Wearing apparel: U.S. rates of duty on garments imported as separate articles and as parts of sets, by TSUS Items--Continued

(Cents per pound; percent ad valorem)

:

: Women's, girls', and infants' ornamented apparel:

Blouses, shirts, and coats imported as separates----

: 35%

: 25.8%

: 16.5%

Blouses, shirts, and sweaters imported as separates---

383.28 :

Coats and slacks imported as separates----

:

Not knit:

:

:

U.S. rates of duty on garments imported as separate articles and as parts of sets, by TSUS items--Continued

Abridged description

:

: Women's, girls', and infants' not ornamented apparel--Continued

:

Of cotton--Continued

Not knit--Continued.

:

Pajamas:

383.39 :

Valued not over $1.50 per suit--------

383.40 :

Valued over $1.50 per suit

:

Vests imported as separates:

383.42
383.43 :

:

383.47 :

Blouses, shirts, and slacks imported as separates-

383.48 :

Dresses imported as separates

383.49 :

Martial arts uniforms--

383.50 :

:

The above garments imported as parts of sets and other garments imported as sets. 3/

Coats valued not over $5 per pound imported as separates---

Coats valued not over $5 per pound imported as parts of sets and other apparel imported as sets. 3/

383.62 :
383.63 :

Coats valued over $5 per pound imported as separates---

: 37.5¢ + 20%

: 34¢ + 20%

Coats valued over $5 per pound imported as parts of sets and other apparel imported as sets. 3/

: 37.5¢ + 20%

: 19¢ + 18.5%

: 31c +20% : 17%

: 54.5%.

: 54.5%.

Blouses, shirts, and sweaters imported as separates--

: 25¢ + 32.5%

: 19¢ +32.5%

Coats and slacks imported as separates---

25¢ + 32.52

: 12c 31.3%

: 13+ 32.5% : 30%

: 30%

: 17%

: 72%.

:

The above garments imported as parts of sets and other garments imported as sets. 3/

: 25¢ + 32.5%

: 14¢ + 25.9%

: 17% 4/

: 72%.

Blouses, coats, shirts, and slacks imported as separates-

25¢ + 27.5%

: 21c + 27.5%

:

The above garments imported as parts of sets and other garments imported as sets. 3/

: 25¢ + 27.5%

: 12c+22.3%

: 17c+ 27.5% : 17%

: 76%. : 76%.

:

:

:

:

17 Rate effective before Jan. 1, 1982.

2/ Rate effective on or after Jan. 1, 1987, except as noted.

3/ The other garments imported as sets primarily include pajamas, two-piece swimsuits, martial arts uniforms, playsuits, and infants' sets, unless provided for separately.

4/ Rate effective on or after Jan. 1, 1988. 5/ Rate effective on or after Jan. 1, 1989. Rate effective on or after Jan. 1, 1990.

Relating to the tariff classification of salted and dried plums, and for other

purposes.

Summary of the Provision

H.R. 4353, if enacted, would reduce the rates of duty aplicable to imports of dried plums after having been soaked in brine.

Section-by-Section Analysis

Section 1 of H.R. 4353, if enacted, would reduce the rates of duty applicable to imports of dried plums after having been soaked in brine, provided for in Tariff Schedules of the United States (TSUS) item 149.28. The reduction would be accomplished by deleting item 149.28 and adding two new tariff items, with new item 149.30 covering the above plums. In this new item, the currently applicable ad valorem rates of duty of 17.5 percent under column 1 and 35 percent under column 2 would be converted to specific rates of 2 cents per pound under both column 1 and column 2. The proposed specific rates of duty are the same as the rates currently in effect for imports of dried plums, prunes, and prunelles, provided for in TSUS item 149.26. If enacted, the proposed legislation would reduce the duty on dried plums having been soaked in brine to approximately 2.5 percent ad valorem (or by an estimated 15 percentage points). The proposed legislation would not change the current ad valorem rates of duty on the remaining "otherwise prepared or preserved" plums, prunes, and prunelles provided for in TSUS item 194.28. It would, however, change the existing product coverage of that residual or "basket" category. The intended purpose of the bill is to provide relief to domestic manufacturers of Chinese preserved plums, which are made from a variety of small plums not produced in the United States.

Section 2 makes this provision effective on or after the 15th day after the date of the enactment of this Act.

