–42–4, 135832–76–7) (provided for in HTS subheading

3914.00.60), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

11-AMINOUNDECANOIC ACID (SEC. 1140)

Present law

11-aminoundecanoic acid (as provided for in HTS subheading

2922.49.40), is subject to NTR duty rate of 4.2% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 11-aminoundecanoic acid (provided for in HTS subheading 2922.49.40), with duty reduction to

1.6% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DIMETHOXY BUTANONE (DMB) (SEC. 1141)

Present law

4,4-Dimethoxy-2-butanone (CAS No. 5436–21–5) (as provided for

in HTS subheading 2914.50.50), is subject to an NTR duty rate of

4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 4,4-Dimethoxy-2-butanone

(CAS No. 5436–21–5) (provided for in HTS subheading 2914.50.50),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DICHLORO ANILINE (DCA) (SEC. 1142)

Present law

2,6-Dichloro aniline (2,6-dichlorobenzenamine) (DCA) (CAS No.

608–31–1) (provided for in HTS subheading 2921.42.90) is subject

to an NTR duty rate of 11.5% ad valorem.

18

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 2,6-Dichloro aniline (2,6-

dichlorobenzenamine) (DCA) (CAS No. 608–31–1) (provided for in

HTS subheading 2921.42.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DIPHENYL SULFIDE (SEC. 1143)

Present law

Diphenyl sulfide (CAS No. 139–66–2) (as provided for in HTS

subheading 2930.90.29), is subject to an NTR duty rate of 6.5% ad

valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for diphenyl sulfide (CAS No.

139–66–2) (provided for in HTS subheading 2930.90.29), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TRIFLURALIN (SEC. 1144)

Present law

a,a,a-Trifluoro-2,6-dinitro-p-tolu-idine (CAS No. 1582–09–8) (provided for in HTS subheading 2921.43.15) is subject to an NTR duty

rate of 6.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for a,a,a-Trifluoro-2,6-dinitro-ptolu-idine (CAS No. 1582–09–8) (provided for in subheading

2921.43.15), with a duty reduction to 5% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DIETHYL IMIDAZOLIDINONE (DMI) (SEC. 1145)

Present law

1,3-Diethyl-2-imidazolidinone (CAS No. 80–73–9) (as provided for

in HTS subheading 2933.29.90), is subject to an NTR duty rate of

6.5% ad valorem.

19

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 1,3-Diethyl-2-imidazolidinone

(CAS No. 80–73–9) (provided for in HTS subheading 2933.29.90),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

ETHALFLOURALIN (SEC. 1146)

Present law

Ethalflouralin, N-ethyl-N-(2methyl-2-propenyl)-2, 6-dinitro-4-

(trifluoromethyl) benzenamine (CAS No. 55283–68–6) (as provided

for in HTS subheading 2921.43.80), is subject to an NTR duty rate

of 12.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for ethalfluralin, N-ethyl-N-

(2methyl-2-propenyl)-2, 6-dinitro-4-(trifluoromethyl)benzenamine

(CAS No. 55283–68–6) (provided for in HTS subheading

2921.43.80), with a duty reduction to 7.9% until December 31,

2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

BENFLURALIN (SEC. 1147)

Present law

N-butyl-N-ethyl-2,6-dinitro-4-(trifluoromethyl)benezenamine; Nbutyl-N-ethyl-alpha, alpha, alpha-trifluoro-2-6-dinitro-p-toluidine

(CAS No. 1861–40–1) (as provided for in HTS subheading

2921.43.80), is subject to an NTR duty rate of 12.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for N-butyl-N-ethyl-2,6-dinitro-4-

(trifluoromethyl) benezenamine; N-butyl-N-ethyl-alpha, alpha,

alpha-trifluoro-2-6-dinitro-p-toluidine (CAS No. 1861–40–1) (provided for in HTS subheading 2921.43.80), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

20

3-AMINO-5-MERCAPTO-1,2,4-TRIAZOLE (AMT) (SEC. 1148)

Present law

3-amino-5-mercapto-1,2,4-triazole (AMT) (CAS No. 16691–43–3)

(provided for in HTS subheading 2933.90.97) is subject to NTR

duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 3-amino-5-mercapto-1,2,4-triazole (AMT) (CAS No. 16691–43–3) (provided for in HTS subheading 2933.90.97), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DIETHYL PHOSPHOROCHLORIDIOTHIOATE (DEPCT) (SEC. 1149)

Present law

Diethyl phosphorochloridiothioate, 0,0-dethyl phosphorochoridothioate (DEPCT) (CAS No. 2524–04–1) (as provided for in

HTS subheading 2920.10.50), is subject to NTR duty rate of 3.7%

ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for diethyl

phosphorochoridothioate, 0,0-dethyl phosphoro- choridothioate

(DEPCT) (CAS No. 2524–04–1) (provided for in HTS subheading

2920.10.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

REFINED QUINOLINE (SEC. 1150)

Present law

Chemical refined quinoline (CAS No. 91–22–5) (provided for in

HTS subheading 2933.40.70) is subject to an NTR duty rate of

10.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for refined quinoline (CAS No. 91–

22–5) (provided for in HTS subheading 2933.40.70), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product indusVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
21

tries more competitive without jeopardizing any domestic manufacturer.

DMDS (SEC. 1151)

Present law

2,2-dithiobis(8-fluoro-5-methoxy)[1,2,4] triazolo[1,5-c] pyrimidine

(DMDS) (CAS No. 166524–74–9) (as provided for in HTS subheading 2933.59.80), is subject to an NTR duty rate of 10.4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 2,2-dithiobis(8-fluoro-5-

methoxy)[1,2,4] triazolo[1,5-c] pyrimidine (DMDS) (CAS No.

166524–74–9) (provided for in HTS subheading 2933.59.80), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

VISION INSPECTION SYSTEMS (SEC. 1152)

Present law

Automated visual inspection systems of a kind used for physical

inspection of capacitors (as provided for in HTS subheading

9031.49.90, 9031.80.80), are subject to NTR duty rate of 3.5% ad

valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for automated visual inspection

systems of a kind used for physical inspection of capacitors (provided for in HTS subheading 9031.49.9000, 9031.80.8085), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these products to reduce costs, making the products more competitive without

jeopardizing any domestic manufacturer.

ANODE PRESSES (SEC. 1153)

Present law

Anode presses used for pressing tantalum powder into anodes

(provided for in HTS subheading 8462.99.80) are subject to an NTR

duty rate of 2.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for anode presses used for pressing tantalum powder into anodes (provided for in HTS subheading

8462.99.80), as duty free until December 31, 2003.

22

Reason for change

This provision would enable U.S. manufacturers of these products to reduce costs, making the products more competitive without

jeopardizing any domestic manufacturer.

TRIM AND FORM MACHINES (SEC. 1154)

Present law

Trimming and forming machines used in the manufacture of surface mounted electronic components other than semi-conductors

prior to marking (as provided for in HTS subheading 8463.30.00,

8462.21.80, 8462.29.80) is subject to an NTR duty rate of 4.4% ad

valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for Trimming and forming machines used in the manufacture of surface mounted electronic components other than semi-conductors prior to marking (provided for

in HTS subheading 8463.30.00, 8462.21.80, 8462.29.80), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these products to reduce costs, making the products more competitive without

jeopardizing any domestic manufacturer.

CERTAIN ASSEMBLY MACHINES (SEC. 1155)

Present law

Assembly machines used for assembling processed anodes to lead

frames (as provided for in HTS subheading 8479.89.97) are subject

to an NTR duty rate of 2.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for assembly machines used for

assembling processed anodes to lead frames (provided for in HTS

subheading 8479.89.97), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the products more competitive

without jeopardizing any domestic manufacturer.

THIONYL CHLORIDE (SEC. 1156)

Present law

Thionyl chloride (CAS No. 7719–09–7) (provided for in HTS subheading 2812.10.50) is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

Harmonized Tariff Schedule of the United States (HTS) by inserting a new heading for thionyl chloride (CAS No. 7719–09–7) (proVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00022 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
23

vided for in HTS subheading 2812.10.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PHENYLMETHYL HYDRAZINECARBOXYLATE (SEC. 1157)

Present law

Phenylmethyl hydrazinecarboxylate (CAS No. 5331–43–1) (provided for in HTS subheading 2928.00.25) is subject to an NTR duty

rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for phenylmethyl

hydrazinecarboxylate (CAS No. 5331–43–1) (provided for in subheading 2928.00.25), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs of manufacturing the insecticide in the United States,

making the final product more affordable to U.S. farmers without

jeopardizing any domestic manufacturer.

TRALKOXYDIM FORMULATED (SEC. 1158)

Present law

2-[1-(Ethoxyimino)-propyl]-3-hy-droxy-5-(2,4,6-trimethylphenyl)

-2-cyclohexen-1-one (Tralkoxydim) (CAS No. 87820–88–0) (provided

for in HTS subheading 2925.20.60) and mixtures of 2-[1-

(Ethoxyimino) - propyl]-3-hydroxy-5-(2,4,6-trimethylphenyl)-2-cyclohexen-1-one (Tralkoxydim) (CAS No. 87820–88–0) and application

adjuvants (provided for in HTS subheading 3808.30.15) are subject

to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting the new headings 2-[1-(Ethoxyimino)-propyl]-3-

hy-droxy-5-(2,4,6-trimethylphenyl)-2-cyclohexen-1-one (Tralkoxydim) (CAS No. 87820–88–0) (provided for in HTS subheading

2925.20.60) and mixtures of 2-[1-(Ethoxyimino)-propyl]-3-hydroxy5-(2,4,6-trimethylphenyl)-2-cyclohexen-1-one (Tralkoxydim) (CAS

No. 87820–88–0) and application adjuvants (provided for in HTS

subheading 3808.30.15), at a reduced rate duty until December 31,

2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

24

KNOO2 (SEC. 1159)

Present law

2-[2,4-Dichloro-5-hydroxyphenyl)-hydrazono]-1-piperidine-carboxylic acid, methyl ester (CAS No. 159393–46–1) (provided for in HTS

subheading 2933.39.61) is subject to NTR duty rate of 6.5–8.6% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-[2,4-Dichloro-5-

hydroxyphenyl)-hydrazono]-1-piperidine-carboxylic acid, methyl

ester (CAS No. 159393–46–1) (provided for in HTS subheading

2933.39.61), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs of manufacturing the herbicide in the United States,

making the final product more affordable to U.S. farmers without

jeopardizing any domestic manufacturer.

KL084 (SEC. 1160)

Present law

2-Imino-1-methoxycarbonyl-piperidine hydrochloride (KL084)

(CAS No. 159393–48–3) (provided for in HTS subheading

2933.39.61) is subject to an NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

Harmonized Tariff Schedule of the United States by inserting a

new heading for 2-Imino-1-methoxycarbonyl-piperidine hydrochloride (KL084) (CAS No. 159393–48–3) (provided for in HTS subheading 2933.39.61), with a duty reduction to 5.4% ad valorem for

2000, to 4.7% for 2001, to 4.0% for 2002, and to 3.3% for 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs of manufacturing the herbicide in the United States,

making the final product more affordable to U.S. farmers without

jeopardizing any domestic manufacturer.

IN–N5297 (SEC. 1161)

Present law

2-(Methoxycarbonyl)-benzylsulfonamide (IN N5297) (CAS No.

59777–72–9) (provided for in HTS subheading 2935.00.75) is subject to NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-(Methoxycarbonyl)-

benzylsulfonamide (IN N5297) (CAS No. 59777–72–9) (provided for

in HTS subheading 2935.00.75), as duty free until December 31,

2003.

25

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs of manufacturing the herbicide in the United States,

making the final product more affordable to U.S. farmers without

jeopardizing any domestic manufacturer.

AZOXYSTROBIN FORMULATED (SEC. 1162)

Present law

Methyl(E) -2-[2-[6-(2-cyanophenoxy)-pyrimidin-4-yloxy]phenyl]-3-

methoxyacrylate (CAS No. 131860 33 8) (provided for in HTS subheading 3808.20.15) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Methyl(E)-2-[2-[6-(2-

cyanophenoxy)-pyrimidin-4-yloxy]phenyl]-3-methoxyacrylate (CAS

No. 13860–33–8) (provided for in HTS subheading 3808.20.15),

with a temporary duty reduction to 5.7% ad valorem until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

FUNGAFLOR 500 EC (SEC. 1163)

Present law

Mixtures of enilconazole (CAS No. 35554–44–0 or 73790–28–0)

and application adjuvants (provided for in HTS subheading

3808.20.15) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Mixtures of enilconazole (CAS

No. 35554–44–0 or 73790–28–0) and application adjuvants (provided for in HTS subheading 3808.20.15), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

NORBLOC 7966 (SEC. 1164)

Present law

2-(2′-Hydroxy-5′-methacrylyloxyethylphenyl)-2H-benzotriazole

(CAS No. 96478–09–0 and 73790–28–0) (provided for in HTS subheading 2933–90–79), is subject to NTR duty rate of 9.3% ad valorem.

26

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-(2′-Hydroxy-5′-

methacrylyloxyethylphenyl)-2H-benzotriazole (CAS No. 96478–09–0

and 73790–28–0) (provided for in HTS subheading 2933.90.79), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

IMAZALIL (SEC. 1165)

Present law

Enilconazole (CAS No. 35554–44–0) (provided for in HTS subheading 2933.29.35), is subject to NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Enilconazole (CAS No.

355540–44–0) (provided for in HTS subheading 2933.29.35), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

1,5-DICHLOROANTHRAQUINONE (SEC. 1166)

Present law

1,5-Dichloroanthraquinone (CAS No. 82–46–2) (as provided for in

HTS subheading 2914.70.40) is subject to NTR duty rate of 7.7%

ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for 1,5-Dichloroanthraquinone

(CAS No. 82–46–2) (as provided for in HTS subheading

2914.70.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

27

ULTRAVIOLET DYE (SEC. 1167)

Present law

9-Anthracene-carboxylic acid, (triethoxysilyl)-methyl ester (provided for in HTS subheading 2931.00.30) is subject to an NTR duty

rate of from 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 9-Anthracene-carboxylic acid,

(triethoxysilyl)-methyl ester (provided for in HTS subheading

2931.00.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

VINCLOZOLIN (SEC. 1168)

Present law

3-(3,5-Dichlorophenyl)-5- ethenyl-5-methyl-2,4- oxazolidinedione

(CAS No. 50471–44–8) (provided for in FITS subheading

2934.90.12) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 3-(3,5-Dichlorophenyl)-5- ethenyl-5-methyl-2,4-oxazolidinedione (CAS No. 50471–44–8) (provided

for in HTS subheading 2934.90.12), as duty free until December 31,

2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TEPRALOXYDIM (SEC. 1169)

Present law

Mixtures of E-2-[I-[[(3-chloro-2-pro-penyl)oxy]-imino]propyl]-3-hydroxy-5-(tetrahydro-2H-pyran-4-yl)-2-cyclo-hexen-1-one (CAS No.

149979–41–9) and application adjuvants (provided for in subheading 3808.30.50) is subject to an NTR duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Mixtures of E-2-[1-[[(3-chloro2-pro-penyl)oxy]-imino]propyl]-3-hydroxy-5-(tetrahydro-2H-pyran-4-

yl)-2-cyclo-hexen-1 -one (CAS No. 149979–41–9) and application adjuvants (provided for in subheading 3808.30.50), as duty free until

December 31, 2003.

28

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PYRIDABEN (SEC. 1170)

Present law

4-Chloro-2-(1,1-dimethylethyl)-5-(((4-(1,1-dimethylethyl)phenyl)-

methyl)thio)-3-(2H)-pyridazinone (CAS No. 96489–71–3) (provided

for in HTS subheading 2933.90.22) is subject to an NTR duty rate

of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4-Chloro-2(1, 1-dimethylethyl)-

5 (((4-(1, 1-dimethylethyl)phenyl)-methyl)thio)-3-(2H)-pyridazinone

(CAS No. 96489–71–3) (provided for in HTS subheading

2933.90.22), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

2-ACETYLNICOTINIC ACID (SEC. 1171)

Present law

2-Acetylnicotinic acid (CAS No. 89942–59–6) (provided for in

HTS subheading 2933.39.61) is subject to NTR duty rate of 9.3%

ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-Acetylnicotinic acid (CAS No.

89942–59–6) (provided for in HTS subheading 2933.39.61), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

SAMe (SEC. 1172)

Present law

Food supplement preparation of S-adenosylmethionine 1,4-

butanedisulfonate (CAS No. 101020–79–5) (provided for in HTS

subheading 2106.90.99) is subject to an NTR duty rate of 6.4% ad

valorem.

29

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Food supplement preparation

of S-adenosylmethionine 1,4-butanedisulfonate (CAS No. 101020–

79–5) (provided for in HTS subheading 2106.90.99), with a duty reduction to 5.5%.

