[House Report 104-467]
[From the U.S. Government Publishing Office]
104th Congress Rept. 104-467
HOUSE OF REPRESENTATIVES
2d Session Part 1
_______________________________________________________________________
FEDERAL TEA TASTERS REPEAL ACT OF 1996
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February 29, 1996.--Ordered to be printed
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Mr. Archer, from the Committee on Ways and Means, submitted the
following
R E P O R T
[To accompany H.R. 2969]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 2969) to eliminate the Board of Tea Experts by
repealing the Tea Importation Act of 1897, having considered
the same, report favorably thereon without amendment and
recommend that the bill do pass.
H.R. 2969, ``FEDERAL TEA TASTERS REPEAL ACT OF 1996''
I. INTRODUCTION
A. Purpose and Summary
The ``Federal Tea Tasters Act of 1996'' would repeal the
Tea Importation Act of 1897 (21 U.S.C. 41 et seq.). The bill
would eliminate the Board of Tea Experts and related programs
which prohibit the importation of tea that is inferior in
purity, quality, and fitness for consumption to standards set
by the Secretary of Health and Human Services, as well as the
inspectional fee assessed on tea imports.
B. Background and Need for Legislation
The Tea Importation Act of 1897 (21 U.S.C. 41 et seq.)
requires each lot of imported tea to be sampled at the port of
entry to ensure that it meets standards recommended to the
Secretary of Health and Human Services by the Board of Tea
Experts. In fiscal year 1994, 209 million pounds of tea valued
at approximately $136 million were imported into the United
States.
Tea is the only food or beverage for which the Food and
Drug Administration (FDA) samples every lot upon entry for
comparison to a standard recommended by a federal board. The
Committee believes that there is no justification for tea being
held to a higher federal standard on behalf of the tea
industry, which should assume responsibility for the
competitive quality of its products.
C. Legislative History and Committee Action
On February 23, 1996, H.R. 2969, the ``Federal Tea Repeal
Act of 1996,'' was introduced by Mr. Klug and Mr. Kennedy. On
February 28, 1996, the Committee on Ways and Means ordered the
bill favorably reported, by voice vote, to the House, without
amendment.
II. EXPLANATION OF THE BILL
Present Law
The Tea Importation Act of 1897 prohibits the importation
of tea which is inferior in quality, purity, and fitness for
consumption to standards recommended by the Board of Tea
Experts. The Board of Tea Experts, required by the Act and
chartered under the Federal Advisory Committee Act (FACA), is a
permanent FDA advisory committee composed of seven members who
serve terms of one year buy may be reappointed for each of
three succeeding years, not to exceed a total of four years.
The Board meets once a year for two days, during which it
recommends standards, set by the Secretary of Health and Human
Services, for different teas. Board members' expenses to
participate in the annual standard-setting meeting are paid by
the tea industry. During the year following the meeting, FDA
chemists examine, taste, and smell imported teas and reject
teas which do not meet the annual standards recommended by the
Board. Importers of rejected tea may appeal decisions to the
Board of Tea Appeals, composed of three members appointed only
when appeals are pending. The Tea Importation Act requires each
importer of tea to pay a user fee collected by the Customs
Service to cover the costs of tasting, inspection, and grading,
in an amount which was increased under the Consolidated Omnibus
Budget Reconciliation Act of 1993 from 3.5 cents to 10 cents
per hundredweight. The full amount, however, was never
collected by the Customs Service.
Explanation of Provision
H.R. 2969 would repeal the Tea Importation Act of 1897 (21
U.S.C. 41 et seq.) and eliminate the Board of Tea Experts and
related programs which prohibit the importation of tea which is
inferior in purity, quality, and fitness for consumption to
standards set by the Secretary of Health and Human Services.
The FDA would still retain the authority under the Federal
Food, Drug, and Cosmetic Act of 1938 to examine and sample
imported tea for compliance with health and safety standards,
but it will not be compared with a quality standard set each
year.
Reason for Change
Tea is the only food or beverage for which the Food and
Drug Administration (FDA) samples every lot upon entry for
comparison to a standard recommended by a federal board. There
is no justification for tea being held to a higher federal
standard on behalf of the tea industry, which should assume
responsibility for the competitive quality of its products. The
Committee believes that the Board of Tea Experts is outdated
and the taxpayer's money could be more efficiently used
elsewhere.
