[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[Extensions of Remarks]
[Page 3795]
[From the U.S. Government Publishing Office, www.gpo.gov]




        RELIQUIDATION OF CERTAIN ENTRIES OF SELF-TAPPING SCREWS

                                 ______
                                 

                            HON. CURT WELDON

                            of pennsylvania

                    in the house of representatives

                        Thursday, March 4, 1999

  Mr. WELDON of Pennsylvania. Mr. Speaker, I rise today to introduce 
legislation to provide for the reliquidation for certain entries of 
self-tapping screws and to correct an error of omission made by the 
U.S. Customs Office in Philadelphia, PA.
  In August of 1993, a customs broker in my district entered industrial 
screws for liquidation at the Port of Philadelphia under the Harmonized 
Tariff Schedule provision 7318.12, a provision for wood screws. While 
the customs broker disagreed with the U.S. Customs Service's position 
to assess these screws under this provision, the broker did as directed 
to minimize friction. The company believed at that time that the screws 
fit a different description and that a lower rate of duty applied. As a 
result of the Customs' assessment, however, the rate of duty on the 
imported screws more than doubled from 6.2 percent to 12.5 percent.
  In 1996, the U.S. Court of International Trade agreed with the 
customs broker and ruled that the U.S. Customs Service was incorrect in 
its classification of the merchandise as a wood screw and that the 
importer was due a refund. While the U.S. Customs Service did pay a 
refund on some of the entries, a clerical error in their Philadelphia 
office prevented several entries from coming properly before the court 
for judgment. As a result, those entries were not included in the 
report even though they are subject to the same ruling.
  Mr. Speaker, I introduced this legislation last year with the 
intention of including it in the Miscellaneous Trade and Tariff 
Correction Act. It is my understanding that it was not included in that 
legislation in the last session because it was opposed by the Customs 
Service which cited that it posed an undue administrative burden on 
them. Currently, Mr. Speaker, if you do not include the interest on 
that money, the U.S. Customs Service has imposed $106,000 worth of 
burden on this local business even though the court has ruled against 
them on this issue.
  The U.S. Customs Service currently has more than $100,000 that it 
simply has no right to. With that in mind, I will look forward to 
having this bill included in legislation to correct similar problems, 
with the full support of the Administration.