Reason for changes

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PROCION CRIMSON H–EXL (SEC. 1173)

Present law

1,5-Naphthalenedisulfonic acid, 2-((8-((4-chloro-6-((3-(((4-choloro6-((7-((1,5-disulfo-2-naphthalenyl)azo)-8-hydroxy-3,6-disulfo-1-naphthlenyl)amino)-1,3,5-triazin2-yl) amino)methyl phenyl)amino)-1,3,5-

triazin-2-yl)amino)-l-hydroxy-3, 6-disulfo-2-naphthalenyl)azo)-, octa-

(CAS No. 186554–26–7) (provided for in HTS subheading

3204.16.30) is subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 1,5-Naphthalenedisulfonic

acid, 2-((8-((4-chloro-6-((3-(((4-choloro-6-((7((1,5-disulfo-2-

naphthalenyl)azo)-8-hydroxy-3,6-disulfo-1-naphthlenyl)amino)-1,3,5-

triazin-2-yl)amino)methyl)phenyl)amino)-1,3,5-triazin-2-yl)amino)-

1-hydroxy-3, 6-disulfo-2-naphthalenyl) azo)-,octa- (CAS No. 186554–

26–7) (provided for in HTS subheading 3204.16.30), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DISPERSOL CRIMSON SF GRAINS (SEC. 1174)

Present law

Mixture of 3-phenyl-7-(4-propoxyphenyl)benzo-(1,2-b:4,5-b′)-

difuran-2,6-dione (CAS No. 79694–17–0); 4-(2,6-dihydro-2,6-dioxo)-

7-phenylbenzo-(1,2-b:4,5-b′)-difuran-3-ylphenoxyacetic acid, 2-

ethoxyethyl ester (CAS No. 126877–05–2); 4-(2,6-dihydro-2,6-dioxo7-(4-propoxphenyl)-benzo-(1,2-b:4,5-b′)-difuran-3-y l)

phenoxy)phenoxy)-aceticacid, 2-ethoxyethyl ester (CAS No. 126877–

06–3) (the foregoing mixture provided for in subheading

3204.11.35) is subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Mixture of 3-phenyl-7-(4-

propoxyphenyl)benzo-(1,2-b:4,5-b′)-difuran-2,6-dione (CAS No.

30

79694–17–0); 4-(2,6-dihydro-2,6-dioxo)-7-phenylbenzo-(1,2-b:4,5-b′)-

difuran-3-ylphenoxyacetic acid, 2-ethoxyethyl ester (CAS No.

126877–05–2); 4-(2,6-dihydro-2,6-dioxo-7-(4-propoxphenyl)-benzo-

(1,2-b:4,5-b′)-difuran-3-yl)-phenoxy)phenoxy)-aceticacid, 2-

ethoxyethyl ester (CAS No. 126877–06–3) (the foregoing mixture

provided for in subheading 3204.11.35), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PROCION NAVY H–EXL (SEC. 1175)

Present law

Procion Navy H–EXL 9902.32.09, a mixture of 2,7-

Naphthalenedisulfonic acid, 4-amino-3,6-bis[[5-[[4-chloro-6- [(2-

methyl-4-sulfophenyl)amino]- 1,3,5-triazin-2-yl]amino]-2-

sulfophenyl]azo]-5-hydroxy-, hexasodium salt (CAS No. 186554–27–

8); and 1,5-Naphthalenedisulfonic acid, 2-((8-((4-chloro-6-((3-(((4-

chloro-6((7-((1,5-disulfo-2-naphthalenyl)azo)-8-hydroxy-3,6-disulfo-1-

naphthlenyl)amino)-1,3,5-triazin-2-yl)amino)methyl)phenyl)amino)-

1,3,5-triazin-2-yl)amino)-1-hydroxy-3,6 -disulfo-2-naphthalenyl)azo)-

, octa- (CAS No. 186554–26–7) (provided for in subheading

3204.16.30) is subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Procion Navy H EXL, a mixture of 2,7-Naphthalenedisulfonic acid, 4-amino-3,6-bis[[5-[[4-

chloro-6-[(2-methyl-4-sulfophenyl) amino]-1,3,5 -triazin-2-yl]amino]

-2-sulfophenyl]azo]-5-hydroxy-, hexasodiurn salt (CAS No. 186554–

27–8); and 1,5-Naphthalenedisulfonic acid, 2-((8-((4-chloro-6-((3-(((4-

chloro-6((7-((1,5-disulfo-2-naphthalenyl)azo)-8-hydroxy-3,6-disulfo-1-

naphthlenyl)amino)-1,3,5-triazin-2-yl)amino)methyl)phenyl)amino)-

1,3,5-triazin-2-yl)amino)-1-hydroxy-3,6-disulfo-2-naphthalenyl)azo)-,

octa- (CAS No. 186554–26–7) (provided for in HTS subheading

3204.16.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PROCION YELLOW H-EXL (SEC. 1176)

Present law

Reactive Yellow 138:1 mixed with non-color dispersing agent,

anti-dusting agent and water (CAS No. 72906–25–3) (provided for

in HTS subheading 3204.16.30) is subject to NTR duty rate of 9.9%

ad valorem.

31

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Reactive Yellow 138:1 mixed

with non-color dispersing agent, anti-dusting agent and water (CAS

No. 72906–25–3) (provided for in HTS subheading 3204.16.30), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

2-PHENYLPHENOL (SEC. 1177)

Present law

2-phenylphenol (CAS No. 90–43–7) (provided for in HTS subheading 2907.19.80) is subject to an NTR duty rate of 5.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-Phenylphenol (CAS No. 90–

43–7) (provided for in HTS subheading 2907.19.80), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

2-METHOXY-1-PROPENE (SEC. 1178)

Present law

2-Methoxy-1-propene (CAS No. 116–11–0) (provided for in HTS

subheading 2909.19.18) is subject to an NTR duty rate of 5.5% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-Methoxy-I-propene (CAS No.

116–11–0) (provided for in HTS subheading 2909.19.18), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

3,5-DIFLUOROANILINE (SEC. 1179)

Present law 3,5-Difluroaniline (CAS No. 372–39–4) (provided for

in HTS subheading 2921.42.65) is currently subject to NTR duty

rate of 9.3% ad valorem.

32

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 3,5-Difluroaniline (CAS No.

372–39–4) (provided for in HTS subheading 2921.42.65), with

staged temporary duty reductions to ad valorem rate of 7.4% for

calendar years 2000 and 2001, 6.7% for calendar year 2002, and

6.3% for calendar year 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

QUINCLORAC (SEC. 1180)

Present law

3,7-Dichloro-8-quinoline carboxylic acid (CAS No. 84087–01–4)

(provided for in HTS subheading 2933.40.30) is currently subject to

NTR duty rate of 8.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 3,7-Dichloro-8-quinoline carboxylic acid (CAS No. 84087–01–4) (provided for in HTS subheading 2933.40.30), with staged temporary duty reductions to ad

valorem rate of 6.8% for calendar years 2000 and 2001, 5.9% for

calendar year 2002, and 5.4% for calendar year 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DISPERSOL BLACK XF GRAINS (SEC. 1181)

Present law

Mixture of Disperse blue 284, Disperse brown 19 and Disperse

red 311 with non-color dispersing agent (provided for in HTS subheading 3204.11.35) is subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting the new subheading for Dispersol Black XF

Grains, mixture of Disperse blue 284, Disperse brown 19 and Disperse red 311 with non-color dispersing agent (provided for in HTS

subheading 3204.11.35) as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

33

FLUROXYPYR, 1-METHYLHEPTYL ESTER (FME) (SEC. 1182)

Present law

Fluroxypyr 1-methylheptyl ester (1-Methylheptyl ((4 amino-3,5-

dichloro-6-fluoro2-pyridinyl)oxy)acetate) (CAS No. 81406–37–3)

(provided for in HTS subheading 2933.39.25) is subject to NTR

duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for fluroxypyr 1-methylheptyl

ester (1-Methylheptyl ((4 amino-3,5-dichloro-6-fluoro-2-

pyridinyl)oxy)acetate) (CAS No. 81406–37–3) (provided for in HTS

subheading 2933.39.25), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

SOLSPERSE 17260 (SEC. 1183)

Present law

12-Hydroxyoctadecanoic acid, reaction product with N,N-dimethyl-1,3-propanediamine, dimethyl sulfate, quaternized, 60% solution in toluene (CAS No. 70879–66–2) (provided for in HTS subheading 3824.90.28) is subject to NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 12-Hydroxyoctadecanoic acid,

reaction product with N,N-dimethyl-1, 3-propanediamine, dimethyl

sulfate, quaternized, 60% solution in toluene (CAS No. 70879–66–

2) (provided for in HTS subheading 3824.90.28), as duty free until

December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic 38 manufacturer.

SOLSPERSE 17000 (SEC. 1184)

Present law

12-Hydroxyoctadecanoic acid, reaction product with N,N-dimethyl-1,3-propanediamine, dimethyl sulfate, quaternized (CAS

No. 70879–66–2) (provided for in HTS subheading 3824.90.40) is

subject to an NTR duty rate of 4.6% ad valorem.

Explanation of provision

This provision would amend subchapter 11 of chapter 99 of the

HTS by inserting a new heading for 12-Hydroxyoctadecanoic acid,

reaction product with N,N-dimethyl- 1,3 -propanediamine, dimethyl

34

sulfate, quaternized (CAS No. 70879 66 2) (provided for in HTS

subheading 3824.90.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

SOLSPERSE 5000 (SEC. 1185)

Present law

1-Octadecanaminium, N,N-dimethyl-N-octadecyl-, (Sp-4-2)-

[29H,31H-phthalocyanine2-sulfonato(3-)-N 29, N 30, N 31, N 32

]cuprate(1-) (CAS No.70750–63–9) (provided for in HTS subheading

3824.90.28) is subject to NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 1-Octadecanaminium, N,N-dimethyl-N-octadecyl-, (Sp-4-2)- [29H,31H-phthalocyanine-2-

sulfonato(3-)-N 29, N 30, N 31 N 32 ]cuprate(1-) (CAS No. 70750–

63–9) (CAS No. 70750–63–9) (provided for in HTS subheading

3824.90.28), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CERTAIN TAED CHEMICALS (SEC. 1186)

Present law

Tetraacetylethylenediamine (CAS No. 10543–57–4) (provided for

in HTS subheading 2924.10.10) is subject to an NTR duty rate of

3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for tetraacetylethylenediamine

(CAS No. 10543–57–4) (provided for in HTS subheading

2924.10.10), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

ISOBORNYL ACETATE (SEC. 1187)

Present law

Isobornyl acetate (CAS No. 125–12–2) (provided for in HTS subheading 2915.39.45) is subject to an NTR duty rate of 4.8% ad valorem.

35

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by a new heading for Isobornyl acetate (CAS No. 125–12–2)

(provided for in HTS subheading 2915.39.45), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

SOLVENT BLUE 124 (SEC. 1188)

Present law

Solvent Blue 124 (CAS No. 29243–26–3) (provided for in HTS

subheading 3204.19.20) is subject to an NTR duty rate of 9.9% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Solvent Blue 124 (CAS No.

29243–26–3) (provided for in HTS subheading 3204.19.20), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers to reduce costs,

making-these companies and downstream product industries more

competitive without jeopardizing any domestic manufacturer.

SOLVENT BLUE 104 (SEC. 1189)

Present law

Solvent Blue 104 (CAS No. 116–75–6) (provided for in HTS subheading 3204.19.20) is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Solvent blue 104 (CAS No.

116–75–6) (provided for in HTS subheading 3204.19.20), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers to reduce costs,

making these companies and downstream product industries more

competitive without jeopardizing any domestic manufacturer.

PRO-JET MAGENTA 364 STAGE (SEC. 1190)

Present law

5-[4-(4,5-Dimethyl-2-sulfophenylamino)-6-hydroxy-[1,3,5-triazin2-yl amino]-4-hydroxy-3-(1-sulfonaphthalen-2-ylazo)naphthalene2,7-disulfonic acid, sodium ammonium salt (provided for in HTS

subheading 3204.14.30) is subject to NTR duty rate of 6.5%–9% ad

valorem.

36

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by a new heading for 5-[4(4,5-Dimethyl-2-sulfophenylamino)-

6-hydroxy-[1,3,5-triazin-2-yl amino]-4-hydroxy-3-(1 sulfonaphth

alen-2-ylazo)naphthalene-2,7-disulfonic acid, sodium ammonium

salt (provided for in HTS subheading 3204.14.30), as duty free until

December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers to reduce costs,

making these companies and downstream product industries more

competitive without jeopardizing any domestic manufacturer.

4-AMINO-2,5-DIMETHOXY-N-PHENYLBENZEN SULFONAMIDE (SEC. 1191)

Present law

4-Amino-2,5-dimethyoxy-N-phenylbenzene sulfonamide(CAS No.

52298–44–9) (provided for in HTS subheading 2935.00.10) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4-Amino-2,5-dimethyoxy-Nphenylbenzene sulfonamide (CAS No. 52298–44–9) (provided for in

HTS subheading 2935.00.10), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

UNDECYLENIC ACID (SEC. 1192)

Present law

10-Undecylenic acid (CAS No. 112–38–9) (provided for in HTS

subheading 2916.19.30) is subject to an NTR duty rate of 6. 1% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 10-Undecylenic acid (CAS No.

112–38–9) (provided for in HTS subheading 2916.19.30), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

2-METHYL-4-CHLOROPHENOXYACETIC ACID (SEC. 1193)

Present law

2-Methyl-4-chlorophenoxyacetic acid (CAS No. 94–74–6) and its

2-ethylhexl ester (CAS. No. 29450–45–1) (provided for in HTS subVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
37

heading 2918.90.20) and 2-Methyl-4-chlorophenoxy-acetic acid, dimethyl-amine salt (CAS No. 2039–46–5) (provided for in subheading 2921.19.60) is subject to NTR duty rate of 6.5%–8.6% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-Methyl-4-

chlorophenoxyacetic acid (CAS No. 94–74–6) and its 2-ethylhexl

ester (CAS. No. 29450–45–1) (provided for in HTS subheading

2918.90.20) and 2-Methyl-4-chlorophenoxy-acetic acid, dimethylamine salt (CAS No. 2039–46–5) (provided for in HTS subheading

2921.19.60), with a duty reduction to 2.6% until December 31,

2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

IMINODISUCCINATE (SEC. 1194)

Present law

Mixtures of sodium salts of iminodisuccinic acid (provided for in

HTS subheading 3824.90.90) is subject to an NTR duty rate of 5%

ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of sodium salts of

iminodisuccinic acid (provided for in HTS subheading 3824.90.90),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

IMINODISUCCINATE SALTS AND AQUEOUS SOLUTIONS (SEC. 1195)

Present law

Mixtures of sodium salts of iminodisuccinic acid, dissolved in

water (provided for in HTS subheading 3824.90.90) are subject to

an NTR duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of sodium salts of

iminodisuccinic acid, dissolved in water (provided for in HTS subheading 3824.90.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product indusVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
38

tries more competitive without jeopardizing any domestic manufacturer.

POLY(VINYL CHLORIDE) (PVC) SELF ADHESIVE SHEETS (SEC. 1196)

Present law

Poly(vinyl chloride) self-adhesive sheets of a type used to make

bandages (provided for in HTS subheading 3919.10.20) are subject

to an NTR duty rate of 5.8% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading, Poly(vinyl chloride) self-adhesive

sheets of a type used to make bandages (provided for in HTS subheading 3919.10.20), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers to reduce costs,

making these companies more competitive without jeopardizing

any domestic manufacturer.

2-BUTYL-2-ETHYLPROPANEDIOL (SEC. 1197)

Present law

2-Butyl-2-ethylpropanediol (CAS No. 115–84–4) (provided for in

HTS subheading 2905.39.90) is subject to NTR duty rate of 8.2%

ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2-Butyl-2-ethylpropanediol

(CAS No. 115–84–4) (provided for in HTS subheading 2905.39.90),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CYCLOHEXADEC-8-EN-1-ONE (SEC. 1198)

Present law

Cyclohexadec-8-en-1-one (CAS No. 3100–36–5) (provided for in

subheading 2914.29.50) is subject to an NTR duty rate of 4.8% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Cyclohexadec-8-en-1-one (CAS

No. 3100–36–5) (provided for in HTS subheading 2914.29.50), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product indusVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00038 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
39

tries more competitive without jeopardizing any domestic manufacturer.

PAINT ADDITIVE CHEMICAL (SEC. 1199)

Present law

N-Cyclopropyl-N′-(1,1-dimethylethy)-6-(methylthio)-1,3,5-triazine

-2,4-diamine (CAS No. 28159–98–0) (provided for in HTS subheading 2933.69.60) is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for N-Cyclopropyl-N-(1, 1-

dimethylethy) -6-(methylthio)-1,3,5-triazine-2,4-diamine (CAS No.

28159–98–0) (provided for in HTS subheading 2933.69.60), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

o-CUMYL-OCTYLPHENOL (SEC. 1200)

Present law

o-cumyl-octylphenol (CAS No. 73936–80–8) (provided for in HTS

subheading 2907.19.80) is subject to an NTR duty rate of 5.5% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for o-cumyl-octylphenol (CAS No.

73936–80–8) (provided for in HTS subheading 2907.19.80), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CERTAIN POLYAMIDES (SEC. 1201)

Present law

Micro-porous, ultra fine, spherical forms of polyamide-6, polyamide-12, polyamide-6,12 powders (CAS No. 25038–54–4 and

25038–74–8 and 25191–04–1) (provided for in HTS subheading

3908.10.00) are subject to NTR duty rate of 6.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for micro-porous, ultra fine, spherical forms of polyamide-6, polyamide-12, polyamide-6,12 powders

(CAS No. 25038–54–4 and 25038–74–8 and 25191–04–1) (provided

40

for in HTS subheading 3908.10.00)), as duty free until December

31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

MESAMOLL (SEC. 1202)

Present law

Mixture of phenyl esters of C10–C18 alkylsulfonic acids (CAS No.

