[Congressional Record Volume 168, Number 117 (Friday, July 15, 2022)]
[House]
[Pages H6629-H6631]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FORMULA ACT
Mr. BLUMENAUER. Madam Speaker, I move to suspend the rules and pass
the bill (H.R. 8351) to amend the Harmonized Tariff Schedule of the
United States to suspend temporarily rates of duty on imports of
certain infant formula products, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 8351
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Formula Act''.
SEC. 2. TEMPORARY DUTY SUSPENSIONS FOR INFANT FORMULA.
(a) In General.--Subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States (HTS) is
amended by inserting the following new subheadings in
numerical sequence:
`` ................. Infant formula, put .............. .................. .................
up for retail sale:
9903.19.19 Provided for in Free No change No change
subheading
1901.10.16,
1901.10.26,
1901.10.36 or
1901.10.44........
9903.19.20 Provided for in Free No change No change
subheading
1901.10.29 or
1901.10.49........
................. Infant formula: .............. .................. .................
9903.19.21 Provided for in Free No change No change
subheading
2106.90.97........
9903.19.22 Provided for in Free No change No change ''.
subheading
2106.90.99........
(b) Effective Date.--The amendments made by subsection (a)
shall apply with respect to goods entered, or withdrawn from
warehouse for consumption on or after the date of enactment
of this Act and before the close of December 31, 2022.
(c) Waiver of Other Duties or Safeguards.--Notwithstanding
any other provision of law, during the period described in
subsection (b), articles of infant formula that are
classifiable under any subheading added by the amendments
made by subsection (a) shall not be subject to--
(1) any additional safeguard duties that may be imposed
under subchapter IV of chapter 99 of the HTS; or
(2) any other import quotas, tariff-rate quotas, additional
duties, or any other duties, fees, exactions, or charges that
otherwise would apply to such articles.
(d) Entry Requirements.--In seeking to enter articles of
infant formula duty-free under this Act, importers shall
provide the applicable tariff classification for such
articles under chapter 19 or chapter 21 along with the
anticipated tariff classification under subchapter III of
chapter 99 (as added by subsection (a)) on applicable customs
entry documents.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Oregon (Mr. Blumenauer) and the gentleman from Nebraska (Mr. Smith)
each will control 20 minutes.
The Chair recognizes the gentleman from Oregon.
General Leave
Mr. BLUMENAUER. Madam Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Oregon?
There was no objection.
Mr. BLUMENAUER. Madam Speaker, I yield myself such time as I may
consume.
The news about supply chain disruptions have filled the news, but
none is more compelling and urgent for communities across America than
facing challenges due to the infant formula shortage. This is an urgent
issue for our families.
Between supply chain issues due to the pandemic and the closure of a
Michigan infant formula plant, out-of-stock rates have reached perilous
levels. The out-of-stock rate was 31 percent in mid-April and rose to
90 percent in 10 States by the end of May. In my State, Oregon, we
faced an out-of-stock rate higher than 85 percent.
While these numbers alone tell a horrific story, there is no number
that can capture the fear and frustration felt by families who are
searching for formula to serve their babies. As a parent and
grandparent, I can assure you that there is nothing as anxiety- and
anger-
[[Page H6630]]
inducing as not being able to properly care for your child.
I have heard stories of families going store to store or posting on
social media asking for help as they try to find the formula their
family needs. Families have enough to worry about without worrying
about how to feed their baby.
The Federal Government must provide the support needed to help these
children and families and explore every possible option. This
administration and Congress has made significant progress by invoking
the Defense Production Act, increasing flexibility for the WIC program,
and easing restrictions on imports to fill supply chain shortages.
While the FDA has exercised enforcement discretion to increase
imports, imported infant formula remains subject to high tariffs. These
tariffs, which increase the cost of the formula imports by an estimated
27 percent, only exaggerate the suffering families face at this time.
It is unacceptable that families would be taxed on a product that
they need and have no other way of getting in the midst of this crisis.
Our Ways and Means Trade Subcommittee is committed to leveraging our
jurisdiction to reduce these costs.
I especially appreciate my colleague Suzan DelBene for her
partnership and leadership on this legislation. She was integral to
this effort, and we wouldn't be here today without her.
The Formula Act reaffirms Congress' constitutional authority to
regulate commerce from foreign nations by temporarily suspending
tariffs on imported infant formula through the end of this year. This
change should help make formula more affordable and accessible to
families in every State.
I am grateful for the support of Chairman Neal; Ranking Member Brady;
Ranking Member Smith, who is managing the bill for the Republicans; and
the Ways and Means Committee in bringing this bipartisan legislation to
the floor today.
Madam Speaker, I urge my colleagues to support the legislation, and I
reserve the balance of my time.
Mr. SMITH of Nebraska. Madam Speaker, I rise today in support of H.R.