Background and Justification

These fruits may be briefly described as follows: a plum is an edible, fleshy fruit related to the cherry but having an oblong stone; a prune is a variety of plum suitable for drying (because it dries without spoiling); and a prunelle is a brownish variety of plum or prune (though the term may sometimes be used to refer to a sloe, a dark purple or blackish fruit). Salted and dried plums, prunes, or prunelles and Chinese preserved plums are specialty products in the oriental food trade that do not need to be packed in airtight containers to prevent spoilage. Salt is often applied to plums, prunes, and prunelles, both as a preservative and to impart a desired flavor. Articles known as Chinese preserved plums may be flavored with salt of various characteristics, sugar, licorice, or other ingredients. Other related oriental food specialties are spiced, pickled, brined, or canned plums, prunes, or prunelles. The largest industries in the United States which market prepared or preserved plums, prunes, or prunelles produce dried prunes from fresh prune plums, canned purple plums and other canned plums, and frozen plums and prunes.

H.R. 4353
Page Two

The domestic industry producing Chinese preserved plums is concentrated principally in Hawaii; it uses plums which have been grown elsewhere and shipped to that State. Industry sources indicate that the plum supplies are imported because the necessary small plums are not available from domestic (California) sources. The imported supplies are shipped dried from the supplying country after having been soaked in salt brine to prevent spoilage in transit. The imported plums are soaked in water by the domestic manufacturers, which both rehydrates the fruit and removes salt, before processing to add appropriate flavorings.

As far as is known, domestic production of Chinese preserved plums comes from two firms located in Hawaii and may amount to 200,000 pounds annually. The larger firm is Jade Food Products, Inc., of Honolulu. Employment in the industry is believed to be fewer than 50 persons. U.S. exports of Chinese preserved plums are believed

to be negligible or nil.

Apparent U.S. consumption of Chinese preserved plums and of dried salted plums, prunes, and prunelles is believed to equal U.S. imports from Hong Kong, Taiwan, and the People's Republic of China of dried plums, prunes, and prunelles plus those which are otherwise prepared or preserved and not in airtight containers. Estimated apparent apparent U.S. consumption is shown in the following tabulation for 1978-82 (in thousands of pounds):

The domestic industry producing dried prunes is located almost entirely in California. In 1982, U.S. production of dried prunes was 252 million pounds, valued at $86 million. U.S. exports in 1982 amounted to 30 million pounds, while apparent consumption of dried prunes (equivalent to production minus exports) amounted to about 220 million pounds. There is little, if any, substitution by consumers of Chinese preserved plums or dried salted plums, prunes, or prunelles from the Orient for dried prunes.

U.S. imports of prepared or preserved plums, prunes, and prunelles are predominantly from the Orient--specifically, from Hong Kong, Taiwan, the People's Republic of China, and Japan. During 1978-82, import levels ranged from a low of 1.8 million pounds in 1981 to a high of 2.8 million pounds in 1979 and 1980 with little discernible trend. Most of the annual fluctuations in import volumes were accounted for by erratic imports of dried prunes from non-Orient suppliers.

H.R. 4353

Page Three

U.S. imports of plums, prunes, and prunelles otherwise prepared or preserved and not in airtight containers (TSUSA item 149.2840) would be affected most by the legislation. Such imports increased from 603,000 pounds, valued at $607,000, in 1978, to 1.0 million pounds, valued at $1.7 million in 1982, or by 72 percent by quantity. During January to November 1983, imports amounted to 1.1 million pounds and were at a level 11 percent higher than the total for January to November 1982. In 1982, the average unit value of imports entered from all sources was $1.59 per pound. At the current rate of duty of 17.5 percent ad valorem, the calculated amount of duty per pound was about 28 cents at that average unit value.

In 1982, imports of dried plums, prunes, and prunelles from the Orient amounted to 208,000 pounds, valued at $304,000, with an average unit value of $1.46 per pound. The current rate of duty on such imports is 2 cents per pounds.

Of the 1982 imports of plums, prunes, and prunelles that were dried (TSUS item 149.26) or were not in airtight containers (TSUSA item 149.2840), 95 percent were entered at the U.S. Customs Districts of Los Angeles, San Francisco, Honolulu, and New York City, in approximately equal proportions (although Los Angeles was the leading district).

Comparison with Present Law

In the TSUS, prepared or preserved plums, prunes, or prunelles are classified in one of three duty rate provisions based on whether they are in bine, dried, or otherwise prepared or preserved. The current column 1 and 2 rates of duty, and the reporting numbers for statistical purposes covering prepared or preserved plums, prunes, and prunelles are as follows:

1/ Items 149.18 and 149.21 cover fresh plums, prunes, or prunelles.

The current column 1 rates of duty for these articles were not reduced as a result of the Tokyo round of Multilateral Trade Negotiations under the General Agreement