[Senate Report 106-2]
[From the U.S. Government Publishing Office]




                                                        Calendar No. 14

106th Congress                                                   Report
  1st Session                    SENATE                           106-2

=======================================================================



 
       MISCELLANEOUS TRADE AND TECHNICAL CORRECTIONS ACT OF 1999
                                _______
                                

                February 3, 1999.--Ordered to be printed

                                _______


    Mr. Roth, from the Committee on Finance, submitted the following

                              R E P O R T

                         [To accompany S. 262]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Finance, to which was referred the bill 
(S. 262) to make technical corrections and miscellaneous 
amendments to the trade laws, having considered the same, 
reports favorably thereon and recommends that the bill do pass.

                             I. Background

    On February 17, 1998 and on April 9, 1998, Chairman Roth 
requested public comment on a package of technical corrections, 
temporary duty suspensions or reductions and other 
miscellaneous trade proposals introduced during the 105th 
Congress and referred to the Committee on Finance. S. 262, as 
amended, includes many of these bills which, based upon the 
comments submitted to the Committee on Finance by the U.S. 
Customs Service, the U.S. Department of Commerce, the U.S. 
International Trade Commission (ITC), the United States Trade 
Representative and other agencies, the Committee has found to 
be non-controversial.

                         II. Summary of S. 262

               Short Title; Table of Contents (Section 1)

    This section provides that this Act may be cited as the 
``Miscellaneous Trade and Technical Corrections Act of 1999.'' 
This section also provides a table of contents for the Act.

                Title I--Miscellaneous Trade Corrections

                   Clerical amendments (Section 1001)

Explanation of provision

    This provision makes clerical amendments to the trade laws 
to bring them up to date with current institutions and 
statutes.

Reason for change

    The provision is necessary to bring trade law into 
compliance with current terminology and statutes resulting from 
new agreements.

               Obsolete references to GATT (Section 1002)

Present law

    In many instances, the U.S. Code still references the 
General Agreement on Tariffs and Trade (GATT).

Explanation of provision

    The provision will update several provisions of the U.S. 
code to properly refer to the GATT and the World Trade 
Organization (WTO).

Reason for change

    On January 1, 1995, the WTO was created to administer the 
GATT 1994 and the Uruguay Round Agreements. Section 1002 
revises various provisions of the trade laws to reflect the 
establishment of the WTO and the Uruguay Round Agreements.

          Classification of 13-inch televisions (Section 1003)

Present law

    Televisions with an exact diagonal measurement of 33.02 cm 
(13 inches) are classifiable under HTS subheading 8528.12.20, 
which corresponds to a duty rate of Free. If the diagonal 
measurement exceeds 33.02 cm, but does not exceed 35.56 cm, 
then the televisions are classifiable under HTS subheading 
8528.12.24 with a corresponding duty rate of 5 percent.

Explanation of provision

    This provision corrects the classification of certain 
televisions in the HTS by specifying that ``13-inch'' 
television receivers, monitors, and picture tubes, and 
combination TV/VCRs, may have diagonal measurement up to 
``34.29 centimeters,'' which is 13 and one-half inches, in the 
HTS. This correction gives the Customs Service the authority it 
needs to apply lower tariffs on ``13-inch'' televisions up to 
34.29 centimeters.

Reason for change

    During the GATT Uruguay Round, the United States agreed to 
phase down U.S. tariffs on ``13-inch'' television receivers, 
monitors, and picture tubes, and on combination TV/VCRs, over 
the period from 1995 to 1999. Specifically, the United States 
agreed to reduce tariffs on receivers and monitors from 5 
percent to zero, on picture tubes from 15 percent to 7.5 
percent, and on combination TV/VCRs from 3.9 percent to zero. 
The term ``13-inch'' is a commercial designation employed by 
television manufacturers to describe television products whose 
picture tubes are approximately, but not exactly, 13 inches by 
diagonal measurement.
    The correction does not increase the number of television 
receivers, monitors, and picture tubes, and combination TV/
VCRs, on which lower tariffs were stipulated by the Uruguay 
Round Agreement. Accordingly, the provision is revenue-neutral 
under Congressional budget rules because the cost of the 
reductions in tariffs on these ``13-inch'' television products 
was paid for when the Uruguay Round implementing legislation 
was enacted.

Effective date

    This provision shall go into effect 15 days after the date 
of enactment of the Act.

  Title II--Temporary Duty Suspensions and Reductions and Other Trade 
                               Provisions

         SUBTITLE A: TEMPORARY DUTY SUSPENSIONS AND REDUCTIONS

    The provisions in Subtitle A consist of temporary 
suspensions and reductions of duties for a variety of products.

                          Chapter 1--Reference

                        Reference (Section 2001)

    This section provides that, except as otherwise expressly 
provided, whenever in this subtitle an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a chapter, 
subchapter, note, additional U.S. note, heading, subheading, or 
other provision, the reference shall be considered to be made 
to the Harmonized Tariff Schedule of the United States (19 
U.S.C. 3007).

               Chapter 2--Duty Suspensions and Reductions

               Diiodomethyl-p-tolylsulfone (Section 2101)

Present law

    Diiodomethyl-p-tolylsulfone (DMTS) is a fungicide/mideweide 
used in chaulks, adhesives, plastics and other purposes and is 
classifiable under HTS subheading 2930.90.10 and subject to an 
NTR duty rate of 9.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for DMTS as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Racemic dl-menthol (Section 2102)

Present law

    Racemic dl-menthol is a chemical used as a fragrance or 
flavor to produce pharmaceuticals, confections, and cigarettes. 
This product is classifiable under HTS subheading 2906.11.00 
and subject to an NTR duty rate of 2.1% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Racemic dl-menthol as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

    2,4-Dicholoro-5-hydrazino-phenol-monohydrochoride (Section 2103)

Present law

    2,4-Dicholoro-5-hydrazino-phenol-monohydrochoride is used 
in the manufacture of Azafenidin, an active ingredient in 
DuPont's ``Milestone'' herbicide 113. This product is 
classifiable under HTS subheading 2928.00.25 and subject to an 
NTR duty rate of 6.5 % ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2,4-Dicholoro-5-
hydrazino-phenol-monohydrochoride as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                           TAB (Section 2104)

Present law

    Phosphinic acid, [3-(acetyloxy)-3-cyanopropy]methyl-, butyl 
ester (ACM) is utilized in the manufacture of glufonsinate 
ammonium, a non-selective herbicide. This product is 
classifiable under HTS subheading 2931.00.90 and subject to an 
NTR duty rate of 3.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Phosphinic acid, [3-
(acetyloxy)-3-cyanopropy]methyl-, butyl ester as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                 Certain snowboard boots (Section 2105)

Present law (as of 1/01/98)

    Snowboard boots with uppers of textile material are 
classifiable under HTS subheading 6404.11.90 and subject to an 
NTR duty rate of 20% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for snowboard boots with 
uppers of textile material as temporarily duty free until 
December 31, 2001.

Reason for change

    This temporary duty suspension would make the tariff rate 
for this product conform with the rate for similar boots with 
uppers of leather or plastics. There is no domestic production 
of this product.

   Ethofumesate, singularly or in mixture with application adjuvants 
                             (Section 2106)

Present law

    2-Ethoxy-2, 3-dihydro-3, 3-dimethyl-5-
benzofuranylmethanesulfonate (ethofumesate) singularly or in 
mixtures with application adjutants is a chemical is used in 
the production of certain herbicides and is subject to an NTR 
duty rate of 6.5% ad valorem (if classifiable under HTS 
2932.99.08) and 6.5% ad valorem (if classifiable under HTS 
3808.30.15).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Eethoxy-2,3-dihydro-
3,3-dimethyl-5-benzofuranylmethanesulfonate (ethofumesate) 
singularly or in mixtures as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   3-Methoxycarbonylaminophenyl 3,-methylcarbanilate (phenmedipham) 
                             (Section 2107)

Present law

    3-Methoxycarbonylaminophenyl 3,-methylcarbanilate 
(phenmedipham) is a chemical used in the production of certain 
herbicides and is subject to an NTR duty rate of 9.7% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-
Methoxycarbonylaminophenyl 3,-methylcarbanilate (phenmedipham) 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

        3-Ethoxycarbonyl-aminophenyl-N-phenylcarbamate (desmedi-
                          pham) (Section 2108)

Present law

    3-Ethoxycarbonyl-aminophenyl-N-phenylcarbamate (desmedi-
pham) is subject to an NTR duty rate of 6.5% ad valorem. This 
chemical is used in the production of certain herbicides.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-Ethoxycarbonyl-
aminophenyl-N-phenylcarbamate (desmedipham) as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   2-Amino-4-(4-aminobenzoylamino)-benzenesulfonic acid, sodium salt 
                             (Section 2109)

Present law

    2-Amino-4-(4-aminobenzoylamino)-benzenesulfonic acid, 
sodium salt is an intermediate chemical used in the production 
of certain synthetic dyes and is classifiable under HTS 
subheading 2930.90.29 and subject to an NTR duty rate of 6.5% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-4-(4-amino
benzoylamino)-benzenesulfonic acid, sodium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

    5-Amino-N-(2-hydroxyethyl)-2,3-xylenesulfonamide (Section 2110)

Present law

    5-Amino-N-(2-hydroxyethyl)-2,3-xylenesulfonamide is an 
intermediate chemical used in the production of certain 
synthetic dyes and is classifiable under HTS 2935.00.95 and 
subject to an NTR duty rate of 1.8 cents/kg+12.2% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 5-Amino-N-(2-
hydroxyethyl)-2,3-xylenesulfonamide as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

    3-Amino-2,-(sulfatoethylsulfonyl) ethyl benzamide (Section 2111)

Present law

    3-Amino-2,-(sulfatoethylsulfonyl) ethyl benzamide is an 
intermediate chemical used in the production of certain 
synthetic dyes and is under HTS 2930.90.29 and subject to an 
NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-Amino-2,-
(sulfatoethylsulfonyl) ethyl benzamide as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

4-Chloro-3-nitrobenzenesulfonic acid, monopotassium salt (Section 2112)

    Present law 4-Chloro-3-nitrobenzenesulfonic acid, 
monopotassium salt is an intermediate chemical used mainly in 
the production of certain synthetic dyes and is classifiable 
under HTS 2904.90.47 and subject to an NTR duty rate of 
1.8 cents/kg+10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloro-3-
nitrobenzenesulfonic acid, monopotassium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                 2-Amino-5-nitrothiazole (Section 2113)

Present law

    2-Amino-5-nitrothiazole is classifiable under HTS 
2934.10.90 and subject to an NTR duty rate of 6.5% ad valorem. 
This product is an intermediate chemical used mainly in the 
production of certain synthetic dyes.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-nitrothiazole 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

           4-Chloro-3-nitrobenzesulfonic acid (Section 2114)

Present law

    4-Chloro-3-nitrobenzesulfonic acid is classifiable under 
HTS 2904.90.47 and subject to an NTR duty rate of 1.8 cents/
kg+10.7% ad valorem. This product is an intermediate chemical 
used mainly in the production of certain synthetic dyes.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloro-3-
nitrobenzesulfonic acid as temporarily duty free until December 
31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

         6-Amino-1,3-naphthalenedisulfonic acid (Section 2115)

Present law

    6-Amino-1,3-naphthalenedisulfonic acid is an intermediate 
chemical used mainly in the production of certain synthetic 
dyes and is classifiable under HTS 2921.45.90 and subject to an 
NTR duty rate of 1.2 cents/kg+12.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 6-Amino-1,3-naphthalene-
disulfonic acid as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  4-Chloro-3-nitrobenzenesulfonic acid, monosodium salt (Section 2116)

Present law

    4-Chloro-3-nitrobenzenesulfonic acid, monosodium salt is an 
intermediate chemical used mainly in the production of certain 
synthetic dyes and is classifiable under HTS 2904.90.40 and 
subject to an NTR duty rate of 9.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloro-3-
nitrobenzenesulfonic acid, monosodium salt as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          2-Methyl-5-nitrobenzenesulfonic acid (Section 2117)

Present law

    2-Methyl-5-nitrobenzenesulfonic acid is an intermediate 
chemical used mainly in the production of certain synthetic 
dyes and is classifiable under HTS subheading 2904.90.20 and 
subject to an NTR duty rate of 8.2% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Methyl-5-
nitrobenzenesulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  6-Amino-1,3-naphthalenedisulfonic acid, disodium salt (Section 2118)

Present law

    6-Amino-1,3-naphthalenedisulfonic acid, disodium salt is an 
intermediate chemical used mainly in the production of certain 
synthetic dyes and is classifiable under HTS subheading 
2921.45.90 and subject to an NTR duty rate of 1.2 cents/kg + 
12.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 6-Amino-1,3-naphthalene-
disulfonic acid, disodium salt as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    2-Amino-p-cresol (Section 2119)

Present law

    2-Amino-p-cresol is an intermediate chemical used mainly in 
the production of certain synthetic dyes and is classifiable 
under HTS subheading 2922.29.10 and subject to an NTR duty rate 
of 5.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-p-cresol as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

               6-Bromo-2,4-dinitroaniline (Section 2120)

Present law

    6-Bromo-2,4-dinitroaniline is an intermediate chemical used 
mainly in the production of certain synthetic dyes and is 
classifiable under HTS subheading 2921.42.90 and subject to an 
NTR duty rate of 1.2 cents/kg + 12.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 6-Bromo-2,4-
dinitroaniline as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  7-Acetylamino-4-hydroxy-2-naphthalenesulfonic acid, monosodium salt 
                             (Section 2121)

Present law

    7-Acetylamino-4-hydroxy-2-naphthalenesulfonic acid, 
monosodium salt is an intermediate chemical used mainly in the 
production of certain synthetic dyes and is classifiable under 
HTS subheading 2924.29.70 and subject to an NTR duty rate of 
10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 7-Acetylamino-4-hydroxy-
2-naphthalenesulfonic acid, monosodium salt as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                       Tannic acid (Section 2122)

Present law

    Tannic acid is an intermediate chemical used mainly in the 
production of certain synthetic dyes and is classifiable under 
HTS subheading 3201.90.10 and subject to an NTR duty rate of 
1.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for tannic acid as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  2-Amino-5-nitrobenzenesulfonic acid, monosodium salt (Section 2123)

Present law

    2-Amino-5-nitrobenzenesulfonic acid, monosodium salt is an 
intermediate chemical used mainly in the production of certain 
synthetic dyes and is classifiable under 2921.42.90 and subject 
to an NTR duty rate of 1.2 cents/kg+12.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-
nitrobenzenesulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 2-Amino-5-nitrobenzenesulfonic acid, monoammonium salt (Section 2124)

Present law

    2-Amino-5-nitrobenzenesulfonic acid, monoammonium salt is 
an intermediate chemical used mainly in the production of 
certain synthetic dyes and is classifiable under HTS subheading 
2921.42.90 and subject to an NTR duty rate of 1.2 cents/
kg+12.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-
nitrobenzenesulfonic acid, monoammonium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

           2-Amino-5-nitrobenzenesulfonic acid (Section 2125)

