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: Mr. REED of New York. As a mat- a year's entire crop of wool on our mar- I have received quite a number of teleter of fact, there was nothing said be- ket injuring our wool industry. With the grams, and I should like to read from cause there was nothing in the original subsidy on the production and processing one of them. The owner of the Hathbill in regard to this at all. When we of wool, such as in Uruguay and Argen, away Manufacturing Co., at New Bedwere in executive session that was the tina and other places, they are able to ford, sends one telegram. They had first time they commenced putting pres- deliver wool 20 to 25 percent below our spent $7 million or $8 million in the last sure on for something. That is not domestic price, thereby seriously hurting few years building up their plant. He unusual. We work on a bill and we our wool industry.
says in this telegram: hold full hearings, which are open to I was amazed to hear the former ma
NEW BEDFORD, MASS., July 12, 1953. the public, and they come in, but on jority leader, the gentleman from Mas- Hon. DONALD W. NICHOLSON, many bills they will come in at the very sachusetts, speak of the fine condition House Office Building, last minute when you are writing up of the domestic wool industry of the
Washington, D. C.: the bill and want all kinds of changes. United States under the Democratic ad
Understand customs simplification bill,
H. R. 5877, will come before the House MonIn many instances we do make some ministration. We are in a very serious
day morning, July 13 and that the following changes and come up with a new bill position. The production of wool in this
amendments will be offered: embodying those changes. But this, of country is down to about one-third of
1. To abolish countervailing duties to offset course, was at the last minute and I what it used to be in former years. It got foreign subsidies sponsored by EBERHARTER; understand the gentleman has a letter so serious a year ago that a group of 25 and from the Secretary of the Treasury mak- Members of the House and Senate, led by 2. To permit United States raw material to ing recommendations along this line. Senator O’Mahoney, signed a petition be processed in a foreign country and reim
Mr. JONAS of Illinois. I want to say to the Secretary of the Treasury asking ported into the United States with duty to the distinguished gentleman from him to impose a countervailing duty, figured only on the added cost of labor and
processing sponsored by KNOX. Both these · New York, we all respect, and I say which we had made an effort to have ap
amendments would be very detrimental to it and I feel I am justified in saying, plied for over 2 years. And it was not the textile industry for the following reathe judgment of the Secretary of the until May 6 of this year, under a Repub- sons: Treasury, but he should not be the lone lican administration, that we got the first 1. The countervailing duty amendment arbiter in this kind of a situation that relief through a countervailing duty. would permit a foreign country to subsidize can create such far-reaching repercus- That is the condition we are facing. importation of American cotton and presions. Is it wise to commit such arbiThat is the injury we are trying to pre
clude the establishment of countervailing
duties to offset the subsidies on the reimtrary power in the hands of one man vent by the Eberharter amendment. I portation of goods made from said cotton. just because he says the amendment is was amazed to hear the statement made
2. United States cotton could be shipped good? I am opposed to it under those about the fine condition of the wool in
to a foreign country, processed into cloth at circumstances.
dustry that was brought about under low labor costs, and the cloth could be imMr. SCOTT. Mr. Speaker, I yield 1 the Democratic administration. It is ab- ported into the United States with duty minute to the gentleman from North solutely contrary to the fact.
figures only on the labor, making it comCarolina [Mr. JONAS).
Mr. PHILLIPS. Mr. Speaker, will the pletely impossible for United States mills to
compete. I trust you will oppose both of Mr. JONAS of North Carolina. Mr. gentleman yield?
these amendments with all the strength at Speaker, I have asked for this minute in Mr. D’EWART. I yield to the gentle
your command. order to inquire about another amendman from California.
Best personal regards. ment, which I understand will be proMr. PHILLIPS. I agree completely
SEABURY STANTON, posed. It is the so-called Knox amendwith the statement of the situation re
President, Hathaway ment. Nothing has been said in the degarding wool. But let us understand
Manufacturing Co. bate so far about the Knox amendment,
that it also affects textiles, pottery, tree but I understand it is a revision of an nuts, specialty crops, and many com
NEW BEDFORD, MASS., July 12, 1953. original bill, introduced by the gentle- modities, all of which find themselves in
modities, all of which find themselves in Congressman DONALD W. NICHOLSON, man from Michigan [Mr. KNOx). The the same situation.
House Office Building, number of the original bill was H. R. Mr. D'EWART. That is true. I want,
Washington, D. C.: 4034. I would like to inquire of some however, to make this point on wool, be
Customs simplification bill, H. R. 5877.
