Senate Report 106-503 - TARIFF SUSPENSION AND TRADE ACT OF 2000

[Senate Report 106-503]
[From the U.S. Government Publishing Office]

Calendar No. 841
106th Congress Report
SENATE
2d Session 106-503

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

TARIFF SUSPENSION AND TRADE ACT OF 2000

_______

October 12 (legislative day, September 22), 2000.--Ordered to be
printed

_______

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

R E P O R T

[To accompany H.R. 4868]

[Including cost estimate of the Congressional Budget Office]

The Committee on Finance, to which was referred the bill
(H.R. 4868) to make technical corrections and miscellaneous
amendments to the trade laws, having considered the same,
reports favorably thereon with an amendment in the nature of a
substitute and recommends that the bill, as amended, do pass.

I. BACKGROUND

On June 1, 2000, Chairman Roth requested public comment on
a package of technical corrections, temporary duty suspensions
or reductions and other miscellaneous trade proposals
introduced during the 106th Congress and referred to the
Committee on Finance. H.R. 4868, as amended, includes many of
these bills which, based upon the comments submitted to the
Committee on Finance by the public, 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 H.R. 4868, AS AMENDED

SHORT TITLE (SECTION 1)

This section provides that this Act may be cited as the
``Tariff Suspension and Trade Act of 2000.''

TABLE OF CONTENTS (SECTION 2)

Title I--Tariff Provisions

REFERENCE (SEC. 1001(a))

Present law

No provision.

Explanation of provision

This section provides that except as otherwise expressly
provided, whenever in this title 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 a chapter, subchapter, note, additional U.S. note, heading,
subheading, or other provision of the Harmonized Tariff
Schedule of the United States (19 U.S.C. 3007).

Reason for change

This clarifies that the amendments or repeals made by this
title apply to the Harmonized Tariff Schedule of the United
States, except as otherwise provided.

EXPIRED PROVISIONS (SEC. 1001(b))

Present law

Subchapter II of Chapter 99 contains the identified
headings that have expired.

Explanation of provision

This provision strikes the identified expired headings from
Subchapter II of Chapter 99.

Reason for change

The identified headings were temporary and have expired.

HIV/AIDS DRUG (SEC. 1101)

Present law

The HIV/AIDS drug [4R-[3(2S*,3S*), 4R*]]-3-[2-Hydroxy-3-
[(3-hydroxy-2-methyl benzoyl) amino]-1-oxo-4-phenylbutyl]-5,5-
dimethyl-N-[(2-methylphenyl)methyl]-4-thiazolidinecarboxamide
(CAS No. 186538-00-1) (provided for in subheading 2930.90.90)
is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTSUS by inserting a new heading for a certain HIV/AIDS drug,
[4R-[3(2S*,3S*), 4R*]]-3-[2-Hydroxy-3-[(3-hydroxy-2-methyl
benzoyl)amino]-1-oxo-4-phenylbutyl]-5,5-dimethyl-N-[(2-
methylphenyl)
methyl]-4-thiazolidinecarboxamide (CAS No. 186538-00-1)
(provided for in subheading 2930.90.90), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical and
pharmaceutical companies to reduce costs in manufacturing this
much-needed pharmaceutical for HIV/AIDS.

HIV/AIDS DRUG (SEC. 1102)

Present law

The HIV/AIDS drug 5-[(3,5-Dichlorophenyl)thio]-4-(1-methyl
ethyl)-1(4-pyridinylmethyl)-1H-imidazole-2-methanol caramate
(as provided for in 2933.39.61) is subject to an NTR duty rate
of 10.4% ad valorem.

Explanation of provision

The provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for certain HIV/AIDS drug 5-
[(3,5-Dichlorophenyl)thio]-4-(1-methylethyl)-1-(4-
pyridinylmethyl)-1H-
imidazole-2-m ethanol carbamate (CAS No.178979-85-6) (provided
for in subheading 2933.39.61), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical and
pharmaceutical companies to reduce costs in manufacturing this
much-needed pharmaceutical for HIV/AIDS.

TRIACETONEAMINE (SEC. 1103)

Present law

Triacetoneamine, 4-piperdone 2,2,6,6 tetramethyl (CAS No.
826-36-8) (as provided for in subheading 2933.39.61) is subject
to an NTR duty rate of 9.3% (2000), 8.6% (2001), 7.9% (2002) ad
valorem.

Explanation of provision

The provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for triacetonamine, 4-piperdone
2,2,6,6 tetramethyl (CAS No. 826-36-8) (provided for in
subheading 2933.39.61) and any mixtures containing the
foregoing, as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

INSTANT PRINT FILM IN ROLLS (SEC. 1104)

Present law

Instant print film in rolls (as provided for in subheading
3702.20.00) is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for instant print film, in rolls
(provided for in subheading 3702.20.00), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. producers of instant print
film to reduce their manufacturing costs, making these products
competitive with alternative photographic technology without
jeopardizing any domestic manufacturer. The film in rolls is
used primarily by professional photographers and in other
applications not served by flat film.

COLOR INSTANT PRINT FILM (SEC. 1105)

Present law

Instant print film for color photography (provided for in
subheading 3701.20.00) is subject to an NTR duty rate of 3.7%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for instant print film for color
photography (provided for in subheading 3701.20.00) as a
temporary duty reduction to 2.8% ad valorem until December 31,
2003.

Reason for change

MIXTURES OF SENNOSIDES AND MIXTURES OF SENNOSIDES AND THEIR SALTS (SEC.
1106)

Present law

Mixtures of sennosides and sennosides and their salts
(provided for in subheading 2938.90.00) are subject to NTR duty
rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for mixtures of sennosides and
sennosides and their salts (provided for in subheading
2938.90.00), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CIBACRON RED LS-B HC (SEC. 1107)

Present law

Reactive Red 270 (CAS No. 155522-05-7) (provided for in
subheading 3204.16.30) is subject to an NTR duty rate of 10.8%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for Reactive Red 270 (CAS No.
155522-05-7) (provided for in subheading 3204.16.30), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CIBACRON BRILLIANT BLUE FN-G (SEC. 1108)

Present law

6,13-Dichloro-3,10- bis[[2-[[4-fluoro-6-[(2-
sulfonyl)amino]-1,3,5-triazin -2-yl]amino]propyl]amino]-4,11-
triphenodioxazinedisulfonic acid lithium sodium salt (CAS No.
163062-28-0) (provided for in HTS subheading 3204.16.30) is
subject to an NTR duty rate of 10.8% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for Cibacron Brilliant Blue FN-
G,6,13-Dichloro-3,10-bis[[2-[[4-fluoro-6-[(2-sulfonyl)amino]-
1,3,5triazin-2-yl]amino]propyl]amino]-4,11-
triphenodioxazinedisulfonic acid lithium sodium salt (CAS No.
163062 28 0) (provided for in HTS subheading 3204.16.30), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CIBACRON SCARLET LS-2G HC (SEC. 1109)

Present law

Reactive Red 268 (CAS No. 152397-21-2) (provided for in HTS
subheading 3204.16.30) is subject to an NTR duty rate of 10.8%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for Reactive Red (CAS No.
152397-21-2) (provided for in HTS subheading 3204.16.30), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MUB 738 INT (SEC. 1110)

Present law

2-Amino-4(4-Aminobenzoylamino) benzene sulfonic acid (CAS
No. 167614-37-1) (provided for in HTS subheading 2924.29.70) is
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for MUB 738 INT, 2-Amino-4(4-
Aminobenzoylamino) benzene sulfonic acid (CAS No. 167614-37-1)
(provided for in HTS subheading 2924.29.70), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

FENBUCONAZOLE (SEC. 1111)

Present law

a-(2-(4-Chlorophenyl)ethyl-a-phenyl-1H-1,2,4-triazole-1-
propanenitrile (Fenbuconazole)(CAS No. 1143 69-43-6) (provided
for in HTS subheading 293 3.90.06) is subject to an NTR duty
rate of 9.1% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for fenbuconazole, a-(2-(4-
Chlorophenyl)ethyl-a-phenyl-1H-1,2,4-triazole-1-propanenitrile
(Fenbuconazole) (CAS No. 114369-43-6) (provided for in HTS
subheading 2933.90.06) as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

2,6-DICHLOROTOLUENE (SEC. 1112)

Present law 2,6-Dichlorotoluene (CAS No. 118-69-4) (as provided for in
HTS subheading 2903.69.70) is subject to a NTR duty rate of
5.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 2,6-Dichlorotoluene (CAS No.
118-69-4) (provided for in HTS subheading 2903.69.70), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

3-AMINO-3-METHYL-1-PENTYNE (SEC. 1113)

Present law

3-Amino-3-methyl-1-pentyne (provided for in HTS subheading
2921.19.60) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 3-Amino-3-methyl-1-pentyne
(provided for in HTS subheading 2921.19.60) as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TRIAZAMATE (SEC. 1114)

Present law

Acetic acid, [[1-[(dimethylamino)carbonyl]-3-(1,1-
dimethyethyl) -1H-1,2,4-triazol-5-yl]thio]-, ethyl ester (CAS
No. 112143-82-5) (as provided for in HTS subheading 2933.90.17)
is subject to an NTR duty rate of 6.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for, acetic acid, [[1-
[(dimethylamino)carbonyl]-3-(1,1-dimethyethyl) -1H-1,2,4 -
triazol-5-yl]thio]-, ethyl ester (CAS No. 112143-82-5)
(provided for in HTS subheading 2933.90.17), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

METHOXYFENOZIDE (SEC. 1115)

Present law

Benzoic acid 3-methoxy-2-methyl-,2-(3,5-dimethylbenzoyl)-2-
(1,1-dimethyl ethyl)hydrazide (provided for in HTS subheading
2928.00.25) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for Benzoic acid 3-methoxy-2-
methyl-,2-(3,5-dimethylbenzoyl)-2-(1,1-dimethyl ethyl)
hydrazide (provided for in HTS subheading 2928.00.25) as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

1-FLUORO-2-NITROBENZENE (SEC. 1116)

Present law

1-Fluoro-2-nitrobenzene (CAS No. 001493-27-2) (as provided
for in HTS subheading 2904.90.30), commonly used as raw
material for a pharmaceutical intermediate, is subject to an
NTR duty rate of 5.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 1-Fluoro-2-nitrobenzene (CAS
No. 00-1493-27-2) (provided for in HTS subheading 2904.90.3 0),
as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PHBA (SEC. 1117)

Present law

p-hydroxybenzoic acid (PHBA) (CAS No. 99-96-7) (as provided
for in HTS subheading 2918.29.22), commonly used to produce
liquified crystal polymer (LCP), is subject to an NTR duty rate
of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter 11 of the
HTS by inserting a new heading for p-Hydroxybenzoic acid (PHBA)
(CAS No. 99-96-7) (provided for in HTS subheading 2918.29.22),
as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

THQ (TOLUHYDROQUINONE) (SEC. 1118)

Present law

Toluhydroquinone (CAS No. 95-71-6) (as provided for in HTS
subheading 2907.29.90), is subject to an NTR duty rate of 5.5%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for toluhydroquinone (CAS No.
95-71-6) (provided for in HTS subheading 2907.29.90) as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

2,4-DICUMYLPHENOL (SEC. 1119)

Present law

2,4-Dicumylphenol (CAS No. 2772-45-4) (as provided for in
HTS subheading 2907.19.20 or 2907.19.80) is subject to an NTR
duty rate of 5.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 2,4-Dicumylphenol (CAS No.
2772-45-4) (provided for in HTS subheading 2907.19.20 or
2907.19.80), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERTAIN CATHODE-RAY TUBES (SEC. 1120)

Present law

Certain cathode-ray data/graphic display tubes, color, with
a less than 90 degree deflection (provided for in HTS
subheading 8540.60.00) are subject to an NTR duty rate of 3% ad
valorem. These cathode-ray tubes are used in radio and radar
monitoring units in the cockpits of aircraft.

Explanation of provision

This provision would amend chapter 99, subchapter 11 of the
HTS by inserting a new heading for certain cathode-ray data/
graphic display tubes, color, with a less than 90 degree
deflection (provided for in HTS subheading 8540.60.00), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these
products to reduce costs, making the products more competitive
without jeopardizing any domestic manufacturer.

OTHER CATHODE-RAY TUBES (SEC. 1121)

Present law

Cathode-ray data/graphic tubes, color, with a phosphor dot
screen pitch smaller than 0.4 min, and with a less than 90
degree deflection (provided for in HTS subheading 8540.40.00)
are subject to an NTR duty rate of 3% ad valorem. These
cathode-ray tubes are used in aircraft cockpits to monitor the
flight variables of the aircraft.

Explanation of provision

This provision would amend chapter 99, subchapter Il of the
HTS by inserting a new heading for cathode-ray data/graphic
display tubes, color, with a phosphor dot screen pitch smaller
than 0.4 mm, and with a less than 90 degree deflection on
cathode (provided for in HTS subheading 8540.40.00), to reduce
the duty from 3.0% to 1.0% until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these
products to reduce costs, making the products more competitive
without jeopardizing any domestic manufacturer.

CERTAIN RAW COTTON (SEC. 1122)

Present law

Imported cotton fiber of lengths less than 1 and \1/8\th
inches is currently duty free. Certain categories of raw cotton
imported into the United States are subject to a tariff. These
tariffs were established based on varying staple lengths of
cotton.

Explanation of provision

This provision would amend chapter 52 of the HTS to provide
duty-free treatment to certain raw cotton in specified lengths.
The threshold for imposing tariffs on cotton tariffs would be
increased from 1 and \1/8\th inches to 1 and \1/4\th inches
over a period of three years.

Reason for change

The current threshold for cotton tariffs was set in 1930
when the bulk of cotton fiber traded was shorter than 1 and \1/
8\ths inches in length. Over time, staple lengths have tended
to increase, moving the majority of cotton that would be
imported into the U.S. from a category without a tariff into a
category with a tariff. In addition, importers are not always
certain of the staple length of the cotton they are importing.
It may be slightly longer than advertised, subjecting the
importer to unanticipated tariffs. As a result of these
concerns, the Committee intends to increase the tariff
threshold length to 1 and \1/4\th inches in recognition of the
prevalence of longer fibers in today's cotton trade.

RHINOVIRUS DRUG (SEC. 1123)

Present law

A certain Rhinovirus drug, trans-(2R, 3S,4S,5S)-(4-(2-(4-
Fluorobenzyl)-6- methyl-5[(5-methylisoxazole-3-carbonyl)amino]-
4-oxoheptanoylamino)-5-(2-oxopyrrolidin-3-yl) pent-2-enoic acid
ethyl ester (CAS No. 223537-30-2) (provided for in HTS
subheading 2934.90.39), is subject to an NTR duty rate of 12.1%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for a certain Rhinovirus drug,
trans-(2R, 3S,4S,5S)-(4-(2-(4-Fluorobenzyl)-6-methyl-5[(5-
methyl
isoxazole-3-carbonyl)amino]-4-oxoheptanoylamino)-5-(2-
oxopyrrolidin-3-yl) pent-2-enoic acid ethyl ester (CAS No.
223537-30-2) (provided for in HTS subheading 2934.90.39), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical and
pharmaceutical manufacturers to reduce costs, making these
industries more competitive without jeopardizing any domestic
manufacturer.

BUTRALIN (SEC. 1124)

Present law

N-sec-butyl-4-tert-butyl-2,6-dinitroaniline (CAS No. 33629-
47-9) (as provided for in HTS subheadings 2921.42.90 or
3808.31.15) and any mixtures containing the foregoing are
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for N-sec-butyl-4-tert-butyl-
2,6-dinitroanitine (CAS No. 33629-47-9)(provided for in HTS
subheadings 2921.42.90 or 3808.31.15) and any mixtures
containing the foregoing, as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BRANCHED DODECYLBENZENE (SEC. 1125)

Present law

Branched dodecylbenzene (CAS No. 123-01-3) (provided for in
HTS subheading 2902.90.30) is subject to an NTR duty rate of
12.8% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter 11 of the
HTS by inserting a new heading for branched dodecylbenzene (CAS
No. 123-01-3) (provided for in HTS subheading 2902.90.30), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERTAIN FLUORINATED COMPOUND (SEC. 1126)

Present law

(4-Fluorophenyl) [3-[(4-fluorophenyl) ethynyl]phenyl]
(provided for in HTS subheading 2914.70.40) is subject to an
NTR duty rate of 8.2% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for (4-Fluorophenyl) [3-[(4-
fluorophenyl) ethynyl]phenyl] (provided for in HTS subheading
2914.70.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERTAIN LIGHT ABSORBING PHOTO DYE (SEC. 1127)

Present law

4-chloro-3-[4-[[4- (dimethylamino)phenyl]methylene-4,5-
dihydro-3-methyl-5-oxo-1H-pyrazol-1-1], compound with pyridine
(1:1) (as provided for in HTS subheading 2934.90.90), commonly
used as light absorbing photo dye, is subject to an NTR duty
rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 4-chloro-3-[4-[[4-
(dimethylamino)phenyl]methylene -4,5-dihydro-3-methyl-5-oxo-1H-
pyrazol-1-1], compound with pyridine (1:1) (provided for in HTS
subheading 2934.90.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers of
photographic dyes to reduce costs, making the chemicals and
downstream product industries more competitive without
jeopardizing any domestic manufacturer.

FILTER BLUE GREEN PHOTO DYE (SEC. 1128)

Present law

Iron chloro 5,6-diamino-1,3-naphthalene disulfonate
complexes (CAS No. 85187-44-6) (as provided for in HTS
subheading 2942.00.10), used as filter blue green photo dye, is
subject to an NTR duty rate of 10% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for iron chloro 5,6-diamino-1,3-
naphthalene disulfonate complexes (CAS No. 85187-44-6),
(provided for in HTS subheading 2942.00.10), used as filter
blue green photo dye, as duty free until December 31, 2003.

Reason for change

CERTAIN LIGHT ABSORBING PHOTO DYES (SEC. 1129)

Present law

4-[4-[3-[4-Dimethylamino)phenyl]-2-propenylidene]-4,5-
dihydro-3-methyl-5-oxo-1H-pyrazol-1-yl]benzenesulfonic acid,
compound with N,N-diethylethanamine(1:1) (CAS No. 109940-17-2);
4-[3-[3-Carboxy-5-hydroxy-1-(4-sulfophenyl)-1H-pyrazole-4-
yl]-2-propenylidene] - 4,5-dihydro-5-oxo-1-(4-sulfophenyl)-1H-
pyrazole-3-carboxylic acid, sodium salt, compound with N,N-
diethylethanamine (CAS No. 90066-12-9);
4-[4,5-dihydro-4-[5-hydroxy-3-methyl-1-(4-sulfophenyl)-1H
pyrazol-4-yl]methylene-3-methyl-5-oxo-1H-pyrazol-1-
yl]benzenesulfonic acid, dipotassium salt (CAS No. 94266-02-1);
4-[4-[[4-(Dimethylamino)-phenyl]methylene]-4,5-dihydro-3-
meth-yl-5-oxo-1H-pyrazol-l-yl]benzenesulfonic acid, potassium
salt (CAS No. 27268-31-1);
4,5-dihydro-5-oxo-4-[(phenylamino)methylene]-1-(4-
sulfophenyl)-1H-pyrazole-3-carboxylic acid, disodium salt; and
4-[5-[3-Carboxy-5-hydroxy - 1-(4-sulfophenyl)-1H-pyrazol-4-yl]-
2,4-pentadienylidene]-4,5-dihydro-5-oxo-1-(4-sulfophenyl)-1H-
pyrazole-3-car-boxylicacid, tetrapotassiurn salt (CAS No.
134863-74-4) (all of the foregoing provided for in subheading
2933.19.30) (CAS No. 134863-74-4) (as provided for in HTS
subheading 2933.19.30), commonly used as light absorbing photo
dyes, are subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for Benzenesulfonic acids (CAS
No. 134863-74-4, 109940-17-2, 9000466-12-9, 94266-02-1, 27268-
31-1, 134863-74-4) (provided for in HTS subheading 2933.19.30),
as duty free until December 31, 2003.

