Additional information submitted by-Continued National Institute of Oilseeds Products: Statement of Jasper Bell before the House Ways and Means Committee, on H. R. 1535, National Labor-Management Council on Foreign Trade Policy: Legislative history. Text of H. R. 3711, Eighty-second Congress, 1st session_ National Retail Dry Goods Association: Statement of George Hansen, National Trade Wool Association: Telegram from Hugh Monro, New York Board of Trade, Inc., New York, N. Y.: Letter from Charles M. Macauley, chairman, drug, chemical, and allied trades Nichols & Co., Inc.: Table showing imports into United States for consumption of wool and hair tops from Argentina, Uruguay, and Letter from Oscar B. Ryder, Chairman, United States Tariff Commission, April 28, 1952, transmitting memorandum re preferential exchange rates in Argentina and Uruguay and the effect of United States imports of wool tops--- Press release relating to correspondence with John S. Graham, Assistant Secretary of the Treasury, February 27, 1952 - - Pacific Coast Renderers Association, Emeryville, Calif.: Resolution Pocketbook Workers Union, AFL: Statement of Samuel Harris Princeton University, Princeton, N. J.: Letter from Lawrence Heyl, 38 53 54 R. F. Downing & Co., Inc., New York, N. Y.: Letter from W. H. Van 57 Sandoz Chemical Works, Inc., New York, N. Y.: Letter from E. 35 State Department: Letter from Jack K. McFall, Assistant Secretary, 1952 Treasury Department: Prepared statement of Hon. John S. Graham, Assistant Secre- tarv Statistics on stocks of wool in Argentina and Uruguav Underwear Institute, New York, N. Y.: Statement of Roy A. Cheney, 293 37 51 25 24, 32 U. S. Customs Inspectors' Association, Port of New York: Letter from John J. Murphy, president, to chairman, April 29, 1952_- Williams Clarke Co., Wilmington, Calif.: Letter from James Clarke 48 CUSTOMS SIMPLIFICATION ACT TUESDAY, APRIL 22, 1952 UNITED STATES SENATE, The committee met, pursuant to call, at 10 a. m., in room 312, Senate Office Building, Senator Clyde R. Hoey presiding. Present: Senators Hoey, Butler of Nebraska, and Williams. Also present: Elizabeth B. Springer, chief clerk; and Serge N. Benson, professional staff member. Senator HOEY. The committee will please come to order. The hearings today are on the customs simplification bill, H. R. 5505. That bill will be inserted in the record at this point: (The bill referred to, H. R. 5505, is as follows:) [H. R. 5505, 82d Cong., 1st sess.] AN ACT To amend certain administrative provisions of the Tariff Act of 1930 and related laws, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SHORT TITLE AND EFFECTIVE DATE SECTION 1. This Act may be cited as the "Customs Simplification Act of 1951" and shall be effective, except as otherwise specially provided for, on and after the thirtieth day following the date of its enactment. TABLE OF CONTENTS Sec. 1. Short title and effective date. Sec. 2. Antidumping and countervailing duties. Sec. 3. Repeal of special marking requirements. Sec. 4. Repeal of certain obsolete reciprocal provisions. Sec. 5. American goods returned. Sec. 6. Free entry provisions for travelers. Sec. 7. Free entry for noncommercial exhibitions. Sec. 8. Temporary free entry for samples and other articles under bond. Sec. 9. Supplies and equipment for vessels and aircraft. Sec. 10. Drawback on export of imports not ordered. Sec. 11. Administrative exemptions. Sec. 12. International traffic and rescue work. Sec. 13. Value. Sec. 14. Signing and delivery of manifests. Sec. 15. Certified invoices and informal entries. Sec. 16. Verification of documents. Sec. 17. Amendment of entries and duties on undervaluation. Sec. 18. Commingled merchandise. Sec. 19. Correction of errors and mistakes. Sec. 20. Conversion of currency. Sec. 21. Customs supervision. Sec. 22. Conversion of processing taxes to import taxes. Sec. 23. Saving clause. Sec. 24. Relation to G. A. T. T. ANTIDUMPING AND COUNTERVAILING DUTIES SEC. 2. (a) Section 201 (a) of the Antidumping Act, 1921 (U. S. C., 1946 edition, title 19, sec. 160 (a)), is amended by inserting "or retarded" after "is prevented." 1 (b) Section 202 (a) of the Antidumping Act, 1921 (U. S. C., 1946 edition, title 19, sec. 161 (a)), is amended by changing the period at the end thereof to a comma and adding "less an amount equal to any countervailing duty imposed on the merchandise by reason of a payment or bestowal of a bounty or grant." (c) Section 303 of the Tariff Act of 1930 (U. S. C., 1946 edition, title 19, sec. 1303), is amended by inserting after the words "corporation shall" in the first sentence the words "through multiple official rates of its exchange in terms of United States dollars, or otherwise," and by changing the period at the end of the first sentence to a comma and adding "less an amount equal to any special dumping duty imposed on the merchandise. Such countervailing duty shall be imposed only if the Secretary of the Treasury shall determine, after such investigation as he deems necessary, that an industry in the United States is being or is likely to be injured, or is prevented or retarded from being established, by reason of the importation into the United States of articles or merchandise of the class or kind in respect of which the bounty or grant is paid or bestowed. The exemption of any exported article or merchandise from a duty or tax imposed on like articles or merchandise when destined for consumption in the country of origin or exportation, or the refunding of such a duty or tax, shall not be deemed to constitute a