SEC. 26. Section 623 of the Tariff Act of 1930 (U. S. C., 1934 edition, title 19, sec. 1623) is hereby amended to read as follows:

"SEC. 623. BONDS AND OTHER SECURITY

"(a) In any case in which bond or other security is not specifically required by law, the Secretary of the Treasury may by regulation or specific instruction require, or authorize collectors of customs to require, such bonds or other security as he, or they, may deem necessary for the protection of the revenue or to assure compliance with any provision of law, regulation, or instruction which the Secretary of the Treasury or the Customs Service may be authorized to enforce.

"(b) Whenever a bond is required or authorized by a law, regulation, or instruction which the Secretary of the Treasury or the Customs Service is authorized to enforce, the Secretary of the Treasury may—

"(1) Except as otherwise specifically provided by law, prescribe the conditions and form of such bond, and fix the amount of penalty thereof, whether for the payment of liquidated damages or of a penal sum: Provided, That when a consolidated bond authorized by paragraph 4 of this subsection is taken, the Secretary of the Treasury may fix the penalty of such bond without regard to any other provision of law, regulation, or instruction.

"(2) Provide for the approval of the sureties on such bond, without regard to any general provision of law.

"(3) Authorize the execution of a term bond the conditions of which shall extend to and cover similar cases of importations over such period of time, not to exceed one year, or such longer period as he may fix when in his opinion special circumstances existing in a particular instance require such longer period.

"(4) Authorize, to the extent that he may deem necessary, the taking of a consolidated bond (single entry or term), in lieu of separate bonds to assure compliance with two or more provisions of law, regulations, or instructions which the Secretary of the Treasury or the Customs Service is authorized to enforce. A consolidated bond taken pursuant to the authority contained in this subsection shall have the same force and effect in respect of every provision of law, regulation, or instruction for the purposes for which it is required as though separate bonds had been taken to assure compliance with each such provision.

"(c) The Secretary of the Treasury may authorize the cancellation of any bond provided for in this section, or of any charge that may have been made against such bond, in the event of a breach of any condition of the bond, upon the payment of such lesser amount or penalty or upon such other terms and conditions as he may deem sufficient.

"(d) No condition in any bond taken to assure compliance with any law, regulation, or instruction which the Secretary of the Treasury or the Customs Service is authorized to enforce shall be held invalid on the ground that such condition is not specified in the law, regulation, or instruction authorizing or requiring the taking of such bond.

"(e) The Secretary of the Treasury is authorized to permit the deposit of money or obligations of the United States, in such amount and upon such conditions as he may by regulation prescribe, in lieu of any bond required or authorized by a law, regulation, or instruction which the Secretary of the Treasury or the Customs Service is authorized to enforce."

SEC. 27. (a) Paragraph 1101 of the Tariff Act of 1930 (U. S. C., 1934 edition, title 19, sec. 1001, par. 1101) is hereby amended by redesignating subparagraph (b) thereof as subparagraph (c), by changing the colon at the end of the first proviso in subparagraph (a) thereof to a period, and deleting all the matter in such subparagraph (a) following such colon, and by inserting in such paragraph a new subparagraph (b), to read as follows:

"(b) Any of the foregoing may be entered or withdrawn from warehouse without the payment of duty by a manufacturer, processor, or dealer upon the filing of a bond to insure that any wool or hair entered or withdrawn thereunder shall be used only in the manufacture of press cloth, camel's hair belting, knit or felt boots, heavy fulled lumbermen's socks, rugs, carpets, or any other floor coverings. A manufacturer, processor, or dealer may be relieved of liability under his bond with respect to any wool or hair so entered or withdrawn which is transferred in its imported or any other form to another manufacturer, processor, or dealer who has filed a bond to insure that the merchandise so transferred shall be used only in the manufacture of the above-enumerated articles. If any wool

