[Congressional Record Volume 142, Number 72 (Tuesday, May 21, 1996)]
[Senate]
[Pages S5448-S5449]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. PRESSLER (for himself, Mr. D'Amato, Mr. Breaux and Mr. 
        Graham):
  S. 1787. A bill to amend the Harmonized Tariff Schedule of the United 
States with respect to fireworks; to the Committee on Finance.


                         Fireworks legislation

  Mr. PRESSLER. Mr. President, today I am introducing legislation that 
would correct a mistake made during the drafting of the implementing 
legislation of the General Agreement on Tariffs and Trade [GATT] 
Uruguay round. That law has had the effect of unintentionally more than 
doubling the tariff rates on display fireworks that are imported into 
the United States. Unintended or not, this provision has had real 
consequences. The most obvious has been a dramatic increase in the 
price of display fireworks, the vast majority of which are purchased by 
our State and local governments for use in municipal celebrations.
  While we are struggling here in Congress to reduce the deficit and 
balance the Federal budget under tight economic constraints, State and 
local governments are required by law to balance their budgets every 
year--with far less flexibility and far fewer resources than what is 
available to the Federal Government.
  The higher cost of display fireworks imposes major strain on 
municipalities that wish to sponsor Memorial Day or Fourth of July 
celebrations. Many towns simply are unable to afford the higher 
fireworks prices and some may forego these celebrations altogether. 
It's a sad fact that one unfortunate consequence leads to others.
  These problems are especially troublesome for rural areas. Small 
cities and towns do not have a wide variety of options for purchasing 
their fireworks. A dramatic increase in the cost of fireworks leaves 
these towns with very few alternatives. The ripple effect of this is 
that the small companies that serve as fireworks distributors suffer 
sales losses.
  This is not just mere speculation. There is a family-owned business 
in my State of South Dakota called Rich Bros. Fireworks. Michael Rich 
and his family serve the small towns across our State. The Rich family 
does it because they enjoy the service they provide. Mr. President, 
this is not a highly profitable business to begin with, and the higher 
prices resulting from the GATT implementing legislation have caused 
demand to decline. Michael Rich has informed me that unless corrective 
action is taken, they may be forced to close their business by the end 
of the year. The name Rich Bros. is synonymous with July 4th in South 
Dakota, and kids across the State--young kids, and grown-up kids 
alike--look forward to the celebration of the birth of our country with 
all the fanfare and excitement fireworks provide.
  Family-owned businesses, such as Rich Bros., are the foundation of 
towns across South Dakota. These people are committed to their 
neighbors and to their communities. They should not suffer from 
unintended consequences of the law. That is why we are here--to look 
out for them and to correct problems like these as soon as possible. 
That is why I am introducing this legislation today. It is really a 
minor change that would make a major difference--perhaps the difference 
between life and death--for small businesses like Rich Bros. I ask my 
collea- 
gues for their support in passing this legislation which restores the 
2.4-percent tariff rate for display fireworks that existed prior to the 
implementation of the Uruguay round legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1787

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DUTY ON DISPLAY FIREWORKS.

       Chapter 36 of the Harmonized Tariff Schedule of the United 
     States is amended by striking subheading 3604.10.00 and 
     inserting the following new subheadings:

                                                                                                                
                                                                                                                
                                                                                                                
``  ......  3604.10           Fireworks:.............  .........  .......................  ..........  .........
  ........  3604.10.10        Display fireworks             2.4%  Free (A*, CA, E, IL, J,       12.5%  .........
                               (Class 1.3C).                       MX).                                         
  ........  3604.10.90        Other (including Class        5.3%  Free (A*, CA, E, IL, J,      12.5%.  ''       
                               1.4G).                              MX).                                         
                                                                                                                


[[Page S5449]]



     SEC. 2 EFFECTIVE DATE.

       (a) In General.--The amendment made by section 1 applies 
     with respect to goods entered, or withdrawn from warehouse 
     for consumption, on or after the 15th day after the date of 
     the enactment of this Act.
       (b) Retroactive Treatment.--Notwithstanding section 514 of 
     the Tariff Act of 1930 (19 U.S.C. 1514) or any other 
     provision of law, upon a request filed with the Customs 
     Service before the 90th day after the date of the enactment 
     of this Act, any entry, or withdrawal from warehouse for 
     consumption--
       (1) which was made on or after January 1, 1996, and before 
     the 15th day after the date of the enactment of this Act, and
       (2) with respect to which there would have been a lesser 
     duty if the amendment made by section 1 applied to such entry 
     or withdrawal,

     shall be liquidated or reliquidated as though such amendment 
     applied to such entry or withdrawal.

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