UNITED STATES TARIFF COMMISSION RECLAIMED INDIA (NATURAL) RUBBER Comment This summary covers reclaimed natural (india) rubber. 1/ For crude natural rubber see separate summary on crude india (natural) rubber, including guayule, paragraph 1697. Reclaimed rubber is vulcanized rubber which has been recovered from discarded rubber articles and has been softened, plasticized, and blended so as to render it suitable for reuse in the manufacture of rubber articles. It usually has a considerable admixture of fillers and other nonrubber constitutents contained in the scrap rubber as well as softeners added in the process of reclamation. 2/ Most reclaimed rubber is obtained from scrap rubber by the alkali process. Preparatory to reclaiming, any metal parts are removed from the scrap rubber articles, and the rubber and fabric are reduced to a state suitable for the action of reagents. In the case of pneumatic tires the bead is usually removed by a machine specially designed for that purpose. After the scrap rubber is chopped and ground, it is treated at a relatively high temperature with caustic soda to destroy the fabric, to plasticize the rubber, and to remove the uncombined or free sulphur. The scrap rubber is then washed with water to remove the residual alkali and the disintegration products of the cotton fabric. The washed rubber is dried, milled, mixed with softening agents, and formed into slabs. About 50 percent of the reclaimed rubber produced in the United States is consumed in rubber mixtures used for the manufacture of automobile tires. Other important consumers of reclaimed rabber are manufacturers of flooring, matting, and footwear. Before World War II United States production of reclaimed rubber ranged from about 125,000 to 180,000 long tons per year and consisted almost entirely of reclaimed natural rubber. Production increased substantially during the war and in 1943 amounted to about 304,000 tons. Output has remained at a high level in postwar years and in 1948 totaled about 267,000 long tons. Reclaimed rubber produced during and since the war contains substantial proportions of synthetic rubber mixed with natural rubber. United States imports of reclaimed natural rubber have been insignificant, as appears from table 1. As far as known, there have been no imports of reclaimed synthetic rubber. United States exports of reclaimed rubber have been substantial. Before the war they ranged from about 5,400 long tons, valued at $584,000, in 1935, to 13,200 long tons, valued at 1.4 million dollars, in 1937. Exports increased somewhat during the war and in 1943 totaled about 15,700 long tons, valued at 2.3 million dollars. In 1946-48 exports averaged about 13,500 long tons annually, valued at 2.4 million dollars. Canada, the United Kingdom, Australia, and Argentina were the principal prewar markets, whereas most exports in recent years have gone to Canada, Argentina, Mexico, and the Union of South Africa (see table 2). 1/ It is morally impossible to discuss reclaimed natural rubber without also considering reclaimed synthetic rubber (for which the tariff status has not been determined) since many rubber products manufactured during and since World War II contain substantial proportions of synthetic rubber and the resulting reclaimed rubber contains a mixture of natural and synthetic rubber. 2/ A great part of the scrap rubber used consists of old automobile tires; see SUMMARIES OF TARIFF INFORMATION RECLAIMED INDIA (NATURAL) RUBBER Table 2.- Reclaimed rubber: United States exports of domestic merchandise, by principal markets, in specified years, 1935 to 1948 Preliminary. 584 1,435 1,426 2,295 2,490 2,558 2,033 2/ Less than one-half long ton. / Less than $500. Source: Official statistics of the U. S. Department of Commerce. UNITED STATES TARIFF COMMISSION Par. 1697. RUBBER SCRAP OR REFUSE, NATURAL AND SYNTHETIC Tariff Status Scrap or refuse india (natural) rubber and gutta-percha, fit only for remanufacture, which was free of duty under the Tariff Act of 1922, is free of duty also under the Tariff Act of 1930. Its duty-free status was bound in the Geneva agreement. There was no commercial production of synthetic rubber or products therefrom when the Tariff Act of 1930 was written. During and after World War II, imports of scrap synthetic rubber articles were administratively classified under tariff paragraph 1555 as "waste, not specially provided for" and held dutiable at 71⁄2 percent ad valorem. Effective February 1948, scrap or refuse synthetic rubber fit only for remanufacture was made free of duty under paragraph 1697 by Public Law 415 (80th Congress). Trade Statistics Table 1.