70775–94–9) (provided for in HTS subheading 3812.20. 10) is subject to an NTR duty rate of 11% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of phenyl esters of

C10–C18 alkylsulfonic acids (CAS No. 70775–94–9) (provided for in

HTS subheading 3812.20.10), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

VULKALENT E/C (SEC. 1203)

Present law

A mixture of N-Phenyl-N-((trichloromethyl) thio)-benzene

sulfonamide, calcium carbonate, and mineral oil (provided for in

HTS subheading 3824.90.28) is subject to an NTR duty rate of 9.3%

ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for a mixture of N-Phenyl-N-

((trichloromethyl)thio)-benzenesulfonamide, calcium carbonate, and

mineral oil (provided for in HTS subheading 3824.90.28), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

BAYTRON M (SEC. 1204)

Present law

A certain 3,4-Ethylenedioxythiophene (CAS No. 126213–50–1)

(provided for in HTS subheading 2934.90.90) is subject to an NTR

duty rate of 5% ad valorem.

41

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 3,4-Ethylenedioxythiophene

(CAS No. 126213–50–1) (provided for in HTS subheading

2934.90.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

BAYTRON C-R (SEC. 1205)

Present law

Aqueous catalytic preparations based on iron (III)

toluenesulfonate (CAS No. 77214–82–5) (provided for in HTS subheading 3815.90.50) is subject to an NTR duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for aqueous catalytic preparations

based on iron (III) toluenesulfonate (CAS No. 77214–82–5) (provided for in HTS subheading 3815.90.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

BAYTRON P (SEC. 1206)

Present law

Aqueous dispersions of poly (3,4-ethylene-dioxythiophene)-poly

(styrenesulfonate) (cationic) (CAS No. 155090–83–8) (provided for

in HTS subheading 3911.90.25) is subject to an NTR duty rate of

6.1% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for aqueous dispersions of poly

(3,4-ethylene-dioxythiophene)-poly (styrenesulfonate) (cationic)

(CAS No. 155090–83–8) (provided for in HTS subheading

3911.90.25), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

42

DIMETHYL DICARBONATE (SEC. 1207)

Present law

Dimethyl dicarbonate (CAS No. 4525–33–1) (provided for in HTS

subheading 2920.90.50) is subject to an NTR duty rate of 3.7% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for dimethyl dicarbonate (CAS No.

4525–33–1) (provided for in HTS subheading 2920.90.50), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

KNO01 (A HYDROCHLORIDE) (SEC. 1208)

Present law 48

2,4-Dichloro-5-hydrazinophenol monohydrochloride (CAS No.

189573–21–5) (provided for in HTS subheading 2928.00.25) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 2,4-Dichloro-5-hydrazinophenol

monohydrochloride (CAS No. 189573–21–5) (provided for in HTS

subheading 2928.00.25), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs of manufacturing the herbicide in the United States,

making the final product more affordable to U.S. farmers without

jeopardizing any domestic manufacturer.

KL540 (SEC. 1209)

Present law

Methyl-4-trifluoromethoxyphenyl-N-(chlorocarbonyl) carbarnate

(CAS No. 173903–15–6) (provided for in HTS subheading

2924.29.70) is subject to an NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for methyl-4-trifluoromethoxyphenyl-N-(chlorocarbonyl) carbarnate (CAS No. 173903–

15–6) (provided for in HTS subheading 2924.29.70), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs of manufacturing the herbicide in the United States,

43

making the final product more affordable to U.S. farmers without

jeopardizing any domestic manufacturer.

DPC 083 (SEC.1210)

Present law

(S)-6-chloro-3,4-dihydro-4E-cyclopropylethenyl-4-trifluoromethyl2(1H)-quinozolinone (CAS No. 214287–99–7) (provided for in HTS

subheading 2933.90.46) is subject to an NTR duty rate of 6.5% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for (S)-6-chloro-3,4-dihydro-4Ecyclopropylethenyl-4-trifluoromethyl-2(1H)-quinozolinone (CAS No.

214287–99–7) (provided for in FITS subheading 2933.90.46), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

DPC 961 (SEC. 1211)

Present law

(S)-6-chloro-3,4-dihydro-4-cyclopropylethynyl-4-trifluoromethyl2(1H)-quinozolinone (CAS No. 214287–88–4) (provided for in HTS

subheading 2933.90.46) is subject to an NTR duty rate of 6.5% ad

valorem.

Explanation of provision

This provision would amend subchapter 11 of chapter 99 of the

HTS by inserting a new heading for (S)-6-chloro-3,4-dihydro-4-

cyclopropylethynyl-4-trifluoromethyl-2(lH)- quinozolinone (CAS No.

214287 88 4) (provided for in HTS subheading 2933.90.46), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PETROLEUM SULFONIC ACIDS, SODIUM SALTS (SEC. 1212)

Present law

Petroleum sulfonic acids, sodium salts (CAS No. 68608–26–4)

(provided for in HTS subheading 3402.11.50) is subject to an NTR

duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Petroleum sulfonic acids, soVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00043 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
44

dium salts (CAS No. 68608–26–4) (provided for in HTS subheading

3402.11.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PRO-JET CYAN 1 PRESS PASTE (SEC. 1213)

Present law

Direct blue 199 acid (CAS No. 80146–12–9) (provided for in HTS

subheading 3204.14.30) is subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Direct blue 199 acid (CAS No.

80146–12–9) (provided for in HTS subheading 3204.14.30), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

PRO-JET BLACK ALC POWDER (SEC. 1214)

Present law

Direct black 184 (provided for in HTS subheading 3204.14.30) is

subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Direct black 184 (provided for

in HTS subheading 3204.14.30), as duty free until December 31,

2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

PRO-JET FAST YELLOW 2 RO FEED (SEC. 1215)

Present law

Direct yellow 173 (provided for in HTS subheading 3204.14.30) is

subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Direct yellow 173 (provided for

in HTS subheading 3204.14.30), as duty free until December 31,

2003.

45

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

SOLVENT YELLOW 145 (SEC. 1216)

Present law

Solvent yellow 145 (CAS No. 27425–55–4) (provided for in HTS

subheading 3204.19.25) is subject to an NTR duty rate of 11.9% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Solvent yellow 145 (CAS No.

27425–55–4) (provided for in HTS subheading 3204.19.25), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

PRO-JET FAST MAGENTA 2 RO FEED (SEC. 1217)

Present law

Direct violet 107 (provided for in HTS subheading 3204.14.30) is

subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting in numerical sequence the new heading for Direct

violet 107 (provided for in HTS subheading 3204.14.30), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

PRO-JET FAST CYAN 2 STAGE (SEC. 1218)

Present law

Direct blue 307 (provided for in HTS subheading 3204.14.30) is

subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Direct blue 307 (provided for

in HTS subheading 3204.14.30), as duty free until December 31,

2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

46

PRO-JET CYAN 485 STAGE (SEC. 1219)

Present law

[(2-Hydroxyethylsulfamoyl)sulfophthalocyaninato] copper (II),

mixed isomers (provided for in HTS subheading 3204.14.30) is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for [(2-Hydroxyethylsulfamoyl)sulfophthalocyaninato] copper (II), mixed isomers (provided for in HTS subheading 3204.14.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TRIFLUSULFURON METHYL FORMULATED PRODUCT (SEC. 1220)

Present law

Methyl 2-[[[[[-4(dimethylamino)-6-(2,2,2-trifluoroethoxy)-1,3,5-

triazin-2-yl]-amino]carbonyl] amino] sulfonyl]-3-methylbenzoate

(CAS No. 126535–15–7) (provided for in HTS subheading

3808.30.15) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for methyl 2-[[[[[-4(dimethylamino)-6-(2,2,2-trifluoroethoxy)-1,3,5-triazin-2-yl]-

amino]carbonyl]amino]sulfonyl]-3-methylbenzoate (CAS No.

126535–15–7) (provided for in subheading 3808.10.15), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs of manufacturing the herbicide in the United States,

making the final product more affordable to U.S. farmers without

jeopardizing any domestic manufacturer.

PRO-JET FAST CYAN 3 STAGE (SEC. 1221)

Present law

[29H, 31H-Phthalocyaninato (2-)-xN29, xN30, xN31, xN32],

copper[[2-[4-(2-amino-ethyl)-1-piperazinyl] ethyl]-amino]-

sulfonylaminosulfonyl [(2-hydroxyethyl)amino]-sulfonyl [[2-[[2-(1-

piperazinyl)ethyl] amino) ethyl]amino]- sulfonyl sulfo derivatives

and their sodium salts (provided for in HTS subheading

3204.14.30) is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for [29H, 31H-Phthalocyaninato

(2-xN29, xN30, xN31, xN32], copper[[2-[4-(2-amino-ethyl)-1-

47

piperazinyl] ethyl]-amino]-sulfonylaminosulfonyl [(2-hydroxyethyl)amino]-sulfonyl [[2-[[2-(l-piperazinyl)ethyl]amino)

ethyl]amino]- sulfonyl sulfo derivatives and their sodium salts (provided for in HTS subheading 3204.14.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PRO-JET CYAN 1 RO FEED (SEC. 1222)

Present law

Direct blue 199 sodium salt (CAS No. 90295–11–7) (provided for

in HTS subheading 3204.14.30) is subject to an NTR duty rate of

9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting the new heading for Direct blue 199 sodium salt

(CAS No. 90295–11–7) (provided for in HTS subheading

3204.14.30), as duty free until December 31, 2000, and a staged

rate reduction thereafter.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PRO-JET FAST BLACK 287 NA PASTE/LIQUID FEED (SEC. 1223)

Present law

Direct black 195 (CAS No. 160512–93–6) (provided for in HTS

subheading 3204.14.30) is subject to an NTR duty rate of 9.9% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting the new heading for Direct black 195 (CAS No.

160512–93–6) (provided for in HTS subheading 3204.14.30), as

duty free until December 31, 2000 and a staged rate reduction

thereafter.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the products more competitive

without jeopardizing any domestic manufacturer.

48

4-(CYCLOPROPYL-A-HYDROXYMETHYLENE)-3,5-DIOXOCYCLOHEXANECARBOXYLIC ACID ETHYL ESTER (SEC. 1224)

Present law

4-(Cyclopropyl-a-hydroxymethylene)-3,5-dioxo-cyclohexane-carboxylic acid ethyl ester (CAS No. 95266–40–3) (provided for in HTS

subheading 2918.90.50) is subject to an NTR duty rate of 4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4-(Cyclopropyl-ahydroxymethylene)-3,5-dioxo-cyclohexanecarboxylic acid ethyl ester

(CAS No. 95266–40–3) (provided for in HTS subheading

2918.90.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

4′′-EPIMETHYLAMINO-4′′-DEOXYAVERMECTIN B1A AND B1B BENOZATES

(SEC. 1225)

Present law

4′′-Epimethylamino-4′′-deoxyavermectin B1a and B1b benozates

(CAS No. 137512–74–4, 155569–91–8, or 179607–18–2) (provided

for in HTS subheading 2938.90.00) is subject to an NTR duty rate

of 3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4′′-Epimethylamino-4′′- deoxyavermectin B1a and B1b benozates (CAS No. 137512–74–4,

155569–91–8, or 179607–18–2) (provided for in HTS subheading

2938.90.00), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

FORMULATIONS CONTAINING 2-[4-[(5-CHLORO-3-FLUORO-2-PYRIDINYL)

OXY]-PHENOXY]-2-PROPYNYL ESTER (SEC. 1226)

Present law

Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-pyridinyl)oxy]-phenoxy]-

2-propynyl ester (CAS No. 105512–06–9) (provided for in subheading 3808.30.15) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for propanoic acid, 2-[4-[(5-chloro3-fluoro-2-pyridinyl)oxy]-phenoxy]-2-propynyl ester (CAS No.

49

105512–06–9) (provided for in HTS subheading 3808.30.15), with a

duty reduction to 3% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

MIXTURES OF 2-(2-CHLOROETHOXY)-N-[[4-METHOXY-6-METHYL-1,3,5-

TRIAZIN-2-YL)-AMINO]CARBONYLBENZENESULFONAMIDE] AND 3,6-

DICHLORO-2-METHOXYBENZOIC ACID (SEC. 1227)

Present law

Mixtures of 2-(2-chloroethoxy)-N-[[4-methoxy-6-methyl-1,3,5-

triazin-2-yl)amino] carbonylbenzene-sul-fonamide] (CAS No. 82097–

50–5) and 3,6-dichloro-2-methoxybenzoic acid (CAS No. 1918–00–9)

with application adjuvants (provided for in HTS subheading

3808.30.15) are subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of 2-(2-chloroethoxy)-

N-[[4-methoxy-6-methyl-1,3,5-triazin-2-yl)amino] carbonylbenzenesul-fonamide] (CAS No. 82097–50–5) and 3,6-dichloro-2-

methoxybenzoic acid (CAS No. 1918–00–9) with application adjuvants (provided for in HTS subheading 3808.30.15), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

(E,E)-a-(MEXTHOXYIMINO)-2-[[[[1-[3-(TRIFLUOROMETHYL)PHENYL] ETHYLIDENE]AMINO]OXY]METHYL] BENZENEACETATE ACID, METHYL ESTER

(SEC. 1228)

Present law

(E,E)-a-(mexthoxyimino)-2-[[[[1-[3-(trifluoromethyl)phenyl]ethylidene]oxy]methyl] benzeneacetate (CAS No. 141517–21–7) (provided for in HTS subheading 2929.90.20) is subject to an NTR duty

rate of 10.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for (E,E)-a-(mexthoxylmino)-2-

[[[[I-[3-(trifluoromethyl)phenyl]ethylidene]oxy] methyl]benzene-acetate (CAS No. 141517–21–7) (provided for in HTS subheading

2929.90.20), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

50

FORMULATIONS CONTAINING SULFUR (SEC. 1229)

Present law

Mixtures of sulfur (80% by weight) and application adjuvants

(CAS No. 7704–34–9) (provided for in subheading 3808.20.50) are

subject to an NTR duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by a new heading for mixtures of sulfur (80% by weight) and

application adjuvants (CAS No. 7704–34–9) (provided for in subheading 3808.20.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

MIXTURES OF 3-(6-METHOXY-4-METHYL-1,3,5-TRIAZIN-2-YL)-1-[2-(2-

CHLOROETHOXY)-PHENYLSULFONYL]-UREA (SEC. 1230)

Present law

Mixtures of 3-(6-methoxy-4-methyl-1,3,5-triazin-2-yl)-1-[2-(2-

chloro-ethoxy)-phenylsulfonyl]-urea (CAS No. 82097–50–5), (provided for in HTS subheading 3808.30.15) are subject to an NTR

duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of 3-(6-methoxy-4-

methyl- 1,3,5-triazin-2-yl)-1-[2-(2-chloro-ethoxy)-phenylsulfonyl]-

urea (CAS No. 82097–50–5) (provided for in HTS subheading

3808.30.15), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

MIXTURES OF 4-CYCLOPROPYL-6-METHYL-N-PHENYL-2-PYRIMIDINAMINE4-(2,2-DIFLUORO-1,3-BENZODIOXOL-4-YL)-1H-PYRROLE-3-CARBONITRILE

(SEC. 1231)

Present law

Mixtures of 4-Cyclopropyl-6-methyl-N-phenyl-2-pyrimidinamine4-(2,2-difluoro-1,3-benzodioxol-4-yl)-1H-pyrrole-3-carbonitrile (CAS

No. 131341–86–1) (provided for in HTS subheading 3808.20.15) and

application adjuvants are subject to an NTR duty rate of 6.5% ad

valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of 4-Cyclopropyl-6-

methyl-N-phenyl-2- pyrimidinamine-4-(2,2-difluoro-1,3-benzodioxol4-yl)-1H-pyrrole-3-carbonitrile (CAS No. 131341–86–1) (provided for

51

in HTS subheading 3808.20.15) and application adjuvants, as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

(R)-2-[2,6-DIMETHYLPHENYL)-METHOXYACETYLAMINO]PROPIONIC ACID,

METHYL ESTER AND (S)-2-[2,6-DIMETHYLPHENYL) METHOOXYACETYLAMINO]PROPIONIC ACID, METHYL ESTER (SEC. 1232)

Present law

(R)-2-[2,6-Dimethylphenyl)-methoxyacetyl-amino]-propionic, acid

methyl ester and (S)-2-[2,6-Dimethylphenyl-methoxyacetylamino]-

propionic acid, methyl ester (CAS No. 69516–34–3) (both of the

foregoing provided for in HTS subheading 2924.29.47) is subject to

an NTR duty rate of 9.1% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for (R)-2-[2,6-Dimethylphenyl)-

methoxyacetyl-amino]-propionic, acid methyl ester and (S)-2[2,6-

Dimethylphenyl-methoxyacetylamino] propionic acid, methyl ester

(CAS No. 69516–34–3) (both of the foregoing provided for in HTS

subheading 2924.29.47), as duty free until December 31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

MIXTURES OF BENZOTHIALDIAZOLE-7-CARBOTHIOIC ACID, S-METHYL

ESTER (SEC. 1233)

Present law

Mixtures of benzothialdiazole-7-carbothioic acid, S-methyl ester

(CAS No. 135158–54–2) and application adjuvants (provided for in

HTS subheading 3808.20.15) are subject to an NTR duty rate of

6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of benzothialdiazole7-carbothioic acid, S-methyl ester (CAS No. 135158–54–2) and application adjuvants (provided for in HTS subheading 3808.20.15),

as duty free until December 31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

52

BENZOTHIALDIAZOLE-7-CARBOTHIOIC ACID, S-METHYL ESTER (SEC. 1234)

Present law

Benzothialdiazole-7-carbothioic acid, S-methyl ester (CAS No.