Reason for change

4,4,-DIFLUOROBENZOPHENONE (SEC. 1130)

Present law

Bis(4-fluorophenyl)methanone (CAS No. 345-92-6) (as
provided for in HTS subheading 2914.70.40), is subject to an
NTR duty rate of 4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for Bis(4-fluorophenyl)methanone
(CAS No. 345 92 6) (provided for in HTS subheading 2914.70.40),
as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

A FLOUORINATED COMPOUND (SEC. 1131)

Present law

(4-Fluorophenyl)phenylmethanone (CAS No. 345-83-5) (as
provided for in HTS subheading 2914.70.40), is subject to an
NTR duty rate of 4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for (4-Fluorophenyl)
phenylmethanone (CAS No. 345-83-5) (provided for in HTS
subheading 2914.70.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DiTMP (SEC. 1132)

Present law

Di-trimethylolpropane (as provided for in HTS subheading
2909.49.60), is subject to an NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for di-trimethylolpropane
(DiTMP) (provided for in HTS subheading 2909.49.60), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

HPA (SEC. 1133)

Present law

Hydroxypivalic acid (HPA) (as provided for in HTS
subheading 2918.19.90), is subject to an NTR duty rate of 4% ad
valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for hydroxypivalic acid
(provided for in HTS subheading 2918.19.90), as duty free until
December 31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

APE (SEC. 1134)

Present law

Allyl pentaerythritol (APE) (as provided for in HTS
subheading 2909.49.60), is subject to an NTR duty rate of 8.9%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for allyl pentaerythritol
(provided for in HTS subheading 2909.49.60), as duty free until
December 31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TMPDE (SEC. 1135)

Present law

Trimethylolpropane diallyl ether (TMPDE) (as provided for
in HTS subheading 2909.49.60), is subject to an NTR duty rate
of 8.9% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for trimethylolpropane diallyl
ether (provided for in HTS subheading 2909.49.60), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TMPME (SEC. 1136)

Present law

Trimethylolpropane monoallyl ether (TMPME) (provided for in
HTS subheading 2909.49.60) is subject to an NTR duty rate of
8.9% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for trimethylolpropane monoallyl
ether (provided for in HTS subheading 2909.49.60), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TUNGSTEN CONCENTRATES (SEC. 1137)

Present law

Tungsten concentrates (provided for in HTS subheading
2611.00.60) are subject to an NTR duty rate of 7.16% ad
valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for tungsten concentrates
(provided for in HTS subheading 2611.00.60), as duty free
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

2 CHLORO AMINO TOLUENE (SEC. 1138)

Present law

2-Chloro-p-toluidine (CAS No. 95-74-9) (provided for in HTS
subheading 2921.43.80) is subject to an NTR duty rate of 14.5%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 2-Chloro-p-toluidine (CAS
No. 95-74-9) (provided for in HTS subheading 2921.43.80), as
duty free until December 31, 2004.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERTAIN ION-EXCHANGE RESINS (SEC. 1139)

Present law

Certain ion-exchange resins, comprising of a copolymer of
2-propenenitrile (CAS No. 130353-60-5, 109961-42-4, 135832-76-
7) (provided for in HTS subheading 3914.00.60) is subject to an
NTR duty rate of 3.9% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for a certain ion-exchange
resins, comprising of a copolymer of 2-propenenitrile (CAS No.
130353-60-5, 109961-42-4, 135832-76-7) (provided for in HTS
subheading 3914.00.60), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

11-AMINOUNDECANOIC ACID (SEC. 1140)

Present law

11-aminoundecanoic acid (as provided for in HTS subheading
2922.49.40), is subject to NTR duty rate of 4.2% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 11-aminoundecanoic acid
(provided for in HTS subheading 2922.49.40), with duty
reduction to 1.6% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DIMETHOXY BUTANONE (DMB) (SEC. 1141)

Present law

4,4-Dimethoxy-2-butanone (CAS No. 5436-21-5) (as provided
for in HTS subheading 2914.50.50), is subject to an NTR duty
rate of 4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 4,4-Dimethoxy-2-butanone
(CAS No. 5436-21-5) (provided for in HTS subheading
2914.50.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DICHLORO ANILINE (DCA) (SEC. 1142)

Present law

2,6-Dichloro aniline (2,6-dichlorobenzenamine) (DCA) (CAS
No. 608-31-1) (provided for in HTS subheading 2921.42.90) is
subject to an NTR duty rate of 11.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 2,6-Dichloro aniline (2,6-
dichlorobenzenamine) (DCA) (CAS No. 608-31-1) (provided for in
HTS subheading 2921.42.90), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DIPHENYL SULFIDE (SEC. 1143)

Present law

Diphenyl sulfide (CAS No. 139-66-2) (as provided for in HTS
subheading 2930.90.29), is subject to an NTR duty rate of 6.5%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for diphenyl sulfide (CAS No.
139-66-2) (provided for in HTS subheading 2930.90.29), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TRIFLURALIN (SEC. 1144)

Present law

a,a,a-Trifluoro-2,6-dinitro-p-tolu-idine (CAS No. 1582-09-
8) (provided for in HTS subheading 2921.43.15) is subject to an
NTR duty rate of 6.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for a,a,a-Trifluoro-2,6-dinitro-
p-tolu-idine (CAS No. 1582-09-8) (provided for in subheading
2921.43.15), with a duty reduction to 5% until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DIETHYL IMIDAZOLIDINONE (DMI) (SEC. 1145)

Present law

1,3-Diethyl-2-imidazolidinone (CAS No. 80-73-9) (as
provided for in HTS subheading 2933.29.90), is subject to an
NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 1,3-Diethyl-2-
imidazolidinone (CAS No. 80-73-9) (provided for in HTS
subheading 2933.29.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

ETHALFLOURALIN (SEC. 1146)

Present law

Ethalflouralin, N-ethyl-N-(2methyl-2-propenyl)-2, 6-
dinitro-4-(trifluoromethyl) benzenamine (CAS No. 55283-68-6)
(as provided for in HTS subheading 2921.43.80), is subject to
an NTR duty rate of 12.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for ethalfluralin, N-ethyl-N-
(2methyl-2-propenyl)-2, 6-dinitro-4-
(trifluoromethyl)benzenamine (CAS No. 55283-68-6) (provided for
in HTS subheading 2921.43.80), with a duty reduction to 7.9%
until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BENFLURALIN (SEC. 1147)

Present law

N-butyl-N-ethyl-2,6-dinitro-4-
(trifluoromethyl)benezenamine; N-butyl-N-ethyl-alpha, alpha,
alpha-trifluoro-2-6-dinitro-p-toluidine (CAS No. 1861-40-1) (as
provided for in HTS subheading 2921.43.80), is subject to an
NTR duty rate of 12.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for N-butyl-N-ethyl-2,6-dinitro-
4-(trifluoromethyl) benezenamine; N-butyl-N-ethyl-alpha, alpha,
alpha-trifluoro-2-6-dinitro-p-toluidine (CAS No. 1861-40-1)
(provided for in HTS subheading 2921.43.80), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

3-AMINO-5-MERCAPTO-1,2,4-TRIAZOLE (AMT) (SEC. 1148)

Present law

3-amino-5-mercapto-1,2,4-triazole (AMT) (CAS No. 16691-43-
3) (provided for in HTS subheading 2933.90.97) is subject to
NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 3-amino-5-mercapto-1,2,4-
triazole (AMT) (CAS No. 16691-43-3) (provided for in HTS
subheading 2933.90.97), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DIETHYL PHOSPHOROCHLORIDIOTHIOATE (DEPCT) (SEC. 1149)

Present law

Diethyl phosphorochloridiothioate, 0,0-dethyl phosphoro-
choridothioate (DEPCT) (CAS No. 2524-04-1) (as provided for in
HTS subheading 2920.10.50), is subject to NTR duty rate of 3.7%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for diethyl
phosphorochoridothioate, 0,0-dethyl phosphoro- choridothioate
(DEPCT) (CAS No. 2524-04-1) (provided for in HTS subheading
2920.10.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

REFINED QUINOLINE (SEC. 1150)

Present law

Chemical refined quinoline (CAS No. 91-22-5) (provided for
in HTS subheading 2933.40.70) is subject to an NTR duty rate of
10.6% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for refined quinoline (CAS No.
91-22-5) (provided for in HTS subheading 2933.40.70), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DMDS (SEC. 1151)

Present law

2,2-dithiobis(8-fluoro-5-methoxy)[1,2,4] triazolo[1,5-c]
pyrimidine (DMDS) (CAS No. 166524-74-9) (as provided for in HTS
subheading 2933.59.80), is subject to an NTR duty rate of 10.4%
ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 2,2-dithiobis(8-fluoro-5-
methoxy)[1,2,4] triazolo[1,5-c] pyrimidine (DMDS) (CAS No.
166524-74-9) (provided for in HTS subheading 2933.59.80), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

VISION INSPECTION SYSTEMS (SEC. 1152)

Present law

Automated visual inspection systems of a kind used for
physical inspection of capacitors (as provided for in HTS
subheading 9031.49.90, 9031.80.80), are subject to NTR duty
rate of 3.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for automated visual inspection
systems of a kind used for physical inspection of capacitors
(provided for in HTS subheading 9031.49.9000, 9031.80.8085), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these
products to reduce costs, making the products more competitive
without jeopardizing any domestic manufacturer.

ANODE PRESSES (SEC. 1153)

Present law

Anode presses used for pressing tantalum powder into anodes
(provided for in HTS subheading 8462.99.80) are subject to an
NTR duty rate of 2.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for anode presses used for
pressing tantalum powder into anodes (provided for in HTS
subheading 8462.99.80), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these
products to reduce costs, making the products more competitive
without jeopardizing any domestic manufacturer.

TRIM AND FORM MACHINES (SEC. 1154)

Present law

Trimming and forming machines used in the manufacture of
surface mounted electronic components other than semi-
conductors prior to marking (as provided for in HTS subheading
8463.30.00, 8462.21.80, 8462.29.80) is subject to an NTR duty
rate of 4.4% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for Trimming and forming
machines used in the manufacture of surface mounted electronic
components other than semi-conductors prior to marking
(provided for in HTS subheading 8463.30.00, 8462.21.80,
8462.29.80), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers of these
products to reduce costs, making the products more competitive
without jeopardizing any domestic manufacturer.

CERTAIN ASSEMBLY MACHINES (SEC. 1155)

Present law

Assembly machines used for assembling processed anodes to
lead frames (as provided for in HTS subheading 8479.89.97) are
subject to an NTR duty rate of 2.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for assembly machines used for
assembling processed anodes to lead frames (provided for in HTS
subheading 8479.89.97), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the products more
competitive without jeopardizing any domestic manufacturer.

THIONYL CHLORIDE (SEC. 1156)

Present law

Thionyl chloride (CAS No. 7719-09-7) (provided for in HTS
subheading 2812.10.50) is subject to an NTR duty rate of 3.7%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the Harmonized Tariff Schedule of the United States (HTS) by
inserting a new heading for thionyl chloride (CAS No. 7719-09-
7) (provided for in HTS subheading 2812.10.50), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PHENYLMETHYL HYDRAZINECARBOXYLATE (SEC. 1157)

Present law

Phenylmethyl hydrazinecarboxylate (CAS No. 5331-43-1)
(provided for in HTS subheading 2928.00.25) is subject to an
NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for phenylmethyl
hydrazinecarboxylate (CAS No. 5331-43-1) (provided for in
subheading 2928.00.25), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs of manufacturing the insecticide in the United
States, making the final product more affordable to U.S.
farmers without jeopardizing any domestic manufacturer.

TRALKOXYDIM FORMULATED (SEC. 1158)

Present law

2-[1-(Ethoxyimino)-propyl]-3-hy-droxy-5-(2,4,6-
trimethylphenyl) -2-cyclohexen-1-one (Tralkoxydim) (CAS No.
87820-88-0) (provided for in HTS subheading 2925.20.60) and
mixtures of 2-[1-(Ethoxyimino) - propyl]-3-hydroxy-5-(2,4,6-
trimethylphenyl)-2-cyclohexen-1-one (Tralkoxydim) (CAS No.
87820-88-0) and application adjuvants (provided for in HTS
subheading 3808.30.15) are subject to an NTR duty rate of 6.5%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting the new headings 2-[1-(Ethoxyimino)-
propyl]-3-hy-droxy-5-(2,4,6-trimethylphenyl)-2-cyclohexen-1-one
(Tralkoxydim) (CAS No. 87820-88-0) (provided for in HTS
subheading 2925.20.60) and mixtures of 2-[1-(Ethoxyimino)-
propyl]-3-hydroxy-5-(2,4,6-trimethylphenyl)-2-cyclohexen-1-one
(Tralkoxydim) (CAS No. 87820-88-0) and application adjuvants
(provided for in HTS subheading 3808.30.15), at a reduced rate
duty until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

KNOO2 (SEC. 1159)

Present law

2-[2,4-Dichloro-5-hydroxyphenyl)-hydrazono]-1-piperidine-
carboxylic acid, methyl ester (CAS No. 159393-46-1) (provided
for in HTS subheading 2933.39.61) is subject to NTR duty rate
of 6.5-8.6% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-[2,4-Dichloro-5-
hydroxyphenyl)-hydrazono]-1-piperidine-carboxylic acid, methyl
ester (CAS No. 159393-46-1) (provided for in HTS subheading
2933.39.61), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs of manufacturing the herbicide in the United
States, making the final product more affordable to U.S.
farmers without jeopardizing any domestic manufacturer.

KL084 (SEC. 1160)

Present law

2-Imino-1-methoxycarbonyl-piperidine hydrochloride (KL084)
(CAS No. 159393-48-3) (provided for in HTS subheading
2933.39.61) is subject to an NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the Harmonized Tariff Schedule of the United States by
inserting a new heading for 2-Imino-1-methoxycarbonyl-
piperidine hydrochloride (KL084) (CAS No. 159393-48-3)
(provided for in HTS subheading 2933.39.61), with a duty
reduction to 5.4% ad valorem for 2000, to 4.7% for 2001, to
4.0% for 2002, and to 3.3% for 2003.

Reason for change

IN-N5297 (SEC. 1161)

Present law

2-(Methoxycarbonyl)-benzylsulfonamide (IN N5297) (CAS No.
59777-72-9) (provided for in HTS subheading 2935.00.75) is
subject to NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-(Methoxycarbonyl)-
benzylsulfonamide (IN N5297) (CAS No. 59777-72-9) (provided for
in HTS subheading 2935.00.75), as duty free until December 31,
2003.

Reason for change

AZOXYSTROBIN FORMULATED (SEC. 1162)

Present law

Methyl(E) -2-[2-[6-(2-cyanophenoxy)-pyrimidin-4-
yloxy]phenyl]-3-methoxyacrylate (CAS No. 131860 33 8) (provided
for in HTS subheading 3808.20.15) is subject to an NTR duty
rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Methyl(E)-2-[2-[6-(2-
cyanophenoxy)-pyrimidin-4-yloxy]phenyl]-3-methoxyacrylate (CAS
No. 13860-33-8) (provided for in HTS subheading 3808.20.15),
with a temporary duty reduction to 5.7% ad valorem until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

FUNGAFLOR 500 EC (SEC. 1163)

Present law

Mixtures of enilconazole (CAS No. 35554-44-0 or 73790-28-0)
and application adjuvants (provided for in HTS subheading
3808.20.15) is subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Mixtures of enilconazole
(CAS No. 35554-44-0 or 73790-28-0) and application adjuvants
(provided for in HTS subheading 3808.20.15), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

NORBLOC 7966 (SEC. 1164)

Present law

2-(2,-Hydroxy-5,-methacrylyloxyethylphenyl)-2H-
benzotriazole (CAS No. 96478-09-0 and 73790-28-0) (provided for
in HTS subheading 2933-90-79), is subject to NTR duty rate of
9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-(2,-Hydroxy-5,-
methacrylyloxyethylphenyl)-2H-benzotriazole (CAS No. 96478-09-0
and 73790-28-0) (provided for in HTS subheading 2933.90.79), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

IMAZALIL (SEC. 1165)

Present law

Enilconazole (CAS No. 35554-44-0) (provided for in HTS
subheading 2933.29.35), is subject to NTR duty rate of 9.3% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Enilconazole (CAS No.
355540-44-0) (provided for in HTS subheading 2933.29.35), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

1,5-DICHLOROANTHRAQUINONE (SEC. 1166)

Present law

1,5-Dichloroanthraquinone (CAS No. 82-46-2) (as provided
for in HTS subheading 2914.70.40) is subject to NTR duty rate
of 7.7% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for 1,5-Dichloroanthraquinone
(CAS No. 82-46-2) (as provided for in HTS subheading
2914.70.40), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

ULTRAVIOLET DYE (SEC. 1167)

Present law

9-Anthracene-carboxylic acid, (triethoxysilyl)-methyl ester
(provided for in HTS subheading 2931.00.30) is subject to an
NTR duty rate of from 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 9-Anthracene-carboxylic
acid, (triethoxysilyl)-methyl ester (provided for in HTS
subheading 2931.00.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

VINCLOZOLIN (SEC. 1168)

Present law

3-(3,5-Dichlorophenyl)-5- ethenyl-5-methyl-2,4-
oxazolidinedione (CAS No. 50471-44-8) (provided for in FITS
subheading 2934.90.12) is subject to an NTR duty rate of 6.5%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 3-(3,5-Dichlorophenyl)-
5- ethenyl-5-methyl-2,4-oxazolidinedione (CAS No. 50471-44-8)
(provided for in HTS subheading 2934.90.12), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TEPRALOXYDIM (SEC. 1169)

Present law

Mixtures of E-2-[I-[[(3-chloro-2-pro-penyl)oxy]-
imino]propyl]-3-hydroxy-5-(tetrahydro-2H-pyran-4-yl)-2-cyclo-
hexen-1-one (CAS No. 149979-41-9) and application adjuvants
(provided for in subheading 3808.30.50) is subject to an NTR
duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Mixtures of E-2-[1-[[(3-
chloro-2-pro-penyl)oxy]-imino]propyl]-3-hydroxy-5-(tetrahydro-
2H-pyran-4-yl)-2-cyclo-hexen-1 -one (CAS No. 149979-41-9) and
application adjuvants (provided for in subheading 3808.30.50),
as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PYRIDABEN (SEC. 1170)

Present law

4-Chloro-2-(1,1-dimethylethyl)-5-(((4-(1,1-
dimethylethyl)phenyl)-methyl)thio)-3-(2H)-pyridazinone (CAS No.
96489-71-3) (provided for in HTS subheading 2933.90.22) is
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4-Chloro-2(1, 1-
dimethylethyl)-5 (((4-(1, 1-dimethylethyl)phenyl)-methyl)thio)-
3-(2H)-pyridazinone (CAS No. 96489-71-3) (provided for in HTS
subheading 2933.90.22), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

2-ACETYLNICOTINIC ACID (SEC. 1171)

Present law

2-Acetylnicotinic acid (CAS No. 89942-59-6) (provided for
in HTS subheading 2933.39.61) is subject to NTR duty rate of
9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-Acetylnicotinic acid
(CAS No. 89942-59-6) (provided for in HTS subheading
2933.39.61), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

SAMe (SEC. 1172)

Present law

Food supplement preparation of S-adenosylmethionine 1,4-
butanedisulfonate (CAS No. 101020-79-5) (provided for in HTS
subheading 2106.90.99) is subject to an NTR duty rate of 6.4%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Food supplement
preparation of S-adenosylmethionine 1,4-butanedisulfonate (CAS
No. 101020-79-5) (provided for in HTS subheading 2106.90.99),
with a duty reduction to 5.5%.

