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H.R. 2947

To suspend for a 3-year period the duty on carfentanil citrate.

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College of Veterinary Medicine DEPARTMENT OF Box J*. JHMHC

SPECIAL CLINICAL SCIENCES Giinej.ille. Florid! 32610

(904) 392-2792

THE UNIVERSITY OF FLORIDA

December 2, 1987

Honorable Sam Gibbons
Committee on Mays and Means
Subcommittee on Trade
U.S. House of Representatives
Washington, DC 20515

RE: H.R. 2947; Suspension of duty on carfentanil citrate for 3
year period

Dear Mr. Gibbons:

I am a veterinarian specializing in zoo and wildlife medicine at the College of Veterinary Medicine, University of Florida, Gainesville, Florida. I also have extensive experience in evaluation of pharmaceuticals for the restraint and handling of wild and exotic species.

Carfentanil citrate is a highly specialized drug produced by a company in Belgium and must be imported into the United States. Carfentanil use is entirely within the exotic animal segment of veterinary medicine and has no use in domestic animals. This drug has enabled large exotic species, such as elephants, to be handled with greater safety to the handlers and to animal.

Continued imposition of the current 16.6% duty level on this specialized compound will only increased the cost to state and local agencies as well as research institutions. I urge to take favorable action on H.R. 2947 to suspend this excessive duty on this unique and needed drug.

Sincerely,

Elliott Jacobson, DVM, PhD
EJ/nr

EQUAL EMPLOYMENT OPPORTUNITY; AFFIRMATIVE ACTION EMPLOYER

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THE

ROBERT W. WOODRUFF HEALTH SCIENCES CENTER

OF
EMORY UNIVERSITY

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The Honorable Sam Gibbons
Committee on Ways and Means
Subcommittee on Trade
U.S. House of Representatives
Washington, DC 20515

RE: H.R. 2947, Suspension of duty on carfentanil citrate for 3 year period

Dear Congressman Gibbons:

1 am the past Executive Director of the American Association of Zoo Veterinarians and currently engaged in work with exotic and wild species in addition to my capacity as University Veterinarian for Emory University.

Carfentanil is solely for use in wild and exotic species and has no applicable use in human or veterinary medicine. The availability of carfentanil citrate to the veterinarians working in zoos and national wildlife agencies enables safe and effective capture and handling of species that previously could not be handled. Due to the highly specialized nature of this drug, it must be imported directly from Belgium. The 16.6% import duty currently in force will greatly increase the cost of this drug to the publicly funded zoos.

In an effort to insure that this unique and highly useful pharmaceutical will continue to be available to the zoo veterinarians throughout the country, 1 urge favorable action on H.R. 2947 to suspend the current l6.62 duty on carfentanil citrate.

Sincerely,

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H.R. 2981

For the relief of Princeton University, Princeton, New Jersey.
No statements submitted.

H.R. 3059

To extend the filing period for reliquidation of certain imports.
No statements submitted.

H.R. 3139

To extend for 3 years the existing suspension of duty on certain brussels sprouts. No statements submitted.

H.R. 3211

To amend the Tariff Schedules of the United States by repealing item 807.00 relating to certain articles assembled from abroad from fabricated components which are products of the United States.

December 2, 1987.

Robert J. Leonard, Chief Counsel.
Committee on Ways and Means.
U.S. House of Representatives, Room 1102
Longworth House Office Building.
Washington, D.C. 20515.

Sir:

In reference to H.R. 3211, as a contractor providing low cost
labor services to U.S. companies, 1 have been involved with
807.00 since 1969.

Over the years this item has been the subject of repeated ana-
lysis and studies. The result of all the concern has genera-
lly been an agreement that item 807.00 is beneficial to the
U.S. companies that use it, by allowing them to use low cost
labor on the U.S. border and at other "offshore" locations,
without being penalized with unfair U.S. taxation on U.S. ma-
terials and goods used in the foreign manufacture.

The chief advantage is to the users of U.S. materials and com-
ponents. This has to be a positive effect on U.S. employment.
Imposing import taxes on U.S. goods would give an edge to al-
ready lower cost materials sourced in the Far East and other
efficient manufacturing locations.

