Imágenes de páginas

H.R. 4382
Page Two

LDDC rate is 11.6% ad valorem. The column 2 rate, applicable to this item is 7 per pound plus 128.5% ad valorem. This item is eligible for staged rate reductions under the Tokyo round of the MTN and the column 1, MFN, rate will be gradually reduced to 11.6% by 1987.

Item 411.27 was created for purposes of the GSP effective on or after March 31, 1983; former item 411.28 was subdivided to create items 411.26 and 411.27, in order to afford benefits of the GSP to sulfamerazine classified in item 411.26. However, imports of sulfaguanidine are not eligible for duty-free entry under the GSP. Effect on Revenue

Based on information obtained from industry sources, it is estimated that customs revenue losses during the specified 3-year period, from 1984 through 1986, would be less than $50,000 per year. Subcommittee Action

Agency Reports

The Department of Commerce has no objection to enactment of H.R. 4382.

The International Trade Commission submitted an informative



On June 27, 1984, the Subcommittee on Trade ordered H. R. 4382 favorably reported to the full Committee on Ways and Means by voice vote, with a technical amendment providing for the effective date to be 15 days after the date of enactment.

Senate Action

A companion bill, S. 1483, has been introduced in the Senate.

[blocks in formation]

The Honorable Cooper Evans, M.C. (Iowa): Sulfa drugs are used primarily by the livestock and poultry industry directly in the treatment of animal infection or indirectly in the production of other drugs which treat infection.

Salsbury Laboratories, Inc.: Sulfa drugs are of prime importance to the livestock and poultry industries and there is virtually no domestic production of these essential veterinary health products. Also, due to environmental problems and costs associated with their manufacture, future domestic production is quite unlikely.

[blocks in formation]

To continue until the close of June 30, 1989, the existing suspension of duties on certain forms of zinc.

Summary of the Provision

H.R. 4443, if enacted, would extend the suspension of zinc-bearing ores, zinc dross and zinc skimmings, zinc-bearing materials and zinc waste and scrap until the close of June 30, 1989.

Section-by-Section Analysis

H.R. 4443, if enacted, would extend from June 30, 1984, to June 30, 1989, the existing temporary suspension of the column 1 rates of duty on certain forms of zinc afforded under the Tariff Schedules of the United States (TSUS) Appendix items 911.00, 911.01, 911.02, and 911.03. These four items, which were added to the TSUS in 1975, suspend the column 1 rate of duty on-

(a) zinc-bearing ores (provided for in item 602.20, part 1, schedule 6; duty suspended under item 911.00);

(b) zinc dross and zinc skimmings (provided for in item 603.30, part 1, schedule 6; duty suspended under item 911.01);


zinc-bearing materials (provided for in items 603.49, 603.50, 603.54,
and 603.55, part 1, schedule 6; duty suspended under item 911.02);

(d) zinc waste and scrap (provided for in item 626.10, part 2, schedule 6; duty suspended under item 911.03).

The duty on these items was originally suspended in 1975 for a 3-year period, since U.S. mines did not have sufficient capacity to satisfy demand; it was also recognized that other major zincproducing countries permit the importation of ores and concentrates free of duty. This temporary duty suspension expired on June 30, 1978. Public Law 96-467, effective October 17, 1980, retroactively restored the temporary duty suspension, which continues until June 30, 1984. This legislation would continue to permit the importation free of duty the subject forms of zince entered, or withdrawn from warehouse for consumption, after June 30, 1984, and until June 30, 1989.

Section 2 would provide that the continued temporary duty suspension will apply to articles entered or withdrawn from warehouse on or after the 15th day after the date of the enactment of this Act. Provision is also made for the retroactive application of this legislation to June 30, 1984 under prescribed procedures.

