Baucus Introduces Citrus, Cotton, Wool Trust Funds Bill
Senate Finance Committee Chairman Max Baucus (D- Mont.) added to the Senate calendar legislation (S-3568) that would authorize trust funds to provide support to citrus, cotton and wool industries, paid for through import duties. The bill also takes up other broad customs issues.
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Citrus Trust Fund
The citrus trust fund would be named "Citrus Disease Research and Development Trust Fund," which would be used to research diseases that are hurting U.S. citrus crops. The trust fund would be paid for through "duties collected on articles that are citrus or citrus products classifiable under chapters 8, 20, 21, 22, and 33 of the Harmonized Tariff Schedule of the United States," the bill said. The legislation would also require the President to inform the House Ways and Means and Senate Finance committees of any trade agreement that might reduce the duties collected on those products. The trust fund would be limited to $30 million per year.
Cotton Trust Fund
The bill would also renew and modify duty refunds for cotton shirting fabrics and the Pima Cotton Trust Fund. The trust fund was funded through the revenue collected from tariffs on cotton textile imports (primarily yarns and fabrics) and included duty suspensions and reductions on high-end cotton fabrics and yarns, subject to quantitative limitations. However, the authority to transfer tariff revenue to the trust fund expired on October 1, 2008, and the duty suspensions expired on December 31, 2009. The fund would be renewed through 2015 and apply to subheadings 9902.52.08, 9902.52.09, 9902.52.10, 9902.52.11, 9902.52.12, 9902.52.13, 9902.52.14, 9902.52.15, 9902.52.16, 9902.52.17, 9902.52.18, and 9902.52.19 of the Harmonized Tariff Schedule of the United States (relating to woven fabrics of cotton).
Wool Trust Fund
The legislation would also modify the Wool Manufacturers Apparel Trust Fund, allowing for an alternative funding source. The bill would allow for a substitution of funds from "chapter 62" for "chapter 51" for any period of time if the duty received on articles classified under chapter 51 of the Harmonized Tariff Schedule of the United States is not sufficient to make payments.
Canadian Lumber and User Fees
The bill also requires the U.S. Trade Representative to "continue to make it a priority in its engagement with Canada to address market-distorting subsidies and practices in the lumber market of Canada at the national and provincial levels." The legislation would also extend the authorization to collect customs user fees.