[Congressional Record Volume 141, Number 206 (Thursday, December 21, 1995)]
[Extensions of Remarks]
[Pages E2436-E2437]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   THE TEMPORARY DUTY SUSPENSION ACT

                                 ______


                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                      Thursday, December 21, 1995

  Mr. CRANE. Mr. Speaker, today, I am introducing a bill that could 
prove vital to the health and competitive position of U.S. companies 
that rely on imported components and raw materials, as well as their 
workers and communities. Specifically, my bill gives authority to the 
Department of Commerce to suspend the imposition of antidumping or 
countervailing duties temporarily on a limited quantity of a particular 
product needed by the American industry when users are effectively 
unable to obtain that product from U.S. producers.
  Under current laws, antidumping and countervailing duties are imposed 
on all covered products, even where there is no domestic production. 
However, imposing such duties on products that cannot be obtained in 
the United States hurts U.S. manufacturers who must compete globally, 
but does not reduce injury to any U.S. industry. Current U.S. trade 
laws simply do not provide adequate redress for American firms that 
need products subject to orders but cannot obtain them from U.S. 
producers. Present procedures are operative only in situations in which 
domestic producers have no intention of ever producing a particular 
product.
  By contrast, my bill would address situations in which a product is 
only temporarily unavailable--i.e., situations in which the domestic 
industry is not currently producing a product but may wish to leave 
open the option of doing so in the future. The bill provides the 
Department of Commerce with the flexibility to suspend duties 
temporarily until the domestic industry is able to produce a particular 
product. The temporary relief will encourage the domestic industry to 
develop new products since it will enable U.S. downstream users to stay 
in business in the United States until the U.S. industry begins to 
manufacture the needed input product--thus assuring that there will be 
U.S. customers for new products produced by the domestic industry.
  This proposal is a substantial departure from the short supply 
proposal considered by the Ways and Means Committee last year. Last 
year's proposal was modeled on the short supply provision in the U.S. 
voluntary steel restraint agreements and limited the discretion to be 
exercised by Commerce. My proposal is modeled on the temporary duty 
suspension provision that the European Union included in its 
antidumping regulation last year. 

[[Page E2437]]
It increases the degree of flexibility and discretion that Commerce 
will have in administering a temporary duty suspension provision, 
thereby responding to Commerce's concern about the burden of 
administering such a provision. With this increased flexibility and 
discretion, the proposal should not impose any significant burden on 
the Department.
  My temporary duty suspension provision would not in any way undermine 
the effectiveness of the antidumping or countervailing duty laws or the 
protections that these laws afford to U.S. producers and workers. This 
provision would apply only in situations in which no U.S. producer 
benefits from the protection of antidumping laws and downstream U.S. 
producers and their suppliers would be harmed because the product 
cannot be obtained in the United States.
  The current failure of U.S. antidumping and countervailing duty laws 
to consider domestic availability of products subject to these 
proceedings continues to hamper the competitiveness of numerous U.S. 
companies. A large and diverse group of trade associations and 
companies employing well over 1 million American workers supports 
including a temporary duty suspension provision such as this one in the 
trade laws because it gives Commerce the flexibility and control 
necessary to address changing market conditions.
  I look forward to moving this provision forward at the earliest 
opportunity.

                          ____________________