The Senate should promptly consider H.R. 6584 now before it, which would amend and improve the customs valuation provisions of our law by eliminating so-called "foreign value" as a basis of valuation and by other simplifying changes. In addition, the Department of the Treasury should be directed to make a study and report to the Congress on the feasibility and effect of making greater use of the actual invoice price of imported goods for valuation purposes in transactions between a buyer and a seller who are independent of each other. In that connection it should also consider and report upon the feasibility of making more efficient use of the "antidumping" law.
The problems of fixing a value on imported goods for the purpose of levying ad valorem or compound duties are perhaps the largest single source of delay in customs procedure. Moreover, the extensive rights of importers to protest such determinations, once they are made, unavoidably prolong such disputes and delays. The provisions of H.R. 6584 might mitigate some of those difficulties; but it would be desirable to explore the possibilities of even further simplification of valuation standards by the greater use of actual invoice prices for the purpose. The risks of using such a standard would also have to be explored, such as the risk of the use of fictitiously low sales prices and the risk of reducing through this means the effective level of duties intended by the Congress. Proper consideration should be given to the fact that a substantial fraction of our imports comes from foreign sources owned by American interests. More effective use of antidumping duties would tend to eliminate any attempts at evasion.
The Department of the Treasury should be directed to make a continuing study of difficulties and delays in customs administration and to report the results of its studies each year to the Congress, together with any proposals for legislative action.
a. The first of the regular reports herein recommended should indicate those detailed administrative provisions of the tariff laws which should be modified so that adequate discretion can be granted to the Secretary of the Treasury to insure the greatest speed and efficiency of administration in the operation of customs.
b. The first report should also set forth progress made through recent administrative action in simplifying customs procedures, including measures taken in accordance with the Customs Simplification Act of 1953.
The present complexities of customs administration are a significant deterrent to imports; more importantly they create irritations which are detrimental to our total foreign relations. Although the United States may be no worse than many other nations in this regard, there is little excuse for the continuance of unnecessary administrative burdens on international trade. The technical problems involved in the streamlining of customs administration can best be identified and overcome by the agency charged with the administration of these laws, once that agency is given a mandate from the Congress to undertake this task.
In connection with the application of antidumping duties, the task of determining, in accordance with the provisions of existing law, "that an industry in the United States is being or is likely to be injured . . ." by foreign dumping, should be transferred from the Department of the Treasury to the Tariff Commission. The Department of the Treasury should be directed to study and report to the Congress on any statutory amendments which may be needed to permit the continuance of shipments pending investigation of suspected dumping; and at the same time it should report on any measures needed to effect speedier and more efficient operation of antidumping provisions in proper cases.
Our antidumping legislation provides that, on suspicion that a product is being dumped on this market, the liquidation of entries of such products shall be suspended. It is generally asserted that this suspension has the effect, in practice, of halting imports of the affected product from the country in question, until the suspicion has been confirmed or rejected by investigation. Although antidumping duties have seldom been employed by the United States, nevertheless prompt action in such cases is in the national interest.
The President should study appropriate methods to assure that American industry is not injured by embargoes upon or other impediments to exports of raw materials to the United States for use in processing here. In this connection, he should direct the Department of the Treasury to review the effectiveness of existing countervailing-duty provisions of the law, should consider any alternative measures which may be available for achieving this purpose, and if necessary should make appropriate recommendations to the Congress.