We hope you will do everything you can member of the committee if there were cause it is such a serious example of
to defeat the Eberharter and Knox amendany hearings on the so-called Knox what has been done by the Democratic
ments of this bill and especially the Eberamendment?
administration over the years, in refus- harter amendment pertaining to counter| Mr. KNOX. In reply to the gentle
In reply to the gentle- ing to impose a countervailing duty. vailing duties to offset foreign subsidies also man from North Carolina [Mr. JONAS] And now Mr. EBERHARTER is proposing the Knox amendment pertaining to whereby may I state there had been extended another amendment today that would
United States material such as cotton prochearings in the committee on the bill, extend the time when they could impose
essed in a foreign country can be reimported H. R. 4034, which I had introduced. It these duties until a whole crop of foreign plied to cost of labor when such material
into the United States with duty only apwas discussed at considerable length in wool was put on our market, thereby has been processed. Trust you will contact the committee. Then the Treasury Debreaking the price.
other Members of Congress in behalf the partment was requested to draft the bill Mr. HALE. Mr. Speaker, will the gen- cotton textile industry. in amendment form. It also has the aptleman yield?
FRED W. STEELE. proval now of the Customs Bureau and Mr. D’EWART. I yield to the gentle
I ask unanimous consent to include 1 Treasury so far as the administration man from Maine.
or 2 of these telegrams in the RECORD, is concerned.
Mr. HALE. I am very happy to hear
Mr. Speaker. The SPEAKER. The time of the gen- the gentleman's remarks, because cer- The SPEAKER. Is there objection to tleman has expired. tainly the opinion in my district is en
the request of the gentleman from MasMr. SCOTT. Mr. Speaker, I yield 3 tirely along the lines which he has ex
sachusetts? minutes to the gentleman from Montana pressed. I regret very much that this
There was no objection. [Mr. D’EWART). matter should have arisen.
Mr. SCOTT. Mr. Speaker, I yield 2 Mr. D'EWART. Mr. Speaker, I want
Mr. D’EWART. I thank the gentle- minutes to the gentleman from Califorto join with other Members in opposing man very much.
nia [Mr. HUNTER]. the Eberharter amendment, particularly
Mr. SCOTT. Mr. Speaker, I yield 2 Mr. HUNTER. Mr. Speaker, I, too, because of the injury it would do to the minutes to the gentleman from Massa- wish to take this opportunity to express wool industry in the United States, which chusetts [Mr. NICHOLSON).
opposition to the so-called Eberharter has been so seriously injured throughout Mr. NICHOLSON. Mr. Speaker, this amendment. This affects not only wool, the years. The imposition of what is amendment affects other things besides as has been pointed out, it can affect a known as the injury test would result in cotton and wool, as was pointed out by number of other commodities, such as a year's crop of foreign wool arriving in the gentleman from California [Mr. walnuts, almonds, olive oil, and wines. this country before the Tariff Commis- PHILLIPS). It also affects the confec- Mr. COLMER. Mr. Speaker, will the sion could conclude their hearings and tionery industry. I understand that
that gentleman yield? afford the relief that is applicable under Boston, Mass., is one of the largest con- Mr. HUNTER. I yield to the gentlethe countervailing duty. We would have fectionery outlets in the country.
man from Mississippi.
Mr. COLMER. Just for an observa- Mr. Speaker, I desire to set forth at Eleventh. This amendment is viola. tion; it affects all commodities, does it this point certain objections to the Eber- tive of our whole foreign trade policy to not? harter amendment:
strengthen the economies and stabilize Mr. HUNTER. That is true. It can OBJECTIONS TO EBERHARTER AMENDMENT TO
the currencies of foreign countries. By affect all commodities faced with foreign
CUSTOMS SIMPLIFICATION BILL
encouraging countries to subsidize their competition. I feel, because of the fact that there have been absolutely no hear- Treasury draft but deleted by Treasury
First. The provision was an original exports through multiple currency rates
and other forms of currency manipulaings on this general question, that this at request of majority leaders prior to tion, we go against the announced policy is not the proper time to bring up an introduction of the bill.
of the International Monetary Fund amendment of this kind. I express op
Second. Not in bill during public hear
which has already cost us billions of dolposition to it and, as I say, there are
ings and therefore no industry appeared lars. This amendment permits a counmany agricultural commodities in Calito express opposition.
try to select any export commodity and fornia that may be adversely affected.
Third. Two industries—wool manu
apply a special currency exchange rate I yield back the balance of my time, facturers and wool growers-formally
which will permit the exporter to pay Mr. Speaker.