Reason for changes

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PROCION CRIMSON H-EXL (SEC. 1173)

Present law

1,5-Naphthalenedisulfonic acid, 2-((8-((4-chloro-6-((3-
(((4-choloro-6-((7-((1,5-disulfo-2-naphthalenyl)azo)-8-hydroxy-
3,6-disulfo-1-naphthlenyl)amino)-1,3,5-triazin2-yl)
amino)methyl phenyl)amino)-1,3,5-triazin-2-yl)amino)-l-hydroxy-
3, 6-disulfo-2-naphthalenyl)azo)-, octa-(CAS No. 186554-26-7)
(provided for in HTS subheading 3204.16.30) is subject to NTR
duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 1,5-
Naphthalenedisulfonic acid, 2-((8-((4-chloro-6-((3-(((4-
choloro-6-((7((1,5-disulfo-2-naphthalenyl)azo)-8-hydroxy-3,6-
disulfo-1-naphth
lenyl)amino)-1,3,5-triazin-2-yl)amino)methyl)phenyl)amino)-
1,3,5-triazin-2-yl)amino)-1-hydroxy-3, 6-disulfo-2-
naphthalenyl) azo)-,octa- (CAS No. 186554-26-7) (provided for
in HTS subheading 3204.16.30), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DISPERSOL CRIMSON SF GRAINS (SEC. 1174)

Present law

Mixture of 3-phenyl-7-(4-propoxyphenyl)benzo-(1,2-b:4,5-
b,)-difuran-2,6-dione (CAS No. 79694-17-0); 4-(2,6-dihydro-2,6-
dioxo)-7-phenylbenzo-(1,2-b:4,5-b,)-difuran-3-ylphenoxyacetic
acid, 2-ethoxyethyl ester (CAS No. 126877-05-2); 4-(2,6-
dihydro-2,6-dioxo-7-(4-propoxphenyl)-benzo-(1,2-b:4,5-b,)-
difuran-3-y l) phenoxy)phenox
y)-aceticacid, 2-ethoxyethyl ester (CAS No. 126877-06-3) (the
foregoing mixture provided for in subheading 3204.11.35) is
subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Mixture of 3-phenyl-7-
(4-propoxyphenyl)benzo-(1,2-b:4,5-b,)-difuran-2,6-dione (CAS
No. 79694-17-0); 4-(2,6-dihydro-2,6-dioxo)-7-phenylbenzo-(1,2-
b:4,5-b,)-difuran-3-ylphenoxyacetic acid, 2-ethoxyethyl ester
(CAS No. 126877-05-2); 4-(2,6-dihydro-2,6-dioxo-7-(4-
propoxphenyl)-benzo-(1,2-b:4,5-b,)-difuran-3-yl)-
phenoxy)phenoxy)-aceticacid, 2-ethoxyethyl ester (CAS No.
126877-06-3) (the foregoing mixture provided for in subheading
3204.11.35), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PROCION NAVY H-EXL (SEC. 1175)

Present law

Procion Navy H-EXL 9902.32.09, a mixture of 2,7-
Naphthalenedisulfonic acid, 4-amino-3,6-bis[[5-[[4-chloro-6-
[(2-methyl-4-sulfophenyl)amino]- 1,3,5-triazin-2-yl]amino]-2-
sulfophenyl]azo]-5-hydroxy-, hexasodium salt (CAS No. 186554-
27-8); and 1,5-Naphthalenedisulfonic acid, 2-((8-((4-chloro-6-
((3-(((4-chloro-6((7-((1,5-disulfo-2-naphthalenyl)azo)-8-
hydroxy-3,6-disulfo-1-naphthlenyl)amino)-1,3,5-triazin-2-
yl)amino)methyl)phenyl)amino)-1,3,5-triazin-2-yl)amino)-1-
hydroxy-3,6 -disulfo-2-naphthalenyl)azo)-, octa- (CAS No.
186554-26-7) (provided for in subheading 3204.16.30) is subject
to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Procion Navy H EXL, a
mixture of 2,7-Naphthalenedisulfonic acid, 4-amino-3,6-bis[[5-
[[4-chloro-6-[(2-methyl-4-sulfophenyl) amino]-1,3,5 -triazin-2-
yl]amino] -2-sulfophenyl]azo]-5-hydroxy-, hexasodiurn salt (CAS
No. 186554-27-8); and 1,5-Naphthalenedisulfonic acid, 2-((8-
((4-chloro-6-((3-(((4-chloro-6((7-((1,5-disulfo-2-
naphthalenyl)azo)-8-hydroxy-3,6-disulfo-1-naphthlenyl)amino)-
1,3,5-triazin-2-yl)amino)methyl)phenyl)
amino)-1,3,5-triazin-2-yl)amino)-1-hydroxy-3,6-disulfo-2-
naphthalenyl)azo)-, octa- (CAS No. 186554-26-7) (provided for
in HTS subheading 3204.16.30), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PROCION YELLOW H-EXL (SEC. 1176)

Present law

Reactive Yellow 138:1 mixed with non-color dispersing
agent, anti-dusting agent and water (CAS No. 72906-25-3)
(provided for in HTS subheading 3204.16.30) is subject to NTR
duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Reactive Yellow 138:1
mixed with non-color dispersing agent, anti-dusting agent and
water (CAS No. 72906-25-3) (provided for in HTS subheading
3204.16.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

2-PHENYLPHENOL (SEC. 1177)

Present law

2-phenylphenol (CAS No. 90-43-7) (provided for in HTS
subheading 2907.19.80) is subject to an NTR duty rate of 5.5%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-Phenylphenol (CAS No.
90-43-7) (provided for in HTS subheading 2907.19.80), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

2-METHOXY-1-PROPENE (SEC. 1178)

Present law

2-Methoxy-1-propene (CAS No. 116-11-0) (provided for in HTS
subheading 2909.19.18) is subject to an NTR duty rate of 5.5%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-Methoxy-I-propene (CAS
No. 116-11-0) (provided for in HTS subheading 2909.19.18), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

3,5-DIFLUOROANILINE (SEC. 1179)

Present law 3,5-Difluroaniline (CAS No. 372-39-4) (provided
for in HTS subheading 2921.42.65) is currently subject to NTR
duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 3,5-Difluroaniline (CAS
No. 372-39-4) (provided for in HTS subheading 2921.42.65), with
staged temporary duty reductions to ad valorem rate of 7.4% for
calendar years 2000 and 2001, 6.7% for calendar year 2002, and
6.3% for calendar year 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

QUINCLORAC (SEC. 1180)

Present law

3,7-Dichloro-8-quinoline carboxylic acid (CAS No. 84087-01-
4) (provided for in HTS subheading 2933.40.30) is currently
subject to NTR duty rate of 8.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 3,7-Dichloro-8-quinoline
carboxylic acid (CAS No. 84087-01-4) (provided for in HTS
subheading 2933.40.30), with staged temporary duty reductions
to ad valorem rate of 6.8% for calendar years 2000 and 2001,
5.9% for calendar year 2002, and 5.4% for calendar year 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DISPERSOL BLACK XF GRAINS (SEC. 1181)

Present law

Mixture of Disperse blue 284, Disperse brown 19 and
Disperse red 311 with non-color dispersing agent (provided for
in HTS subheading 3204.11.35) is subject to NTR duty rate of
9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting the new subheading for Dispersol Black XF
Grains, mixture of Disperse blue 284, Disperse brown 19 and
Disperse red 311 with non-color dispersing agent (provided for
in HTS subheading 3204.11.35) as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

FLUROXYPYR, 1-METHYLHEPTYL ESTER (FME) (SEC. 1182)

Present law

Fluroxypyr 1-methylheptyl ester (1-Methylheptyl ((4 amino-
3,5-dichloro-6-fluoro2-pyridinyl)oxy)acetate) (CAS No. 81406-
37-3) (provided for in HTS subheading 2933.39.25) is subject to
NTR duty rate of 9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for fluroxypyr 1-
methylheptyl ester (1-Methylheptyl ((4 amino-3,5-dichloro-6-
fluoro-2-pyridinyl)oxy)acetate) (CAS No. 81406-37-3) (provided
for in HTS subheading 2933.39.25), as duty free until December
31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

SOLSPERSE 17260 (SEC. 1183)

Present law

12-Hydroxyoctadecanoic acid, reaction product with N,N-
dimethyl-1,3-propanediamine, dimethyl sulfate, quaternized, 60%
solution in toluene (CAS No. 70879-66-2) (provided for in HTS
subheading 3824.90.28) is subject to NTR duty rate of 9.3% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 12-Hydroxyoctadecanoic
acid, reaction product with N,N-dimethyl-1, 3-propanediamine,
dimethyl sulfate, quaternized, 60% solution in toluene (CAS No.
70879-66-2) (provided for in HTS subheading 3824.90.28), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
38 manufacturer.

SOLSPERSE 17000 (SEC. 1184)

Present law

12-Hydroxyoctadecanoic acid, reaction product with N,N-
dimethyl-1,3-propanediamine, dimethyl sulfate, quaternized (CAS
No. 70879-66-2) (provided for in HTS subheading 3824.90.40) is
subject to an NTR duty rate of 4.6% ad valorem.

Explanation of provision

This provision would amend subchapter 11 of chapter 99 of
the HTS by inserting a new heading for 12-Hydroxyoctadecanoic
acid, reaction product with N,N-dimethyl- 1,3 -propanediamine,
dimethyl sulfate, quaternized (CAS No. 70879 66 2) (provided
for in HTS subheading 3824.90.40), as duty free until December
31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

SOLSPERSE 5000 (SEC. 1185)

Present law

1-Octadecanaminium, N,N-dimethyl-N-octadecyl-, (Sp-4-2)-
[29H,31H-phthalocyanine2-sulfonato(3-)-N 29, N 30, N 31, N 32
]cuprate(1-) (CAS No.70750-63-9) (provided for in HTS
subheading 3824.90.28) is subject to NTR duty rate of 9.3% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 1-Octadecanaminium, N,N-
dimethyl-N-octadecyl-, (Sp-4-2)- [29H,31H-phthalocyanine-2-
sulfonato(3-)-N 29, N 30, N 31 N 32 ]cuprate(1-) (CAS No.
70750-63-9) (CAS No. 70750-63-9) (provided for in HTS
subheading 3824.90.28), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERTAIN TAED CHEMICALS (SEC. 1186)

Present law

Tetraacetylethylenediamine (CAS No. 10543-57-4) (provided
for in HTS subheading 2924.10.10) is subject to an NTR duty
rate of 3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for
tetraacetylethylenediamine (CAS No. 10543-57-4) (provided for
in HTS subheading 2924.10.10), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

ISOBORNYL ACETATE (SEC. 1187)

Present law

Isobornyl acetate (CAS No. 125-12-2) (provided for in HTS
subheading 2915.39.45) is subject to an NTR duty rate of 4.8%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by a new heading for Isobornyl acetate (CAS No. 125-12-
2) (provided for in HTS subheading 2915.39.45), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

SOLVENT BLUE 124 (SEC. 1188)

Present law

Solvent Blue 124 (CAS No. 29243-26-3) (provided for in HTS
subheading 3204.19.20) is subject to an NTR duty rate of 9.9%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Solvent Blue 124 (CAS
No. 29243-26-3) (provided for in HTS subheading 3204.19.20), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers to reduce
costs, making-these companies and downstream product industries
more competitive without jeopardizing any domestic
manufacturer.

SOLVENT BLUE 104 (SEC. 1189)

Present law

Solvent Blue 104 (CAS No. 116-75-6) (provided for in HTS
subheading 3204.19.20) is subject to an NTR duty rate of 9.9%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Solvent blue 104 (CAS
No. 116-75-6) (provided for in HTS subheading 3204.19.20), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers to reduce
costs, making these companies and downstream product industries
more competitive without jeopardizing any domestic
manufacturer.

PRO-JET MAGENTA 364 STAGE (SEC. 1190)

Present law

5-[4-(4,5-Dimethyl-2-sulfophenylamino)-6-hydroxy-[1,3,5-
triazin-2-yl amino]-4-hydroxy-3-(1-sulfonaphthalen-2-
ylazo)naphthalene-2,7-disulfonic acid, sodium ammonium salt
(provided for in HTS subheading 3204.14.30) is subject to NTR
duty rate of 6.5%-9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by a new heading for 5-[4(4,5-Dimethyl-2-
sulfophenylamino)-6-hydroxy-[1,3,5-triazin-2-yl amino]-4-
hydroxy-3-(1 sulfonaphth
alen-2-ylazo)naphthalene-2,7-disulfonic acid, sodium ammonium
salt (provided for in HTS subheading 3204.14.30), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers to reduce
costs, making these companies and downstream product industries
more competitive without jeopardizing any domestic
manufacturer.

4-AMINO-2,5-DIMETHOXY-N-PHENYLBENZEN SULFONAMIDE (SEC. 1191)

Present law

4-Amino-2,5-dimethyoxy-N-phenylbenzene sulfonamide(CAS No.
52298-44-9) (provided for in HTS subheading 2935.00.10) is
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4-Amino-2,5-dimethyoxy-
N-phenylbenzene sulfonamide (CAS No. 52298-44-9) (provided for
in HTS subheading 2935.00.10), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

UNDECYLENIC ACID (SEC. 1192)

Present law

10-Undecylenic acid (CAS No. 112-38-9) (provided for in HTS
subheading 2916.19.30) is subject to an NTR duty rate of 6. 1%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 10-Undecylenic acid (CAS
No. 112-38-9) (provided for in HTS subheading 2916.19.30), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

2-METHYL-4-CHLOROPHENOXYACETIC ACID (SEC. 1193)

Present law

2-Methyl-4-chlorophenoxyacetic acid (CAS No. 94-74-6) and
its 2-ethylhexl ester (CAS. No. 29450-45-1) (provided for in
HTS subheading 2918.90.20) and 2-Methyl-4-chlorophenoxy-acetic
acid, dimethyl-amine salt (CAS No. 2039-46-5) (provided for in
subheading 2921.19.60) is subject to NTR duty rate of 6.5%-8.6%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-Methyl-4-
chlorophenoxyacetic acid (CAS No. 94-74-6) and its 2-ethylhexl
ester (CAS. No. 29450-45-1) (provided for in HTS subheading
2918.90.20) and 2-Methyl-4-chlorophenoxy-acetic acid, dimethyl-
amine salt (CAS No. 2039-46-5) (provided for in HTS subheading
2921.19.60), with a duty reduction to 2.6% until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

IMINODISUCCINATE (SEC. 1194)

Present law

Mixtures of sodium salts of iminodisuccinic acid (provided
for in HTS subheading 3824.90.90) is subject to an NTR duty
rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of sodium salts
of iminodisuccinic acid (provided for in HTS subheading
3824.90.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

IMINODISUCCINATE SALTS AND AQUEOUS SOLUTIONS (SEC. 1195)

Present law

Mixtures of sodium salts of iminodisuccinic acid, dissolved
in water (provided for in HTS subheading 3824.90.90) are
subject to an NTR duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of sodium salts
of iminodisuccinic acid, dissolved in water (provided for in
HTS subheading 3824.90.90), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

POLY(VINYL CHLORIDE) (PVC) SELF ADHESIVE SHEETS (SEC. 1196)

Present law

Poly(vinyl chloride) self-adhesive sheets of a type used to
make bandages (provided for in HTS subheading 3919.10.20) are
subject to an NTR duty rate of 5.8% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading, Poly(vinyl chloride) self-
adhesive sheets of a type used to make bandages (provided for
in HTS subheading 3919.10.20), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. manufacturers to reduce
costs, making these companies more competitive without
jeopardizing any domestic manufacturer.

2-BUTYL-2-ETHYLPROPANEDIOL (SEC. 1197)

Present law

2-Butyl-2-ethylpropanediol (CAS No. 115-84-4) (provided for
in HTS subheading 2905.39.90) is subject to NTR duty rate of
8.2% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2-Butyl-2-
ethylpropanediol (CAS No. 115-84-4) (provided for in HTS
subheading 2905.39.90), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CYCLOHEXADEC-8-EN-1-ONE (SEC. 1198)

Present law

Cyclohexadec-8-en-1-one (CAS No. 3100-36-5) (provided for
in subheading 2914.29.50) is subject to an NTR duty rate of
4.8% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Cyclohexadec-8-en-1-one
(CAS No. 3100-36-5) (provided for in HTS subheading
2914.29.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PAINT ADDITIVE CHEMICAL (SEC. 1199)

Present law

N-Cyclopropyl-N,-(1,1-dimethylethy)-6-(methylthio)-1,3,5-
triazine -2,4-diamine (CAS No. 28159-98-0) (provided for in HTS
subheading 2933.69.60) is subject to an NTR duty rate of 3.7%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for N-Cyclopropyl-N-(1, 1-
dimethylethy) -6-(methylthio)-1,3,5-triazine-2,4-diamine (CAS
No. 28159-98-0) (provided for in HTS subheading 2933.69.60), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

o-CUMYL-OCTYLPHENOL (SEC. 1200)

Present law

o-cumyl-octylphenol (CAS No. 73936-80-8) (provided for in
HTS subheading 2907.19.80) is subject to an NTR duty rate of
5.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for o-cumyl-octylphenol (CAS
No. 73936-80-8) (provided for in HTS subheading 2907.19.80), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERTAIN POLYAMIDES (SEC. 1201)

Present law

Micro-porous, ultra fine, spherical forms of polyamide-6,
polyamide-12, polyamide-6,12 powders (CAS No. 25038-54-4 and
25038-74-8 and 25191-04-1) (provided for in HTS subheading
3908.10.00) are subject to NTR duty rate of 6.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for micro-porous, ultra
fine, spherical forms of polyamide-6, polyamide-12, polyamide-
6,12 powders (CAS No. 25038-54-4 and 25038-74-8 and 25191-04-1)
(provided for in HTS subheading 3908.10.00)), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MESAMOLL (SEC. 1202)

Present law

Mixture of phenyl esters of C10-C18 alkylsulfonic acids
(CAS No. 70775-94-9) (provided for in HTS subheading 3812.20.
10) is subject to an NTR duty rate of 11% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of phenyl
esters of C10-C18 alkylsulfonic acids (CAS No. 70775-94-9)
(provided for in HTS subheading 3812.20.10), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

VULKALENT E/C (SEC. 1203)

Present law

A mixture of N-Phenyl-N-((trichloromethyl) thio)-benzene
sulfonamide, calcium carbonate, and mineral oil (provided for
in HTS subheading 3824.90.28) is subject to an NTR duty rate of
9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for a mixture of N-Phenyl-N-
((trichloromethyl)thio)-benzenesulfonamide, calcium carbonate,
and mineral oil (provided for in HTS subheading 3824.90.28), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BAYTRON M (SEC. 1204)

Present law

A certain 3,4-Ethylenedioxythiophene (CAS No. 126213-50-1)
(provided for in HTS subheading 2934.90.90) is subject to an
NTR duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 3,4-
Ethylenedioxythiophene (CAS No. 126213-50-1) (provided for in
HTS subheading 2934.90.90), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BAYTRON C-R (SEC. 1205)

Present law

Aqueous catalytic preparations based on iron (III)
toluenesulfonate (CAS No. 77214-82-5) (provided for in HTS
subheading 3815.90.50) is subject to an NTR duty rate of 5% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for aqueous catalytic
preparations based on iron (III) toluenesulfonate (CAS No.
77214-82-5) (provided for in HTS subheading 3815.90.50), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BAYTRON P (SEC. 1206)

Present law

Aqueous dispersions of poly (3,4-ethylene-dioxythiophene)-
poly (styrenesulfonate) (cationic) (CAS No. 155090-83-8)
(provided for in HTS subheading 3911.90.25) is subject to an
NTR duty rate of 6.1% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for aqueous dispersions of
poly (3,4-ethylene-dioxythiophene)-poly (styrenesulfonate)
(cationic) (CAS No. 155090-83-8) (provided for in HTS
subheading 3911.90.25), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DIMETHYL DICARBONATE (SEC. 1207)

Present law

Dimethyl dicarbonate (CAS No. 4525-33-1) (provided for in
HTS subheading 2920.90.50) is subject to an NTR duty rate of
3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for dimethyl dicarbonate
(CAS No. 4525-33-1) (provided for in HTS subheading
2920.90.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

KNO01 (A HYDROCHLORIDE) (SEC. 1208)

Present law 48

2,4-Dichloro-5-hydrazinophenol monohydrochloride (CAS No.
189573-21-5) (provided for in HTS subheading 2928.00.25) is
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 2,4-Dichloro-5-
hydrazinophenol monohydrochloride (CAS No. 189573-21-5)
(provided for in HTS subheading 2928.00.25), as duty free until
December 31, 2003.

Reason for change

KL540 (SEC. 1209)

Present law

Methyl-4-trifluoromethoxyphenyl-N-(chlorocarbonyl)
carbarnate (CAS No. 173903-15-6) (provided for in HTS
subheading 2924.29.70) is subject to an NTR duty rate of 9.3%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for methyl-4-trifluoro-
methoxyphenyl-N-(chlorocarbonyl) carbarnate (CAS No. 173903-15-
6) (provided for in HTS subheading 2924.29.70), as duty free
until December 31, 2003.

