H.R. 5751 and because Cosmic Plastics Inc. began supplying a substantial portion of the DIAP market with domestially produced material beginning in 1984. Subcommittee Action Agency Reports The Department of Commerce has no objection to enactment of H.R. 5751. The International Trade Commission submitted an informative report. Markup On June 27, 1984, the Subcommittee on Trade ordered H.R. 5751 favorably reported to the full Committee on Ways and Means by voice vote, without amendment. Senate Action A companion bill (S. 2739) was introduced by Senator Dodd. Administration 5751. Department of Commerce: No objection to enactment of H.R. Public Witnesses Oral Testimony Supports The Honorable Sam Gejdenson, M.C. (Conn.): Suspension of duty on uncompounded allyl resins would not affect any domestic producers and ultimately save the taxpayers money. To suspend for a 3-year the duty on certain metal umbrella frames. Summary of the Provision H.R. 5783, if enacted, would suspend until September 30, 1985, the duty on frames for hand-held umbrellas chiefly used for protection against rain. Section-by-Section Analysis Section 1 of H.R. 5783, if enacted, would amend subpart B of part 1 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) by inserting in numerical sequence a new item 912.45 to suspend until September 30, 1985 the duty on frames for hand-held umbrellas chiefly used for protection against rain, provided for in item 751.20, part 8B, schedule 7. Section 2 makes the provision effective on or after the 15th day after the date of enactment of this Act. Background and Justification Umbrella frames and skeletons of metal are presently classified under TSUSA item 751.2020. This item is eligible for GSP treatment, except for Taiwan which was excluded effective April 1, 1984. Umbrella frames and skeletons are made principally from metal and consist of a radiating frame which collapes around a central supporting shaft. Additional material, usually of some fabric, paper or plastic is attached to the frame to form a completed umbrella which is chiefly used as a device for protection against the weather. U.S. imports of frames fo metal for hand-held umbrellas are estimated by the U.S. Customs Service to comprise approximately 97 percent of the imports under TSUSA item 751.2020. Imports of frames for hand-held rain umbrellas increased erractically, both in terms of quantity and value for the period 1979-83. terms of quantity, imports increased from approximately 620,000 units to over 1 million units, while in value, imports increased from an estimated $428,000 to $1.9 million (table 2). There are not believed to be any exports of frames for hand-held umbrellas of metal. In H.R. 5783 Apparent U.S. comsumption of frames for hand-held umbrellas of metal increased, form 620,000 units to over 1 million units in terms of quantity, and from $428,000 to nearly $1.9 million in value (table 2). The ratio of imports to consumption was approximately 100 percent for all years considered, both in terms of quantity and value. Comparison with Present Law Umbrella frames and skeletons of metal are classified in TSUS item 751.20. The table below shows the column 1 rate of duty in effect prior to the Tokyo round of Multilateral Trade Negotiations, the staged reductions in the column 1 rate, and the column 2 rate of duty applicable to the subject frames. Imports from least developed developing countries (LDDC's) are dutiable at 12 percent ad valorem, the final stage of the duty reductions which will become effective on an MFN basis on January 1, 1985. Imports from designated beneficiary developing countries under this tariff item are eligible for duty-free entry under the Generalized System of Preferences (GSP), except for those from Taiwan (which was excluded effective April 1, 1984, due to the so-called competitive need limitations). In addition, imports from designated beneficiary developing countries are eligible for duty-free entry under the Caribbean Basin Initiative (CBI). Umbrella frames and skeltons of metal: U.S. rates of duty H.R. 5783 Effect of Revenue Based on estimated 1983 imports of $1.9 million, a decrease in the rate of duty from 15 percent ad valorem to free would result in an annual loss to U.S. Custom's revenues of approximately $285,000. Subcommittee Action Agency Reports The Department of Commerce has no objection to enactment of H.R. 5783, provided the suspension is for a one-year period. The International Trade Commission submitted an informative report. Markup On June 27, 1984, the Subcommittee on Trade ordered H.R. 5783 favorably reported to the full Committee on Ways and Means by voice vote, with an amendment reducing the effective period of the new provision from three years to one year and providing a date certain for its termination. SUMMARY OF TESTIMONY ON H.R. 5783 Administration Department of Commerce: No objection to enactment of H.R. 5783 provided suspension is for a one-year period. Public Witnesses Oral Testimony Supports The Honorable Marcy Kaptur, M.C. (Ohio): There are no domestic manufacturers of hand-held rain umbrella frames. The duty on such frames only hurts the hardpressed domestic rain umbrella manufacturers. Supports Statements for the Record Almet/Lawnlite; California Umbrella; Finkel Outdoor Products Co.; Keller Industries: These companies do not object to dutyfree treatment of metal frames for hand-held rain umbrellas. PART B H.R. 2776 Introduced by: Mr. Ratchford (CN) Date: April 27, 1983 Relating to the tariff treatment of gut imported for use in the manufacture of surgical sutures. Summary of the Provision H.R. 2776, if enacted, would create two new items in the Tariff Schedules of the United States (TSUS) which would apply to gut imported for use in the manufacture of surgical sutures and an "other" category, respectively. Section-by-Section Analysis Section 1 of H.R. 2776, if enacted, would amend subpart C of part 13 of schedule 7 of the Tariff Schedules of the United States (19 U.S.C. 1202) by new separate items, , 24 and 792.26, which would apply to gut imported for use ir manufacture of surgical sutures and an "other" category, ectively. The column 1 MFN duty rate will be 6% ad valorem : 1 .1.2% ad valorem, respectively, with the 6% rate being equiva to the rate for other surgical sutures provided for und cem 495.10 of the TSUS. The provision is intended to inc' ! both raw gut in uncut lengths suitable for use in surgical sutures and nonsterile and unfinished gut sutures. riking out item 792.22 and creating two Section 1(b) (1) would apply those staged rate reductions to item 792.24 which are applicable to item 495.10 as provided for under the Tokyo round of negotiations and would result in a duty rate of 3.5% effective January 1, 1987. Section 1(b) (2) would provide for the deletion of the LDDC rate when the column 1 rate is reduced to a point at or below the rate of duty in the LDDC column. Section 1 (c) would provide for staged rate reductions for new item 792.26 as previously provided for under existing item 792.22. Section 2 provides that the effective date of the provision would be on or after the 15th day after the date of the enactment of this Act. Background and Justification The products covered by the proposed legislation consist of the raw material for sterile gut sutures and unfinished nonsterile sutures made from catgut. Catgut is a thin, tough, cord- or threadlike material made by twisting, drying, and processing one or more |