Tariff revision would affect chemical trade - C&EN Global Enterprise

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Tariff revision would affect chemical trade Proposed revision of classification system is being weighed by Tariff Commission and industry representatives

of products listed under schedule IV, over 100 countries, including most of part 9, of the Tariff Schedules of the the major western European nations, United States (TSUS) and rearrange classify their tariffs under the BTN them under section VI, chapter 32, of system. The U.S. is one of the very few the Brussels Tariff Nomenclature major trading nations that does not. (BTN). The commission was to have comRepresentatives of the plastics in- pleted its study by last September, but dustry and of companies that produce the deadline was extended one year bechemical intermediates have met with cause the task was just too big and Tariff Commission officials previously. complicated. It involves taking about Still others will follow. All have a vital 6500 different tariff classification Tomorrow, statistics-laden representa- stake in one of the biggest and most items, contained in eight TSUS schedtives from the dyes and pigments in- difficult tasks that the Tariff Commis- ules, each with as many as 15 parts dustry will meet in Washington, D.C., sion has ever undertaken—a massive and dozens of subparts, and rearrangwith Dr. Aimison Jonnard, chief of the revision of U.S. tariff schedules. ing them into only about 1100 individIn July 1972 President Nixon asked ual classification items under BTN. Tariff Commission's chemical division, and his staff to wrestle with an ex- the commission to study possibilities Although BTN has fewer individual tremely complex problem. They will for converting the U.S. tariff schedules classification items than does TSUS, it try to figure out how to take thousands to the BTN classification system. Well is divided into 21 major sections and 99 chapters, each roughly corresponding to a specific product line. The Tariff Commission now is holdHere's how chemical imports are classified ing a series of hearings throughout the under present U£. tariff schedules... country on the proposed tariff revision and has been issuing draft BTN chapSCHEDULE IV CHEMICALS AND RELATED PRODUCTS ters prior to each hearing. Each draft chapter indicates how individual TSUS Benzenoid chemicals and products Part 8 Surface-active agents; soaps and Part items will be listed under the BTN synthetic detergents Chemical elements, inorganic and Part Part 9 Dyeing and tanning products; pigorganic compounds, and mixtures system and shows the tariff rate that ments and pigmentlike materials; Drugs and related products Part applies to each item. inks, paints, and related products Synthetic resins and plastic matePart American businessmen generally Part 10 Petroleum, natural gas, and prodrials; rubber have been apathetic toward the conucts derived therefrom Flavoring extracts; essential oils Part version study. The few hearings that Part 11 Fertilizers and fertilizer materials Glue, gelatin, and related products Part have been held so far have been poorly Part 12 Explosives Aromatic and odoriferous subPart attended. Part 13 Fatty substances, camphor, chars stances; perfumery, cosmetics, The chemical industry is lucky. and carbons, isotopes, waxes, and toilet preparations and other products Hearings on BTN chapters 28 through 40, which cover chemicals, will not be held until Aug. 12 in New York City. ... And here's how they would be classified Thus chemical industry representatives will have more time than most to preunder the Brussels Tariff Nomenclature system pare for their sessions. Meanwhile, SECTION VI PRODUCTS OF THE 'CHEMICAL AND ALLIED INDUSTRIES through informal discussions like the one that will take place tomorrow, Dr. Chap. 28 Inorganic chemicals; organic and lar articles, modeling pastes, inorganic compounds of preand dental waxes Jonnard and the staff of the Tariff. cious metals, of rare-earth metChap. 35 Albuminoidal substances; glues Commission's chemical division are als, of radioactive elements and Chap. 36 a Explosives; pyrotechnic products; doing all they can to keep the chemical of isotopes matches; pyrophoric alloys; cerindustry informed and give it the opChap. 29 Organic chemicals tain combustible preparations portunity to make suggestions even bea Chap. 30 Pharmaceutical products Chap. 37 Photographic and cinematofore the draft chapters are released. Chap. 31 Fertilizers graphic goods During these informal conferences, Chap. 32 Tanning and dyeing extracts; Chap. 38 Miscellaneous chemical products product-oriented task forces designated tannins and their derivatives; dyes, colors, paints, and varby various industry trade associations SECTION VII ARTIFICIAL RESINS AND nishes; putty, fillers and stopPLASTIC MATERIALS, CELLULOSE and the commission's chemical division pings; inks ESTERS AND ETHERS, AND ARTICLES discuss how specific TSUS items can THEREOF; RUBBER, SYNTHETIC Chap. 33 Essential oils and resinoids; perbest be assigned to specific BTN cateRUBBER, FACTICE, AND ARTICLES fumery, cosmetics, and toilet gories. Actual converted tariff rates, preparations THEREOF however, aren't discussed because they Chap. 39 Artificial resins and plastic mateChap. 34 Soap, organic surface-active rials, cellulose esters and must remain confidential until the agents, washing preparations, ethers; articles thereof lubricating preparations, artificial draft BTN chapters are released. waxes, polishing and scouring Chap. 40 Rubber, synthetic rubber, facThe converted tariff rates are bound preparations, candles and simitice, and articles thereof to be controversial. a These chapters will not be considered during the chemical hearings to be held by the Tariff The proposed switch from TSUS to Commission on Aug. 12, 1974. BTN is designed to change the tariff classification system, not the rates of 16

C&EN April 22, 1974

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