Reason for change

DPC 083 (SEC.1210)

Present law

(S)-6-chloro-3,4-dihydro-4E-cyclopropylethenyl-4-
trifluoromethyl-2(1H)-quinozolinone (CAS No. 214287-99-7)
(provided for in HTS subheading 2933.90.46) is subject to an
NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for (S)-6-chloro-3,4-
dihydro-4E-cyclopropylethenyl-4-trifluoromethyl-2(1H)-
quinozolinone (CAS No. 214287-99-7) (provided for in FITS
subheading 2933.90.46), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

DPC 961 (SEC. 1211)

Present law

(S)-6-chloro-3,4-dihydro-4-cyclopropylethynyl-4-
trifluoromethyl-2(1H)-quinozolinone (CAS No. 214287-88-4)
(provided for in HTS subheading 2933.90.46) is subject to an
NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter 11 of chapter 99 of
the HTS by inserting a new heading for (S)-6-chloro-3,4-
dihydro-4-cyclopropylethynyl-4-trifluoromethyl-2(lH)-
quinozolinone (CAS No. 214287 88 4) (provided for in HTS
subheading 2933.90.46), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PETROLEUM SULFONIC ACIDS, SODIUM SALTS (SEC. 1212)

Present law

Petroleum sulfonic acids, sodium salts (CAS No. 68608-26-4)
(provided for in HTS subheading 3402.11.50) is subject to an
NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Petroleum sulfonic
acids, sodium salts (CAS No. 68608-26-4) (provided for in HTS
subheading 3402.11.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PRO-JET CYAN 1 PRESS PASTE (SEC. 1213)

Present law

Direct blue 199 acid (CAS No. 80146-12-9) (provided for in
HTS subheading 3204.14.30) is subject to NTR duty rate of 9.9%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Direct blue 199 acid
(CAS No. 80146-12-9) (provided for in HTS subheading
3204.14.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

PRO-JET BLACK ALC POWDER (SEC. 1214)

Present law

Direct black 184 (provided for in HTS subheading
3204.14.30) is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Direct black 184
(provided for in HTS subheading 3204.14.30), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

PRO-JET FAST YELLOW 2 RO FEED (SEC. 1215)

Present law

Direct yellow 173 (provided for in HTS subheading
3204.14.30) is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Direct yellow 173
(provided for in HTS subheading 3204.14.30), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

SOLVENT YELLOW 145 (SEC. 1216)

Present law

Solvent yellow 145 (CAS No. 27425-55-4) (provided for in
HTS subheading 3204.19.25) is subject to an NTR duty rate of
11.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Solvent yellow 145 (CAS
No. 27425-55-4) (provided for in HTS subheading 3204.19.25), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

PRO-JET FAST MAGENTA 2 RO FEED (SEC. 1217)

Present law

Direct violet 107 (provided for in HTS subheading
3204.14.30) is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting in numerical sequence the new heading for
Direct violet 107 (provided for in HTS subheading 3204.14.30),
as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

PRO-JET FAST CYAN 2 STAGE (SEC. 1218)

Present law

Direct blue 307 (provided for in HTS subheading 3204.14.30)
is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Direct blue 307
(provided for in HTS subheading 3204.14.30), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

PRO-JET CYAN 485 STAGE (SEC. 1219)

Present law

[(2-Hydroxyethylsulfamoyl)sulfophthalocyaninato] copper
(II), mixed isomers (provided for in HTS subheading 3204.14.30)
is subject to an NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for [(2-Hydroxyethyl-
sulfamoyl)sulfophthalocyaninato] copper (II), mixed isomers
(provided for in HTS subheading 3204.14.30), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TRIFLUSULFURON METHYL FORMULATED PRODUCT (SEC. 1220)

Present law

Methyl 2-[[[[[-4(dimethylamino)-6-(2,2,2-trifluoroethoxy)-
1,3,5-triazin-2-yl]-amino]carbonyl] amino] sulfonyl]-3-
methylbenzoate (CAS No. 126535-15-7) (provided for in HTS
subheading 3808.30.15) is subject to an NTR duty rate of 6.5%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for methyl 2-[[[[[-4(di-
methylamino)-6-(2,2,2-trifluoroethoxy)-1,3,5-triazin-2-yl]-
amino]carbonyl]amino]sulfonyl]-3-methylbenzoate (CAS No.
126535-15-7) (provided for in subheading 3808.10.15), as duty
free until December 31, 2003.

Reason for change

PRO-JET FAST CYAN 3 STAGE (SEC. 1221)

Present law

[29H, 31H-Phthalocyaninato (2-)-xN29, xN30, xN31, xN32],
copper[[2-[4-(2-amino-ethyl)-1-piperazinyl] ethyl]-amino]-
sulfonylaminosulfonyl [(2-hydroxyethyl)amino]-sulfonyl [[2-[[2-
(1-piperazinyl)ethyl] amino) ethyl]amino]- sulfonyl sulfo
derivatives and their sodium salts (provided for in HTS
subheading 3204.14.30) is subject to an NTR duty rate of 9.9%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for [29H, 31H-
Phthalocyaninato (2-xN29, xN30, xN31, xN32], copper[[2-[4-(2-
amino-ethyl)-1-piperazinyl] ethyl]-amino]-sulfonylaminosulfonyl
[(2-hydroxyethyl)amino]-sulfonyl [[2-[[2-(l-
piperazinyl)ethyl]amino) ethyl]amino]- sulfonyl sulfo
derivatives and their sodium salts (provided for in HTS
subheading 3204.14.30), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PRO-JET CYAN 1 RO FEED (SEC. 1222)

Present law

Direct blue 199 sodium salt (CAS No. 90295-11-7) (provided
for in HTS subheading 3204.14.30) is subject to an NTR duty
rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting the new heading for Direct blue 199 sodium
salt (CAS No. 90295-11-7) (provided for in HTS subheading
3204.14.30), as duty free until December 31, 2000, and a staged
rate reduction thereafter.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PRO-JET FAST BLACK 287 NA PASTE/LIQUID FEED (SEC. 1223)

Present law

Direct black 195 (CAS No. 160512-93-6) (provided for in HTS
subheading 3204.14.30) is subject to an NTR duty rate of 9.9%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting the new heading for Direct black 195 (CAS
No. 160512-93-6) (provided for in HTS subheading 3204.14.30),
as duty free until December 31, 2000 and a staged rate
reduction thereafter.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the products more
competitive without jeopardizing any domestic manufacturer.

4-(CYCLOPROPYL-A-HYDROXYMETHYLENE)-3,5-DIOXO-CYCLOHEXANECARBOXYLIC ACID
ETHYL ESTER (SEC. 1224)

Present law

4-(Cyclopropyl-a-hydroxymethylene)-3,5-dioxo-cyclohexane-
carboxylic acid ethyl ester (CAS No. 95266-40-3) (provided for
in HTS subheading 2918.90.50) is subject to an NTR duty rate of
4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4-(Cyclopropyl-a-
hydroxymethylene)-3,5-dioxo-cyclohexanecarboxylic acid ethyl
ester (CAS No. 95266-40-3) (provided for in HTS subheading
2918.90.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

4,,-EPIMETHYLAMINO-4,,-DEOXYAVERMECTIN B1A AND B1B BENOZATES (SEC.
1225)

Present law

4,,-Epimethylamino-4,,-deoxyavermectin B1a and B1b
benozates (CAS No. 137512-74-4, 155569-91-8, or 179607-18-2)
(provided for in HTS subheading 2938.90.00) is subject to an
NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4,,-Epimethylamino-4,,-
deoxyavermectin B1a and B1b benozates (CAS No. 137512-74-4,
155569-91-8, or 179607-18-2) (provided for in HTS subheading
2938.90.00), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

FORMULATIONS CONTAINING 2-[4-[(5-CHLORO-3-FLUORO-2-PYRIDINYL) OXY]-
PHENOXY]-2-PROPYNYL ESTER (SEC. 1226)

Present law

Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-pyridinyl)oxy]-
phenoxy]-2-propynyl ester (CAS No. 105512-06-9) (provided for
in subheading 3808.30.15) is subject to an NTR duty rate of
6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for propanoic acid, 2-[4-
[(5-chloro-3-fluoro-2-pyridinyl)oxy]-phenoxy]-2-propynyl ester
(CAS No. 105512-06-9) (provided for in HTS subheading
3808.30.15), with a duty reduction to 3% until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MIXTURES OF 2-(2-CHLOROETHOXY)-N-[[4-METHOXY-6-METHYL-1,3,5-TRIAZIN-2-
YL)-AMINO]CARBONYLBENZENESULFONAMIDE] AND 3,6-DICHLORO-2-METHOXYBENZOIC
ACID (SEC. 1227)

Present law

Mixtures of 2-(2-chloroethoxy)-N-[[4-methoxy-6-methyl-
1,3,5-triazin-2-yl)amino] carbonylbenzene-sul-fonamide] (CAS
No. 82097-50-5) and 3,6-dichloro-2-methoxybenzoic acid (CAS No.
1918-00-9) with application adjuvants (provided for in HTS
subheading 3808.30.15) are subject to an NTR duty rate of 6.5%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of 2-(2-
chloroethoxy)-N-[[4-methoxy-6-methyl-1,3,5-triazin-2-yl)amino]
carbonylbenzene-sul-fonamide] (CAS No. 82097-50-5) and 3,6-
dichloro-2-methoxybenzoic acid (CAS No. 1918-00-9) with
application adjuvants (provided for in HTS subheading
3808.30.15), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

(E,E)-a-(MEXTHOXYIMINO)-2-[[[[1-[3-(TRIFLUOROMETHYL)PHENYL]
ETHYLIDENE]AMINO]OXY]METHYL] BENZENEACETATE ACID, METHYL ESTER (SEC.
1228)

Present law

(E,E)-a-(mexthoxyimino)-2-[[[[1-[3-
(trifluoromethyl)phenyl]ethyl-idene]oxy]methyl] benzeneacetate
(CAS No. 141517-21-7) (provided for in HTS subheading
2929.90.20) is subject to an NTR duty rate of 10.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for (E,E)-a-(mexthoxylmino)-
2-[[[[I-[3-(trifluoromethyl)phenyl]ethylidene]oxy]
methyl]benzene-acetate (CAS No. 141517-21-7) (provided for in
HTS subheading 2929.90.20), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

FORMULATIONS CONTAINING SULFUR (SEC. 1229)

Present law

Mixtures of sulfur (80% by weight) and application
adjuvants (CAS No. 7704-34-9) (provided for in subheading
3808.20.50) are subject to an NTR duty rate of 5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by a new heading for mixtures of sulfur (80% by weight)
and application adjuvants (CAS No. 7704-34-9) (provided for in
subheading 3808.20.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MIXTURES OF 3-(6-METHOXY-4-METHYL-1,3,5-TRIAZIN-2-YL)-1-[2-(2-
CHLOROETHOXY)-PHENYLSULFONYL]-UREA (SEC. 1230)

Present law

Mixtures of 3-(6-methoxy-4-methyl-1,3,5-triazin-2-yl)-1-[2-
(2-chloro-ethoxy)-phenylsulfonyl]-urea (CAS No. 82097-50-5),
(provided for in HTS subheading 3808.30.15) are subject to an
NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of 3-(6-
methoxy-4-methyl- 1,3,5-triazin-2-yl)-1-[2-(2-chloro-ethoxy)-
phenylsulfonyl]-urea (CAS No. 82097-50-5) (provided for in HTS
subheading 3808.30.15), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MIXTURES OF 4-CYCLOPROPYL-6-METHYL-N-PHENYL-2-PYRIMIDINAMINE-4-(2,2-
DIFLUORO-1,3-BENZODIOXOL-4-YL)-1H-PYRROLE-3-CARBONITRILE (SEC. 1231)

Present law

Mixtures of 4-Cyclopropyl-6-methyl-N-phenyl-2-
pyrimidinamine-4-(2,2-difluoro-1,3-benzodioxol-4-yl)-1H-
pyrrole-3-carbonitrile (CAS No. 131341-86-1) (provided for in
HTS subheading 3808.20.15) and application adjuvants are
subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of 4-
Cyclopropyl-6-methyl-N-phenyl-2- pyrimidinamine-4-(2,2-
difluoro-1,3-benzodioxol-4-yl)-1H-pyrrole-3-carbonitrile (CAS
No. 131341-86-1) (provided for in HTS subheading 3808.20.15)
and application adjuvants, as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

(R)-2-[2,6-DIMETHYLPHENYL)-METHOXYACETYLAMINO]PROPIONIC ACID, METHYL
ESTER AND (S)-2-[2,6-DIMETHYLPHENYL) METHOOXYACETYL-AMINO]PROPIONIC
ACID, METHYL ESTER (SEC. 1232)

Present law

(R)-2-[2,6-Dimethylphenyl)-methoxyacetyl-amino]-propionic,
acid methyl ester and (S)-2-[2,6-Dimethylphenyl-
methoxyacetylamino]-propionic acid, methyl ester (CAS No.
69516-34-3) (both of the foregoing provided for in HTS
subheading 2924.29.47) is subject to an NTR duty rate of 9.1%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for (R)-2-[2,6-
Dimethylphenyl)-methoxyacetyl-amino]-propionic, acid methyl
ester and (S)-2[2,6-Dimethylphenyl-methoxyacetylamino]
propionic acid, methyl ester (CAS No. 69516-34-3) (both of the
foregoing provided for in HTS subheading 2924.29.47), as duty
free until December 31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MIXTURES OF BENZOTHIALDIAZOLE-7-CARBOTHIOIC ACID, S-METHYL ESTER (SEC.
1233)

Present law

Mixtures of benzothialdiazole-7-carbothioic acid, S-methyl
ester (CAS No. 135158-54-2) and application adjuvants (provided
for in HTS subheading 3808.20.15) are subject to an NTR duty
rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of
benzothialdiazole-7-carbothioic acid, S-methyl ester (CAS No.
135158-54-2) and application adjuvants (provided for in HTS
subheading 3808.20.15), as duty free until December 31,2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BENZOTHIALDIAZOLE-7-CARBOTHIOIC ACID, S-METHYL ESTER (SEC. 1234)

Present law

Benzothialdiazole-7-carbothioic acid, S-methyl ester (CAS
No. 135158-54-2) (provided for in HTS subheading 2934.90.12) is
subject to an NTR duty rate of 8.2% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Benzothialdiazole-7-
carbothioic acid, S-methyl ester (CAS No. 135158-54-2)
(provided for in HTS subheading 2934.90.12), as duty free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

O-(4-BROMO-2-CHLOROPHENYL)-O-ETHYL-S-PROPYL PHOSPHOROTHIOATE (SEC.
1235)

Present law

O-(4-Bromo-2-chlorophenyl)-O-ethyl-S-propyl
phosphorothioate (CAS No.41198-08-7) (provided for in HTS
subheading 2930.90.10) is subject to an NTR duty rate of 8.9%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for O-(4-Bromo-2-
chlorophenyl)-O-ethyl-S-propyl phosphorothioate (CAS No. 41198-
08-7) (provided for in HTS subheading 293 0.90.10), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

1[[2-(2,4-DICHLOROPHENYL)-4-PROPYL-1,3-DIOXOLAN-2-YL] METHYLI-1H-1,2,4-
TRIAZOLE (SEC. 1236)

Present law

1-[[2-(2,4-dichlorophenyl)-4-propyl-1,3-dioxolan-2-
yl]methyl]-lH-1,2,4-triazole (CAS No. 60207-90-1) (provided for
in HTS subheading 2934.90.12) is subject to an NTR duty rate of
8.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 1-[[2-(2,4-
dichlorophenyl)-4-propyl -1,3-dioxolan-2-yl]methyl]-1H-1,2,4-
triazole (CAS No. 60207-90-1) (provided for in HTS subheading
2934.90.12), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

TETRAHYDRO-3-METHYL-N-NITRO-5[[2-PHENYLTHIO)5-THIAZOLYL]-4H-1,3,5-
OXADIAZIN-4-IMINE (SEC. 1237)

Present law

Tetrahydro-3-methyl-N-nitro-5[[2-phenylthio)-5-thiazolyl]-
4H-1,3,5-oxadiazin-4-imine (CAS No. 19243-9-46-6) (provided for
in HTS subheading 2934.10.10) is subject to an NTR duty rate of
9.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for tetrahydro-3-methyl-N-
nitro-5[ [2-phenylthio)-5-thiazolyl] 4H-1,3,5-oxadiazin-4-imine
(CAS No. 192439-46-6) (provided for in HTS subheading
2934.10.10), with a duty reduction to 4.3% until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

1-(4-METHOXY-6-METHYLTRIAZIN-2-YL)-3-[2-(3,3,3-TRIFLUOROPROPYL)-
PHENYLSULFONYL]-UREA (SEC. 1238)

Present law

1-(4-Methoxy-6-methyltriazin-2-yl)-3-[2-(3,3,3-
trifluoropropyl)-phenylsulfonyl]-urea (CAS No. 94125-34-5)
(provided for in HTS subheading 2935.00.75) is subject to an
NTR duty rate of 6.5%, ad valorem.

Explanation of provision

This provision would amend subchapter IIof chapter 99 of
the HTS by inserting a new heading for 1-(4-Methoxy-6-
methyltriazin-2-yl)-3-[2-(3,3,3-trifluoropropyl)-
phenylsulfonyl]-urea (CAS No. 94125-34-5) (provided for in HTS
subheading 2935.00.75), as duty free until December 3 1, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

4,5-DIHYDRO-6-METH-YL-4-[(3-PYRIDINYLMETHYLENE) AMINO] 1,2,4-TRIAZIN-
3(2H)-ONE (SEC. 1239)

Present law

4,5-dihydro-6-meth-yl-4-[(3-pyridinylmeth-
ylene)amino]1,2,4-triazin-3(2H)-on e(CAS No. 123312-89-0)
(provided for in HTS subheading 2933.69.60) is subject to an
NTR duty rate of 3.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4,5-dihydro-6-meth-yl-4-
[(3-pyridinylmeth-ylene)amino]1,2,4-triazin-3(2H)-one (CAS No.
123312-89-0) (provided for in HTS subheading 2933.69.60), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

4-(2,2-DIFLUORO-1,3-BENZODIOXOL-4-YL)-lH-PYRROLE-3-CARBONITRILE (SEC.
1240)

Present law

4-(2,2-Difluoro-1,3-benzodioxol-4-yl)-IH-pyrrole-3-
carbonitrile (CAS No. 131341-86-1) (provided for in HTS
subheading 2934.90.12) is subject to an NTR duty rate of 8.3%
ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4-(2,2-Difluoro-1, 3-
benzodioxol-4-yl)-1H-pyrrole-3-carbonitrile (CAS No. 131341-86-
1) (provided for in HTS subheading 2934.90.12), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MIXTURES OF 2-(((((4,6-DIMETHOXYPYRIMIDIN-2- YL)AMINO)-CARBONYL)
SULFONYL)-N,N-DIMETHYL-3-PYRIDINECARBOXAMIDE AND APPLICATION ADJUVANTS
(SEC. 1241)

Present law

Mixtures of 2-(((((4,6-dimethoxypyrimidin-2-yl)amino)-car-
bonyl) sulfonyl)-N,N-dimethyl-3 pyridinecarboxamide and
application adjuvants (CAS No. 111991-09-4) (provided for in
HTS subheading 3808.30.15) is subject to an NTR duty rate of
6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Mixtures of 2-(((((4,6-
dimethoxypyrimidin-2-yl)amino)-car-bonyl)sulfonyl)-N,N-
dimethyl-3 pyridinecarboxamide and application adjuvants (CAS
No. 111991-09-4) (provided for in HTS subheading 3808.30.15),
as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. companies to reduce costs
of manufacturing the herbicide in the U.S. and make the final
product more affordable to U.S. farmers without jeopardizing
any domestic manufacturer.

MONOCHROME GLASS ENVELOPES (SEC. 1242)

Present law

Monochrome glass envelopes (provided for in HTS subheading
7011.20.40) are subject to an NTR duty rate of 5.2% ad valorem.

Explanation of provision

This provision would amend subchapter 11 of chapter 99 of
the HTS by inserting a new heading for monochrome glass
envelopes (provided for in HTS subheading 7011.20.40), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

CERAMIC COATER (SEC. 1243)

Present law

Ceramic coater for laying down and drying ceramic (as
provided for in HTS subheading 8479.89.97) is subject to NTR
duty rate of 2.5% ad valorem.

