II 110th CONGRESS 1st Session S. 1106 IN THE SENATE OF THE UNITED STATES April 12, 2007 Mr. Thune introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To extend the additional duty on ethanol, to require an investigation into certain ethanol imports, and for other purposes.

1.

Short title

This Act may be cited as the Ethanol Tariff Extension and Caribbean Basin Initiative Investigation Act .

2.

Extension of additional duty on ethanol

(a)

In general

Subheading 9901.00.50 of the Harmonized Tariff Schedule of the United States is amended by striking 1/1/2009 in the effective period column and inserting 1/1/2011. (b)

Effective date

The amendment made by subsection (a) applies to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.

3.

Study and investigation of ethanol from certain Caribbean Basin countries

(a)

In general

Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall conduct a study into the source and quantity of ethanol, classifiable under subheading 9901.00.50 of the Harmonized Tariff Schedule of the United States, that is imported into the United States from any country that is designated as a beneficiary country under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 et seq.). (b)

Contents of study

The study required by subsection (a) shall include the following: (1)An identification of all countries that are not beneficiary countries designated under the Caribbean Basin Economic Recovery Act that produce ethanol that is imported duty-free into the United States through a country that is a beneficiary country under such Act. (2)A determination of the quantity of ethanol on a country-by-country basis that is imported duty-free into the United States through a country that is a beneficiary country under such Act. (3)Projections of the potential production capacity of all of the countries designated as beneficiary countries under such Act to dehydrate and export ethanol that originates in countries that are not beneficiary countries designated under such Act. The projections shall be made without regard to any import quotas relating to such beneficiary countries. (4)A determination of the impact on the domestic and international marketplace of duty-free treatment for ethanol imported from countries designated as beneficiary countries under such Act with and without the current import quotas. (5)A determination of the economic impact on countries designated as beneficiary countries under such Act if ethanol were not provided duty-free treatment and whether a stable political and economic climate would exist in the Caribbean region if duty-free treatment were not provided for ethanol. (c)

Report

Not later than 30 days after the Secretary concludes the study described in subsection (b), the Secretary shall report to Congress on the results of that study, including the Secretary's conclusions regarding— (1)the quantity of ethanol being passed through countries that are designated as beneficiary countries under the Caribbean Economic Recovery Act; (2)where that ethanol originates; (3)what the potential production capacity is for countries in the Caribbean region to act as a conduit for foreign ethanol if the current quota system is eliminated; (4)what the economic impact on the domestic ethanol industry would be if the quota were eliminated; and (5)whether the current duty-free treatment contributes to the political and economic stability of the Caribbean Basin region.