135158–54–2) (provided for in HTS subheading 2934.90.12) is subject to an NTR duty rate of 8.2% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Benzothialdiazole-7-carbothioic

acid, S-methyl ester (CAS No. 135158–54–2) (provided for in HTS

subheading 2934.90.12), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

O-(4-BROMO-2-CHLOROPHENYL)-O-ETHYL-S-PROPYL PHOSPHOROTHIOATE

(SEC. 1235)

Present law

O-(4-Bromo-2-chlorophenyl)-O-ethyl-S-propyl phosphorothioate

(CAS No.41198–08–7) (provided for in HTS subheading 2930.90.10)

is subject to an NTR duty rate of 8.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for O-(4-Bromo-2-chlorophenyl)-Oethyl-S-propyl phosphorothioate (CAS No. 41198–08–7) (provided

for in HTS subheading 293 0.90.10), as duty free until December

31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

1[[2-(2,4-DICHLOROPHENYL)-4-PROPYL-1,3-DIOXOLAN-2-YL] METHYLI-1H1,2,4-TRIAZOLE (SEC. 1236)

Present law

1-[[2-(2,4-dichlorophenyl)-4-propyl-1,3-dioxolan-2-yl]methyl]-lH1,2,4-triazole (CAS No. 60207–90–1) (provided for in HTS subheading 2934.90.12) is subject to an NTR duty rate of 8.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 1-[[2-(2,4-dichlorophenyl)-4-

propyl -1,3-dioxolan-2-yl]methyl]-1H-1,2,4-triazole (CAS No. 60207–

90–1) (provided for in HTS subheading 2934.90.12), as duty free

until December 31, 2003.

53

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

TETRAHYDRO-3-METHYL-N-NITRO-5[[2-PHENYLTHIO)5-THIAZOLYL]-4H-1,3,5-

OXADIAZIN-4-IMINE (SEC. 1237)

Present law

Tetrahydro-3-methyl-N-nitro-5[[2-phenylthio)-5-thiazolyl]-4H1,3,5-oxadiazin-4-imine (CAS No. 19243–9–46–6) (provided for in

HTS subheading 2934.10.10) is subject to an NTR duty rate of 9.3%

ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for tetrahydro-3-methyl-N-nitro-5[

[2-phenylthio)-5-thiazolyl] 4H-1,3,5-oxadiazin-4-imine (CAS No.

192439–46–6) (provided for in HTS subheading 2934.10.10), with a

duty reduction to 4.3% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

1-(4-METHOXY-6-METHYLTRIAZIN-2-YL)-3-[2-(3,3,3-TRIFLUOROPROPYL)-

PHENYLSULFONYL]-UREA (SEC. 1238)

Present law

1-(4-Methoxy-6-methyltriazin-2-yl)-3-[2-(3,3,3-trifluoropropyl)-

phenylsulfonyl]-urea (CAS No. 94125–34–5) (provided for in HTS

subheading 2935.00.75) is subject to an NTR duty rate of 6.5%, ad

valorem.

Explanation of provision

This provision would amend subchapter IIof chapter 99 of the

HTS by inserting a new heading for 1-(4-Methoxy-6-methyltriazin2-yl)-3-[2-(3,3,3-trifluoropropyl)-phenylsulfonyl]-urea (CAS No.

94125–34–5) (provided for in HTS subheading 2935.00.75), as duty

free until December 3 1, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

4,5-DIHYDRO-6-METH-YL-4-[(3-PYRIDINYLMETHYLENE) AMINO] 1,2,4-

TRIAZIN-3(2H)-ONE (SEC. 1239)

Present law

4,5-dihydro-6-meth-yl-4-[(3-pyridinylmeth-ylene)amino]1,2,4-

triazin-3(2H)-on e(CAS No. 123312–89–0) (provided for in HTS subVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00053 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
54

heading 2933.69.60) is subject to an NTR duty rate of 3.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4,5-dihydro-6-meth-yl-4-[(3-

pyridinylmeth-ylene)amino]1,2,4-triazin-3(2H)-one (CAS No.

123312–89–0) (provided for in HTS subheading 2933.69.60), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

4-(2,2-DIFLUORO-1,3-BENZODIOXOL-4-YL)-lH-PYRROLE-3-CARBONITRILE

(SEC. 1240)

Present law

4-(2,2-Difluoro-1,3-benzodioxol-4-yl)-IH-pyrrole-3-carbonitrile

(CAS No. 131341–86–1) (provided for in HTS subheading

2934.90.12) is subject to an NTR duty rate of 8.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4-(2,2-Difluoro-1, 3-

benzodioxol-4-yl)-1H-pyrrole-3-carbonitrile (CAS No. 131341–86–1)

(provided for in HTS subheading 2934.90.12), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

MIXTURES OF 2-(((((4,6-DIMETHOXYPYRIMIDIN-2- YL)AMINO)-CARBONYL)

SULFONYL)-N,N-DIMETHYL-3-PYRIDINECARBOXAMIDE AND APPLICATION ADJUVANTS (SEC. 1241)

Present law

Mixtures of 2-(((((4,6-dimethoxypyrimidin-2-yl)amino)-car-bonyl)

sulfonyl)-N,N-dimethyl-3 pyridinecarboxamide and application adjuvants (CAS No. 111991–09–4) (provided for in HTS subheading

3808.30.15) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Mixtures of 2-(((((4,6-

dimethoxypyrimidin-2-yl)amino)-car-bonyl)sulfonyl)-N,N-dimethyl-3

pyridinecarboxamide and application adjuvants (CAS No. 111991–

09–4) (provided for in HTS subheading 3808.30.15), as duty free

until December 31, 2003.

55

Reason for change

This provision would enable U.S. companies to reduce costs of

manufacturing the herbicide in the U.S. and make the final product more affordable to U.S. farmers without jeopardizing any domestic manufacturer.

MONOCHROME GLASS ENVELOPES (SEC. 1242)

Present law

Monochrome glass envelopes (provided for in HTS subheading

7011.20.40) are subject to an NTR duty rate of 5.2% ad valorem.

Explanation of provision

This provision would amend subchapter 11 of chapter 99 of the

HTS by inserting a new heading for monochrome glass envelopes

(provided for in HTS subheading 7011.20.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

CERAMIC COATER (SEC. 1243)

Present law

Ceramic coater for laying down and drying ceramic (as provided

for in HTS subheading 8479.89.97) is subject to NTR duty rate of

2.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the

HTS by inserting a new heading for ceramic coaters used for laying

down and drying ceramic (provided for in HTS subheading

8479.89.97), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

PRO-JET BLACK 263 STAGE (SEC. 1244)

Present law

5-[4-(7-Amino-1-hydroxy-3-sulfonaphthalen-2-ylazo)-2,5-bis(2-

hydroxyethoxy)-phenylazo]isophthalic acid, lithium salt (provided

for in HTS subheading 3204.14.30) is subject to an NTR duty rate

of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 5-[4-(7-Amino-1-hydroxy-3-

sulfonaphthalen-2-ylazo)-2,5-bis(2-hydroxyethoxy)-

phenylazo]isophthalic acid, lithium salt (provided for in HTS subheading 3204.14.30), as duty-free until December 31, 2003.

56

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PRO-JET FAST BLACK 286 PASTE (SEC. 1245)

Present law

1,3-Benzenedicarboxylic acid, 5-[[4-[(7-amino-1-hydroxy-3-sulfo-2-

naphthalenyl) azo-6-sulfo-l-naphthalenyl)azo]-, sodium salt (CAS

No. 201932–24–3) (provided for in HTS subheading 3204.14.30) is

subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 1,3-Benzenedicarboxylic acid,

5-[[4-[(7-amino-1-hydroxy-3-sulfo-2-naphthalenyl) azo-6-sulfo-1-

naphthalenyl)azo]-, sodium salt (CAS No. 201932–24–3) (provided

for in HTS subheading 3204.14.30), as duty-free until December 31,

2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

BROMINE-CONTAINING COMPOUNDS (SEC. 1246)

Present law

Bromine-containing compounds are classifiable under HTS subheadings 2904.90.50 and 2903.69.70 and are subject to an NTR

duty rate of 5.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting new subheadings for:

2-Bromoethanesulfonic acid, sodium salt (CAS No. 4263–52–

9) (provided for in HTS subheading 2904.90.50) as duty free

until December 31, 2003,

4,4′-Dibromobiphenyl (CAS No. 92–86–4) (provided for in

HTS subheading 2903.69.70) as duty free until December 31,

2003,

4-Bromotoluene (CAS No. 106–38–7) (provided for in HTS

subheading 2903.69.70), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

57

PYRIDINEDICARBOXYLIC ACID (SEC. 1247)

Present law

Pyridinedicarboxylic acid is classifiable under HTS subheadings

2933.90.79, 2933.90.24 and 2921.49.45 and is subject to an NTR

duty rate of 8.6% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting new subheadings for:

1,4-Dihydro-2,6-dimethyl-1,4-diphenyl-3,5-pyridinedicarboxylic acid, dimethyl ester (CAS No. 83300–85–0) (provided for

in HTS subheading 2933.90.79) as duty free until December

31, 2003;

1-[2-[2-Chloro-3-[(1,3-dihydro-1,3,3-trimethyl-2H-indol-2-

ylidene) ethylidene]-1-cyclopenten-1-yl]ethenyl]-1,3,3-trimethyl3H-indolium salt with trifluoromethanesulfonic acid (1:1) (CAS

No. 128433–68–1) (provided for in HTS subheading

2933.90.24), as duty free until December 31, 2003;

N-[4-[5-[4-(Dimethylamino)-phenyl]-1,5-diphenyl-2,4-

pentadienylidene]-2,5-cyclohexadien-1-ylidene]-N-methylmethanaminium salt with trifluoromethane-sulfonic acid (1:1) (CAS

No. 100237–71–6) (provided for in HTS subheading

2921.49.45), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CERTAIN SEMICONDUCTOR MOLD COMPOUNDS (SEC. 1248)

Present law

Thermosetting epoxide molding compounds of a kind suitable for

use in the manufacture of semiconductor devices, via transfer molding processes, containing 70 percent or more of silica, by weight,

and having less than 75 parts per million of combined water-extractable content of chloride, bromide, potassium and sodium are

classifiable under HTS subheading 3907.30.00 and are subject to

an NTR duty rate of 6.1% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Thermosetting epoxide molding compounds of a kind suitable for use in the manufacture of

semiconductor devices, via transfer molding processes, containing

70 percent or more of silica, by weight, and having less than 75

parts per million of combined water-extractable content of chloride,

bromide, potassium and sodium (provided for in HTS subheading

3907.30.00), and setting it at a duty rate of 3.5% until December

31, 2003.

58

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

SOLVENT BLUE 67 (SEC. 1249)

Present law

Solvent blue 67 is classifiable under HTS subheading 3204.19.11

and is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Solvent blue 67 (CAS No.

81457–65–0) (provided for in HTS subheading 3204.19.11), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PIGMENT BLUE 60 (SEC. 1250)

Present law

Pigment blue 60 is classifiable under HTS subheading 3204.17.90

and is subject to an NTR duty rate of 10.6% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Pigment blue 60 (CAS No. 81–

77–6) (provided for in HTS subheading 3204.17.90), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

MENTHYL ANTHRANILATE (SEC. 1251)

Present law

Menthyl anthranilate is classifiable under HTS subheading

2922.49.27 and is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for menthyl anthranilate (CAS

No. 134–09–08) (provided for in HTS subheading 2922.49.27), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product indusVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00058 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
59

tries more competitive without jeopardizing any domestic manufacturer.

4-BROMO-2-FLUOROACETANILIDE (SEC. 1252)

Present law

4-Bromo-2-fluoroacetanilide is classifiable under HTS subheading

2924.21.50 and is subject to an NTR duty rate of 7.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4-Bromo-2-fluoroacetanilide

(CAS No. 326–66–9) (provided for in HTS subheading 2924.21.50),

as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

PROPIOPHENONE (SEC. 1253)

Present law

Propiophenone is classifiable under HTS subheading 2914.39.90

and is subject to an NTR duty rate of 7.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for propiophenone (CAS No. 93–

55–0) (provided for in HTS subheading 2914.39.90), as duty free

until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

m-CHLOROBENZALDEHYDE (SEC. 1254)

Present law

m-Chlorobenzaldehyde is classifiable under HTS subheading

2913.00.40 and is subject to an NTR duty rate of 9.8% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for m-Chlorobenzaldehyde (CAS

No. 587–04–2) (provided for in sub-heading 2913.00.40), as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

60

CERAMIC KNIVES (SEC. 1255)

Present law

Ceramic knives are classifiable under HTS subheading

6911.10.80 or 6912.00.48 and is subject to an NTR duty rate of

22.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for knives having ceramic blades,

such blades containing over 90% zirconia by weight (provided for

in sub-heading 6911.10.80 or 6912.00.48), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

STAINLESS STEEL RAILCAR BODY SHELLS (SEC. 1256)

Present law

Stainless steel railcar body shells are classifiable under HTS subheading 8607.99.10 and are subject to an NTR duty rate of 2.8%

ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for railway car bodyshells of stainless steel, the foregoing which are designed for gallery type railway

cars each having an aggregate capacity of 138 passengers on two

enclosed levels (provided for in HTS subheading 8607.99.10), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

STAINLESS STEEL RAILCAR BODY SHELLS OF 148-PASSENGER CAPACITY

(SEC. 1257)

Present law

Stainless steel railcar body shells of 100-passenger capacity are

classifiable under HTS subheading 8607.99. 10 and are subject to

an NTR duty rate of 2.8% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for railway car body shells of

stainless steel, the foregoing which are designed for use in gallery

type cab control railway cars each having an aggregate capacity of

148 passengers on two enclosed levels (provided for in HTS subheading 8607.99.10), as duty free until December 31, 2003.

61

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

PENDIMETHALIN (SEC. 1258)

Present law

N-(Ethylpropyl)-3,4-dimethyl-2,6-dinitroaniline (Pendimethalin)

is classifiable under HTS subheading 2921.49.50 and is subject to

an NTR duty rate of 10.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for N-(Ethylpropyl)-3,4-dimethyl2,6-dinitroaniline (Pendimethalin) (CAS No. 40487÷÷–42–1) (provided for in HTS subheading 2921.49.50), and setting it at a duty

rate of 1. 1% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

3,5-DIBROMO-4-HYDROXYBENZONITRIL ESTER AND INERTS (SEC. 1259)

Present law

Mixtures of octanoate and heptanoate esters of bromoxynil (3,5-

Dibromo-4-hydroxybenzonitrile) with application adjuvants is classifiable under HTS subheading 3808.30.15 and is subject to an

NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for mixtures of octanoate and

heptanoate esters of bromoxynil (3,5-Dibromo-4-hydroxybenzonitrile) (CAS Nos. 1689–99–2 and 56634–95–8) with application adjuvants (provided for in HTS subheading 3808.30.15), as

duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

3,5-DIBROMO-4-HYDROXYBENZONITRIL (SEC. 1260)

Present law

Bromoxynil (3,5-dibromo-4-hydroxybenzonitrile) octanoic acid

ester is classifiable under HTS subheading 2926.90.25 and is subject to an NTR duty rate of 8.6% ad valorem.

62

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Bromoxynil (3,5-dibromo-4-

hydroxybenzonitrile), octanoic acid ester (CAS No. 1689–99–2) (provided for in HTS subheading 2926.90.25) and set it at a duty rate

of 4.2% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

ISOXAFLUTOLE (SEC. 1261)

Present law

4-(2-Methanesulfonyl-4-trifluoromethylbenzoyl)-5-

cyclopropylisoxazole is classifiable under HTS subheading

2934.90.15 and is subject to an NTR duty rate of 8.6% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 4-(2-Methanesulfonyl-4-

trifluoromethylbenzoyl)-5-cyclopropylisoxazole (CAS No. 141112–

29–0) (provided for in HTS subheading 2934.90.15) and set it at a

duty rate of 1.0% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

CYCLANILIDE TECHNICAL (SEC. 1262)

Present law

1-(2,4-Dichlorophenylaminocarbonyl)-cyclopropanecarboxylic acid

is classifiable under HTS subheading 2924.29.47 and is subject to

an NTR duty rate of 8.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for 1-(2,4-Dichlorophenylaminocarbonyl)-cyclopropanecarboxylic acid. (CAS No. 113136–77–

9) (provided for in HTS subheading 2924.29.47) and setting it at a

duty rate of 5.7% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

63

R115777 (SEC. 1263)

Present law

(R)-6-[Amino(4-chlorophenyl)(1-meth-yl-1H-imidazol-5-yl)methyl]-

4-(3-chlorophenyl)-lmethyl-2(1H)-quinoline is classifiable under

HTS subheading 2933.40.26 and is subject to an NTR duty rate of

6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for (R)-6-[Amino(4-

chlorophenyl)(1-meth-yl-1H-imidazol-5-yl)methyl]-4-(3-chlorop

henyl)-lmethyl-2(1H)-quinoline (CAS No. 192185–72–1) (provided

for in HTS subheading 2933.40.26) as duty free until December 31,

2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

BONDING MACHINES (SEC. 1264)

Present law

Bonding machines are classifiable under HTS subheading

8479.89.97 and are subject to an NTR duty rate of 2.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for bonding machines for use in

the manufacture of digital versatile discs (DVDs) (provided for in

HTS subheading 8479.89.97) and setting it at a duty rate of 1.7%

until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

GLYOXYLIC ACID (SEC. 1265)

Present law

Glyoxylic acid is classifiable under HTS subheading 2918.30.90

and is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision amends subchapter II of chapter 99 of the HTS by

inserting a new heading for glyoxylic acid (CAS No. 298–12–4) (provided for in HTS subheading 2918.30.90), as duty free until December 31, 2003.

