Explanation of Duty Suspension Process

EXPLANATION OF DUTY SUSPENSION PROCESS -- (Extensions of Remarks - January 29, 2008)

SPEECH OF
HON. RUSH D. HOLT
OF NEW JERSEY
IN THE HOUSE OF REPRESENTATIVES
TUESDAY, JANUARY 29, 2008

* Mr. HOLT. Madam Speaker, the government often negotiates agreements or promulgates regulations that may produce unintended consequences for certain individuals. In such instances, Congress will review the implementation of the law and try to rectify those unintended problems even if the general requirements should remain. For example, exemptions are made in transportation regulations, Government land use, and trade legislation. Such is the case with the Harmonized Tariff Schedule, which was enacted in 1989. Since then Congress has acted occasionally to reduce, suspend, or repeal duties on certain imports as a matter of economic fairness and competitiveness.

* Tariffs serve not only to raise revenue for the Government, but also to benefit American business and industry and holdings. Tariffs are notoriously complicated in their effects, and the policies are very difficult to get right.

* Each of the nine bills I prepared recently would either suspend or reduce the import duty on a specific chemical compound. Each bill and the chemical compound in question is publicly available and open for all to see and comment on. I believe such openness is an important part of effective Government.

* By suspending the import duty on products not made domestically in the United States, Congress can remove an economic barrier that might send production abroad--taking with it good-paying jobs--and also can help lower costs to consumers for the final products. These bills were all submitted to comply with procedures and criteria set by the House Ways and Means Subcommittee on Trade. None of the chemical compounds is manufactured in the U.S., the value of each of the requested duty suspensions is no more than $500,000, and their suspensions can be enforced by U.S. Customs officials. The products produced using the imported feedstocks are deemed to be desirable to produce and use in the U.S.

* Introduction of the bills is just the beginning of a long process of scrutiny by the U.S. Trade Representative, U.S. International Trade Commission, and the Department of Commerce. Each one will seek information about potential domestic production, present and future imports, and will research the revenue loss associated with the suspension. Additionally, the Subcommittee on Trade will solicit public comment from all interested parties. An objection at any point throughout this process can disqualify the product for further consideration. At the end of this process, the Committee on Ways and Means will put together a miscellaneous tariff bill that includes hundreds of items that have met these rigorous criteria. I expect that temporarily suspending the duty on the nine products I have requested will help our local economy by making American manufacturers more competitive in the global marketplace.

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