Explanation of provision

This provision would amend chapter 99, subchapter II of the
HTS by inserting a new heading for ceramic coaters used for
laying down and drying ceramic (provided for in HTS subheading
8479.89.97), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

PRO-JET BLACK 263 STAGE (SEC. 1244)

Present law

5-[4-(7-Amino-1-hydroxy-3-sulfonaphthalen-2-ylazo)-2,5-
bis(2-hydroxyethoxy)-phenylazo]isophthalic acid, lithium salt
(provided for in HTS subheading 3204.14.30) is subject to an
NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 5-[4-(7-Amino-1-hydroxy-
3-sulfonaphthalen-2-ylazo)-2,5-bis(2-hydroxyethoxy)-
phenylazo]isophthalic acid, lithium salt (provided for in HTS
subheading 3204.14.30), as duty-free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PRO-JET FAST BLACK 286 PASTE (SEC. 1245)

Present law

1,3-Benzenedicarboxylic acid, 5-[[4-[(7-amino-1-hydroxy-3-
sulfo-2-naphthalenyl) azo-6-sulfo-l-naphthalenyl)azo]-, sodium
salt (CAS No. 201932-24-3) (provided for in HTS subheading
3204.14.30) is subject to NTR duty rate of 9.9% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 1,3-Benzenedicarboxylic
acid, 5-[[4-[(7-amino-1-hydroxy-3-sulfo-2-naphthalenyl) azo-6-
sulfo-1-naphthalenyl)azo]-, sodium salt (CAS No. 201932-24-3)
(provided for in HTS subheading 3204.14.30), as duty-free until
December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BROMINE-CONTAINING COMPOUNDS (SEC. 1246)

Present law

Bromine-containing compounds are classifiable under HTS
subheadings 2904.90.50 and 2903.69.70 and are subject to an NTR
duty rate of 5.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting new subheadings for:
2-Bromoethanesulfonic acid, sodium salt (CAS No.
4263-52-9) (provided for in HTS subheading 2904.90.50)
as duty free until December 31, 2003,
4,4,-Dibromobiphenyl (CAS No. 92-86-4) (provided for
in HTS subheading 2903.69.70) as duty free until
December 31, 2003,
4-Bromotoluene (CAS No. 106-38-7) (provided for in
HTS subheading 2903.69.70), as duty free until December
31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PYRIDINEDICARBOXYLIC ACID (SEC. 1247)

Present law

Pyridinedicarboxylic acid is classifiable under HTS
subheadings 2933.90.79, 2933.90.24 and 2921.49.45 and is
subject to an NTR duty rate of 8.6% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting new subheadings for:
1,4-Dihydro-2,6-dimethyl-1,4-diphenyl-3,5-
pyridinedicarboxylic acid, dimethyl ester (CAS No.
83300-85-0) (provided for in HTS subheading 2933.90.79)
as duty free until December 31, 2003;
1-[2-[2-Chloro-3-[(1,3-dihydro-1,3,3-trimethyl-2H-
indol-2-ylidene) ethylidene]-1-cyclopenten-1-
yl]ethenyl]-1,3,3-trimethyl-3H-indolium salt with
trifluoromethanesulfonic acid (1:1) (CAS No. 128433-68-
1) (provided for in HTS subheading 2933.90.24), as duty
free until December 31, 2003;
N-[4-[5-[4-(Dimethylamino)-phenyl]-1,5-diphenyl-2,4-
pentadienylidene]-2,5-cyclohexadien-1-ylidene]-N-
methylmethanaminium salt with trifluoromethane-sulfonic
acid (1:1) (CAS No. 100237-71-6) (provided for in HTS
subheading 2921.49.45), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERTAIN SEMICONDUCTOR MOLD COMPOUNDS (SEC. 1248)

Present law

Thermosetting epoxide molding compounds of a kind suitable
for use in the manufacture of semiconductor devices, via
transfer molding processes, containing 70 percent or more of
silica, by weight, and having less than 75 parts per million of
combined water-extractable content of chloride, bromide,
potassium and sodium are classifiable under HTS subheading
3907.30.00 and are subject to an NTR duty rate of 6.1% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Thermosetting epoxide
molding compounds of a kind suitable for use in the manufacture
of semiconductor devices, via transfer molding processes,
containing 70 percent or more of silica, by weight, and having
less than 75 parts per million of combined water-extractable
content of chloride, bromide, potassium and sodium (provided
for in HTS subheading 3907.30.00), and setting it at a duty
rate of 3.5% until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

SOLVENT BLUE 67 (SEC. 1249)

Present law

Solvent blue 67 is classifiable under HTS subheading
3204.19.11 and is subject to an NTR duty rate of 6.5% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Solvent blue 67 (CAS No.
81457-65-0) (provided for in HTS subheading 3204.19.11), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PIGMENT BLUE 60 (SEC. 1250)

Present law

Pigment blue 60 is classifiable under HTS subheading
3204.17.90 and is subject to an NTR duty rate of 10.6% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Pigment blue 60 (CAS No.
81-77-6) (provided for in HTS subheading 3204.17.90), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

MENTHYL ANTHRANILATE (SEC. 1251)

Present law

Menthyl anthranilate is classifiable under HTS subheading
2922.49.27 and is subject to an NTR duty rate of 6.5% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for menthyl anthranilate
(CAS No. 134-09-08) (provided for in HTS subheading
2922.49.27), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

4-BROMO-2-FLUOROACETANILIDE (SEC. 1252)

Present law

4-Bromo-2-fluoroacetanilide is classifiable under HTS
subheading 2924.21.50 and is subject to an NTR duty rate of
7.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4-Bromo-2-
fluoroacetanilide (CAS No. 326-66-9) (provided for in HTS
subheading 2924.21.50), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

PROPIOPHENONE (SEC. 1253)

Present law

Propiophenone is classifiable under HTS subheading
2914.39.90 and is subject to an NTR duty rate of 7.4% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for propiophenone (CAS No.
93-55-0) (provided for in HTS subheading 2914.39.90), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

m-CHLOROBENZALDEHYDE (SEC. 1254)

Present law

m-Chlorobenzaldehyde is classifiable under HTS subheading
2913.00.40 and is subject to an NTR duty rate of 9.8% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for m-Chlorobenzaldehyde
(CAS No. 587-04-2) (provided for in sub-heading 2913.00.40), as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CERAMIC KNIVES (SEC. 1255)

Present law

Ceramic knives are classifiable under HTS subheading
6911.10.80 or 6912.00.48 and is subject to an NTR duty rate of
22.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for knives having ceramic
blades, such blades containing over 90% zirconia by weight
(provided for in sub-heading 6911.10.80 or 6912.00.48), as duty
free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

STAINLESS STEEL RAILCAR BODY SHELLS (SEC. 1256)

Present law

Stainless steel railcar body shells are classifiable under
HTS subheading 8607.99.10 and are subject to an NTR duty rate
of 2.8% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for railway car bodyshells
of stainless steel, the foregoing which are designed for
gallery type railway cars each having an aggregate capacity of
138 passengers on two enclosed levels (provided for in HTS
subheading 8607.99.10), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

STAINLESS STEEL RAILCAR BODY SHELLS OF 148-PASSENGER CAPACITY (SEC.
1257)

Present law

Stainless steel railcar body shells of 100-passenger
capacity are classifiable under HTS subheading 8607.99. 10 and
are subject to an NTR duty rate of 2.8% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for railway car body shells
of stainless steel, the foregoing which are designed for use in
gallery type cab control railway cars each having an aggregate
capacity of 148 passengers on two enclosed levels (provided for
in HTS subheading 8607.99.10), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

PENDIMETHALIN (SEC. 1258)

Present law

N-(Ethylpropyl)-3,4-dimethyl-2,6-dinitroaniline
(Pendimethalin) is classifiable under HTS subheading 2921.49.50
and is subject to an NTR duty rate of 10.3% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for N-(Ethylpropyl)-3,4-
dimethyl-2,6-dinitroaniline (Pendimethalin) (CAS No. 40487-
42-1) (provided for in HTS subheading 2921.49.50), and setting
it at a duty rate of 1. 1% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

3,5-DIBROMO-4-HYDROXYBENZONITRIL ESTER AND INERTS (SEC. 1259)

Present law

Mixtures of octanoate and heptanoate esters of bromoxynil
(3,5-Dibromo-4-hydroxybenzonitrile) with application adjuvants
is classifiable under HTS subheading 3808.30.15 and is subject
to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for mixtures of octanoate
and heptanoate esters of bromoxynil (3,5-Dibromo-4-
hydroxybenzonitrile) (CAS Nos. 1689-99-2 and 56634-95-8) with
application adjuvants (provided for in HTS subheading
3808.30.15), as duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

3,5-DIBROMO-4-HYDROXYBENZONITRIL (SEC. 1260)

Present law

Bromoxynil (3,5-dibromo-4-hydroxybenzonitrile) octanoic
acid ester is classifiable under HTS subheading 2926.90.25 and
is subject to an NTR duty rate of 8.6% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Bromoxynil (3,5-dibromo-
4-hydroxybenzonitrile), octanoic acid ester (CAS No. 1689-99-2)
(provided for in HTS subheading 2926.90.25) and set it at a
duty rate of 4.2% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

ISOXAFLUTOLE (SEC. 1261)

Present law

4-(2-Methanesulfonyl-4-trifluoromethylbenzoyl)-5-
cyclopropylisoxazole is classifiable under HTS subheading
2934.90.15 and is subject to an NTR duty rate of 8.6% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 4-(2-Methanesulfonyl-4-
trifluoromethylbenzoyl)-5-cyclopropylisoxazole (CAS No. 141112-
29-0) (provided for in HTS subheading 2934.90.15) and set it at
a duty rate of 1.0% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

CYCLANILIDE TECHNICAL (SEC. 1262)

Present law

1-(2,4-Dichlorophenylaminocarbonyl)-cyclopropanecarboxylic
acid is classifiable under HTS subheading 2924.29.47 and is
subject to an NTR duty rate of 8.4% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for 1-(2,4-
Dichlorophenylaminocarbonyl)-cyclopropanecarboxylic acid. (CAS
No. 113136-77-9) (provided for in HTS subheading 2924.29.47)
and setting it at a duty rate of 5.7% until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

R115777 (SEC. 1263)

Present law

(R)-6-[Amino(4-chlorophenyl)(1-meth-yl-1H-imidazol-5-
yl)methyl]-4-(3-chlorophenyl)-lmethyl-2(1H)-quinoline is
classifiable under HTS subheading 2933.40.26 and is subject to
an NTR duty rate of 6.5% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for (R)-6-[Amino(4-
chlorophenyl)(1-meth-yl-1H-imidazol-5-yl)methyl]-4-(3-chlorop
henyl)-lmethyl-2(1H)-quinoline (CAS No. 192185-72-1) (provided
for in HTS subheading 2933.40.26) as duty free until December
31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

BONDING MACHINES (SEC. 1264)

Present law

Bonding machines are classifiable under HTS subheading
8479.89.97 and are subject to an NTR duty rate of 2.5% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for bonding machines for use
in the manufacture of digital versatile discs (DVDs) (provided
for in HTS subheading 8479.89.97) and setting it at a duty rate
of 1.7% until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

GLYOXYLIC ACID (SEC. 1265)

Present law

Glyoxylic acid is classifiable under HTS subheading
2918.30.90 and is subject to an NTR duty rate of 3.7% ad
valorem.

Explanation of provision

This provision amends subchapter II of chapter 99 of the
HTS by inserting a new heading for glyoxylic acid (CAS No. 298-
12-4) (provided for in HTS subheading 2918.30.90), as duty free
until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

FLUORIDE COMPOUNDS (SEC. 1266)

Present law

Ammonium bifluoride is classifiable under HTS subheadings
2826.11.10 and 2826.19.00 and is subject to an NTR duty rate of
3.1% ad valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting a new heading for Ammonium bifluoride, as
duty free until December 31, 2003.

Reason for change

This provision would enable U.S. chemical manufacturers to
reduce costs, making the chemicals and downstream product
industries more competitive without jeopardizing any domestic
manufacturer.

COBALT BORON (SEC. 1267)

Present law

Cobalt boron is classifiable under HTS subheading
8105.10.30 and is subject to an NTR duty rate of 4.4% ad
valorem.

Explanation of provision

This provision would amend subchapter II of chapter 99 of
the HTS by inserting new heading for Cobalt boron (provided for
in HTS subheading 8105.10.30), as duty free until December 31,
2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN NUCLEAR
FACILITIES (SEC. 1268)

Present law

Watertube boilers with a steam production exceeding 45 t
per hour, for use in nuclear facilities (provided for in sub-
heading 8402.11.00) are subject to an NTR duty rate of 5.2% ad
valorem.

Explanation of provision

The provision amends subchapter II of chapter 99 of the HTS
by inserting a new subheading for watertube boilers with a
steam production exceeding 45 t per hour, for use in nuclear
facilities (provided for in HTS subheading 8402.11.00), with a
duty reduction to 4.9% ad valorem until December 31, 2003.
The duty reduction applies only to those binding contracts
that have been entered into on or before the date of enactment
of this Act and does not apply to any contracts entered into
after such date.

Reason for change

This duty reduction will reduce costs for nuclear power
facilities operators. The Committee expects that these savings
will be passed directly and entirely to the consumer.

FIPRONAL TECHNICAL (SEC. 1269)

Present law

Fipronal Technical (CAS No. 120068-37-3) (provided for in
HTS subheading 2933.19.23) is subject to an NTR duty rate of
9.3% ad valorem.

Explanation of provision

This provision amends subchapter II of chapter 99 of the
HTS by inserting in a new heading for Fipronal Technical (CAS
No. 120068-37-3) (provided for in HTS subheading 2933.19.23),
with a duty reduction to 5.6% ad valorem until December 31,
2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making the downstream products
more competitive without jeopardizing any domestic
manufacturer.

Chapter 2--Existing Duty Suspensions and Reductions

SEC. 1301. EXTENSION OF CERTAIN EXISTING DUTY SUSPENSIONS AND
REDUCTIONS

(a) Existing duty suspensions

Present law

(1) The temporary duty suspension for DEMT (provided for in
HTS heading 9902.32.12) would expire December 31, 2001, after
which time the product would be subject to an NTR duty rate of
11.4% ad valorem.
(2) The temporary suspension of duty on a certain polymer
(provided for, in HTS heading 9902.3 9.07) is to expire
December 31, 2001, after which time the product would be
subject to an NTR duty rate of 6.5% ad valorem.
(3) The temporary suspension of duty on 4-hexylresorcinol
(provided for in HTS heading 9902.29.07) is to expire December
31, 2001, after which time the product would be subject to an
NTR duty rate of 5.5% ad valorem.
(4) The temporary suspension of duty on certain sensitizing
dyes (provided for in HTS heading 9902.29.37) is to expire
December 31, 2001, after which time the product would be
subject to an NTR duty rate of 6.5% ad valorem.
(5) The temporary suspension of duty on certain organic
pigments and dyes (provided for in HTS heading 9902.32.07) is
to expire December 31, 2001, after which time the product would
be subject to an NTR duty rate of 5.9% ad valorem.
(6) The temporary suspension of duty on certain semi-
manufactured forms of gold (provided for in HTS heading
9902.71.08) is to expire December 31, 2001, after which time
the product would be subject to an NTR duty rate of 4.1 % ad
valorem.
(7) The temporary suspension on DPXE 6578 (provided for in
HTS heading 9902.33.59) expires on December 31, 2001, after
which time the product would be subject to an NTR duty rate of
9.3% ad valorem (as provided for in HTS subheading 2933.59.70).
(8) The temporary suspension on rimsulfuron (provided for
in HTS heading 9902.33.60) expires on December 31, 2000, after
which time the product would be subject to an NTR duty rate of
9.3% ad valorem (as provided for in HTS subheading 2935.00.75).
(9) The temporary suspension on rolled glass (provided for
in HTS heading 9902.70.03) expires on December 31, 2001, after
which time the product would be subject to an NTR duty of 1.3%
ad valorem.
(10) The temporary suspension on ferroboron (provided for
in HTS heading 9902.72.02) expires on December 31, 2001, after
which time the product would be subject to an NTR duty rate of
5% ad valorem.
(11) The temporary duty suspension on synthetic quartz and
synthetic fused silica (provided for in HTS heading 9902.70.06)
expires on December 31, 2001 after which time the product would
be subject to an NTR duty of 4.9% ad valorem.
(12) The temporary duty suspension on diiodomethyl-p-
tolylsulfone (provided for in HTS heading 9902.32.90) expires
on December 31, 2001, after which time the product would be
subject to an NTR duty rate of 7.7% ad valorem.
(13) The temporary duty suspension on b-bromo-b-
nitrostyrene (provided for in HTS heading 9902.32.92) expires
on December 31, 2001, after which time the product would be
subject to an NTR duty rate of 7.6% ad valorem.
(14) The temporary duty suspension on Yttrium (provided for
in HTS heading 9902.32.06) expires on December 31, 2000, after
which time the product would be subject to an NTR duty rate of
6.5% ad valorem.
(15) The temporary duty suspension on methyl thioglycolate
(provided for in HTS heading 9902.32.55) expires on December
31, 2001, after which time the product would be subject to an
NTR duty rate of 3.7% ad valorem.

Explanation of provision

This provision would amend the above HTS headings to extend
those temporary duty suspensions until December 31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to continue to keep costs down, which would
continue to make downstream product industries more competitive
without jeopardizing any domestic manufacturer.

(b) Existing duty reductions

Present law

Ethylene/tetra-fluoroethylene copolymer (ETFE) (provided
for in HTS heading 3904.69.50) is currently subject to an NTR
duty rate of 6.5% ad valorem, and a duty reduction rate of 3.3%
ad valorem (provided for in HTS heading 9902.29.68) until
December 31, 2001.

Explanation of provision

This provision would amend HTS heading 9902.29.68 by
extending the duty reduction rate to December 31, 2003. The NTR
rate of duty is provided above to make importers aware that
this product is classified under two separate HTS headings, and
that all importers of the above product may avail themselves of
the duty reduction rate.

Reason for change

This provision would enable U.S. chemical manufacturers to
continue the reduced costs, keeping the chemicals and
downstream product industries more competitive without
jeopardizing any domestic manufacturer.

Present law

(1) There is a temporary duty suspension for methyl ester
(provided for in HTS heading 9902.38.24).
(2) There is a temporary duty suspension on certain
manufacturing equipment (provided for in HTS headings
9902.84.83, 9902.84.85, 9902.84.87, 9902.84.89, and
9902.84.91).
(3) There is a temporary duty reduction on carbamic acid
(provided for in HTS heading 9902.33.61).
(4) There is a temporary duty reduction on DPX-E9260
(provided for in HTS subheading 9902.33.63).

Explanation of provision

This provision would modify the existing duty suspensions
and reductions identified above, as follows:
(1) The temporary duty suspension on methyl ester
would be changed to a staged rate duty reduction and
extended until December 31, 2003.
(2) The temporary duty suspension on certain
manufacturing equipment would be modified.
(3) The temporary duty reduction on carbamic acid
would be made a duty suspension and extended until
December 31, 2003.
(4) The temporary duty reduction on DPX-E9260 would
be made a duty suspension and extended until December
31, 2003.

Reason for change

This provision would enable U.S. manufacturers that use
these products to reduce costs, making downstream products more
competitive without jeopardizing any domestic manufacturer.

Subtitle B--Other Tariff Provisions

Chapter 1--Liquidation or Reliquidation of Certain Entries

CERTAIN TELEPHONE SYSTEMS (SEC. 1401)

Present law

Certain identified entries of telephone systems were
liquidated by U.S. Customs under an incorrect HTS number.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries in accordance with
a final decision of the U.S. Department of Commerce of May 7,
1990 (A580-803-001).

Reason for change

This provision authorizes U.S. Customs to liquidate or
reliquidate these entries at the correct rate of duty.

COLOR TELEVISION RECEIVER ENTRIES (SEC. 1402)

Present law

Certain identified entries of color televisions were
liquidated by U.S. Customs under an incorrect HTS number.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified color television receiver
entries.

Reason for change

This provision authorizes U.S. Customs to liquidate or
reliquidate these entries at the correct rate of duty.

COPPER AND BRASS SHEET AND STRIP (SEC. 1403)

Present law

Certain identified entries of copper and brass sheet and
strip entered during the period from October 18, 1986 to
December 5, 1990 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries of copper and brass
sheet and strip entered.

Reason for change

This provision authorizes U.S. Customs to reliquidate these
entries at the correct rate of duty.