payment or bestowal of a bounty or grant within the meaning of this section." REPEAL OF SPECIAL MARKING REQUIREMENTS SEC. 3. (a) Paragraphs 28, 354, 355, 357, 358, 359, 360, 361, and 1553 of the Tariff Act of 1930 (U. S. C., 1946 edition, title 19, sec. 1001, pars, 28, 354, 355, 357, 358, 359, 360, 361, and 1553) are amended as follows: Paragraph 28 is amended by deleting from subparagrah (f) "the immediate container and". Paragraph 354 is amended by deleting the second proviso. Paragraphs 355, 357, 358, 359, 360, and 361 are amended by deleting the provisos. Paragraph 1553 is amended by deleting both provisos. (b) Section 2934 of the Revised Statutes (U. S. C., 1946 edition, title 19, sec. 134) is repealed. REPEAL OF CERTAIN OBSOLETE RECIPROCAL PROVISIONS SEC. 4. (a) Paragraph 812 of the Tariff Act of 1930 (U. S. C., 1946 edition, title 19, sec. 1001, par. 812) is amended by deleting the proviso relating to the importation of spirits in certain containers. (b) Section 320 of the Tariff Act of 1930 (U. S. C., 1946 edition, title 19, sec. 1320), relating to reciprocal agreements covering advertising matter, is repealed. AMERICAN GOODS RETURNED SEC. 5. Paragraph 1615 (f) of the Tariff Act of 1930, as amended (U. S. C., 1946 edition, title 19, sec. 1201, par. 1615 (f)), is further amended by adding at the end thereof the following new sentences: "When because of the destruction of customs records or for other cause it is impracticable to establish whether drawback was allowed, or to determine the amount of drawback allowed, on a reimported article except under subparagraph (e), there shall be assessed thereon an amount of duty equal to the estimated drawback and internal-revenue tax which would be allowable or refundable if the imported merchandise used in the manufacture or production of the reimported article were dutiable or taxable at the rate applicable to such merchandise on the date of importation, but in no case more than the duty and tax that would apply if the article were originally imported. In order to facilitate the ascertainment and collection of the duty provided for in this subparagraph, the Secretary of the Treasury is authorized to ascertain and specify the amounts of duty equal to drawback or internal-revenue tax which shall be applied to articles or classes or kinds of articles, and to exempt from the assessment of duty articles or classes or kinds of articles excepted under subparagraph (e) with respect to which the collection of such duty involves expense and inconvenience to the Government which is disproportionate to the probable amount of such duty." FREE ENTRY PROVISIONS FOR TRAVELERS SEC. 6. Paragraph 1798 of the Tariff Act of 1930, as amended (U. S. C., 1946 edition, title 19, sec. 1201, par. 1798), is further amended to read as follows: "PAR. 1798. (a) Professional books, implements, and tools of trade, occupation, or employment, when imported by or for the account of any person arriving in the United States by whom or for whose account they were taken abroad. "(b) In the case of any person arriving in the United States who is not a returning resident thereof "(1) wearing apparel, articles of personal adornment, toilet articles, and similar personal effects; all the foregoing, if actually owned by and in the possession of such person abroad at the time of or prior to his departure for the United States, and if appropriate for his own personal use and intended only for such use and not for any other person nor for sale; "(2) automobiles, trailers, aircraft, motorcycles, bicycles, baby carriages, boats, horse-drawn conveyances, horses, and similar means of transportation, and the usual equipment accompanying the foregoing; any of the foregoing imported in connection with the arrival of such person and to be used in the United States only for the transportation of such person, his family and guests, and such incidental carriage of articles as may be appropriate to his personal use of the conveyance; and "(3) not exceeding $200 in value of articles accompanying such a person who is in transit to a place outside United States customs territory and who will take the articles with him to such place. "(c) In the case of any person arriving in the United States who is a returning resident thereof— “(1) all personal and household effects taken abroad by him or for his account and brought back by him or for his account; and "(2) articles (including not more than one wine gallon of alcoholic beverages and not more than one hundred cigars) acquired abroad as an incident of the journey from which he is returning, for his personal or household use, but not imported for the account of any other person nor intended for sale, if declared in accordance with regulations of the Secretary of the Treasury, up to but not exceeding in aggregate value "(A) $200, if such person arrives from a contiguous country which maintains a free zone or free port (sec subparagraph (d)), or arrives from any other country after having remained beyond the territorial limits of the United States for a period of not less than forty-eight hours, and in either case has not claimed an exemption under this subdivision (A) within the thirty days immediately preceding his arrival; and "(B) $300 in addition, if such person has remained beyond the territorial limits of the United States for a period of not less than twelve days and has not claimed an exemption under this subdivision (B) within the six months immediately preceding his arrival. "(d) In the case of persons arriving from a contiguous