American tariffs and still undersell in asked for permission to appear on this Mr. COLMER. Mr. Speaker, I yield 1 amendment if committee were to con
this market. This practice is known as minute to the gentleman from Texas sider it. This sider it. This permission
selective devaluation of currencies for
permission was not [Mr. FISHER). granted.
particular commodities. For instance, Mr. FISHER. Mr. Speaker, there is
when a foreign exporter receives 5 pesos an analogy here in this situation between down in committee and did not appear present practice is to give him 7.5 pesos
Fourth. Amendment originally voted for his dollar derived from exports, the the Robinson-Patman Act and section
in H. R. 5877. when reported as clean 303 of the Tariff Act of 1930. The
instead of the basic rate of 5 pesos. If bill. Robinson-Patman Act was designed to
we put import fees on agricultural prod
Fifth. Spokesmen before Rules Com- ucts, the foreign government neutralizes protect, let us say, an independent grocer
mittee contended all amendments, infrom unfair competition where wholesale
these fees by giving the exporter, say, cluding Eberharter amendment, were prices to a competitor are below prices
10 pesos per dollar or sufficient pesos to noncontroversial. This, of course, is a by the same wholesaler to that inde- misunderstanding, as in addition to the
pay the United States importation fees pendent grocer. grocer. That protects him
and still undersell. against that sort of unfair competition. wool growers and the wool manufac
Mr. SCOTT. Mr. Speaker, I yield 1 Section 303 is a sort of Robinson-Patman turers, the Cotton Textile Manufacturers minute to the gentleman from Michi
Association and several agricultural as- gan [Mr. KNOX). provision as applied to international trade; it prohibits foreign governments sociations on the west coast are violent
Mr. KNOX. Mr. Speaker, I feel that in their opposition, from subsidizing their industries by ex
I should extend a few more words in ex
Sixth. The text of this amendment planation of the so-called Knox amendport subsidies and thereby enable the exporting competitor to sell his product has not been known to the public until ment as the question was raised by Mr.
July 13. at low prices, made possible by the export
JONAS. This amendment would provide subsidy. The Eberharter amendment
Seventh. With half the countries of that American industry which ships
the world subsidizing their exports metal products into foreign countries would nullify the protection of section 303 of the Tariff Act of 1930, and would
through various forms of currency ma- still in the ownership of the American give certain rights to foreign countries nipulation, this amendment merely le- industry, and has processing work done
galizes those practices which are now that by the Robinson-Patman Act we
upon them and returned to the United prohibit right here in our own country. against our law.
States, with the payment of duty on the It seems to me we should at least provide Eighth. The Treasury in asking for cost of processing that was done in the something like the same degree of pro- this amendment is seeking an excuse for foreign country only. When this bill tection against unfair foreign competi- its failure to enforce existing law. In was originally drafted it was wide open tion as by the Robinson-Patman Act only 1 or 2 instances, notably in the and would have taken in all of the tex
But it we provide against unfair domestic wool top case, has the Treasury invoked tile manufacturers and so on.
countervailing duties. Yet by the Treas- now contains language that provides competition. Mr. SCOTT. Mr. Speaker, I yield 1 ury's own admission many imports to just for the metal products that are sent
the United States are being subsidized, to a foreign country for processing, and minute to the gentleman from Pennsyl- and have been for several years, and yet that is the duty that would be paid. It vania [Mr. FULTON). Mr. FULTOIT. Mr. Speaker, I want to such illegal practices. the Treasury has taken no action against is spelled right out in the amendment.
Mr. SCOTT. Mr. Speaker, I yield ask one question as to the extent of the
Ninth. This amendment serves notice
such time as he may desire to the genjurisdiction of the bill. Does it impinge to the world that if they violate our
tleman from California [Mr. SCUDDER). in any way on the executive agreement laws in sufficient magnitude, that we
Mr. SCUDDER. Mr. Speaker, I deknown as the General Agreement on will amend our laws to accommodate the
sire to associate myself with others opTariffs and Trades? Is it limited to ad- foreign countries irrespective of the im
posing the committee amendment to ministrative and procedural matters or pact or injury on American producers. H. R. 5877.