ANTIFRICTION BEARINGS (SEC. 1404)

Present law

Certain identified entries of antifriction bearings entered
during the period from May 26, 1989 to April 12, 1990 were
liquidated by U.S. Customs.

Explanation of provision

This provision would provide for the liquidation or
reliquidation of certain identified entries of antifriction
bearings from May 26, 1989 to April 12, 1990.

Reason for change

This provision authorizes U.S. Customs to liquidate or
reliquidate these entries at the correct rate of duty.

OTHER ANTIFRICTION BEARINGS (SEC. 1405)

Present law

Certain identified entries of antifriction bearings entered
during the period from April 4, 1990 to May 21, 1991 were
liquidated by U.S. Customs.

Explanation of provision

This provision would provide for the liquidation or
reliquidation of certain identified entries of antifriction
bearings entered during the period from April 4, 1990 to May
21, 1991.

Reason for change

This provision authorizes U.S. Customs to reliquidate these
entries at the correct rate of duty.

PRINTING CARTRIDGES (SEC. 1406)

Present law

Certain identified entries of printing cartridges entered
during the period from April 18, 1997 to March 27, 1998 were
liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries of printing
cartridges.

Reason for change

This directs the U.S. Customs Service to liquidate or
reliquidate these entries at the correct duty rate.

LIQUIDATION OR RELIQUIDATION OF CERTAIN ENTRIES OF N,N-DICYOLOHEXYLL-2-
BENSOTHAZOLE-SULFENAMIDE (SEC. 1407)

Present law

Certain identified entries of N,N-dicyolohexyll-2-
bensothazole-sulfenamide entered during the period from
February 1, 1995 to November 26, 1996 were liquidated by the
Customs Service.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries of
N,Ndicyolohexyll-2-bensothazole-sulfenamide during the period
from February 1, 1995 to November 26, 1996 as free from duty.

Reason for change

This directs the U.S. Customs Service to liquidate or
reliquidate these entries at the correct duty rate.

CERTAIN ENTRIES OF TOMATO SAUCE PREPARATION (SEC. 1408)

Present law

Certain identified entries of tomato sauce preparation
entered during the period from July 14, 1989 to February 9,
1995 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries of tomato sauce
preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or
reliquidate these entries at the correct rate of duty.

CERTAIN TOMATO SAUCE PREPARATION ENTERED IN 1990 THROUGH 1992 (SEC.
1409)

Present law

Certain identified entries of tomato sauce preparation
entered during the period from November 28, 1990 to December
12, 1992 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries of tomato sauce
preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or
reliquidate these entries at the correct rate of duty.

CERTAIN TOMATO SAUCE PREPARATION ENTERED IN 1989 THROUGH 1995 (SEC.
1410)

Present law

Certain identified entries of tomato sauce preparation
entered during the period from October 11, 1989 to April 28,
1995 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries of tomato sauce
preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or
reliquidate these entries at the correct rate of duty.

CERTAIN TOMATO SAUCE PREPARATION ENTERED IN 1989 AND 1990. (SEC. 1411)

Present law

Certain identified entries of tomato sauce preparation
entered during the period from July 27, 1989 to January 12,
1990 were liquidated by the Customs Service.

Explanation of provision

This provision provides for the liquidation or
reliquidation of certain identified entries of tomato sauce
preparation.

Reason for change

This directs the U.S. Customs Service to liquidate or
reliquidate these entries at the correct rate of duty.

NEOPRENE SYNCHRONOUS TIMING BELTS (SEC. 1412)

Present law

On March 3, 1990, entry number 469-0015023-9 was levied a
74.9% anti-dumping duty. The entry consisted of a shipment of
neoprene synchronous timing belts.

Explanation of provision

Any amounts owed by the U.S. pursuant to the liquidation or
reliquidation of the entry number 469-0015023-9, with interest
accrued from the date of entry, shall be paid by the U.S.
Customs Service within 90 days after such liquidation or
reliquidation.

Reason for change

During the period from February 1, 1989 until February 28,
1990, anti-dumping duties levied on neoprene synchronous timing
belts were reduced from 74.9% to 24%. Despite this reduction,
entry number 469-0015023-9 was still charged the full 74.9%.
This provision redresses this oversight and refunds sums equal
to the amount that was overcharged.

RELIQUIDATION OF DRAWBACK CLAIM NUMBER R74-10343996 (SEC. 1413)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section
1313(j)) allows exporters to claim drawback under certain
circumstances.

Explanation of provision

This provision provides for the liquidation or
reliquidation of the identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed
by the U.S. Customs Service for administrative reasons, and
should have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS FILED IN 1996 (SEC. 1414)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section
13130(j)) allows exporters to claim drawback under certain
circumstances.

Explanation of provision

This provision provides for the liquidation or
reliquidation of the identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed
by the U.S. Customs Service for administrative reasons, and
should have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS RELATING TO EXPORTS OF
MERCHANDISE FROM MAY 1993 TO JULY 1993 (SEC. 1415)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section
1313(j)) allows exporters to claim drawback under certain
circumstances.

Explanation of provision

This provision provides for the liquidation or
reliquidation of the identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed
by the U.S. Customs Service for administrative reasons, and
should have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS RELATING TO EXPORTS CLAIMS
FILED BETWEEN APRIL 1994 AND JULY 1994 (SEC. 1416)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section
1313(j)) allows exporters to claim drawback under certain
circumstances.

Explanation of provision

This provision provides for the liquidation or
reliquidation of the identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed
by the U.S. Customs Service for administrative reasons, and
should have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS RELATING TO JUICES (SEC. 1417)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section
1313(j)) allows exporters to claim drawback under certain
circumstances.

Explanation of provision

This provision provides for the liquidation or
reliquidation of the identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed
by the U.S. Customs Service for administrative reasons, and
should have been liquidated as filed.

RELIQUIDATION OF CERTAIN DRAWBACK CLAIMS FILED IN 1997 (SEC. 1418)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section
1313(j) allows exporters to claim drawback under certain
circumstances.

Explanation of provision

This provision provides for the liquidation or
reliquidation of the identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed
by the U.S. Customs Service for administrative reasons, and
should have been liquidated as filed.

RELIQUIDATION OF DRAWBACK CLAIM NUMBER WJU1111031-7 (SEC. 1419)

Present law

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. section
1313(j)) allows exporters to claim drawback under certain
circumstances.

Explanation of provision

This provision provides for the liquidation or
reliquidation of the identified drawback claims.

Reason for change

The identified drawback claims were not liquidated as filed
by the U.S. Customs Service for administrative reasons, and
should have been liquidated as filed.

LIQUIDATION OR RELIQUIDATION OF CERTAIN ENTRIES OF ATHLETIC SHOES (SEC.
1420)

Present law

Certain identified entries of athletic shoes entered during
the period from August 1, 1993 to June 1, 1998 were liquidated
by the U.S. Customs Service.

Explanation of provision

This provison provides for the liquidation or reliquidation
of certain identified entries of defective athletic shoes which
were recycled rather than destroyed.

Reason for change

These drawback claims were denied due to the fact that the
product was recycled rather than destroyed. It is the view of
the Committee that the importer should not be penalized for
having taken actions that were both consistent with the intent
of the drawback statute and were environmentally responsible.

DESIGNATION OF MOTOR FUELS AND JET FUELS AS COMMERCIALLY
INTERCHANGEABLE (SEC. 1421)

Present law

Drawback is available under Section 313 of the Tariff Act
of 1930.

Explanation of provision

This provision would clarify the treatment of jet fuels for
purposes of drawback under Section 313 of the Tariff Act of
1930.

Reason for change

To clarify the treatment of jet fuels under the drawback
statute.

Chapter 2--Special Classification Relating to Product Development and
Testing

IMPORTING PROTOTYPES, (SECS. 1431-1435)

Present law

Under current law, prototypes imported into the United
States for product development testing and product evaluation
purposes are subject to the U.S. Customs Service duty upon
their importation into the United States unless they qualify
for duty-free treatment under special trade programs or unless
entered under a temporary importation bond.

Explanation of provision

This provision would amend chapter 98, subchapter XVII of
the HTS by inserting a new heading 9817.85.01 for duty-free
treatment of prototypes imported exclusively for development,
testing, product evaluation, or quality control purposes.
Section 1432 contains findings that reflect an
understanding that there is significant use of prototypes in
the United States for the development and testing of products.
However, these findings note that the current assessment of
Customs duties on imports of prototypes discourage development
and testing in the United States. There is a particular concern
that duties are assessed on prototypes twice, once when they
are imported and a second time as part of the cost of the
imported production merchandise.
Section 1433 amends the HTS to add a new provision,
subheading 9817.85.01, to permit the duty-free importation of
prototypes to be used exclusively for development, testing,
product evaluation or quality control purposes. This section
also adds a new Note 6 to subchapter XVII of chapter 98 to
define the term ``prototypes.'' This note provides that
automobile racing for prize or purse or commercial competition
shall not be considered to be ``development, testing, product
evaluation, or quality control'' for purposes of clause (a)(i)
of this Note. The purpose of this provision is to clarify that
the term ``prototype'' does not include articles that are
imported for use in an automobile race in which the importer
may receive a prize or purse or other commercial remuneration.
This limitation would not apply where the prototype is used
only for a test or trial events, where no such prize or purse
or other commercial remuneration is awarded.
The new Note also limits the application of this provision
as follows:
(i) Prototypes may be imported in limited noncommercial
quantities in accordance with industry practice.
(ii) Except as provided by the Secretary of the Treasury,
prototypes may not be sold after importation into the United
States or be incorporated into other products that are sold.
(iii) Articles subject to quantitative restrictions or
antidumping or countervailing duty orders may not be classified
as prototypes.
Section 1434(a) authorizes the Secretary of the Treasury to
promulgate regulations for the identification of prototypes at
the time of importation into the United States in accordance
with the provisions of this chapter.
Section 1434(b) directs the Secretary of the Treasury to
promulgate final regulations within ten months of the date of
enactment to authorize the sale of prototypes as waste, scrap
or for recycling. In promulgating these regulations, the
Secretary must ensure that all duties will be tendered for
sales of prototypes, including prototypes and parts of
prototypes incorporated into other products, as scrap, waste or
recycled materials at the rates of duty in effect for such
scrap, waste or recycled materials at the time of importation
of the prototype.
Section 1435 provides that the amendments to the HTS made
by this legislation apply to entries of prototypes classifiable
under subheading 9817.85.01 of the HTS made on or after the
date of enactment of these provisions; and to entries of
prototypes classifiable under subheading 9813.00.30 of the HTS
with respect to which liquidation has not become final as of
the date of enactment of this Act.

Reason for change

This provision would allow prototypes, as defined under
this Act, to be imported free of duty with certain specified
exceptions and restrictions, under new heading 9817.85.01 of
the HTS.
This provision is needed because, notwithstanding that the
prototypes are subject to duty when imported, U.S. Customs
takes the position that the price of the prototypes is included
in the value of production articles which are imported later,
as part of the price paid or payable for the production
articles. The double assessment of duties on prototypes
discourages development and testing in the United States. While
there are tariff provisions and special programs, such as
temporary importation under bond or drawback, which might be
used to avoid the double assessment of duties, these programs
have been found to be difficult to administer and utilize.
Given these concerns, the Committee intends that this new
tariff provision will result in the collection of duties on the
value of prototypes only once (through the inclusion of the
value of the prototypes in the value of any imported production
articles); and will be simple both to administer and to use.
This provision also authorizes the Secretary of the
Treasury to issue regulations authorizing the sale of
prototypes as scrap, waste or for recycling as an exception to
the general rule that (except as provided by the Secretary of
the Treasury) prototypes may not be sold after importation or
incorporated into other products that are sold. The Committee
strongly seeks to encourage the environmentally responsible
disposal of prototypes and therefore expects the Secretary of
the Treasury to issue regulations authorizing such disposal to
the fullest extent possible. The Committee understands that the
HTS currently provides that most types of waste or scrap may be
imported free of duty, including waste and scrap of aluminum,
copper, glass, ferrous metal, nickel, paper and paperboard,
precious metals, tin, zinc, leather, wood, and rubber.
Accordingly, the Committee intends that the regulations
promulgated by the Treasury Department, unlike current
programs, will impose minimal burdens with respect to imports
of prototypes that might involve the sale of waste or scrap
entitled to duty free entry. As well, the Committee expects the
Treasury Department to develop simplified procedures relating
to the payment of any duties owed.

Chapter 3--Prohibition on Importation of Products Made With Dog or Cat
Fur

(SECS.1441-1443)

Present law

Current Federal law permits the import, export, and the
domestic manufacture, sale, transportation, and introduction
into interstate commerce, of products containing cat and dog
fur.

Explanation of provision

This provision would prohibit the import, export, domestic
manufacture, offer for sale, sale, transportation, or
distribution of products made with dog or cat fur in the United
States. The provision would impose civil penalties of up to
$10,000 for each knowing and intentional violation of the ban,
up to $5,000 for each grossly negligent violation, and up to
$3,000 for each negligent violation. The provision would, in
addition, provide for the forfeiture of products marketed in
violation of the ban and potential debarment from engaging in
commerce involving fur products. The provision would also
impose criminal penalties for violations of the ban. The
provision authorizes the Secretary of the Treasury to offer,
under certain circumstances, rewards of $500 for information
concerning violations of the ban.
The provision reflects the Committee's intent that use of
debarment from importing, exporting, or otherwise engaging in
commerce in fur products as a civil penalty would be limited to
instances where either there was a criminal conviction or the
Secretary found a pattern or practice of several violations
that have resulted in civil penalties being imposed for knowing
and intentional or grossly negligent conduct in violation of
the ban. As in all enforcement actions, the U.S. Government
would bear the burden of proof and this legislation would not
modify that burden. The provision reported by the Committee
would, in addition, provide U.S. purchasers of fur products
with an affirmative defense if they can demonstrate they
exercised reasonable care in their purchase of the items that
were ultimately found to have violated the ban. In effect, the
bill would make the affirmative defense contingent upon the
U.S. purchaser's ability to show that they had exercised
reasonable care and due diligence in selecting their suppliers
and in their purchase of fur products to ensure that such
purchases would not violate the ban.
The provision would require the Secretary to issue
implementing regulations within 270 days of enactment. It would
also require the Secretary to develop a plan for effective
enforcement of the provision. The provision would require the
Secretary, not later than 1 year after the enactment of this
provision and annually thereafter, to provide Congress with a
report on the Sectretary's enforcement efforts, including
action taken to train and equip Customs Service staff to
accurately identify dog and cat fur products.
This provision would require the U.S. Customs Service to
develop and publish periodically a list of parties who have
been found (through criminal and civil conviction) to have
engaged intentionally, knowingly or with gross negligence in
the trade in dog and cat fur. This provision is intended to
better inform U.S. entities engaged in the fur trade and assist
them in their efforts at due diligence to ensure that the ban
is not violated. Toward that same end, the provision would also
direct the U.S. Customs Service to develop a program of
certifying legitimate U.S. and foreign laboratories to which
U.S. purchasers could obtain reliable assessments of whether
products they intend to purchase are made with dog or cat fur.
In addition, the provision would direct the Secretary of the
Treasury to investigate and report to Congress on any instances
of a pattern or practice of government support for trade in dog
and cat fur products. Finally, the provision would also close
an exception to the Fur Products Labeling Act necessary to
ensure that potential consumers are fully informed regarding
the content of fur products and to ensure the effective
enforcement of the ban.

Reason for change

This provision responds to substantial evidence that
products made with dog and cat fur are being imported into and
sold in the United States and that these products are often
deceptively labeled to prevent consumers, as well as retailers
and importers, from ascertaining the true content of the fur
contained in the products they purchase in the United States.
The available evidence suggests that producers of dog and cat
fur products house, transport, and slaughter these dogs and
cats for their fur in inhumane ways.
This provision seeks to discourage these inhumane
practices, and the development of any domestic market for dog
and cat fur products, by prohibiting importation and
exportation, as well as the domestic manufacture and marketing,
of dog and cat fur products. The provision authorizes both
civil and criminal penalties for violations of the law. Due to
the difficulty the U.S. Customs Service has experienced in
enforcing similar provisions of the customs laws, such as
section 307 of the Tariff Act of 1930 relating to prison labor,
the provision adds certain additional enforcement tools to
assist the Secretary of the Treasury in his or her enforcement
efforts. The provision also provides for continuing
congressional oversight and involvement in that enforcement
effort by requiring the Secretary to prepare an initial
enforcement plan and to report annually to Congress on his or
her enforcement efforts.

Chapter 4--Miscellaneous Provisions

ALTERNATIVE MID-POINT INTEREST ACCOUNTING METHODOLOGY FOR UNDERPAYMENT
OF DUTIES AND FEES (SEC. 1451)

Present law

Under current law, the discretionary authority for the
Secretary of the Treasury to prescribe alternative mid-point
interest accounting methodology used by importers terminates on
the date on which the ``Revised National Customs Automation
Test Regarding Reconciliation'' of the Customs Service
terminates, or on October 1, 2000, whichever occurs earlier.

Explanation of provision

This provision makes permanent the authority of the
Secretary of the Treasury to prescribe alternative mid-point
interest accounting methodology used by importers.

Reason for change

This provision provides the Secretary of the Treasury and
importers with certainty regarding accounting methodology
relating to mid-point interest.

EXCEPTION FROM MAKING REPORT OF ARRIVAL AND FORMAL ENTRY FOR CERTAIN
VESSELS (SEC. 1452)

Present law

U.S. Customs regulations applicable to section 434 of the
Tariff Act of 1930 (19 U.S.C. 1434) requires operators of
American flag ships carrying in-bond cargo between U.S. ports
to report and enter the vessels with U.S. Customs between
domestic ports. In addition, section 434 requires making formal
entry for a vessel anchored at Belle Isle Anchorage, Port of
Detroit, Michigan, awaiting availability of cargo or for taking
on a pilot or awaiting pilot services, prior to proceeding to
the Port of Toledo-Sandusky, Ohio.

Explanation of provision

This provision adds a seventh exception to the list of six
existing exceptions from making formal entry for a vessel
transporting bonded cargo, and for a vessel required to anchor
at Belle Isle Anchorage, Port of Detroit, Michigan, while
awaiting the availability of cargo or for the purpose of taking
on a pilot or awaiting pilot services, prior to proceeding to
the Port of Toledo-Sandusky, Ohio.

Reason for change

This provision would eliminate the burden of requiring a
vessel carrying bonded merchandise to make entry of the vessel
between domestic ports. The provision would also eliminate the
burden of a vessel making entry at Port of Detroit, Michigan
and again at the port of Toledo, Ohio, for a vessel anchored at
Port of Detroit, Michigan, while awaiting the availability of
cargo or for the purpose of taking on a pilot or awaiting pilot
services, prior to proceeding to the Port of Toledo, Ohio.

DESIGNATION OF SAN ANTONIO INTERNATIONAL AIRPORT FOR CUSTOMS PROCESSING
OF CERTAIN PRIVATE AIRCRAFT ARRIVING IN THE UNITED STATES (SEC. 1453)

Present law

Private aircraft are not permitted to land at San Antonio
International Airport, Texas. Such aircraft may land in Texas
cities as Beaumont, Brownsville, Corpus Christi, Del Rio, Eagle
Pass, El Paso, Houston, Laredo, McAllen, Presidio and Midland,
which have been designated as entry points for the U.S. Customs
service processing of private aircraft 19 CFR subpart C, Part
122.24).

Explanation of provision

This provision would designate the San Antonio
International Airport in San Antonio, Texas, for a period of
two years, as an airport at which private aircraft arriving in
the United States from a foreign area and having a final
destination in the United States may land for processing by the
Customs Service in accordance with section 122.24(b) of title
19, Code of Federal Regulations (19 C.F.R. 122.24(b)). This
provision also requires the Commissioner of Customs to prepare
and submit to Congress a report on the implementation of this
section for 2001 and 2002.

Reason for change

San Antonio is a growing international business development
area, in large part due to increased trade with Mexico.
Permitting private aircrafts to land there as a point of entry
to the United States is vital to the continued success of the
city's economic growth. At the same time, the Committee
recognizes the need to evaluate new points of entry, and,
therefore, setting a 2-year limit allows Customs to review the
impact of this added designation.