64

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

FLUORIDE COMPOUNDS (SEC. 1266)

Present law

Ammonium bifluoride is classifiable under HTS subheadings

2826.11.10 and 2826.19.00 and is subject to an NTR duty rate of

3.1% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting a new heading for Ammonium bifluoride, as duty

free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to reduce costs, making the chemicals and downstream product industries more competitive without jeopardizing any domestic manufacturer.

COBALT BORON (SEC. 1267)

Present law

Cobalt boron is classifiable under HTS subheading 8105.10.30

and is subject to an NTR duty rate of 4.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of the

HTS by inserting new heading for Cobalt boron (provided for in

HTS subheading 8105.10.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN

NUCLEAR FACILITIES (SEC. 1268)

Present law

Watertube boilers with a steam production exceeding 45 t per

hour, for use in nuclear facilities (provided for in sub-heading

8402.11.00) are subject to an NTR duty rate of 5.2% ad valorem.

Explanation of provision

The provision amends subchapter II of chapter 99 of the HTS by

inserting a new subheading for watertube boilers with a steam production exceeding 45 t per hour, for use in nuclear facilities (provided for in HTS subheading 8402.11.00), with a duty reduction to

4.9% ad valorem until December 31, 2003.

The duty reduction applies only to those binding contracts that

have been entered into on or before the date of enactment of this

65

Act and does not apply to any contracts entered into after such

date.

Reason for change

This duty reduction will reduce costs for nuclear power facilities

operators. The Committee expects that these savings will be passed

directly and entirely to the consumer.

FIPRONAL TECHNICAL (SEC. 1269)

Present law

Fipronal Technical (CAS No. 120068–37–3) (provided for in HTS

subheading 2933.19.23) is subject to an NTR duty rate of 9.3% ad

valorem.

Explanation of provision

This provision amends subchapter II of chapter 99 of the HTS by

inserting in a new heading for Fipronal Technical (CAS No.

120068–37–3) (provided for in HTS subheading 2933.19.23), with a

duty reduction to 5.6% ad valorem until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to reduce costs, making the downstream products more

competitive without jeopardizing any domestic manufacturer.

Chapter 2—Existing Duty Suspensions and Reductions

SEC. 1301. EXTENSION OF CERTAIN EXISTING DUTY SUSPENSIONS AND REDUCTIONS

(a) Existing duty suspensions

Present law

(1) The temporary duty suspension for DEMT (provided for in

HTS heading 9902.32.12) would expire December 31, 2001, after

which time the product would be subject to an NTR duty rate of

11.4% ad valorem.

(2) The temporary suspension of duty on a certain polymer (provided for, in HTS heading 9902.3 9.07) is to expire December 31,

2001, after which time the product would be subject to an NTR

duty rate of 6.5% ad valorem.

(3) The temporary suspension of duty on 4-hexylresorcinol (provided for in HTS heading 9902.29.07) is to expire December 31,

2001, after which time the product would be subject to an NTR

duty rate of 5.5% ad valorem.

(4) The temporary suspension of duty on certain sensitizing dyes

(provided for in HTS heading 9902.29.37) is to expire December 31,

2001, after which time the product would be subject to an NTR

duty rate of 6.5% ad valorem.

(5) The temporary suspension of duty on certain organic pigments and dyes (provided for in HTS heading 9902.32.07) is to expire December 31, 2001, after which time the product would be

subject to an NTR duty rate of 5.9% ad valorem.

(6) The temporary suspension of duty on certain semi-manufactured forms of gold (provided for in HTS heading 9902.71.08) is to

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expire December 31, 2001, after which time the product would be

subject to an NTR duty rate of 4.1 % ad valorem.

(7) The temporary suspension on DPXE 6578 (provided for in

HTS heading 9902.33.59) expires on December 31, 2001, after

which time the product would be subject to an NTR duty rate of

9.3% ad valorem (as provided for in HTS subheading 2933.59.70).

(8) The temporary suspension on rimsulfuron (provided for in

HTS heading 9902.33.60) expires on December 31, 2000, after

which time the product would be subject to an NTR duty rate of

9.3% ad valorem (as provided for in HTS subheading 2935.00.75).

(9) The temporary suspension on rolled glass (provided for in

HTS heading 9902.70.03) expires on December 31, 2001, after

which time the product would be subject to an NTR duty of 1.3%

ad valorem.

(10) The temporary suspension on ferroboron (provided for in

HTS heading 9902.72.02) expires on December 31, 2001, after

which time the product would be subject to an NTR duty rate of

5% ad valorem.

(11) The temporary duty suspension on synthetic quartz and synthetic fused silica (provided for in HTS heading 9902.70.06) expires

on December 31, 2001 after which time the product would be subject to an NTR duty of 4.9% ad valorem.

(12) The temporary duty suspension on diiodomethyl-ptolylsulfone (provided for in HTS heading 9902.32.90) expires on

December 31, 2001, after which time the product would be subject

to an NTR duty rate of 7.7% ad valorem.

(13) The temporary duty suspension on b-bromo-b-nitrostyrene

(provided for in HTS heading 9902.32.92) expires on December 31,

2001, after which time the product would be subject to an NTR

duty rate of 7.6% ad valorem.

(14) The temporary duty suspension on Yttrium (provided for in

HTS heading 9902.32.06) expires on December 31, 2000, after

which time the product would be subject to an NTR duty rate of

6.5% ad valorem.

(15) The temporary duty suspension on methyl thioglycolate (provided for in HTS heading 9902.32.55) expires on December 31,

2001, after which time the product would be subject to an NTR

duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend the above HTS headings to extend

those temporary duty suspensions until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use these

products to continue to keep costs down, which would continue to

make downstream product industries more competitive without

jeopardizing any domestic manufacturer.

(b) Existing duty reductions

Present law

Ethylene/tetra-fluoroethylene copolymer (ETFE) (provided for in

HTS heading 3904.69.50) is currently subject to an NTR duty rate

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of 6.5% ad valorem, and a duty reduction rate of 3.3% ad valorem

(provided for in HTS heading 9902.29.68) until December 31, 2001.

Explanation of provision

This provision would amend HTS heading 9902.29.68 by extending the duty reduction rate to December 31, 2003. The NTR rate

of duty is provided above to make importers aware that this product is classified under two separate HTS headings, and that all importers of the above product may avail themselves of the duty reduction rate.

Reason for change

This provision would enable U.S. chemical manufacturers to continue the reduced costs, keeping the chemicals and downstream

product industries more competitive without jeopardizing any domestic manufacturer.

(c) Other modifications

Present law

(1) There is a temporary duty suspension for methyl ester (provided for in HTS heading 9902.38.24).

(2) There is a temporary duty suspension on certain manufacturing equipment (provided for in HTS headings 9902.84.83,

9902.84.85, 9902.84.87, 9902.84.89, and 9902.84.91).

(3) There is a temporary duty reduction on carbamic acid (provided for in HTS heading 9902.33.61).

(4) There is a temporary duty reduction on DPX–E9260 (provided

for in HTS subheading 9902.33.63).

Explanation of provision

This provision would modify the existing duty suspensions and

reductions identified above, as follows:

(1) The temporary duty suspension on methyl ester would

be changed to a staged rate duty reduction and extended until

December 31, 2003.

(2) The temporary duty suspension on certain manufacturing equipment would be modified.

(3) The temporary duty reduction on carbamic acid would

be made a duty suspension and extended until December 31,

2003.

(4) The temporary duty reduction on DPX–E9260 would be

made a duty suspension and extended until December 31,

2003.

Reason for change

This provision would enable U.S. manufacturers that use

these products to reduce costs, making downstream products more

competitive without jeopardizing any domestic manufacturer.

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Subtitle B—Other Tariff Provisions

Chapter 1—Liquidation or Reliquidation of Certain Entries

CERTAIN TELEPHONE SYSTEMS (SEC. 1401)

Present law

Certain identified entries of telephone systems were liquidated

by U.S. Customs under an incorrect HTS number.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries in accordance with a final decision of the

U.S. Department of Commerce of May 7, 1990 (A580–803–001).

Reason for change

This provision authorizes U.S. Customs to liquidate or reliquidate these entries at the correct rate of duty.

COLOR TELEVISION RECEIVER ENTRIES (SEC. 1402)

Present law

Certain identified entries of color televisions were liquidated by

U.S. Customs under an incorrect HTS number.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified color television receiver entries.

Reason for change

This provision authorizes U.S. Customs to liquidate or reliquidate these entries at the correct rate of duty.

COPPER AND BRASS SHEET AND STRIP (SEC. 1403)

Present law

Certain identified entries of copper and brass sheet and strip entered during the period from October 18, 1986 to December 5, 1990

were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries of copper and brass sheet and strip entered.

Reason for change

This provision authorizes U.S. Customs to reliquidate these entries at the correct rate of duty.

ANTIFRICTION BEARINGS (SEC. 1404)

Present law

Certain identified entries of antifriction bearings entered during

the period from May 26, 1989 to April 12, 1990 were liquidated by

U.S. Customs.

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Explanation of provision

This provision would provide for the liquidation or reliquidation

of certain identified entries of antifriction bearings from May 26,

1989 to April 12, 1990.

Reason for change

This provision authorizes U.S. Customs to liquidate or reliquidate these entries at the correct rate of duty.

OTHER ANTIFRICTION BEARINGS (SEC. 1405)

Present law

Certain identified entries of antifriction bearings entered during

the period from April 4, 1990 to May 21, 1991 were liquidated by

U.S. Customs.

Explanation of provision

This provision would provide for the liquidation or reliquidation

of certain identified entries of antifriction bearings entered during

the period from April 4, 1990 to May 21, 1991.

Reason for change

This provision authorizes U.S. Customs to reliquidate these entries at the correct rate of duty.

PRINTING CARTRIDGES (SEC. 1406)

Present law

Certain identified entries of printing cartridges entered during

the period from April 18, 1997 to March 27, 1998 were liquidated

by the Customs Service.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries of printing cartridges.

Reason for change

This directs the U.S. Customs Service to liquidate or reliquidate

these entries at the correct duty rate.

LIQUIDATION OR RELIQUIDATION OF CERTAIN ENTRIES OF N,NDICYOLOHEXYLL-2-BENSOTHAZOLE-SULFENAMIDE (SEC. 1407)

Present law

Certain identified entries of N,N-dicyolohexyll-2-bensothazolesulfenamide entered during the period from February 1, 1995 to

November 26, 1996 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries of N,Ndicyolohexyll-2-bensothazolesulfenamide during the period from February 1, 1995 to November

26, 1996 as free from duty.

70

Reason for change

This directs the U.S. Customs Service to liquidate or reliquidate

these entries at the correct duty rate.

CERTAIN ENTRIES OF TOMATO SAUCE PREPARATION (SEC. 1408)

Present law

Certain identified entries of tomato sauce preparation entered

during the period from July 14, 1989 to February 9, 1995 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries of tomato sauce preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or reliquidate

these entries at the correct rate of duty.

CERTAIN TOMATO SAUCE PREPARATION ENTERED IN 1990 THROUGH 1992

(SEC. 1409)

Present law

Certain identified entries of tomato sauce preparation entered

during the period from November 28, 1990 to December 12, 1992

were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries of tomato sauce preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or reliquidate

these entries at the correct rate of duty.

CERTAIN TOMATO SAUCE PREPARATION ENTERED IN 1989 THROUGH 1995

(SEC. 1410)

Present law

Certain identified entries of tomato sauce preparation entered

during the period from October 11, 1989 to April 28, 1995 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries of tomato sauce preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or reliquidate

these entries at the correct rate of duty.

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CERTAIN TOMATO SAUCE PREPARATION ENTERED IN 1989 AND 1990. (SEC.

1411)

Present law

Certain identified entries of tomato sauce preparation entered

during the period from July 27, 1989 to January 12, 1990 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or reliquidation of certain identified entries of tomato sauce preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or reliquidate

these entries at the correct rate of duty.

NEOPRENE SYNCHRONOUS TIMING BELTS (SEC. 1412)

Present law

On March 3, 1990, entry number 469–0015023–9 was levied a

74.9% anti-dumping duty. The entry consisted of a shipment of neoprene synchronous timing belts.

Explanation of provision

Any amounts owed by the U.S. pursuant to the liquidation or reliquidation of the entry number 469–0015023–9, with interest accrued from the date of entry, shall be paid by the U.S. Customs

Service within 90 days after such liquidation or reliquidation.

Reason for change

During the period from February 1, 1989 until February 28,

1990, anti-dumping duties levied on neoprene synchronous timing

belts were reduced from 74.9% to 24%. Despite this reduction,

entry number 469–0015023–9 was still charged the full 74.9%. This

provision redresses this oversight and refunds sums equal to the

amount that was overcharged.

RELIQUIDATION OF DRAWBACK CLAIM NUMBER R74–10343996 (SEC. 1413)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section 1313(j))

allows exporters to claim drawback under certain circumstances.

Explanation of provision

This provision provides for the liquidation or reliquidation of the

identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed by

the U.S. Customs Service for administrative reasons, and should

have been liquidated as filed.

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RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS FILED IN 1996 (SEC.

1414)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section

13130(j)) allows exporters to claim drawback under certain circumstances.

Explanation of provision

This provision provides for the liquidation or reliquidation of the

identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed by

the U.S. Customs Service for administrative reasons, and should

have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS RELATING TO EXPORTS

OF MERCHANDISE FROM MAY 1993 TO JULY 1993 (SEC. 1415)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section 1313(j))

allows exporters to claim drawback under certain circumstances.

Explanation of provision

This provision provides for the liquidation or reliquidation of the

identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed by

the U.S. Customs Service for administrative reasons, and should

have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS RELATING TO EXPORTS

CLAIMS FILED BETWEEN APRIL 1994 AND JULY 1994 (SEC. 1416)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section 1313(j))

allows exporters to claim drawback under certain circumstances.

Explanation of provision

This provision provides for the liquidation or reliquidation of the

identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed by

the U.S. Customs Service for administrative reasons, and should

have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS RELATING TO JUICES

(SEC. 1417)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section 1313(j))

allows exporters to claim drawback under certain circumstances.

73

Explanation of provision

This provision provides for the liquidation or reliquidation of the

identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed by

the U.S. Customs Service for administrative reasons, and should

have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS FILED IN 1997 (SEC.

1418)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section 1313(j)

allows exporters to claim drawback under certain circumstances.

Explanation of provision

This provision provides for the liquidation or reliquidation of the

identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed by

the U.S. Customs Service for administrative reasons, and should

have been liquidated as filed.

RELIQUIDATION OF DRAWBACK CLAIM NUMBER WJU1111031–7 (SEC. 1419)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section 1313(j))

allows exporters to claim drawback under certain circumstances.

Explanation of provision

This provision provides for the liquidation or reliquidation of the

identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed by

the U.S. Customs Service for administrative reasons, and should

have been liquidated as filed.

LIQUIDATION OR RELIQUIDATION OF CERTAIN ENTRIES OF ATHLETIC

SHOES (SEC. 1420)

Present law

Certain identified entries of athletic shoes entered during the period from August 1, 1993 to June 1, 1998 were liquidated by the

U.S. Customs Service.

Explanation of provision

This provison provides for the liquidation or reliquidation of certain identified entries of defective athletic shoes which were recycled rather than destroyed.

Reason for change

These drawback claims were denied due to the fact that the

product was recycled rather than destroyed. It is the view of the

74

Committee that the importer should not be penalized for having

taken actions that were both consistent with the intent of the

drawback statute and were environmentally responsible.

DESIGNATION OF MOTOR FUELS AND JET FUELS AS COMMERCIALLY

INTERCHANGEABLE (SEC. 1421)

Present law

Drawback is available under Section 313 of the Tariff Act of

1930.

Explanation of provision

This provision would clarify the treatment of jet fuels for purposes of drawback under Section 313 of the Tariff Act of 1930.

Reason for change

To clarify the treatment of jet fuels under the drawback statute.

Chapter 2—Special Classification Relating to Product Development

and Testing

IMPORTING PROTOTYPES, (SECS. 1431–1435)

Present law

Under current law, prototypes imported into the United States

for product development testing and product evaluation purposes

are subject to the U.S. Customs Service duty upon their importation into the United States unless they qualify for duty-free treatment under special trade programs or unless entered under a temporary importation bond.

Explanation of provision

This provision would amend chapter 98, subchapter XVII of the

HTS by inserting a new heading 9817.85.01 for duty-free treatment

of prototypes imported exclusively for development, testing, product

evaluation, or quality control purposes.

Section 1432 contains findings that reflect an understanding that

there is significant use of prototypes in the United States for the

development and testing of products. However, these findings note

that the current assessment of Customs duties on imports of prototypes discourage development and testing in the United States.

There is a particular concern that duties are assessed on prototypes twice, once when they are imported and a second time as

part of the cost of the imported production merchandise.

Section 1433 amends the HTS to add a new provision, subheading 9817.85.01, to permit the duty-free importation of prototypes to be used exclusively for development, testing, product evaluation or quality control purposes. This section also adds a new

Note 6 to subchapter XVII of chapter 98 to define the term ‘‘prototypes.’’ This note provides that automobile racing for prize or purse

or commercial competition shall not be considered to be ‘‘development, testing, product evaluation, or quality control’’ for purposes

of clause (a)(i) of this Note. The purpose of this provision is to clarify that the term ‘‘prototype’’ does not include articles that are imported for use in an automobile race in which the importer may receive a prize or purse or other commercial remuneration. This limiVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00074 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
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tation would not apply where the prototype is used only for a test

or trial events, where no such prize or purse or other commercial

remuneration is awarded.