Present law

    2-Amino-5-nitrobenzenesulfonic acid is an intermediate 
chemical used mainly in the production of certain synthetic 
dyes and is classifiable under HTS subheading 2921.42.90 and 
subject to an NTR duty rate of 1.2 cents/kg+12.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-
nitrobenzenesulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  3-(4,5-Dihydro-3-methyl-5-oxo-1H-pyrazol-1-yl)benzenesulfonic acid 
                             (Section 2126)

Present law

    3-(4,5-Dihydro-3-methyl-5-oxo-1H-pyrazol-1-
yl)benzenesulfonic acid is an intermediate chemical used mainly 
in the production of certain synthetic dyes and is classifiable 
under HTS subheading 2933.19.43 and subject to an NTR duty rate 
of 1.8 cents/kg+11.4% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-(4,5-Dihydro-3-methyl-
5-oxo-1H-pyrazol-1-yl)benzenesulfonic acid as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid (Section 2127)

Present law

    4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid is 
an intermediate chemical used mainly in the production of 
certain synthetic dyes and is classifiable under HTS subheading 
2924.29.75 and subject to an NTR duty rate of 1.8 cents/
kg+12.3% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Benzoylamino-5-hydroxy-
2,7-naphthalenedisulfonic acid as temporarily duty freeuntil 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid, monosodium 
                          salt (Section 2128)

Present law

    4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid, 
monosodium salt is an intermediate chemical used mainly in the 
production of certain synthetic dyes and is classifiable under 
HTS subheading 2924.29.70 and subject to an NTR duty rate of 
10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Benzoylamino-5-hydroxy-
2,7-naphthalenedisulfonic acid, monosodium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 151 (Section 2129)

Present law

    Pigment Yellow 151 is an organic pigment primarily used in 
the automotive coating industry. It is an environmentally 
benign substitute for comparable inorganic pigments using heavy 
metal chemicals such as cadmium, chrome, lead, and molybdenum, 
which are considered toxic, and is classifiable under HTS 
subheading 3204.17.90 and subject to an NTR duty rate of 13.2% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 151 as 
temporarily lowering the duty to 6.4% until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 181 (Section 2130)

Present law

    Pigment Yellow 181 is an organic pigment primarily used in 
the coloration of plastic processed over 200 degrees Centigrade 
and is classifiable under HTS subheading 3204.17.60 and subject 
to an NTR duty rate of 10.8% ad valorem. It is an 
environmentally benign substitute for comparable inorganic 
pigments using heavy metal chemicals such as cadmium, chrome, 
lead, and molybdenum, which are considered toxic.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 181 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 154 (Section 2131)

Present law

    Pigment Yellow 154 is an organic pigment primarily used in 
the automotive coating industry. It is an environmentally 
benign substitute for comparable inorganic pigments using heavy 
metal chemicals such as cadmium, chrome, lead, and molybdenum, 
which are considered toxic, and is classifiable under HTS 
subheading 3204.17.60 and subject to an NTR duty rate of 10.8% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 154 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 175 (Section 2132)

Present law

    Pigment Yellow 175 is an organic pigment primarily used in 
the automotive coating industry. It is an environmentally 
benign substitute for comparable inorganic pigments using heavy 
metal chemicals such as cadmium, chrome, lead, and molybdenum, 
which are considered toxic andis classifiable under HTS 
subheading 3204.17.60 and subject to an NTR duty rate of 10.8% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 175 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 180 (Section 2133)

Present law

    Pigment Yellow 180 is a yellow pigment approved by FDA for 
indirect food contact and is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 10.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 180 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                   Pigment Yellow 191 (Section 2134)

Present law

    Pigment Yellow 191 is a yellow pigment approved by FDA for 
indirect food contact and is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 10.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 191 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 187 (Section 2135)

Present law

    Pigment Red 187 is a red pigment approved by FDA for 
indirect food contact and is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 10.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 187 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 247 (Section 2136)

Present law

    Pigment Red 247 is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 10.8% ad valorem. 
This pigment is used in the coloration of plastics that are 
processed at temperatures exceeding 200+ C.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 247 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                    Pigment Orange 72 (Section 2137)

Present law

    Pigment Orange 72 is used in the coloration of plastics 
that are processed at temperatures exceeding 200+ C. and is 
classifiable under HTS subheading 3204.17.60 and subject to an 
NTR duty rate of 10.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Orange 72 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumer

                    Pigment Yellow 16 (Section 2138)

Present law

    Pigment Yellow 16 is used in industrial and agricultural 
coating and is classifiable under HTS subheading 3204.17.04 and 
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 16 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 185 (Section 2139)

Present law

    Pigment Red 185 is pigment is primarily used in the 
coloration of plastics that are processed at temperatures 
exceeding 200 deg. C and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 185 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 208 (Section 2140)

Present law

    Pigment Red 208 is primarily used in the coloration of 
plastics that are processed at temperatures exceeding 200 deg. 
C and is classifiable under HTS subheading 3204.17.04 and 
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 208 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 188 (Section 2141)

Present law

    Pigment Red 188 is a synthetic organic pigment primarily 
used in agricultural and industrial coating applications and is 
classifiable under HTS subheading 3204.17.04 and subject to an 
NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 188 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

           2,6-Dimethyl-m-dioxan-4-ol acetate (Section 2142)

Present law

    2,6-Dimethyl-m-dioxan-4-ol acetate (``DXN'') is a 
preservative used primarily in the manufacture and/or 
processing of industrial water-based products to inhibit 
microbial growth in textile manufacturing and for the 
preservation of cement admixtures and is classifiable under HTS 
subheading 2932.99.90 and subject to an NTR duty rate of 3.7% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2,6-Dimethyl-m-dioxan-4-
ol acetate as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

         -Bromo--nitrostyrene (Section 2143)

Present law

    -Bromo--nitrostyrene (``BNS'') is a 
preservative that controls the growth of bacteria and fungi in 
the production of high quality paper and is classifiable under 
HTS subheading 2904.90.47 and subject to an NTR duty rate of 
1.8 cents/kg+10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for -Bromo-
-nitrostyrene as temporarily duty free until December 
31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                    Textile machinery (Section 2144)

Present law

    Ink jet textile printing machinery is classifiable under 
HTS subheading 8443.51.10 and subject to an NTR duty rate of 
2.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for ink jet textile printing 
machinery as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                      Deltamethrin (Section 2145)

Present law

    (S)--cyano-3-phenoxybenzyl (1R, 3R)-3-(2,2-
dibromovinyl)-2,2- dimethylcyclopropanecarboxylate 
(deltamethrin) in bulk or in forms or packings for retail sale 
is classifiable and subject to an NTR duty rate of 9.5% ad 
valorem (for HTS subheading 2926.90.30) or 6.5% ad valorem (for 
HTS subheading 3808.10.25). Deltamethrin is a synthetic organic 
chemical used as the active ingredient in certain insecticides

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for deltamethrin as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                     Diclofop-methyl (Section 2146)

Present law

    Diclofop-methyl is classifiable and subject to an NTR duty 
rate of 10% ad valorem (for HTS subheading 2918.90.20) or 6.5% 
ad valorem (for HTS subheading 3808.30.15). The product is used 
as a post emergence herbicide.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by striking heading 9902.30.16 and inserting a new 
subheading for Diclofop-methyl as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                       Resmethrin (Section 2147)

Present law

    ([5-(phenylmethyl)-3-furanyl]methyl 2,2-dimethyl-3-(2-
methyl-1-propenyl) cyclopropanecarboxylate (resmethrin) is 
classifiable under HTS subheading 2932.19.10 and subject to an 
NTR duty rate of 6.5% ad valorem. Resmethrin is the active 
ingredient in certain insecticides.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for resmethrin as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          N-phenyl-N,-1,2,3-thiadiazol-5-ylurea (Section 2148)

Present law

    N-phenyl-N,-1,2,3-thiadiazol-5-ylurea (thidiazuron) is a 
plant growth regulator used for the defoliation of cotton and 
is classifiable and subject to an NTR duty rate of 10% ad 
valorem (for HTS subheading 2934.90.15) or 6.5% ad valorem (for 
HTS subheading 3808.30.15).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by striking heading 9902.30.17 and inserting a new 
subheading for N-phenyl-N,-1,2,3-thiadiazol-5-ylurea 
(thidiazuron) as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          (1R,3S)3[(1,RS)(1,,2,,2,,2,,-Tetrabromoethyl)]-2,2-
dimethylcyclopropanecarboxylic acid (S)--cyano-3-phenoxybenzyl 
                          ester (Section 2149)

Present law

    (1R,3S)3[(1,RS)(1,,2,,2,,2,,-Tetrabromoethyl)]-2,2-
dimethylcyclopropanecarboxylic acid (S)--cyano-3-
phenoxybenzyl ester in bulk or in forms or packages for retail 
sale (tralomethrin) is the active ingredient in certain 
insecticides and is classifiable and subject to an NTR duty 
rate of 9.5% ad valorem (for HTS subheading 2926.90.30) or 6.5% 
ad valorem (for HTS subheading 3808.10.25).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for tralomethrin as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 109 (Section 2150)

Present law

    Pigment Yellow 109 is used in the production of plastics, 
specialty printing inks, and coatings (e.g. automotive 
refinishing) and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 109 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 110 (Section 2151)

Present law

    Pigment Yellow 110 is used in the production of plastic, 
specialty printing inks, and coatings (i.e. automotive 
refinishing) and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 110 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                     Pigment Red 177 (Section 2152)

Present law

    Pigment Red 177 is used in the production of plastic, 
specialty printing inks, and coatings (i.e. automotive 
refinishing) and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 177 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

               Textile printing machinery (Section 2153)

Present law

    The textile printing machinery covered under this provision 
is classifiable under HTS subheading 8443.59.10 and subject to 
an NTR duty rate of 2.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain textile machinery 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

  Substrates of synthetic quartz or synesthetic fused silica (Section 
                                 2154)

Present law

    Substrates of synthetic quartz or synesthetic fused silica 
is classifiable under HTS subheading 7006.00.40 and subject to 
an NTR duty rate of 4.9% ad valorem. This is a high-purity 
glass which is transformed into photomask blanks which are 
ultimately used to project circuit patterns to manufacture 
semiconductors.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for substrates of synthetic 
quartz or synesthetic fused silica as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

        2-Methyl-4,6-bis[(octylthio)methyl]phenol (Section 2155)

Present law

    2-Methyl-4,6-bis[(octylthio)methyl]phenol is a synthetic 
organic chemical used mainly as an antioxidant and processing 
stabilizer in the manufacture of rubber and elastomeric 
products. and is classifiable under HTS subheading 2930.90.29 
and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Methyl-4,6-
bis[(octylthio)methyl]phenol as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   2-Methyl-4,6 bis[octylthio)methyl]phenol; epoxidized triglyceride 
                             (Section 2156)

Present law

    2-Methyl-4,6 bis[octylthio)methyl]phenol; epoxidized 
triglyceride is a synthetic organic chemical used mainly as an 
antioxidant and processing stabilizer in the manufacture of 
rubber and elastomeric products and is classifiable under HTS 
subheading 3812.30.60 and subject to an NTR duty rate of 
1.8 cents/kg+10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Methyl-4,6 
bis[octylthio)methyl]phenol; epoxidized triglyceride as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

     4-[[4,6-Bis(octylthio)-1,3,5-triazin-2-yl]amino]-2,6-bis(1,1-
                  dimethylethyl)phenol (Section 2157)

Present law

    4-[[4,6-Bis(octylthio)-1,3,5-triazin-2-yl]amino]-2,6-
bis(1,1-dimethylethyl)phenol is a synthetic organic chemical 
used mainly as an antioxidant and processing stabilizer in the 
manufacture of rubber, adhesives and elastomeric products and 
is classifiable under HTS subheading 2933.69.60 and subject to 
an NTR duty rate of 3.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-[[4,6-Bis(octylthio)-
1,3,5-triazin-2-yl]amino]-2,6-bis(1,1-dimethylethyl)phenol 
astemporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          (2-Benzothiazolythio)butanedioic acid (Section 2158)

Present law

    (2-Benzothiazolythio)butane-dioic acid is a synthetic 
organic chemical used as a corrosion inhibitor in the 
manufacture of heavy duty maintenance coatings, aircraft 
coatings, and dry fall coatings and is classifiable under HTS 
subheading 2934.20.40 and subject to an NTR duty rate of 10% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for (2-
Benzothiazolythio)butane-dioic acid as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

Calcium bis[monoethyl (3,5-di-tert-butyl-4-hydroxybenzyl) phosphonate] 
                             (Section 2159)

Present law

    Calcium bis[monoethyl (3,5-di-tert-butyl-4-hydroxybenzyl) 
phosphonate] is a synthetic organic chemical used as an 
antioxidant and catalyst and is classifiable under HTS 
subheading 2931.00.30 and subject to an NTR duty rate of 10% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for calcium bis[monoethyl 
(3,5-di-tert-butyl-4-hydroxybenzyl) phosphonate] as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

       4-Methyl--oxo-benzenbutanoic acid compd. with 4-
                  ethylmorpholine (2:1) (Section 2160)

Present law

    4-Methyl--oxo-benzenbutanoic acid compd. with 4-
ethylmorpholine (2:1) is classifiable under HTS 3824.90.28 and 
subject to an NTR duty rate of 1.8 cents/kg+10% ad valorem. 
This is a synthetic organic compound used as a corrosion 
inhibitor in the manufacture of direct to metal mono-coats 
(i.e., rail cars and maintenance coatings).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Methyl--oxo-
benzenbutanoic acid compd. with 4-ethylmorpholine (2:1) as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Weaving machines (Section 2161)

Present law

    Certain weaving machines (looms), shuttleless type, for 
weaving fabrics of a width exceeding 30cm, but not exceeding 
4.9 meters and are classifiable under HTS 8446.30.50 and 
subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain weaving machines 
covered under this provision to reduce the tariff rate to 3.3% 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                Certain weaving machines (Section 2162)

Present law

    Power weaving machines (looms), shuttle type, for weaving 
fabrics of a width exceeding 30 cm, but not exceeding 4.9 
meters are classifiable under HTS 8446.21.50 and subject to an 
NTR duty rate of 3.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain power weaving 
machines (looms) as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                          DEMT (Section 2163)

Present law

    DEMT (N,N-diethyl-m-toluidine) is classifiable under HTS 
subheading 2921.43.80 and subject to an NTR duty rate of 
1.2 cents/kg+12.6% ad valorem. DEMT is an intermediate chemical 
used in the production of certain color couplers for 
photographic film.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by striking heading 9902.32.12 and inserting a new 
subheading for DEMT as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  Benzenepropanal, 4-(1,1-dimethylethyl)-alpha-methyl- (Section 2164)

Present law

    Benzenepropanal, 4-(1,1-dimethylethyl)-alpha-methyl- is 
classifiable under HTS subheading 2912.29.60 and subject to an 
NTR duty rate of 8.4% ad valorem. This product is an aroma 
chemical used principally as a raw material in the manufacture 
of fragrances for fabric softeners and detergents.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Benzenepropanal, 4-(1,1-
dimethylethyl)-alpha-methyl- to reduce to 6% until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

2H-3,1-Benzoxazin-2-one, 6-chloro-4-(cyclopropylethynyl)-1,4-dihydro-4-
                   (trifluoromethyl)- (Section 2165)