INTERNATIONAL TRAVEL MERCHANDISE (ITM) (SEC. 1454)

Present law

Section 555 of the Tariff Act of 1930 (19 U.S.C. 1555)
provides for the storage of International Travel Merchandise
(ITM) in a customs bonded warehouse (CBW). Industry practice
has been to shuttle carts, containing merchandise subject to
sale aboard an aircraft outside the United States, between the
plane and a U.S.-based CBW for purposes of replenishment.
Technically, the law requires that merchandise arriving at a
CBW be entered for warehouse and then withdrawn as it leaves
the CBW, which permits manipulation of the merchandise within
the CBW (replenishing depleted stock, removing outdated or
damaged stock, and replacing with new goods), while providing
assurance that bonded merchandise is fully accounted to
Customs.

Explanation of provision

This provision would amend section 555 of the Tariff Act of
1930 (19 U.S.C. 1555) by adding a new subsection to clarify
existing law relating to bonded warehouse storage of
international travel merchandise (ITM). This provision would
codify current practice where only merchandise that is taken
from the cart (in order to retire it from stock) is entered and
only merchandise that is used to replenish the cart is
withdrawn, while keeping in place safeguards for Customs to
ensure accountability of bonded merchandise.

Reason for change

A cart is usually shuttled to the CBW for replenishment of
only a small amount of stock. However, under current law, the
contents of the entire cart must be entered and then withdrawn,
even though only a small amount of merchandise is actually
being added to the cart. This process of entry and immediate
withdrawal of a cart's residual stock must take place thousands
of times a day throughout the United States, producing reams of
entry and withdrawal documents and creating paperwork that
burdens the CBW operator and impedes Customs' ability to manage
the process.
Industry practice has been to maintain a secure area
immediately outside the CBW where stock is manipulated: only
merchandise that is taken from the cart (in order to retire it
from stock) is entered and only merchandise that is used to
replenish the cart is withdrawn. This reduces the volume of
entry and withdrawal documents substantially. This provision
would permit this savings, while keeping in place safeguards
for Customs to ensure accountability of bonded merchandise.

CHANGE IN RATE OF DUTY OF GOODS RETURNED TO THE UNITED STATES BY
TRAVELERS (SEC. 1455)

Present law

Currently, U.S. residents traveling abroad are entitled to
$400 duty free allowance upon their return to the U.S. for
purchases made abroad. Purchases for personal and household
use, accompanying the returning traveler in excess of the $400
duty free allowance, are subject to flat rate of duty of 10%,
if the person claiming the benefit has not received the benefit
within the past thirty days. In addition, non-commercial
importations from U.S. insular possessions (American Samoa,
Guam, or the U.S. Virgin Islands) are subject to a 5% rate of
duty.

Explanation of provision

This provision would amend subchapter XVI of chapter 98 of
the HTS to provide staged reductions of duty rates applicable
to merchandise accompanying persons entering the United States,
and merchandise from American Samoa, Guam, or the Virgin
Islands of the United States. Specifically, the proposed
legislation would provide a staged reduction of the current 10%
duty-rate applicable to articles accompanying a person arriving
in the United States. The proposed staged reductions are as
follows: 5% effective January 1, 2000, 4% effective January 1,
2001, and 3% effective January 1, 2002. The bill would also
provide a staged reduction of the current 5% rate of duty for
articles imported from American Samoa, Guam, or the Virgin
Islands of the United States. The proposed staged reductions
are as follows: 3% effective January 1, 2000, 2% effective
January 1, 2001, and 1.5% effective January 1, 2002.

Reason for change

Under the North American Free Trade Agreement and the
Uruguay Round Agreements Act, tariffs on merchandise entering
the United States have undergone significant staged reductions
or eliminations. As a result, the average rate for dutiable
merchandise imported into the United States is now well under
5%. However, during this time, the rate of duty that Americans
pay for goods they bring back with them after traveling abroad
remains disproportionally high at 10%, and the rate of duty for
goods from American Samoa, Guam, and the Virgin Islands of the
United States has remained unchanged at 5%. These outdated
rates have not changed in 12 years, and do not give the
American travelers the benefit of U.S. trade negotiations and
duty reductions. This provision would bring the duty rate of
merchandise accompanying travelers closer to the average rate
of dutiable merchandise entering the United States, and lower
the duty rate for merchandise from American Samoa, Guam, and
the Virgin Islands of the United States.

TREATMENT OF PERSONAL EFFECTS OF PARTICIPANTS IN INTERNATIONAL ATHLETIC
EVENTS (SEC. 1456)

Present law

Personal effects of participants in, officials of, and
accredited members of delegations to, international athletic
events held in the United States not intended for sale or
distribution in the United States are exempt from duty until
December 31, 2002.

Explanation of provision

This provision would amend subchapter XVII of chapter 98 of
the HTS by inserting a new heading 9817.60.00 for duty free
treatment of the personal effects of participants in, officials
of, and accredited members of delegations to, international
athletic events, including the paralympics, held in the United
States provided that these items are not intended for sale or
distribution in the United States. H.R. 2715 would also exempt
the articles covered under this provision from taxes and fees
and would give the Secretary of the Treasury discretion to
determine which athletic events, articles, and persons are
covered under this provision.

Reason for change

The Committee recognizes the importance of international
athletic events and the tremendous efforts of the athletes and
participants. Although athletes and other officials connected
with certain sporting events are currently afforded duty free
treatment for their personal belongings and equipment under
current law, such treatment will expire in December 2002. This
legislation will give athletes and participants of future
competitions certainty regarding their future duty liability.
The Customs Service should ensure that this new provision
causes no delay to preparations that are being undertaken under
current law for the 2002 Salt Lake Winter Olympics and
Paralympics.

COLLECTION OF FEES FOR CUSTOMS SERVICES FOR ARRIVAL OF CERTAIN FERRIES
(SEC. 1457)

Present law

Current law prohibits U.S. Customs from collecting fees in
connection with the arrival of any ferry.

Explanation of provision

This provision amends section 13031 (b)(1)(A)(iii) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(b)(1)(A)(iii)) to allow for the collection of fees
for Customs services for the arrival of certain ferries.

Reason for change

Limitations on certain customs user fees established under
section 13031 (b)(1)(A)(iii) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(1)(A)(iii)) have
prevented U.S. Customs from issuing landing rights to ferries
arriving in the south Florida coastal region. This provision
will authorize U.S. Customs to collect user fees and issue
landing rights to certain ferries whose operations began on or
after August 1, 1999, and operate south 27 degrees latitude and
east of 89 degrees longitude.

ESTABLISHMENT OF DRAWBACK BASED ON COMMERCIAL INTERCHANGEABILITY FOR
CERTAIN RUBBER VULCANIZATION ACCELERATORS (SEC. 1458)

Present law

Section 313(j)(2) of the Tariff Act of 1930 19 U.S.C.
section 1313(j)(2) allows exporters to claim substitution
unused merchandise drawback if the substituted merchandise is
``commercially interchangeable'' with the imported merchandise.
The term-commercially interchangeable'' is not defined in the
statute, and there is uncertainty as to whether the chemicals
N-cyclohexyl-2-benzothiazolesulfenamide (CBS) and N-tert-Butyl-
2-benzothiazolesulfenamide (TBBS) are commercially
interchangeable for drawback purposes.

Explanation of provision

This provision would amend section 313(j)(2) of the Tariff
Act of 1930 (19 U.S.C. 1313(j)(2)) to provide that chemicals N-
cyclohexyl-2-benzothiazolesulfenamide (CBS) and N-tert-Butyl-2-
benzothiazolesulfenamide TBBS) are commercially interchangeable
for drawback purposes.

Reason for change

Based on the legislative history of the amendment to the
drawback statute, which changed the criteria for substitution
drawback from a fungibility to a commercially
interchangeability standard, (H.R. Rept. No. 103 361, 103rd
Cong., lst Sess. (1993) at 131), the Committee has determined
that chemicals N-cyclohexyl-2-benzothiazolesulfenamide (CBS)
and N-tert-Butyl-2-benzothiazolesulfenamide (TBBS) fit the
commercially interchangeable standard. This determination is
based on the specific facts regarding these two chemicals: The
sole active component of each chemical is identical; and when
used in a finished product, the functionality of both chemicals
is indistinguishable by the customer and scientist. Both
chemicals were originally classified within the same tariff
number but subsequently changed in order to provide
preferential GSP treatment to one of the chemicals, not for
reasons relating to their identity of chemical structure by
molar weight or functionality. In addition, the principal
customers of both chemicals have stated in writing that both
chemicals are used for the same purposes--to aid vulcanization
in the processing of rubber, and that they perform the same
function, are utilized on the same equipment, and are purchased
on the market the same relative value.

CARGO INSPECTION (SEC. 1459)

Present law

Section, 58(b) of the Tariff Act of 1930 (19 U.S.C. 58(b))
authorizes the Secretary of the Treasury to make Customs
services available for a fee at certain small airports. Section
2425 of the Miscellaneous Trade and Technical Corrections Act
of 1999 (113 Stat. 127, 181), authorized the Commissioner of
Customs to establish a fee-for-service pilot program for fiscal
year 1999 at an international airport located at a seaport that
serviced more than 185,000 tons of air cargo in 1997. Broward
County entered into an agreement with U.S. Customs to provide
24 hour cargo service for one year. That agreement expired in
September 2000. U.S. Customs currently provides passenger
clearance service five days per week between the hours of 9
a.m. and 5 p.m.

Explanation of provision

This provision authorizes the Commissioner of Customs to
implement a fee-for-service agreement with Broward County to
provide customs service for a period of two years, renewable
thereon an annual basis at the Fort Lauderdale-Hollywood
International Airport. This fee for service is for cargo
processing only, and includes providing the necessary
infrastructure, and other services for cargo clearance. When
such services have been provided for at least a period of two
years on a fee-for-service basis and commercial consumption
level reaches 29,000 entries per year, Customs will continue to
provide all such service, and no other charges, other than
those fees authorized by section 13031(a) of the consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58(b)),
may be collected for those services.

Reason for change

The fee-for-service agreement between Broward County and
U.S. Customs has expired, and Broward County continues to
require this service. This provision will allow U.S. Customs to
continue this fee-for-service arrangement for at least two more
years. The agreement may be renewed, or if after this time,
consumption level at the airport reaches 29,000 entries per
year, U.S. Customs will continue to all such service, and no
other charges, other than those fees authorized by section
13031(a) of the consolidated Omnibus Budget Reconciliation Act
of 1985 (19 U.S.C. 58(b)), may be collected for those services.

TREATMENT OF CERTAIN MULTIPLE ENTRIES OF MERCHANDISE AS SINGLE ENTRY
(SEC. 1460)

Present law

Current law requires that the goods be classified in the
condition as they arrive. This includes large articles,
particularly machinery, which may not be able to fit on a
single conveyance, such as a truck or plane. In addition, it is
common that in air shipments, adjustments are made to the
amount of cargo laden because of flight conditions. As a result
of these shipping conditions, parts of entireties do not arrive
together, which causes classification or entry problems with
the U.S. Customs Sevice.

Explanation of provision

This provision will amend section 1484 of title 19 to
provide authority to U.S. Customs to treat goods purchased and
invoiced as a single entity and shipped unassembled or
disassembled in separate shipments over a period of time as a
single transaction for Customs entry purposes. The provision
requires importers to request such treatment in advance of
entry, and also requires the Secretary of the Treasury to issue
regulations setting forth the information required for this
type of entry.

Reason for change

The proposed changes, supported by both importers and the
Customs Service, are needed to address large shipments that
cannot be shipped as an entirety.

REPORT ON CUSTOMS PROCEDURES (SEC. 1461)

Present law

Currently, the U.S. Customs Service ``entry'' process is
divided into two parts: ``entry'' and ``entry summary.'' In the
last fiscal year 21.4 million entries were filed with the U.S.
Customs Service, more than 98% of them electronically. The
importer has the option of filing all the data at once or in
separate transmissions. The Bureau of Census receives data
electronically from the U.S. Customs Service on a weekly basis
so that it may be used in compiling the ``Balance of Trade''
report.

Explanation of the provision

The provision requires the Secretary of the Treasury, in
consultation with U.S. importers and other interested parties,
to review customs procedures, laws, and regulations relating to
the entry of merchandise and conveyances into the United
States, and to report to Congress within 180 days from the
effective date of this Act, changes that should be made to
reduce the reporting and record retention requirements.

Reason for change

The Committee is concerned that the collection of import
data may be overly time consuming and unnecessarily costly and
would like to explore a system of periodically reporting the
data on an aggregate basis. In addition, the Committee wishes
to examine what data is necessary at time of cargo release in
order to determine admissibility. It is expected that the study
will provide the factual basis for evaluation of the current
statistical collection system and consideration of possible
changes to it.

DRAWBACK FOR RECYCLED MATERIALS (SEC. 1462)

Present law

Under existing current law (19 USC 1313(c)) an importer may
be eligible for duty drawback (refund of 99% of the import duty
paid) on products that are returned to the importer and are
deterinined to be manufacturer defectives. The statutory
purpose of this provision is to reimburse importers for import
duties paid on product that is not consumed within U.S.
commerce. To be eligible for defective product duty drawback,
the product must either be: completely destroyed to the extent
that the product has no commercial value; or exported out of
the United States. The purpose of the destruction or export
requirement is to ensure that the importer does not benefit
unfairly by collecting drawback as well as being compensated
for the resale of the defective product.

Explanation of provision

This provision expands the definition of ``destruction'' to
include recycling, which is defined as any act in which
materials are recovered from the destroyed merchandise.

Reason for change

This provision will create an economic incentive for
importers to recycle their defective goods rather than simply
destroy them.

PRESERVATION OF CERTAIN REPORTING REQUIREMENTS (SEC. 1463)

Present law

Section 163 of the Trade Act of 1974 directed the U.S.
International Trade Commission (ITC) to submit a report to
Congress at least once a year on the operation of the trade
agreements program. Section 181 of the Trade Act of 1974, as
amended, directed the United States Trade Representative (USTR)
to report annually on foreign trade barriers. These mandates
were canceled effective May 15, 2000 by section 3003 of the
Federal Reports Elimination and Sunset Act of 1995, Pub. L.
104-66, Title III, sec. 3003, 109 Stat. 734.

Explanation of provision

This provision would direct the ITC to submit to Congress a
report on the operation of the trade agreements program at
least once a year and it would also direct USTR to submit to
Congress an annual report on foreign trade barriers. These
reports will be submitted notwithstanding section 3003 of the
Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C.
1113 note).

Reason for change

The Committee believes that the ITC's report on the
Operation of the Trade Agreements Program (also known as ``The
Year in Trade'') and that the USTR report on foreign trade
barriers (known as ``The National Trade Estimate Report on
Foreign Trade Barriers''), provide valuable information to
Congress as it considers trade policy and legislation. The
Committee, therefore, believes that these reports should be
reauthorized.

Subtitle C--Effective Date

EFFECTIVE DATE (SEC. 1471)

Except as otherwise provided in this title, the amendments
made by this title shall apply with respect to goods entered,
or withdrawn from warehouse, for consumption, on or after the
15th day after the date of enactment of this Act.

Title II--Other Trade Provisions

TRADE ADJUSTMENT ASSISTANCE FOR CERTAIN WORKERS AFFECTED BY
ENVIRONMENTAL REMEDIATION AFTER CLOSURE OF A COPPER MINING FACILITY
(SEC. 2001)

Present law

Title II of the Trade Act of 1974, as amended, authorizes
trade adjustment assistance (TAA) in the form of training and
income support for workers adversely affected by import
competition. Under the TAA program, a worker must be certified
by the Secretary of Labor as eligible for benefits before
applying for assistance. Workers are not eligible to apply for
benefits, however, if they become separated from employment
after the expiration for the 2-year period subsequent to
issuance of the certification by the Secretary.

Explanation of provision

The provision provides that workers at a copper mining
facility in White Pine, Michigan who were employed at the time
of the original certification and who remained at the facility
to conduct environmental remediation shall be eligible to apply
for TAA program benefits, regardless of their date of
separation.

Reason for change

The workers at a copper mining facility in White Pine,
Michigan received TAA certification in 1995 because of
increased import competition from Canada. The workers were re-
certified in 1997 while the mine continued the process of
closing. Although the mine ceased operations in 1997, a group
of workers, employed at the mine at the time the company was
first certified, will remain through 2001 to complete federally
mandated environmental remediation. The provision establishes
TAA eligibility for these workers, notwithstanding the date
when the mine ceased production.

Title III--Extension of Nondiscriminatory Treatment to Georgia

FINDINGS AND TERMINATION OF THE APPLICATION OF TITLE IV OF THE TRADE
ACT OF 1974 (SEC. 3001-3002)

Present law

Georgia's NTR status is currently governed by Title IV of
the Trade Act of 1974, as amended by the Customs and Trade Act
of 1990 (title IV). Section 402 of title IV (also known as the
Jackson-Vanik amendment) sets forth requirements relating to
freedom of emigration, which must be met or waived by the
President in order for the President to grant nondiscriminatory
normal trade relations (NTR) status to a non-market economy
country. Title IV also requires that a trade agreement remain
in force between the United States and a non-market economy
country receiving NTR status and sets forth minimum provisions
which must be included in such agreement.
Georgia, which was granted NTR in 1992, was found to be in
full compliance with the Jackson-Vanik freedom of emigration
requirements on June 3, 1997. Since then, NTR has been granted
to Georgia subject to semiannual review, and potential
disapproval by a Joint Resolution of Congress.

Explanation of provision

The Committee recognizes that title IV of the Trade Act of
1974 has promoted the right to emigrate. Since the dissolution
of the Soviet Union, minority groups have secured the return of
communal properties confiscated during the Soviet period,
thereby facilitating the reemergence of communal organizations
and participation in domestic affairs. The report on compliance
with the emigration provisions of title IV, finds that Georgia
is in compliance with the emigration provisions of title IV.
The Committee finds that Georgia should be graduated from title
IV, thereby permitting the extension of permanent normal trade
relations.
With respect to national minorities, the Committee notes
that the member states of the Organization for Security and
Cooperation in Europe (OSCE), including the former USSR and its
successor states, have committed to ``adopt, where necessary,
special measures for the purpose of ensuring to persons
belonging to national minorities full equality, individually as
well as in community with other members of their group.''

Title IV--Grey Market Cigarette Compliance (SEC. 4001-4004)

AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

TECHNICAL CORRECTION TO RULES GOVERNING RE-IMPORTATION OF CIGARETTES

Present Law

An excise tax equal to 34 cents per pack of 20 cigarettes
is imposed on cigarettes manufactured, imported, or brought
into the United States.¹ Separate taxes are imposed
on other tobacco products, including cigars, smokeless tobacco,
and pipe and roll-your-own tobacco. The taxes do not apply to
tobacco products that are exported from the United States
(including removal to Puerto Rico).
---------------------------------------------------------------------------
\1\ Effective January 1, 2002, this tax rate will increase to 39
cents per pack of 20 cigarettes. Tax rates on other tobacco products
will increase proportionately at that time.
---------------------------------------------------------------------------
Tobacco products may be removed without payment of tax from
domestic manufacturers' premises for export only if the
packages bear prescribed markings. Present law prohibits the
reimportation or bringing into the United States ²
of domestically manufactured tobacco products unless the
products are returned to the premises of a manufacturer or an
export warehouse proprietor.
---------------------------------------------------------------------------
\2\ This includes the bringing back into the United States of
tobacco products that have been removed to Puerto Rico.
---------------------------------------------------------------------------

Explanation of provision

A technical correction is made to clarify that domestically
produced cigarettes may be reimported into the United States
for personal use in quantities that are exempt from tax and
duty under the Harmonized Tariff Schedule. No amount of tobacco
products other than the numeric quantities provided for in the
Tariff Schedule may be re-imported or brought into the United
States as a personal use quantity. It is, however, the
expectation of the Committee that the Customs Service will
permit an individual to relinquish voluntarily a de minimis
amount of tobacco products in excess of such quantity without
incurring penalties.
Effective date.--The technical correction is effective as
if included in the Balanced Budget Act of 1997.

Reasons for change

This technical correction is made to clarify that
domestically produced cigarettes may be reimported into the
United States for personal use in quantities that are exempt
from tax and duty under the Harmonized Tariff Schedule.

