Public Hearings on Establishment of a Tariff-Rate Quota on Imported Tobacco

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Public Hearings on Establishment of a Tariff-Rate Quota on

Imported Tobacco

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of public hearings.

-----------------------------------------------------------------------

SUMMARY: Pursuant to section 125(f) of the Trade Act of 1974, the

Office of the United States Trade Representative has scheduled a public

hearing on the potential establishment of a tariff-rate quota on

certain imported tobaccos.

DATES: The public hearing will be held on Tuesday, April 4, 1995.

FOR FURTHER INFORMATION CONTACT: For procedural questions concerning

public hearings and/or public comments, contact Carolyn Frank,

Executive Secretary, Trade Policy Staff Committee (TPSC) (202-395-

9557). All other questions should be directed to Thomas Hushek, Senior

Economist for Agricultural Affairs (202-395-6127).

SUPPLEMENTARY INFORMATION: On June 28, 1994, the United States notified

the Secretariat of the General Agreement on Tariffs and Trade 1947

(GATT 1947) of its proposal to modify certain concessions with respect

to tobacco, in accordance with the provisions and procedures of Article

XXVIII, paragraph 5 of the GATT 1947. (This notification was provided

again on February 27, 1995 to the Secretariat of the World Trade

Organization, in accordance with Article XXVIII of the GATT 1994). In

July 1994, the United States entered into negotiations and

consultations pursuant to Article XXVIII with qualifying GATT

contracting parties (initial negotiating rights holders and principal

and substantial suppliers).

Pursuant to Article XXVIII, the United States proposes to establish

a tariff-rate quota on nine current tariff categories of the Harmonized

Tariff Schedule of the United States (HTSUS) (2401.10.60, 2401.20.30,

2401.20.80, 2401.30.30, 2401.30.60, 2401.30.90, 2403.10.00, 2403.91.40,

and 2403.99.00) to cover flue-cured, burley and other light air-cured

tobaccos that are imported to be used in the manufacture of cigarettes

for domestic consumption. The in-quota tariff rates would be equal to

the Uruguay Round concession rates. The over-quota tariff rates would

be as high as 350 percent ad valorem.

Other tobaccos, including oriental and cigar type tobaccos, would

not be subject to the quantitative limitations of the tariff-rate

quota. Imported flue-cured, burley and other light air-cured tobaccos

used to manufacture products other than cigarettes would also not be

subject to the tariff-rate quota.

Imported flue-cured, burley and other light air-cured tobaccos used

to manufacture exported cigarettes would be eligible for manufacturing

duty-drawback on an identity-preserved basis. Under section 422 of the

Uruguay Round Agreements Act, upon proclamation of the tariff-rate

quota, section 1106(a) of the Omnibus Budget and Reconciliation Act of

1993 (7 U.S.C. 1314i), which concerns domestic marketing assessments

for imported tobacco, would not be in effect for any calendar year

other than 1994.

Section 125(c) of the Trade Act of 1974 (19 U.S.C. 2135) provides

that whenever the United States, acting in pursuance of any of its

rights or obligations under any trade agreement entered into pursuant

to that Act, section 350 of the Tariff Act 1930 or section 201 of the

Trade Expansion Act of 1962, withdraws or modifies any obligation with

respect to the trade of any foreign country or instrumentality, the

President is authorized to proclaim increased duties or other import

restrictions, for such periods as he deems necessary or appropriate, in

order to exercise the rights or fulfill the obligations of the United

States. As amended by section 421 of the Uruguay Round Agreements Act,

section 125(c) authorizes the President to proclaim increased duties on

the nine tariff categories of tobacco of up to 350% above the rates

existing on January 1, 1975.

Before taking any action under section 125 to increase duties, the

President is required by section 125(f) to provide for public hearings

at which time interested [[Page 13492]] persons will be given a

reasonable opportunity to be present, to produce evidence and to be

heard.

NOTICE OF PUBLIC HEARINGS: Pursuant to section 125(f) of the Trade Act

of 1974 (19 U.S.C. 2135), the Trade Policy Staff Committee (TPSC),

chaired by the Office of the United States Trade Representative, has

scheduled a public hearing beginning at 10:00 a.m., on Tuesday, April

4, 1995, at the White House Conference Center, 726 Jackson Place,

Washington, DC.

REQUESTS TO PRESENT ORAL TESTIMONY: Parties wishing to testify orally

at the hearings must provide written notification of their intention by

noon, March 24, 1995 to Carolyn Frank, Executive Secretary, Trade

Policy Staff Committee, Office of the United States Trade

Representative, Room 501, 600 17th Street N.W., Washington, D.C. The

notification should include (1) the name of the person presenting the

testimony, their address and telephone number; (2) the organization or

company they are representing, if appropriate; and (3) a brief summary

of their presentation, including the product(s), with HTSUS numbers.

Those parties presenting oral testimony must also submit a written

brief, in 20 copies by noon, March 24, 1995. Remarks at the hearing

should be limited to no more than five minutes to allow for possible

questions from the Chairman and the interagency panel. Participants

should provide 30 typed copies of their oral statement at the time of

the hearings. Any confidential material must be clearly marked as such

on the cover page (or letter) and succeeding pages. Such submissions

must be accompanied by a nonconfidential summary thereof.

WRITTEN BRIEFS: Those persons not wishing to participate in the hearing

may submit written comments, in twenty typed copies, no later than

noon, March 29, 1995 to Carolyn Frank, Executive Secretary, Trade

Policy Staff Committee, Office of the United States Trade

Representative, Room 501, 600 17th Street, N.W., Washington, D.C.

Comments should state clearly the position taken and describe with

particularity the evidence supporting that position. Any business

confidential material must be clearly marked as such on the cover page

(or letter) and succeeding pages. Such submissions must be accompanied

by a nonconfidential summary thereof.

Nonconfidential submissions will be available for public inspection

at the USTR Reading Room. An appointment to review the file may be made

by calling Brenda Webb (202-395-6186).

Frederick L. Montgomery,

Chairman, Trade Policy Staff Committee.

[FR Doc. 95-6055 Filed 3-10-95; 8:45 am]

BILLING CODE 3190-01-M