Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?
                                                       Calendar No. 666
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-356
_______________________________________________________________________


 
       MISCELLANEOUS TARIFF AND TECHNICAL CORRECTIONS ACT OF 1998

                                _______
                                

               September 29, 1998.--Ordered to be printed

_______________________________________________________________________


    Mr. Roth, from the Committee on Finance, submitted the following

                              R E P O R T

                        [To accompany H.R. 4342]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Finance, to which was referred the bill 
(H.R. 4342) to make technical corrections and miscellaneous 
amendments to the trade laws, having considered the same, 
reports favorably thereon with an amendment in the nature of a 
substitute and recommends that the bill, as amended, do pass.

                             I. BACKGROUND

    On February 17, 1998 and on April 9, 1998, Chairman Roth 
requested public comment on a package of technical corrections, 
temporary duty suspensions or reductions and other 
miscellaneous trade proposals introduced during the 105th 
Congress and referred to the Committee on Finance. H.R. 4342, 
as amended, includes many of these bills which, based upon the 
comments submitted to the Committee on Finance by the U.S. 
Customs Service, the U.S. Department of Commerce, the U.S. 
International Trade Commission (ITC), the United States Trade 
Representative and other agencies, the Committee has found to 
be non-controversial.

                  II. SUMMARY OF H.R. 4243, AS AMENDED

               Short Title; Table of Contents (Section 1)

    This section provides that this Act may be cited as the 
``Miscellaneous Trade and Technical Corrections Act of 1998.'' 
This section also provides a table of contents for the Act.

                TITLE I--MISCELLANEOUS TRADE CORRECTIONS

                   Clerical amendments (Section 1001)

Explanation of provision

    This provision makes clerical amendments to the trade laws 
to bring them up to date with current institutions and 
statutes.

Reason for change

    The provision is necessary to bring trade law into 
compliance with current terminology and statutes reached in new 
agreements.

               Obsolete references to GATT (Section 1002)

Present law

    In many instances, the U.S. Code still references the 
General Agreement on Tariffs and Trade (GATT).

Explanation of provision

    The provision will update several provisions of the U.S. 
code to properly refer to the GATT and the World Trade 
Organization (WTO).

Reason for change

    On January 1, 1995, the WTO was created to administer the 
GATT 1994 and the Uruguay Round Agreements. Section 1002 
revises various provisions of the trade laws to reflect the 
establishment of the WTO and the Uruguay Round Agreements.

          Classification of 13-inch televisions (Section 1003)

Present law

    Televisions with an exact diagonal measurement of 33.02 cm 
(13 inches) are classifiable under HTS subheading 8528.12.20, 
which corresponds to a duty rate of 2 percent. If the diagonal 
measurement exceeds 33.02 cm, but does not exceed 35.56 cm, 
then the televisions are classifiable under HTS subheading 
8528.12.24 with a corresponding duty rate of 5 percent.

Explanation of provision

    This provision corrects the classification of certain 
televisions in the HTS by specifying that ``13-inch'' 
television receivers, monitors, and picture tubes, and 
combination TV/VCRs, may have diagonal measurement up to 
``34.29 centimeters,'' which is 13 and one-half inches, in the 
HTS. This correction gives the Customs Service the authority it 
needs to apply lower tariffs on ``13-inch'' televisions up to 
34.29 centimeters.

Reason for change

    During the GATT Uruguay Round, the United States agreed to 
phase down U.S. tariffs on ``13- inch'' television receivers, 
monitors, and picture tubes, and on combination TV/VCRs, over 
the period from 1995 to 1999. Specifically, the United States 
agreed to reduce tariffs on receivers and monitors from 5 
percent to zero, on picture tubes from 15 percent to 7.5 
percent, and on combination TV/VCRs from 3.9 percent to zero. 
The term ``13-inch'' is a commercial designation employed by 
television manufacturers to describe television products whose 
picture tubes are approximately, but not exactly, 13 inches by 
diagonal measurement.
    The correction does not increase the number of television 
receivers, monitors, and picture tubes, and combination TV/
VCRs, on which lower tariffs were stipulated by the Uruguay 
Round Agreement. Accordingly, the provision is revenue-neutral 
under Congressional budget rules because the cost of the 
reductions in tariffs on these ``13-inch'' television products 
was paid for when the Uruguay Round implementing legislation 
was enacted.

Effective date

    This provision shall go into effect on October 1, 1998.

  TITLE II--TEMPORARY DUTY SUSPENSIONS AND REDUCTIONS AND OTHER TRADE 
                               PROVISIONS

         Subtitle A: Temporary Duty Suspensions and Reductions

    The provisions in Subtitle A consist of temporary 
suspensions and reductions of duties for a variety of products.

                          CHAPTER 1--REFERENCE

                        Reference (Section 2001)

    This section provides that, except as otherwise expressly 
provided, whenever in this subtitle an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a chapter, 
subchapter, note, additional U.S. note, heading, subheading, or 
other provision, the reference shall be considered to be made 
to the Harmonized Tariff Schedule of the United States (19 
U.S.C. 3007).

               CHAPTER 2--DUTY SUSPENSIONS AND REDUCTIONS

               Diiodomethyl-p-tolylsulfone (Section 2101)

Present law

    Diiodomethyl-p-tolylsulfone (DMTS) is a fungicide/mideweide 
used in chaulks, adhesives, plastics and other purposes and is 
classifiable under HTS subheading 2930.90.10 and subject to an 
NTR duty rate of 10.1% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for DMTS as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Racemic dl-menthol (Section 2102)

Present law

    Racemic dl-menthol is a chemical used as a fragrance or 
flavor to produce pharmaceuticals, confections, and cigarettes. 
This product is classifiable under HTS subheading 2906.11.00 
and subject to an NTR duty rate of 2.1% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Racemic dl-menthol as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

    2,4-Dicholoro-5-hydrazino-phenol-monohydrochoride (Section 2103)

Present law

    2,4-Dicholoro-5-hydrazino-phenol-monohydrochoride is used 
in the manufacture of Azafenidin, an active ingredient in 
DuPont's ``Milestone'' herbicide 113. This product is 
classifiable under HTS subheading 2928.00.25 and subject to an 
NTR duty rate of 6.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2,4-Dicholoro-5-
hydrazino-phenol-monohydrochoride as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                           TAB (Section 2104)

Present law

    Phosphinic acid, [3-(acetyloxy)-3-cyanopropy]methyl-, butyl 
ester (ACM) is utilized in the manufacture of glufonsinate 
ammonium, a non-selective herbicide. This product is 
classifiable under HTS subheading 2931.00.90 and subject to an 
NTR duty rate of 3.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Phosphinic acid, [3-
(acetyloxy)-3-cyanopropy]methyl-, butyl ester as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduceproduction costs, operate 
more efficiently, and pass savings on to the downstream users and 
consumers. There is no domestic production of this product.

                 Certain snowboard boots (Section 2105)

Present law

    Snowboard boots with uppers of textile material are 
classifiable under HTS subheading 6406.11.90 and subject to an 
NTR duty rate of 20% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for snowboard boots with 
uppers of textile material as temporarily duty free until 
December 31, 2001.

Reason for change

    This temporary duty suspension would make the tariff rate 
for this product conform with the rate for similar boots with 
uppers of leather or plastic. There is no domestic production 
of this product.

   Ethofumesate, singularly or in mixture with application adjuvants 
                             (Section 2106)

Present law

    2-Ethoxy-2,3-dihydro-3,3-dimethyl-5-
benzofuranylmethanesulfonate (ethofumesate) singularly or in 
mixtures with application adjutants is a chemical used in the 
production of certain herbicides and is subject to an NTR duty 
rate of 6.6% ad valorem (if classifiable under HTS 2932.99.08) 
and 0.4 cents/kg+7.1% ad valorem (if classifiable under HTS 
3808.30.15).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Ethoxy-2,3-dihydro-3,3-
dimethyl-5-benzofuranylmethanesulfonate (ethofumesate) 
singularly or in mixtures as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   3-Methoxycarbonylaminophenyl 3,-methylcarbanilate (phenmedipham) 
                             (Section 2107)

Present law

    3-Methoxycarbonylaminophenyl 3,-methylcarbanilate 
(phenmedipham) is a chemical used in the production of certain 
herbicides and is subject to an NTR duty rate of 10.3% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-
Methoxycarbonylaminophenyl 3,-methylcarbanilate (phenmedipham) 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 3-Ethoxycarbonyl-aminophenyl-N-phenylcarbamate (desmedipham) (Section 
                                 2108)

Present law

    3-Ethoxycarbonyl-aminophenyl-N-phenylcarbamate 
(desmedipham) is subject to an NTR duty rate of 6.6% ad 
valorem. This chemical is used in the production of certain 
herbicides.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-Ethoxycarbonyl-
aminophenyl-N-phenylcarbamate (desmedipham) as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   2-Amino-4-(4-aminobenzoylamino)-benzenesulfonic acid, sodium salt 
                             (Section 2109)

Present law

    2-Amino-4-(4-aminobenzoylamino)-benzenesulfonic acid, 
sodium salt is an intermediate chemical used in the production 
of certain synthetic dyes and is classifiable under HTS 
subheading 2930.90.29 and subject to an NTR duty rate of 6.5% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-4-(4-
aminobenzoylamino)-benzenesulfonic acid, sodium salt as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

    5-Amino-N-(2-hydroxyethyl)-2,3-xylenesulfonamide (Section 2110)

Present law

    5-Amino-N-(2-hydroxyethyl)-2,3-xylenesulfonamide is an 
intermediate chemical used in the production of certain 
synthetic dyes and is classifiable under HTS 2935.00.95 and 
subject to an NTR duty rate of 2.2 cents/kg+13.4% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 5-Amino-N-(2-
hydroxyethyl)-2,3-xylenesulfonamide as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

    3-Amino-2,-(sulfatoethylsulfonyl) ethyl benzamide (Section 2111)

Present law

    3-Amino-2,-(sulfatoethylsulfonyl) ethyl benzamide is an 
intermediate chemical used in the production of certain 
synthetic dyes and is under HTS 2930.90.29 and subject to an 
NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-Amino-2,-
(sulfatoethylsulfonyl) ethyl benzamide as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

4-Chloro-3-nitrobenzenesulfonic acid, monopotassium salt (Section 2112)

Present law

    4-Chloro-3-nitrobenzenesulfonic acid, monopotassium salt is 
an intermediate chemical used mainly in the production of 
certain synthetic dyes and is classifiable under HTS 2904.90.47 
and subject to an NTR duty rate of 2.2 cents/kg+11.7% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloro-3-
nitrobenzenesulfonic acid, monopotassium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                 2-Amino-5-nitrothiazole (Section 2113)

Present law

    2-Amino-5-nitrothiazole is classifiable under HTS 
2934.10.90 and subject to an NTR duty rate of 10.7% ad valorem. 
This product is an intermediate chemical used mainly in the 
production of certain synthetic dyes.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-nitrothiazole 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

           4-Chloro-3-nitrobenzesulfonic acid (Section 2114)

Present law

    4-Chloro-3-nitrobenzesulfonic acid is classifiable under 
HTS 2904.90.47 and subject to an NTR duty rate of 2.2/kg+11.7% 
ad valorem. This product is an intermediate chemical used 
mainly inthe production of certain synthetic dyes.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloro-3-
nitrobenzesulfonic acid as temporarily duty free until December 
31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

         6-Amino-1,3-naphthalenedisulfonic acid (Section 2115)

Present law

    6-Amino-1,3-naphthalenedisulfonic acid is an intermediate 
chemical used mainly in the production of certain synthetic 
dyes and is classifiable under HTS 2921.45.90 and subject to an 
NTR duty rate of 1.4 cents/kg+13.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 6-Amino-1,3-
naphthalenedisulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  4-Chloro-3-nitrobenzenesulfonic acid, monosodium salt (Section 2116)

Present law

    4-Chloro-3-nitrobenzenesulfonic acid, monosodium salt is an 
intermediate chemical used mainly in the production of certain 
synthetic dyes and is classifiable under HTS 2904.90.40 and 
subject to an NTR duty rate of 10.3% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloro-3-
nitrobenzenesulfonic acid, monosodium salt as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          2-Methyl-5-nitrobenzenesulfonic acid (Section 2117)

Present law

    2-Methyl-5-nitrobenzenesulfonic acid is an intermediate 
chemical used mainly in the production of certain synthetic 
dyes and is classifiable under HTS subheading 2904.90.20 and 
subject to an NTR duty rate of 8.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Methyl-5-
nitrobenzenesulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  6-Amino-1,3-naphthalenedisulfonic acid, disodium salt (Section 2118)