This bill is referred to as the customs does it cut across any agreements that Tenth. This amendment makes the have been made under that policy? Secretary of the Treasury the economic simplification bill, but the Eberharter
amendment to be offered by the commitMr. REED of New York. No; it does czar as to which industries shall be pronot.
tected and which shall be traded off for tee would open the door to the great inMr. AUGUST H. ANDRESEN. Mr. reasons of international diplomacy. jury of American producers and manu
facturers. It would provide that injury This is true because there is no standSpeaker, will the gentleman yield?
to domestic industry must be shown beard for the injury test but it is left in Mr. FULTON. I yield.
fore countervailing duties may be levied Mr. AUGUST H. ANDRESEN. When find or not to find injury according to the sole discretion of the Treasury to
to offset foreign subsidies. the bill was before us 2 years ago I
Such a provision would open the door the whim of the Secretary. Because understood its purpose was to simplify the amendment sets neither standard, with cheap subsidized foreign products.
for flooding of our American markets our customs laws so it would be easier policy, objective nor method for the defor foreigners to ship their products to
A few years ago the almond industry termination of injury, a serious consti
in California was practically ruined this country in competition with Amer- tutional question is raised as to whether through the importation of almonds ican industry. I am somewhat confused this would not be an exercise by the that were subsidized by the exporting as I read this bill for I cannot tell executive branch of the functions of the country. This could happen to all types whether it has the same objective as the legislative branch. This is true because of manufactured articles and crops probill had 2 years ago or not.
the phrase "serious injury,” without any duced in this country. The American Mr. SCOTT. I would say that I do legislative guidepost, is too vague and farmer, manufacturer and laboring men not agree with the conclusions of the meaningless to constitute a legislative are the only taxpayers we have to supgentleman from Minnesota.
standard for administrative action, port our Government institutions. If they are to be confronted with these un- The President of the United States in in the tariff structure and that any realistic imports subsidized in many in- his state of the Union message stated change in amount of duties payable unstances with our Own American tax- that one of the aims of his administra- der it will not be large. payers' dollars, and imported into this tion was to simplify customs procedures, Perhaps the most important section country to the detriment of our own in- and this bill has been reported favorably of H. R. 5877 is section 15, which will dustries, it is only a matter of time un- by the unanimous action of the Com- . simplify and make more equitable the til such competition shall destroy our mittee on Ways and Means. The bill will formulas for appraising merchandise for American economy.
go far to remove the more serious ob- the assessment of import duties. Under While this act is called a simplifica- stacles and inconveniences which result
stacles and inconveniences which result existing law, appraisers, in determining tion act I believe that the Congress from the procedural and administrative the value of imported merchandise, are could be declared to be simple if we per- complexities of our customs laws, will directed to use foreign value or the exmitted the amendment to pass. I most contribute to the economical operation port value, whichever is higher. Foreign certainly recommend to my fellow col- of the customs service and will remove value is defined as the market value at leagues that this amendment be voted many unnecessary technical and com, the time of exportation of merchandise down.
plex procedures which tend to impose sold for home consumption. Export Mr. SCOTT. Mr. Speaker, I ask unan- unduly harsh burdens on American im- value is the market value in the foreign imous consent to extend my remarks and porters. The customs service will be country of merchandise sold for exportainclude therein a memorandum with a able to give improved service to the im- tion to the United States. If neither of number of objections to the Eberharter porting public at a reduced cost to the
porting public at a reduced cost to the these values can be ascertained, then the amendment. taxpayer.
United States value is used and if that The SPEAKER. Is there objection to H. R. 5877 is based on H. R. 5106, intro- also is unascertainable then the cost of the request of the gentleman from duced by my distinguished colleague, the production. In a few special cases the Pennsylvania?
gentleman from Ohio [Mr. JENKINS), on rate of duty is to be based upon the There was no objection.
the basis of suggestions by the Treasury American selling price. Section 15 would Mr. SCOTT. Does the gentleman from Department. The Treasury recom- eliminate the use of foreign value and Mississippi have any further requests mendations were based upon the report make export value the preferred method for time?
of a survey of the customs service by a of valuation if it can be determined; if Mr. COLMER. No, Mr. Speaker. private firm of management consult- neither export value nor United States
Mr. SCOTT. Mr. Speaker, I move the ants, and upon suggestions from the value can be determined, appraisement previous question on the resolution. customs service itself, from other Gov- would be made on comparative value be
The previous question was ordered. ernment departments and from repre- fore resort is had to constructed value. The resolution was agreed to. sentatives of importers and others.