MODIFICATIONS TO RULES GOVERNING RE-IMPORTATION OF U.S.-MANUFACTURED
CIGARETTES

Present law

An excise tax equal to 34 cents per pack of 20 cigarettes
is imposed on cigarettes manufactured, imported, or brought
into the United States.³ Separate taxes are imposed
on other tobacco products, including cigars, smokeless tobacco,
and pipe and roll-your-own tobacco. The taxes do not apply to
tobacco products that are exported from the United States
(including removal to Puerto Rico).
---------------------------------------------------------------------------
\3\ Effective January 1, 2002, this tax rate will increase to 39
cents per pack of 20 cigarettes. Tax rates on other tobacco products
will increase proportionately at that time.
---------------------------------------------------------------------------
The Treasury Department is authorized to require tobacco
products destined for export to be packaged in specially marked
packages to distinguish the products from products for the U.S.
domestic market. This packaging is a condition of removal from
the manufacturers' premises without payment of tax. If products
removed for export are diverted into the U.S. domestic market,
numerous present law sanctions apply. Any person (including a
manufacturer, a wholesale distributor, or a retailer) who
knowingly holds untaxed tobacco products removed for export for
sale in the U.S. domestic market is subject to civil and/or
criminal penalties for holding the tobacco products. Such a
person further is liable as well for the tax (and for penalties
for failure to pay the tax and to file a return, where
appropriate). Finally, present law authorizes the Treasury
Department to seize any export-labeled tobacco products removed
after December 31, 1999, and found in the U.S. domestic market.
Present law prohibits the re-importation or bringing into
the United States of domestically manufactured tobacco products
unless the cigarettes are returned to the premises of a
manufacturer or an export warehouse proprietor.⁴ The
Treasury Department has defined a manufacturer eligible to
receive re-imported tobacco products as an entity that
manufactures domestically at least as many cigarettes as it re-
imports. Further, Treasury regulations require that any re-
imported or brought in tobacco products be re-packaged in
appropriate domestic market packaging before being removed
(tax-paid) for sale in the U.S. domestic market. Tobacco
products that enter the U.S. domestic market in violation of
these rules are subject to seizure by the Federal Government
under present law. The Treasury Department administratively
determines how to dispose of forfeited products.
---------------------------------------------------------------------------
\4\ This includes the bringing back into the United States of
tobacco products that have been removed to Puerto Rico.
---------------------------------------------------------------------------

Explanation of provision

The provision codifies present Treasury Department
regulations on the disposition of domestically produced tobacco
products that are re-imported or brought into the United States
and modifies the regulations to limit the disposition of the
tobacco products to return to the original manufacturer of the
product or to an export warehouse proprietor authorized by the
original manufacturer to receive the products. This
codification includes without change the present Treasury
regulation requirement that re-imported tobacco products be re-
packaged in appropriate domestic packaging before being removed
(tax-paid) for sale in the U.S. domestic market.
The provision also provides that tobacco products that are
forfeited to the Federal Government under present-law
provisions must be destroyed (rather than being disposed of in
any manner administratively determined by the Treasury
Department).
The provision expands the application of the special tax
penalty for re-importing tobacco products to include the sale
in the U.S. domestic market of tobacco products labeled for
export (but not actually exported). Thus, this penalty can be
imposed in addition to the present-law penalties and other
sanctions that apply to tobacco products that might be removed
for export, but instead are diverted into the U.S. domestic
market. The provision also authorizes the Treasury Department
to seize all export-labeled tobacco products found in the U.S.
domestic market regardless of the date of removal.
Finally, the provision directs the Treasury Department to
report to the Congress on any adverse economic effects that may
be experienced by export warehouses as a result of the
provision in the bill which conditions the ability to store re-
imported tobacco products on approval of the warehouse by the
original manufacturer of the product.
Effective date.--The provision is effective beginning 90
days after the date of enactment.

Reasons for change

The Committee decided to codify the substance of the
present Treasury Department regulations governing re-
importation of tobacco products and to expand U.S.
manufacturers' control over products bearing their trademark
when those products are re-imported or brought back into the
United States. This codification should preclude any
manufacturer from receiving these products and marketing them
in violation of trademark law. Additionally, the Committee
believes that the appropriate disposition of forfeited tobacco
products is destruction.

AMENDMENTS TO THE TARIFF ACT OF 1930

Present law

No provision.

Explanation of provision

This provision creates a new title in the Tariff Act of
1930 that will impose certain requirements on imports of
cigarettes.
First, the original manufacturer of the cigarettes being
imported into the United States must certify that it has timely
submitted, or will timely submit, to the Secretary of Health
and Human Services the lists of ingredients described in
section 7 of the Federal Cigarette Labeling and Advertising Act
(FCLAA). All importers of cigarettes brought into the United
States (like U.S. manufacturers of domestically sold
cigarettes) must currently file an ingredients list. This 103
provision will simply require importers to provide
certification that they are, or will be, in compliance with
this existing requirement.
Second, the warning statements specified in section 4 of
the FCLAA must be permanently imprinted on the cigarette
packaging. Currently, the Federal Trade Commission has allowed
importers, under certain circumstances, to comply with the
requirements of FCLAA by affixing adhesive labels with
compliant warning statements, rather than requiring this
information be permanently imprinted on the packaging, thus
allowing the importation of cigarettes not intended for sale in
this country.
Third, the importer must certify that it is in compliance
with a rotation plan approved by the Federal Trade Commission
pursuant to section 4(c) of the FCLAA. Under current law, the
FTC is authorized to grant certain waivers to the rotation plan
requirements specified in section 4(c)(1) of FCLAA. This
provision does not alter the FTC's authority to continue to
grant such waivers.
Fourth, if the cigarettes bear a United States trademark
registered for such cigarettes, the owner of such trademark, or
such owner's authorized representative, must consent to the
importation of such cigarettes into the United States. The gray
market restriction provisions of this bill are crafted for the
special circumstances of tobacco.
The provision also includes certain exemptions to the above
requirements. These exemptions relate to cigarettes imported in
personal use quantities, as well as those imported for
analysis, noncommercial use, reexport or repackaging. With
respect to personal use, this provision makes clear that
foreign produced cigarettes may be imported into the United
States for personal use in quantities that are exempt from tax
and duty under the Harmonized Tariff Schedule. No amount of
tobacco products other than the numeric quantities provided for
in the Tariff Schedule may imported as a personal use quantity.
It is, however, the expectation of the Committee that the
Customs Service will permit an individual to relinquish
voluntarily a de minimis amount of tobacco products in excess
of such quantity without incurring penalties.
The penalties available for failure to satisfy the
provision of section 802 include certain civil penalties and
forfeiture of any tobacco products, cigarette paper or tube
that is seized.
Effective date.--The provision is effective upon enactment.

Reasons for change

The Balanced Budget Act of 1997 (BBA `97) imposed
restrictions on the reimportation of export-label cigarettes
manufactured in the United States. This provision was intended
to prevent the evasion of federal excise taxes and assist the
States in implementing the goals the tobacco settlement
agreements then in place between certain States (Florida and
Mississippi) and cigarette manufacturers. BBA `97, however, did
not impose any restrictions on the importation of cigarettes
manufactured abroad that bear the trademark of a product
manufactured in the United States and which are diverted from
foreign markets for sale in the United States, so-called ``gray
market'' cigarettes.
There is great concern that imports of gray market
cigarettes have increased dramatically since the Master
Settlement Agreement was reached, thereby displacing sales of
domestically manufactured cigarettes bearing the same
trademark. This is of concern to the Committee because such
cigarettes may not fully comply with U.S. health and safety
standards. It is also a concern because the foreign
manufactured cigarettes are not counted in the formulae used to
calculate payments that the tobacco companies are required to
make under the tobacco settlement agreements, including the
Master Settlement Agreement, individual State settlements and
the Phase II Agreement between tobacco manufacturers and U.S.
tobacco farmers and quota holders.
The Committee has been advised by members of the National
Association of Attorneys General that certain importers, in
connection with their importation of gray-market cigarettes
into the United States, have been evading and circumventing the
requirements of the warning label and ingredient disclosure
requirements of the Federal Cigarette Labeling and Advertising
Act (FCLAA). Because multiple federal agencies have
jurisdiction over the varying elements of the FCLAA health and
safety provisions, existing law is inadequate to detect in a
timely manner fraudulent submissions or to audit compliance by
importers.
The Committee finds that the requirements of section 4004
for the entry into the United States of cigarettes, whether
manufactured domestically or abroad, are necessary to ensure
compliance with the critical health and safety provisions of
FCLAA, and are largely the same as the requirements for
domestically manufactured cigarettes. Certain certifications
are not required with respect to cigarettes manufactured within
the United States, that are intended for and remain in this
country for sale, because the appropriate federal agencies have
complete jurisdiction over the manufacturers and distributors
of such products. However, law enforcement agencies do not have
the same scope of authority to investigate potential violations
by foreign manufacturers and importers.
For example, the Department of Justice has authority to
enforce the criminal penalty in FCLAA, 15 U.S.C. Sec. 1338,
applicable to both the warning label and ingredient disclosure
requirements of that Act. In conducting an investigation of a
FCLAA violation, the Department of Justice would have full
authority to obtain relevant documents and gain entry into
domestic manufacturing and distribution facilities, including
through compulsory process. However, if the alleged violation
of FCLAA is by an importer, the Department of Justice, because
of the limits of its territorial power, could not gain access
through compulsory process to the importer's foreign
facilities, nor could the Department compel the production of
documents in the hands of a foreign manufacturer that is
unrelated to the importer of the product.
Similarly, the Federal Trade Commission (FTC), which, along
with the Department of Justice, enforces compliance with the
warning label regime contained in FCLAA, has authority under
the Federal Trade Commission Act, 15 U.S.C. Sec. 41, et seq, to
require the production of corporate information and documents,
to review manufacturing records, and to require compliance
reports from manufacturers. However, the FTC's authority to
conduct investigations through compulsory process also is
limited by the scope of its territorial authority. In light of
these enforcement limitations, the certification requirements
of section 4004 provide additional enforcement tools to ensure
compliance with domestic health and safety laws.
Requiring the U.S. trademark holder to consent to the
importation of such cigarettes is necessary to ensure full
compliance with the restrictions applicable to the unique
circumstances of gray market cigarettes. The Committee believes
that the consent of the trademark holder is essential because
these parties have the greatest incentive to monitor imports of
cigarettes bearing their trademark and because any complicity
by the trademark holder in this trade can be addressed more
easily in the courts. It is the expectation and intent of the
Committee that this requirement will not inhibit the
importation of any legitimately traded cigarettes. In the
Committee's view, the unique nature of tobacco products and the
importance of the States' tobacco settlement agreements fully
justify the use of U.S. trademarks in this manner. In this
regard, however, it should be noted that the gray market
restriction provisions of this bill are crafted for the special
circumstances of tobacco. This provision, however, is not
intended to alter current policies with regard to other gray-
market goods.
It is the Committee's understanding that there is
litigation currently pending regarding the constitutionality of
the Master Settlement Agreement. Nothing in this legislation or
in this report shall be construed as validating or invalidating
the constitutionality of the MSA.

III. VOTES OF COMMITTEE

In compliance with section 133 of the Legislative
Reorganization Act of 1946, the Committee states that H.R.
4868, as amended, was ordered favorably reported with a quorum
present by voice vote on September 19.

IV. CONGRESSIONAL ACTION

V. BUDGETARY IMPACT

In compliance with sections 308 and 403 of the
Congressional Budget Act of 1974, and paragraph 11(a) and (b)
of rule XXVI of the Standing Rules of the Senate, and section
423 of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4)
the following letter has been received from the Congressional
Budget Office on the budgetary and regulatory impact of the
legislation:

U.S. Congress,
Congressional Budget Office,
Washington, DC, October 4, 2000.
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 H.R. 4868, the
Miscellaneous Trade and Technical Corrections Act of 2000.
If you wish further details on this estimate, we will he
pleased to provide them. The CBO staff contact is Erin
Whitaker.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director.)
Enclosure.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 4868--Miscellaneous Trade and Technical Corrections Act of 2000

Summary: H.R. 4869 would make technical corrections and
miscellaneous amendments to certain trade laws. CBO estimates
that each of the provisions in the act that would affect rates
of duty would reduce governmental receipts (revenues) by less
than $500,000 each year. Each of the provisions that would
affect direct spending would increase such spending by less
than $500,000 each year. Other provisions in the act that would
alter treatment for certain products relative to current trade
law would reduce receipts by $15 million in 2001, by $38
million over the 2001-2005 period, and by $73 trillion over the
2001-2010 period. Because H.R. 4868 would affect direct
spending and receipts, pay-as-you-go procedures would apply.
H.R. 4868 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would not affect
the budgets of state, local, or tribal governments, H.R. 4868
would impose private-sector mandates on persons engaged in
business activities involving products that contain cat or dog
fur and persons engaged in the importation of certain foreign
produced cigarettes. CBO estimates that the direct, costs of
those mandates would not exceed the annual threshold for
private-sector mandate established by UMRA ($109 million in
2000, adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 4868 is shown in the following table.
The act would reduce federal revenues and would increase
federal spending slightly in budget functions 750
(administration of justice) and 600 (income security).

----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars
--------------------------------------------
2001 2002 2003 2004 2005
----------------------------------------------------------------------------------------------------------------
CHANGES IN REVENVES

Duty suspensions and reductions.................................... (\1\) (\1\) (\1\) (\1\) (\1\)
Refunds of customs duties.......................................... -10 0 0 0 0
Treament of certain imported goods................................. (\1\) (\1\) (\1\) (\1\) (\1\)
Extension of PNTR0 \2\ to Georgia.................................. (\1\) (\1\) (\1\) (\1\) (\1\)
Imports and exports of certain cigarettes.......................... -5 -5 -6 -6 -6
--------------------------------------------
Total changes in revenues.................................... -15 -5 -6 -6 -6

CHANGES IN DIRECT SPENDING OUTLAYS

Customs fees....................................................... (\1\) (\1\) (\1\) (\1\) (\1\)
Trade adjustment assistance........................................ (\1\) (\1\) (\1\) (\1\) (\1\)
Total changes in direct spending............................. (\1\) (\1\) (\1\) (\1\) (\1\)
--------------------------------------------
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500.000
\2\ Permanent normal trade relations.

Basis of Estimate

Revenues
Title I would make various changes to certain trade laws.
Subtitle A would create or extend temporary duty suspensions or
reductions on certain intermediary products and chemicals
imported into the United States. CBO estimates that each of
these provisions would reduce government revenues by less than
$500,000 each year, net of income and payroll tax offsets.
Subtitle B would provide for refunds of customs duties paid on
certain imported products, CBO estimates that the majority of
these provisions would reduce government revenues by less than
$500,000 each year, net of income and payroll tax offsets.
One provision of subtitle B would provide for the refund of
customs duties paid on certain athletic shoes. Based on
information from the U.S. Customs Service, CBO estimates that
this provision would reduce government revenues by $9 million
in 2001, net of income and payroll tax offsets, with no
additional reductions over the 2002-2010 period. Certain other
provisions of subtitle B would provide for the refund of
customs duties paid on certain entries of tomato sauce
preparation. Based on information from the Customs Service, CBO
estimates that these provisions would reduce government
revenues by $2 million in 2001, net of income and payroll tax
offsets, with no additional reductions over the 2002-2010
period.
In addition, title I would alter treatmennt of certain
imported goods in several ways. It would prohibit the
importation of products made with cat and dog fur, would allow
refunds of customs duties for certain imported products that
are then recycled, and exempt the personal effects of
participants in international athletic events from any customs
duties. CBO estimates that each of these provisions would
reduce government revenues by less than $500,000 each year,
net, of income and payroll tax offsets. This estimate is based
on information from the International Trade Commission, the
U.S. Customs Service, and various other trade sources.
Title III would allow the President to grant permanent
normal trade relations (PNTR) to Georgia. Georgia has been
found to be in full compliance with the Jackson-Vanik freedom
of emigration requirements and has been granted normal trade
relations (NTR), subject to a semiannual review and disapproval
by a joint resolution of Congress. Without PNTR, the United
States could not trade with Georgia under the World Trade
Organization (WTO). Because Georgia acceded to the WTO on June
14, 2000, revenues could increase due to less restrictive
quotas on textiles and apparel once PNTR was established.
However, CBO estimates any such duties would be negligible.
Title IV would impose restrictions on exports and imports
of certain categories of cigarettes. It would require that all
imported cigarettes comply with requirements detailing their
ingredients, as well as certain labeling and trademark
requirements. Based on information from the Federal Trade
Commission, the International Trade Commission, the Joint
Committee on Taxation, and various other sources, CBO estimates
that this provision would reduce revenues by $5 million in
2001, by $29 million over the 2001-2005 period, and by $63
million over the 2001-2010 period.
Direct Spending
Title I would authorize the Customs Service to collect fees
for the arrival of ferries and to establish a fee-for-service
agreement to provide certain services at the Fort Lauderdale-
Hollywood International Airport. The Customs Service is
authorized to spend these fees without further appropriations
action, so CBO estimates that the net impact of these
provisions would be less than $500,000 in each year.
Title II would make a small number of workers eligible to
receive trade adjustment assistance benefits. These workers
were originally authorized to receive benefits under
certification number TA-W-31,402 but did not lose their jobs
right away. Under current law, these
workers have a limited time after the petition for
certification is accepted in which to apply for these benefits.
The act would remove any limitation on the period during which
benefits could be received. CBO estimates that providing trade
adjustment assistance benefits to these workers would cost less
than $200,000 over the 2001-2010 period.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up procedures for
legislation affecting receipts or direct spending. The net
changes in outlays and govemmental receipts that are subject to
pay-as-you-go procedures are shown in the following table. (The
outlay effects would total less than $500,000 a year.) For the
purposes of enforcing pay-as-you-go procedures, only the
effects in the budget year and the succeeding four years are
counted.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------------------------------
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in receipts........................................... -15 -5 -6 -6 -6 -6 -7 -7 -7 -8
Changes in outlays............................................ 0 0 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Estimated impact on State, local, and tribal governments:
H.R. 4868 contains no intergovernmental mandates as defined in
UMRA and would not affect the budgets of state, local, or
tribal governments,
Estimated impact on the private sector: H.R. 4868 would
impose private-sector mandates on persons engaged in business
activities involving products that contain cat or dog fur and
persons engaged in the importation of certain foreign produced
cigarettes, CBO estimates that the direct costs of those
mandates would not exceed the annual threshold for private-
sector mandates established by UMRA ($109 million in 2000,
adjusted annually for inflation).
First, the act would impose a mandate by prohibiting all
commercial activities occurring in the United States that
involve products made with cat or dog fur. Such activities
include the importing, exporting, merchandising, and
transporting of these goods. According to the Humane Society,
within the United States there is no manufacture of products
fabricated of dog and cat fur. Currently, the Department of
Commerce classifies products made of cat and dog fur into
categories with goods made of certain other animal skins. In
1999, the United States imported and exported $36 million worth
of products within these categories. Since products made with
cat and dog fur represent a fraction of these values, the
direct cost of complying with this mandate measured in lost net
income would fall well below the annual threshold established
by UMRA.
Second, the act would impose a mandate by prohibiting the
importation of certain foreign-produced cigarettes. According
to the International Trade Commission, the United States
imported $106 million worth of cigarettes in 1999.
Historically, the foreign-source cigarettes that would be
Prohibited account for no more than 16 percent of the total
value of imported cigarettes, based on information provided by
a tobacco company representative and the Florida Attorney
General's Office. Moreover, the income of persons or business
engaged in importing such cigarettes would be a fraction of
those values. Consequently, CBO estimates that the direct cost
of complying with this mandate would fall well below the annual
threshold established by UMRA.
Previous CBO estimate: On July 25, 2000, CBO transmitted a
cost estimate of H.R. 4868 as ordered reported by the House
Committee on Ways and Means on July 19, 2000. This estimate
reflects the addition of several provisions to the House
version of H.R. 4868, particularly those provisions dealing
with the refund of customs duties on certain athletic shoes and
with the restrictions on exports and imports of certain
cigarettes. These changes would further reduce revenues,
relative to the House version of H.R. 4868, by $15 million in
2001, by $38 million over the 2001-2005 period, and by $73
million over the 2001-2010 period.
Estimate prepared by: Revenues: Erin Whitaker; customs
fees: Mark Graowicz, trade adjustment assistance: Paul
Cullinan; impact on State, local, and tribal governments: Leo
Lex; impact on the private sector: Paige Piper/Bach.
Estimate approved by: G. Thomas Woodward, Assistant Direct
for Tax Analysis, and Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.

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).