Present law

    2H-3,1-Benzoxazin-2-one, 6-chloro-4-(cyclopropylethynyl)-
1,4-dihydro-4-(trifluoromethyl)- is classifiable and subject to 
an NTR duty rate of 6.5% ad valorem under 2934.90.30. This 
chemical is the active pharmaceutical ingredient in an anti-
viral (anti-HIV and anti-AIDS) drug.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2H-3,1-Benzoxazin-2-one, 
6-chloro-4-(cyclopropylethynyl)-1,4-dihydro-4- 
(trifluoromethyl)- as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                      Tebufenozide (Section 2166)

Present law

    N-tert-butyl-N,-(4-ethylbenzoyl)-3,5-
dimethylbenzoylhydrazide (tebufenozide) is classifiable under 
HTS subheading 2928.00.25 and subject to an NTR duty rate of 
6.5% ad valorem. This product, which is also known as 
tebufenozide, is a narrow spectrum insecticide which targets 
lepidopterous insects--those whose larvae are caterpillars.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for N-tert-butyl-N,-(4-
ethylbenzoyl)-3,5-dimethylbenzoylhydrazide (tebufenozide) as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                      Halofenozide (Section 2167)

Present law

    Benzoic acid, 4-chloro-2-benzoyl-2-(1,1-dimethylethyl) 
hydrazide and is classifiable underHTS subheading 2928.00.25 
and subject to an NTR duty rate of 6.5% ad valorem. This product, which 
is also known as Halofenozide, is a narrow spectrum insecticide which 
targets, and is toxic only to a specific type of insect found on green 
plant matter of turf grasses and ornamental plants.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for benzoic acid, 4-chloro-2-
benzoyl-2-(1,1-dimethylethyl) hydrazide as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

            Certain organic pigments and dyes (Section 2168)

Present law

    Certain organic luminescent pigments and dyes, for security 
applications, excluding daylight florescent pigments and dyes, 
are classifiable under HTS subheading 3204.90.00 and subject to 
an NTR duty rate of 5.9% ad valorem. These luminescent complex 
organic chemicals are often designed (on a proprietary basis) 
for a specific use in products that require security and anti-
counterfeiting technology (e.g. stock certificates and credit 
cards).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for organic luminescent 
pigments and dyes as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    4-Hexylresorcinol (Section 2169)

Present law

    4-Hexylresorcinol is classifiable under HTS subheading 
2907.29.90 and subject to an NTR duty rate of 5.5% ad valorem. 
This product is used in a variety of pharmaceutical and 
cosmetic applications including throat lozenges and topical 
antiseptics.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Hexylresorcinol as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

Certain sensitizing dyes (Section 2170)

Present law

    Polymethine photo-sensitizing dyes is classifiable under 
certain HTS subheadings. These dyes improve the spectral 
response photo-sensitive emulsion used on film.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Polymethine photo-
sensitizing dyes as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

Skating boots for use in manufacture of in-line roller skates (Section 
                                 2171)

Present law

    Skating boots for use in manufacture of in-line roller 
skates are classifiable under HTS subheading 6402.19.90, 
6403.19.40, 6403.19.70 and 6404.11.90 and subject to an NTR 
duty rate ranging from Free to 20% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for such skating boots as 
temporarily duty free until December 31, 2001.

Reason for change

    Skating boots used for in-line skates are subject to duties 
ranging from Free to 20%. However, imports of completely-
assembled in-line skates containing such boots enter free of 
duty, resulting in a tariff inversion which gives importers of 
in-line skates a competitive edge over U.S. producers of in-
line skates. This provision would correct that tariff inversion 
and encourage U.S. production of in-line skates. There is 
negligible domestic production of this product.

       Dibutylnapthalenesulfonic acid, sodium salt (Section 2172)

Present law

    A surface active preparation containing 30% or more by 
weight of dibutylnapthalenesulfonic acid, sodium salt is used 
to manufacture end-use herbicides and is classifiable under HTS 
subheading 3402.90.30 and subject to an NTR duty rate of 4% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for surface active 
preparation containing 30% or more by weight of 
dibualkylnapthalenesulfonic acid, sodium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

  O-(6-Chloro-3-phenyl-4-pyridazinyl)-S-octyl-carbonothioate (Section 
                                 2173)

Present law

    O-(6-Chloro-3-phenyl-4-pyridazinyl)-S-octyl-carbonothioate 
is classifiable under HTS subheading 3808.30.15 and subject to 
an NTR duty rate of 6.5% ad valorem. This product is a 
synthetic organic chemical used as an active ingredient in the 
manufacture of an herbicide for corn to control kochia and 
Russian thistle.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for O-(6-Chloro-3-phenyl-4-
pyridazinyl)-S-octylo-carbonothioate as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

     4-Cyclopropyl-6-methyl-2-phenylaminopyrimidine (Section 2174)

Present law

    4-Cyclopropyl-6-methyl-2-phenylaminopyrimidine is 
classifiable under HTS subheading 2933.59.15 and subject to an 
NTR duty rate of 9.5% ad valorem. This product is a synthetic 
organic chemical used as an active ingredient in the 
manufacture of fungicide formulations to control insects and 
mites in fruits, nuts, and cotton.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Cyclopropyl-6-methyl-2-
phenylaminopyrimidine as temporarily duty free until December 
31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   O,O-Dimethyl-S-[5-methoxy-2-oxo-1,3,4-thiadiazol-3(2H)-yl-methyl]-
                     dithiophosphate (Section 2175)

Present law

    O,O-Dimethyl-S-[5-methoxy-2-oxo-1,3,4-thiadiazol-3(2H)-yl-
methyl]-dithiophosphate is classifiable under HTS subheading 
2934.90.90 and subject to an NTR duty rate of 6.5% ad valorem. 
This product is a synthetic organic chemical used as an active 
ingredient in the manufacture of fungicide formulations to 
control insects and mites in fruits, nuts, and cotton.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for O,O-Dimethyl-S-[5-
methoxy-2-oxo-1, 3, 4-thiadiazol-3(2H)-yl-methyl]-
dithiophosphate as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

      Ethyl [2-(4-phenoxyphenoxy) ethyl] carbamate (Section 2176)

Present law

    Ethyl [2-(4-phenoxyphenoxy) ethyl] carbamate is 
classifiable under HTS subheading 2924.10.80 and subject to an 
NTR duty rate of 6.5% ad valorem. This product is a synthetic 
organic chemical used to manufacture insect growth regulators.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Ethyl [2-(4-
phenoxyphenoxy) ethyl] carbamate as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   [(2S,4R)/(2R,4S)]/[(2R,4R)/(2S,4S)]-1-[2-[4-(4-Chloro-phenoxy)-2-
  chlorophenyl]-4-methyl-1,3- dioxolan-2-yl-methyl]-1H-1,2,4-triazole 
                             (Section 2177)

Present law

    [(2S,4R)/(2R,4S)]/[(2R,4R)/(2S,4S)]-1-[2-[4-(4-Chloro-
phenoxy)-2-chlorophenyl]-4-methyl- 1,3-dioxolan-2-yl-methyl]-
1H-1,2,4-triazole is classifiable under HTS subheading 
2934.90.12 and subject to an NTR duty rate of 8.8% ad valorem. 
The chemical is an active ingredient used to formulate 
fungicide for use in seed treatments for cereals.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for [(2S,4R)/(2R,4S)]/
[(2R,4R)/(2S,4S)]-1-[2-[4-(4-Chloro-phenoxy)-2-chlorophenyl]-4- 
methyl-1,3-dioxolan-2-yl-methyl]-1H-1,2,4-triazole as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

        2,4-Dichloro-3,5-dinitrobenzotrifluoride (Section 2178)

Present law

    2,4-Dichloro-3,5-dinitrobenzotrifluride is classifiable 
under HTS subheading 2910.90.20 and subject to an NTR duty rate 
of 5.5% ad valorem. This product is a synthetic organic 
chemical used as an intermediate in the production of a 
herbicide active ingredient used to control weeds and turf 
grass.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2,4-Dichloro-3,5-
dinitrobenzotrifluride as temporarily duty free until December 
31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

     2-Chloro-N-[2,6-dinitro-4-(trifluoromethyl) phenyl]-N-ethyl-6-
                fluorobenzenemethanamine (Section 2179)

Present law

    2-Chloro-N-[2,6-dinitro-4-(trifluoromethyl) phenyl]-N-
ethyl-6-fluorobenzenemethanamine is classifiable under HTS 
subheading 2921.49.45 and subject to an NTR duty rate of 10% ad 
valorem. This chemical is an active ingredient used to 
formulate a growth regulator to control suckers (undesirable 
side-shoots) in tobacco plants.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Chloro-N-[2,6-dinitro-
4-(trifluoromethyl) phenyl]-N-ethyl-6- fluorobenzenemethanamine 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                      Chloroacetone (Section 2180)

Present law

    Chloroacetone is classifiable under HTS subheading 
2914.19.00 and subject to an NTR duty rate of 4.0% ad valorem. 
Chloroacetone is a raw material used in the production of a 
chemical intermediate for production of an herbicide (weed-
killer) used for various crops.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for chloroacetone as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

    Acetic acid, [(5-chloro-8-quinolynyl)oxy]-, 1-methylhexyl ester 
                             (Section 2181)

Present law

    Acetic acid, [(5-chloro-8-quinolinyl)oxy]-, 1-methylhexyl 
ester is classifiable under HTS subheading 2933.40.30 and 
subject to an NTR duty rate of 8.8% ad valorem. The chemical is 
an intermediate used as a safener in the manufacture of an 
herbicide to control wild oats, foxtail and pigeon grass in 
wheat.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Acetic acid, [(5-chloro-
8-quinolinyl)oxy]-, 1-methylhexyl ester as temporarily dutyfree 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

 Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-pyridinyl)oxy]phenoxy]-, 2-
                     propynyl ester (Section 2182)

Present law

    Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-
pyridinyl)oxy]phenoxy]-, 2-propynyl ester and is classifiable 
under HTS subheading 2933.39.25 and subject to an NTR duty rate 
of 10% ad valorem. This chemical is an active ingredient in the 
manufacture of herbicides to control wild oats, foxtail, and 
pigeon grass in wheat.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Propanic acid, 2-[4-[(5-
chloro-3-fluoro-2-pyridinyl)oxy]phenoxy]-, 2-propynyl ester as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                    Mucochloric acid (Section 2183)

Present law

    Mucochloric acid is classifiable under HTS subheading 
2918.30.90 and subject to an NTR duty rate of 3.7% ad valorem. 
The chemical is a raw material used in the production of an 
active ingredient produced in the U.S. to make a herbicide for 
control of a unique spectrum of broadleaf weeds and grasses in 
cotton, alfalfa, citrus, trees, nuts, and vines.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                 Certain rocket engines (Section 2184)

Present law

    Dual thrust chamber rocket engines each having maximum 
static sea level thrust exceeding 800,000 lbs. and nozzle exit 
diameters exceeding 50 inches are classifiable under HTS 
subheading 8412.10.00 and subject to an NTR duty rate of 1% ad 
valorem. These rocket engines are liquid fuel engines designed 
to propel specific launch vehicles into space.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for dual thrust chamber 
rocket engines each having maximum static sea level thrust 
exceeding 800,000 lbs. and nozzle exit diameters exceeding 50 
inches as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 144 (Section 2185)

Present law

    Pigment Red 144 is a synthetic organic chemical used as a 
high performance pigment in ink, paint, plastic, and fiber 
applications and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 144 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Pigment Orange 64 (Section 2186)

Present law

    Pigment Orange 64 is a synthetic organic chemical used as a 
high performance pigment in ink, plastic, fiber and coating 
industry, and is classifiable and subject to an NTR duty rate 
of 10.8% ad valorem under 3204.17.60.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Orange 64 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Pigment Yellow 95 (Section 2187)

Present law

    Pigment Yellow 95 is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.5% ad valorem. 
This product is a synthetic organic chemical used as a high 
performance pigment; it has FDA approval for food-contact 
packaging applications.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 95 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Pigment Yellow 93 (Section 2188)

Present law

    Pigment Yellow 93 is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.5% ad valorem. 
This product is a synthetic organic chemical used as a high 
performance pigment with applications in ink, coating, 
plastics, and fiber industries.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 93 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 (S)-N-[[5-[2-(2-Amino-4, 6, 7, 8-tetrahydro-4-oxo-1H-pyrimido[5, 4-b] 
  [1,4]thiazin-6-yl]ethyl-2-thienyl]carbonyl]-L-glutamic acid diethyl 
                          ester (Section 2189)

Present law

    (S)-N-[[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-
pyrimido[5,4-b] [1,4]thiazin-6-yl]ethyl-2-thienyl]carbonyl]-L-
glutamic acid diethyl ester is classifiable under HTS 
subheading 2934.90.90 and subject to an NTR duty rate of 6.5% 
ad valorem. This chemical is an intermediate that will be used 
in the production of certain anti-cancer drugs.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for (S)-N-[[5-[2-(2-Amino-
4,6,7,8-tetrahydro-4-oxo-1H-pyrimido[5,4-b] [1,4]thiazin-6- 
yl]ethyl-2-thienyl]carbonyl]-L-glutamic acid diethyl ester as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

             4-Chloropyridine hydrochloride (Section 2190)

Present law

    4-Chloropyridine hydrochloride is classifiable under HTS 
subheading 2933.39.61 and subject to an NTR duty rate of 10% ad 
valorem. The chemical is one of several synthetic organic 
chemical intermediates that are important in the production of 
a matrix meallaproteinase inhibitors that are in phase I 
clinical trials directed towards advanced cancer.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloropyridine 
hydrochloride as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

                    4-Phenoxypyridine (Section 2191)

Present law

    4-Phenoxypyridine is classifiable under HTS subheading 
2933.39.61 and subject to an NTR duty rate of 10% ad valorem. 
The chemical is one of several synthetic organic chemical 
intermediates that are important in the production of a matrix 
meallaproteinase inhibitors that are inphase I clinical trials 
directed towards advanced cancer.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Phenoxypyridine as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

   (3S)-2,2-Dimethyl-3-thiomorpholine carboxylic acid (Section 2192)

Present law

    (3S)-2,2-Dimethyl-3-thiomorpholine carboxylic acid is 
classifiable under HTS subheading 2934.90.90 and subject to an 
NTR duty rate of 6.5% ad valorem. The chemical is one of 
several synthetic organic chemical intermediates that are 
important in the production of a matrix meallaproteinase 
inhibitors that is in phase I clinical trials directed towards 
advanced cancer.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for (3S)-2,2-Dimethyl-3-
thiomorpholine carboxylic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

      2-Amino-5-bromo-6-methyl-4(1H)-quinazolinone (Section 2193)

Present law

    2-Amino-5-bromo-6-methyl-4(1H)-quinazolinone is 
classifiable under HTS subheading 2933.59.70 and subject to an 
NTR duty rate of 10% ad valorem. This product is a synthetic 
organic chemical intermediate that is instrumental in producing 
THYMITAQ, a thymidylate synthase inhibitor which is currently 
in phase II clinical trials directed towards neck cancer and 
hepatoma.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-bromo-6-methyl-
4(1H)-quinazolinone as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone (Section 2194)