Present law

    6-Amino-1,3-naphthalenedisulfonic acid, disodium salt is an 
intermediate chemical used mainly in the production of certain 
synthetic dyes and is classifiable under HTS subheading 
2921.45.90 and subject to an NTR duty rate of 1.4 cents/kg + 
13.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 6-Amino-1,3-
naphthalenedisulfonic acid, disodium salt as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    2-Amino-p-cresol (Section 2119)

Present law

    2-Amino-p-cresol is an intermediate chemical used mainly in 
the production of certain synthetic dyes and is classifiable 
under HTS subheading 2922.29.10 and subject to an NTR duty rate 
of 5.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-p-cresol as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

               6-Bromo-2,4-dinitroaniline (Section 2120)

Present law

    6-Bromo-2,4-dinitroaniline is an intermediate chemical used 
mainly in the production of certain synthetic dyes and is 
classifiable under HTS subheading 2921.42.90 and subject to an 
NTR duty rate of 1.4 cents/kg+13.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 6-Bromo-2,4-
dinitroaniline as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  7-Acetylamino-4-hydroxy-2-naphthalenesulfonic acid, monosodium salt 
                             (Section 2121)

Present law

    7-Acetylamino-4-hydroxy-2-naphthalenesulfonic acid, 
monosodium salt is an intermediate chemical used mainly in the 
production of certain synthetic dyes and is classifiable under 
HTS subheading 2924.29.70 and subject to an NTR duty rate of 
10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 7-Acetylamino-4-hydroxy-
2-naphthalenesulfonic acid, monosodium salt as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                       Tannic acid (Section 2122)

Present law

    Tannic acid is an intermediate chemical used mainly in the 
production of certain synthetic dyes and is classifiable under 
HTS subheading 3201.90.10 and subject to an NTR duty rate of 
1.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for tannic acid as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  2-Amino-5-nitrobenzenesulfonic acid, monosodium salt (Section 2123)

Present law

    2-Amino-5-nitrobenzenesulfonic acid, monosodium salt is an 
intermediate chemical used mainly in the production of certain 
synthetic dyes and is classifiable under 2921.42.90 and subject 
to an NTR duty rate of 1.4 cents/kg+13.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-
nitrobenzenesulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 2-Amino-5-nitrobenzenesulfonic acid, monoammonium salt (Section 2124)

Present law

    2-Amino-5-nitrobenzenesulfonic acid, monoammonium salt is 
an intermediate chemical used mainly in the production of 
certain synthetic dyes and is classifiable under HTS subheading 
2921.42.90 and subject to an NTR duty rate of 1.4 cents/
kg+13.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-
nitrobenzenesulfonic acid, monoammonium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

           2-Amino-5-nitrobenzenesulfonic acid (Section 2125)

Present law

    2-Amino-5-nitrobenzenesulfonic acid is an intermediate 
chemical used mainly in the production of certain synthetic 
dyes and is classifiable under HTS subheading 2921.42.90 and 
subject to an NTR duty rate of 1.4 cents/kg+13.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-
nitrobenzenesulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  3-(4,5-Dihydro-3-methyl-5-oxo-1H-pyrazol-1-yl)benzenesulfonic acid 
                             (Section 2126)

Present law

    3-(4,5-Dihydro-3-methyl-5-oxo-1H-pyrazol-1-
yl)benzenesulfonic acid is an intermediate chemical used mainly 
in the production of certain synthetic dyes and is classifiable 
under HTS subheading 2933.19.43 and subject to an NTR duty rate 
of 2.2 cents/kg+12.3% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 3-(4,5-Dihydro-3-methyl-
5-oxo-1H-pyrazol-1-yl)benzenesulfonic acid as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid (Section 2127)

Present law

     4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid is an 
    intermediate chemical used mainly in the production of certain 
synthetic dyes and is classifiable under HTS subheading 2924.29.75 and 
     subject to an NTR duty rate of 2.2 cents/kg+13.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Benzoylamino-5-hydroxy-
2,7-naphthalenedisulfonic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid, monosodium 
        salt (Section 2128)

Present law

    4-Benzoylamino-5-hydroxy-2,7-naphthalenedisulfonic acid, 
monosodium salt is an intermediate chemical used mainly in the 
production of certain synthetic dyes and is classifiable under 
HTS subheading 2924.29.70 and subject to an NTR duty rate of 
10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Benzoylamino-5-hydroxy-
2,7-naphthalenedisulfonic acid, monosodium salt as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduceproduction costs, operate 
more efficiently, and pass savings on to the downstream users and 
consumers. There is no domestic production of this product.

                   Pigment Yellow 151 (Section 2129)

Present law

    Pigment Yellow 151 is an organic pigment primarily used in 
the automotive coating industry. It is an environmentally 
benign substitute for comparable inorganic pigments using heavy 
metal chemicals such as cadmium, chrome, lead, and molybdenum, 
which are considered toxic. And is classifiable under HTS 
subheading 3204.17.90 and subject to an NTR duty rate of 11.6% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 151 as 
temporarily lowering the duty to 6.4% until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 181 (Section 2130)

Present law

    Pigment Yellow 181 is an organic pigment primarily used in 
the coloration of plastic processed over 200 degrees Centigrade 
and is classifiable under HTS subheading 3204.17.60 and subject 
to an NTR duty rate of 11.6% ad valorem. It is an 
environmentally benign substitute for comparable inorganic 
pigments using heavy metal chemicals such as cadmium, chrome, 
lead, and molybdenum, which are considered toxic.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 181 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 154 (Section 2131)

Present law

    Pigment Yellow 154 is an organic pigment primarily used in 
the automotive coating industry. It is an environmentally 
benign substitute for comparable inorganic pigments using heavy 
metal chemicals such as cadmium, chrome, lead, and molybdenum, 
which are considered toxic. and is classifiable under HTS 
subheading 3204.17.60 and subject to an NTR duty rate of 11.6% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 154 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 175 (Section 2132)

Present law

    Pigment Yellow 175 is an organic pigment primarily used in 
the automotive coating industry. It is an environmentally 
benign substitute for comparable inorganic pigments using heavy 
metal chemicals such as cadmium, chrome, lead, and molybdenum, 
which are considered toxic. and is classifiable under HTS 
subheading 3204.17.60 and subject to an NTR duty rate of 11.6% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 175 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 180 (Section 2133)

Present law

    Pigment Yellow 180 is a yellow pigment approved by FDA for 
indirect food contact and is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 11.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 180 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                   Pigment Yellow 191 (Section 2134)

Present law

    Pigment Yellow 191 is a yellow pigment approved by FDA for 
indirect food contact and is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 11.6% ad valorem.

                        Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 191 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 187 (Section 2135)

Present law

    Pigment Red 187 is a red pigment approved by FDA for 
indirect food contact and is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 11.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 187 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 247 (Section 2136)

Present law

    Pigment Red 247 is classifiable under HTS subheading 
3204.17.60 and subject to an NTR duty rate of 11.6% ad valorem. 
This pigment is used in the coloration of plastics that are 
processed at temperatures exceeding 200 deg. C.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 247 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                    Pigment Orange 72 (Section 2137)

Present law

    Pigment Orange 72 is used in the coloration of plastics 
that are processed at temperatures exceeding 200+ C. and is 
classifiable under HTS subheading 3204.17.60 and subject to an 
NTR duty rate of 11.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Orange 72 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumer

                    Pigment Yellow 16 (Section 2138)

Present law

    Pigment Yellow 16 is used in industrial and agricultural 
coating and is classifiable under HTS subheading 3204.17.04 and 
subject to an NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 16 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 185 (Section 2139)

Present law

    Pigment Red 185 pigment is primarily used in the coloration 
of plastics that are processed at temperatures exceeding 200 
deg.C and is classifiable under HTS subheading 3204.17.04 and 
subject to an NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 185 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 208 (Section 2140)

Present law

    Pigment Red 208 is primarily used in the coloration of 
plastics that are processed at temperatures exceeding 200 
deg.C and is classifiable under HTS subheading 3204.17.04 and 
subject to an NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 208 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 188 (Section 2141)

Present law

    Pigment Red 188 is a synthetic organic pigment primarily 
used in agricultural and industrial coating applications and is 
classifiable under HTS subheading 3204.17.04 and subject to an 
NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 188 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

           2,6-Dimethyl-m-dioxan-4-ol acetate (Section 2142)

Present law

    2,6-Dimethyl-m-dioxan-4-ol acetate (``DXN'') is a 
preservative used primarily in the manufacture and/or 
processing of industrial water-based products to inhibit 
microbial growth in textile manufacturing and for the 
preservation of cement admixtures and is classifiable under HTS 
subheading 2932.99.90 and subject to an NTR duty rate of 3.7% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2,6-Dimethyl-m-dioxan-4-
ol acetate as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

             b-bromo--nitrostyrene (Section 2143)

Present law

    -Bromo--nitrostyrene (``BNS'') is a 
preservative that controls the growth of bacteria and fungi in 
the production of high quality paper and is classifiable under 
HTS subheading 2904.90.47 and subject to an NTR duty rate of 
2.2 cents/kg+11.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for -Bromo-
-nitrostyrene as temporarily duty free until December 
31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                    Textile machinery (Section 2144)

Present law

    Ink jet textile printing machinery is classifiable under 
HTS subheading 8443.51.10 and subject to an NTR duty rate of 
3.1% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for ink jet textile printing 
machinery as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                      Deltamethrin (Section 2145)

Present law

    (S)--cyano-3-phenoxybenzyl (1R, 3R)-3-(2,2-
dibromovinyl)-2,2- dimethylcyclopropanecarboxylate 
(deltamethrin) in bulk or in forms or packings for retail sale 
is classifiable and subject to an NTR duty rate of 10.1% ad 
valorem (for HTS subheading 2926.90.30) or 0.4 cents/kg+7.1% ad 
valorem (for HTS subheading 3808.10.25). Deltamethrin is a 
synthetic organic chemical used as the active ingredient in 
certain insecticides

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for deltamethrin as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                     Diclofop-methyl (Section 2146)

Present law

    Diclofop-methyl and is classifiable and subject to an NTR 
duty rate of 10.7% ad valorem (for HTS subheading 2918.90.20) 
or 0.4 cents/kg+7.1% ad valorem (for HTS subheading 
3808.30.15). The product is used as a post emergence herbicide.

Explanation of provision

    The provision would extend the temporary duty free 
treatment accorded this product in chapter 99, subchapter II of 
the HTS until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                       Resmethrin (Section 2147)

Present law

    ([5-(phenylmethyl)-3-furanyl]methyl 2,2-dimethyl-3-(2-
methyl-1-propenyl) cyclopropanecarboxylate (resmethrin) is 
classifiable under HTS subheading 2932.19.10 and subject to an 
NTR duty rate of 6.5 % ad valorem. Resmethrin is the active 
ingredient in certain insecticides.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for resmethrin as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          N-phenyl-N'-1,2,3-thiadiazol-5-ylurea (Section 2148)

Present law

    N-phenyl-N'-1,2,3-thiadiazol-5-ylurea (thidiazuron) is a 
plant growth regulator used for the defoliation of cotton and 
is classifiable and subject to an NTR duty rate of 10.7% ad 
valorem (for HTS subheading 2934.90.15) or 0.4 cents/kg+7.1% ad 
valorem (for HTS subheading 3808.30.15).

