Section 62. Jewelry clasps.-This provision creates a separate category for jewelry clasps of precious metal and provides a rate of 24 percent ad valorem (instead of 55 percent). This restores the treatment applicable under the old tariff structure to clasps of gold or platinum. Other clasps (valued over 20 cents a dozen) would continue to be dutiable at 55 percent.

In addition, this section clarifies the duty treatment of handbag and similar frames incorporating clasps by treating them under the clasp category at a rate of 17.5 percent. This is the estimated weighted average of the rates which applied to these frames under the prior tariff structure, depending upon the metal of which they are made. Section 63. Slide fastener parts. This provision excludes zipper tape without teeth (i.e., tape with cord sewn along one edge to receive the zipper teeth) from the slide fastener and parts category (dutiable at 50 percent) and permits such tape to be classified as a textile product (dutiable at 20 percent). This restores the duty treatment which applied to these tapes without teeth under the old tariff structure (but see TD56111 (107)).

In addition, it specifically includes in the slide fastener and parts category zipper tape in continuous length with teeth attached, thereby reinforcing the principle of a recent customs ruling (TD55937).

Section 64. Dried wreaths.-This amendment creates a separate category for bouquets, boutonnieres, corsages, wreaths and similar articles made of natural plant materials which have only been dried or bleached and provides a rate of 10 percent ad valorem (instead of 25.5 percent). This restores the duty treatment which was available for these products under the old tariff structure.

Section 65. Electric toothbrushes.-This section insures that electric toothbrushes and other mechanical combs and brushes which are toilet articles will be classified as toilet articles. In the case of electric toothbrushes this restores the old compound rate of 0.8 cent each plus 17 percent ad valorem (instead of 12 percent as an electromechanical appliance).

Section 66. Fireworks. This provision reduces the rate on fireworks (including firecrackers) to 12 cents per pound including the weight of all covering, packing material, and wrappings (from 32 percent, estimated weighted average). In the case of display type fireworks this restores the duty treatment which formerly applied under the old tariff structure.

Section 67. Rubber and plastics film, strips, sheets, and plates.This section reduces the dimensions provided in the headnote description for rubber and plastics films, strips, sheets, and plates to 15 inches wide and 18 inches long (from 21 inches wide and 51 inches long). This will reduce the duty on (1) cellulose acetate film and sheets; (2) synthetic rubber sheets; (3) polyvinyl chloride film and sheets; and (4) casein sheets. It will increase the duty on small sizes of acrylic resin sheets. This has the effect of substantially restoring the duty treatment which was available under the old tariff structure.

Section 68. Colostomy bags. This provision includes colostomy bags in a specific category dutiable at 12.5 percent. This restores the duty treatment which was provided under the old tariff structure for such bags.

Section 69. Fly ribbons.-This amendment creates a separate category for ribbon flycatchers and provides a rate of 14 percent (instead of 17.5 percent). This recognizes the volume of trade in this article

and restores the duty treatment which was available under the old tariff structure.

Section 70. Sausage casings.-This provision reduces the rate on sausage casings to 12.5 percent ad valorem (from 16 percent) the estimated weighted average of the various rates which applied under the old tariff structure. This rate also reflects a recent court decision (CD 2352) which held casings made of pig bungs with viscon liners to be dutiable at 10 percent under the old tariff structure. The new rate reflects the weight of trade in low-duty products.

Section 71. Articles of hair not specially provided for. This provision creates a new "catchall" category for articles of hair, not specially provided for, and provides a rate of 14 percent (the old rate on articles of human hair, not specifically provided for).

Section 72. Articles assembled abroad.-Under the present tariff structure U.S. products may be sent abroad for assembly and returned duty free if they have not been advanced in value or improved in condition abroad by any means other than the act of assembly. [Emphasis added.] Thus, a U.S. motor could be exported for installation in a foreign motorboat and when the boat is imported with the U.S. motor, the portion of the value attributable to the motor would be duty free.

This bill (1) clarifies the type of articles which may be exported for assembly and then reimported; and (2) enlarges the class of activities which may be performed abroad without subjecting the U.S. product to duty.

Specifically, this amendment provides that the free entry provision of the new schedules would apply to articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported, in condition ready for assembly without further fabrication, for the purpose of such assembly and return to the United States; (b) have not lost their physical indentity in such articles by change in form, shape, or otherwise; and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating, and painting.

Section 73. Coconut, palm kernel, and palm oil. This provision corrects an inadvertent mistake by which the temporary rate applicable to coconut, palm kernel, and palm oil (which applies until July 1, 1966), was not conformed to reflect the last trade concession reduction. This section substitutes 14 percent ad valorem (for 17.5 percent) and thereby conforms the temporary rate to the ad valorem rate in the permanent provision.

Section 74. Import restrictions Section 22 of Agricultural Adjustment Act. This provision makes two changes in the exceptions to the import restrictions proclaimed under section 22 of the Agricultural Adjustment Act.

The first change would permit articles (other than cotton) having an aggregate value not over $10 to be imported for research notwithstanding the proclamation.

The other change would eliminate the weight limitation (100) pounds) in the exception for trade fairs (or research), and thus would permit greater quantities to be imported for these purposes (but in this case, only if the Secretary of Agriculture consents in writing).

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COMMITTEE ON FINANCE

RUSSELL B. LONG, Louisiana, Chairman

TOM VAIL, Chief Counsel