Under the present law, a principal Mr. JENKINS. Mr. Speaker, I move
The law of customs administration source of expense and delay in administhat the House resolve itself into the
and procedure, as distinguished from the tration is the necessity of determining Committee of the Whole House on the
tariff-rate structure, enacted in the Tar- economic facts and conditions in a forState of the Union for the consideration
iff Act of 1930, has been generally re- eign country. of the bill (H. R. 5877) to amend certain
vised only once, by the Customs Admin- A report of March 31, 1953, indicates administrative provisions of the Tariff
istrative Act of 1938. Since that time that over 45,000 invoices in the hands of Act of 1930 and related laws, and for
many changes have occurred in indus- appraisers for more than 90 days were other purposes.
try and commerce which have accentu- then delayed awaiting a foreign investi
ated the need for modernizing the cus- gation and that the great majority of The motion was agreed to.
toms laws. Following the completion of these investigations are needed to deterAccordingly the House resolved itself
the management survey authorized by mine foreign value. Delays of 2 or 3 into the Committee of the Whole House
the 80th Congress, H. R. 1535, a bill to years are not uncommon while awaiting on the State of the Union for the consid
simplify customs, was introduced in the the receipt of all the necessary foreign eration of the bill H. R. 5877, the Cus
82d Congress. Extensive hearings on information. Elimination of foreign toms Simplification Act of 1953, with Mr.
that bill were held by the Committee on value and the use of export value as the CHENOWETH in the chair.
Ways and Means and a new bill H. R. preferred method will mean that value The Clerk read the title of the bill.
5505, 82d Congress, was favorably re- will depend principally upon transacBy unanimous consent, the first read
ported and passed by the House. This tions in the United States import trade ing of the bill was dispensed with.
bill was not acted upon by the Senate which should be known or should be The CHAIRMAN. Under the rule gen
before the end of the 82d Congress. readily ascertainable by importers and eral debate is to be confined to the bill
Public hearings were held by the Com- customs officers.
customs officers. This should mean less and is to continue for not to exceed 2
mittee on Ways and Means on H. R. expense to the Government and speedier hours, to be equally divided and con
5106, at which hearings a representative decisions for the importer. trolled by the gentleman from New York
of the Treasury Department and repre- Section 15 would also provide a system [Mr. REED) and the gentleman from
sentatives of interested private groups of valuation which is less likely to proTennessee [Mr. COOPER).
were heard. Written statements were duce arbitrary and fictitious results, Mr. REED of New York. Mr. Chairreceived from other Government agen- which increase
which increase uncertainty, since it man, I yield myself 15 minutes.
cies. All witnesses supported customs would provide for the use of actual comThe CHAIRMAN. The gentleman
gentleman simplification although a number of wit- missions, profits, and other deductions from New York is recognized.
nesses suggested various changes in the and not an arbitrarily limited amount, Mr. REED of New York. Mr. Chair- bill. Executive sessions on the bill were in determining United States value; it man, this is one of those highly techni- held and the bill now before you, H. R. would permit the use of actual sales incal bills that has gone through hereto- 5877, was introduced as a clean bill and stead of offers in determining export fore under a different number but embodies the committee's decisions and value, United States value, or comparaover in the Senate failed of passage on
amendments made to H. R. 5106. This tive value: it defines usual wholesale account of lack of time. We will get to bill is strongly endorsed by the Treasury quantities in such a manner as to mean the controversial amendments in due Department and is also supported by the quantities in which the greater agtime.
the Bureau of the Budget and other in- gregate quantity of the merchandise is Mr. Chairman, H. R. 5877 is entitled terested Government agencies.
sold, whereas under the present law the "Customs Simplification Act of 1953." The present bill does not contain any usual wholesale quantity is the quantity As the title indicates, the bill has for its of the features of H. R. 1535, 82d Con- in which the largest number of individprimary purpose the simplification of gress, which were deleted by the com- ual transactions occur. customs procedures. It is designed to mittee in drafting H. R. 5505, 82d Con- This section of the bill will eliminate remove from the statutes many obsolete gress. Testimony before this committee unnecessary expense and delay in the customs requirements and to give the and the Senate Finance Committee dur- appraisement of merchandise, thereby Treasury Department the legislative au- ing the 82d Congress on the previous achieving greater administrative effithorization necessary to make possible bills was carefully considered in drafting ciency, and will provide a system for all the institution of modern procedures in the present bill. I would like to empha- customs valuations which will be comthe administration of customs law. size that H. R. 5877 proposes no change mercially realistic and equitable.