Explanation of provision

    The provision would extend the duty free treatment accorded 
this product under chapter 99, subchapter II of the HTS until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

        (1R, 3S) 3 [(1,RS) (1,,2,,2,,2,,-Tetrabromoethyl)] -2,2-
      dimethylcyclopropanecarboxylic acid (S)-- cyano-3-
                   phenoxybenzyl ester (Section 2149)

Present law

    (1R, 3S) 3 [(1'RS) (1,,2,,2,,2,,-Tetrabromoethyl)] -2,2-
dimethylcyclopropanecarboxylic acid (S)--cyano-3-
phenoxybenzyl ester in bulk or in forms or packages for retail 
sale (tralomethrin) is the active ingredient in certain 
insecticides and is classifiable and subject to an NTR duty 
rate of 10.1% ad valorem (for HTS subheading 2926.90.30) or 
0.4 cents/kg+7.1% ad valorem (for HTS subheading 3808.10.25).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for tralomethrin as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 109 (Section 2150)

Present law

    Pigment Yellow 109 is used in the production of plastics, 
specialty printing inks, and coatings (e.g. automotive 
refinishing) and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 109 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                   Pigment Yellow 110 (Section 2151)

Present law

    Pigment Yellow 110 is used in the production of plastic, 
specialty printing inks, and coatings (i.e. automotive 
refinishing) and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 110 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                     Pigment Red 177 (Section 2152)

Present law

    Pigment Red 177 is and used in the production of plastic, 
specialty printing inks, and coatings (i.e. automotive 
refinishing) and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 177 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

               Textile printing machinery (Section 2153)

Present law

    The textile printing machinery covered under this provision 
is classifiable under HTS subheading 8443.59.10 and subject to 
an NTR duty rate of 3.1% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a newsubheading for certain textile machinery 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

  Substrates of synthetic quartz or synesthetic fused silica (Section 
                                 2154)

Present law

    Substrates of synthetic quartz or synesthetic fused silica 
is classifiable under HTS subheading 7006.00.40 and subject to 
an NTR duty rate of 4.9% ad valorem. This is a high-purity 
glass which is transformed into photomask blanks which are 
ultimately used to project circuit patterns to manufacture 
semiconductors.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for substrates of synthetic 
quartz or synesthetic fused silica as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

        2-Methyl-4,6-bis[(octylthio)methyl]phenol (Section 2155)

Present law

    2-Methyl-4,6-bis[(octylthio)methyl]phenol is a synthetic 
organic chemical used mainly as an antioxidant and processing 
stabilizer in the manufacture of rubber and elastomeric 
products. and is classifiable under HTS subheading 2930.90.29 
and subject to an NTR duty rate of 6.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Methyl-4,6-
bis[(octylthio)methyl]phenol as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   2-Methyl-4,6 bis[octylthio)methyl]phenol; epoxidized triglyceride 
                             (Section 2156)

Present law

    2-Methyl-4,6 bis[octylthio)methyl]phenol; epoxidized 
triglyceride is a synthetic organic chemical used mainly as an 
antioxidant and processing stabilizer in the manufacture of 
rubber and elastomeric products and is classifiable under HTS 
subheading 3812.30.60 and subject to an NTR duty rate of 
2.2 cents/kg+10.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Methyl-4,6 
bis[octylthio)methyl]phenol; epoxidized triglyceride as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

     4-[[4,6-Bis(octylthio)-1,3,5-triazin-2-yl]amino]-2,6-bis(1,1-
                  dimethylethyl)phenol (Section 2157)

Present law

    4-[[4,6-Bis(octylthio)-1,3,5-triazin-2-yl]amino]-2,6-
bis(1,1-dimethylethyl)phenol is a synthetic organic chemical 
used mainly as an antioxidant and processing stabilizer in the 
manufacture of rubber, adhesives and elastomeric products and 
is classifiable under HTS subheading 2933.69.60 and subject to 
an NTR duty rate of 3.5% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-[[4,6-Bis(octylthio)-
1,3,5-triazin-2-yl]amino]-2,6-bis(1,1-dimethylethyl)phenol as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          (2-Benzothiazolythio)butanedioic acid (Section 2158)

Present law

    (2-Benzothiazolythio)butane-dioic acid is a synthetic 
organic chemical used as a corrosion inhibitor in the 
manufacture of heavy duty maintenance coatings, aircraft 
coatings, and dry fall coatings and is classifiable under HTS 
subheading 2934.20.40 and subject to an NTR duty rate of 10.7% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for (2-
Benzothiazolythio)butane-dioic acid as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

Calcium bis[monoethyl (3,5-di-tert-butyl-4-hydroxybenzyl) phosphonate] 
                             (Section 2159)

Present law

    Calcium bis[monoethyl (3,5-di-tert-butyl-4-hydroxybenzyl) 
phosphonate] is a synthetic organic chemical used as an 
antioxidant and catalyst and is classifiable under HTS 
subheading 2931.00.30 and subject to an NTR duty rate of 10.7% 
ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for calcium bis[monoethyl 
(3,5-di-tert-butyl-4-hydroxybenzyl) phosphonate] as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

Present law

       4-Methyl--oxo-benzenbutanoic acid compd. with 4-
                  ethylmorpholine (2:1) (Section 2160)

    4-Methyl--oxo-benzenbutanoic acid compd. with 4-
ethylmorpholine (2:1) is classifiable under HTS 3824.90.28 and 
subject to an NTR duty rate of 10.7 % ad valorem. This is a 
synthetic organic compound used as a corrosion inhibitor in the 
manufacture of direct to metal mono-coats (i.e., rail cars and 
maintenance coatings).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Methyl--oxo-
benzenbutanoic acid compd. with 4-ethylmorpholine (2:1) as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Weaving machines (Section 2161)

Present law

    Certain weaving machines (looms), shuttleless type, for 
weaving fabrics of a width exceeding 30cm, but not exceeding 
4.9 meters and are classifiable under HTS 8446.30.50 and 
subject to an NTR duty rate of 3.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain weaving machines 
covered under this provision to reduce the tariff rate to 3.5% 
until December 31, 1998, and to 3.3% between January 1, 1999 
and December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

          Textile doubling or twisting machines (Section 2162)

Present law

    Textile doubling or twisting machines are classifiable 
under HTS 8445.30.00 and subject to an NTR duty rate of 0.8% ad 
valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for textile doubling or 
twisting machines as temporarily duty free until December 31, 
1998.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users andconsumers. There is no domestic production of this 
product.

                Certain weaving machines (Section 2163)

Present law

    Power weaving machines (looms), shuttle type, for weaving 
fabrics of a width exceeding 30 cm, but not exceeding 4.9 
meters are classifiable under HTS 8446.21.50 and subject to an 
NTR duty rate of 3.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain power weaving 
machines (looms) as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                          DEMT (Section 2164)

Present law

    DEMT (N,N-diethyl-m-toluidine) is classifiable under HTS 
subheading 2921.43.80 and subject to an NTR duty rate of 
1.4 cents/kg+13.9% ad valorem. DEMT is an intermediate chemical 
used in the production of certain color couplers for 
photographic film.

Explanation of provision

    The provision extends the duty free treatment provided for 
N,N-diethyl-m-toluidine under chapter 99, subchapter II of the 
HTS until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  Benzenepropanal, 4-(1,1-dimethylethyl)-alpha-methyl- (Section 2165)

Present law

    Benzenepropanal, 4-(1,1-dimethylethyl)-alpha-methyl- is 
classifiable under HTS subheading 2912.29.60 and subject to an 
NTR duty rate of 9.0% ad valorem. This product is an aroma 
chemical used principally as a raw material in the manufacture 
of fragrances for fabric softeners and detergents.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Benzenepropanal, 4-(1,1-
dimethylethyl)-alpha-methyl- to reduce to 6% until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

2H-3,1-Benzoxazin-2-one, 6-chloro-4-(cyclopropylethynyl)-1,4-dihydro-4-
                   (trifluoromethyl)- (Section 2166)

Present law

    2H-3,1-Benzoxazin-2-one, 6-chloro-4-(cyclopropylethynyl)-
1,4-dihydro-4-(trifluoromethyl)- is classifiable and subject to 
an NTR duty rate of 6.6% ad valorem under 2934.90.30. This 
chemical is the active pharmaceutical ingredient in an anti-
viral (anti-HIV and anti-AIDS) drug.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2H-3,1-Benzoxazin-2-one, 
6-chloro-4-(cyclopropylethynyl)-1,4-dihydro-4- 
(trifluoromethyl)- as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                      Tebufenozide (Section 2167)

Present law

    N-tert-butyl-N'- (4-ethylbenzoyl) -3,5-
dimethylbenzoylhydrazide (tebufenozide) is classifiable under 
HTS subheading 2928.00.25 and subject to an NTR duty rate of 
6.6% ad valorem. This product, which is also known as 
tebufenozide, is a narrow spectrum insecticide which targets 
lepidopterous insects--those whose larvae are caterpillars.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a newsubheading for N-tert-butyl-N'-(4-
ethylbenzoyl)-3,5-dimethylbenzoylhydrazide (tebufenozide) as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                      Halofenozide (Section 2168)

Present law

    Benzoic acid, 4-chloro-2-benzoyl-2-(1,1-dimethylethyl) 
hydrazide and is classifiable under HTS subheading 2928.00.25 
and subject to an NTR duty rate of 6.6% ad valorem. This 
product, which is also known as Halofenozide, is a narrow 
spectrum insecticide which targets, and is toxic only to a 
specific type of insect found on green plant matter of turf 
grasses and ornamental plants.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for benzoic acid, 4-chloro-2-
benzoyl-2-(1,1-dimethylethyl) hydrazide as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

            Certain organic pigments and dyes (Section 2169)

Present law

    Certain organic luminescent pigments and dyes, for security 
applications, excluding daylight florescent pigments and dyes, 
are classifiable under HTS subheading 3204.90.00 and subject to 
an NTR duty rate of 5.9% ad valorem. These luminescent complex 
organic chemicals are often designed (on a proprietary basis) 
for a specific use in products that require security and anti-
counterfeiting technology (e.g. stock certificates and credit 
cards).

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for organic luminescent 
pigments and dyes as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    4-Hexylresorcinol (Section 2170)

Present law

    4-Hexylresorcinol is classifiable under HTS subheading 
2907.29.90 and subject to an NTR duty rate of 5.8% ad valorem. 
This product is used in a variety of pharmaceutical and 
cosmetic applications including throat lozenges and topical 
antiseptics.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Hexylresorcinol as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                Certain sensitizing dyes (Section 2171)

Present law

    Polymethine photo-sensitizing dyes is classifiable under 
certain HTS subheadings. These dyes improve the spectral 
response photo-sensitive emulsion used on film.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Polymethine photo-
sensitizing dyes as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

Skating boots for use in manufacture of in-line roller skates (Section 
                                 2172)

Present law

    Skating boots for use in manufacture of in-line roller 
skates are classifiable under HTSsubheading 6402.19.90, 
6403.19.40, 6403.19.70 and 6404.11.90 and subject to an NTR duty rate 
of 20% ad valorem. 

Explanation of provision

     The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for such skating boots as 
temporarily duty free until December 31, 2001.

Reason for change

    Skating boots used for in-line skates are subject to a 20% 
duty. However, imports of completely-assembled in-line skates 
containing such boots enter free of duty, resulting in a tariff 
inversion which gives importers of in-line skates a competitive 
edge over U.S. producers of in-line skates. This provision 
would correct that tariff inversion and encourage U.S. 
production of in-line skates. There is negligible domestic 
production of this product.

       Dibutylnapthalenesulfonic acid, sodium salt (Section 2173)

Present law

     A surface active preparation containing 30% or more by 
weight of dibutylnapthalenesulfonic acid, sodium salt is used 
to manufacture end-use herbicides and is classifiable under HTS 
subheading 3402.90.30 and subject to an NTR duty rate of 5.8% 
ad valorem.

Explanation of provision

     The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for surface active 
preparation containing 30% or more by weight of 
dibualkylnapthalenesulfonic acid, sodium salt as temporarily 
duty free until December 31, 2001.

Reason for change

     The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

  O-(6-Chloro-3-phenyl-4-pyridazinyl)-S-octyl-carbonothioate (Section 
                                 2174)

Present law

     O-(6-Chloro-3-phenyl-4-pyridazinyl)-S-octyl-carbonothioate 
is classifiable under HTS subheading 3808.30.15 and subject to 
an NTR duty rate of 0.4 cents/kg+7.1% ad valorem. This product 
is a synthetic organic chemical used as an active ingredient in 
the manufacture of an herbicide for corn to control kochia and 
Russian thistle.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for O-(6-Chloro-3-phenyl-4-
pyridazinyl)-S-octylo-carbonothioate as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

     4-Cyclopropyl-6-methyl-2-phenylaminopyrimidine (Section 2175)

Present law

    4-Cyclopropyl-6-methyl-2-phenylaminopyrimidine is 
classifiable under HTS subheading 2933.59.15 and subject to an 
NTR duty rate of 10.2% ad valorem. This product is a synthetic 
organic chemical used as an active ingredient in the 
manufacture of fungicide formulations to control insects and 
mites in fruits, nuts, and cotton.

Explanation of provision

     The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Cyclopropyl-6-methyl-2-
phenylaminopyrimidine as temporarily duty free until December 
31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   O,O-Dimethyl-S-[5-methoxy-2-oxo-1,3,4-thiadiazol-3(2H)-yl-methyl]-
                     dithiophosphate (Section 2176)

Present law

     O,O-Dimethyl-S-[5-methoxy-2-oxo-1,3,4-thiadiazol-3(2H)-yl-
methyl]-dithiophosphate is classifiable under HTS subheading 
2934.90.90 and subject to an NTR duty rate of 6.8% ad valorem. 
This product is a synthetic organic chemical used as an active 
ingredient in the manufacture of fungicide formulations to 
control insects and mites in fruits, nuts, and cotton.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for O,O-Dimethyl-S-[5-
methoxy-2-oxo-1,3,4-thiadiazol-3(2H)-yl-methyl]-dithiophosphate 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduceproduction costs, operate 
more efficiently, and pass savings on to the downstream users and 
consumers. There is no domestic production of this product.