The new Note also limits the application of this provision as follows:

(i) Prototypes may be imported in limited noncommercial quantities in accordance with industry practice.

(ii) Except as provided by the Secretary of the Treasury, prototypes may not be sold after importation into the United States or

be incorporated into other products that are sold.

(iii) Articles subject to quantitative restrictions or antidumping

or countervailing duty orders may not be classified as prototypes.

Section 1434(a) authorizes the Secretary of the Treasury to promulgate regulations for the identification of prototypes at the time

of importation into the United States in accordance with the provisions of this chapter.

Section 1434(b) directs the Secretary of the Treasury to promulgate final regulations within ten months of the date of enactment

to authorize the sale of prototypes as waste, scrap or for recycling.

In promulgating these regulations, the Secretary must ensure that

all duties will be tendered for sales of prototypes, including prototypes and parts of prototypes incorporated into other products, as

scrap, waste or recycled materials at the rates of duty in effect for

such scrap, waste or recycled materials at the time of importation

of the prototype.

Section 1435 provides that the amendments to the HTS made by

this legislation apply to entries of prototypes classifiable under subheading 9817.85.01 of the HTS made on or after the date of enactment of these provisions; and to entries of prototypes classifiable

under subheading 9813.00.30 of the HTS with respect to which liquidation has not become final as of the date of enactment of this

Act.

Reason for change

This provision would allow prototypes, as defined under this Act,

to be imported free of duty with certain specified exceptions and restrictions, under new heading 9817.85.01 of the HTS.

This provision is needed because, notwithstanding that the prototypes are subject to duty when imported, U.S. Customs takes the

position that the price of the prototypes is included in the value of

production articles which are imported later, as part of the price

paid or payable for the production articles. The double assessment

of duties on prototypes discourages development and testing in the

United States. While there are tariff provisions and special programs, such as temporary importation under bond or drawback,

which might be used to avoid the double assessment of duties,

these programs have been found to be difficult to administer and

utilize. Given these concerns, the Committee intends that this new

tariff provision will result in the collection of duties on the value

of prototypes only once (through the inclusion of the value of the

prototypes in the value of any imported production articles); and

will be simple both to administer and to use.

This provision also authorizes the Secretary of the Treasury to

issue regulations authorizing the sale of prototypes as scrap, waste

or for recycling as an exception to the general rule that (except as

76

provided by the Secretary of the Treasury) prototypes may not be

sold after importation or incorporated into other products that are

sold. The Committee strongly seeks to encourage the environmentally responsible disposal of prototypes and therefore expects

the Secretary of the Treasury to issue regulations authorizing such

disposal to the fullest extent possible. The Committee understands

that the HTS currently provides that most types of waste or scrap

may be imported free of duty, including waste and scrap of aluminum, copper, glass, ferrous metal, nickel, paper and paperboard,

precious metals, tin, zinc, leather, wood, and rubber. Accordingly,

the Committee intends that the regulations promulgated by the

Treasury Department, unlike current programs, will impose minimal burdens with respect to imports of prototypes that might involve the sale of waste or scrap entitled to duty free entry. As well,

the Committee expects the Treasury Department to develop simplified procedures relating to the payment of any duties owed.

Chapter 3—Prohibition on Importation of Products Made With Dog

or Cat Fur

(SECS.1441–1443)

Present law

Current Federal law permits the import, export, and the domestic manufacture, sale, transportation, and introduction into interstate commerce, of products containing cat and dog fur.

Explanation of provision

This provision would prohibit the import, export, domestic manufacture, offer for sale, sale, transportation, or distribution of products made with dog or cat fur in the United States. The provision

would impose civil penalties of up to $10,000 for each knowing and

intentional violation of the ban, up to $5,000 for each grossly negligent violation, and up to $3,000 for each negligent violation. The

provision would, in addition, provide for the forfeiture of products

marketed in violation of the ban and potential debarment from engaging in commerce involving fur products. The provision would

also impose criminal penalties for violations of the ban. The provision authorizes the Secretary of the Treasury to offer, under certain circumstances, rewards of $500 for information concerning violations of the ban.

The provision reflects the Committee’s intent that use of debarment from importing, exporting, or otherwise engaging in commerce in fur products as a civil penalty would be limited to instances where either there was a criminal conviction or the Secretary found a pattern or practice of several violations that have

resulted in civil penalties being imposed for knowing and intentional or grossly negligent conduct in violation of the ban. As in all

enforcement actions, the U.S. Government would bear the burden

of proof and this legislation would not modify that burden. The provision reported by the Committee would, in addition, provide U.S.

purchasers of fur products with an affirmative defense if they can

demonstrate they exercised reasonable care in their purchase of the

items that were ultimately found to have violated the ban. In effect, the bill would make the affirmative defense contingent upon

the U.S. purchaser’s ability to show that they had exercised reasonVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00076 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
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able care and due diligence in selecting their suppliers and in their

purchase of fur products to ensure that such purchases would not

violate the ban.

The provision would require the Secretary to issue implementing

regulations within 270 days of enactment. It would also require the

Secretary to develop a plan for effective enforcement of the provision. The provision would require the Secretary, not later than 1

year after the enactment of this provision and annually thereafter,

to provide Congress with a report on the Sectretary’s enforcement

efforts, including action taken to train and equip Customs Service

staff to accurately identify dog and cat fur products.

This provision would require the U.S. Customs Service to develop

and publish periodically a list of parties who have been found

(through criminal and civil conviction) to have engaged intentionally, knowingly or with gross negligence in the trade in dog and

cat fur. This provision is intended to better inform U.S. entities engaged in the fur trade and assist them in their efforts at due diligence to ensure that the ban is not violated. Toward that same

end, the provision would also direct the U.S. Customs Service to

develop a program of certifying legitimate U.S. and foreign laboratories to which U.S. purchasers could obtain reliable assessments

of whether products they intend to purchase are made with dog or

cat fur. In addition, the provision would direct the Secretary of the

Treasury to investigate and report to Congress on any instances of

a pattern or practice of government support for trade in dog and

cat fur products. Finally, the provision would also close an exception to the Fur Products Labeling Act necessary to ensure that potential consumers are fully informed regarding the content of fur

products and to ensure the effective enforcement of the ban.

Reason for change

This provision responds to substantial evidence that products

made with dog and cat fur are being imported into and sold in the

United States and that these products are often deceptively labeled

to prevent consumers, as well as retailers and importers, from

ascertaining the true content of the fur contained in the products

they purchase in the United States. The available evidence suggests that producers of dog and cat fur products house, transport,

and slaughter these dogs and cats for their fur in inhumane ways.

This provision seeks to discourage these inhumane practices, and

the development of any domestic market for dog and cat fur products, by prohibiting importation and exportation, as well as the domestic manufacture and marketing, of dog and cat fur products.

The provision authorizes both civil and criminal penalties for violations of the law. Due to the difficulty the U.S. Customs Service has

experienced in enforcing similar provisions of the customs laws,

such as section 307 of the Tariff Act of 1930 relating to prison

labor, the provision adds certain additional enforcement tools to assist the Secretary of the Treasury in his or her enforcement efforts.

The provision also provides for continuing congressional oversight

and involvement in that enforcement effort by requiring the Secretary to prepare an initial enforcement plan and to report annually to Congress on his or her enforcement efforts.

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Chapter 4—Miscellaneous Provisions

ALTERNATIVE MID-POINT INTEREST ACCOUNTING METHODOLOGY FOR

UNDERPAYMENT OF DUTIES AND FEES (SEC. 1451)

Present law

Under current law, the discretionary authority for the Secretary

of the Treasury to prescribe alternative mid-point interest accounting methodology used by importers terminates on the date on

which the ‘‘Revised National Customs Automation Test Regarding

Reconciliation’’ of the Customs Service terminates, or on October 1,

2000, whichever occurs earlier.

Explanation of provision

This provision makes permanent the authority of the Secretary

of the Treasury to prescribe alternative mid-point interest accounting methodology used by importers.

Reason for change

This provision provides the Secretary of the Treasury and importers with certainty regarding accounting methodology relating

to mid-point interest.

EXCEPTION FROM MAKING REPORT OF ARRIVAL AND FORMAL ENTRY FOR

CERTAIN VESSELS (SEC. 1452)

Present law

U.S. Customs regulations applicable to section 434 of the Tariff

Act of 1930 (19 U.S.C. 1434) requires operators of American flag

ships carrying in-bond cargo between U.S. ports to report and enter

the vessels with U.S. Customs between domestic ports. In addition,

section 434 requires making formal entry for a vessel anchored at

Belle Isle Anchorage, Port of Detroit, Michigan, awaiting availability of cargo or for taking on a pilot or awaiting pilot services,

prior to proceeding to the Port of Toledo-Sandusky, Ohio.

Explanation of provision

This provision adds a seventh exception to the list of six existing

exceptions from making formal entry for a vessel transporting

bonded cargo, and for a vessel required to anchor at Belle Isle Anchorage, Port of Detroit, Michigan, while awaiting the availability

of cargo or for the purpose of taking on a pilot or awaiting pilot

services, prior to proceeding to the Port of Toledo-Sandusky, Ohio.

Reason for change

This provision would eliminate the burden of requiring a vessel

carrying bonded merchandise to make entry of the vessel between

domestic ports. The provision would also eliminate the burden of

a vessel making entry at Port of Detroit, Michigan and again at the

port of Toledo, Ohio, for a vessel anchored at Port of Detroit, Michigan, while awaiting the availability of cargo or for the purpose of

taking on a pilot or awaiting pilot services, prior to proceeding to

the Port of Toledo, Ohio.

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DESIGNATION OF SAN ANTONIO INTERNATIONAL AIRPORT FOR CUSTOMS

PROCESSING OF CERTAIN PRIVATE AIRCRAFT ARRIVING IN THE UNITED

STATES (SEC. 1453)

Present law

Private aircraft are not permitted to land at San Antonio International Airport, Texas. Such aircraft may land in Texas cities as

Beaumont, Brownsville, Corpus Christi, Del Rio, Eagle Pass, El

Paso, Houston, Laredo, McAllen, Presidio and Midland, which have

been designated as entry points for the U.S. Customs service processing of private aircraft 19 CFR subpart C, Part 122.24).

Explanation of provision

This provision would designate the San Antonio International

Airport in San Antonio, Texas, for a period of two years, as an airport at which private aircraft arriving in the United States from

a foreign area and having a final destination in the United States

may land for processing by the Customs Service in accordance with

section 122.24(b) of title 19, Code of Federal Regulations (19 C.F.R.

122.24(b)). This provision also requires the Commissioner of Customs to prepare and submit to Congress a report on the implementation of this section for 2001 and 2002.

Reason for change

San Antonio is a growing international business development

area, in large part due to increased trade with Mexico. Permitting

private aircrafts to land there as a point of entry to the United

States is vital to the continued success of the city’s economic

growth. At the same time, the Committee recognizes the need to

evaluate new points of entry, and, therefore, setting a 2-year limit

allows Customs to review the impact of this added designation.

INTERNATIONAL TRAVEL MERCHANDISE (ITM) (SEC. 1454)

Present law

Section 555 of the Tariff Act of 1930 (19 U.S.C. 1555) provides

for the storage of International Travel Merchandise (ITM) in a customs bonded warehouse (CBW). Industry practice has been to shuttle carts, containing merchandise subject to sale aboard an aircraft

outside the United States, between the plane and a U.S.-based

CBW for purposes of replenishment. Technically, the law requires

that merchandise arriving at a CBW be entered for warehouse and

then withdrawn as it leaves the CBW, which permits manipulation

of the merchandise within the CBW (replenishing depleted stock,

removing outdated or damaged stock, and replacing with new

goods), while providing assurance that bonded merchandise is fully

accounted to Customs.

Explanation of provision

This provision would amend section 555 of the Tariff Act of 1930

(19 U.S.C. 1555) by adding a new subsection to clarify existing law

relating to bonded warehouse storage of international travel merchandise (ITM). This provision would codify current practice where

only merchandise that is taken from the cart (in order to retire it

from stock) is entered and only merchandise that is used to replenVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00079 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
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ish the cart is withdrawn, while keeping in place safeguards for

Customs to ensure accountability of bonded merchandise.

Reason for change

A cart is usually shuttled to the CBW for replenishment of only

a small amount of stock. However, under current law, the contents

of the entire cart must be entered and then withdrawn, even

though only a small amount of merchandise is actually being added

to the cart. This process of entry and immediate withdrawal of a

cart’s residual stock must take place thousands of times a day

throughout the United States, producing reams of entry and withdrawal documents and creating paperwork that burdens the CBW

operator and impedes Customs’ ability to manage the process.

Industry practice has been to maintain a secure area immediately outside the CBW where stock is manipulated: only merchandise that is taken from the cart (in order to retire it from

stock) is entered and only merchandise that is used to replenish

the cart is withdrawn. This reduces the volume of entry and withdrawal documents substantially. This provision would permit this

savings, while keeping in place safeguards for Customs to ensure

accountability of bonded merchandise.

CHANGE IN RATE OF DUTY OF GOODS RETURNED TO THE UNITED STATES

BY TRAVELERS (SEC. 1455)

Present law

Currently, U.S. residents traveling abroad are entitled to $400

duty free allowance upon their return to the U.S. for purchases

made abroad. Purchases for personal and household use, accompanying the returning traveler in excess of the $400 duty free allowance, are subject to flat rate of duty of 10%, if the person claiming the benefit has not received the benefit within the past thirty

days. In addition, non-commercial importations from U.S. insular

possessions (American Samoa, Guam, or the U.S. Virgin Islands)

are subject to a 5% rate of duty.

Explanation of provision

This provision would amend subchapter XVI of chapter 98 of the

HTS to provide staged reductions of duty rates applicable to merchandise accompanying persons entering the United States, and

merchandise from American Samoa, Guam, or the Virgin Islands

of the United States. Specifically, the proposed legislation would

provide a staged reduction of the current 10% duty-rate applicable

to articles accompanying a person arriving in the United States.

The proposed staged reductions are as follows: 5% effective January 1, 2000, 4% effective January 1, 2001, and 3% effective January

1, 2002. The bill would also provide a staged reduction of the current 5% rate of duty for articles imported from American Samoa,

Guam, or the Virgin Islands of the United States. The proposed

staged reductions are as follows: 3% effective January 1, 2000, 2%

effective January 1, 2001, and 1.5% effective January 1, 2002.

Reason for change

Under the North American Free Trade Agreement and the Uruguay Round Agreements Act, tariffs on merchandise entering the

United States have undergone significant staged reductions or

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eliminations. As a result, the average rate for dutiable merchandise

imported into the United States is now well under 5%. However,

during this time, the rate of duty that Americans pay for goods

they bring back with them after traveling abroad remains

disproportionally high at 10%, and the rate of duty for goods from

American Samoa, Guam, and the Virgin Islands of the United

States has remained unchanged at 5%. These outdated rates have

not changed in 12 years, and do not give the American travelers

the benefit of U.S. trade negotiations and duty reductions. This

provision would bring the duty rate of merchandise accompanying

travelers closer to the average rate of dutiable merchandise entering the United States, and lower the duty rate for merchandise

from American Samoa, Guam, and the Virgin Islands of the United

States.

TREATMENT OF PERSONAL EFFECTS OF PARTICIPANTS IN

INTERNATIONAL ATHLETIC EVENTS (SEC. 1456)

Present law

Personal effects of participants in, officials of, and accredited

members of delegations to, international athletic events held in the

United States not intended for sale or distribution in the United

States are exempt from duty until December 31, 2002.

Explanation of provision

This provision would amend subchapter XVII of chapter 98 of the

HTS by inserting a new heading 9817.60.00 for duty free treatment

of the personal effects of participants in, officials of, and accredited

members of delegations to, international athletic events, including

the paralympics, held in the United States provided that these

items are not intended for sale or distribution in the United States.

H.R. 2715 would also exempt the articles covered under this provision from taxes and fees and would give the Secretary of the Treasury discretion to determine which athletic events, articles, and persons are covered under this provision.

Reason for change

The Committee recognizes the importance of international athletic events and the tremendous efforts of the athletes and participants. Although athletes and other officials connected with certain

sporting events are currently afforded duty free treatment for their

personal belongings and equipment under current law, such treatment will expire in December 2002. This legislation will give athletes and participants of future competitions certainty regarding

their future duty liability. The Customs Service should ensure that

this new provision causes no delay to preparations that are being

undertaken under current law for the 2002 Salt Lake Winter

Olympics and Paralympics.

COLLECTION OF FEES FOR CUSTOMS SERVICES FOR ARRIVAL OF

CERTAIN FERRIES (SEC. 1457)

Present law

Current law prohibits U.S. Customs from collecting fees in connection with the arrival of any ferry.

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Explanation of provision

This provision amends section 13031 (b)(1)(A)(iii) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.

58c(b)(1)(A)(iii)) to allow for the collection of fees for Customs services for the arrival of certain ferries.

Reason for change

Limitations on certain customs user fees established under section 13031 (b)(1)(A)(iii) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(1)(A)(iii)) have prevented

U.S. Customs from issuing landing rights to ferries arriving in the

south Florida coastal region. This provision will authorize U.S.

Customs to collect user fees and issue landing rights to certain ferries whose operations began on or after August 1, 1999, and operate south 27 degrees latitude and east of 89 degrees longitude.

ESTABLISHMENT OF DRAWBACK BASED ON COMMERCIAL INTERCHANGEABILITY FOR CERTAIN RUBBER VULCANIZATION ACCELERATORS (SEC.