country which maintains a free zone or free port, if the Secretary of the Treasury deems it necessary in the public interest and to facilitate enforcement of the requirement that the exemption shall apply only to articles acquired as an incident of the foreign journey, he shall prescribe by special regulation or instruction, the application of which may be restricted to one or more ports of entry, that the exemption authorized by subdivision (2) (A) of subparagraph (c) shall be allowed only to residents who have remained beyond the territorial limits of the United States for not less than a specified period, not to exceed twenty-four hours, and after the expiration of ninety days after the date of such regulation or instruction allowance of the said exemption shall be subject to the limitation so prescribed. "(e) All articles exempted by this paragraph from the payment of duty shall be exempt also from the payment of any internal-revenue tax imposed on or by reason of importation. "(f) If any jewelry or similar articles of personal adornment having a value of $300 or more which have been exempted from duty under subdivision (1) of subparagraph (b) or any article which has been exempted from duty under subdivision (2) (B) of subparagraph (c) is sold within three years after the date of importation, or if any article which has been exempted from duty under subdivision (2) of subparagraph (b) is sold within one year after the date of importation, without prior payment to the United States of the duty which would have been payable at the time of entry if the article had been entered without the benefit of this paragraph, such article, or its value (to be recovered from the importer), shall be subject to forfeiture. A sale pursuant to a judicial order or in liquidation of the estate of a decedent shall not be subject to the provisions of this subparagraph. "(g) The Secretary of the Treasury shall prescribe methods and regulations for carrying out the provisions of this paragraph. No exemption provided for in this paragraph shall be applied to any article which is not declared in accordance with such regulations." FREE ENTRY FOR NONCOMMERCIAL EXHIBITIONS SEC. 7. (a) Paragraph 1809 of the Tariff Act of 1930 (U. S. C., 1946 edition, title 19, sec. 1201, par. 1809) is amended by inserting "within five years after the date of entry hereunder" after "used contrary to this provision" and by inserting "within such five-year period" after "at any time." (b) The conditions of any bond in force on the effective date of this Acu in respect of articles previously entered under the provisions of paragraph 1809 or the corresponding provisions of any Tariff Act prior to the Tariff Act of 1930 shall be deemed to have been satisfied upon the effective date of this Act or upon the expiration of five years from the date such articles were entered, whichever is later, except with respect to any violation which has occurred or which shall have occurred before such time. TEMPORARY FREE ENTRY FOR SAMPLES AND OTHER ARTICLES UNDER BOND SEC. 8. (a) (1) The part of section 308 of the Tariff Act of 1930, as amended (U. S. C., 1946 edition, title 19, sec. 1308), preceding the numbered items is amended to read as follows: "The following articles, when not imported for sale or for sale on approval, may be admitted into the United States under such rules and regulations as the Secretary of the Treasury may prescribe, without the payment of duty, under bond for their exportation within six months from the date of importation, which period, in the discretion of the Secretary of the Treasury, may be extended, upon application, for one or more further periods which, when added to the initial six months, shall not exceed a total of three years :". (2) This amendment shall be effective with respect to articles imported before or after this section becomes effective but shall not be effective with respect to any article for which the six-month period, or a lawful extension thereof, has expired before the effective date of this amendment. (b) Section 308 (5) of the Tariff Act of 1930, as amended (U. S. C., 1946 edition, title 19, sec. 1308 (5)), is further amended to read as follows: "(5) Automobiles, motorcycles, bicycles, airplanes, airships, balloons, boats, racing shells, and similar vehicle and craft, and horses, and the usual equipment of the foregoing; all the foregoing which are brought temporarily into the United States by nonresidents for the purpose of taking part in races or other specific contests;". SUPPLIES AND EQUIPMENT FOR VESSELS AND AIRCRAFT SEC. 9. (a) Sections 309 (a) and 309 (b) of the Tariff Act of 1930, as amended (U. S. C., 1946 edition, title 19, sec. 1309 (a), (b)), relating to articles for certain vessels and aircraft are further amended to read as follows: "(a) EXEMPTION FROM DUTIES AND TAXES.-Articles of foreign or domestic origin may be withdrawn, under such regulations as the Secretary of the Treasury may prescribe, from any customs bonded warehouse or from continuous customs custody elsewhere than in a bonded warehouse, free of duty and internal-revenue tax, or from any internal-revenue bonded warehouse, from any brewery or from any winery premises or bonded premises for the storage of wine, free of internal-revenue tax "(1) for supplies (not including equipment) of (A) vessels of war or public aircraft of the United States, (B) vessels of the United States em. ployed in the fisheries or in the whaling business, or actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions, or (C), |