[Congressional Record Volume 145, Number 53 (Monday, April 19, 1999)]
[Senate]
[Page S3849]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. ROCKEFELLER (for himself and Mr. Byrd):
S. 827. A bill to establish drawback for imports of N-cyclohexyl-2-
benzothiazolesulfenamide based on exports of N-tert-Butyl-2-
benzothiazolesulfenamide; to the Committee on Finance.
DUTY DRAWBACK ON IMPORTS OF CBS AND TBBS
Mr. ROCKEFELLER. Mr. President, I rise today to introduce a bill that
would establish the authority to provide a duty drawback on imports of
two commercially interchangeable rubber vulcanization accelerators
known commonly as CBS and TBBS.
CBS and TBBS are the major primary accelerators used in the
production of tires and other rubber products. Both CBS and TBBS belong
to the same class and subclass of rubber vulcanization chemicals, and
can be used interchangeably with one another to perform the same
function and to achieve the same end results. They can be manufactured
by similar industrial processes using the same raw materials and
identical process steps; and for all practical purposes, it is not
possible to tell if CBS or TBBS were used in the final rubber product.
In short, the two chemicals are commercially interchangeable in both
function and use, and therefore, I believe they meet the specified
circumstances required under Section 202 of U.S. trade law to receive
duty drawback benefits based on a substitution basis.
More specifically, this bill is extremely important to a West
Virginia company, Flexsys, that produces both CBS and TBBS, and employs
230 West Virginians with an average annual salary of $42,000. Passage
of this bill will preserve these jobs in an increasingly competitive
chemical market, and will permit American-made products to compete more
effectively in world markets.
Because of the competitive nature of the chemical business, American
companies must constantly look for new opportunities to improve
efficiency, strengthen U.S. operations and cost position, and provide
benefits to their customers. I believe the Congress had these goals in
mind when we passed the duty drawback provisions in the Customs
Modification Act of 1993. Flexsys meets the conditions set forth under
the duty drawback provision that two products must be ``commercially
interchangeable'' to claim a drawback credit, and I urge my colleagues
to adopt this bill.
I ask unanimous consent that the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 827
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. ESTABLISHMENT OF DRAWBACK BASED ON COMMERCIAL
INTERCHANGEABILITY FOR CERTAIN RUBBER
VULCANIZATION ACCELERATORS.
(a) In General.--The United States Customs Service shall
treat the chemical N-cyclohexyl-2-benzothiazolesulfenamide
and the chemical N-tert-Butyl-2-benzothiazolesulfenamide as
``commercially interchangeable'' within the meaning of
section 313(j)(2) of the Tariff Act of 1930 (19 U.S.C.
1313(j)(2)) for purposes of permitting drawback under section
313 of the Tariff Act of 1930 (19 U.S.C. 1313).
(b) Applicability.--Subsection (a) shall apply with respect
to any entry, or withdrawal from warehouse for consumption,
of the chemical N-cyclohexyl-2-benzothiazolesulfenamide
before, on, or after the date of enactment of this Act, that
is eligible for drawback within the time period provided in
section 313(j)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1313(j)(2)(B)).
Mr. BYRD. Mr. President, I am pleased to add my name as an original
cosponsor of the bill introduced by Senator Rockefeller that would
provide the necessary authority to implement the trade drawback
allowance based on the commercially interchangeable feature of two
rubber vulcanization accelerators.
These two chemicals, commonly referred to as CBS and TBBS, are one-
and-the-same for all practical purposes. CBS and TBBS belong to the
same class and subclass of rubber vulcanization accelerator chemicals;
they can be manufactured by similar industrial processes using the same
active ingredients and identical process steps; and they generally
cannot be distinguished by informed analysts once used in the finished
rubber product. In short, CBS and TBBS are commercially interchangeable
in function and use--the specified circumstances required under Section
202 of U.S. trade law to receive duty drawback benefits on a
substitution basis.
By establishing the commercial interchangeability for CBS and TBBS,
duty drawback law can be implemented. Under duty drawback law, a
company would receive a refund of import duties--called a duty
drawback--paid by that company on its imports of CBS, based on the
exports of the company's production of TBBS, or vice-versa. In other
words, for every ton of TBBS that a company exports out of the United
States, the company would receive a refund of duties that it paid on a
ton of CBS that was imported into the United States. A drawback
allowance on the commercially interchangeable standard is granted on a
case-by-case authorization. The bill I join Senator Rockefeller in
cosponsoring would simply provide the commercially interchangeable CBS
and TBBS chemicals with the necessary authorization required by law.
This bill is vital to a West Virginia company, Flexsys, that produces
both CBS and TBBS. Flexsys provides 230 jobs in West Virginia with an
average annual salary of $42,000. Without the duty drawback, these jobs
are at risk due to the increasingly competitive chemical market. The
purpose of the drawback statutes is to permit American-made products to
compete more effectively in world markets. The Congress adopted
drawback provisions recognizing that U.S. manufacturers need the
authority to enable them to select the most advantageous production
methods. Flexsys meets the conditions set forth under drawback law, and
my review of Flexsys has convinced me that it is the type of company
that was in mind when this Body approved the drawback statutes.
In closing, I urge my colleagues to support our effort to aid
hardworking Americans through passage of this bill. Enactment of this
bill would fulfill the purpose of drawback law by advancing the
continued operations at Flexsys and, as a result, the utilization of
American labor and capital.
______