Effective Date
The bill is effective upon enactment.
III. VOTES OF THE COMMITTEE
In compliance with clause 2(l)(2)(B) of rule XI of the
Rules of the House of Representatives, the following statements
are made concerning the votes of the Committee in its
consideration of H.R. 2969:
* * * * * * *
Motion To Report H.R. 2969
H.R. 2969 was ordered favorably reported, without
amendment, by voice vote on February 28, 1996, with a quorum
present.
IV. BUDGET EFFECTS OF THE BILL
A Committee Estimate of Budgetary Effects
In compliance with clause 7(a) of rule XIII of the Rules of
the House of Representatives, the following statement is made:
The estimate prepared by the Congressional Budget Office
(CBO) is included below.
CBO estimates that the bill results in decreased revenues
of $200,000 per year based on a Customs inspection fee of 10
cents per hundredweight of tea. It should be noted that the
Customs Service continues to collect 3.5 cents per
hundredweight. The actual decrease in revenues is therefore
$70,000 per year. However, discretionary savings should be
realized by reducing or reallocating FTE's to other functions,
resulting in overall savings to the federal government and
improved government operations.
B. Statement Regarding New Budget Authority and Tax Expenditures
In compliance with clause 2(l)(3)(B) of rule XI of the
Rules of the House of Representatives, the Committee states
that H.R. 2969 results in no new budget authority and a
decrease of $200,000 each year in revenues.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 2(l)(3)(C) if rule XI of the
Rules of the House of Representatives requiring a cost estimate
prepared by the Congressional Budget Office, the following
report prepared by CBO is provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 29, 1996.
Hon. Bill Archer,
Chairman, Committee on Ways and Means, House of Representatives,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
reviewed H.R. 2969, the Federal Tea Tasters Repeal Act of 1996,
as ordered reported by the Ways and Means Committee on February
28, 1996. CBO estimates that the bill would reduce governmental
receipts by less than $500,000 in each of the fiscal years 1996
through 2000. Because enacting H.R. 2969 would affect receipts,
pay-as-you-go procedures would apply to the bill. H.R. 2969
contains no intergovernmental or private sector mandates as
defined in Public Law 104-4 and would impose no direct costs on
state, local, or tribal governments.
The Tea Importation Act of 1897 requires tea to be examined
upon import of the United States, and establishes an
examination fee to be paid by the importer. H.R. 2969 repeals
the Tea Importation Act of 1897, eliminating the examination
requirement and the corresponding fee. Under Public Law 103-66,
signed August 10, 1993, the amount of the fee for the
examination of tea imports was raised from 3.5 cents per
hundred weight to 10 cents per hundred weight of tea imported.
However, due to an oversight in the Harmonized Tariff Schedule,
U.S. Customs has continued to charge a rate of 3.5 cents per
hundred weight of the tea, collecting about $70,000 in each of
the fiscal years 1994 and 1995. Based on information from
Customs, CBO assumes that this discrepancy will be corrected
and that Customs will begin collecting the fee at the statutory
rate of 10 cents per hundred weight. CBO estimates that
collections of the fee at the 10 cent rate would be
approximately $200,000 annually. Enacting H.R. 2969 would
therefore result in a negligible loss of revenue from fee
collections.
If you wish further details, please feel free to contact me
or your staff may wish to contact Stephanie Weiner.
Sincerely,
June E. O'Neill, Director.
V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
In compliance with clause 2(l)(3)(A) of rule XI of the
Rules of the House of Representatives, the Committee reports
that due to the non-controversial nature of the legislation, as
well as the bipartisan support, the Committee favorably
reported the bill without oversight hearings on this topic.
B. Summary of Findings and Recommendations of the Government Reform and
Oversight Committee
In compliance with clause 2(l)(3)(D) of rule XI of the
Rules of the House of Representatives, the Committee states
that no oversight findings or recommendations have been
submitted by the Committee on Government Reform and Oversight
regarding H.R. 2969.