1458)

Present law

Section 313(j)(2) of the Tariff Act of 1930 19 U.S.C. section

1313(j)(2) allows exporters to claim substitution unused merchandise drawback if the substituted merchandise is ‘‘commercially

interchangeable’’ with the imported merchandise. The term-commercially interchangeable’’ is not defined in the statute, and there

is uncertainty as to whether the chemicals N-cyclohexyl-2-

benzothiazolesulfenamide (CBS) and N-tert-Butyl-2-

benzothiazolesulfenamide (TBBS) are commercially interchangeable

for drawback purposes.

Explanation of provision

This provision would amend section 313(j)(2) of the Tariff Act of

1930 (19 U.S.C. 1313(j)(2)) to provide that chemicals N-cyclohexyl2-benzothiazolesulfenamide (CBS) and N-tert-Butyl-2-

benzothiazolesulfenamide TBBS) are commercially interchangeable

for drawback purposes.

Reason for change

Based on the legislative history of the amendment to the drawback statute, which changed the criteria for substitution drawback

from a fungibility to a commercially interchangeability standard,

(H.R. Rept. No. 103 361, 103rd Cong., lst Sess. (1993) at 131), the

Committee has determined that chemicals N-cyclohexyl-2-

benzothiazolesulfenamide (CBS) and N-tert-Butyl-2-

benzothiazolesulfenamide (TBBS) fit the commercially interchangeable standard. This determination is based on the specific facts regarding these two chemicals: The sole active component of each

chemical is identical; and when used in a finished product, the

functionality of both chemicals is indistinguishable by the customer

and scientist. Both chemicals were originally classified within the

same tariff number but subsequently changed in order to provide

preferential GSP treatment to one of the chemicals, not for reasons

relating to their identity of chemical structure by molar weight or

functionality. In addition, the principal customers of both chemicals

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have stated in writing that both chemicals are used for the same

purposes—to aid vulcanization in the processing of rubber, and

that they perform the same function, are utilized on the same

equipment, and are purchased on the market the same relative

value.

CARGO INSPECTION (SEC. 1459)

Present law

Section, 58(b) of the Tariff Act of 1930 (19 U.S.C. 58(b)) authorizes the Secretary of the Treasury to make Customs services available for a fee at certain small airports. Section 2425 of the Miscellaneous Trade and Technical Corrections Act of 1999 (113 Stat.

127, 181), authorized the Commissioner of Customs to establish a

fee-for-service pilot program for fiscal year 1999 at an international

airport located at a seaport that serviced more than 185,000 tons

of air cargo in 1997. Broward County entered into an agreement

with U.S. Customs to provide 24 hour cargo service for one year.

That agreement expired in September 2000. U.S. Customs currently provides passenger clearance service five days per week between the hours of 9 a.m. and 5 p.m.

Explanation of provision

This provision authorizes the Commissioner of Customs to implement a fee-for-service agreement with Broward County to provide

customs service for a period of two years, renewable thereon an annual basis at the Fort Lauderdale-Hollywood International Airport.

This fee for service is for cargo processing only, and includes providing the necessary infrastructure, and other services for cargo

clearance. When such services have been provided for at least a period of two years on a fee-for-service basis and commercial consumption level reaches 29,000 entries per year, Customs will continue to provide all such service, and no other charges, other than

those fees authorized by section 13031(a) of the consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58(b)), may be collected for those services.

Reason for change

The fee-for-service agreement between Broward County and U.S.

Customs has expired, and Broward County continues to require

this service. This provision will allow U.S. Customs to continue this

fee-for-service arrangement for at least two more years. The agreement may be renewed, or if after this time, consumption level at

the airport reaches 29,000 entries per year, U.S. Customs will continue to all such service, and no other charges, other than those

fees authorized by section 13031(a) of the consolidated Omnibus

Budget Reconciliation Act of 1985 (19 U.S.C. 58(b)), may be collected for those services.

TREATMENT OF CERTAIN MULTIPLE ENTRIES OF MERCHANDISE AS

SINGLE ENTRY (SEC. 1460)

Present law

Current law requires that the goods be classified in the condition

as they arrive. This includes large articles, particularly machinery,

which may not be able to fit on a single conveyance, such as a

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truck or plane. In addition, it is common that in air shipments, adjustments are made to the amount of cargo laden because of flight

conditions. As a result of these shipping conditions, parts of

entireties do not arrive together, which causes classification or

entry problems with the U.S. Customs Sevice.

Explanation of provision

This provision will amend section 1484 of title 19 to provide authority to U.S. Customs to treat goods purchased and invoiced as

a single entity and shipped unassembled or disassembled in separate shipments over a period of time as a single transaction for

Customs entry purposes. The provision requires importers to request such treatment in advance of entry, and also requires the

Secretary of the Treasury to issue regulations setting forth the information required for this type of entry.

Reason for change

The proposed changes, supported by both importers and the Customs Service, are needed to address large shipments that cannot be

shipped as an entirety.

REPORT ON CUSTOMS PROCEDURES (SEC. 1461)

Present law

Currently, the U.S. Customs Service ‘‘entry’’ process is divided

into two parts: ‘‘entry’’ and ‘‘entry summary.’’ In the last fiscal year

21.4 million entries were filed with the U.S. Customs Service, more

than 98% of them electronically. The importer has the option of filing all the data at once or in separate transmissions. The Bureau

of Census receives data electronically from the U.S. Customs Service on a weekly basis so that it may be used in compiling the ‘‘Balance of Trade’’ report.

Explanation of the provision

The provision requires the Secretary of the Treasury, in consultation with U.S. importers and other interested parties, to review

customs procedures, laws, and regulations relating to the entry of

merchandise and conveyances into the United States, and to report

to Congress within 180 days from the effective date of this Act,

changes that should be made to reduce the reporting and record retention requirements.

Reason for change

The Committee is concerned that the collection of import data

may be overly time consuming and unnecessarily costly and would

like to explore a system of periodically reporting the data on an aggregate basis. In addition, the Committee wishes to examine what

data is necessary at time of cargo release in order to determine admissibility. It is expected that the study will provide the factual

basis for evaluation of the current statistical collection system and

consideration of possible changes to it.

85

DRAWBACK FOR RECYCLED MATERIALS (SEC. 1462)

Present law

Under existing current law (19 USC 1313(c)) an importer may be

eligible for duty drawback (refund of 99% of the import duty paid)

on products that are returned to the importer and are deterinined

to be manufacturer defectives. The statutory purpose of this provision is to reimburse importers for import duties paid on product

that is not consumed within U.S. commerce. To be eligible for defective product duty drawback, the product must either be: completely destroyed to the extent that the product has no commercial

value; or exported out of the United States. The purpose of the destruction or export requirement is to ensure that the importer does

not benefit unfairly by collecting drawback as well as being compensated for the resale of the defective product.

Explanation of provision

This provision expands the definition of ‘‘destruction’’ to include

recycling, which is defined as any act in which materials are recovered from the destroyed merchandise.

Reason for change

This provision will create an economic incentive for importers to

recycle their defective goods rather than simply destroy them.

PRESERVATION OF CERTAIN REPORTING REQUIREMENTS (SEC. 1463)

Present law

Section 163 of the Trade Act of 1974 directed the U.S. International Trade Commission (ITC) to submit a report to Congress

at least once a year on the operation of the trade agreements program. Section 181 of the Trade Act of 1974, as amended, directed

the United States Trade Representative (USTR) to report annually

on foreign trade barriers. These mandates were canceled effective

May 15, 2000 by section 3003 of the Federal Reports Elimination

and Sunset Act of 1995, Pub. L. 104–66, Title III, sec. 3003, 109

Stat. 734.

Explanation of provision

This provision would direct the ITC to submit to Congress a report on the operation of the trade agreements program at least

once a year and it would also direct USTR to submit to Congress

an annual report on foreign trade barriers. These reports will be

submitted notwithstanding section 3003 of the Federal Reports

Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note).

Reason for change

The Committee believes that the ITC’s report on the Operation

of the Trade Agreements Program (also known as ‘‘The Year in

Trade’’) and that the USTR report on foreign trade barriers (known

as ‘‘The National Trade Estimate Report on Foreign Trade Barriers’’), provide valuable information to Congress as it considers

trade policy and legislation. The Committee, therefore, believes

that these reports should be reauthorized.

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Subtitle C—Effective Date

EFFECTIVE DATE (SEC. 1471)

Except as otherwise provided in this title, the amendments made

by this title shall apply with respect to goods entered, or withdrawn from warehouse, for consumption, on or after the 15th day

after the date of enactment of this Act.

TITLE II—OTHER TRADE PROVISIONS

TRADE ADJUSTMENT ASSISTANCE FOR CERTAIN WORKERS AFFECTED BY

ENVIRONMENTAL REMEDIATION AFTER CLOSURE OF A COPPER MINING

FACILITY (SEC. 2001)

Present law

Title II of the Trade Act of 1974, as amended, authorizes trade

adjustment assistance (TAA) in the form of training and income

support for workers adversely affected by import competition.

Under the TAA program, a worker must be certified by the Secretary of Labor as eligible for benefits before applying for assistance. Workers are not eligible to apply for benefits, however, if they

become separated from employment after the expiration for the 2-

year period subsequent to issuance of the certification by the Secretary.

Explanation of provision

The provision provides that workers at a copper mining facility

in White Pine, Michigan who were employed at the time of the

original certification and who remained at the facility to conduct

environmental remediation shall be eligible to apply for TAA program benefits, regardless of their date of separation.

Reason for change

The workers at a copper mining facility in White Pine, Michigan

received TAA certification in 1995 because of increased import competition from Canada. The workers were re-certified in 1997 while

the mine continued the process of closing. Although the mine

ceased operations in 1997, a group of workers, employed at the

mine at the time the company was first certified, will remain

through 2001 to complete federally mandated environmental remediation. The provision establishes TAA eligibility for these workers,

notwithstanding the date when the mine ceased production.

TITLE III—EXTENSION OF NONDISCRIMINATORY TREATMENT TO

GEORGIA

FINDINGS AND TERMINATION OF THE APPLICATION OF TITLE IV OF THE

TRADE ACT OF 1974 (SEC. 3001–3002)

Present law

Georgia’s NTR status is currently governed by Title IV of the

Trade Act of 1974, as amended by the Customs and Trade Act of

1990 (title IV). Section 402 of title IV (also known as the JacksonVanik amendment) sets forth requirements relating to freedom of

emigration, which must be met or waived by the President in order

for the President to grant nondiscriminatory normal trade relations

(NTR) status to a non-market economy country. Title IV also reVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00086 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
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1 Effective January 1, 2002, this tax rate will increase to 39 cents per pack of 20 cigarettes.

Tax rates on other tobacco products will increase proportionately at that time. 2This includes the bringing back into the United States of tobacco products that have been

removed to Puerto Rico.

quires that a trade agreement remain in force between the United

States and a non-market economy country receiving NTR status

and sets forth minimum provisions which must be included in such

agreement.

Georgia, which was granted NTR in 1992, was found to be in full

compliance with the Jackson-Vanik freedom of emigration requirements on June 3, 1997. Since then, NTR has been granted to Georgia subject to semiannual review, and potential disapproval by a

Joint Resolution of Congress.

Explanation of provision

The Committee recognizes that title IV of the Trade Act of 1974

has promoted the right to emigrate. Since the dissolution of the Soviet Union, minority groups have secured the return of communal

properties confiscated during the Soviet period, thereby facilitating

the reemergence of communal organizations and participation in

domestic affairs. The report on compliance with the emigration provisions of title IV, finds that Georgia is in compliance with the emigration provisions of title IV. The Committee finds that Georgia

should be graduated from title IV, thereby permitting the extension

of permanent normal trade relations.

With respect to national minorities, the Committee notes that

the member states of the Organization for Security and Cooperation in Europe (OSCE), including the former USSR and its successor states, have committed to ‘‘adopt, where necessary, special

measures for the purpose of ensuring to persons belonging to national minorities full equality, individually as well as in community

with other members of their group.’’

TITLE IV—GREY MARKET CIGARETTE COMPLIANCE (SEC. 4001–

4004)

AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

TECHNICAL CORRECTION TO RULES GOVERNING RE-IMPORTATION OF

CIGARETTES

Present Law

An excise tax equal to 34 cents per pack of 20 cigarettes is imposed on cigarettes manufactured, imported, or brought into the

United States.1 Separate taxes are imposed on other tobacco products, including cigars, smokeless tobacco, and pipe and roll-yourown tobacco. The taxes do not apply to tobacco products that are

exported from the United States (including removal to Puerto Rico).

Tobacco products may be removed without payment of tax from

domestic manufacturers’ premises for export only if the packages

bear prescribed markings. Present law prohibits the reimportation

or bringing into the United States 2 of domestically manufactured

tobacco products unless the products are returned to the premises

of a manufacturer or an export warehouse proprietor.

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3 Effective January 1, 2002, this tax rate will increase to 39 cents per pack of 20 cigarettes.

Tax rates on other tobacco products will increase proportionately at that time. 4This includes the bringing back into the United States of tobacco products that have been

removed to Puerto Rico.

Explanation of provision

A technical correction is made to clarify that domestically produced cigarettes may be reimported into the United States for personal use in quantities that are exempt from tax and duty under

the Harmonized Tariff Schedule. No amount of tobacco products

other than the numeric quantities provided for in the Tariff Schedule may be re-imported or brought into the United States as a personal use quantity. It is, however, the expectation of the Committee

that the Customs Service will permit an individual to relinquish

voluntarily a de minimis amount of tobacco products in excess of

such quantity without incurring penalties.

Effective date.—The technical correction is effective as if included

in the Balanced Budget Act of 1997.

Reasons for change

This technical correction is made to clarify that domestically produced cigarettes may be reimported into the United States for personal use in quantities that are exempt from tax and duty under

the Harmonized Tariff Schedule.

MODIFICATIONS TO RULES GOVERNING RE-IMPORTATION OF U.S.-

MANUFACTURED CIGARETTES

Present law

An excise tax equal to 34 cents per pack of 20 cigarettes is imposed on cigarettes manufactured, imported, or brought into the

United States.3 Separate taxes are imposed on other tobacco products, including cigars, smokeless tobacco, and pipe and roll-yourown tobacco. The taxes do not apply to tobacco products that are

exported from the United States (including removal to Puerto Rico).

The Treasury Department is authorized to require tobacco products destined for export to be packaged in specially marked packages to distinguish the products from products for the U.S. domestic market. This packaging is a condition of removal from the manufacturers’ premises without payment of tax. If products removed

for export are diverted into the U.S. domestic market, numerous

present law sanctions apply. Any person (including a manufacturer, a wholesale distributor, or a retailer) who knowingly holds

untaxed tobacco products removed for export for sale in the U.S.

domestic market is subject to civil and/or criminal penalties for

holding the tobacco products. Such a person further is liable as well

for the tax (and for penalties for failure to pay the tax and to file

a return, where appropriate). Finally, present law authorizes the

Treasury Department to seize any export-labeled tobacco products

removed after December 31, 1999, and found in the U.S. domestic

market.

Present law prohibits the re-importation or bringing into the

United States of domestically manufactured tobacco products unless the cigarettes are returned to the premises of a manufacturer

or an export warehouse proprietor.4 The Treasury Department has

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ucts as an entity that manufactures domestically at least as many

cigarettes as it re-imports. Further, Treasury regulations require

that any re-imported or brought in tobacco products be re-packaged

in appropriate domestic market packaging before being removed

(tax-paid) for sale in the U.S. domestic market. Tobacco products

that enter the U.S. domestic market in violation of these rules are

subject to seizure by the Federal Government under present law.

The Treasury Department administratively determines how to dispose of forfeited products.

Explanation of provision

The provision codifies present Treasury Department regulations

on the disposition of domestically produced tobacco products that

are re-imported or brought into the United States and modifies the

regulations to limit the disposition of the tobacco products to return

to the original manufacturer of the product or to an export warehouse proprietor authorized by the original manufacturer to receive

the products. This codification includes without change the present

Treasury regulation requirement that re-imported tobacco products

be re-packaged in appropriate domestic packaging before being removed (tax-paid) for sale in the U.S. domestic market.

The provision also provides that tobacco products that are forfeited to the Federal Government under present-law provisions

must be destroyed (rather than being disposed of in any manner

administratively determined by the Treasury Department).

The provision expands the application of the special tax penalty

for re-importing tobacco products to include the sale in the U.S. domestic market of tobacco products labeled for export (but not actually exported). Thus, this penalty can be imposed in addition to the

present-law penalties and other sanctions that apply to tobacco

products that might be removed for export, but instead are diverted

into the U.S. domestic market. The provision also authorizes the

Treasury Department to seize all export-labeled tobacco products

found in the U.S. domestic market regardless of the date of removal.

Finally, the provision directs the Treasury Department to report

to the Congress on any adverse economic effects that may be experienced by export warehouses as a result of the provision in the bill

which conditions the ability to store re-imported tobacco products

on approval of the warehouse by the original manufacturer of the

product.

Effective date.—The provision is effective beginning 90 days after

the date of enactment.

Reasons for change

The Committee decided to codify the substance of the present

Treasury Department regulations governing re-importation of tobacco products and to expand U.S. manufacturers’ control over

products bearing their trademark when those products are re-imported or brought back into the United States. This codification

should preclude any manufacturer from receiving these products

and marketing them in violation of trademark law. Additionally,

the Committee believes that the appropriate disposition of forfeited

tobacco products is destruction.

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AMENDMENTS TO THE TARIFF ACT OF 1930

Present law

No provision.

Explanation of provision

This provision creates a new title in the Tariff Act of 1930 that

will impose certain requirements on imports of cigarettes.

