Fats, oils, and waxes, and oil-bearing materials: Concessions granted in reciprocal trade agreements by the United States

See footnotes at end of table.

Tariff

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Fats, oils, and waxes, and oil-bearing materials: Concessions granted in reciprocal trade agreements by the United States-Continued

1 Excise tax is at the rate applicable to the oil from which derived.

2 Reduced from 10 cents per gallon by Presidential proclamation, Apr. 1, 1933.

3 Reduced from 6 cents per pound by Presidential proclamation, Apr. 1, 1933.

4 This tax is imposed on the first domestic processing of the oil whether imported as such or produced in this country from imported material.
Should the United States cease to impose an exise tax, the duty would revert to 1 cent per pound but not in excess thereof.

The oils derived from these materials are subject to processing taxes of 3 cents per pound (see footnote 4 above) except coconut oil derived from copra other than from the Phil

ippines, which is subject to a processing tax of 5 cents per pound.

Source: United States Tariff Commission.

WHY INCREASED USE OF DOMESTIC OILS IN OLEO WILL NOT INCREASE PRODUCERS INCOME

1. Ready market in shortening and salad oils.

2. America on net deficit basis.

3. As domestic oils fill the oleo reservoir, the levels in the shortening and salad oils vats are lowered and must be raised.

The only sources are increased domestic production and importation. (a) Small prospect of increasing domestic production of either cottonseed, soybean, peanut, or flaxseed without permanently subsidizing their production.

(b) Great opportunities for increasing imports.

(c) These cheaper priced imported fats will control the prices of domestic fats.

(d) Result-It will make no difference to the producers or the crushers for what purpose the oil is sold, it will not bring a higher price in one use than in another.

Where the foreign fats excluded on their supply limited, expansion of uses might be quite effective.

At present subsidized production is offsetting the deficit caused by limited imports due to the war.

(See table A "Competitive oils and fats situation.")

TABLE A.-The competitive fats and oils situation in the United States

2 Does not include 81,000,000 pounds reexports.

3 Minus sign denotes decrease and plus sign an increase in stocks during each year.

Source: Based on data in tables 2 to 10 inclusive. NOTE. The data in these fats and oils tables differ from those previously published by the Federation, as a result of revisions in basic data received from official sources and also because of the following: (a) Stocks of creamery butter have been included whereas they were not considered previously; (b) adjustments have been made for quantities of imported hempseed and rapeseed which were not crushed for oil, where as in previous tables it had been assumed that all of these imported seeds were used for oil, and (c) production of lard on farms and in factories not reported to the Bureau of the Census has been included, but omitted in previous tables due to lack of adequate estimates. Total apparent consumption agrees within 2 percent with figures compiled by the Bureau of Agricultural Economics.

62295-44-17

TABLE B.-Imports for consumption of oil seeds and raw materials

3 Included in "Other oil seeds."

Increase from 1938 to 1939 largely comprised of perilla seed.

The oil content of the raw materials for the products shown in order are 48, 63, 36, 48, 46, 23, 44, 38, 16, 16, 63, and 38 percent.

Source: U. S. Department of Commerce, Bureau of Census, Bureau of Foreign and Domestic Commerce Bureau of Agricultural Economics.

TABLE C.-Imports for consumption of foreign animal and fish fats, oils and greases, and vegetable oils and fats

TABLE C.-Imports for consumption of foreign animal and fish fats, oils and greases, and vegetable oils and fats—Continued

1 Includes such oils as babassu, castor, hemp seed, poppy seed, corn, oiticica, and tea seed (corn most important).

Source: Animal and Vegetable Fats and Oils, Bureau of the Census, U. S. Department of Commerce, and Bureau of Agricultural Economics.

TABLE 1.-Total consumption of the principal fats in the United States

In addition to pure vegetable shortening, this item also includes cooking fat compounds containing animal fats.

Excludes 1,120,000 pounds delivered to United Nations under lend-lease.

Quantity withdrawn tax-paid, plus an estimated 1,500,000 pounds withdrawn free from tax for use in Federal institutions in 1942; 2,000,000 pounds in 1943. Total rounded to even millions.

'Preliminary.

Source: Bureau of Agricultural Economics, U. S. Department of Agriculture.