C. Inflationary Impact Statement
In compliance with clause 2(l)(4) of rule XI of the Rules
of the House of Representatives, the Committee states that the
provisions of the bill are not expected to have an overall
inflationary impact on the economy.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, existing law in
which no change is proposed is shown in roman):
TEA IMPORTATION ACT
[Sec. 1. It shall be unlawful for any person or persons or
corporation to import or bring into the United States any
merchandise as tea which is inferior in purity, quality, and
fitness for consumption to the standards provided in section 43
of this title, and the importation of all such merchandise is
prohibited, except as provided in the Harmonized Tariff
Schedule of the United States.
[Sec. 2. On or before February 15 of each year, the Secretary
of Health, Education, and Welfare shall appoint a board, to
consist of seven members, each of whom shall be an expert in
teas, and who shall prepare and submit to him standard samples
of tea. The persons so appointed shall be at all times subject
to removal by the said Secretary and shall serve for the term
of one year. Vacancies in the said board occurring by removal,
death, resignation, or any other cause shall be forthwith
filled by the Secretary of Health, Education, and Welfare by
appointment, such appointee to hold for the unexpired term.
Said board shall appoint a presiding officer, who shall be the
medium of all communications to or from such board. Each member
of said board shall receive as compensation the sum of $50 per
annum, which, together with all necessary expenses while
engaged upon the duty herein provided, shall be paid by the
Secretary.
[Sec. 3. The Secretary of Health, Education, and Welfare,
upon the recommendation of the board of experts provided in
section 42 of this title, shall fix and establish uniform
standards of purity, quality, and fitness for consumption of
all kinds of teas imported into the United States, and shall
procure and deposit in the customhouses of the ports of New
York, Chicago, San Francisco, and such other ports as he may
determine, duplicate samples of such standards. Said
Administrator shall procure a sufficient number of other
duplicate samples of such standards to supply the importers and
dealers in tea at all ports desiring the same at cost. All
teas, or merchandise described as tea, of inferior purity,
quality, and fitness for consumption to such standards shall be
deemed within the prohibition of section 41 of this title.
[Sec. 4. On making entry at the customhouse of all teas, or
merchandise described as tea, imported into the United States,
the importer or consignee shall give a bond to the collector of
the port that such merchandise shall not be removed from the
warehouse until released by the collector, after it shall have
been duly examined with reference to its purity, quality, and
fitness for consumption. For the purpose of such examination
samples of each line in every invoice of tea shall be submitted
by the importer or consignee to the examiner, together with the
sworn statement of such importer or consignee that such samples
represent the true quality of each and every part of the
invoice and accord with the specifications therein contained;
or in the discretion of the Secretary of Health, Education, and
Welfare, such samples shall be obtained by the examiner and
compared by him with the standards established by sections 41-
46 and 47-50 of this title. In cases where said tea, or
merchandise described as tea, is entered at ports where there
is no qualified examiner as provided in section 46 of this
title, the consignee or importer shall in the manner aforesaid
furnish under oath a sample of each line of tea to the
collector or other revenue officer to whom is committed the
collection of duties, and said officer shall also draw or cause
to be drawn samples of each line in every invoice and shall
forward the same to a duly qualified examiner as provided in
said section. The bond required by this section shall also be
conditioned for the payment of all customhouse charges which
may attach to such merchandise prior to its being released or
destroyed (as the case may be) under the provisions of sections
41-46 and 47-50 of this title.
[Sec. 5. If, after an examination as provided in section 44
of this title, the tea is found by the examiner to be equal in
purity, quality, and fitness for consumption to the standards
provided in sections 41-44 of this title, and no reexamination
shall be demanded by the collector as provided in section 47 of
this title, a permit shall at once be granted to importer or
consignee declaring the tea free from the control of the
customs authorities; but if on examination such tea, or
merchandise described as tea, is found, in the opinion of the
examiner, to be inferior in purity, quality, and fitness for
consumption to the said standards the importer or consignee
shall be immediately notified, and the tea, or merchandise
described as tea, shall not be released by the customhouse,
unless on a reexamination called for by the importer or
consignee the finding of the examiner shall be found to be
erroneous. Should a portion of the invoice be passed by the
examiner, a permit shall be granted for that portion and the
remainder held for further examination, as provided in said
section 47.