      Ethyl [2-(4-phenoxyphenoxy) ethyl] carbamate (Section 2177)

Present law

     Ethyl [2-(4-phenoxyphenoxy) ethyl] carbamate is 
classifiable under HTS subheading 2924.10.80 and subject to an 
NTR duty rate of 6.8% ad valorem. This product is a synthetic 
organic chemical used to manufacture insect growth regulators.

Explanation of provision

     The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Ethyl [2-(4-
phenoxyphenoxy) ethyl] carbamate as temporarily duty free until 
December 31, 2001.

Reason for change

     The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

 [(2S, 4R)/(2R, 4S)]/[(2R, 4R)/(2S, 4S)]-1-[2-[4-(4-Chloro-phenoxy) -2-
 chlorophenyl] -4-methyl-1,3-dioxolan-2-yl-methyl] -1H-1,2,4-triazole 
                             (Section 2178)

Present law

     [(2S,4R)/(2R,4S)]/[(2R,4R)/(2S,4S)]-1-[2-[4-(4-Chloro-
phenoxy)-2-chlorophenyl]-4-methyl-1,3-dioxolan-2-yl-methyl]-1H-
1,2,4-triazole is classifiable under HTS subheading 2934.90.12 
and subject to an NTR duty rate of 9.3% ad valorem. The 
chemical is an active ingredient used to formulate fungicide 
for use in seed treatments for cereals.

Explanation of provision

     The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for [(2S,4R)/(2R,4S)]/
[(2R,4R)/(2S,4S)]-1-[2-[4-(4-Chloro-phenoxy)-2-chlorophenyl]-4-
methyl-1,3-dioxolan-2-yl-methyl]-1H-1,2,4-triazole as 
temporarily duty free until December 31, 2001.

Reason for change

     The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

        2,4-Dichloro-3,5-dinitrobenzotrifluoride (Section 2179)

Present law

     2,4-Dichloro-3,5-dinitrobenzotrifluride is classifiable 
under HTS subheading 2910.90.20 and subject to an NTR duty rate 
of 5.7% ad valorem. This product is a synthetic organic 
chemical organic chemical used as an intermediate in the 
production of a herbicide active ingredient used to control 
weeds and turf grass.

Explanation of provision

     The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2,4-Dichloro-3,5-
dinitrobenzotrifluride as temporarily duty free until December 
31, 2001.

Reason for change

     The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

     2-Chloro-N-[2,6-dinitro-4-(trifluoromethyl) phenyl]-N-ethyl-6-
                fluorobenzenemethanamine (Section 2180)

Present law

     2-Chloro-N-[2,6-dinitro-4-(trifluoromethyl) phenyl]-N-
ethyl-6-fluorobenzenemethanamine is classifiable under HTS 
subheading 2921.49.45 and subject to an NTR duty rate of 10.7% 
ad valorem. This chemical is an active ingredient used to 
formulate a growth regulator to control suckers (undesirable 
side-shoots) in tobacco plants.

Explanation of provision

     The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Chloro-N-[2,6-dinitro-
4-(trifluoromethyl) phenyl]-N-ethyl-6- fluorobenzenemethanamine 
as temporarily duty free until December 31, 2001.

Reason for change

     The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                      Chloroacetone (Section 2181)

Present law

     Chloroacetone is classifiable under HTS subheading 
2914.19.00 and subject to an NTR dutyrate of 4.0% ad valorem. 
Chloroacetone is a raw material used in the production of a chemical 
intermediate for production of an herbicide (weed-killer) used for 
various crops.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for chloroacetone as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

    Acetic acid, [(5-chloro-8-quinolynyl)oxy]-, 1-methylhexyl ester 
                             (Section 2182)

Present law

    Acetic acid, [(5-chloro-8-quinolinyl)oxy]-, 1-methylhexyl 
ester is classifiable under HTS subheading 2933.40.30 and 
subject to an NTR duty rate of 9.3% ad valorem. The chemical is 
an intermediate used as a safener in the manufacture of an 
herbicide to control wild oats, foxtail and pigeon grass in 
wheat.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Acetic acid, [(5-chloro-
8-quinolinyl)oxy]-, 1-methylhexyl ester as temporarily duty 
free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

 Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-pyridinyl)oxy]phenoxy]-, 2-
                     propynyl ester (Section 2183)

Present law

    Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-
pyridinyl)oxy]phenoxy]-, 2-propynyl ester and is classifiable 
under HTS subheading 2933.39.25 and subject to an NTR duty rate 
of 10.7% ad valorem. This chemical is an active ingredient in 
the manufacture of herbicides to control wild oats, foxtail, 
and pigeon grass in wheat.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Propanoic acid, 2-[4-[(5-
chloro-3-fluoro-2-pyridinyl)oxy]phenoxy]-, 2-propynyl ester as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                    Mucochloric acid (Section 2184)

Present law

    Mucochloric acid is classifiable under HTS subheading 
2918.30.90 and subject to an NTR duty rate of 3.7% ad valorem. 
The chemical is a raw material used in the production of an 
active ingredient produced in the U.S. to make a herbicide for 
control of a unique spectrum of broadleaf weeds and grasses in 
cotton, alfalfa, citrus, trees, nuts, and vines.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for mucochloric acid as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                 Certain rocket engines (Section 2185)

Present law

    Dual thrust chamber rocket engines each having maximum 
static sea level thrust exceeding 800,000 lbs. and nozzle exit 
diameters exceeding 50 inches are classifiable under HTS 
subheading 8412.10.00 and subject to an NTR duty rate of 2% ad 
valorem. These rocket engines are liquid fuel engines designed 
to propel specific launch vehicles into space

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for dual thrust chamber 
rocket engines each having maximum static sea level thrust 
exceeding 800,000 lbs. and nozzle exit diameters exceeding 50 
inches as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                     Pigment Red 144 (Section 2186)

Present law

    Pigment Red 144 is a synthetic organic chemical used as a 
high performance pigment in ink, paint, plastic, and fiber 
applications and is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.9% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Red 144 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Pigment Orange 64 (Section 2187)

Present law

    Pigment Orange 64 is a synthetic organic chemical used as a 
high performance pigment in ink, plastic, fiber and coating 
industry, and is classifiable and subject to an NTR duty rate 
of 11.6% ad valorem under 3204.17.60.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Orange 64 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Pigment Yellow 95 (Section 2188)

Present law

    Pigment Yellow 95 is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.9% ad valorem. 
This product is a synthetic organic chemical used as a high 
performance pigment; it has FDA approval for food-contact 
packaging applications.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 95 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

                    Pigment Yellow 93 (Section 2189)

Present law

    Pigment Yellow 93 is classifiable under HTS subheading 
3204.17.04 and subject to an NTR duty rate of 6.9% ad valorem. 
This product is a synthetic organic chemical used as a high 
performance pigment with applications in ink, coating, 
plastics, and fiber industries.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for Pigment Yellow 93 as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

   (S)-N-[[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-pyrimido[5,4-b] 
 [1,4]thiazin-6-yl]ethyl-2- thienyl]carbonyl]-L-glutamic acid diethyl 
                          ester (Section 2190)

Present law

    (S)-N-[[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-
pyrimido[5,4-b] [1,4]thiazin-6-yl]ethyl-2-thienyl]carbonyl]-L-
glutamic acid diethyl ester is classifiable under HTS 
subheading 2934.90.90 and subject to an NTR duty rate of 6.9% 
ad valorem. This chemical is an intermediate that will be used 
in the production of certain anti-cancer drugs.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for (S)-N-[[5-[2-(2-Amino-
4,6,7,8-tetrahydro-4-oxo-1H-pyrimido[5,4-b] [1,4]thiazin-6- 
yl]ethyl-2-thienyl]carbonyl]-L-glutamic acid diethyl ester as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

             4-Chloropyridine hydrochloride (Section 2191)

Present law

    4-Chloropyridine hydrochloride is classifiable under HTS 
subheading 2933.39.61 and subject to an NTR duty rate of 10.7% 
ad valorem. The chemical is one of several synthetic organic 
chemical intermediates that are important in the production of 
a matrix meallaproteinase inhibitors that are in phase I 
clinical trials directed towards advanced cancer.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Chloropyridine 
hydrochloride as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

                    4-Phenoxypyridine (Section 2192)

Present law

    4-Phenoxypyridine is classifiable under HTS subheading 
2933.39.61 and subject to an NTR duty rate of 10.7% ad valorem. 
The chemical is one of several synthetic organic chemical 
intermediates that are important in the production of a matrix 
meallaproteinase inhibitors that are in phase I clinical trials 
directed towards advanced cancer.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 4-Phenoxypyridine as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

   (3S)-2,2-Dimethyl-3-thiomorpholine carboxylic acid (Section 2193)

Present law

    (3S)-2,2-Dimethyl-3-thiomorpholine carboxylic acid is 
classifiable under HTS subheading 2934.90.90 and subject to an 
NTR duty rate of 7.1% ad valorem. The chemical is one of 
several synthetic organic chemical intermediates that are 
important in the production of a matrix meallaproteinase 
inhibitors that is in phase I clinical trials directed towards 
advanced cancer.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for (3S)-2,2-Dimethyl-3-
thiomorpholine carboxylic acid as temporarily duty free until 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

      2-Amino-5-bromo-6-methyl-4(1H)-quinazolinone (Section 2194)

Present law

    2-Amino-5-bromo-6-methyl-4(1H)-quinazolinone is 
classifiable under HTS subheading 2933.59.70 and subject to an 
NTR duty rate of 10.7% ad valorem. This product is a synthetic 
organic chemical intermediate that is instrumental in producing 
THYMITAQ, a thymidylate synthase inhibitor which is currently 
in phase II clinical trials directed towards neck cancer and 
hepatoma.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-5-bromo-6-methyl-
4(1H)-quinazolinone as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone (Section 2195)

Present law

    2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone is 
classifiable under HTSsubheading 2933.59.70 and subject to an 
NTR duty rate of 10.7% ad valorem. This is a synthetic organic chemical 
intermediate that is instrumental in producing THYMITAQ, a thymidylate 
synthase inhibitor which is currently in phase II clinical trials 
directed towards neck cancer and hepatoma.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for 2-Amino-6-methyl-5-(4-
pyridinylthio)-4(1H)-quinazolinone as temporarily duty free 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

 (S)-N- [[5- [2- (2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-pyrimido [5,4b] 
    [1,4] thiazin-6-yl) ethyl] -2-thienyl]carbonyl]-L-glutamic acid 
                             (Section 2196)

Present law

    (S)-N- [[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-pyrimido 
[5,4-b] [1,4]thiazin-6-yl)ethyl] -2-thienyl]carbonyl]-L-
glutamic acid (CAS No. 177575-17-6) is classifiable under HTS 
subheading 2934.90.90 and subject to an NTR duty rate of 6.8% 
ad valorem. This product is a synthetic organic chemical that 
will be incorporated in an anti-cancer drug.

Explanation of Provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (S)-N-[[5-[2-(2-
Amino-4,6,7,8-tetrahydro-4-oxo-1H-pyrimido[5,4-b][1,4]thiazin-
6-yl)ethyl]-2-thienyl]carbonyl]-L-glutamic acid (CAS No. 
177575-17-6) as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

       2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone 
                     dihydrochloride (Section 2197)

Present law

    2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone 
dihydrochloride is classifiable under HTS subheading 2933.59.70 
and subject to an NTR duty rate of 10.7% ad valorem. This 
product is a synthetic organic chemical that will be 
incorporated in an anti-cancer drug which is currently in phase 
II clinical trials.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 2-Amino-6-methyl-5-
(4-pyridinylthio)-4(1H)-quinazolinone dihydrochloride as duty 
free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, while 
furthering important medical research. There is no appreciable 
domestic production of this product.

           3-(Acetyloxy)-2-methylbenzoic acid (Section 2198)

Present law

    3-(Acetyloxy)-2-methylbenzoic acid is classifiable under 
HTS subheading 2918.29.65 and subject to an NTR duty rate of 
10.7% ad valorem. This product is a synthetic organic chemical 
instrumental in the development of a new and more efficient 
production route for a protease inhibitor used for the 
treatment of HIV/AIDS. Currently under investigation.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 3-(Acetyloxy)-2-
methylbenzoic acid as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. 
pharmaceutical companies to continue production of an anti-
cancer drug, currently still in the trial stages, as cost-
effectively as possible. There is no appreciable domestic 
production of this product.