8351, the Formula Act.
I appreciate Mr. Blumenauer and his willingness to work with me on
this bipartisan effort to address our Nation's infant formula shortage.
The Formula Act makes infant formula more accessible and affordable
by allowing it to be imported duty-free through the end of the year.
Make no mistake: Mothers and families should never have to experience
the extreme despair of worrying whether shelves will be stocked with
the formula they need for their infants.
As a father of two, including a 1-year-old, I think I can speak for
many others across America that nothing is more important than the
health and well-being of our children.
The Biden administration knew of the looming infant formula shortage
for months and yet failed to develop a strategy or adequately respond.
While we wait for domestic production to fully resume, families should
not have to pay additional taxes on imported formula to feed their
little ones.
I will continue to work with my colleagues on the Ways and Means
Committee, as well as the full House, to use trade tools to strengthen
critical supply chains like infant formula.
Madam Speaker, I reserve the balance of my time.
Mr. BLUMENAUER. Madam Speaker, I yield such time as she may consume
to the gentlewoman from Washington (Ms. DelBene), a committee member
and a leader on this issue.
Ms. DelBENE. Madam Speaker, I rise today to address the ongoing baby
formula crisis and urge my colleagues to support the Formula Act.
I raised two kids, and I know the first months of parenthood are
tiring and stressful, even in the best of situations.
Now, families across the country are in a dire position as they try
to find the formula that they need to feed their babies.
Around the country, 74 percent of formula shelves are empty. In my
home State of Washington, we are one of 10 States where over 90 percent
of shelves are empty.
Severely stretched supply chains and a major formula plant going
offline have left shelves barren. Unreliable formula supply is a
critical problem for families. Parents are driving hours to multiple
different stores just to find any formula, and that is time that
parents don't have.
Changing formulas constantly is also disruptive to babies. It causes
digestive problems and excessive crying.
Jessie, a mom in my district, has been struggling to find formula for
her infant daughter, Amara. She is not one to ask for help, but when
she was running low on her last can, Jessie joined a local social media
group where other parents would post where they saw formula on shelves,
and she downloaded an app that would notify her when more cans were
available. Jessie was able to find formula, but she realizes that she
is one of the lucky parents who had the means, the time, and the
network to support Amara.
By removing tariffs on foreign formula that meets FDA's safety
standards, the Formula Act will make it easier and more affordable for
parents to feed their babies so fewer are finding themselves in this
difficult situation. This is a commonsense solution, so let's make it
happen.
Mr. SMITH of Nebraska. Madam Speaker, I yield 2 minutes to the
gentleman from North Carolina (Mr. Murphy), a member of the Ways and
Means Committee.
Mr. MURPHY of North Carolina. Madam Speaker, I rise today in support
of H.R. 8351, the Formula Act.
I thank my friend from Nebraska, Mr. Adrian Smith, and Mr. Blumenauer
for their leadership on this bill.
With families facing record-high inflation, with record-high food and
gas prices, the last thing that parents need to worry about is being
able to find formula, much less being able then to afford it.
H.R. 8351 ensures that families are not covering the cost of
additional taxes on formula imported into the United States, and I am
pleased with the relief that this bill will provide.
But, unfortunately, as has been the mantra of this administration,
this crisis exemplifies just another self-inflicted wound that has been
the point of the Biden administration. The administration knew about
the impending shortage and failed to act to avert the crisis.
The incompetence of this administration has real world effects. We
are talking about something that is basic sustenance for infants in
this country. They need this, and this bill will help bring
affordability to parents for their children.
Madam Speaker, I thank, again, my colleagues and encourage their
support of this legislation.
Mr. BLUMENAUER. Madam Speaker, I yield 3 minutes to the gentleman
from Michigan (Mr. Kildee), a senior member of the Ways and Means
Committee.
Mr. KILDEE. Madam Speaker, I rise in support of this legislation to
lower prices for families I represent in mid-Michigan, and I thank
Chairman Blumenauer for his leadership on this very important issue.
Production of infant formula in this country isn't working properly.
It is not getting to the shelves, and it is denying families what they
need at the most important time in the development of the life of a
child. After product recalls, corporate consolidations, and obviously
pandemic-related supply chain issues, this is a real struggle for
American families.
As parents raising three kids, my wife and I empathize with those
anxious parents out there who are struggling to find formula for their
newborn children. That is why Congress has to act to increase imports
of formula until domestic production can get back to the point where we
can supply our domestic needs with our own production capacity.
However, as has been said, some formula imports are still subject to
really high tariffs, up to 27 percent, and there is no reason at this
moment that American families who are struggling should have to pay
that additional cost. They shouldn't have to pay more for something
that is absolutely necessary for their children.
