H.R. 3741 Introduced by: Mr. Albosta (MI) Date: August 2, 1983 To suspend for a three year period the duty on 5H-Dibenz [b,f]azepine-5-propanamine, 10,11-dihydro-N-methyl-,monohydrochloride, commonly called desipramine hydrochloride. Summary of the Provision H.R. 3741, if enacted, would suspend the duty until the close of September 30, 1987 on desipramine hydrochloride otherwise known as 5H-Dibenz (b,f] azepine-5-propanamine, 10,1ldihydro-N-methyl, monohydrochloride. Section-by-Section Analysis Section 1 of H. R. 3741, 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 a new item 906.54 to suspend the column 1, MFN, duty until the close of September 30, 1987 on desipramine hydrochloride provided for in item 412.30, part 1c, schedule 4. Section 2 makes the provision effective on or after the 15th day after the date of the enactment of this Act. Background and Justification Desipramine hydrochloride is an active ingredient used in the manufacture of the ethical pharmaceutical product (prescription drug) sold under the trademark Norpramin. The product is an antidepressant. It is believed that desipramine hydrochloride is not manufactured in the United States although there may be other resultant competitive drugs which are manufactured in the U.S. It is also sold in the U.S. by USV Pharmaceutical, under the trademark Petrofrane. The Petrofrane active ingredient is imported from outside the U.S.A. Comparison with Present Law Desipramine hydrochloride is classifiable under TSUS item 412.30. The current column 1 rate of duty is 9.6 percent ad valorem. The column 2 rate of duty is 7 cents per pound plus 45.5% ad valorem. H.R. 3741 Page Two This item is eligible for staged rate reductions under the Tokyo round of the MTN and the column 1, MFN, rate of duty will be reduced to 6.6% in 1987. The LDDC rate of duty is 6.6% ad valorem. Effect on Revenue It is estimated that the future loss of revenue as a result of enactment of this legislation would be less than $100,000 in 1983, declining in ensuing years as a result of staged rate reductions unless import levels increase. Subcommittee Action Agency Reports The Department of Commerce has no objection to enactment of H.R. 3741. The International Trade Commission submitted an informative report. Markup On June 27, 1984, the Subcommittee on Trade ordered H.R. 3741 favorably reported to the full Committee on Ways and Means by voice vote, with minor technical amendments, including changing the article description to "desipramine hydrochloride", the accepted chemical name for this product. Senate Action A companion bill (S. 2055) was introduced by Senator Symms. SUMMARY OF TESTIMONY ON H.R. 3741 Administration Department of Commerce: No objection to enactment of H.R. 3741. H.R. 3742 Introduced by: Mr. Albosta (MI) Date: August 2, 1983 To suspend for a three year period the duty on hydrazone, 3-(4-methylpiperazinyliminomethyl) rifamycin Sv. Summary of the Provision H.R. 3742, if enacted, would suspend the duty on rifampin until the close of September 30, 1987. Section-by-Section Analysis Section 1 of H.R. 3742, 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 a new item 906.99 to suspend the column 1, MFN, duty until the close of September 30, 1987 on rifampin, otherwise known as hydrazone, 3-(4-methylpiperazinyliminomethyl) refamycin SV, provided for in item 437.32, part 3B, schedule 4. Section 2 makes the provision effective on or after the 15th day after the date of the enactment of this Act. Background and Justification Hydrazone, 3-(4-methylpiperazinyliminomethyl) rifamycin SV commonly called rifampin is an active ingredient used in the manufacture of the ethical pharmaceutical product (prescription drug) sold under the trademarks Rifadin and Rifamate. The product is an antibiotic. The chemical name for rifampin is hydrazone, 3-(4-methylpiperazinyliminomethyl) rifamycin Sv. Comparison With Present Law Rifampin is classifiable under TSUS item 412.02 as a drug provided for in the Chemical Appendix to the TSUS. The current column 1 rate of duty is 4.4 percent ad valorem. The column 2 rate of duty is 25.0% ad valorem. This item is eligible for staged rate reductions under the Tokyo round of the MTN and the column 1, MFN, rate of duty will be reduced to 3.7% in 1987. Imports from designated beneficiary developing countries under TSUS item number 412.02 are eligible for duty-free treatment under the Generalized System of Preferences (GSP). The LDDC rate of duty is 3.7% ad valorem. H.R. 3742 Effect on Revenue It is estimated that the future loss of revenue as a result of enactment of this legislation would be less than $200,000 in 1983, declining in ensuing years as a result of staged rate reductions unless import levels increase. Subcommittee Action Agency Reports The Department of Commerce has no objection to enactment of H.R. 3742. The International Trade Commission submitted a informative report. Markup On June 27, 1984, the Subcommittee on Trade ordered H.R. 3742 favorably reported to the full Committee on Ways and Means by voice vote, with minor technical amendments, including changing the article description to "rifampin", the accepted chemical name for this product. Senate Action A companion bill (S. 2054) was introduced by Senator Symms. Administration Department of Commerce: No objection to enactment. H.R. 3983 Introduced by: Mr. Heftel Date: September 26, 1983 Regarding the operation of certain duty-free sales enterprises. Summary of the Provision H.R. 3983, if enacted, would permit State and local government authorities having jurisdiction over airports or other exit points to require that operators of duty-free sales enterprises in such locations obtain concessions or approval before beginning business. Section-by-Section Analysis H.R. 3983, if enacted, would amend section 555 of the Tariff Act of 1930--a provision dealing with customs bonded warehouses-to permit State and local government authorities having jurisdiction over airports or other exit points to require that operators of duty-free sales enterprises in such locations obtain concessions or approval before beginning business. Moreover, the legislation would prohibit transfers of merchandise covered by customs bonds to such facilities unless operators who are required to obtain concessions produce evidence of compliance to the Secretary of the Treasury. Finally, the legislation sets forth a definition of the term "duty-free sales enterprise." The legislation would expressly protect the right of State and local governments to collect revenues through the use of licenses for such stores, and provide a means for assuring that other requirements of these government entities are met. The legislation would have no effect on duty-free shops in locations where concessions are not demanded. Background and Justification H.R. 3983, would expressly protect the right of State and local governments to collect revenues through the use of licenses for such stores, and provide a means for assuring that other requirements of these governments entities are met. "Duty-free stores," as operated in the United States, are bonded warehouses covered by special Customs procedures wherein merchandise is offered for sale, to travellers leaving the customs territory, without payment of U.S. duties and taxes. Such stores are not specifically provided for in statutes or regulations; their administration has been accomplished by means of Customs' internal directives and circulars. |