[Congressional Record (Bound Edition), Volume 147 (2001), Part 6]
[Extensions of Remarks]
[Page 8113]
[From the U.S. Government Publishing Office, www.gpo.gov]



               INTRODUCTION OF DUTY DRAWBACK LEGISLATION

                                 ______
                                 

                            HON. KEVIN BRADY

                                of texas

                    in the house of representatives

                         Tuesday, May 15, 2001

  Mr. BRADY of Texas. Mr. Speaker, today I am introducing legislation 
to change the drawback and other trade laws in order to make their 
interpretation, administration and implementation less cumbersome for 
the U.S. Customs Service. More importantly, the provisions of this 
legislation will ease the regulatory and administrative burdens imposed 
by the current regulatory structure on U.S. companies by making them 
more competitive in the global marketplace when competing against 
foreign exports of similar or like products.
  Since this issue is very technical Mr. Speaker, let me briefly 
describe what duty drawback is and how this legislation will help. 
Specifically, duty drawback is the refund of 99% of the duty paid to 
Customs on an imported product when the imported product, or a product 
that is substantially similar or commercially interchangeable with the 
imported product, is later exported from the U.S.
  For example, a manufacturer of widgets may import a widget into the 
West Coast of the U.S., paying a duty of US $10. The same company then 
produces the same type or quality of widget in Texas and exports it to 
Mexico. The company may claim a refund of US $9 of the duty paid on the 
West Coast import as it is substantially similar to or commercially 
interchangeable with the exported widget.
  Therefore, drawback levels the playing field and allows U.S. 
companies to remain competitive in the international market when 
competing against foreign companies for export sales and in export 
markets.
  I urge my colleagues to support this legislation. I look forward to 
working with my colleagues to see it enacted into law.

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