110 HR 6324 IH: Imported Ethanol Facilitation U.S. House of Representatives 2008-06-19 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 6324 IN THE HOUSE OF REPRESENTATIVES June 19, 2008 Mr. Udall of Colorado (for himself and Mr. Perlmutter) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To facilitate the importation of ethanol.

1.

Short title

This Act may be cited as the Imported Ethanol Facilitation Act.

2.

Findings and purpose

(a)

Findings

Congress finds the following: (1)The United States has levied a tariff on imported ethanol equal to the excise tax credit for blending ethanol in order to preclude foreign producers from benefitting from that credit. (2)However, the Food, Conservation, and Energy Act of 2008 will decrease the excise tax credit for blending ethanol from $0.51 to $0.45 per gallon, but extend the $0.54 per gallon temporary duty on imported ethanol. (3)The result of these changes will be to increase the competitive disadvantage of ethanol imports in the United States marketplace and transform a tariff designed to offset a domestic subsidy into a real import barrier. (4)Erecting such an import barrier will tend to reduce the amount of ethanol that will be brought into the United States market from foreign producers, and thus will tend to increase the price of fuel for American consumers, while increased ethanol imports could possibly have the opposite result. (5)Erecting such an import barrier also can impede development of a global biofuels marketplace that would permit mutually beneficial trade between producing regions, including the United States, that would assist in stabilizing both fuel and food prices. (b)

Purpose

The purpose of this Act is to ensure that the tariff on ethanol does not exceed the tax credit applicable to blenders of ethanol, to avoid erecting a new trade barrier to imports of ethanol while assuring that foreign blenders will not benefit from the tax credit, and to require a study of potential effects of further reduction in or elimination of the duty on ethanol.

3.

Ethanol tax parity

(a)

In general

The President shall— (1)reduce the temporary duty imposed on ethanol under heading 9901.00.50 of the Harmonized Tariff Schedule of the United States by an amount equal to the reduction in any Federal income or excise tax credit under section 40(h), 6426(b), or 6427(e)(1) of the Internal Revenue Code of 1986, that occurs on or after January 1, 2009; and (2)take any other action necessary to ensure that the temporary duty imposed on ethanol under such heading 9901.00.50 does not excced any Federal income or excise tax credit applicable to ethanol under the Internal Revenue Code of 1986. (b)

Effective date

Any action by the President under paragraph (1) or (2) of subsection (a) shall take effect as of the same day as the corresponding reduction or other change in the Federal income or excise tax credit under section 40(h), 6426(b), or 6427(e)(1), or other provision, of the Internal Revenue Code of 1986.

4.

Study of potential effects of increased ethanol imports

No later than 90 days after the date of the enactment of this Act, the Secretary of Energy and the Secretary of Commerce shall submit to the Congress a report regarding the effects of the further reduction or elimination of the duty on ethanol on— (1)fuel supplies and fuel prices in the United States; and (2)domestic production of ethanol.