Goodling, Hon. William F., a Representative in Congress from the State of Page Icelandic Fashions Corp., J. Philip Kochenderfer_ Jager, Elizabeth, American Federation of Labor and Congress of Industrial 93 204 135 96 ་ Kay, Jack R., U.S.-Mexico Chamber of Commerce. Kochenderfer, J. Philip, Icelandic Fashions Corp. Levin, Peter R., Electronics Industries Association. Ludy, Albert, U.S.-Mexico Chamber of Commerce.. McNeill, Robert L., Emergency Committee for American Trade.. O'Brien, Gerald H., American Importers Association... Packard, David, Western Electronic Manufacturers Asociation_ 237 204 171 Levine, Irving, Computer and Business Equipment Manufacturers Association. McCloskey, Peter F., Computer and Business Equipment Manufacturers 190 237 190 63 211 51 28 200 Samuel, Howard D., Amalgamated Clothing Workers of America__ Foreign Trade Association of Southern California.. Skornia, Thomas A., Western Electronic Manufacturers Association_ 193 34 28 223 69 28 69 135 206 · U.S.-Mexico Chamber of Commerce, Jack R. Kay, Albert Ludy and Dick Bolin__ 237 . Western Electronic Manufacturers Association, David Packard, W. J. Sanders III, George M. Scalise, and Thomas A. Skornia___ 28 MATERIAL SUBMITTED FOR THE RECORD Adams, Milton B., Laredo (Tex.) Development Foundation, statement--• Aerospace Industries Association of America, Inc., Karl G. Harr, Jr., statement.. Allen, Raymond R., Certron Corp., letter.. American Chamber of Commerce of Costa Rica, David A. Metzler, letter. Birmingham (Ala.) Labor Council, AFL-CIO, Thermon Coggins and Brownsville, Tex., City Commission, Ruben Edelstein and Mary Roussett, Bucy, J. Fred, Texas Instruments, Inc., letter and statement_ __ 363 339 347 343 345 341 343 344 367 345 347 Chamber of Commerce of the United States, Hilton Davis, letter.. General Electric Co., Television Business Department, statement-- 353 Hall, Paul, Maritime Trades Department, AFL-CIO, letter- Hill, R. Lee, IMEC Corp., letter forwarded by Congressman Bob Wilson_ Laredo (Tex.) Development Foundation, Milton B. Adams, statement. - Metzler, David A., American Chamber of Commerce of Costa Rica, letter Norris, Robert M., National Foreign Trade Council, Inc., letter__ Page 364 339 362 362 343 350 363 364 371 343 365 349 365 348 366 Roussett, Mary, City Commission of Brownsville, Tex., resolution....... 344 367 371 White, Hon. Richard C., a Representative in Congress from the State of 372 Wilcox, Daniel S., Association of American Chambers of Commerce in 341 Departmental reports on H.R. 11420, H.R. 11423, and H.R. 11577----- 223 SPECIAL DUTY TREATMENT OR REPEAL OF ARTICLES ASSEMBLED OR FABRICATED ABROAD WEDNESDAY, MARCH 24, 1975 U.S. HOUSE OF REPRESENTATIVES, The subcommittee met at 10 a.m., pursuant to notice, in the committee hearing room, Longworth House Office Building, Hon. William J. Green (chairman of the subcommittee) presiding. Mr. GREEN. The committee will please be in order. Without objection a copy of the press release announcing this hearing will be placed in the record following this statement. This morning I want to welcome the administration and the public who have come here to present their views on items 806.30 and 807.00 of the Tariff Schedules of the United States which provide for special duty treatment of articles assembled or fabricated abroad, and on the various bills pending before this subcommittee to amend or repeal these provisions. This hearing is second in a series of Trade Subcommittee hearings on the general subject of customs administration and valuation of imports. Other customs matters that the subcommittee expects to deal with in the future include: H.R. 9220, the Customs Modernization Act; section 592, the penalty provision of the Tariff Act of 1930; and developments respecting foreign trade statistics in light of the requirements of section 608 of the Trade Act of 1974. I would like to point out that items 806.30 and 807.00 were originally intended to encourage domestic production and benefit American workers. However, there has been growing concern that they have had the opposite effect of encouraging production abroad at the expense of American jobs. It is significant that total imports under