 [R-(R*,R*)]-1,2,3,4-Butanetetrol-1,4-dimethanesulfonate (Section 2199)

Present law

    [R-(R*,R*)]-1,2,3,4-Butanetetrol-1,4-dimethanesulfonate 
(CAS No. 1947-62-2) is classifiable under HTS subheading 
2905.49.50 and subject to an NTR duty rate of 9.6% ad valorem. 
This product is a synthetic organic chemical used in the 
production of a protease inhibitor used to treat HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for [R-(R*,R*)]-1,2,3,4-
Butanetetrol-1,4-dimethanesulfonate (CAS No. 1947-62-2) as duty 
free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highlyspecialized antiviral 
drug at a lower cost to the consumer. There is no appreciable domestic 
production of this product.

  9-[2-[[Bis [(pivaloyloxy) methoxy] phospinyl]methoxy] ethyl]adenine 
                             (Section 2200)

Present law

    9-[2-[[Bis [(pivaloyloxy) methoxy] phospinyl]methoxy] 
ethyl]adenine is classifiable under HTS subheading 2933.59.95 
and subject to an NTR duty rate of 6.8% ad valorem. This 
product is also known as Adefovir Dipivoxil, this synthetic 
organic chemical is undergoing clinical trials to receive FDA 
approval for use in treating HIV/AIDS and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 9-[2-
[[Bis[(pivaloyloxy) methoxy] phospinyl]methoxy] ethyl]adenine 
as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

                      9-[2-(R)-[[Bis[(isopropoxy-
    carbonyl)oxymethoxy]phosphinoyl]methoxy]propyl]adenine fumarate 
                             (Section 2201)

Present law

    9-[2-(R)-[[Bis[(isopropoxy-
carbonyl)oxymethoxy]phosphinoyl]methoxy]propyl]adenine fumarate 
is classifiable under HTS subheading 2933.59.95 and subject to 
an NTR duty rate of 6.8% ad valorem. This product is a 
synthetic organic chemical used as a drug called PMPA which is 
currently undergoing clinical trials for treating HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 9-[2-(R)-
[[Bis[(isopropoxy- 
carbonyl)oxymethoxy]phosphinoyl]methoxy]propyl]adenine fumarate 
as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

         (R)-9-(2-Phosphonomethoxypropyl)adenine (Section 2202)

Present law

    (R)-9-(2-Phosphonomethoxypropyl)adenine is classifiable 
under HTS subheading 2933.59.95 and subject to an NTR duty rate 
of 6.8% ad valorem. This product is a synthetic organic 
chemical used as a drug called PMPA which is currently 
undergoing clinical trials for treating HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-9-(2-
Phosphonomethoxypropyl)adenine as duty free through December 
31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

            (R)-1,3-Dioxolan-2-one, 4-methyl-(Section 2203)

Present law

    (R)-1,3-Dioxolan-2-one, 4-methyl- is classifiable under HTS 
subheading 2920.90.50 and subject to an NTR duty rate of 3.7% 
ad valorem. This product is a synthetic organic chemical used 
as a drug called PMPA which is currently undergoing clinical 
trials for the treatment of HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-1,3-Dioxolan-2-
one, 4-methyl- as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

                9-(2-Hydroxyethyl)adenine (Section 2204)

Present law

    9-(2-Hydroxyethyl)adenine is classifiable under HTS 
subheading 2933.59.95 and subject to an NTR duty rate of 6.8% 
ad valorem. This product is a synthetic organic chemical used 
in the production of Adefovir Dipivoxil, it is undergoing 
clinical trials to receive FDA approval for treating HIV/AIDS 
and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for 9-(2-
Hydroxyethyl)adenine as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

    (R)-9H-Purine-9-ethanol, 6-amino--methyl (Section 2205)

Present law

    (R)-9H-Purine-9-ethanol, 6-amino--methyl is 
classifiable under HTS subheading 2933.59.95 and subject to an 
NTR duty rate 6.8% ad valorem. This product is a synthetic 
organic chemical used as a drug called PMPA which is used for 
the treatment of HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-9H-Purine-9-
ethanol, 6-amino--methyl as duty free through December 
31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

             Chloromethyl-2-propyl carbonate (Section 2206)

Present law

    Chloromethyl-2-propyl carbonate is classifiable under HTS 
subheading 2920.90.50 and subject to an NTR duty rate 6.8% ad 
valorem. A synthetic organic chemical used as a drug called 
PMPA which is currently undergoing clinical trials for the 
treatment of HIV/AIDS.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Chloromethyl-2-propyl 
carbonate as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

             (R)-1,2-Propanediol, 3-chloro- (Section 2207)

Present law

    (R)-1,2-Propanediol, 3-chloro- is classifiable under HTS 
subheading 2905.50.60 and subject to an NTR duty rate 9.6% ad 
valorem. This is a synthetic organic chemical used in the 
production of a drug used to treat CMV retinitis--a potentially 
blinding disease common in late-stage AIDS patients.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-1,2-Propanediol, 
3-chloro- as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

        Oxirane, (S)-((triphenylmethoxy)methyl)- (Section 2208)

Present law

    Oxirane, (S)-((triphenylmethoxy)methyl)- is classifiable 
under HTS subheading 2910.90.20 and subject to an NTR duty rate 
5.7% ad valorem. This is a synthetic organic chemical used in 
the production of a drug used to treat CMV retinitis--a 
potentially blinding disease common in late-stage AIDS 
patients.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Oxirane, (S)-
((triphenylmethoxy)methyl)- as duty free through December 31, 
2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

                  Chloromethyl Pivalate (Section 2209)

Present law

    Chloromethyl pivalate is classifiable under HTS subheading 
2915.90.50 and subject to an NTR duty rate 3.8% ad valorem. It 
is a synthetic organic chemical used in the production of 
Adefovir Dipivoxil; it is undergoing clinical trials to receive 
FDA approval for treating HIV/AIDS and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for chloromethyl pivalate 
as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. This synthetic 
chemical is used in the production of a protease inhibitor used 
to treat HIV/AIDS.

   Diethyl (((p-toluenesulfonyl)oxy)methyl)phosphonate (Section 2210)

Present law

    Diethyl (((p-toluenesulfonyl)oxy)methyl)phosphonate is 
classifiable under HTS subheading 2931.00.30 and subject to an 
NTR duty rate 10.7% ad valorem. This is a synthetic organic 
chemical used in the production of Adefovir Dipivoxil; it is 
undergoing clinical trials to receive FDA approval for treating 
HIV/AIDS and Hepatitis B.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Diethyl (((p-
toluenesulfonyl)oxy)methyl)phosphonate as duty free through 
December 31, 2001.

Reason for change

    The temporary duty suspension would allow U.S. 
pharmaceutical companies to offer a highly specialized 
antiviral drug at a lower cost to the consumer. There is no 
appreciable domestic production of this product.

             (R)-9-(2-Hydroxypropyl) adenine (Section 2211)

Present law

    (R)-9-(2-Hydroxypropyl) adenine (CAS No. 14047-28-0) is 
classifiable under HTS subheading 2933.59.95 and subject to an 
NTR duty rate of 6.8% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for (R)-9-(2-
Hydroxypropyl) adenine (CAS No. 14047-28-0) as duty free 
through December 31, 1999.

Reason for change

    The temporary duty suspension would enable U.S. 
pharmaceutical companies to continue to use this chemical to 
cost-effectively produce an antiviral drug that has been proven 
highly effective in treating a primate virus closely related to 
AIDS.

                 Beta Hydroxyalkylamide (Section 2212)

Present law

    Beta Hydroxyalkylamide is classifiable under HTS subheading 
3824.90.90 and subject to an NTR duty rate of 5% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for beta 
hydroxyalkylamide (CAS No. 6334-25-4) as duty free through 
December 31, 2001.

Reason for change

    The provision would remove the duty on a chemical for which 
there is no known domestic production and would reduce costs 
for American companies.

                      Grilamid TR90 (Section 2213)

Present law

    Grilamid TR90 is classifiable under HTS subheading 
3908.90.70 and subject to an NTR duty rate of 0.4 cents/kg + 
6.7% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Grilamid TR90 (CAS 
No. 163800-66-6) as duty free through December 31, 1999.

Reason for change

    There is no known domestic production of this product.

                        IN-W4280 (Section 2214)

Present law

    IN-W4280, (2,4-dichloro-5-hydroxy-phenylhydrazine) (CAS No. 
39807-21-1) is classifiable under HTS subheading 2928.00.2500 
and subject to an NTR duty rate of 6.6% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a newsubheading for IN-W4280, (2,4-
dichloro-5-hydroxy-phenylhydrazine) (CAS No. 39807-21-1) as duty free 
through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to continue cost-effectively producing herbicides in which this 
chemical is an ingredient. There is no known domestic 
production of this chemical.

                          KL540 (Section 2215)

Present law

    Methyl-4-trifluoromethoxyphenyl-N-(chlorocarbonyl) 
carbamate, known as KL540 (CAS No. 173903-15-6) is classifiable 
under HTS subheading 2924.29.70 and subject to an NTR duty rate 
of 10.7% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Methyl-4-
trifluoromethoxyphenyl-N-(chlorocarbonyl) carbamate, known as 
KL540 (CAS No. 173903-15-6) as duty free through December 31, 
2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to cost-effectively produce insecticides which incorporate this 
chemical.

                  Methyl thioglycolate (Section 2216)

Present law

    Methyl thioglycolate (CAS No. 2365-48-2) is classifiable 
under HTS subheading 2930.90.90 and subject to an NTR duty rate 
of 3.7% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for methyl thioglycolate 
(CAS No. 2365-48-2) as duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to cost-effectively produce herbicides which incorporate this 
chemical.

                        DPX-E6758 (Section 2217)

Present law

    DPX-E6758, phenyl (4,6-dimethoxypyrimidin-2-yl) carbamate 
(CAS No. 89392-03-0) is classifiable under subheading 
2933.59.70 and subject to an NTR duty rate of 10.7% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for DPX-E6758, phenyl 
(4,6-dimethoxypyrimidin-2-yl) carbamate (CAS No. 89392-03-0) as 
duty free through December 31, 2001.

Reason for change

    The temporary duty suspension would enable U.S. companies 
to cost-effectively produce herbicides which incorporate this 
chemical.

  Ethylene, tetrafluoro copolymer with ethylene (ETFE) (Section 2218)

Present law

    Ethylene, tetrafluoro copolymer with ethylene (ETFE) is 
classifiable under HTS subheading 3904.69.50.00 and subject to 
an NTR duty rate of 0.4 cents/kg + 6.7% ad valorem.

Explanation of provision

    The provision would amend subchapter II of chapter 99 of 
the HTS by inserting a new subheading for Ethylene, tetrafluoro 
copolymer with ethylene (ETFE) with a reduced duty rate of 3.3% 
ad valorem through December 31, 2001.

Reason for change

    The temporary tariff reduction would enable U.S. companies 
to more cost-effectively use the subject chemical in wide 
applications, including coating electrical wires, insulating 
aircraft fuel tanks and hydraulic systems, and acting as a 
vapor barrier in automobiles to help comply with the Clean Air 
Act.

                   3-Mercapto-d-valine (Section 2219)

Present law

    3-Mercapto-D-valine is classifiable under HTS subheading 
2930.90.45 and subject to an NTR duty rate of 4.2% ad valorem. 
This product is used in the production of anti-cancer drugs, as 
temporarily duty free until December 31, 2001.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.32.18 for 3-Mercapto-D-
valine.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this chemical.

                      P-ethylphenol (Section 2220)

Present law

    P-Ethylphenol is classifiable under HTS subheading 
2907.19.20 and subject to an NTR duty rate of 9.4% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.31.21 for p-Ethylphenol 
as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this chemical.

                         Pantera (Section 2221)

Present law

    Pantera is classifiable under HTS subheading 2909.30.40 and 
subject to an NTR duty rate of 11.1% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.29.09 for (+/-)-
Tetrahydrofurfuryl (R)-2-[4-(6-chloroquinoxaline-2-yloxy) 
phenoxy] propanoate (referred to as Pantera) as temporarily 
duty free until December 31, 2001.

Reason for change

     The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this chemical.

                   P-Nitrobenzoic acid (Section 2222)

Present law

    P-Nitrobenzoic acid is classifiable under HTS subheading 
2916.39.45 and subject to an NTR duty rate of 11.4% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.32.94 for p-Nitrobenzoic 
acid as temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to the downstream users and consumers. 
There are currently no known domestic producers of this 
chemical and no known commercially viable substitutes for this 
product in downstream applications.