or hair so entered, withdrawn, or transferred under bond is used or transferred for use in its imported or any other form in any manner otherwise than in the manufacture of the articles enumerated above, there shall be levied, collected, and paid on the merchandise so used or transferred in violation of the bond the regular duties which would apply to such merchandise if imported in its condition at the time of such use or transfer. Such duties shall be paid by the manufacturer, processor, or dealer whose bond is charged with the wool or hair at the time of such use or transfer; but such duties shall not be levied or collected on any merchandise resulting in the usual course of manufacture of such enumerated manufactured articles if it shall be established to the satisfaction of the Secretary of the Treasury that such merchandise cannot be used (with or without further preparation) in the manufacture of such enumerated articles except at an expense which is commercially prohibitive of such use, nor on noils resulting in the usual course of manufacture of such enumerated articles, which noils shall be subject to duty at the rate of 14 cents per pound when used or transferred for use in any manner otherwise than in the manufacture of such enumerated articles. When any wool or hair which has been entered or withdrawn under bond as provided for in this subparagraph is used or transferred for use, in its imported or any other form, otherwise than in the manufacture of the above-enumerated articles and prior to such use or transfer there shall have been combined or mixed with such wool or hair any other merchandise, the whole or the combination or mixture shall be presumed to be composed of wool or hair entered or withdrawn under bond, as provided for in this subparagraph, unless the manufacturer, processor, or dealer liable for the payment of the duties shall establish the quantity of bonded wool or hair in such combination or mixture. Every manufacturer, processor, or dealer who has given a bond pursuant to the provisions of this subparagraph shall report any use or transfer of merchandise in violation of the terms of his bond, within thirty days after such use or transfer, to the collector of customs in whose district the bond is filed; and for failure to so report, such manufacturer, processor, or dealer shall be liable to a penalty equal to the value of the merchandise so used or transferred at the time and place of such use or transfer. Such penalty shall be in addition to the duties above provided for. The Secretary of the Treasury is authorized to prescribe such regulations and the form, conditions, and amounts of such bonds as may be necessary to carry into effect the provisions of this subparagraph, and to fix the time for the submission of any proof required by such regulations.'

(b) The provisions of paragraph 1101 of the Tariff Act of 1930, as amended by this Act, with respect to wool or hair entered under bond for use in the manufacture of articles enumerated in such paragraph, shall apply with respect to wool or hair imported prior to the effective date of this Act, as well as with respect to wool or hair thereafter imported.

SEC. 28. Section 314 of the Tariff Act of 1930 (U. S. C., 1934 edition, title 19, sec. 1314) is hereby repealed, and paragraph 1615 of the Tariff Act of 1930 (U. S. C., 1934 edition, title 19, sec. 1201, par. 1615) is hereby amended to read as follows: “PAR. 1615. (a) Articles, the growth, produce, or manufacture of the United States, when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means. "(b) Steel boxes, casks, barrels, carboys, bags, quicksilver flasks or bottles, metal drums, and other substantial outer containers of domestic or foreign manufacture, exported empty and returned as usual containers or coverings of merchandise, or exported filled with products of the United States and returned empty or as the usual containers or coverings of merchandise, including shooks and staves when returned as boxes or barrels in use as the usual containers of merchandise.

"(c) Photographic dry plates and films of the manufacture of the United States (except moving-picture films to be used for commercial purposes), exposed abroad, whether developed or not.

"(d) Photographic films light struck or otherwise damaged, or worn out, so as to be unsuitable for any other purposes than the recovery of the constituent materials, provided the basic films are of the manufacture of the United States. "(e) The foregoing provisions of this paragraph shall not apply to

"(1) Any article upon which an allowance of drawback has been made under section 313 of this Act or a corresponding provision of a prior tariff act, unless such article is in use at the time of importation as the usual container or covering of merchandise not subject to an ad valorem rate of duty;

"(2) Any article of a kind with respect to the importation of which an internal-revenue tax is imposed at the time such article is entered for consumption or withdrawn from warehouse for consumption, unless such article was subject to an internal-revenue tax imposed upon production or importation at the time of its exportation from the United States and it shall be proved that such tax was paid before exportation and not refunded;

"(3) Any article manufactured or produced in a customs bonded warehouse in the United States and exported under any provision of law; or

"(4) Any animal made dutiable under the provisions of paragraph 1606 (c) of this Act.

"(f) Upon the entry for consumption or withdrawal from warehouse for consumption of any article previously exported, which is excepted from free entry under this paragraph by the foregoing subparagraph (e) and is not otherwise exempted from the payment of duty, there shall be levied, collected, and paid thereon, in lieu of any other duty or tax, a duty equal to the total duty and internalrevenue tax, if any, then imposed with respect to the importation of like articles not previously exported from the United States, but in no case in excess of the sum of customs draw-back, if any, proved to have been allowed upon the exportation of such article from the United States plus the amount of the internal-revenue tax, if any, imposed at the time such article is entered for consumption or withdrawn from warehouse for consumption upon the importation of like articles not previously exported from the United States. Manufactured tobacco subject to duty hereunder shall be retained in customs custody until internal-revenue stamps in payment of any part of the legal duties measured by a rate or amount of internalrevenue tax shall have been placed thereon.