807.00 provides a balancing effect to the more costly U.S. manufacturers.

It also has a secondary but beneficial effect on U.S- Mexico labor intensive operations, thereby keeping a substantial percentage of the money paid for foreign labor, back in border cities and in the U.S. trade balance. By favoring the use of U.S. materials, 807.00 makes it important to keep the manufacturing close to the U.S., to avoid several thousand miles of transportation costs to the Far East.

This helps Mexico to keep it's population on the Mexican side
of the border.

Mr. LaFalse is either shortsighted or misinformed, or worse.
The effects of 807.00 have been studied as much as possible.
Repealing it would work in favor of Far East manufacturers,
who would regain some of their cost competitiveness; it would
drive some of the U.S. manufacturing being performed by Japa-
nese and other for East companies, back to their countries, sin-
ce they would be penalized on the use of U.S. materials expor-
ted for assembly into some of their products.

Removing 807.00 would not result in more U.S. employment. U.S.
companies losing this small edge in costs would probably aban-
don the products, or go out of business.

It is not easy for U.S. executives to take their manufacturing "onshore", even if it is only to the U.S.'border. Contrary to Washingtonian views, it Is not "greed" but desperation that forces responsible business men to seek competitiveness in the international arena, where business is now conducted.

Taking U.S. operations to another country, going through the frustrations and shock of different cultures and the complexities of other government's regulations, is not a step taken lightly or out of selfishness or other lesser considerations. It is a risky, difficult and worrisome process, and it is not done unless out of sheer survival considerations. 807.00 is not a determinant in this process, it is just a minor convenience and a fair measure.

To summarize:

807.00 is an iten that favors U.S. Manufacturers.

It is a secondary consideration in the process of seeking lower costs through "offshore* processing.

It's repeal would penalize users of U.S goods, raise costs of U.S products assembled in a foreign location, and sake foreign manufacturers more competitive.

It's repeal will not benefit U.S. employment; it will make a bad situation worse.

There is no room in international competition for ideologically motivated measures such as H.R. 3211. The Congress of the U.S. should get out of the way of people trying to be productive and paying for their trillion dollar Federal government, whether we like it or not.

These statements reflect my personal position on the subject of the repeal of Item 807.00, based on my experience of 18 years in the industry

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Bravo, General Manager. Alpha Assembly Technologies, Inc. 1685 Precision Park Lane. Suite J. San Diego, CA. 92073.

ALTUS CORPORATION

1610 Crane Ct.

San Jose, CA 95112

(408)436-1300

November 25, 1987
Alt Pile: 5912

Mr. Robert J. Leonard

Chief Counsel

Committee on Ways and Means

U. S. House of Representatives

Longworth House Office Building

Room 1102

Washington, DC 20515

Dear Sir:

This is an appeal to the Committee to reject H.R.3211 which would repeal item 807.00.

We have utilized item 807.00 for over five years. It has been instrumental in our ability to compete with Japanese, Taiwanese and Korean battery imports. Our factory in Santa Ana, California employs over 130 people in the finishing, testing, packaging and distribution of sealed lead acid batteries.

We ship components manufactured by suppliers throughout the United States to Mexicalli, Mexico for processing and assembly, prior to being returned to the United States for completion as described above. This has enabled us to compete from a price standpoint against very aggressive Asian competition. It has also enabled us to compete in the European market and do exporting which is very price sensitive.

Repeal of item 807.00 would add costs to our product which is already only modestly profitable. If we are unable to profitably compete with the Asian battery companies we would be forced to close our Santa Ana operations and withdraw from what is presently a $15 million business of which approximately 25% is shipped overseas.

Clearly such an action would be harmful to our company, certainly our terminated employees would suffer, as would our suppliers. Our trade deficit would also be further affected both by the increase in Asian deliveries to the United States and the loss of United States exports to Europe.

Lastly, it does not seem to be in the best interests of the United States to damage the economy of our neighbor in Mexico in any way. Further unemployment across the border only adds to our immigration problems and the precarious financial conditions of Mexico is not in our best interests and further damage inflicted by this type of legislative action is short sighted at best.

As such we strongly urge the Committee and the Congress not to enact H.R.3211.

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