these two items have increased fivefold since 1966. This is not the first time that the Committee on Ways and Means has addressed the TSUS provisions dealing with articles assembled or fabricated abroad. Although bills introduced by Congressman Mills and myself in October 1969 were not acted upon, the committee did consider the issue in connection with H.R. 18970, the Trade Act of 1970. In view of the Tariff Commission study of the two provisions underway at that time, the committee determined not to propose any changes in the existing provisions until the results of the study became available. At the same time, the committee urged that the executive branch promptly review the Tariff Commission report and submit to the Congress such recommendation as may be needed (1) to assure that the use of these provisions will not endanger the overall job opportunities of U.S. workers, or encourage working conditions abroad inconsistent with the improvement of labor standards in the United States and in other countries. Despite our view, no such recommendation or request for legislation on items 806.30 and 807.00 was made by the President after completion of the Tariff Commission report. With regard to our procedure here this morning, we will begin with administration witnesses, followed by representatives from the interested public. Witnesses must summarize their statements with the understanding that their full statements will be included in the printed record. Our leadoff witness will be Treasury Assistant Secretary David Macdonald, who will review the customs administration of these provisions and present the administration's policy position on the pending bills. He will be followed by Labor Under Secretary Joel Segall and Deputy Assistant Secretary of Commerce Stanley Katz who will provide further information and views on these provisions. I understand that other administration experts will serve as a panel to receive questions from the subcommittee. Before proceeding, on behalf of the subcommittee I want to express our appreciation to the U.S. International Trade Commission people who on very short notice provided us with updated statistics and background materials on items 806.30 and 807.00. Also, I understand that Allen Garland, chairman of the Trade Policy Staff Committee at STR, who is with us today, plans to retire soon from a long and distinguished career in Federal service. I want to take this opportunity to extend special thanks to Al whom over the years as both a Commerce Department and STR official has given invaluable counsel to the committee. We wish him well. [The press release referred to follows:] [Press release of Thursday, February 26, 1976] CHAIRMAN WILLIAM J. GREEN (D., Pa.), SUBCOMMITTEE ON TRADE, COMMITTEE ON WAYS AND MEANS, U.S. HOUSE OF REPRESENTATIVES, ANNOUNCES 2 DAYS OF HEARINGS BEGINNING ON WEDNESDAY, MARCH 24, 1976, AND CONTINUING ON THURSDAY, MARCH 25, ON ITEMS 806.30 AND 807.00 OF THE TARIFF SCHEDULES OF THE UNITED STATES (PROVISIONS FOR SPECIAL DUTY TREATMENT OF ARTICLES ASSEMBLED OR FABRICATED ABROAD) AND BILLS TO AMEND OR REPEAL SUCH PROVISIONS The Honorable William J. Green (D., Pa.), Chairman of the Subcommittee on Trade of the Committee on Ways and Means, U.S. House of Representatives, today announced that the Subcommittee on Trade is continuing its series of hearings on the general subject of customs administration and valuation of imports. Chairman Green indicated that the second hearing will be on Wednesday, March 24 and Thursday, March 25 beginning at 10 a.m. in the Main Committee hearing room in the Longworth House Office Building, on the customs administration of items 806.30 and 807.00 of the Tariff Schedules (provisions for the special duty treatment of articles assembled or fabricated abroad) and on bills pending before the Subcommittee on Trade to amend or repeal such provisions. (See list below of such bills pending before the Subcommittee as of February 24, 1976.) Chairman Green indicated that Assistant Secretary of the Treasury David R. Macdonald will be the first witness followed by representatives from the other interested Executive branch agencies. Testimony will be received by the |