[Sec. 6. In case the collector, importer, or consignee
shall protest against the finding of the examiner, the matter
in dispute shall be referred for decision to the United States
Board of Tea Appeals, to consist of three employees of the
Department of Health, Education, and Welfare to be designated
by the Secretary of Health, Education, and Welfare. If such
board shall, after due examination, find the tea in question to
be equal in purity, quality, and fitness for consumption to the
proper standards, a permit shall be issued by the collector for
its release and delivery to the importer; but if upon such
final reexamination by such board the tea shall be found to be
inferior in purity, quality, and fitness for consumption to the
said standards, the importer or consignee shall give a bond,
with security satisfactory to the collector, to export said
tea, or merchandise described as tea, out of the limits of the
United States within a period of six months after such final
reexamination; and if the same shall not have been exported
within the time specified, the collector, at the expiration of
that time, shall cause the same to be destroyed.
[Sec. 7. The examination provided for by sections 41-46 and
47-50 of this title shall be made by a duly qualified examiner
at a port where standard samples are established, and where the
merchandise is entered at ports where there is no qualified
examiner, the examination shall be made at that one of said
ports which is nearest the port of entry, and that for this
purpose samples of the merchandise, obtained in the manner
prescribed by section 44 of this title, shall be forwarded to
the proper port by the collector or chief officer at the port
of entry. In all cases of examination or reexamination of teas,
or merchandise described as tea, by examiners or the United
States Board of Tea Appeals under the provisions of this
chapter, the purity, quality, and fitness for consumption of
the same shall be tested according to the usage and customs of
the tea trade, including the testing of an infusion of the same
in boiling water, and, if necessary, chemical analysis.
[Sec. 8. In cases of reexamination of teas, or merchandise
described as teas, by the United States Board of Tea Appeals in
pursuance of the provisions of sections 41-46 and 47-50 of this
title, samples of the tea, or merchandise described as tea, in
dispute, for transmission to such board for its decision, shall
be put up and sealed by the examiner in the presence of the
importer or consignee if he so desires, and transmitted to such
board, together with a copy of the finding of the examiner,
setting forth the cause of condemnation and the claim or ground
of the protest of the importer relating to the same, such
samples, and the papers therewith, to be distinguished by such
mark that the same may be identified. The decision of such
board shall be in writing, signed by them, and transmitted,
together with the record and samples, within three days after
the rendition thereof, to the collector, who shall forthwith
furnish the examiner and the importer or consignee with a copy
of said decision or finding. The United States Board of Tea
Appeals shall be authorized to obtain the advice, when
necessary, of persons skilled in the examination of teas, who
shall each receive for his services in any particular case a
compensation not exceeding $5.
[Sec. 9. No imported teas which have been rejected by a
customs examiner or by the United States Board of Tea Appeals,
and exported under the provisions of sections 41-46 and 47-50
of this title, shall be reimported into the United States under
the penalty of forfeiture for a violation of this prohibition.
[Sec. 10. The Secretary of Health, Education, and Welfare
shall have the power to enforce the provisions of sections 41-
46 and 47-50 of this title by appropriate regulations.
[Sec. 11. That teas actually on shipboard for shipment to the
United States at the time of the passage of this Act shall not
be subject to the prohibition hereof, but the provisions of the
Act entitled ``An Act to prevent the importation of adulterated
and spurious teas,'' approved March second, eighteen hundred
and eighty-three, shall be applicable thereto.
[Sec. 12. That the Act entitled ``An Act to prevent the
importation of adulterated and spurious teas,'' approved March
second, eighteen hundred and eighty-three, is hereby repealed,
such repeal to take effect on the date on which this Act goes
into effect.
[Sec. 13. No tea or merchandise described as tea shall be
examined for importation into the United States, or released by
the Customs Service, under the Tea Importation Act unless the
importer or consignee of such tea or merchandise has paid,
before the examination, a fee in an amount equal to--
[(1) 10 cents for each hundred weight or fraction
thereof of the tea or merchandise; or
[(2) the approximate cost of the examinations;
whichever amount is less. Such fee shall be deposited into the
Treasury of the United States as miscellaneous receipts.]