Section 4. of H. R. 5877 will repeal but the result aimed at is the same as valuation penalties; to permit correction special marking requirements now con- under present law. The section is by customs officers of admitted errors tained in the Tariff Act which have designed to get rid of an archaic statu- without appeal to the courts. The bill proved unusually burdensome to import- tory provision for a declaration of gold also contains a number of other pro-, ers. The paragraphs which would be coin parities which is almost entirely use- visions of lesser individual importance amended by section 4 refer to specific less today, to restate the rules for con- but which are cumulatively of major imitems to be imported and-except for verson in terms of international finanical portance. paragraph 28—specify in detail that the relationships as they exist in the world The sections of this bill which I have articles enumerated shall have, when im- today and to simplify the day-to-day touched upon, when taken together with ported, the name of the maker or pur- computations of customs duties. The the other provisions of the bill, will in the chaser as well as the country of origin section maintains the principle that opinion of the Committee on Ways and conspicuously and indelibly marked on commercial rates of exchange should Means, go far to remove the more serious the outside of the article. Section 4 govern the calculation of customs duties. obstacles to trade which are contained in would repeal entirely these marking pro- Since 1894, the Secretary of the Treas. the administrative as distinguished from visions. The amendment is, however, ury has been required to proclaim quar- the tariff-rate provisions of our tariff act, restricted to special marking require- terly the value of the standard coins in and to provide for more economical and ments and the articles would still be sub- circulation of the various nations of the efficient operation of the customs service ject to the general marking provisions of world, based upon estimates of the Di- in the interests of the public than is presthe Tariff Act so that they will have to rector of the Mint. These proclamations ently possible. I believe that the comindicate to the ultimate purchaser the now serve little function since customs mittee has resolved the few controversial country of origin of imported merchan- duties are rarely based upon these values, points to the maximum extent consistent dise. The committee decided that special Section 22 would repeal that requirement with an effective revision of customs promarking is not needed for consumer in- and would provide in lieu thereof that cedure, and I strongly urge the prompt formation in view of the general mark- the Secretary of the Treasury publish passage of this long overdue legislation. ing provisions. We were advised that its a list of par values which he finds are I think from what I have already read requirement often interferes with the maintained by foreign countries for their to the House you can see the vast task efforts of United States medical men and respective currencies. These par values that has confronted the committee. This scientists to get needed instruments for would be used whenever for customs pur- overhaul has been needed for a long time. medical purposes and for research, and poses it is necessary to convert into an Those who have traveled very extenwith trade and commerce generally. amount in the United States currency sively or who have done very much busi
Section 4 also contains a new provision any amount expressed in foreign cur- ness, either in exporting or importing, which will permit the Secretary of the rency, except when there are one or realize the difficulties we face in this Treasury, in his discretion, to grant relief more rates of exchange which vary by great field. in hardship cases under the general more than 5 percent from the par value. I think great effort is being made marking requirement. If articles are not In cases in which there is no par value abroad between the countries to simplify properly marked before importation and or there are rates of exchange which the customs procedure which are most the failure to mark was not due to any vary by more than 5 percent from the annoying to people who are traveling intent to avoid compliance with the par value the rate used would be that abroad. But this has been a difficult marking laws and the articles cannot certified daily by the Federal Reserve task. The burden of simplification legisbe marked after importation except at Bank of New York based upon market lation was assigned to the author of the an expense which is economically pro- rates in New York. Section 22 would the bill, the gentleman from Ohio [Mr. hibitive, the Secretary could permit the permit the recognition of multiple rates JENKINS). He held fine and exhaustive importation. At the present time, the of exchange and would permit multiple hearings. He had many customs experts Treasury Department is without au- certification by the Federal Reserve before him. There has been quite a bit of thority to grant relief to innocent im- Bank consistent with the decision of the controversy in regard to the Eberharter porters in such situations.
Supreme Court of the United States in amendment. Hearings were held on May Another important provision of the bill Barr against United States.
27, 28, 29, 1953. On June 1, 1953, I reis section 2 which will facilitate the Section 13 of H. R. 5877 relates to ad- ceived a letter from the Assistant Secremodernization of the internal account- ministrative exemptions. The purpose
The purpose tary of the Treasury, a very able, a very ing procedures of the Bureau of Cus- of these provisions is to avoid waste of distinguished lawyer, H. Chapman Rose, toms, by removing certain restrictive sta- customs manpower in determining and
who is well known in the legal profession tutory provisions relating to accounting collecting trivial amounts of money throughout this country. He said: and recordkeeping functions. These Section 13 would amend section 321 of
JUNE 1, 1953. statutory functions are vested mainly in the Tariff Act to, first, increase from $1 Hon. DANIEL A. REED, the comptrollers of customs and require to $3 the amount of the difference be
Chairman, Ways and Means Committee, too much detailed review and checking. tween estimated or tentatively assessed
House of Representatives, As a result, repetitive accounts have to duties and actual duties which may be
Washington, D. C.
