[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[Extensions of Remarks]
[Pages E1775-E1776]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      INTRODUCTION OF LEGISLATION

                                 ______
                                 

                       HON. WALTER B. JONES, JR.

                           of north carolina

                    in the house of representatives

                       Friday, September 27, 1996

  Mr. JONES. Mr. Speaker, today I am reintroducing legislation to 
correct the unintended reclassification of pharmaceutical-grade, FDA-
approved egg yolk phospholipid by the Harmonized Tariff Classification 
System [HTS]. HTS is a world-wide standardized classification of items 
for duty. The implementation

[[Page E1776]]

of HTS in 1988 was not supposed to change the duty on any item. 
However, unintentionally, HTS more than tripled the duty on this 
phospholipid, which is a unique component that must be imported by a 
North Carolina manufacturer.
  Pharmacia is a U.S. company located in Clayton, NC. The main product 
Pharmacia manufactures is Intralipids, a unique intravenous feeding 
solution. Pharmacia must import a key Intralipid ingredient because it 
is made only by Pharmacia's parent in Sweden.
  The duty on Pharmacia's phospholipid was set at 1.5 percent when 
Pharmacia began operations in North Carolina in the 1970's. Beginning 
in March 1991, the unintentional HTS reclassification of the 
phospholipid more than tripled this duty.
  My legislation would return the rate on the phospholipid to 1.5 
percent for the period from March 29, 1991 until January 1, 1995, when 
the duty for Pharmacia's phospholipid and other pharmaceutical 
components and products became zero under the GATT Agreement. The 
unintended duty increase that was paid in the interim, $396,779.16, 
would be refunded.
  Mr. Speaker, there has been no disagreement that the duty increase on 
Pharmacia's phospholipid was unintended. The issue is a matter of 
equity. Congress should be very concerned whenever a growing company 
like Pharmacia is unintentionally taxed without equitable redress. I 
hope that a way can be found very soon to enact the legislation 
necessary to correct the unintended duty the North Carolina company has 
paid.

                          ____________________