                  P-Toluenesulfonamide (Section 2223)

Present law

    P-Toluenesulfonamide is classifiable under HTS subheading 
2935.00.95 and subject to an NTR duty rate of 2.6 cents/kg 
+14.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.32.95 for p-
Toluenesulfonamide as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this product.

 Polymers of tetrafluoroethylene, hexafluoropropylene, and vinylidene 
                        fluoride (Section 2224)

Present law

    Polymers of tetrafluoroethylene, hexafluoropropylene, and 
vinylidene fluoride are classifiable under HTS subheadings 
3904.61.00 and 3904.69.50 and subject to an NTR duty rate of 
0.9 cents/kg +7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading 9902.39.04 for polymers of 
tetrafluoroethylene as temporarily duty free until December 31, 
2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this product.

  Methyl 2-[[[[[4-(dimethylamino) -6- (2,2,2-trifluoroethoxy)- 1,3,5-
    triazin-2-yl]-amino]carbonyl]-amino]sulfonyl]-3-methylbenzoate 
                  (trisulfuron methyl) (Section 2225)

Present law

    Methyl 2-[[[[[4-(dimethylamino)-6-(2,2,2-trifluoroethoxy)-
1,3,5-triazin-2-yl]- amino]carbonyl]-amino]sulfonyl]-3-
methylbenzoate is classifiable HTS subheading 3808.30.15 and 
subject to an NTR duty rate of 0.7 cents/kg + 7.8% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS to insert a new subheading 9902.38.08 for Methyl 2-[[[[[4-
(dimethylamino) -6- (2,2,2-trifluoroethoxy) -1,3,5-triazin-2-
yl]-amino]carbonyl] -amino] sulfonyl] -3-methylbenzoate in 
mixture with application adjuvants as temporarily free of duty 
until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies to reduce production costs, operate more efficiently, 
and pass savings on to downstream users and consumers. There is 
no domestic production of this product.

             Certain manufacturing equipment (Section 2226)

Present law

    This machinery, used to produce tires for large equipment 
is classifiable under the following HTS subheadings and subject 
to the following NTR duty rates:
    8462.00.00--4.4% ad valorem
    8465.10.00-- 2.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting new subheadings 9902.84.79, 9902.84.81, 
9902.84.83, 9902.84.85, 9902.84.87, 9902.84.89, and 9902.84.91 
to provide for duty free treatment of certain machinery used to 
produce the tires.

Reason for change

    The temporary duty suspension would enable U.S. companies 
which use this machinery to more cost-effectively compete in 
the large tire industry. There is no U.S. producer of the 
subject machinery in the specifications provided.

              Textured rolled glass sheets (Section 2227)

Present law

    Certain textured rolled glass sheets used to produce glass-
ceramic stovetops are classifiable under HTS subheadings 
7003.19.00 and 7003.12.00 and subject to an NTR duty rate of 
1.5 % ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain textured rolled 
glass sheets as temporarily duty free until December 31, 2001.

Reason for change

    This provision would correct competitive imbalance in the 
tariff schedule which favors foreign production of glass-
ceramic stovetops. Because of an inverted tariff, imports of 
the unfinished glass sheets are subject to a higher rate of 
duty than imports of the finished glass stovetops (which enter 
duty-free under HTS subheading 8516.60.65). There is no 
domestic production of this product.

               Certain HIV drug substances (Section 2228)

Present law

    The HIV drugs covered by this provision are classifiable 
under HTS subheading 2933.40.60 and subject to an NTR duty rate 
of 10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for these products as 
temporarily duty free until June 30, 1999.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                       Rimsulfuron (Section 2229)

Present law

    Rimsulfuron is classifiable under HTS subheading 2935.00.75 
and subject to an NTR duty rate of 10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for rimsulfuron to reduce the 
duty to 8% until December 31, 1998 and to 7.3% until December 
31, 1999, and to provide duty-free entry between January 1, 
2000 until December 31, 2000.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                 Carbamic acid (V-9069) (Section 2230)

Present law

    Carbamic acid is classifiable under HTS subheading 
2935.00.75 and subject to an NTR duty rate of 10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for carbamic acid to reduce 
the duty to 9% until December 31, 1998, to 8.3% until December 
31, 1999, and to 7.6% until December 31, 2000.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                        DPX-E9260 (Section 2231)

Present law

    DPX-E9260 is classifiable under HTS subheading 2935.00.75 
and subject to an NTR duty rate of 10.7% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for this product to reduce 
the duty to 6% until December 31, 1999 and to 5.3% until 
December 31, 2000.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                          Ziram (Section 2232)

Present law

    Ziram is classifiable under HTS subheading 3808.20.28 and 
subject to a NTR duty rate of 3.7% ad valorem. It is a chemical 
used to produce herbicides.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for ziram as temporarily 
duty-free until December 31, 2001.

Reason for change

    The temporary duty suspension would enable American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                       Ferroboron (Section 2233)

Present law

    Ferroboron to be used for manufacturing amorphous metal 
strip is classifiable under HTS subheading 7202.99.50 and 
subject to a NTR duty rate of 5% ad valorem. It is a raw 
material used in the production of amorphous metal electrical 
power distribution transformer cores.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for ferroboron to be used for 
manufacturing amorphous metal strip to temporarily reduce the 
duty to zero until December 31, 2001.

Reason for change

    The temporary duty suspension would enable American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers. There is no domestic production of this 
product.

  Acetic Acid, [[2-chloro-4-fluoro-5[(tetrahydro-3-oxo-1H,3H-[1,3,4] 
thiadiazolo[3,4-a]pyridazin-1- ylidene)amino]phenyl]thio]-,methyl ester 
                             (Section 2234)

Present law

    Acetic Acid, [[2-chloro-4-fluoro-5[(tetrahydro-3-oxo-1H,3H-
[1,3,4] thiadiazolo[3,4- a]pyridazin-1-
ylidene)amino]phenyl]thio]-,methyl ester is classifiable under 
HTS subheading 2934.90.15 and subject to an NTR duty rate of 
10.7% ad valorem. It is a chemical used in the manufacture of a 
herbicide to control broadleaf weeds, such as velvetleaf in 
corn and soybeans.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for this chemical as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

    Pentyl [2-chloro-5- (cyclohex-1-ene-1, 2-dicarboximido-4-fluoro 
                     phenoxy]acetate (Section 2235)

Present law

    Pentyl[2-chloro-5-(cyclohex-1-ene-1,2-dicarboximido-4-
fluorophenoxy]acetate is classifiable under HTS subheading 
2925.19.40 and is subject to an NTR duty rate of 11.6%. It is a 
chemical used in the manufacture of a herbicide to control 
broadleaf weeds, such as velvetleaf in corn and soybeans.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for this chemical as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

Bentazon (3-Isopropyl)-1H-2,1,3-benzothiadiazin-4(3H)-one-2,2-dioxide) 
                             (Section 2236)

Present law

    (3-Isopropyl) -1H-2, 1, 3-benzothiadiazin-4 (3H) -one-2,2-
dioxide (Bentazon) is a product used primarily for a post-
emergent herbicide in the production of corn and soybeans and 
is classifiable under HTS subheading 2934.90.11.00 and subject 
to an NTR duty rate of 6.6% ad valorem.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new heading for (3-Isopropyl)-1H-2,1,3-
benzothiadiazin-4(3H)-one-2,2-dioxide (Bentazon) as temporarily 
at a duty rate of 5% until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

 Certain high-performance loudspeakers not mounted in their enclosures 
                             (Section 2237)

Present law

    Certain high-performance loudspeakers not mounted in their 
enclosures are classifiable under HTS subheading 8518.29.80.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for certain high-performance 
loudspeakers not mounted in their enclosures as temporarily 
duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

     Parts for use in the manufacture of certain high-performance 
                      loudspeakers (Section 2238)

Present law

    Certain parts for use in the manufacture of certain high-
performance loudspeakers are classifiable under HTS subheading 
8518.90.80.

Explanation of provision

    The provision would amend chapter 99, subchapter II of the 
HTS by inserting a new subheading for parts used in the 
manufacture of certain high-performance loudspeakers as 
temporarily duty free until December 31, 2001.

Reason for change

    The temporary duty suspension would allow American 
companies using this product to reduce production costs, 
operate more efficiently, and pass savings on to the downstream 
users and consumers.

                       CHAPTER 3--EFFECTIVE DATE

                     Effective Date (Section 2301)

    This section provides that, except as otherwise indicated, 
the amendments made in subtitle A apply to goods entered or 
withdrawn from warehouse for consumption, after the date that 
is 15 days after the date of enactment of this Act.

                   Subtitle B--Other Trade Provisions

  Extension of United States insular possession program (Section 2501)

Present law

    Note 5 in Chapter 91 of the HTS currently allows producers 
of watches located in the U.S. insular possessions to benefit 
from the Production Incentive Certificate (PIC) system, which 
allows watch producers to import specified quantities of 
watches, watch movements, and some watch components duty free 
and to claim duty refunds for watches, watch movements, and 
watch parts. The benefits provided under Note 5 are based on 
the amount of wages paid to produce such watches in the insular 
possessions.
    The Note 5 program is intended to counteract the lack of 
natural resources and other competitive disadvantages of the 
insular possessions. In part because of this program, the watch 
manufacturing industry plays a significant role in the 
economies of the insular possessions, particularly the Virgin 
Islands where it provides high-skill, high-wage employment to 
approximately 200 workers.

Explanation of provision

    This section makes certain articles of fine jewelry, 
specifically jewelry articles of silver, gold or platinum under 
HTS heading 7113, produced in insular possessions, eligible for 
certain Note 5 benefits. In particular, this section adds an 
additional U.S. note 3 to chapter 71 of the HTS. Paragraph (a) 
of the new note 3 permits the inclusion of wages paid for 
jewelry production in the insular possessions as an offset to 
duties paid on watches, watch movements and parts imported into 
the United States, as currently authorized by additional U.S. 
note 5 to Chapter 91 of the HTS. Paragraph (b) of note 3 
provides that the extension of Note 5 benefits to jewelry may 
not result in any increase in the authorized amount of benefits 
established by Note 5 and paragraph (c) of note 3 provides that 
this provision shall not diminish the benefits currently 
available to watch producers under paragraph (h)(iv) of Note 5 
to chapter 91. Paragraph (d) requires the Secretary of Commerce 
and the Secretary of the Interior to issue regulations to carry 
out this provision. Paragraph (e) recognizes that the 
establishment of full-scale jewelry production in the insular 
possessions will require a transition period. Accordingly, 
paragraph (e) establishes a two-year transition period during 
which any article of jewelry described in HTS heading 7113 that 
is assembled in the Virgin Islands, Guam, or American Samoa 
shall be treated as a product of the insular possessions for 
purposes of the benefits provided in this section and for 
purposes of General Note 3(a)(iv) of the HTS. The Committee 
also intends that the Secretaries will develop and administer 
their regulations in a manner that will promote jewelry 
production in the insular possessions and recognize the need 
for a transition period.

Reason for change

    The Committee expects that this provision will increase 
employment in the insular possessions in jewelry production.

Effective date

    The amendments made by this provision apply on January 1, 
1999.

 Tariff treatment for certain components of scientific instruments and 
                        apparatus (Section 2502)

Present law

    Separate components of certain large scientific instruments 
or apparatus that are imported for assembly under those 
circumstances in which the instrument or apparatus, due to its 
size, cannot be imported in its assembled state, are subject to 
separate NTR duty rates, even though the larger scientific 
apparatus of which the components are a part would receive 
duty-free treatment, were they imported as part of a single, 
finished scientific instrument or apparatus.

Explanation of provision

    The provision would amend U.S. Note 6, subchapter X, 
chapter 98 of the HTS to clarify that separate components of 
certain large scientific instruments and apparatus would be 
provided the same tariff treatment as those large scientific 
instruments and apparatus. The term ``instruments and 
apparatus'' under subheading 9810.00.60 would include separable 
components of an instrument or apparatus that are imported for 
assembly under those circumstances in which the instrument or 
apparatus, due to its size, cannot be imported in its assembled 
state. The provision also would amend the procedures by which 
the Secretaries of Treasury and Commerce would determine 
whether or not to grant such duty-free treatment. The provision 
includes a domestic equivalency test, which provides that the 
imported item shall remain subject to duties if an instrument 
or apparatus of equivalent scientific value is being 
manufactured in the United States.

