I
103D CONGRESS
1ST SESSION
H. R. 2004
To amend the Tariff Act of 1930 to require that certain revenues attributable
to tariffs levied on imports of textile machinery and parts thereof be
applied to support research for the modernization of the American textile
machinery industry.
IN THE HOUSE OF REPRESENTATIVES
MAY 6, 1993
Mr. BALLENGER (for himself, Mr. BEVILL, Mr. COBLE, Mr. DARDEN, Mr.
DUNCAN, Mr. EMERSON, Mr. GINGRICH, Mr. HANCOCK, Mr. HEFNER,
Mr. INHOFE, Mr. LANCASTER, Mr. MCMILLAN, Mr. MOAKLEY, Mr.
MONTGOMERY, Mr. NEAL of North Carolina, Mr. NEAL of Massachu-
setts, Mr. PARKER, Mr. QUILLEN, Mr. RAVENEL, Mr. ROSE, Mr. SOLO-
MON, Mr. SPENCE, Mr. SPRATT, Mr. TAYLOR of North Carolina, Mr.
TRAFICANT, Mr. VALENTINE, and Mr. PAYNE of Virginia) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Tariff Act of 1930 to require that certain
revenues attributable to tariffs levied on imports of tex-
tile machinery and parts thereof be applied to support
research for the modernization of the American textile
machinery industry.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONGRESSIONAL FINDINGS.
The Congress finds that—
(1) since the late 18th century, the United
States textile machinery industry has played an im-
portant role in the development of the world textile
industry;
(2) the United States textile machinery indus-
try currently consists of approximately 500 compa-
nies, primarily small businesses, producing machin-
ery, parts and accessories used in the production of
textile mill products for apparel, defense, furniture
and industrial application;
(3) the textile machinery industry is overwhelm-
ingly comprised of firms with 50 or fewer employees;
(4) the textile machinery industry is one of 92
industries in the United States considered essential
to our defense needs;
(5) during the last decade, the textile machin-
ery industry has been among those industries most
weakened due to a dramatic rise in imports and for-
eign trade barriers which thwart United States ex-
ports;
(6) further erosion of the textile machinery in-
dustry will expose the United States textile and ap-
parel complex to offshore pricing, delivery and serv-
ice resulting in less competition and limited choice;
(7) shipments of textile machinery, parts and
accessories were approximately 26 percent lower in
1988 than in 1980, while imports rose by an as-
tounding 100 percent during this same period;
(8) such erosion of the textile machinery indus-
try will result in loss of tariff revenue to the Treas-
ury of the United States;
(9) the textile industry is among the largest five
employers in the country;
(10) there are many economic benefits of the
textile machinery industry, including tariffs on im-
ports, corporate and employee taxes, preservation of
jobs and small businesses, industrial growth, manu-
facturing skills, maintenance of basic industries, in-
creased exports, and a lower trade deficit;
(11) over the last two decades, employment in
the textile machinery industry has shrunk from
28,500 individuals to 17,800;
(12) recapturing the textile machinery market
will be a positive contribution to the balance of
trade;
(13) trade impacted businesses should have di-
rect access to capital from the source of subsidized
competition; and
(14) government studies recommend that re-
search and development programs be developed to
help sustain and expand the textile machinery indus-
try.
SEC. 2. TEXTILE MACHINERY MODERNIZATION FUND.
Part I of title III of the Tariff Act of 1930 (19 U.S.C.
1303–1323) is amended by inserting after section 323 the
following new section:
‘‘SEC. 324. TEXTILE MACHINERY MODERNIZATION FUND.
‘‘(a) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘Fund’ means the Textile Ma-
chinery Modernization Fund established under sub-
section (b).
‘‘(2) The term ‘qualified organization’ means
any entity organized under the laws of the United
States with principal manufacturing facilities located
in the United States that manufactures and markets
any of the following for utilization by the textile in-
dustry worldwide:
‘‘(A) Machinery.
‘‘(B) Parts.
‘‘(C) Accessories.
‘‘(D) Related systems.
‘‘(3) The term ‘qualified research project’
means a research project, conducted within the
United States, for machinery and equipment used
predominantly, if not exclusively, by the textile in-
dustry, or for major capital expenditure items of the
textile industry.
‘‘(4) The term ‘Secretary’ means the Secretary
of Commerce.
‘‘(5) The term ‘textile machinery and parts
thereof’ includes all articles provided for in subhead-
ings 
8420.10.10, 
8420.91.10, 
8420.99.10,
8443.50.10, and 8443.90.10 and in headings 8444
through 8449 of the Harmonized Tariff Schedule of
the United States and all textile machinery and
parts thereof provided for in headings 8450 through
8452 of such Schedule.
‘‘(b) ESTABLISHMENT OF FUND.—There is estab-
lished in the Treasury of the United States the Textile
Machinery Modernization Fund. The Fund consists of
such amounts as may be appropriated to it.
‘‘(c) PURPOSES OF FUND.—Monies in the Fund shall
be available, as provided for in advance in appropriation
Acts, for—
‘‘(1) grants made in accordance with subsection
(d) to qualified organizations to assist such organi-
zations to carry out qualified research projects; and
from the textile and textile machinery industries
and the public; and
‘‘(B) make a determination whether or not
to award any grant under this section within 12
months after the grant is applied for.
‘‘(4) LIMITATIONS.—(A) No grant made under
this section with respect to a qualified research
project may exceed 60 percent of the cost of the
project.
‘‘(B) The aggregate amount of the grant or
grants made to a qualified organization under this
section during any fiscal year is limited to expendi-
tures above that organization’s base line average of
annual expenditures during the 3 previous fiscal
years for qualifying textile machinery research, de-
velopment, and product engineering, as defined in
section 174 of the Internal Revenue Code of 1986.
Grants awarded under this section shall be excluded
from baseline calculations.
‘‘(C) If the total amount of monies available in
the Fund for the payment of grants for a fiscal year
is less than the total amount of the grants approved
for disbursement under this section for that fiscal
year, the amount of the grants paid during such
year shall be equitably prorated.
‘‘(e) APPROPRIATIONS TO FUND.—
‘‘(1) IN GENERAL.—There is appropriated to
the Fund for each fiscal year after fiscal year 1993,
from the revenues attributable to the customs duties
imposed on textile machinery and parts thereof im-
ported into the United States during the preceding
fiscal year, the greater of—
‘‘(A) an amount equal to 10 percent of
such revenues; or
‘‘(B) $10,000,000;
of which not to exceed $500,000 shall be available
for the purposes specified in subsection (c)(2).
‘‘(2) LIMITATION.—The aggregate amount of
monies in the Fund during any fiscal year may not
exceed $10,000,000.’’.
Æ