The proponents of this legislation are undertaking to meet a problem which they believe can only be met by the proposed bill. I do not question their aims and their desire to meet what they deem to be a real problem. It is my feeling, however, that the language of this bill could be construed by the courts far beyond the wishes of the proponents. For that reason I believe the bill should be rejected. BASIL L. WHITENER. О 90TH CONGRESS HOUSE OF REPRESENTATIVES 2d Session { REPORT No. 1817 FREE ENTRY OF CELLULOSIC PLASTICS MATERIALS USED IN ARTIFICIAL KIDNEY MACHINES JULY 29, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. MILLS, from the Committee on Ways and Means, REPORT [To accompany H.R. 13419] The Committee on Ways and Means, to whom was referred the bill (H.R. 13419) to amend the Tariff Schedules of the United States to permit the free entry of certain cellophane membrane, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. The amendments are as follows: Strike out all after the enacting clause and insert: That (a) part 4 of schedule 8 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by inserting after item 854.10 the following new item: (b) Headnote 1 of such part 4 is amended by striking out "and 852.20" and inserting in lieu thereof ", 852.20, and 854.20". (c) The amendments made by subsections (a) and (b) shall apply with respect to articles entered or withdrawn from warehouse for consumption on or after the date of the enactment of this Act. Amend the title so as to read: A bill to amend the Tariff Schedules of the United States to permit the free entry of cellulosic plastics materials imported for use in artificial kidney machines. PURPOSE The purpose of H.R. 13419, as reported, is to provide for the dutyfree importation of cellulosic plastics materials imported for use in artificial kidney machines. GENERAL STATEMENT The cellulosic plastics materials which would be permitted dutyfree entry under H.R. 13419, as reported, is a semipermeable regenerated cellulose in the form of sheets or film and other shapes and forms such as are used in kidney machines. This cellulosic membrane material is used in kidney machines to remove poisonous matters from the human body that normally are removed by healthy kidneys. Your committee is informed that presently the most efficient cellulosic materials for such use in kidney machines are currently available only under the trade name of Cuprophane from Germany. Further, it has been indicated that although American producers are attempting to make a product which is comparable to the German product, they as yet have been unable to produce one commercially. Imports of this cellulosic plastics material are usually in the form of sheets and film and are now dutiable under item 771.30 of the Tariff Schedules at the rate of duty of 20 percent ad valorem. This rate will be reduced in four additional stages to 11 percent ad valorem pursuant to the Kennedy round trade agreement. Given the present applicable rate of duty on imports of this material, and its importance to the some 800 chronic kidney patients receiving treatment by dialysis, your committee believes that elimination of the duty, under certain specified conditions, is in order. This is particularly true in the absence of a domestically produced product of equal efficiency. It should be noted, however, that cellulosic plastics materials have many uses. Therefore, your committee has amended the bill, as introduced, to provide duty-free entry only when such materials are imported for use in artificial kidney machines or apparatus by a hospital or by a patient pursuant to prescription of a physician. An informative report on the bill was received from the Tariff Commission, and favorable reports were received from interested executive branch agencies. For the above reasons, your committee is unanimous in recommending enactment of H.R. 13419, as amended. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman): TARIFF SCHEDULES OF THE UNITED STATES ANNOTATED * SCHEDULE 8.-SPECIAL CLASSIFICATION PROVISIONS * Item Item 854. 10 854.20 Articles PART 4.-IMPORTATIONS OF RELIGIOUS, EDUCATIONAL, SCIEN- Part 4 headnotes: 1. Except as provided in items 850.50 [and 852.20], 852.20, and 854.20, or as otherwise provided for in this headnote, the articles covered by this part must be exclusively for the use of the institutions involved, and not for distribution, sale, or other commercial use within 5 years after being entered. Articles admitted under any items in this part may be transferred from an institution specified with respect to such articles to another such institution, or may be exported or destroyed under customs supervision, without duty liability being incurred. However, if any such article (other than an article provided for in item 850.50 or 852.20) is transferred other than as provided by the preceding sentence, or is used for commercial purposes, within 5 years after being entered, the institution for which such article was entered shall promptly notify customs officers at the port of entry and shall be liable for the payment of duty on such article in an amount determined on the basis of its condition as imported and the rate applicable to it (determined without regard to this part) when entered. If, with a view to a transfer (other than a transfer permitted by the second sentence) or the use for commercial purposes of an instrument or apparatus, a repair component admitted under item 851.65 has been assembled into such instrument or apparatus, such component shall, for purposes of the preceding sentence, be treated as a separate article. 1 1 |