Reason for change

    The provision is needed to permit, in accordance with the 
Agreement on the Implementation of Educational, Scientific and 
Cultural Material (the Florence Agreement), duty-free treatment 
for separate components of certain large scientific instruments 
or apparatus that are imported for assembly under circumstances 
in which the instrument, due to its size, cannot be imported in 
its assembled state, even though the larger scientific 
apparatus of which the components are a part would receive 
duty-free treatment, were they imported as part of a single, 
finished scientific instrument or apparatus.
    The Committee recognizes that the scientific and financial 
benefits of U.S. participation in international scientific 
projects are of tremendous importance. Accordingly, the 
Committee expects that the Secretary of Commerce will use only 
scientific factors in determining whether a domestically 
equivalent scientific instrument or apparatus is available. 
Only in the rare case that a domestically-manufactured 
instrument or apparatus that is the exact functional equivalent 
to the imported item in the assembled state would the levy of a 
duty be justified.

Effective date

    The effective date shall be 120 days following enactment.

     Liquidation or reliquidation of certain entries (Section 2503)

Present law

    Certain entries at the ports of Los Angeles and New Orleans 
in 1986 and 1987 were liquidated not in accordance with a 
Department of Commerce antidumping determination.

Explanation of provision

    The provision would provide for reliquidation of certain 
entries made at Los Angeles and New Orleans, in accordance with 
the final decision of the Department of Commerce for shipments 
of carbon steel wire rod from Trinidad and Tobago entered 
between October 1, 1984, and December 14, 1987 (case number A-
274-001).

Reason for change

    The provision would liquidate these entries in compliance 
with the Department of Commerce rulings.

Effective date

    The provision shall apply as of the date of the enactment 
of this Act.

         Finished petroleum derivatives drawback (Section 2504)

Present law

    Section 313(p)(2)(A)(iv) of the Tariff Act of 1930 (19 
U.S.C. 1313(p)(2)(A)(iv)) provides for substitution drawback 
for finished petroleum derivatives.

Explanation of provision

    The provision would require the Secretary of the Treasury 
to convene a working group of interested parties and publish 
regulations and, if necessary, submit legislation to the 
Congress, to modify and simplify the processing of finished 
petroleum derivatives drawback claims.

Reason for change

    Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) was 
amended by the North American Free Trade Agreements (NAFTA) 
Implementation Act [P.L. 103-182] to provide special accounting 
and attribution rules for drawback on petroleum products. The 
provision was intended to allow the petroleum industry to 
account for selected petroleum products on a quantitative 
basis, relieving Customs and industry of the problem of 
``tracking molecules'' for the attribution of drawback. 
However, Customs'' interpretation of 19 U.S.C. 
1313(p)(2)(a)(iv) requires companies to track delivery of the 
actual imported petroleum in possession of the exporter. As 
such, companies are required to ``track molecules.'' The 
proposed amendment would require the Secretary of the Treasury 
to convene a working group of interested parties and publish 
regulations and, if necessary, submit legislation to the 
Congress, to modify and simplify the processing of finished 
petroleum derivatives drawback claims. The Committee believes 
that the working group should seek to fulfill the original 
intent of the Customs Modernization Act that selected petroleum 
products should be tracked on a quantitative basis for purposes 
of substitution drawback.

Effective date

    The provision would be effective as of the date of 
enactment.

        Drawback and refund on packaging material (Section 2505)

Present law

    Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) was 
amended by the North American Free Trade Agreement 
Implementation Act [P.L. 103-182] to insert a new subsection 
(q) allowing drawback of packaging materials, where the 
packaging is ``used'' by filling prior to exportation.

Explanation of provision

    The provision would amend section 313(q) of the Tariff Act 
of 1930 (19 U.S.C. 1313(q)) by inserting a new paragraph for 
drawback-eligible packaging material filled prior to 
exportation. The provision would state that packaging materials 
produced in the United States, which are used by the 
manufacturer or any other person for articles which are 
exported or destroyed, would be eligible for a drawback refund 
of 99 percent of any duty, tax, or fee imposed on the 
importation of materials used to manufacture the packaging 
materials.

Reason for change

    Under current law, individuals are ineligible to receive 
drawback on packaging materials used on items which are 
subsequently exported. The amendment would permit drawback on 
packaging materials used by a person other than the 
manufacturer of the container.

Effective date

    The provision would be effective as it applies to goods 
entered, or withdrawn from warehouse for consumption, on or 
after the 15th day after the date of enactment.

Inclusion of commercial importation data from foreign-trade zones under 
         the National Customs Automation Program (Section 2506)

Present law

    Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) 
established the National CustomsAutomation Program (NCAP), 
including a program for the automation of electronic filing. Such data 
is contained Customs Form 214.

Explanation of provision

    The provision would amend section 411 of the Tariff Act of 
1930 (19 U.S.C. 1411) relating to the NCAP, to require Customs, 
no later than January 1, 2000, to include under the program 
commercial importation data from foreign trade zones.

Reason for change

    Customs has not developed a system for the automation of 
electronic filing of importation data from foreign-trade zones. 
The provision would establish a deadline for the development 
and implementation of such a system. The Committee expects the 
Commissioner of Customs to advise the Committee by July 1, 1999 
on the progress and schedule for completing automation of 
Customs Form 214.

Effective date

    The provision would be effective as of the date of 
enactment.

  Large yachts imported for sale at United States boat shows (Section 
                                 2507)

Present law

    Large yachts are classifiable under HTS subheading 
8903.92.00 and subject to the NTR duty rate of 1.5% at the time 
of importation.

Explanation of provision

    The provision would amend the Tariff Act of 1930 by 
inserting a new section 484b to provide that large previously 
owned yachts which would otherwise be dutiable, may be imported 
without the payment of duty if imported with the intention to 
offer for sale at a boat show in the United States. Payment of 
duty would be deferred until such a large yacht is sold, not to 
exceed a period of six months.

Reason for change

    The provision would remove the disincentives under the 
current law which frequently discourage the sale of large 
previously owned yachts domestically by requiring the duty to 
be paid at the time of importation, whether the yacht is 
eventually sold or not. Removing the disincentives would allow 
for more large vessel sales, which could pump tens of thousands 
of dollars into local economies because of related expenditures 
such as the cost of a supporting crew, docking fees, boat 
repairs, and supplies.

Effective date

    The provision shall apply with respect to a large yacht 
entered into the United States after the date that is 15 days 
after the date of enactment of this Act.

 Review of protests against decisions of customs service (Section 2508)

Present law

    Section 515(a) of the Tariff Act of 1930 (19 U.S.C. 
1515(a)) provides for administrative review of protests against 
decisions by the Customs Service.

Explanation of provision

    The provision would amend section 515(a) of the Tariff Act 
of 1930 (19 U.S.C. 1515(a)) to provide that, within 30 days 
from the date an application for further review is filed, the 
appropriate Customs officer shall allow or deny the application 
and, if allowed, forward the protest to the Customs officer who 
will be conducting the further review.

Reason for change

    The provision would require timely processing by Customs 
officers of applications for further review, thus facilitating 
trade.

Effective date

    The provision would apply with respect to applications for 
further review filed on or after the date of enactment.

              Entries of NAFTA-origin goods (Section 2509)

Present law

    Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 
1520(d)), outlines the statutory authority for making a claim 
for a NAFTA preference under the NAFTA rules of origin after 
the liquidation of the entry within one year of the date of 
importation. Under the NAFTA Implementation Act [P.L. 103-182], 
merchandise processing fees (MPFs) are not imposed on NAFTA 
originating goods from Canada although they are still imposed 
on NAFTA originating goods from Mexico. To claim a NAFTA 
preference at the time of entry, an importer must possess a 
valid certificate of origin. Importers who do not possess a 
valid certificate at the time of entry often pay duties and the 
MPF on a good they know is NAFTA-eligible, with the expectation 
that the MPF will be refunded later as an excess duty when 
NAFTA-eligibility is proven. However, Customs has taken the 
position that MPFs are not refundable excess duties under 
section 520(d).
    Section 514(a) of the Tariff Act of 1930 (19 U.S.C. 
1514(a)) outlines the statutory authority for filing protests 
against decisions of the Customs Service. An importer may not 
claim a NAFTA preference before receiving a valid certificate 
of origin issued by the exporter. Many importers do not have a 
certificate of origin at the time goods are entered, and 
subsequently file post-entry claims when a valid certificate of 
origin is received. If the entry is liquidated ``as entered'' 
before receiving a certificate of origin, importers generally 
request reliquidation of the entry under section 520(d) in 
order to make the NAFTA claim. However, if the request to 
reliquidate is refused by Customs, there is no mechanism to 
receive further review of this claim. Section 514 currently 
does not allow a protest ofCustoms refusal to reliquidate an 
entry under section 520(d). In addition, Customs has taken the position 
that a Customs liquidation ``as entered'' of an entry that is made by 
an importer without a NAFTA claim is not protestable under section 514 
and that such NAFTA claims must be filed under section 520(d) of the 
Tariff Act of 1930 within one year from the date of entry.

Explanation of provision

    Section (a) of this provision would amend section 520(d) of 
the Tariff Act of 1930 (19 U.S.C. 1520(d)) to clarify that 
excess MPFs may be refunded along with excess duties if NAFTA-
eligibility is proven.
    Section (b) of this provision would amend section 514(a) of 
the Tariff Act of 1930 (19 U.S.C. 1514(a)) to ensure that if an 
importer is denied a request to reliquidate an entry under 
section 520(d) in order to make a NAFTA claim, there is a 
method for obtaining further review of Customs action on that 
claim. The provision would clarify that importers may use the 
protest procedure under section 514 to protest the denial of a 
section 520(d) request for reliquidation.

Reason for change

    Section (a) of this provision is necessary to clarify that 
MPFs may be refunded along with excess duties if NAFTA-
eligibility is proven. Section (b) is necessary to clarify that 
importers may use the protest procedures under section 514 to 
contest the denial of a request for reliquidation to allow a 
NAFTA claim under section 520(d). Both of these provisions 
would facilitate NAFTA trade.

Effective date

    The provision would be effective as it applies to goods 
entered, or withdrawn from warehouse for consumption, on or 
after the 15th day after the date of enactment.

Treatment of international travel merchandise held at Customs-approved 
                      storage rooms (Section 2510)

Present law

    Section 557(a)(1) of the Tariff Act of 1930 (19 U.S.C. 
1557(a)(1)) authorizes entry of dutiable merchandise in 
Customs-approved bonded warehouses and requires its withdrawal 
within 5 years for consumption upon payment of duties or for 
exportation.

Explanation of provision

    The provision would amend section 557(a)(1) of the Tariff 
Act of 1930 (19 U.S.C. 1557(a)(1)) to include International 
Travel Merchandise (ITM) among the merchandise which may be 
retained in a bonded warehouse for 5 years from the date of 
importation, thereby replacing the Customs Approved Storage 
Room (CASR) concept.

Reason for change

    International Travel Merchandise (ITM) consists of in-
flight merchandise sold on board international air carriers 
after departure from U.S. Customs territory. Presently, ITM is 
imported into the United States under bond and moved to CASRs, 
where merchandise is stored, repackaged and under Customs 
supervision. A Customs regulation applies a one year limit to 
goods placed in CASRs. The amendment would apply the same 5-
year time limit to ITM as currently applies to merchandise in 
bonded warehouses. This change would make ITM appropriate for 
storage in a bonded warehouse for up to five years, replacing 
the CASR concept.
    The Committee's intent is to recognize that ITM operations 
are not duty-free sales enterprises, subject to section 1555(b) 
of the Tariff Act of 1930 (19 U.S.C. 1555(b)), but a wholly 
unique business enterprise. The Committee intends that Customs 
provide, through regulations, for the application of the 
benefits, privileges, and responsibilities of other classes of 
bonded warehouses in a new ``Class 10'' category, which 
recognizes the unique features of ITM operations.

Effective date

    The provision would be effective as of the date of 
enactment.

Exception to 5-year reviews of countervailing duty or antidumping duty 
                         orders (Section 2511)

Present law

    Section 751(C) of the Tariff Act of 1930 maintains that 
five-year reviews of countervailing duty or antidumping duty 
orders must be conducted and does not exclude merchandise 
prohibited from importation into the United States because of 
trade sanctions imposed against the country in which the 
merchandise originates.

Explanation of provision

    The provision would provide that five-year reviews of 
countervailing duty or antidumping duty orders would not be 
conducted if the merchandise subject to the orders was 
prohibited from importation into the United States because of 
trade sanctions imposed against the country in which the 
merchandise originates, by amending section 751(c) of the 
Tariff Act of 1930 (19 U.S.C. 1675(c)).

Reason for change

    This provision will ensure that sunset reviews are not used 
inappropriately in those limited circumstances in which imports 
of the subject merchandise have been banned by an embargo.