MY DEAR MR. REED: During the course of my be maintained and certain accounting disregarded; second, permit free entry testimony before the Committee on Ways and processes which are performed in the of bona fide gifts from persons in for- Means on H. R. 5106, the customs simplificaoffices of the collectors of customs have eign countries to persons in the United tion bill, I indicated that the Treasury Deto be duplicated. These statutes are so States up to $10; and third, allow persons partment had additional suggestions for restrictive that they preclude some of to bring with them articles up to $10 in customs simplification legislation that were the procedures which should be a part of value for their personal use. The limita
not included in H. R. 5106, and Mr. EBERa modern program of internal audit. tion of $1 in the present law on free
HARTER requested that they be made avail
able to the committee. This section will not eliminate any neces- entry in other cases has not been
I was referring to a proposal that has been sary controls and safeguards over cus- changed. Moreover, the Secretary would the subject of prior discussion which would toms accounting. Customs will continue be enabled to reduce any of these (a) add an injury requirement to section to have an internal audit program, but amounts if he finds it necessary
303 of the Tariff Act regarding the imposition it will be more flexible and useful, as protect the revenue. The basic traveler of countervailing duties, and (b) transfer well as less costly and the Comptroller exemptions contained in paragraph 1798
to the Tariff Commission the jurisdiction to General will continue to provide the ex- of the Tariff Act would not be affected by antidumping statute and under section 303.
determine injury in cases arising under the ‘ternal audit program, including a check these administrative exemptions.
However, in view of the President's request upon the effectiveness of the customs There are a number of other sections in to the Congress for a Commission to review accounting system and internal audit H. R. 5877 which are of comparable im- foreign economic policy, the Treasury does and control.
portance to some of those I have just not wish to suggest (b) above for present Another important section of H. R. outlined. Among these are provisions to
consideration by your committee. Provisions 5877 is section 22 relating to the con- eliminate time-consuming and cumber
transferring the Treasury's present injury
finding determination under the Antidumpversion of currency for customs pur- some procedures in connection with
ing Act to the Tariff Commission and giving poses. The section will make one sub- warehouse transfers; to repeal the pro- the Tariff Commission the authority to destantial change in the existing procedure vision in the present law for under- termine injury in countervailing duty cases. are appropriate for consideration by the pro
Mr. COOPER. Mr. Chairman, I yield in its turn, cannot be found, then the posed Commission in connection with a remyself 23 minutes.
cost-of-production basis would still be view of the proper role of the Tariff com
Mr. Chairman, it will be recalled that used, as under present law. mission and other agencies of the Govern.
a customs simplification bill very similar The bill also defines certain terms in ment in this field.
For the present, the Treasury Department to the pending bill passed the House in the value sections so as to make the value believes that the one addition to H. R. 5106 the last Congress. It was not acted upon
It was not acted upon determinations more realistic, and clariwhich it would now recommend is an amend- in the Senate.
fy and make more certain the concepts ment to section 303 of the Tariff Act provid- The administrative and procedural which the terms are intended to cover. ing that countervailing duties should be im
provisions of our customs laws have been The Treasury Department advised our posed only where injury exists or is threatened to a domestic industry. The Depart
generally revised only once since the en- Committee that the adoption of the ment suggests consideration of the enclosed
actment of the Tariff Act of 1930, and changes proposed in the basis of valuadraft amendment to section 303 of the Tariff that was by the Customs Administrative tion provisions of the customs laws would Act which would accomplish this purpose. Act of 1938. Since that time, there have make a major contribution toward simI am sending a copy of this letter and its been many changes in technology, in- plification and efficient administration enclosure to Mr. EBERHARTER and Mr. dustry, and commerce, which have made of the customs laws. JENKINS.
very acute the need for another general Section 2 repeals certain obsolete acVery truly yours, H. CHAPMAN ROSE,
revision. The pending bill covers ad- counting provisions which at present Assistant Secretary of the Treasury. ministrative and procedural provisions cause unnecessary
cause unnecessary duplication in aconly, and does not make any change in counting procedures which lend little or Here is the proposal:
tariff classifications or rates of duty. nothing to the protection of customs Section 303 of the Tariff Act of 1930 (U. S. By far the most important provision revenue, while unnecessarily consuming 1946 edition, title 19, sec. 1303) is amended in the pending bill is section 15, relating the time of customs employees. The by inserting at the end of the first sentence:
to the basis of valuation for the assess- amendments proposed will permit the "Such countervailing duty shall be im
ment of duties. Under existing law, the establishment of modern internal acposed only if the Secretary of the Treasury shall determine, after such investigation as
value of imported merchandise for the counting procedures. he deems necessary, that an industry in the purpose of assessing duty in most cases Section 3 has to do with the rate of United States is being or is likely to be in
is either foreign value or export value, duty which is applicable to imported jured, or is prevented or retarded from be- whichever is higher. The bill would merchandise.