First, the original manufacturer of the cigarettes being imported

into the United States must certify that it has timely submitted,

or will timely submit, to the Secretary of Health and Human Services the lists of ingredients described in section 7 of the Federal

Cigarette Labeling and Advertising Act (FCLAA). All importers of

cigarettes brought into the United States (like U.S. manufacturers

of domestically sold cigarettes) must currently file an ingredients

list. This 103 provision will simply require importers to provide certification that they are, or will be, in compliance with this existing

requirement.

Second, the warning statements specified in section 4 of the

FCLAA must be permanently imprinted on the cigarette packaging.

Currently, the Federal Trade Commission has allowed importers,

under certain circumstances, to comply with the requirements of

FCLAA by affixing adhesive labels with compliant warning statements, rather than requiring this information be permanently imprinted on the packaging, thus allowing the importation of cigarettes not intended for sale in this country.

Third, the importer must certify that it is in compliance with a

rotation plan approved by the Federal Trade Commission pursuant

to section 4(c) of the FCLAA. Under current law, the FTC is authorized to grant certain waivers to the rotation plan requirements

specified in section 4(c)(1) of FCLAA. This provision does not alter

the FTC’s authority to continue to grant such waivers.

Fourth, if the cigarettes bear a United States trademark registered for such cigarettes, the owner of such trademark, or such

owner’s authorized representative, must consent to the importation

of such cigarettes into the United States. The gray market restriction provisions of this bill are crafted for the special circumstances

of tobacco.

The provision also includes certain exemptions to the above requirements. These exemptions relate to cigarettes imported in personal use quantities, as well as those imported for analysis, noncommercial use, reexport or repackaging. With respect to personal

use, this provision makes clear that foreign produced cigarettes

may be imported into the United States for personal use in quantities that are exempt from tax and duty under the Harmonized

Tariff Schedule. No amount of tobacco products other than the numeric quantities provided for in the Tariff Schedule may imported

as a personal use quantity. It is, however, the expectation of the

Committee that the Customs Service will permit an individual to

relinquish voluntarily a de minimis amount of tobacco products in

excess of such quantity without incurring penalties.

The penalties available for failure to satisfy the provision of section 802 include certain civil penalties and forfeiture of any tobacco

products, cigarette paper or tube that is seized.

Effective date.—The provision is effective upon enactment.

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Reasons for change

The Balanced Budget Act of 1997 (BBA ‘97) imposed restrictions

on the reimportation of export-label cigarettes manufactured in the

United States. This provision was intended to prevent the evasion

of federal excise taxes and assist the States in implementing the

goals the tobacco settlement agreements then in place between certain States (Florida and Mississippi) and cigarette manufacturers.

BBA ‘97, however, did not impose any restrictions on the importation of cigarettes manufactured abroad that bear the trademark of

a product manufactured in the United States and which are diverted from foreign markets for sale in the United States, so-called

‘‘gray market’’ cigarettes.

There is great concern that imports of gray market cigarettes

have increased dramatically since the Master Settlement Agreement was reached, thereby displacing sales of domestically manufactured cigarettes bearing the same trademark. This is of concern

to the Committee because such cigarettes may not fully comply

with U.S. health and safety standards. It is also a concern because

the foreign manufactured cigarettes are not counted in the formulae used to calculate payments that the tobacco companies are

required to make under the tobacco settlement agreements, including the Master Settlement Agreement, individual State settlements

and the Phase II Agreement between tobacco manufacturers and

U.S. tobacco farmers and quota holders.

The Committee has been advised by members of the National Association of Attorneys General that certain importers, in connection

with their importation of gray-market cigarettes into the United

States, have been evading and circumventing the requirements of

the warning label and ingredient disclosure requirements of the

Federal Cigarette Labeling and Advertising Act (FCLAA). Because

multiple federal agencies have jurisdiction over the varying elements of the FCLAA health and safety provisions, existing law is

inadequate to detect in a timely manner fraudulent submissions or

to audit compliance by importers.

The Committee finds that the requirements of section 4004 for

the entry into the United States of cigarettes, whether manufactured domestically or abroad, are necessary to ensure compliance

with the critical health and safety provisions of FCLAA, and are

largely the same as the requirements for domestically manufactured cigarettes. Certain certifications are not required with respect to cigarettes manufactured within the United States, that are

intended for and remain in this country for sale, because the appropriate federal agencies have complete jurisdiction over the manufacturers and distributors of such products. However, law enforcement agencies do not have the same scope of authority to investigate potential violations by foreign manufacturers and importers.

For example, the Department of Justice has authority to enforce

the criminal penalty in FCLAA, 15 U.S.C. § 1338, applicable to

both the warning label and ingredient disclosure requirements of

that Act. In conducting an investigation of a FCLAA violation, the

Department of Justice would have full authority to obtain relevant

documents and gain entry into domestic manufacturing and distribution facilities, including through compulsory process. However,

if the alleged violation of FCLAA is by an importer, the Department of Justice, because of the limits of its territorial power, could

92

not gain access through compulsory process to the importer’s foreign facilities, nor could the Department compel the production of

documents in the hands of a foreign manufacturer that is unrelated

to the importer of the product.

Similarly, the Federal Trade Commission (FTC), which, along

with the Department of Justice, enforces compliance with the

warning label regime contained in FCLAA, has authority under the

Federal Trade Commission Act, 15 U.S.C. § 41, et seq, to require

the production of corporate information and documents, to review

manufacturing records, and to require compliance reports from

manufacturers. However, the FTC’s authority to conduct investigations through compulsory process also is limited by the scope of its

territorial authority. In light of these enforcement limitations, the

certification requirements of section 4004 provide additional enforcement tools to ensure compliance with domestic health and

safety laws.

Requiring the U.S. trademark holder to consent to the importation of such cigarettes is necessary to ensure full compliance with

the restrictions applicable to the unique circumstances of gray market cigarettes. The Committee believes that the consent of the

trademark holder is essential because these parties have the greatest incentive to monitor imports of cigarettes bearing their trademark and because any complicity by the trademark holder in this

trade can be addressed more easily in the courts. It is the expectation and intent of the Committee that this requirement will not inhibit the importation of any legitimately traded cigarettes. In the

Committee’s view, the unique nature of tobacco products and the

importance of the States’ tobacco settlement agreements fully justify the use of U.S. trademarks in this manner. In this regard, however, it should be noted that the gray market restriction provisions

of this bill are crafted for the special circumstances of tobacco. This

provision, however, is not intended to alter current policies with regard to other gray-market goods.

It is the Committee’s understanding that there is litigation currently pending regarding the constitutionality of the Master Settlement Agreement. Nothing in this legislation or in this report shall

be construed as validating or invalidating the constitutionality of

the MSA.

III. VOTES OF COMMITTEE

In compliance with section 133 of the Legislative Reorganization

Act of 1946, the Committee states that H.R. 4868, as amended, was

ordered favorably reported with a quorum present by voice vote on

September 19.

IV. CONGRESSIONAL ACTION

On June 1, 2000, Chairman Roth requested public comment on

a package of technical corrections, temporary duty suspensions or

reductions and other miscellaneous trade proposals introduced during the 106th Congress and referred to the Committee on Finance.

H.R. 4868, as amended, includes many of these bills which, based

upon the comments submitted to the Committee on Finance by the

public, the U.S. Customs Service, the U.S. Department of Commerce, the U.S. International Trade Commission (ITC), the United

93

States Trade Representative and other agencies, the Committee

has found to be non-controversial. H.R. 4868, as amended, was ordered favorably reported by the Committee, with a quorum present,

by voice vote, on September 19, 2000.

V. BUDGETARY IMPACT

In compliance with sections 308 and 403 of the Congressional

Budget Act of 1974, and paragraph 11(a) and (b) of rule XXVI of

the Standing Rules of the Senate, and section 423 of the Unfunded

Mandates Reform Act of 1995 (Pub. L. 104–4) the following letter

has been received from the Congressional Budget Office on the

budgetary and regulatory impact of the legislation:

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, October 4, 2000.

Hon. WILLIAM V. ROTH, JR.,

Chairman, Committee on Finance,

U.S. Senate, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4868, the Miscellaneous

Trade and Technical Corrections Act of 2000.

If you wish further details on this estimate, we will he pleased

to provide them. The CBO staff contact is Erin Whitaker.

Sincerely,

BARRY B. ANDERSON

(For Dan L. Crippen, Director.)

Enclosure.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 4868—Miscellaneous Trade and Technical Corrections Act of

2000

Summary: H.R. 4869 would make technical corrections and miscellaneous amendments to certain trade laws. CBO estimates that

each of the provisions in the act that would affect rates of duty

would reduce governmental receipts (revenues) by less than

$500,000 each year. Each of the provisions that would affect direct

spending would increase such spending by less than $500,000 each

year. Other provisions in the act that would alter treatment for certain products relative to current trade law would reduce receipts by

$15 million in 2001, by $38 million over the 2001–2005 period, and

by $73 trillion over the 2001–2010 period. Because H.R. 4868

would affect direct spending and receipts, pay-as-you-go procedures

would apply.

H.R. 4868 contains no intergovernmental mandates as defined in

the Unfunded Mandates Reform Act (UMRA) and would not affect

the budgets of state, local, or tribal governments, H.R. 4868 would

impose private-sector mandates on persons engaged in business activities involving products that contain cat or dog fur and persons

engaged in the importation of certain foreign produced cigarettes.

CBO estimates that the direct, costs of those mandates would not

exceed the annual threshold for private-sector mandate established

by UMRA ($109 million in 2000, adjusted annually for inflation).

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Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 4868 is shown in the following table. The act

would reduce federal revenues and would increase federal spending

slightly in budget functions 750 (administration of justice) and 600

(income security).

By fiscal year, in millions of dollars

2001 2002 2003 2004 2005

CHANGES IN REVENVES

Duty suspensions and reductions ................................................................. (1) (1) (1) (1) (1)

Refunds of customs duties ........................................................................... ¥10 0 0 0 0

Treament of certain imported goods ............................................................ (1) (1) (1) (1) (1)

Extension of PNTR0 2 to Georgia ................................................................... (1) (1) (1) (1) (1)

Imports and exports of certain cigarettes .................................................... ¥5 ¥5 ¥6 ¥6 ¥6

Total changes in revenues .............................................................. ¥15 ¥5 ¥6 ¥6 ¥6

CHANGES IN DIRECT SPENDING OUTLAYS

Customs fees ................................................................................................ (1) (1) (1) (1) (1)

Trade adjustment assistance ....................................................................... (1) (1) (1) (1) (1)

Total changes in direct spending ................................................... (1) (1) (1) (1) (1)

1 Less than $500.000

2 Permanent normal trade relations.

Basis of Estimate

Revenues

Title I would make various changes to certain trade laws. Subtitle A would create or extend temporary duty suspensions or reductions on certain intermediary products and chemicals imported

into the United States. CBO estimates that each of these provisions

would reduce government revenues by less than $500,000 each

year, net of income and payroll tax offsets. Subtitle B would provide for refunds of customs duties paid on certain imported products, CBO estimates that the majority of these provisions would reduce government revenues by less than $500,000 each year, net of

income and payroll tax offsets.

One provision of subtitle B would provide for the refund of customs duties paid on certain athletic shoes. Based on information

from the U.S. Customs Service, CBO estimates that this provision

would reduce government revenues by $9 million in 2001, net of income and payroll tax offsets, with no additional reductions over the

2002–2010 period. Certain other provisions of subtitle B would provide for the refund of customs duties paid on certain entries of tomato sauce preparation. Based on information from the Customs

Service, CBO estimates that these provisions would reduce government revenues by $2 million in 2001, net of income and payroll tax

offsets, with no additional reductions over the 2002–2010 period.

In addition, title I would alter treatmennt of certain imported

goods in several ways. It would prohibit the importation of products made with cat and dog fur, would allow refunds of customs duties for certain imported products that are then recycled, and exempt the personal effects of participants in international athletic

events from any customs duties. CBO estimates that each of these

provisions would reduce government revenues by less than

$500,000 each year, net, of income and payroll tax offsets. This esVerDate 11-MAY-2000 12:56 Oct 17, 2000 Jkt 089010 PO 00000 Frm 00094 Fmt 6659 Sfmt 6602 E:\HR\OC\SR503.XXX pfrm01 PsN: SR503
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timate is based on information from the International Trade Commission, the U.S. Customs Service, and various other trade sources.

Title III would allow the President to grant permanent normal

trade relations (PNTR) to Georgia. Georgia has been found to be

in full compliance with the Jackson-Vanik freedom of emigration

requirements and has been granted normal trade relations (NTR),

subject to a semiannual review and disapproval by a joint resolution of Congress. Without PNTR, the United States could not trade

with Georgia under the World Trade Organization (WTO). Because

Georgia acceded to the WTO on June 14, 2000, revenues could increase due to less restrictive quotas on textiles and apparel once

PNTR was established. However, CBO estimates any such duties

would be negligible.

Title IV would impose restrictions on exports and imports of certain categories of cigarettes. It would require that all imported

cigarettes comply with requirements detailing their ingredients, as

well as certain labeling and trademark requirements. Based on information from the Federal Trade Commission, the International

Trade Commission, the Joint Committee on Taxation, and various

other sources, CBO estimates that this provision would reduce revenues by $5 million in 2001, by $29 million over the 2001–2005 period, and by $63 million over the 2001–2010 period.

Direct Spending

Title I would authorize the Customs Service to collect fees for the

arrival of ferries and to establish a fee-for-service agreement to provide certain services at the Fort Lauderdale-Hollywood International Airport. The Customs Service is authorized to spend these

fees without further appropriations action, so CBO estimates that

the net impact of these provisions would be less than $500,000 in

each year.

Title II would make a small number of workers eligible to receive

trade adjustment assistance benefits. These workers were originally authorized to receive benefits under certification number TA–

W–31,402 but did not lose their jobs right away. Under current

law, these

workers have a limited time after the petition for certification is

accepted in which to apply for these benefits. The act would remove

any limitation on the period during which benefits could be received. CBO estimates that providing trade adjustment assistance

benefits to these workers would cost less than $200,000 over the

2001–2010 period.

Pay-as-you-go considerations: The Balanced Budget and Emergency Deficit Control Act sets up procedures for legislation affecting receipts or direct spending. The net changes in outlays and

govemmental receipts that are subject to pay-as-you-go procedures

are shown in the following table. (The outlay effects would total

less than $500,000 a year.) For the purposes of enforcing pay-asyou-go procedures, only the effects in the budget year and the succeeding four years are counted.

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By fiscal year, in millions of dollars—

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Changes in receipts ................................................................. ¥15 ¥5 ¥6 ¥6 ¥6 ¥6 ¥7 ¥7 ¥7 ¥8Changes in outlays .................................................................. 0 0 0 0 0 0 0 0 0 0

97

Estimated impact on State, local, and tribal governments: H.R.

4868 contains no intergovernmental mandates as defined in UMRA

and would not affect the budgets of state, local, or tribal governments,

Estimated impact on the private sector: H.R. 4868 would impose

private-sector mandates on persons engaged in business activities

involving products that contain cat or dog fur and persons engaged

in the importation of certain foreign produced cigarettes, CBO estimates that the direct costs of those mandates would not exceed the

annual threshold for private-sector mandates established by UMRA

($109 million in 2000, adjusted annually for inflation).

First, the act would impose a mandate by prohibiting all commercial activities occurring in the United States that involve products made with cat or dog fur. Such activities include the importing, exporting, merchandising, and transporting of these goods. According to the Humane Society, within the United States there is

no manufacture of products fabricated of dog and cat fur. Currently, the Department of Commerce classifies products made of cat

and dog fur into categories with goods made of certain other animal

skins. In 1999, the United States imported and exported $36 million worth of products within these categories. Since products made

with cat and dog fur represent a fraction of these values, the direct

cost of complying with this mandate measured in lost net income

would fall well below the annual threshold established by UMRA.

Second, the act would impose a mandate by prohibiting the importation of certain foreign-produced cigarettes. According to the

International Trade Commission, the United States imported $106

million worth of cigarettes in 1999. Historically, the foreign-source

cigarettes that would be Prohibited account for no more than 16

percent of the total value of imported cigarettes, based on information provided by a tobacco company representative and the Florida

Attorney General’s Office. Moreover, the income of persons or business engaged in importing such cigarettes would be a fraction of

those values. Consequently, CBO estimates that the direct cost of

complying with this mandate would fall well below the annual

threshold established by UMRA.

Previous CBO estimate: On July 25, 2000, CBO transmitted a

cost estimate of H.R. 4868 as ordered reported by the House Committee on Ways and Means on July 19, 2000. This estimate reflects

the addition of several provisions to the House version of H.R.

4868, particularly those provisions dealing with the refund of customs duties on certain athletic shoes and with the restrictions on

exports and imports of certain cigarettes. These changes would further reduce revenues, relative to the House version of H.R. 4868,

by $15 million in 2001, by $38 million over the 2001–2005 period,

and by $73 million over the 2001–2010 period.

Estimate prepared by: Revenues: Erin Whitaker; customs fees:

Mark Graowicz, trade adjustment assistance: Paul Cullinan; impact on State, local, and tribal governments: Leo Lex; impact on

the private sector: Paige Piper/Bach.

Estimate approved by: G. Thomas Woodward, Assistant Direct

for Tax Analysis, and Peter H. Fontaine, Deputy Assistant Director

for Budget Analysis.

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VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS

REPORTED

In the opinion of the Committee, it is necessary, in order to expedite the business of the Senate, to dispense with the requirements

of paragraph 12 of Rule XXVI of the Standing Rules of the Senate

(relating to the showing of changes in existing law made by the bill

as reported by the Committee).

Æ