"(g) Any article exported from the United States for repairs or alterations may be returned upon the payment of a duty upon the value of the repairs or alterations at the rate or rates which would apply to the article itself in its repaired or altered condition if not within the purview of this subparagraph.

"(h) The allowance of total or partial exemption from duty under any provision of this paragraph shall be subject to such regulations as to proof of identity and compliance with the conditions of this paragraph as the Secretary of the Treasury may prescribe."

SEC. 29. Paragraph 1798 of the Tariff Act of 1930, as amended (U. S. C., 1934 edition, Supp. II, title 19, sec. 1201, par. 1798), is hereby further amended by striking out the third and fourth provisos thereof and inserting in lieu thereof the following: "Provided further, That up to but not exceeding $100 in value of articles (including distilled spirits, wines, and malt liquors aggregating not more than one wine gallon) acquired abroad by such residents of the United States as an incident of the foreign journey for personal or household use or as souvenirs or curios, but not bought on commission or intended for sale, shall be free of duty: Provided further, That the exemption authorized by/the preceding proviso shall apply only to articles declared in accordance with regulations to be prescribed by the Secretary of the Treasury by a returning resident who has remained beyond the territorial limits of the United States for a period of not less than forty-eight hours and who has not taken advantage of the said exemption within the thirty-day period immediately preceding his return to the United States: And provided further, That all articles exempted by this paragraph from the payment of duty shall also be exempt from the payment of any internal-revenue taxes."

SEC. 30. The first sentence of paragraph 1811 and the last paragraph of section 489 of the Tariff Act of 1930 (U. S. C., 1934 edition, title 19, sec. 1201, par. 1811, and sec. 1489) are hereby deleted.

SEC. 31. (a) Section 2 of the Act entitled "An Act to provide the necessary organization of the Customs Service for an adequate administration and enforcement of the Tariff Act of 1922, and all other customs laws", approved March 4, 1923, as amended (U. S. C., 1934 edition, title 19, sec. 6), is hereby further amended by striking out the first sentence and inserting in lieu thereof the following sentence:

"The Secretary of the Treasury is authorized to appoint assistant and deputy collectors, assistant and deputy comptroller, appraisers (except at the port of New York), chief assistant and assistant appraisers, examiners of merchandise, inspectors, and such other customs officers, laborers, and other employees as he shall deem necessary, prescribe their designations and duties when not otherwise defined by law, and fix their compensation; and he may by regulation or special instruction authorize any customs officer or employee to perform any duty

imposed by law or regulation upon a collector of customs notwithstanding that the performance of such duty may require the exercise of discretion." and by striking out the last sentence of that section and inserting the following sentence in lieu thereof: "The appointment of such customs officers and employees shall be made pursuant to the civil-service laws and regulations: Provided, That no person shall be appointed to the position of assistant collector, assistant comptroller, appraiser, chief assistant appraiser, or assistant appraiser pursuant to this section, unless such person shall have been, prior to his appointment to such position, a qualified customs officer familiar with the customs laws and procedure, and when so appointed such person shall not be reduced or removed except in accordance with the civil-service laws and regulations."

(b) Section 3 of the aforesaid Act of March 4, 1923, as amended (U. S. C., 1934 edition, title 19, sec. 7), is hereby repealed and in lieu thereof the following section is hereby enacted:

"The Secretary of the Treasury is authorized to appoint at the Port of New York and at such other ports as he deems necessary an attorney to act and be known as the Solicitor to the Collector of Customs, whose compensation shall be fixed by the Secretary of the Treasury. The Secretary of the Treasury is also authorized to appoint and fix the compensation of such other legal personnel as he deems necessary to assist the Solicitor to the Collector in the performance of his duties."

(c) Section 4 of the aforesaid Act of March 4, 1923, as amended (U. S. C., 1934 edition, title 19, sec. 8), is hereby amended to read as follows:

"In case of a vacancy in the office of a collector of customs, comptroller of customs, or the appraiser of merchandise at the port of New York, the assistant collector, assistant comptroller, or chief assistant appraiser shall give bond when required, act as such officer, and receive the compensation of such office until an appointment thereto has been made and the person so appointed has duly qualified."

