f bill: Temporary duty suspension through Dec. 31, 2008.
Retroactive effect: None.
Suggested article description for enactment (including appropriate HTS subheading):
Static converters capable of converting 300 V direct current to 12 V direct current, designed for use in
hybrid motor vehicles of heading 8703 (provided for in subheading 8504.40.95).
Check one:
__ Same as that in bill as introduced
_x Different from that in bill as introduced (see Technical Comments section)
Product information, including uses/applications and sources of imports:
The DC-to-DC converters covered by this legislation employ various solid-state components, including
step-down transformers, to convert high-voltage (over 300 volts) direct current (DC) derived from a high
voltage nickel-metal hydride battery source into low-voltage DC (12-14 volts). The low-voltage output of
these converters is used to power the low-voltage electrical components and systems (lights, radios,
power windows, etc.) of a hybrid motor vehicle. Imports of these electrical components will reportedly be
sourced by the proponent exclusively from Japan. 3
Both Toyota and Nissan have announced plants to start manufacturing hybrid vehicles in the United States in 2006; Toyota
will build up to 48,000 hybrid Camry vehicles in Georgetown, KY, by late 2006. Ford plans to add three hybrid models to its
current hybrid line-up by 2008. The estimated import value and revenue loss provided in this report do not reflect any increase in
imports that may result from this future production. However, the value of U.S. importsand consequently the revenue lossmay
increase if these manufacturers import components that are classified within this proposed heading for their U.S. hybrid vehicle
production.
4
The Commission may express an opinion on the HTS classification of a product to facilitate consideration of the bill. However,
by law, only the U.S. Customs Service is authorized to issue a binding ruling on this matter. The Commission believes that the
U.S. Customs Service should be consulted prior to enactment of the bill.
2
Estimated effect on customs revenue:
3
HTS subheading: 8504.40.95
2005
2006
2007
2008
2009
Col. 1-General
rate of duty
1.5%
1.5%
1.5%
1.5%
1.5%
Estimated value
dutiable imports
$5,250,000
$5,250,000
$5,500,000
$5,500,000
$5,500,000
Customs revenue
loss
$78,750
$78,750
$82,500
$82,500
$82,500
Source of estimated dutiable import data: Industry and Commission staff estimates
.
Contacts with domestic firms/organizations (including the proponent):
Name of firm/organization
Date
contacted
US production
of same or
competitive
product
claimed?
Submission
attached?
Opposition
noted?
(Yes/No)
Ford Motor Co. (Proponent)
Steve Chorian, 313-845-5610
Ramel Gilliland, 313-845-8019
Anand Sankaran, 313-390-8689
8/03/2005
No
No
No
National Electrical Manufacturers Assoc.
John Meakem, 703-841-3243
8/02/2005
No
No
No
Technical comments:
4

As drafted, the bill uses the term (rectifiers) after Static converters, giving the impression that the
static converters in question perform a rectifying function (the conversion of alternating current (AC) to
pulsating direct current (DC)) within the electrical system of a hybrid motor vehicle. In fact, the principal
function of these converters is to reduce high-voltage (300 volts) DC to low-voltage DC for use by the 3
accessory components (lights, radio, power windows, etc.) of such vehicles. It is thus recommended that
this term be eliminated from the item description as it is not technically accurate. With respect to the
descriptor hybrid, which is not defined in the bill or in a legal provision of the HTS, no additional
criteria are suggested because no confusion about the nature of these vehicles has been noted during the
preparation of this report. I
109
TH
CONGRESS
1
ST
S
ESSION

H. R. 1925
To suspend temporarily the duty on converter asy.
IN THE HOUSE OF REPRESENTATIVES
A
PRIL
27, 2005
Mr. H
ULSHOF
introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To suspend temporarily the duty on converter asy.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. CONVERTER ASY.
3
(a) I
N
G
ENERAL
.Subchapter II of chapter 99 of
4
the Harmonized Tariff Schedule of the United States is
5
amended by inserting in numerical sequence the following
6
new heading:
7

9902.85.01
Static converters (rectifiers)
capable of converting 300 V
direct current to 12 V direct
current, designed for use in
hybrid motor vehicles of
heading 8703 (provided for
in subheading 8504.40.95) ..
Free
No change
No change
On or before
12/31/2008
. 2
HR 1925 IH
(b) E
FFECTIVE
D
ATE
.The amendment made by
1
subsection (a) applies to goods entered, or withdrawn from
2
warehouse for consumption, on or after the 15th day after
3
the date of enactment of this Act.
4
Æ