Present law

    2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone is 
classifiable under HTS subheading 2933.59.70 and subject to an 
NTR duty rate of 10% ad valorem. This is a synthetic organic 
chemical intermediate that is instrumental in producing 
THYMITAQ, a thymidylate synthase inhibitor which is currently 
in phase II clinical trials directed towards neck cancer and 
hepatoma.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-6-methyl-5-(4-
pyridinylthio)-4(1H)-quinazolinone as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

           (S)-N-[[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-
 pyrimido[5,4b][1,4]thiazin-6-yl)ethyl]-2-thienyl]carbonyl]-L-glutamic 
                          acid (Section 2195)

Present law

    (S)-N-[[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-
pyrimido[5,4-b][1,4]thiazin-6-yl)ethyl]-2-thienyl]carbonyl]-L-
glutamic acid (CAS No. 177575-17-6) is classifiable under HTS 
subheading 2934.90.90 and subject to an NTR duty rate of 6.5% 
ad valorem. This product is a synthetic organic chemical that 
will be incorporated in an anti-cancer drug.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (S)-N-[[5-[2-(2-
Amino-4,6,7,8-tetrahydro-4-oxo-1H-pyrimido[5,4-b][1,4]thiazin-
6-yl)ethyl]-2-thienyl]carbonyl]-L-glutamic acid (CAS No. 
177575-17-6) as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

       2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone 
                     dihydrochloride (Section 2196)

Present law

    2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone 
di-hydro-chloride is classifiable under HTS subheading 
2933.59.70 and subject to an NTR duty rate of 10% ad valorem. 
This product is a synthetic organic chemical that will be 
incorporated in an anti-cancer drug which is currently in phase 
II clinical trials.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 2-Amino-6-methyl-5-
(4-pyridinylthio)-4(1H)-quinazolinone dihydrochloride as duty 
free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

           3-(Acetyloxy)-2-methylbenzoic acid (Section 2197)

Present law

    3-(Acetyloxy)-2-methylbenzoic acid is classifiable under 
HTS subheading 2918.29.65 and subject to an NTR duty rate of 
10% ad valorem. This product is a synthetic organic chemical 
instrumental in the development of a new and more efficient 
production route for a protease inhibitor used for the 
treatment of HIV/AIDS currently under investigation.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 3-(Acetyloxy)-2-
methylbenzoic acid as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. 
pharmaceutical companies to continue production of an anti-
cancer drug, currently still in the trial stages, as cost-
effectively as possible. There is no appreciable domestic 
production of this product.

 [R-(R*,R*)]-1,2,3,4-Butanetetrol-1,4-dimethanesulfonate (Section 2198)

Present law

    [R-(R*,R*)]-1,2,3,4-Butanetetrol-1,4-dimethanesulfonate 
(CAS No. 1947-62/-2) is classifiable under HTS subheading 
2905.49.50 and subject to an NTR duty rate of 8.9% ad valorem. 
This product is a synthetic organic chemical used in the 
production of a protease inhibitor used to treat HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for [R-(R*,R*)]-1,2,3,4-
Butanetetrol-1,4-dimethanesulfonate (CAS No. 1947-62-2) as duty 
free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

  9-[2-[[Bis [(pivaloyloxy) methoxy] phospinyl]methoxy] ethyl]adenine 
                             (Section 2199)

Present law

    9-[2-[[Bis [(pivaloyloxy) methoxy] phospinyl]methoxy] 
ethyl]adenine is classifiable under HTS subheading 2933.59.95 
and subject to an NTR duty rate of 6.5% ad valorem. This 
product is also known as Adefovir Dipivoxil, this synthetic 
organic chemical is undergoing clinical trials to receive FDA 
approval for use in treating HIV/AIDS and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 9-[2-[[Bis 
[(pivaloyloxy) methoxy] phospinyl]methoxy] ethyl]adenine as 
duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

                      9-[2-(R)-[[Bis[(isopropoxy-
    carbonyl)oxymethoxy]phosphinoyl]methoxy]propyl]adenine fumarate 
                             (Section 2200)

Present law

    9-[2-(R)-[[Bis[(isopropoxy-
carbonyl)oxymethoxy]phosphinoyl]methoxy]propyl]-adenine 
fumarate is classifiable under HTS subheading 2933.59.95 and 
subject to an NTR duty rate of 6.5% ad valorem. This product is 
a synthetic organic chemical used as a drug called PMPA which 
is currently undergoing clinical trials for treating HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 9-[2-(R)-
[[Bis[(isopropoxy-
carbonyl)oxymethoxy]phosphinoyl]methoxy]propyl]adenine fumarate 
as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

         (R)-9-(2-Phosphonomethoxypropyl)adenine (Section 2201)

Present law

    (R)-9-(2-Phosphonomethoxypropyl)adenine is classifiable 
under HTS subheading 2933.59.95 and subject to an NTR duty rate 
of 6.5% ad valorem. This product is a synthetic organic 
chemical used as a drug called PMPA which is currently 
undergoing clinical trials for treating HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-9-(2-
Phosphonomethoxypropyl)adenine as duty free through December 
31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

            (R)-1,3-Dioxolan-2-one, 4-methyl-(Section 2202)

Present law

    (R)-1,3-Dioxolan-2-one, 4-methyl- is classifiable under HTS 
subheading 2920.90.50 and subject to an NTR duty rate of 3.7% 
ad valorem. This product is a synthetic organic chemical used 
as a drug called PMPA which is currently undergoing clinical 
trials for the treatment of HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-1,3-Dioxolan-2-
one, 4-methyl- as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

                9-(2-Hydroxyethyl)adenine (Section 2203)

Present law

    9-(2-Hydroxyethyl)adenine is classifiable under HTS 
subheading 2933.59.95 and subject to an NTR duty rate of 6.5% 
ad valorem. This product is a synthetic organic chemical used 
in the production of Adefovir Dipivoxil, it is undergoing 
clinical trials to receive FDA approval for treating HIV/AIDS 
and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 9-(2-
Hydroxyethyl)adenine as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

    (R)-9H-Purine-9-ethanol, 6-amino--methyl (Section 2204)

Present law

    (R)-9H-Purine-9-ethanol, 6-amino--methyl is 
classifiable under HTS subheading 2933.59.95 and subject to an 
NTR duty rate 6.5% ad valorem. This product is a synthetic 
organic chemical used as a drug called PMPA which is used for 
the treatment of HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-9H-Purine-9-
ethanol, 6-amino--methyl as duty free through December 
31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

             Chloromethyl-2-propyl carbonate (Section 2205)

Present law

    Chloromethyl-2-propyl carbonate is classifiable under HTS 
subheading 2920.90.50 and subject to an NTR duty rate 3.7% ad 
valorem. A synthetic organic chemical used as a drug called 
PMPA which is currently undergoing clinical trials for the 
treatment of HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Chloromethyl-2-propyl 
carbonate as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

              (R)-1,2-Propanediol, 3-chloro-(Section 2206)

Present law

    (R)-1,2-Propanediol, 3-chloro- is classifiable under HTS 
subheading 2905.50.60 and subject to an NTR duty rate 8.9% ad 
valorem. This is a synthetic organic chemical used in the 
production a drug used to treat CMV retinitis--a potentially 
blinding disease common in late-stage AIDS patients.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-1,2-Propanediol, 
3-chloro- as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

         Oxirane, (S)-((triphenylmethoxy)methyl)-(Section 2207)

Present law

    Oxirane, (S)-((triphenylmethoxy)methyl)- is classifiable 
under HTS subheading 2910.90.20 and subject to an NTR duty rate 
5.5% ad valorem. This is a synthetic organic chemical used in 
the production of a drug used to treat CMV retinitis--a 
potentially blinding disease common in late-stage AIDS 
patients.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Oxirane, (S)-
((triphenylmethoxy)methyl)- as duty free through December 31, 
2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

                  Chloromethyl Pivalate (Section 2208)

Present law

    Chloromethyl pivalate is classifiable under HTS subheading 
2915.90.50 and subject to an NTR duty rate 3.8% ad valorem. It 
is a synthetic organic chemical used in the production of 
Adefovir Dipivoxil; it is undergoing clinical trials to receive 
FDA approval for treating HIV/AIDS and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for chloromethyl pivalate 
as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. This synthetic 
chemical is used in the production of a protease inhibitor used 
to treat HIV/AIDS.

   Diethyl (((p-toluenesulfonyl)oxy)methyl)phosphonate (Section 2209)

Present law

    Diethyl (((p-toluenesulfonyl)oxy)methyl)phosphonate is 
classifiable under HTS subheading 2931.00.30 and subject to an 
NTR duty rate 10% ad valorem. This is a synthetic organic 
chemical used in the production of Adefovir Dipivoxil; it is 
undergoing clinical trials to receive FDA approval for treating 
HIV/AIDS and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Diethyl (((p-
toluenesulfonyl)oxy)methyl)phosphonate as duty free through 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

                 Beta Hydroxyalkylamide (Section 2210)

Present law

    Beta Hydroxyalkylamide is classifiable under HTS subheading 
3824.90.90 and subject to an NTR duty rate of 5% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for beta 
hydroxyalkylamide (CAS No. 6334-25--4) as duty free through 
December 31, 2001.

Reason for change

    The provision would remove the duty on a chemical for which 
there is no known domestic production and would reduce costs 
for American companies.

                      Grilamid TR90 (Section 2211)

Present law

    Grilamid TR90 is classifiable under HTS subheading 
3908.90.70 and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Grilamid TR90 (CAS 
No. 163800-66-6) as duty free through December 31, 1999.

Reason for change

    There is no known domestic production of this product.

                        IN-W4280 (Section 2212)

Present law

    IN-W4280, (2,4-dichloro-5-hydroxy-phenylhydrazine) (CAS No. 
39807-21-1) is classifiable under HTS subheading 2928.00.2500 
and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for IN-W4280, (2,4-
dichloro-5-hydroxy-phenylhydrazine) (CAS No. 39807-21-1) as 
duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to continue cost-effectively producing herbicides in which this 
chemical is an ingredient. There is no known domestic 
production of this chemical.

                          KL540 (Section 2213)

Present law

    Methyl-4-trifluoromethoxyphenyl-N-(chlorocarbonyl) 
carbamate, known as KL540 (CAS No. 173903-15-6) is classifiable 
under HTS subheading 2924.29.70 and subject to an NTR duty rate 
of 10% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Methyl-4-
trifluoromethoxyphenyl-N-(chlorocarbonyl) carbamate, known as 
KL540 (CAS No. 173903-15-6) as duty free through December 31, 
2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to cost-effectively produce insecticides which incorporate this 
chemical.

                  Methyl thioglycolate (Section 2214)

Present law

    Methyl thioglycolate (CAS No. 2365-48-2) is classifiable 
under HTS subheading 2930.90.90 and subject to an NTR duty rate 
of 3.7% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for methyl thioglycolate 
(CAS No. 2365-48-2) as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to cost-effectively produce herbicides which incorporate this 
chemical.

                        DPX-E6758 (Section 2215)

Present law

    DPX-E6758, phenyl (4,6-dimethoxypyrimidin-2-yl) carbamate 
(CAS No. 89392-03-0) is classifiable under subheading 
2933.59.70 and subject to an NTR duty rate of 10% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for DPX-E6758, phenyl 
(4,6-dimethoxypyrimidin-2-yl) carbamate (CAS No. 89392-03-0) as 
duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to cost-effectively produce herbicides which incorporate this 
chemical.

  Ethylene, tetrafluoro copolymer with ethylene (ETFE) (Section 2216)

Present law

    Ethylene, tetrafluoro copolymer with ethylene (ETFE) is 
classifiable under HTS subheading 3904.69.50.00 and subject to 
an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Ethylene, tetrafluoro 
copolymer with ethylene (ETFE) with a reduced duty rate of 3.3% 
ad valorem through December 31, 2001.

Reason for change

    The temporary tariff reduction would enable U.S. companies 
to more cost-effectively use the subject chemical in wide 
applications, including coating electrical wires, insulating 
aircraft fuel tanks and hydraulic systems, and acting as a 
vapor barrier in automobiles to help comply with the Clean Air 
Act.

                   3-Mercapto-d-valine (Section 2217)

Present law

    3-Mercapto-D-valine is classifiable under HTS subheading 
2930.90.45 and subject to an NTR duty rate of 4.2% ad valorem. 
This product is used in the production of anti-cancer drugs, as 
temporarily duty free until December 31, 2001.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.32.18 for 3-Mercapto-D-
valine.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this chemical.

                      P-ethylphenol (Section 2218)

Present law

    P-Ethylphenol is classifiable under HTS subheading 
2907.19.20 and subject to an NTR duty rate of 8.2% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.31.21 for p-Ethylphenol 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this chemical.

                         Pantera (Section 2219)

Present law

    Pantera is classifiable under HTS subheading 2909.30.40 and 
subject to an NTR duty rate of 9.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.29.09 for (+/-)-
Tetrahydrofurfuryl (R)-2-[4-(6-chloroquinoxaline-2-yloxy) 
phenoxy] propanoate (referred to as Pantera) as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this chemical.

                   P-Nitrobenzoic acid (Section 2220)

Present law

    P-Nitrobenzoic acid is classifiable under HTS subheading 
2916.39.45 and subject to an NTR duty rate of 10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.32.94 for p-Nitrobenzoic 
acid as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to the downstream users and consumers. 
There are currently no known domestic producers of this 
chemical and no known commercially viable substitutes for this 
product in downstream applications.

                  P-Toluenesulfonamide (Section 2221)

Present law

    P-Toluenesulfonamide is classifiable under HTS subheading 
2935.00.95 and subject to an NTR duty rate of 1.8 cents/kg 
+12.2% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.32.95 for p-
Toluenesulfonamide as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this product.

 Polymers of tetrafluoroethylene, hexafluoropropylene, and vinylidene 
                        fluoride (Section 2222)

Present law

    Polymers of tetrafluoroethylene, hexafluoropropylene, and 
vinylidene fluoride are classifiable under HTS subheadings 
3904.61.00 subject to an NTR duty rate of 5.8% ad valorem and 
3904.69.50 subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.39.04 for polymers of 
tetrafluoroethylene as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this product.

    Methyl 2-[[[[[4-(dimethylamino)-6-(2,2,2-trifluoroethoxy)-1,3,5-
    triazin-2-yl]-amino]carbonyl]-amino]sulfonyl]-3-methylbenzoate 
                  (trisulfuron methyl) (Section 2223)

Present law

    Methyl 2-[[[[[4-(dimethylamino)-6-(2,2,2-trifluoroethoxy)-
1,3,5-triazin-2-yl]-amino]carbonyl]-amino]sulfonyl]-3-
methylbenzoate is classifiable HTS subheading 3808.30.15 and 
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision is would amend chapter 99, subchapter II of 
the HTS to insert a new subheading 9902.38.08 for Methyl 2-
[[[[[4-(dimethylamino)-6-(2,2,2-trifluoroethoxy)-1,3,5-triazin-
2-yl]-amino]carbonyl]-amino]sulfonyl]-3-methylbenzoate in 
mixture with application adjuvants as temporarily free of duty 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this product.