merchandise. Confusion at present exing established, by reason of the importation eliminate the foreign value basis of val- ists as a result of a series of Customs into the United States of articles or mer- uation and substitute the export value Court decisions. An example of the preschandise of the class or kind in respect of
basis. Under present law, customs offi- ent situation is the case of a suspension which the bounty or grant is paid or be
cials have found it very difficult, expen- of duty on an article by Congress or the stowed.”
sive and time consuming in determining termination of a suspension. Section 3 That practically sums up the Eberhar- foreign value. It is not uncommon for provides that the merchandise is subter amendment. As you notice, the let- 2 or 3 years to elapse before all neces- ject to the rate of duty in effect, in genter is dated June 1, and the hearings sary information is secured in order to eral, when the documents on the imwere closed, and this was just before we set the foreign value. By making export ported merchandise and the duties rehad gone into an executive session on value the preferred method of valuation, quired to be paid have been deposited this bill. That is true of some of the it will be possible to eliminate much of with appropriate customs officials. other amendments. As I said before, it the delay and expense involved under Section 4 repeals certain special markis very difficult in a technical bill like present law, where foreign value has to ing provisions which are required in the this to bear witness, and then at the be determined.
case of surgical instruments, knives, last minute have people come in and say In general, export value is defined scissors, coal tar products, and so forth, here is something that ought to be under the bill as being the market value which require that the articles imported changed or here is an amendment that or price, at the time of exportation to must bear the name of the maker or purought to be put into the bill. And you the United States of the merchandise, at chaser, as well as the country of origin, never do get through. Several times we which such or similar merchandise is on the outside. These special markings have gone back and introduced clean freely sold or offered for sale in the are not needed for consumer informabills trying to accomplish these purposes. country of exportation in the usual
the usual tion, and they often interfere with the What I would like to see done is if we can wholesale quantities for exportation to efforts of doctors and scientists to imhave this technical bill sent to the other the United States.
port instruments which they need for body with such perfections or imperfec- In addition to the use of foreign value medicinal purposes and for research, as tions as the House may work its will on or export value, whichever is higher, well as interfere with trade and comso that we can pass this bill which has under present law, the United States merce generally. been plaguing the country for such a value is used if neither foreign nor ex- The general marking requirements of long time. I would like to see it go over port value can be ascertained, and if the Tariñt Act would still be applicable. to the other body in time to dispose of it, the United States value cannot be ascer- Under these requirements, the country of and have it enacted into a law.
tained, then the cost-of-production basis origin of the imported articles must be Mr. Chairman, that concludes my is used. In addition, there are a few indicated on the articles. statement now. Later if a further ex- special cases, such as chemicals and Section 5 repeals a provision of present planation is required on this Eberharter rubber footwear, where the American law requiring that lead and zinc-bearing amendment, I will be very glad to give selling price is used.
ores be transported from ports of entry it or have the gentleman from Pennsyl- The bill makes no change in the Amer- to sampling or smelting establishments vania [Mr. EBERHARTER] explain it to us ican selling price basis for valuation. for sampling and analysis. Such a reas well as the gentleman from Ohio [Mr. The bill retains the use of United States quirement results in unwarranted inJENKINS). I congratulate the gentleman value as a basis of valuation, with some convenience and expense to importers. from Ohio [Mr. JENKINS), for the very amendments to make this basis more re- Sampling and analysis, under the bill, excellent and arduous work which he alistic, by using actual commissions, would be in accordance with regulations and the committee members have put in profits, and certain deductions, rather issued by the Secretary of the Treasury. on this bill. The House will work its will than arbitrary amounts as under present The Treasury Department feels that this on this bill, but I invite your cooperation law.
change will be in the interest of the imin the perfecting and completing of legis- A new basis for valuation, comparative porting public and also be more economlation of this rather difficult character. value, is established by the bill. This ical and efficient for the Bureau of CusWe have a long, hard program ahead of basis is to be used if neither export value toms. us. We are sending the bills to the Rules nor United States value can be deter- Section 6 repeals certain obsolete proCommittee as rapidly as we can so that mined, and is designed to establish a basis visions. all those who have an interest in the leg- which can be relatively easily determined Section 7 eliminates unnecessary inislation that is coming on will have an by looking to merchandise which is com- vestigations, paperwork and search of opportunity to have that legislation con- parable to the merchandise which is be- records in order to
records in order to establish trivial sidered and passed.
ing appraised. If comparative value, amounts of drawback of duties or tax