That is why we introduced this legislation, supported by Republicans
and Democrats, to suspend these formula import tariffs for the rest of
the year and to lower costs for families with children. I really do
urge my colleagues, all of us, to join. This is something we ought to
be able to do together to immediately reduce prices
[[Page H6631]]
for families who have needs, for families with small children, to make
sure that until we can get our domestic production back online, we can
supply what we need at a cost that is affordable to those families that
are simply trying to take care of their kids. That is our obligation.
That is why we swore the oath to come here and do this work. We have
the tools in our hands to get this done.
I urge my colleagues to join us in this effort.
Mr. SMITH of Nebraska. Madam Speaker, I reserve the balance of my
time.
Mr. BLUMENAUER. Madam Speaker, I yield 2 minutes to the gentlewoman
from Texas (Ms. Jackson Lee).
Ms. JACKSON LEE. Madam Speaker, I thank the gentleman, Mr.
Blumenauer, for his leadership and his cosponsor from Nebraska for his
leadership.
Ninety percent of the stores in Houston are without baby formula.
Texas was one of the hardest hit States. One of the most potent,
powerful, and sad days was when I was able to find baby formula from a
disaster organization, and in my district, in those early days, had a
baby formula giveaway. Volunteers were looking to make sure that we
were not giving out expired-date formula. All I can say is the lines of
cars and the women who stopped to get out of the car to simply hug us,
the strollers that came up--baby formula is a lifeline.
{time} 0930
Baby formula is a lifeline. This legislation breaks the crisis of the
supply chain and provides a regulatory scheme that ensures we can have
production.
The disappointing aspect of all of this is the shutdown of the center
point of manufacturing, if you will, and many were not notified. This
legislation says that we are committed as Members of the United States
Congress to modify safety requirements to the extent that no formula is
jeopardized but that the lifeline for babies is our first priority.
I am grateful for this legislation because the shelves in Houston,
Texas, are gradually coming back. They are not there yet. Just a few
weeks ago, we had one of the largest cargo planes land at Bush
Intercontinental Airport. The gratification of families was
unspeakable, could not be mentioned.
This cannot ever happen again. It is important for Congress to be
advanced and prepared to ensure that babies, who are innocent and
without the ability to speak, are taken care of.
Madam Speaker, I thank Mr. Blumenauer for this kind of leadership.
Thank God relief is on the way.
Mr. SMITH of Nebraska. Madam Speaker, I yield myself such time as I
may consume.
I appreciate the dialogue that we have been having here today. I
think it is important, as my colleague just mentioned, that we work
together to make sure this doesn't happen again.
I think we need to look across the Federal agencies to make sure that
these very powerful agencies that have the power to shut down an
industry, perhaps, that they have to plan ahead for what happens if
that occurs so that people don't suffer as a result.
When we hear the statistics that 90 percent of stores didn't have
something, that means they had none, not just more expensive product
that we see across the economy. It is hard to believe that the
inflation rate is announced at 9.1 percent when it sure seems like
things are a lot more expensive than just 9.1 percent more than last
year.
The fact of the matter is, let's work together to prevent this
formula situation from ever happening again.
Madam Speaker, I reserve the balance of my time.
Mr. BLUMENAUER. Madam Speaker, I yield myself such time as I may
consume.
I appreciate the partnership with my good friend, Mr. Smith. We have
been able to move this expeditiously. I do appreciate his observation
that there are challenges that we meet, and we would hope that our
government and the various agencies that are involved are able to
respond quickly. That, of course, is something that we need to empower
them to do, these partnerships.
Sometimes there is a little tension about the role and nature of
government agencies, but this is an example, admittedly, where we want
to get ahead of the curve, and the powers that agencies have can be
used constructively.
I am pleased that our committee, for example, sprang into action
dealing with the invasion of Ukraine by Russia to suspend tariff
advantages for Russia, and we moved that quickly on a bipartisan basis.
Particularly in this case we have 26 members of the Ways and Means
Committee who are cosponsoring this legislation, and it was able to
move quickly.
Unlike what often happens with things we pass in the House that
linger in the Senate, it looks like the Senate is poised to be able to
act quickly in response to our action here today.
So I hope we come together. I hope we have a unanimous vote that
would suspend this 27 percent additional cost on families struggling to
meet the needs of their children. I hope that we can continue to look
at areas where we need to refine tools to make sure that things like
this don't happen again and we work together to try to hit the right
balance.
In the meantime, I think we have hit the right balance with this
legislation. I appreciate the partnership, and I look forward to its
passage today.
Madam Speaker, I yield back the balance of my time.
Mr. SMITH of Nebraska. Madam Speaker, I am finished, and I yield back
the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Oregon (Mr. Blumenauer) that the House suspend the rules
and pass the bill, H.R. 8351.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. SMITH of Nebraska. Madam Speaker, on that I demand the yeas and
nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.
____________________