- Rubber scrap or refuse, natural and synthetic: United States Estimated. Before World War II collections consisted almost exclusively of scrap natural rubber. Since the war, however, the total amount collected is probably equally divided between scrap natural rubber and scrap synthetic rubber. 2/ Before the war, exports were practically all of scrap natural rubber; since the war, however, exports have probably been about equally divided between natural and synthetic rubber scrap. 2/ On the basis of an invoice analysis by the Tariff Commission, figures are adjusted to include imports of scrap synthetic rubber (until 1948 classified under par. 1555), amounting to 450 long tons, valued at about $12,000 in 1945; 800 long tons, valued at about $26,000 in 1946; and 2,500 long tons, valued at about $70,000 in 1947. Preliminary. 5/ Not available. 6/ Less than $500. SUMMARIES OF TARIFF INFORMATION RUBBER SCRAP OR REFUSE, NATURAL AND SYNTHETIC (PAR. 1697) Comment This summary covers scrap or refuse of natural and synthetic rubber, and of gutta-percha. Crude natural rubber (duty-free) crude gutta-percha (duty-free) and synthetic rubber (dutiable) are discussed elsewhere. 1/ Scrap rubber consists of worn-out or defective rubber articles, whether or not combined with fabric or other materials, and economically useful only as a material for remanufacture. 2/ The great bulk of the scrap collected is converted into reclaimed rubber; 2/ relatively small amounts are used directly in the manufacture of products such as door mats, link matting and bumpers, or ground for filler in rubber compounds that are used in making certain kinds of rubber products. Except during wartime, only a relatively small part--probably not more than 25 percent-of discarded rubber articles are ordinarily salvaged as scrap rubber in the United States. In the years immediately preceding World War II collections of scrap rubber are estimated to have been around 200,000 long tons a year. Collections increased greatly during the war in response to Government-sponsored efforts and attained a record of 435,000 tons in 1942. Thereafter collections declined but have remained above prewar levels; they are estimated at 333,000 tons in 1948. Before the war virtually all scrap rubber consisted of natural rubber; since the war, however, a large part of the rubber scrap collected has consisted of articles containing substantial proportions of synthetic rubber. There is no known collection of scrap gutta-percha and trade in this material is negligible or nil. United States imports of scrap rubber have been small compared with domestic production. During 1937-39 they averaged about 4,800 long tons a year, valued at $250,000 (foreign value). Imports increased greatly during the war and reached a record of about 24,000 tons in 1942, valued at 2.6 million dollars. They declined during subsequent years and in 1948 were about 6,900 tons, valued at $298,000. Canada and the United Kingdom have been the chief sources of imports (see table 1). United States exports of scrap rubber have been very much larger than imports, except during the war. Before the war exports ordinarily equalled about 20 percent of total domestic collections, and during 1937-39 they averaged about 34,750 long tons annually, valued at 1.4 million dollars. During the war exports declined sharply and in 1942 were only about 2,200 tons, valued at $197,000. In postwar years exports have been equal to about 7 to 10 percent of total collections; in 1948 they were about 23,000 long tons, valued at 1.5 million dollars. Japan, Canada, China, and Hong Kong have been the principal destinations of exports (see table 2). See separate summaries on crude india (natural) rubber, including guayule, duty-free under par. 1697; crude gutta-percha, gutta siak, and gutta balata, dutyfree under par. 1697; and synthetic rubber not in part of carbon, and miscellaneous synthetic rubber articles not in part of carbon, dutiable under par. 1558. 2/ Auto tire casings suitable for recapping or retreading are not classified as scrap, but as tires in chief value of india rubber (dutiable under par. 1537(b)). However, worn-out casings, suitable only for remanufacture, are classified as scrap. 2/ See summary on reclaimed natural (india) rubber, duty-free under par. 1697. UNITED STATES TARIFF COMMISSION RUBBER SCRAP OR REFUSE, NATURAL AND SYNTHETIC Table 2.- Rubber scrap or refuse, natural or synthetic: United States 2/ Includes Austria in 1939 and 1943. Data for 1935-39 are for Morocco, including French Morocco and Tangier. Source: Official statistics of the U. S. Department of Commerce. |