             Certain manufacturing equipment (Section 2224)

Present law

    This machinery, used to produce tires for large equipment 
is classifiable under certain subheadings and subject to NTR 
duty rates ranging from Free to 4.7%.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting new subheadings 9902.84.79, 9902.84.81, 
9902.84.83, 9902.84.85, 9902.84.87, 9902.84.89, and 9902.84.91 
to provide for duty free treatment of certain machinery used to 
produce the tires.

Reason for change

    The temporary duty suspension would enable U.S. companies 
which use this machinery to more cost-effectively compete in 
the large tire industry. There is no U.S. producer of the 
subject machinery in the specifications provided.

              Textured rolled glass sheets (Section 2225)

Present law

    Certain textured rolled glass sheets used to produce glass-
ceramic stovetops are classifiable under HTS subheadings 
7003.19.00 or 7003.12.00 and subject to NTR duty rates of 1.3% 
ad valorem and 1.4% ad valorem, respectively.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by striking heading 9902.70.03 and inserting a new heading 
for certain textured rolled glass sheets as temporarily duty 
free until December 31, 2001.

Reason for change

    This provision would correct a competitive imbalance in the 
tariff schedule which favors foreign production of glass-
ceramic stovetops. Because of an inverted tariff, imports of 
the unfinished glass sheets are subject to a higher rate of 
duty than imports of the finished glass stovetops. There is no 
domestic production of this product.

               Certain HIV drug substances (Section 2226)

Present law

    The HIV drugs covered by this provision are classifiable 
under HTS subheading 2933.40.60 and subject to an NTR duty rate 
of 10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for these products as 
temporarily duty free until June 30, 1999.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                       Rimsulfuron (Section 2227)

Present law

    Rimsulfuron is classifiable under HTS subheading 2935.00.75 
and subject to an NTR duty rate of 10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for rimsulfuron to reduce the 
duty to 7.3% until December 31, 1999 and to provide duty-free 
entry between January 1, 2000 until December 31, 2000.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                 Carbamic acid (V-9069) (Section 2228)

Present law

    Carbamic acid (V-9069) is classifiable under HTS subheading 
2935.00.75 and subject to an NTR duty rate of 10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for carbamic acid to reduce 
the duty to 8.3% until December 31, 1999 and to 7.6% until 
December 31, 2000.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                        DPX-E9260 (Section 2229)

Present law

    DPX-E9260 is classifiable under HTS subheading 2935.00.75 
and subject to an NTR duty rate of 10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for this product to reduce 
the duty to 6% until December 31, 1999 and to 5.3% until 
December 31, 2000.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                          Ziram (Section 2230)

Present law

    Ziram is classifiable under HTS subheading 3808.20.28 and 
subject to an NTR duty rate of 3.7% ad valorem. It is a 
chemical used to produce herbicides.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new heading for ziram as temporarily duty-
free until December 31, 2001.

Reason for change

    The temporary duty suspension would enable American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                       Ferroboron (Section 2231)

Present law

    Ferroboron to be used for manufacturing amorphous metal 
strip is classifiable under HTS subheading 7202.99.50 and 
subject to an NTR duty rate of 5% ad valorem. It is a raw 
material used in the production of amorphous metal electrical 
power distribution transformer cores.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new heading for ferroboron to be used for 
manufacturing amorphous metal strip to temporarily reduce the 
duty to zero until December 31, 2001.

Reason for change

    The temporary duty suspension would enable American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  Acetic Acid, [[2-chloro-4-fluoro-5[(tetrahydro-3-oxo-1H,3H-[1,3,4] 
thiadiazolo[3,4-a]pyridazin-1-ylidene)amino]phenyl]thio]-,methyl ester 
                             (Section 2232)

Present law

    Acetic Acid, [[2-chloro-4-fluoro-5[(tetrahydro-3-oxo-1H,3H-
[1,3,4] thiadiazolo[3,4-a]pyridazin-1-
ylidene)amino]phenyl]thio]-,methyl ester is classifiable under 
HTS subheading 2934.90.15 and subject to an NTR duty rate of 
10% ad valorem. It is a chemical used in the manufacture of a 
herbicide to control broadleaf weeds, such as velvetleaf in 
corn and soybeans.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new heading for this chemical as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

         Pentyl[2-chloro-5-(cyclohex-1-ene-1,2-dicarboximido-4-
                  fluorophenoxy]acetate (Section 2233)

Present law

    Pentyl[2-chloro-5-(cyclohex-1-ene-1,2-dicarboximido-4-
fluorophenoxy]acetate is classifiable under HTS subheading 
2925.19.40 and is subject to an NTR duty rate of 10.8%. It is a 
chemical used in the manufacture of a herbicide to control 
broadleaf weeds, such as velvetleaf in corn and soybeans.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new heading for this chemical as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

Bentazon (3-Isopropyl)-1H-2,1,3-benzothiadiazin-4(3H)-one-2,2-dioxide) 
                             (Section 2234)

Present law

    (3-Isopropyl)-1H-2,1,3-benzothiadiazin-4(3H)-one-2,2-
dioxide (Bentazon) is a product used primarily for a post-
emergent herbicide in the production of corn and soybeans and 
is classifiable under HTS subheading 2934.90.11.00 and subject 
to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new heading for (3-Isopropyl)-1H-2,1,3-
benzothiadiazin-4(3H)-one-2,2-dioxide (Bentazon) as temporarily 
at a duty rate of 5% until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

 Certain high-performance loudspeakers not mounted in their enclosures 
                             (Section 2235)

Present law

    Certain high-performance loudspeakers not mounted in their 
enclosures are classifiable under HTS subheading 8518.29.80.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain high-performance 
loudspeakers not mounted in their enclosures as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

     Parts for use in the manufacture of certain high-performance 
                      loudspeakers (Section 2236)

Present law

    Certain parts for use in the manufacture of certain high-
performance loudspeakers are classifiable under HTS subheading 
8518.90.80.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for parts used in the 
manufacture of certain high-performance loudspeakers as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

              5-tert-butyl-isophthalic acid (Section 2237)

Present law

    5-tert-butyl-isophthalic acid classifiable under HTS 
subheading 2917.39.70 and subject to an NTR duty rate of 13.2% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 5-tert-butyl-isophthalic 
acid as temporarily duty-free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Certain Polymer (Section 2238)

Present law

    This polymer is used in plastics production is classifiable 
under HTS subheading 3907.99.00 and subject to an NTR duty rate 
of 1.6 cents/kg.+7.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for this product as duty 
free.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 2-(4-Chlorophenyl)-3-Ethyl-2, 5-dihydro-5-oxo-4-pyridazine carboxylic 
                  acid, potassium salt (Section 2239)

Present law

    2-(4-Chlorophenyl)-3-Ethyl-2, 5-dihydro-5-oxo-4-pyridazine 
carboxylic acid, potassium salt is a hybridizing agent that 
controls pollination and is classifiable under HTS subheading 
2933.90.79 and subject to an NTR duty rate of 10% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for this product as duty 
free.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                       Chapter 3--Effective Date

                     Effective Date (Section 2301)

    This section provides that, except as otherwise indicated, 
the amendments made in subtitle A apply to goods entered or 
withdrawn from warehouse for consumption, after the date that 
is 15 days after the date of enactment of this Act.

                   SUBTITLE B--OTHER TRADE PROVISIONS

  Extension of United States insular possession program (Section 2401)

Present law

    Note 5 in Chapter 91 of the HTS currently allows producers 
of watches located in the U.S. insular possessions to benefit 
from the Production Incentive Certificate (PIC) system, which 
allows watch producers to import specified quantities of 
watches, watch movements, and some watch components duty free 
and to claim duty refunds for watches, watch movements, and 
watch parts. The benefits provided under Note 5 are based on 
the amount of wages paid to produce such watches in the insular 
possessions.
    The Note 5 program is intended to counteract the lack of 
natural resources and other competitive disadvantages of the 
insular possessions. In part because of this program, the watch 
manufacturing industry plays a significant role in the 
economies of the insular possessions, particularly the Virgin 
Islands where it provides high-skill, high-wage employment to 
approximately 200 workers.

Explanation of provision

    This section makes certain articles of fine jewelry, 
specifically jewelry articles of silver, gold or platinum under 
HTS heading 7113, produced in insular possessions, eligible for 
certain Note 5 benefits. In particular, this section adds an 
additional U.S. note 3 to chapter 71 of the HTS. Paragraph (a) 
of the new note 3 permits the inclusion of wages paid for 
jewelry production in the insular possessions as an offset to 
duties paid on watches, watch movements and parts imported into 
the United States, as currently authorized by additional U.S. 
note 5 to Chapter 91 of the HTS. Paragraph (b) of note 3 
provides that the extension of Note 5 benefits to jewelry may 
not result in any increase in the authorized amount of benefits 
established by Note 5 and paragraph (c) of note 3 provides that 
thisprovision shall not diminish the benefits currently 
available to watch producers under paragraph (h)(iv) of Note 5 to 
chapter 91. Paragraph (d) requires the Secretary of Commerce and the 
Secretary of the Interior to issue regulations to carry out this 
provision. Paragraph (e) recognizes that the establishment of full-
scale jewelry production in the insular possessions will require a 
transition period. Accordingly, paragraph (e) establishes a two-year 
transition period during which any article of jewelry described in HTS 
heading 7113 that is assembled in the Virgin Islands, Guam, or American 
Samoa shall be treated as a product of the insular possessions for 
purposes of the benefits provided in this section and for purposes of 
General Note 3(a)(iv) of the HTS. The Committee also intends that the 
Secretaries will develop and administer their regulations in a manner 
that will promote jewelry production in the insular possessions and 
recognize the need for a transition period.

Reason for change

    The Committee expects that this provision will increase 
employment in the insular possessions in jewelry production.

Effective date

    The amendments made by this provision take effect 45 days 
after the date of the enactment of the Act.

 Tariff treatment for certain components of scientific instruments and 
                        apparatus (Section 2402)

Present law

    Separate components of certain large scientific instruments 
or apparatus that are imported for assembly under those 
circumstances in which the instrument or apparatus, due to its 
size, cannot be imported in its assembled state, are subject to 
separate NTR duty rates, even though the larger scientific 
apparatus of which the components are a part would receive 
duty-free treatment, were they imported as part of a single, 
finished scientific instrument or apparatus.

Explanation of provision

    The provision would amend U.S. Note 6, subchapter X, 
chapter 98 of the HTS to clarify that separate components of 
certain large scientific instruments and apparatus would be 
provided the same tariff treatment as those large scientific 
instruments and apparatus. The term ``instruments and 
apparatus'' under subheading 9810.00.60 would include separable 
components of an instrument or apparatus that are imported for 
assembly under those circumstances in which the instrument or 
apparatus, due to its size, cannot be imported in its assembled 
state. The provision also would amend the procedures by which 
the Secretaries of Treasury and Commerce would determine 
whether or not to grant such duty-free treatment. The provision 
includes a domestic equivalency test, which provides that the 
imported item shall remain subject to duties if an instrument 
or apparatus of equivalent scientific value is being 
manufactured in the United States.

Reason for change

    The provision is needed to permit, in accordance with the 
Agreement on the Implementation of Educational, Scientific and 
Cultural Material (the Florence Agreement), duty-free treatment 
for separate components of certain large scientific instruments 
or apparatus that are imported for assembly under circumstances 
in which the instrument, due to its size, cannot be imported in 
its assembled state, even though the larger scientific 
apparatus of which the components are a part would receive 
duty-free treatment, were they imported as part of a single, 
finished scientific instrument or apparatus.
    The Committee recognizes that the scientific and financial 
benefits of U.S. participation in international scientific 
projects are of tremendous importance. Accordingly, the 
Committee expects that the Secretary of Commerce will use only 
scientific factors in determining whether a domestically 
equivalent scientific instrument or apparatus is available. 
Only in the rare case that a domestically-manufactured 
instrument or apparatus that is the exact functional equivalent 
to the imported item in the assembled state would the levy of a 
duty be justified.

Effective date

    The effective date shall be 120 days following enactment.

     Liquidation or reliquidation of certain entries (Section 2403)

Present law

    Certain entries at the ports of Los Angeles and New Orleans 
in 1986 and 1987 were liquidated not in accordance with a 
Department of Commerce antidumping determination.

Explanation of provision

    The provision would provide for reliquidation of certain 
entries made at Los Angeles and New Orleans, in accordance with 
the final decision of the Department of Commerce for shipments 
of carbon steel wire rod from Trinidad and Tobago entered 
between October 1, 1984, and December 14, 1987 (case number A-
274-001).

Reason for change

    The provision would liquidate these entries in compliance 
with the Department of Commerce rulings.

Effective date

    The provision shall apply as of the date of the enactment 
of this Act.

        Drawback and refund on packaging material (Section 2404)

Present law

    Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) was 
amended by the North American Free Trade Agreement 
Implementation Act [P.L. 103-182] to insert a new subsection 
(q) allowing drawback of packaging materials, where the 
packaging is ``used'' by filling prior to exportation.

Explanation of provision

    The provision would amend section 313(q) of the Tariff Act 
of 1930 (19 U.S.C. 1313(q)) byinserting a new paragraph for 
drawback-eligible packaging material filled prior to exportation. The 
provision would state that packaging materials produced in the United 
States, which are used by the manufacturer or any other person for 
articles which are exported or destroyed, would be eligible for a 
drawback refund of 99 percent of any duty, tax, or fee imposed on the 
importation of materials used to manufacture the packaging materials.

Reason for change

    Under current law, individuals are ineligible to receive 
drawback on packaging materials used on items which are 
subsequently exported. The amendment would permit drawback on 
packaging materials used by a person other than the 
manufacturer of the container.

Effective date

    The provision would be effective as it applies to goods 
entered, or withdrawn from warehouse for consumption, on or 
after the 15th day after the date of enactment.

Inclusion of commercial importation data from foreign-trade zones under 
         the National Customs Automation Program (Section 2405)

Present law

    Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) 
established the National Customs Automation Program (NCAP), 
including a program for the automation of electronic filing. 
Such data is contained Customs Form 214.

Explanation of provision

    The provision would amend section 411 of the Tariff Act of 
1930 (19 U.S.C. 1411) relating to the NCAP, to require Customs, 
no later than January 1, 2000, to include under the program 
commercial importation data from foreign trade zones.

Reason for change

    Customs has not developed a system for the automation of 
electronic filing of importation data from foreign-trade zones. 
The provision would establish a deadline for the development 
and implementation of such a system. The Committee expects the 
Commissioner of Customs to advise the Committee by July 1, 1999 
on the progress and schedule for completing automation of 
Customs Form 214.

Effective date

    The provision would be effective as of the date of 
enactment.

  Large yachts imported for sale at United States boat shows (Section 
                                 2406)

Present law

    Large yachts are classifiable under HTS subheading 
8903.92.00 and subject to the NTR duty rate of 1.5% at the time 
of importation.

Explanation of provision

    The provision would amend the Tariff Act of 1930 by 
inserting a new section 484b to provide that large previously 
owned yachts which would otherwise be dutiable, may be imported 
without the payment of duty if imported with the intention to 
offer for sale at a boat show in the United States. Payment of 
duty would be deferred until such a large yacht is sold, not to 
exceed a period of six months.