(d) Section 3 (a) of the Act of March 3, 1927 (U. S. C., 1934 edition, title 5, sec. 281b) is hereby amended by deleting therefrom the words "officers of the Bureau of Customs" and inserting in lieu thereof the words "officers or employees of the Treasury Department".

(e) The office of surveyor of customs at the port of New York is hereby abolished. The duties imposed by law and regulations upon the Surveyor of Customs of New York are hereby transferred to, imposed upon, and continued in a position now established in the Customs Service by or pursuant to law, as the Secretary of the Treasury by appropriate regulations shall specify; and he is further authorized to designate the title by which such position shall be officially known hereafter. The Secretary of the Treasury in performing the duties imposed upon him by this Act shall administer the same in such a manner that the transfer of duties provided hereby will not result in the establishment of any new position in the Customs Service.

SEC. 32. Except as otherwise specially provided herein, this Act shall take effect on the thirtieth day following the date of its enactment.

Mr. THOMPSON. If the Chair will permit, I would like to propound a parliamentary inquiry as to the scope of the hearings. Apparently this measure proposes to amend the existing tariff law. Will members of the committee have an opportunity to submit evidence in support of certain changes in tariff rates, tariff schedules? I have in mind, Mr. Chairman, particularly, a number of excise tax bills that are pending before this committee. Can those be considered in connec

tion with this matter?

The CHAIRMAN. I presume that would be a matter for the committee to determine. I should not think it would be an appropriate place to consider those matters. I am hoping that our proceedings here will be confined to this bill.

Mr. THOMPSON. I can see where we might save some time and at the same time give some of the people who are interested in the matter of imposing excise taxes on imports of certain commodities-those associations and those groups-a day in court, if they were allowed to

testify in these hearings, inasmuch as this is an amendment of the tariff act.

Mr. COOPER. Will the gentleman yield?

Mr. THOMPSON. Certainly.

Mr. COOPER. I think it would be better, Mr. Chairman, for us to proceed, for the present at least, with a consideration of this bill that is before us. Let us have an explanation of the bill and then, probably, we will be able to determine by that time the merit of the question presented by Mr. Thompson.

The CHAIRMAN. If that is agreeable to Mr. Thompson?

Mr. THOMPSON. It is agreeable to me. I would like to know, if we are going to go into that question, whether I will have an opportunity to assemble witnesses to present the facts in justification of some of these matters that I have in mind. If I am given that permission, I would like to have a little time on it. I think it best, however, like Mr. Cooper, that we have this bill explained.

Mr. TREADWAY. Mr. Chairman, I notice that we have before us a memorandum entitled "Changes in Existing Law Made by H. R. 6738", which is a comparison of the present law with the changes proposed. As I understand it, it will be necessary, under the Ramseyer rule, to have such a comparison if and when the bill is reported to the House. Why would it not be advisable to print this comparison as a part of the hearings, with the bill itself?

Mr. REED. That is just what I was going to suggest, Mr. Chairman. The CHAIRMAN. Without objection, it is so ordered, and it will be made a part of the record.

(The memorandum referred to is as follows:)

CHANGES IN EXISTING LAW MADE BY H. R. 6738

In compliance with paragraph 2a of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill are shown as follows (existing law proposed to be omitted is enclosed in black brackets; new matter is printed in italics; existing law in which no change is proposed is shown in roman):

(TARIFF ACT OF 1930) SECTION 1

That on and after the day following the passage of this Act, except as otherwise specially provided for in this Act, there shall be levied, collected, and paid upon all articles when imported from any foreign country into the United States or into any of its possession (except the Philippine Islands, the Virgin Islands, American Samoa, Wake Island, Midway Islands, and the island of Guam) the ates of duty which are prescribed by the schedules and paragraphs of the dutiable ist of this title, namely:

NOTE. The above amendments are made by section 2 of the bill.

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(TARIFF ACT OF 1930) SECTION 201

That on and after the day following the passage of this Act, except as otherwise specially provided for in this Act, the articles mentioned in the following paragraphs, when imported into the United States or into any of its possessions (except the Philippine Islands, the Virgin Islands, American Samoa, Wake Island, Midway Islands, and the island of Guam), shall be exempt from duty:

NOTE.-The above amendments are made by section 2 of the bill.