Effective date

    This provision shall apply as of the date of the enactment 
of this Act.

              Water-resistant wool trousers (Section 2512)

Present law

    Water-resistant wool trousers are classifiable under HTS 
subheadings 6203.41.05 6204.61.00 and are subject to a NTR duty 
rate of 7.6% ad valorem.

Explanation of provision

    The provision would provide retroactive duty refunds to 
water-resistant wool trousers imported during 1989-94. To be 
eligible for the lower duty rates on such trousers that became 
effective in 1995, the importers' requests would need to be 
filed with the Customs Service within 180 days after the date 
of the enactment of this legislation.

Reason for change

    This provision would correct an error made when the U.S. 
tariff schedules were converted to the Harmonized Tariff 
Schedule (HTS) on January 1, 1995. As a result of this 
conversion, such trousers were no longer separately provided 
for and were classifiable under HTS provision for wool trousers 
at a higher duty rate. The correct tariff treatment was 
corrected effective January 1, 1995. This provision will allow 
importers to seek duty refunds at the lower (7.6%) duty for 
water-resistant wool trousers entered between 1989 and 1994.

Effective date

     This provision shall apply as of the date of the enactment 
of this Act.

             Reimportation of certain goods (Section 2513)

Present law

    Under current law, some products sold by catalogue 
merchants face double duties when the goods are returned to the 
manufacturer in the United States from customers abroad.

Explanation of provision

     The bill would amend subchapter I of chapter 98 of the HTS 
subheading by establishing a new HTS (similar to current HTS 
subheading 9801.00.25) which provides duty-free treatment for 
an article assessed a duty during a previous importation, if 
the article was (1) exported within 3 years after the date of 
such previous importation; (2) sold for exportation and 
exported to individuals for personal use; (3) reimported 
without having been advanced in value or improved in condition 
by any process of manufacture or other means while abroad; (4) 
reimported as personal returns from those individuals, whether 
or not consolidated with other personal returns prior to 
reimportation; and (5) reimported by or for the account of the 
person who exported the article from the United States within 1 
year of such exportation.

Reason for change

    This provision will correct a problem faced by catalogue 
merchants. Under current law, some products sold by catalogue 
merchants face double duties when the goods are returned to 
them by customers abroad. This provision would ensure that 
duties are assessed only the first time a product comes into 
this country from abroad.

Effective date

     This provision shall apply to goods that are reimported 
into the United States on or after the date that is 15 days 
after enactment.

Treatment of personal effects of participants in certain world athletic 
                         events (Section 2514)

Present law

     Under current law, U.S. Customs Service inspectors have 
the discretion to allow certain articles, not intended for sale 
or distribution, to be brought into the United States in 
connection with international athletic events on a duty-free 
basis. Persons seeking such duty-free treatment are obliged, 
however, to comply with certain filing requirements which 
significantly lengthen the entry process.

Explanation of provision

     This provision would amend chapter 99, subchapter II of 
the HTS by inserting a new subheading to provide temporary 
duty-free entry for the personal effects and athletic equipment 
of participants in, officials of, or accredited members of 
delegations to (and persons who are immediate family members of 
or servants to such persons) to certain world athletic events, 
provided such items are not intended for sale or distribution 
to the public through December 31, 2003. These events are the 
1999 International Special Olympics, the 1999 Women's World Cup 
Soccer, the 2001 International Special Olympics, the 2002 Salt 
Lake City Winter Olympics, and the 2002 Winter Paralympic 
Games. The suspension applies also to other articles, not 
intended for sale or distribution to the public, such as 
equipment and materials imported in connection with such 
events, as well as articles to be used in exhibitions depicting 
the culture of a country participating in any such event. It 
would continue to permit Customs Service inspectors to inspect 
all imports, regardless of their duty status. This section does 
not allow products to come into the United States that would be 
barred under existing law, but will help make the customs 
process as smooth as possible for upcoming international 
athletic events.
    This provision also exempts from taxes and fees all 
articles described in this provision. This provision clarifies 
that these articles shall not be free or otherwise exempt or 
excluded from routine or other inspections as may be required 
by the Customs Service.

Reason for change

    This provision would substantially reduce the Customs 
paperwork to which athletes and officials of these events and 
their families would otherwise be subjected. The Committee on 
Finance expects the relevant agencies to cooperate with the 
organizing committees of the events to facilitate the entry of 
athletes, officials, and other participants. Similar measures 
have been enacted for other international athletic competitions 
and are analogous to treatment routinely afforded by other 
countries hosting such events. The Committee notes that the 
practices and procedures developed during the Centennial 
Olympic Games in Atlanta, Georgia have been cited as having 
been highly successful and effective.

  Reliquidation of certain entries of thermal transfer multifunction 
                        machines (Section 2515)

Present law

    Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) 
provides for the filing of protests against decisions of the 
Customs Service.

Explanation of provision

    This section directs the Customs Service to liquidate or 
reliquidate certain entries of thermal transfer multifunction 
machines (liquidated or reliquidated under HTS subheading 
8517.21.00 or 9009.12.00) at the rate of duty that would have 
been applicable to such merchandise if it had been liquidated 
or reliquidated under HTS subheading 8471.60.65. Any amounts 
paid by the United States pursuant to the liquidation or 
reliquidation of these subject entries would be paid within 180 
days after or liquidation reliquidation.

Reason for change

    This provision would allow for the liquidation or 
reliquidation of thermal transfer multifunction machines at a 
lower rate of duty.

   Reliquidation of certain drawback entries and refund of drawback 
                        payments (Section 2516)

Present law

    Sections 514 and 520 of the Tariff Act of 1930, as amended 
(19 U.S.C. 1514 and 1520) provide, respectively, for the filing 
of protests against decisions of the Customs Service, and 
authority for the Secretary of Treasury to refund duties in the 
event of errors by the Customs Service in collecting such 
duties.

Explanation of provision

     The provision would direct the Customs Service to 
liquidate or reliquidate certain entries of juice within 180 
days after the date of enactment of this Act and provides that 
any amounts owed by the United States shall be refunded with 
interest.

Reason for change

    A company protested the classification of certain exports 
of orange juice for purposes of duty drawback. Certain exports 
were reliquidated by Customs after an error was acknowledged. 
The company in question, however, inadvertently omitted certain 
exports that should have been reliquidated and Customs did not 
reliquidate those entries at the lower, correct duty rate. The 
company filed a protest and CIT case, but lost because Customs 
and the CIT determined that the protest was not timely filed.

Clarification of additional U.S. note 4 to chapter 91 of the Harmonized 
          Tariff Schedule of the United States (Section 2517)

Present law

     Imported watch movements and cases must be marked 
separately with (1) the name of the country of manufacture, (2) 
the name of the manufacturer or purchaser and (3) for 
movements, the number of jewels (if any) serving as frictional 
bearings. Additional U.S. Note 4, Chapter 91, HTSUS (19 U.S.C. 
1202) prescribes the method of marking as cutting, die-sinking, 
engraving, stamping or mold-marking.

Explanation of provision

    The provision would amend chapter 91 of the HTS to clarify 
that ``stamping'' can be done by means of indelible ink.

Reason for change

    The provision ensures that the Customs Service continues to 
allow stamping by means of indelible ink as a way to satisfy 
the marking requirements for watches.

               Duty-free sales enterprises (Section 2518)

Present law

    Section 555(b) of the Tariff Act of 1930, as amended, 
requires that a duty-free sales enterprise (so-called duty-free 
store) may be located anywhere within (a) the same port of 
entry from which a purchaser of duty-free merchandise departs 
the customs territory of the United States; or (b) 25 statute 
miles from the exit point through which the purchaser of duty-
free merchandise will depart the customs territory of the 
United States.

Explanation of provision

     The provision would amend section 555 of the Tariff Act of 
1930 to allow duty-free stores to be located anywhere within a 
staffed Customs-defined port-of-entry or 25 statute miles from 
such port- of-entry, whether or not it is the same port through 
which the merchandise will be exported from the United States, 
so long as the Customs Service concludes that there is 
``reasonable assurance'' that the duty-free merchandise will be 
exported from the United States.

Reason for change

    The provision would create additional opportunities for 
duty-free stores to increase sales. Rather than limiting 
purchases by international travelers to duty-free stores in or 
within 25 miles of the port-of-entry of their departure, this 
provision would permit purchases to be made in any duty-free 
store located in or within 25 miles of a staffed Customs-
defined port-of-entry, whether or not it is the same port 
through which the purchaser will depart from the United States. 
This provision only applies, however, to the extent that the 
Customs Service determines that there is a ``reasonable 
assurance'' that the duty-free merchandise will be exported 
from the United States.

                        III. VOTES OF COMMITTEE

    In compliance with section 133 of the Legislative 
Reorganization Act of 1946, the Committee states that H.R. 
4342, as amended, was ordered favorably reported unanimously by 
voice vote on September 17, 1998.

                          IV. BUDGETARY IMPACT

    In compliance with sections 308 and 403 of the 
Congressional Budget Act of 1974, and paragraph 11(a) of rule 
XXVI of the Standing Rules of the Senate, the following letter 
has been received from the Congressional Budget Office on the 
budgetary impact of the legislation:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 25, 1998.
Hon. William V. Roth, Jr.,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the H.R. 4342, the 
Miscellaneous Trade and Technical Corrections Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Hester 
Grippando.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclsoure.

               congressional budget office cost estimate

H.R. 4342--Miscellaneous Trade and Technical Corrections Act of 1998

    Summary: H.R. 4342, the Miscellaneous Trade and Tariff Act 
of 1998, would make technical corrections to certain trade laws 
and impose duty suspensions on various imports. Included in 
H.R. 4342 are provisions that would make 13.5 inch television 
duty-free by reclassifying them as 13 inch televisions, suspend 
duties on approximately 138 intermediary products and chemicals 
imported into the United States, re-liquidate certain customs 
entries, allow the personal effects of athletes for the Winter 
Olympics and various other international athletic competitions 
to enter duty free, extend the United States insular possession 
trade program, and extend the zones for duty-free sales 
enterprises. With the exception of the reclassification of 13 
inch televisions, the Congressional Budget Office (CBO) 
estimates that all the provisions in H.R. 4342 would reduce 
governmental receipts by less than $500,000 each year, net of 
payroll and income tax offsets, and therefore would not have a 
significant impact on the budget. CBO estimates that the 
reclassification of 13 inch televisions would cost $57 million 
over the 1999-2003 period, net of payroll and income tax 
offsets. Because enacting H.R. 4342 would affect receipts, pay-
as-you-go procedures would apply.
    Basis of estimate: The estimate for the reclassification of 
13 inch televisions is based on an estimate provided by the 
U.S. International Trade Commission (ITC). CBO adjusted that 
estimate to account for a narrower range of products covered in 
the H.R. 4342 and assumed the revenue loss would grow at the 
rate of CBO total non-petroleum import projections. The 
estimates of the remaining provisions in H.R. 4342 are based on 
estimates provided by the ITC and the U.S. Customs Service and 
CBO estimates based on recent data on customs duty collections 
and information from various industries.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act sets up pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. The net changes in outlays and governmental receipts 
that are subject to pay-as-you-go procedures are shown in the 
following table. for the purposes of enforcing pay-as-you-go 
procedures, only the effects in the current year, the budget 
year, and the succeeding four years are counted.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal years, in millions of dollars--
                                                                 ---------------------------------------------------------------------------------------
                                                                   1998    1999    2000    2001    2002    2003    2004    2005    2006    2007    2008
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays..............................................                                      not applicable
Changes in receipts.............................................       0     -17      -9     -10     -10     -11     -12     -12     -13     -14     -14
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: The bill would 
impose no new intergovernmental or private sector mandates as 
defined in the Unfunded Mandates Reform Act and would impose no 
costs on state, local, or tribunal governments.
    Estimate prepared by: Federal Cost: Hester Grippando. 
Impact on State, Local, and Tribal Governments: Pepper 
Santalucia. Impact on the Private Sector: Leslie Frymier.
    Estimate approved by: Frank Sammartino, Assistant Director 
for Tax Analysis (Acting).

                 V. REGULATORY IMPACT AND OTHER MATTERS

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
legislation will not significantly regulate any individuals or 
businesses, will not impact on the personal privacy of 
individuals, and will result in no significant additional 
paperwork.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In the opinion of the Committee, it is necessary, in order 
to expedite the business of the Senate, to dispense with the 
requirements of paragraph 12 of rule XXVI of the Standing Rules 
of the Senate (relating to the showing of changes in existing 
law made by the bill as reported by the Committee).