Reason for change

    The provision would remove the disincentives under the 
current law which frequently discourage the sale of large 
previously owned yachts domestically by requiring the duty to 
be paid at the time of importation, whether the yacht is 
eventually sold or not. Removing the disincentives would allow 
for more large vessel sales, which could pump tens of thousands 
of dollars into local economies because of related expenditures 
such as the cost of a supporting crew, docking fees, boat 
repairs, and supplies.

Effective date

    The provision shall apply with respect to a large yacht 
entered into the United States after the date that is 15 days 
after the date of enactment of this Act.

 Review of protests against decisions of Customs Service (Section 2407)

Present law

    Section 515(a) of the Tariff Act of 1930 (19 U.S.C. 
1515(a)) provides for administrative review of protests against 
decisions by the Customs Service.

Explanation of provision

    The provision would amend section 515(a) of the Tariff Act 
of 1930 (19 U.S.C. 1515(a)) to provide that, within 30 days 
from the date an application for further review is filed, the 
appropriate Customs officer shall allow or deny the application 
and, if allowed, forward the protest to the Customs officer who 
will be conducting the further review.

Reason for change

    The provision would require timely processing by Customs 
officers of applications for further review, thus facilitating 
trade.

Effective date

    The provision would apply with respect to applications for 
further review filed on or after the date of enactment.

              Entries of NAFTA-origin goods (Section 2408)

Present law

    Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 
1520(d)), outlines the statutoryauthority for making a claim 
for a NAFTA preference under the NAFTA rules of origin after the 
liquidation of the entry within one year of the date of importation. 
Under the NAFTA Implementation Act [P.L. 103-182], merchandise 
processing fees (MPFs) are not imposed on NAFTA originating goods from 
Canada although they are still imposed on NAFTA originating goods from 
Mexico. To claim a NAFTA preference at the time of entry, an importer 
must possess a valid certificate of origin. Importers who do not 
possess a valid certificate at the time of entry often pay duties and 
the MPF on a good they know is NAFTA-eligible, with the expectation 
that the MPF will be refunded later as an excess duty when NAFTA-
eligibility is proven. However, Customs has taken the position that 
MPFs are not refundable excess duties under section 520(d).
    Section 514(a) of the Tariff Act of 1930 (19 U.S.C. 
1514(a)) outlines the statutory authority for filing protests 
against decisions of the Customs Service. An importer may not 
claim a NAFTA preference before receiving a valid certificate 
of origin issued by the exporter. Many importers do not have a 
certificate of origin at the time goods are entered, and 
subsequently file post-entry claims when a valid certificate of 
origin is received. If the entry is liquidated ``as entered'' 
before receiving a certificate of origin, importers generally 
request reliquidation of the entry under section 520(d) in 
order to make the NAFTA claim. However, if the request to 
reliquidate is refused by Customs, there is no mechanism to 
receive further review of this claim. Section 514 currently 
does not allow a protest of Customs refusal to reliquidate an 
entry under section 520(d). In addition, Customs has taken the 
position that a Customs liquidation ``as entered'' of an entry 
that is made by an importer without a NAFTA claim is not 
protestable under section 514 and that such NAFTA claims must 
be filed under section 520(d) of the Tariff Act of 1930 within 
one year from the date of entry.

Explanation of provision

    Section (a) of this provision would amend section 520(d) of 
the Tariff Act of 1930 (19 U.S.C. 1520(d)) to clarify that 
excess MPFs may be refunded along with excess duties if NAFTA-
eligibility is proven.
    Section (b) of this provision would amend section 514(a) of 
the Tariff Act of 1930 (19 U.S.C. 1514(a)) to ensure that if an 
importer is denied a request to reliquidate an entry under 
section 520(d) in order to make a NAFTA claim, there is a 
method for obtaining further review of Customs action on that 
claim. The provision would clarify that importers may use the 
protest procedure under section 514 to protest the denial of a 
section 520(d) request for reliquidation.

Reason for change

    Section (a) of this provision is necessary to clarify that 
MPFs may be refunded along with excess duties if NAFTA-
eligibility is proven. Section (b) is necessary to clarify that 
importers may use the protest procedures under section 514 to 
contest the denial of a request for reliquidation to allow a 
NAFTA claim under section 520(d). Both of these provisions 
would facilitate NAFTA trade.

Effective date

    The provision would be effective as it applies to goods 
entered, or withdrawn from warehouse for consumption, on or 
after the 15th day after the date of enactment.

Treatment of international travel merchandise held at Customs-approved 
                      storage rooms (Section 2409)

Present law

    Section 557(a)(1) of the Tariff Act of 1930 (19 U.S.C. 
1557(a)(1)) authorizes entry of dutiable merchandise in 
Customs-approved bonded warehouses and requires its withdrawal 
within 5 years for consumption upon payment of duties or for 
exportation.

Explanation of provision

    The provision would amend section 557(a)(1) of the Tariff 
Act of 1930 (19 U.S.C. 1557(a)(1)) to include International 
Travel Merchandise (ITM) among the merchandise which may be 
retained in a bonded warehouse for 5 years from the date of 
importation.

Reason for change

    International Travel Merchandise (ITM) consists of in-
flight merchandise sold on board international air carriers 
after departure from U.S. Customs territory. Presently, ITM is 
imported into the United States under bond and moved to CASRs, 
where merchandise is stored, repackaged and under Customs 
supervision. A Customs regulation applies a one year limit to 
goods placed in CASRs. This change would make ITM appropriate 
for storage in a bonded warehouse for up to five years.
    The Committee's intent is to recognize that ITM operations 
are not duty-free sales enterprises, subject to section 1555(b) 
of the Tariff Act of 1930 (19 U.S.C. 1555(b)), but a wholly 
unique business enterprise. The Committee intends that Customs 
provide, through regulations, for the application of the 
benefits, privileges, and responsibilities of other classes of 
bonded warehouses in a new ``Class 10'' category, which 
recognizes the unique features of ITM operations.

Effective date

    The provision would be effective as of the date of 
enactment.

Exception to 5-year reviews of countervailing duty or antidumping duty 
                         orders (Section 2410)

Present law

    Section 751(C) of the Tariff Act of 1930 maintains that 
five-year reviews of countervailing duty or antidumping duty 
orders must be conducted and does not exclude merchandise 
prohibited from importation into the United States because of 
trade sanctions imposed against the country in which the 
merchandise originates.

Explanation of provision

    The provision would provide that five-year reviews of 
countervailing duty or antidumping duty orders would not be 
conducted if the merchandise subject to the orders was 
prohibited from importation into the United States because of 
trade sanctions imposed against the country in which the 
merchandise originates, by amending section 751(c) of the 
Tariff Act of 1930 (19 U.S.C. 1675(c)).

Reason for change

    This provision will ensure that sunset reviews are not used 
inappropriately in those limited circumstances in which imports 
of the subject merchandise have been banned by an embargo.

Effective date

    This provision shall apply as of the date of the enactment 
of this Act.

              Water-resistant wool trousers (Section 2411)

Present law

    Water-resistant wool trousers are classifiable under HTS 
subheadings 6203.41.05 or 6204.61.10 and are subject to a NTR 
duty rate of 7.6% ad valorem.

Explanation of provision

    The provision would provide retroactive duty refunds to 
water-resistant wool trousers imported during 1989-94. To be 
eligible for the lower duty rates on such trousers that became 
effective in 1995, the importers' requests would need to be 
filed with the Customs Service within 180 days after the date 
of the enactment of this legislation.

Reason for change

    This provision would correct an error made when the U.S. 
tariff schedules were converted to the Harmonized Tariff 
Schedule (HTS) on January 1, 1995. As a result of this 
conversion, such trousers were no longer separately provided 
for and were classifiable under HTS provision for wool trousers 
at a higher duty rate. The correct tariff treatment was 
corrected effective January 1, 1995. This provision will allow 
importers to seek duty refunds at the lower (7.6%) duty for 
water-resistant wool trousers entered between 1989 and 1994.

Effective date

    This provision shall apply as of the date of the enactment 
of this Act.

             Reimportation of certain goods (Section 2412)

Present law

    Under current law, some products sold by catalogue 
merchants face double duties when the goods are returned to the 
manufacturer in the United States from customers abroad.

Explanation of provision

    The bill would amend subchapter I of chapter 98 of the HTS 
subheading by establishing a new HTS subheading (similar to 
current HTS subheading 9801.00.25) which provides duty-free 
treatment for an article assessed a duty during a previous 
importation, if the article was (1) exported within 3 years 
after the date of such previous importation; (2) sold for 
exportation and exported to individuals for personal use; (3) 
reimported without having been advanced in value or improved in 
condition by any process of manufacture or other means while 
abroad; (4) reimported as personal returns from those 
individuals, whether or not consolidated with other personal 
returns prior to reimportation; and (5) reimported by or for 
the account of the person who exported the article from the 
United States within 1 year of such exportation.

Reason for change

    This provision will correct a problem faced by catalogue 
merchants. Under current law, some products sold by catalogue 
merchants face double duties when the goods are returned to 
them by customers abroad. This provision would ensure that 
duties are assessed only the first time a product comes into 
this country from abroad.

Effective date

    This provision shall apply to goods that are reimported 
into the United States on or after the date that is 15 days 
after enactment.

Treatment of personal effects of participants in certain world athletic 
                         events (Section 2413)

Present law

    Under current law, U.S. Customs Service inspectors have the 
discretion to allow certain articles, not intended for sale or 
distribution, to be brought into the United States in 
connection with international athletic events on a duty-free 
basis. Persons seeking such duty-free treatment are obliged, 
however, to comply with certain filing requirements which 
significantly lengthen the entry process.

Explanation of provision

    This provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading to provide temporary duty-
free entry for the personal effects and athletic equipment of 
participants in, officials of, or accredited members of 
delegations to (and persons who are immediate family members of 
or servants to such persons) to certain world athletic events, 
provided such items are not intended for sale or distribution 
to the public through December 31, 2003. These events are the 
1999 International Special Olympics, the 1999 Women's World Cup 
Soccer, the 2001 International Special Olympics, the 2002 Salt 
Lake City Winter Olympics, and the 2002 Winter Paralympic 
Games. The suspension applies also to other articles, not 
intended for sale or distribution to the public, such as 
equipment and materials imported in connection with such 
events, as well as articles to be used in exhibitions depicting 
the culture of a country participating in any such event. It 
would continue to permit Customs Service inspectors to inspect 
all imports, regardless of their duty status. This section does 
not allow products to come into the United States that would be 
barred under existing law, but will help make the customs 
process as smooth as possible for upcoming international 
athletic events.
    This provision also exempts from taxes and fees all 
articles described in this provision. This provision clarifies 
that these articles shall not be free or otherwise exempt or 
excluded from routine or other inspections as may be required 
by the Customs Service.

Reason for change

    This provision would substantially reduce the Customs 
paperwork to which athletes and officials of these events and 
their families would otherwise be subjected. The Committee on 
Financeexpects the relevant agencies to cooperate with the 
organizing committees of the events to facilitate the entry of 
athletes, officials, and other participants. Similar measures have been 
enacted for other international athletic competitions and are analogous 
to treatment routinely afforded by other countries hosting such events. 
The Committee notes that the practices and procedures developed during 
the Centennial Olympic Games in Atlanta, Georgia have been cited as 
having been highly successful and effective.

Effective date

    This provision shall apply as of the date of the enactment 
of this Act.

  Reliquidation of certain entries of thermal transfer multifunction 
                        machines (Section 2414)

Present law

    Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) 
provides for the filing of protests against decisions of the 
Customs Service.

Explanation of provision

    This section directs the Customs Service to liquidate or 
reliquidate certain entries of thermal transfer multifunction 
machines (liquidated or reliquidated under HTS subheading 
8517.21.00 or 9009.12.00) at the rate of duty that would have 
been applicable to such merchandise if it had been liquidated 
or reliquidated under HTS subheading 8471.60.65. Any amounts 
paid by the United States pursuant to the liquidation or 
reliquidation of these subject entries would be paid within 180 
days after or liquidation reliquidation.

Reason for change

    This provision would allow for the liquidation or 
reliquidation of thermal transfer multifunction machines at a 
lower rate of duty.

   Reliquidation of certain drawback entries and refund of drawback 
                        payments (Section 2415)

Present law

    Sections 514 and 520 of the Tariff Act of 1930, as amended 
(19 U.S.C. 1514 and 1520) provide, respectively, for the filing 
of protests against decisions of the Customs Service, and 
authority for the Secretary of Treasury to refund duties in the 
event of errors by the Customs Service in collecting such 
duties.

Explanation of provision

    The provision would direct the Customs Service to liquidate 
or reliquidate certain entries of juice within 180 days after 
the date of enactment of this Act and provides that any amounts 
owed by the United States shall be refunded with interest.

Reason for change

    A company protested the classification of certain exports 
of orange juice for purposes of duty drawback. Certain exports 
were reliquidated by Customs after an error was acknowledged. 
The company in question, however, inadvertently omitted certain 
exports that should have been reliquidated and Customs did not 
reliquidate those entries at the lower, correct duty rate. The 
company filed a protest and CIT case, but lost because Customs 
and the CIT determined that the protest was not timely filed.

Clarification of additional U.S. note 4 to chapter 91 of the Harmonized 
          Tariff Schedule of the United States (Section 2416)

Present law

    Imported watch movements and cases must be marked 
separately with (1) the name of the country of manufacture, (2) 
the name of the manufacturer or purchaser and (3) for 
movements, the number of jewels (if any) serving as frictional 
bearings. Additional U.S. Note 4, Chapter 91, HTSUS (19 U.S.C. 
1202) prescribes the method of marking as cutting, die-sinking, 
engraving, stamping or mold-marking.

Explanation of provision

    The provision would amend chapter 91 of the HTS to clarify 
that ``stamping'' can be done by means of indelible ink.

Reason for change

    The provision ensures that the Customs Service continues to 
allow stamping by means of indelible ink as a way to satisfy 
the marking requirements for watches.

               Duty-free sales enterprises (Section 2417)

Present law

    Section 555(b) of the Tariff Act of 1930, as amended, 
requires that a duty-free sales enterprise (so-called duty-free 
store) may be located anywhere within (a) the same port of 
entry from which a purchaser of duty-free merchandise departs 
the customs territory of the United States; or (b) 25 statute 
miles from the exit point through which the purchaser of duty-
free merchandise will depart the customs territory of the 
United States.

Explanation of provision

    The provision would amend section 555 of the Tariff Act of 
1930 to allow duty-free stores to be located anywhere within a 
staffed Customs-defined port-of-entry or 25 statute miles from 
such port-of-entry, whether or not it is the same port through 
which the merchandise will be exported from the United States, 
so long as the Customs Service concludes that there is 
``reasonable assurance'' that the duty-free merchandise will be 
exported from the United States.

Reason for change

    The provision would create additional opportunities for 
duty-free stores to increase sales.Rather than limiting 
purchases by international travelers to duty-free stores in or within 
25 miles of the port-of-entry of their departure, this provision would 
permit purchases to be made in any duty-free store located in or within 
25 miles of a staffed Customs-defined port-of-entry, whether or not it 
is the same port through which the purchaser will depart from the 
United States. This provision only applies, however, to the extent that 
the Customs Service determines that there is a ``reasonable assurance'' 
that the duty-free merchandise will be exported from the United States.