H.R. 4443
Page Two

Background and Justification

Most of the zinc ore in the world is found in the mineral sphalerite, a zinc sulfide, which usually occurs in association with lead and copper sulfide materials. Zinc ore is milled to prepare zinc-bearing materials known as concentrates that can be treated to recover zinc and associated by-product and co-product metals. The mineralogy of zinc-containing ores determines the technology and economics of the milling practice employed. Generally, the ore is roasted to remove the sulfur and then may be concentrated by flotation, jigging, tabling, and electrostatic and magnetic separation. Reduction of the concentrates to zinc is accomplished by electrolytic deposition from a sulfate solution or by distillation in retorts or furnaces. Another form of zinc-bearing materials is zinc fume, residue material from furnace slag which has been removed as an impure oxide by a fuming operation. Zinc dross and skimmings are zinc- or zinc-oxide-containing products formed during the galvanizing process. Zinc waste and scrap is refuse material recovered primarily from the zinc smelting operation. These products are used as sources of zinc metal and zinc products.

According to the U.S Bureau of Mines, U.S. mines tend to have lower ore and co-product and/or by-product grades than many foreign mines. The average U.S. zinc ore grade is about 4 percent, compared with 6 to 9 percent average grades in many other countries.

Zinc is a strategic and critical metal which is primarily used to protect and preserve iron and steel products from corrosion (galvanizing). Other major uses of zinc include its use in die-cast alloys, brass and bronze products and rolled zinc. The use of zinc in galvanizing accounts for 48 percent of total consumption, in zinc-based alloys for 28 percent, in brass and bronze for 11 percent, and in other products (such as rolled zinc, oxides and pigments) for 13 percent.

Zinc ore is recovered from at least 30 mines located in 17 states in the United States. Tennessee accounts for 40 percent of domestic zinc production; Missouri for 21 percent; New York for 16 percent; and Pennsylvania for 8 percent. The industry producing zinc is heavily concentrated, with 4 firms--St. Joe Resources Co., Jersey Miniere Zinc Co., AMAX Inc., and ASARCO Inc.--accounting for about 50 percent of domestic mine output in 1982, and 80 percent of primary slab zinc production. The four companies are large, vertically integrated firms which operate mines, smelters, and refineries. The New Jersey Zinc Co., Inc., United States Steel Corp., Cominco American Inc., Ozark Lead Co., and Hecla Mining Co. were other major mine producers, accounting for an additional 40 percent of domestic mine output.

ASARCO is the only domestic company with a significant commercial interest in foreign zinc mining operations; these interests are primarily in Australia, Mexico, and Canada. Newmont Mining Co., St. Joe Resources Co., Phelps Dodge Corp., and AMAX Inc., however, are also involved in foreign zinc operations. In 1982, foreign ownership of operating U.S. zinc mines was essentially limited to the 50 percent interest of Cominco in the Magmont Mine in Missouri, and the 40 percent interest of Union Miniere S.A. of Belgium in the mines and refinery of Jersey Miniere Co. in Tennessee.

[merged small][merged small][merged small][merged small][merged small][ocr errors]

H.R. 4443
Page Three


The United States was the principal world mine producer of zinc until the middle 1960's when Canada became the leading producer. In the 1970's, mine output declined in the United States but increased in other countries; in 1982, the United States was fifth in world production, surpassed by Canada, USSR, Australia, and Peru. In 1981 and 1982, a number of U.S. zinc mines closed because of poor zinc demand and low prices, while 2 new mines opened and output increased at several other mines.

Much of the recent decline in production is attributable to low ore grades, low by-product value, high production costs, and exhaustion of ore reserves. According to the U.S. Bureau of Mines, the United States has been dependent upon imports of concentrates for a substantial portion of smelter feed since 1940.

Employment at zinc and lead mines and concentrating plants (data for which are inseparable because of the co-product relationship) has declined from 4,600 in 1979 to 2,900 in 1983.

Domestic production of zinc ore, by zinc content and value (according to the U.S. Bureau of Mines), has been as follows:

[blocks in formation]

Imports of the subject forms of zinc were as follows during 1979-83:

[blocks in formation]

Imports of zinc ore accounted for about 85 percent of total imports of these products in 1983. The principal import sources in 1983 were Canada (31 percent), Mexico (30 percent), Peru (17 percent), and Honduras (16 percent); there were no imports subject to column 2 rates. The importers included metals traders and domestic slab zinc producers, such as Phillip Brothers, New York; Noranda Sales, New York; and National Zinc Co., Oklahoma.

« AnteriorContinuar »