H.R. 4443
Page Four

Exports of the subject forms of zinc (Schedule B numbers 601.6100, 603.0030, and 626.1000) were as follows during 1979-83:

Year

1979

1980

1981

1979-83:

1982

1983

Year

Quantity
(short tons)

64,153

112,228

110,301

117,631

97,469

Agency Reports

The

Exports of zinc ore accounted for about 72 percent of total exports. principal export markets were Canada, West Germany, and Belgium. The principal exporters were metals traders and domestic producers.

Apparent consumption of the subject forms of zinc was as follows during

Quantity
(short tons)

335,523

446,677

519,914

297,745

286,023

Value
(1,000 dollars)

25,926
52,850

62,659

57,842

38,257

Value
(1,000 dollars)

1979
1980

1981

1982

1983

Comparison with Present Law

The current tariff treatment of the subject products is set forth in the table on the following page.

Effect on Revenue

Based on the range of import levels during 1979-83 of the subject forms of zinc and the rates of duty applicable if no suspension had been in effect, it is estimated that enactment of this legislation would result in a loss of customs revenues of approximately $763,000 to $2.5 million annually. The loss in revenues would decline through 1987 to about $517,000 to $1.8 million annually, as staged reductions in the duty rates on these forms of zinc (negotiated in the Multilateral Trade Negotiations) become effective.

Subcommittee Action

233,837
285,954

361,203

228,318

233,442

The Department of Commerce had no objection to enactment of H.R. 4443.
The International Trade Commission submitted an informative report.

603.54A: Materials over 5 troy ounces

gold or 100 troy ounces precious metal when copper is below 244/1b.

:

:

:

Table 1: Certain forms of zine:

:

:

:

: Zinc waste and scrap-----------},754

U.S. rates of duty, by TSUS items

:
.64 + : .5€ + 1:
.474 +:
.56% + :
.424
.54
:
8

8

:

: 3.7%

1

8

:
.384 +
.364 +:
.354
.654 + :
.446 +:
.434 :

:

8

: 2.9% : 2.5%

1

3

.324 + : 46 + 1.56 +
.30€ +: 1.674.
.304 :
: 46 + 1.56 +
.604 +
1.674.
.40€ +:
.40€ :

8

:

: 2.1%

:

TABLE I

H.R. 4443
Page Five

Markup

On June 27, 1984, the Subcommittee on Trade ordered H.R. 4443 favorably reported to the full Committee on Ways and Means by voice vote, without amendment. SUMMARY OF TESTIMONY ON H.R. 4443

Administration

Department of Commerce: No objection to enactment of H.R. 4443.

Statements for the Record

Supports

Lead-Zinc Producers Committee: The bill would assure domestic zinc smelters and refiners continued access to raw materials on a basis competitive with that available to foreign producers.

National Association of Recycling Industries, Inc.: Duty-free importation of recyclable zinc over a long period of years plainly has not adversely affected any U.S. interests--it has operated to maintain competitive equality among virgin and secondary producers of zinc products.

Opposes

Independent Zinc Alloyers Association:

The alloyers conduct trade in a worldwide market and find no reason for a further exte sion of duty on ores. The duty treatment of slab zinc is costly to the American public and does nothing to protect the U.S. zinc producing industry.

H.R. 4513

Introduced by: Mr. Green (NY)
Date: November 18, 1983

To extend for four years the temporary suspension of duty on tartaric acid and certain tartaric chemicals.

Summary of the Provision

H.R. 4513, if enacted, would extend the temporary suspension of duty on tartaric acid and certain tartaric chemicals until June 30, 1988.

Section-by-Section Analysis

H.R. 4513 would amend items 907.65 (tartaric acid), 907.66 (potassium salts), 907.68 (cream of tartar), and 907.69 (sodium tartrate (Rochelle salts)) of the Appendix to the Tariff Schedules of the United States (TSUS) by striking from the Effective Period column the date "6/30/84" and inserting in lieu thereof "6/30/88". This would extend the temporary suspension of column 1 duties for those four items for four additional years, or until June 30, 1988. There would be no change in the column 2 rates of duty.

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.

Background and Justification

Tartaric acid is a colorless, transparent, crystalline solid or a white crystalline powder and is classified chemically as a disubstituted, dicarboxylic acid. It is produced from argols or wine lees by treatment with milk of lime (calcium hydroxide), followed by precipitation of calcium sulfate, and crystallization of the acid. Tartaric acid can also be produced synthetically by the hydroxylation of maleic anhydride.

Tartaric acid is used as an intermediate in the production of chemicals such as acetaldehyde, and various tartaric acid salts and esters. It is also used as a suquestrant in tanning, effervescent beverages, baking powder, flavors, ceramics, galvanoplastics, medicinal preparations, photographic printing and developing, textile processing, silvering glass mirrors, coloring metals and foods.

H.R. 4513
Page Two

Tartar emetic (also referred to as potassium antimony tartrate) is an odorless, poisonous, transparent, crystalline solid which effloresces when exposed to air. It is produced from potassium bitartrate by reaction with antimony metal or antimony trioxide, and is used as a textile and leather mordant, a medicine, a perfumery component, and an insecticide.

Cream of tartar (containing over 90 percent potassium bitartrate by weight) is a white, crystalline powder with a pleasant acid taste. It is classified chemically as an organic acid salt. It is produced by hot water extraction from wine lees followed by crystallization. Cream of tartar is used in baking powder, the production of other tartrates, medicine, galvanizing metals, and foods.

Tartaric acid accounts for the major portion of imports of these tartaric chemicals. Imports of this product rose from 3.4 million pounds valued at $3.4 million in 1979, to 3.9 million pounds valued at $4.7 million in 1981, then declined to 3.6 million pounds valued at $2.4 million in 1983.

U.S. imports of cream of tartar fluctuated during 1979-83 from a low of 2.0 million pounds valued at $1.5 million in 1980, to a peak of 2.4 million pounds valued at $1.8 million in 1981.

The import quantity for all of these tartaric chemicals decreased from 6.9 million pounds valued at $6.7 millon in 1979, to 6.7 million pounds, valued at $4.0 million in 1983.

The major sources of imports of tartaric acid in 1983 were Spain, Italy and Argentine, which together accounted for almost 98 percent, by quantity, of such imports. Tartar emetic was supplied solely by Italy. Cream of tartar came from Italy, Spain, France, West Germany, Canada and the United Kingdom. The largest quantity of these chemicals came from Italy and Spain. No imports were supplied by column 2 sources.

The only chemicals produced in the United States from tartaric chemicals are Rochelle salt and potassium bitartrate. Data on exports of Rochelle salt and potassium bitartrate are not available, but because of U.S. demand for tartaric chemicals, exports are probably negligible.

Imports of tartaric acid approximate consumption and amounted to 3.4 million pounds in 1979. Imports of tartaric acid peaked at 3.9 million pounds in 1981, then declined slightly to a level of 3.6 million pounds in 1982 and 1983. Apparent consumption of tartaric acid salts fell in 1980 to approximately 2.8 million pounds, then increased to 3.5 milllion pounds in 1981. During 1982-1983, apparent consumption remained level at about 3.2 million pounds.