                   Customs users fees (Section 2418)

Present law

    The Consolidated Omnibus Reconciliation Act (COBRA) of 1985 
established user fees for certain inspectional services. Under 
COBRA, passengers arriving in the United Sates by commercial 
airline or vessel from a foreign location other than Canada, 
Mexico or the Caribbean pay a $5 fee. COBRA provides that 
salaries of Customs inspectors who provide services to fee-
paying passengers may be funded out of a dedicated user fee 
account. The North American Free Trade Agreement (NAFTA) 
temporarily increased the fee to $6.50, and authorized its 
collection from passengers from all countries. This 
authorization expired September 30, 1997.
    Because it no longer collects a fee from passengers 
arriving from Canada, Mexico, or the Caribbean, Customs has 
concluded that it no longer has authority to use the fee 
account to pay for preclearance inspectors in those counties. 
This will result in a loss of inspectors stationed at 
``preclearance'' stations outside the United States and at 
major seaports. When Customs determined that it no longer had 
the ability to pay the salaries of these inspectors out of the 
dedicated user fee account, it temporarily funded these 
preclearance positions out of its regular budget so as not to 
unduly interrupt service. However, budget pressure has resulted 
in the need to reduce these positions with attrition, creating 
declines in service.
    For vessels passengers only, Pub. L. 105-150 provided a 
one-year authorization for Customs to continue funding 
approximately 50 positions located at the seaports out of the 
user fee account. This authority expired September 30, 1998.

Explanation of provision

    There are five parts to this provision.
    Subsection (a) would grant Customs access to the Customs 
user fee account to pay for the salaries of up to 50 full-time 
equivalent inspectional positions to provide preclearance 
services. The provision would also permit Customs to have 
access to the account to use up to $100,000 per fiscal year for 
equipment to enhance preclearance services.
    Subsection (b) would establish a new $1.75 COBRA user fee 
for vessel passengers arriving from Canada, Mexico, and the 
Caribbean. By collecting this fee, Customs would automatically 
have access to the COBRA account to fund inspectors to service 
these passengers. This new fee is necessary to fund the seaport 
positions because these passengers do not currently pay the 
COBRA user fee, and as such, the positions cannot be funded 
from the dedicated user fee account.
    Subsection (c) would allow $50 million of the surplus from 
the Merchandise Processing Fee account in FY 1999, to be used, 
subject to appropriation, for computer modernization. Customs 
is undergoing a major computer overhaul and upgrade, mandated 
by the Customs Modernization Act. The effort involves several 
hundred million dollars in expenditures which do not currently 
have a dedicated funding source. This provision is part of the 
ongoing effort to fund this modernization.
    Subsection (d) would establish an advisory committee to 
review Customs' use of COBRA user fees. Preclearance services 
and the efficient processing of vessel passengers are vital 
trade facilitation services which are important to trade and 
tourism.
    Subsection (e) would authorize the Customs Service to adopt 
an alternative mid-point interest accounting methodology for 
reconciling entries as part of its National Customs Automation 
Test Regarding Reconciliation, authorized by the Customs 
Modernization Act. Customs may prescribe this methodology, 
rather than the normal methodology (which, pursuant to section 
505(c) of the Tariff Act of 1930 (19 U.S.C. 1505(c)), requires 
interest to be calculated from the date on which the importer 
of record is required to deposit duties) from October 1, 1998 
through the end of the test program or October 1, 2000, 
whichever is earlier.

Reason for change

    This provision is necessary to ensure that Customs has the 
authority and resources to continue providing preclearance 
services which greatly facilitates the movement of 
international passengers and reduces congestion and delays at 
U.S. ports.
    An upgrade to its computer systems is likewise critical to 
the ability of Customs to process efficiently merchandise trade 
transactions, an essential trade facilitation service.
    The establishment of the Advisory Committee is intended to 
help Customs accomplish its goals in an efficient manner with 
the input of industry.
    Finally, the interest rate accounting methodology 
authorization is necessary to provide Customs the flexibility 
to conduct its Reconciliation prototype program, which current 
law does not permit.

Effective date

    This provision is effective on the date of enactment of 
this Act.

  Duty drawback for methyl tertiary-butyl ether (MTBE) (Section 2419)

Present law

    Section 313(p) of the Tariff Act of 1930, as amended, 
allows duty drawback for a group of ``commercially 
interchangeable'' petroleum and petroleum derivative products. 
MTBE, a petroleum derivative which is a popular fuel additive 
used in ``clean burning'' gasoline, is not included on that 
list and is not eligible for duty drawback.

Explanation of provision

    The provision would amend section 313(p)(3) of the Tariff 
Act of 1930 to allow drawback on MTBE by including it within a 
category of products (petroleum and petroleum derivatives) that 
is already eligible for drawback.

Reason for change

    In recent years, MTBE has become an important petroleum 
derivative which is used as a fuel oxygenate. The growth in its 
use is associated with the increasing demand for ``clean 
burning'' gasoline. The provision is intended to promote the 
resale and export of MTBE and products incorporating it.

Effective date

    This provision is effective on the date of enactment of 
this Act.

     Substitution of finished petroleum derivatives (Section 2420)

Present law

    The Customs Modernization Act allows for drawback of 
finished petroleum derivative. Drawback eligibility is 
generally limited to the actual imported petroleum for which 
the duty was paid when that petroleum is sold for export by the 
exporter. However, because imported petroleum is often mixed in 
large storage tanks with domestically produced petroleum and 
transported in oil pipelines, it is often difficult to 
demonstrate that the exported petroleum is the same as the 
imported petroleum. Accordingly, the exporter is allowed to 
``substitute'' an equivalent quantity and quality of domestic 
petroleum for the imported petroleum. However, drawback claims 
may be difficult because the chain of commerce between the 
import and the export (i.e., aircraft or vessels leaving the 
U.S.) may involve a number of different commercial entities. 
Many parties with legitimate drawback claims have been unable 
to qualify for drawback under current law because of the 
complexities associated with intermediaries and the matching of 
eligible imports and exports through the commercial chain of 
transactions.

Explanation of provision

    The provision would provide for drawback on finished 
petroleum derivatives by amending section 313(p) of the Tariff 
Act of 1930 (19 U.S.C. 1313(p)) to allow substitution for both 
the qualified article and of the exported article, matching 
imports and exports through the commercial chain of events. It 
would also require interested parties to certify to the 
Commissioner of Customs that they have not issued and will not 
issue a certificate of delivery or manufacture and delivery for 
quantities greater than the amount eligible for drawback and 
will maintain appropriate records to demonstrate that fact.

Reason for change

    This section is intended to clarify the application of 
drawback for petroleum products where a party other than the 
exporter is the importer. Congress has long recognized the 
unique nature of petroleum products and the complex movement of 
those products from importation to exportation. Because they 
are typically stored in common tanks and shipped through 
pipelines carrying other petroleum products, claimants cannot 
trace the specific molecules of imported petroleum to the point 
of exportation.
    In 1988, the Customs Service administratively imposed 
accounting requirements that, combined with interpretations of 
which petroleum products could be considered fungible, appeared 
to greatly restrict the applicability of drawback to this 
industry. At a minimum, these requirements necessitated a level 
of effort that often made it economically unfeasible to seek 
drawback claims.
    In Section 484A of the Customs and Trade Act of 1990 (Pub. 
L. 101-382), Congress amended the statute to establish monthly 
accounting procedures for certain petroleum products exported 
from common storage facilities. Further amendments were made in 
section 632 of the North American Free Trade Agreement 
Implementation Act of 1993 (Pub. L. 103-182) in an effort to 
reduce the record keeping burdens involved in drawback on the 
petroleum products provided for in the 1990 Act.
    The Committee understands that the trade community and the 
Customs Service have made significant progress in resolving 
disagreements on the proper application of these provisions and 
the administrative burdens required to justify a drawback 
claim. At the same time, the Committee believes that the 
current situation restricts the flexibility of the parties 
involved in petroleum transactions.
    This amendment permits substitutions of petroleum products 
of the same kind and quality, as defined in the 1990 and 1993 
Acts. A drawback claim under this provision is based upon the 
exporter matching the quantity of exports with an equal or 
greater quantity of imports of the same kind and quality. To 
ensure accuracy, the Customs Service and the trade community 
have agreed to require that each party to a transaction certify 
that it has not designated a quantity greater than the amount 
eligible for drawback and that it will maintain the appropriate 
records to demonstrate that fact.

Effective date

    In an effort to resolve, finally and completely, issues 
relating to the interpretation of this drawback, the provision 
would apply retroactively, as provided in the North American 
Free Trade Agreement Implementation Act of 1993 and Section 
484A of the Trade Act of 1990 (Pub. L. 101-382). However, a 
``sunset'' provision would end the retroactive period for 
claims not made within six months of enactment of this 
provision.

     Duty on certain importation of mueslix cereals (Section 2421)

Present law

    Mueslix is currently classifiable under HTS subheading 
1904.10.00, which covers ``prepared foods obtained by the 
swelling or roasting of cereals'' and carries a duty rate of 
1.3 percent ad valorem. Customs originally classified these 
products under HTS subheading 1904.20.10, which covers 
``prepared foods obtained from unroasted cereal flakes or from 
mixtures of unroasted cereal flakes'' and Customs classified 
Mueslix under HTS category 2008.92.10, which covers ``mixtures 
of fruit, nuts, and other edible plant materials'' and carried 
duty rates ranging from 4.2 to 2.1 percent ad valorem.

Explanation of provision

    The provision would require the retroactive reliquidation 
of entries between January 1, 1992, and January 1, 1998 at the 
rate applicable to HTS subheading 1904.10.00

Reason for change

    This provision would require Customs to liquidate or 
reliquidate certain entries of Mueslix cereals and refund 
excess duties paid.

Effecive date

    The effective date is the date of enactment of this Act.

   Expansion of foreign trade zone No. 143 (Chico, CA) (Section 2422)

Present law

    Current law requires that an FTZ be located within 60 miles 
or a 90-minute drive of a Customs port. The requirement is 
based on the need for U.S. Customs officials at the ports to 
periodically visit the FTZs for administrative purposes.

Explanation of provision

    The provision would waive the requirement outlined above 
for Chico, California, which is 87 miles from the nearest 
Customs port.

Reason for change

    The provision is intended to promote economic development 
in the Chico, California area without placing an unreasonable 
burden on the Customs Service.

Effective date

    This provision is effective on the date of enactment of 
this Act.

     Marking of certain silk products and containers (Section 2423)

Present law

    Section 334 of the Uruguay Round Agreements Act, the so-
called ``Breaux-Cardin rule,'' establishes that the country-of-
origin for silk fabrics and scarves is the country where the 
fabrics are made, even if they undergo dyeing, printing, 
cutting, sewing and other finishing operations in another 
country. Section 304 of the Tariff Act of 1930 requires that 
imported articles of foreign origin be marked in a manner that 
indicates to an ultimate purchaser in the United States the 
name of the country of origin of the article.

Explanation of provision

    The provision would add a new subsection (h) to section 304 
of the Tariff Act of 1930 to exempt silk fabric and scarves 
from country of origin marking requirements so that they do not 
need to be marked as having the origin of the country in which 
the fabric is produced. The provision would allow these 
products to be imported with appellations such as ``Designed in 
Italy'' and ``Cut and Sewn in Italy'' instead of ``Product of 
China'' even if the fabric is Chinese.

Reason for change

    This change is the first part of U.S. implementation of the 
settlement of a WTO dispute settlement proceeding brought by 
the European Union against the United States concerning the 
Breaux-Cardin rule.

Effective date

    The effective date is the date of enactment of this Act.

           Normal trade relations for Mongolia (Section 2424)

Present law

    At present, Mongolia's trade status is subject to the 
Jackson-Vanik amendment to title IV of the Trade Act of 1974 
(P.L. 93-618), the provision of law governing the extension of 
normal trade relations to nonmarket economy countries 
ineligible for such status as of the enactment of the Trade 
Act. A country subject to this provision may gain NTR, 
including NTR tariff treatment, only by complying with the 
freedom-of-emigration criteria under the Trade Act and by 
concluding a bilateral commercial agreement with the United 
States providing for reciprocal nondiscriminatory treatment. 
The extension of NTR is also subject to Congressional approval. 
The Trade Act authorizes the President to waive the 
requirements for full compliance with respect to a particular 
country if he determines that such a waiver will substantially 
promote the freedom-of-emigration provisions, and if he has 
received assurances that the emigration practices of the 
country will lead substantially to the achievement of those 
objectives.
    On January 23, 1991, the President issued a waiver for 
Mongolia from the Jackson-Vanik freedom-of-emigration 
requirements. NTR, then known as most-favored-nation (MFN) 
treatment, was first extended to Mongolia after the President 
signed into law a joint resolution (P.L. 102-158) on November 
13, 1991, approving of the extension of NTR to the products of 
Mongolia, pursuant to the bilateral commercial agreement. NTR 
with Mongolia continued in effect under Presidential waivers in 
subsequent years. On September 16, 1996, the President found 
Mongolia to be in full compliance with the requirements 
contained in the Jackson-Vanik Amendment.

Explanation of provision

    This provision would authorize the President to determine 
that title IV of the Trade Act of 1974 should no longer apply 
with respect to Mongolia, and afterward to proclaim the 
extension of nondiscriminatory treatment (normal trade 
relations treatment) to the products of Mongolia. On or after 
the effective date of the extension of nondiscriminatory 
treatment to the products of Mongolia, the provision 
legislatively removes application of title IV from that 
country.

Reason for change

    This provision is intended to recognize that Mongolia is in 
full compliance with the requirements contained in the Jackson-
Vanik amendment.

Effective date

    The effective date is the date of enactment of this Act.

         Enhanced cargo inspection pilot program (Section 2425)

Present law

    No provision.

Explanation of provision

    This provision would authorize the Commissioner of the 
Customs Service to establish a 1-year pilot program for fiscal 
year 1999 to provide 24-hour cargo inspection services on a 
fee-for-service basis at an international airport described in 
subsection (b). The Commissioner may extend the pilot program 
in subsequent fiscal years after fiscal year 1999 if the 
Commissioner determines that the extension is warranted.
    The international airport described in subsection (b) is a 
multi-modal international airport that is located near a 
seaport and serviced more than 185,000 tons of air cargo in 
1997.

Reason for change

    This provision is intended to allow Customs to test a fee-
for-service plan for 24-hour cargo inspection services similar 
to the fee-for-service plans it has in place for small airports 
and 24-hour package express operations. These fee-for-service 
plans enable Customs to provide certain enhanced service in 
unique circumstances where the cost of these services would 
otherwise be prohibitively expensive in terms of existing 
budgetary resources.

Effective date

    The effective date is the date of enactment of this Act.

  Payment of education costs of dependents of certain customs service 
                        personnel (Section 2426)

Present law

    No provision.

Explanation of provision

    The provision would require the Department of Defense to 
permit the dependent children of deceased U.S. Customs Aviation 
Group Supervisor Pedro J. Rodriguez attending the Antilles 
Consolidated School System in Puerto Rico, to complete their 
primary and secondary education at this school system without 
cost to such children or any parent, relative, or guardian of 
such children. The provision would further require the U.S. 
Customs Service to reimburse the Department of Defense for 
reasonable education expenses to cover these costs.

Reason for change

    Supervisor Rodriguez was killed in the line of duty during 
the rescue operations relating to Hurricane Georges in 
September 1998. This provision is intended to allow the 
dependent children of Mr. Rodriguez to complete their primary 
and secondary education.

Effective date

    This provision is effective on the date of enactment of 
this Act.

         Title III--Amendments to Internal Revenue Code of 1986

Property subject to a liability treated in same manner as assumption of 
                        liability (Section 3001)

Present law

    Present law provides that the transferor of property 
recognizes no gain or loss if the property is exchanged solely 
for qualified stock in a controlled corporation (sec. 351). The 
assumption by the controlled corporation of a liability of the 
transferor (or the acquisition of property ``subject to'' a 
liability) generally will not cause the transferor to recognize 
gain. However, under section 357(c), the transferor does 
recognize gain to the extent that the sum of the assumed 
liabilities, together with the liabilities to which the 
transferred property is subject, exceeds the transferor's basis 
in the transferred property. If the transferred property is 
``subject to'' a liability, Treasury regulations indicate that 
the amount of the liability is included in the calculation 
regardless of whether the underlying liability is assumed by 
the controlled corporation. Treas. Reg. sec. 1.357-2(a). 
Similar rules apply to reorganizations described in section 
368(a)(1)(D).
    The gain recognition rule of section 357(c) is applied 
separately to each transferor in a section 351 exchange.
    The basis of the property in the hands of the controlled 
corporation equals the transferor's basis in such property, 
increased by the amount of gain recognized by the transferor, 
including section 357(c) gain.

Reasons for change

    The tax treatment under present law is unclear in 
situations involving the transfer of certain liabilities. As a 
result, the Committee is concerned that some taxpayers may be 
structuring transactions to take advantage of the uncertainty. 
For example, where more than one asset secures a single 
liability, some taxpayers might take the position that, on a 
transfer of the assets to different subsidiaries, each 
subsidiary counts the entire liability in determining the basis 
of the asset. This interpretation arguably might result in the 
duplication of tax basis or in assets having a tax basis in 
excess of their value, resulting in excessive depreciation 
deductions and mismeasurement of income. The provision is 
intended to eliminate the uncertainty, and to better reflect 
the underlying economics of these corporate transfers.

Explanation of provision

    Under the provision, the distinction between the assumption 
of a liability and the acquisition of an asset subject to a 
liability generally is eliminated. First, except as provided in 
Treasury regulations, a recourse liability (or any portion 
thereof) is treated as having been assumed if, as determined on 
the basis of all facts and circumstances, the transferee has 
agreed to, and is expected to satisfy the liability or portion 
thereof (whether or not the transferor has been relieved of the 
liability). Thus, where more than one person agrees to satisfy 
a liability or portion thereof, only one would be expected to 
satisfy such liability or portion thereof. Second, except as 
provided in Treasury regulations, a nonrecourse liability (or 
any portion thereof) is treated as having been assumed by the 
transferee of any asset that is subject to the liability. 
However, this amount is reduced in cases where an owner of 
other assets subject to the same nonrecourse liability agrees 
with the transferee to, and is expected to, satisfy the 
liability (up to the fair market value of the other assets, 
determined without regard to section 7701(g)).
    In determining whether any person has agreed to and is 
expected to satisfy a liability, all facts and circumstances 
are to be considered. In any case where the transferee does 
agree to satisfy a liability, the transferee also will be 
expected to satisfy the liability in the absence of facts 
indicating the contrary.
    In determining any increase to the basis of property 
transferred to the transferee as a result of gain recognized 
because of the assumption of liabilities under section 357, in 
no event will the increase cause the basis to exceed the fair 
market value of the property (determined without regard to sec. 
7701(g)).
    If gain is recognized to the transferor as the result of an 
assumption by a corporation of a nonrecourse liability that 
also is secured by any assets not transferred to the 
corporation, and if no person is subject to Federal income tax 
on such gain, then for purposes of determining the basis of 
assets transferred, the amount of gain treated as recognized as 
the result of such assumption of liability shall be determined 
as if the liability assumed by the transferee equaled such 
transferee's ratable portion of the liability, based on the 
relative fair market values (determined without regard to sec. 
7701(g)) of all assets subject to such nonrecourse liability. 
In no event will the gain cause the resulting basis to exceed 
the fair market value of the property (determined without 
regard to sec. 7701(g)).
    The Treasury Department has authority to prescribe such 
regulations as may be necessary to carry out the purposes of 
the provision. This authority includes the authority to specify 
adjustments in the treatment of any subsequent transactions 
involving the liability, including the treatment of payments 
actually made with respect to any liability as well as 
appropriate basis and other adjustments with respect to such 
payments. Where appropriate, the Treasury Department also may 
prescribe regulations which provide that the manner in which a 
liability is treated as assumed under the provision is applied 
elsewhere in the Code.

Effective date

    The provision is effective for transfers on or after 
October 19, 1998. No inference regarding the tax treatment 
under present law is intended.

                        III. Votes of committee

    In compliance with section 133 of the Legislative 
Reorganization Act of 1946, the Committee states that S. 262 
was ordered favorably reported unanimously by voice vote on 
January 22, 1999.

                          IV. Budgetary impact

    In compliance with sections 308 and 403 of the 
Congressional Budget Act of 1974, and paragraph 11(a) of rule 
XXVI of the Standing Rules of the Senate, the following letter 
has been received from the Congressional Budget Office on the 
budgetary impact of the legislation:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC February 3, 1999.
Hon. William V. Roth, Jr.,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the S. 262, the 
Miscellaneous Trade and Technical Corrections Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Hester 
Grippando and Mark Grabowicz.
            Sincerely,
                                    James L. Blum, Acting Director.
    Enclosure.

               congressional budget office cost estimate

S. 262--Miscellaneous Trade and Technical Corrections Act of 1999

    Summary: S. 262, the Miscellaneous Trade and Tariff Act of 
1999, is an omnibus trade bill that would reduce receipts 
through various changes to existing trade laws, increase 
receipts by amending the IRS code with respect to the sale of a 
property subject to a liability, and increase both offsetting 
receipts collected by the Customs Service and the spending of 
such receipts. The Congressional Budget Office (CBO) and the 
Joint Committee on Taxation (JCT) estimate that S. 262 would 
increase governmental receipts by $4 million and decrease 
direct spending by $3 million over the 1999-2004 period. 
Because enacting S. 262 would affect receipts and direct 
spending, pay-as-you-go procedures would apply.
    S. 262 contains no intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments. The bill would 
impose two new private-sector mandates by establishing a new 
fee on passengers arriving in the United States abroad certain 
commercial vessels and by changing the treatment of property 
subject to liability. The costs of the new mandates would not 
exceed the threshold specified in UMRA ($100 million in 1996, 
adjusted annually for inflation) in fiscal years 1999 through 
2004.
    Estimated Cost to the Federal Government: The following 
table summarized the estimated budgetary impact of S. 262.

                                SUMMARY OF ESTIMATED BUDGETARY EFFECTS OF S. 262
                                    [By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                               CHANGES IN REVENUES
 
Estimated revenues:
    Trade provisions................................       -24       -11       -11       -12       -13       -14
    Revenue offset..................................         7        12        14        16        18        20
                                                     -----------------------------------------------------------
    Net changes in revenues.........................       -17         1         3         4         6         7
 
                                           CHANGES IN DIRECT SPENDING

Additional customs fees:
    Estimated budget authority......................        -3       -14       -15       -17       -18       -20
    Estimated outlays...............................        -3       -14       -15       -17       -18       -20
Additional spending:
    Estimated budget authority......................         3        14        15        17        18        20
    Estimated outlays...............................         3        13        15        17        18        20
Net impact on direct spending
    Estimated budget authority......................         0         0         0         0         0         0
    Estimated outlays...............................     (\1\)        -2     (\1\)     (\1\)     (\1\)     (\1\)
----------------------------------------------------------------------------------------------------------------
\1\Outlays savings of less than $500,000.
Sources: Joint Committee on Taxation and Congressional Budget Office.


    Revenues.--Title 1 of the bill would allow imports of 13.5-
inch television to enter the United States duty-free by 
reclassifying them as 13-inch televisions. CBO estimates that 
the reclassification of 13.5-inch television would reduce 
governmental receipts by $66 million over fiscal years 1999 
through 2004, net of payroll and income tax offsets.
    Subtitle A of Title II would temporarily suspend duties on 
numerous intermediary products and chemicals imported into the 
United States. CBO estimates that the provisions in SubtitleA 
would each reduce governmental receipts by less than $500,000 each 
year, net of payroll and income tax offsets, and therefore would not 
have a significant impact on the budget.
    CBO estimates that only three provisions in Subtitle B of 
Title II would have a significant impact on the budget: section 
2421, which would allow for reliquidations of certain customs 
entries, would reduce receipts by $1 million in fiscal year 
1999; section 2419, which would allow duty drawback for methyl 
tertiary-butyl ether (MTBE), would reduce receipts by $6 
million over fiscal years 1999 through 2004; and section 2420, 
which would amend current law as it relates to the substitution 
of finished petroleum derivatives, would decrease receipts by 
$10 million over fiscal years 1999 through 2004.
    Title III would amend the Internal Revenue Code with 
respect to property subject to liability. The JCT estimates 
that Title III would increase governmental receipts by $87 
million over fiscal years 1999 through 2004.
    Direct Spending.--Subtitle B of Title II would direct the 
U.S. Customs Service to collect a fee of $1.75 for each 
passenger aboard a commercial vessel arriving from Canada, 
Mexico, and certain other areas. CBO estimates that this 
provision would increase offsetting receipts by about $87 
million over fiscal years 1999 through 2004. The Customs 
Service has permanent authority to spend these collections, 
however, and we expect the agency to spend the funds mostly in 
the year in which they are collected. Thus, the net change in 
outlays would be near zero in most years. Because the 
additional spending would occur slightly later than the 
additional income, this provision would reduce direct spending 
by a total of about $3 million over the 1999-2004 period.
    Basis of estimate: For the purposes of this estimate, CBO 
assumes that S. 262 will be enacted by March 1, 1999. The 
estimate of the revenue impact of reclassifying 13.5-inch 
televisions is based on an estimate provided by the U.S. 
International Trade Commission (ITC). CBO adjusted that 
estimate to account for the narrower range of products covered 
in S. 262 and assumed the revenue loss would grow at the rate 
CBO projects for total non-petroleum imports. Estimates of the 
provisions relating to MTBE and finished petroleum derivatives 
are based on the historical volume of imports, CBO's projection 
of imports, and information and estimates provided by the U.S. 
Customs Service. the estimates of the impact of the remaining 
revenue provisions in S. 262 are based on estimates provided by 
the ITC and the U.S. Customs Service, on recent data on the 
collections of customs duties, and on information from various 
industry sources. The estimate of the revenue provision in 
Title III was provided by the JCT.
    Based on information from the Customs Service, CBO 
estimates that the $1.75 fee would apply to about 8 million 
passengers in fiscal year 2000, the first full year after 
enactment, and that the number would increase to almost 12 
million by 2004. Thus, additional fees would total about $14 
million in 2000 and would grow to about $20 million by 2004. We 
expect the Customs Service to spend these funds mostly in the 
year in which they are collected, so the net change in outlays 
would be near zero in most years.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays and governmental receipts that are subject 
to pay-as-you-go procedures are shown in the following table. 
For the purposes of enforcing pay-as-you-go procedures, only 
the effects in the current year, the budget year, and the 
succeeding four years are counted.

                          SUMMARY OF EFFECTS OF S. 262 ON DIRECT SPENDING AND RECEIPTS
                                    [By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                     1999    2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
----------------------------------------------------------------------------------------------------------------
Changes in outlays...............        0     -2      0      0      0      0      0      0      0      0      0
Changes in receipts..............      -17      1      3      4      6      7      8      9     10     12  (\1\)
----------------------------------------------------------------------------------------------------------------
Not available.

Sources: Congressional Budget Office and the Joint Committee on Taxation.

    Estimated impact on State, local, and tribal governments: 
S. 262 would impose no new intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act and would impose no 
costs on state, local, or tribal governments.
    Estimated impact on private sector: S. 262 would impose two 
new private-sector mandates. CBO has determined that section 
2418 would impose a mandate on owners of certain commercial 
vessels. JCT has determined that Title III would impose a new 
private-sector mandate by changing provisions in the Internal 
Revenue Code related to the sale of a property subject to a 
liability. Neither of the two mandates would result in a direct 
cost exceeding the statutory threshold established in UMRA 
($100 million in 1996, adjusted annually for inflation) in any 
of the first five years.
    Section 2418 would direct the Secretary of the Treasury to 
charge and collect a customs user fee of $1.75 for the arrival 
of each passenger aboard a commercial vesel from Canada, 
Mexico, a territory or possession of the United States, or any 
adjacent island. Under current law, arrivals from those areas 
are exempt from such fees. CBO estimates that the direct cost 
of the new private-sector mandate would total $87 million over 
the 1999-2004 period. Owners would probably incur minimal 
additional administrative costs and would most likely recoup 
the total cost of new mandate from passengers through an 
increase in ticket prices.
    JCT estimates that the direct cost of the private-sector 
mandate in Title III would total $87 million over the 1999-2004 
period.
    Estimate prepared by: Federal costs: Hester Grippando and 
Mark Grabowicz; Impact on the private sector; Lesley Frymier.
    Estimate approved by: Tom Woodward, Assistant Director for 
Tax Analysis; and Robert A. Sunshine, Deputy Assistant Director 
for Budget Analysis.

               V. Regulatory Impact and Unfunded Mandates

                          A. Regulatory Impact

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
legislation will not significantly regulate any individuals or 
businesses, will not impact on the personal privacy of 
individuals, and will result in no significant additional 
paperwork.

                          B. Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4). The Committee on Finance has reviewed the provisions of the 
Miscellaneous Trade and Technical Corrections Act of 1999 as 
approved by the Committee on January 22, 1999. In accordance 
with the requirements of Public Law No. 104-4, the Committee 
has determined that the revenue provisions of the bill contain 
the following private sector mandate:

          Clarify the meaning of ``subject to'' liabilities 
        under Code sec. 357(c) (bill section 3001).

    This revenue provision will involve a net private sector 
mandate totaling $67 million in fiscal years 1999-2003 and $187 
million in fiscal years 1999-2008. These amounts are no greater 
than the aggregate estimated amounts the private sector will be 
required to pay in order to comply with this private sector 
mandate during these periods. The revenue raised from this 
provision is intended to offset the budget costs of the trade 
provisions of the bill.
    The revenue provisions of the bill will not impose a 
Federal intergovernmental mandate on State, local or tribal 
governments.

       VI. Changes in Existing Law Made by the Bill, as Reported

    In the opinion of the Committee, it is necessary, in order 
to expedite the business of the Senate, to dispense with the 
requirements of paragraph 12 of rule XXVI of the Standing Rules 
of the Senate (relating to the showing of changes in existing 
law made by the bill as reported by the Committee).

                                
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