H. Rept. 105-495 - RHINO AND TIGER PRODUCT LABELING ACT105th Congress (1997-1998)
Committee Report
H. Rept. 105-495 - 105th Congress (1997-1998)
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House Report 105-495 - RHINO AND TIGER PRODUCT LABELING ACT
[House Report 105-495]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 105-495
_______________________________________________________________________
RHINO AND TIGER PRODUCT LABELING ACT
_______________________________________________________________________
April 28, 1998.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany H.R. 2807]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 2807) to amend the Rhinoceros and Tiger Conservation Act
of 1994 to prohibit the sale, importation, and exportation of
products labeled as containing substances derived from
rhinoceros or tiger, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rhino and Tiger Product Labeling
Act''.
SEC. 2. PROHIBITION ON SALE, IMPORTATION, AND EXPORTATION OF PRODUCTS
LABELED AS CONTAINING A SUBSTANCE DERIVED FROM
RHINOCEROS OR TIGER.
(a) Findings.--The Congress finds the following:
(1) The populations of several magnificent and unique
endangered species of rhinoceros and tigers, such as the Indian
rhinoceros, the Javan rhinoceros, the African black rhinoceros,
and all of the tiger subspecies, continue to decline.
(2) Growing demand throughout the world for wildlife and
wildlife parts and products has created a market in which
commercial exploitation has threatened certain rhinoceros and
tiger populations.
(3) There are insufficient legal mechanisms enabling the
United States Fish and Wildlife Service to forcefully interdict
products that are labeled as containing substances derived from
rhinoceros or tiger species and prosecute the merchandisers for
sale or display of those products.
(4) Although approximately 77,000 import and export shipments
occur annually in the United States, the United States Fish and
Wildlife Service is able to maintain only 92 wildlife
inspectors at 30 ports of entry, including 13 designated ports,
to monitor the shipments.
(5) Wildlife inspectors are able to physically inspect only
an estimated 5 to 10 percent of all import and export
shipments, making the rate of detection of contraband wildlife
products extremely low.
(6) Alternatives are available to the traditional medicinal
products that contain substances derived from rhinoceros and
tiger species.
(7) Public education initiatives directed toward traditional
user groups on the endangered status of rhinoceros and tiger
species and on the availability of alternative products in
traditional medicine have proven useful in reducing the demand
for products labeled as containing substances derived from
rhinoceros and tiger species, and should be encouraged.
(b) Prohibition, Penalties, and Enforcement.--The Rhinoceros and
Tiger Conservation Act of 1994 (16 U.S.C. 5301 et seq.) is amended by
redesignating section 7 as section 8, and by inserting after section 6
the following:
``SEC. 7. PROHIBITION RELATING TO PRODUCTS CONTAINING OR PURPORTING TO
CONTAIN ANY SUBSTANCE DERIVED FROM A RHINOCEROS OR
TIGER SPECIES.
``(a) Prohibition.--No person shall sell, import, or export, or
attempt to sell, import, or export any product, item, or substance
intended for human consumption containing or purporting to contain any
substance derived from any species of rhinoceros or tiger.
``(b) Penalties.--
``(1) Criminal penalty.--Any person who knowingly violates
subsection (a) shall be fined under title 18, United States
Code, imprisoned for not more than 1 year, or both.
``(2) Civil penalties.--Any person who knowingly violates,
and any person engaged in business as an importer, distributor,
or retailer of products, items, or substances purporting to
contain substances derived from any species of rhinoceros or
tiger who violates subsection (a) may be assessed a civil
penalty by the Secretary of not more than $25,000 for each
violation. A civil penalty under this paragraph shall be
assessed, and may be collected, in the manner in which a civil
penalty under the Endangered Species Act of 1973 may be
assessed and collected under section 11(a) of that Act (16
U.S.C. 1540(a)).
``(c) Forfeitures.--Any product, item, or substance sold, imported,
or exported, or attempted to be sold, imported, or exported, contrary
to the provisions of this Act or any regulation made pursuant thereto
shall be subject to forfeiture to the United States. All equipment,
vessels, vehicles, aircraft, and other means of transportation used to
aid the selling, exporting, or importing, or an attempt to sell,
export, or import, of any product, item, or substance in violation of
this Act or any regulation issued pursuant to this Act, shall be
subject to forfeiture to the United States upon conviction of a
criminal violation pursuant to subsection (b). All laws relating to the
seizure, forfeiture, and condemnation of a vessel for violation of the
customs laws, the disposition of such vessel or the proceeds from the
sale thereof, and the remission or mitigation of such forfeiture, shall
apply to the seizures and forfeitures incurred, or alleged to have been
incurred, under this Act, insofar as those laws are applicable and not
inconsistent with this Act; except that all powers, rights, and duties
conferred or imposed by the customs laws upon any officer or employee
of the Treasury Department shall, for the purposes of this Act, be
exercised or performed by the Secretary or by such persons as the
Secretary may designate.
``(d) Regulations.--The Secretary, after consultation with the
Secretary of the Treasury, the Secretary of Health and Human Services,
and the United States Trade Representative, shall prescribe regulations
that are necessary and appropriate to carry out the purposes of this
Act.
``(e) Enforcement.--The Secretary, the Secretary of the Treasury, and
the Secretary of the department in which the Coast Guard is operating
shall enforce this Act in the same manner such Secretaries carry out
enforcement activities under section 11(e) of the Endangered Species
Act of 1973 (16 U.S.C. 1540(e)).''.
(c) Definition of Person.--Section 4 of the Rhinoceros and Tiger
Conservation Act of 1994 (16 U.S.C. 5301 et seq.) is amended by--
(1) striking ``and'' at the end of paragraph (4);
(2) striking the period at the end of paragraph (5) and
inserting ``; and''; and
(3) adding at the end the following:
``(6) `person' means--
``(A) an individual, corporation, partnership, trust,
association, or other private entity;
``(B) an officer, employee, agent, department, or
instrumentality of the Federal Government, of any
State, municipality, or political subdivision of a
State, or of any foreign government;
``(C) a State, municipality, or political subdivision
of a State; or
``(D) any other entity subject to the jurisdiction of
the United States.''.
Purpose of the Bill
The purpose of H.R. 2807 is to amend the Rhinoceros and
Tiger Conservation Act of 1994 to prohibit the sale,
importation, and exportation of products labeled or containing
substances derived from rhinoceros or tiger.
Background and Need for Legislation
During the 103rd Congress, the Rhinoceros and Tiger
Conservation Act was enacted in an effort to help conserve the
dwindling populations of rhinos and tigers living in the wild.
While these species had once been prolific throughout Asia and
Africa, during the past two decades they have suffered a
tremendous population decline because of competition for land,
human population growth, loss of habitat, and poaching. This
occurred despite the fact that all populations of rhinoceros
and tiger have been listed as endangered in the United States
and by the Convention on International Trade in Endangered
Species of Wild Fauna and Flora (CITES) since the mid-1970s.
At this time, it is estimated that there are about 11,000
rhinos left in the wild. This is a significant decrease from
the 65,000 rhinos in 1970. Of the five species of rhinoceros--
black, white, Indian, Javan, and Sumatran--only the population
of white rhinos shows any sign that it has stabilized or may be
increasing in numbers in Southern Africa.
In 1987, the members of CITES voted to extend its worldwide
ban on rhinoceros horn, urged the destruction of any
stockpiles, and instructed all countries to stop all trade in
rhino products. This international edict has been largely
ignored. Rhino horn is still consumed as a pain medication in
powdered form in China, Taiwan, and Korea; and it is used as
decorative handles for ceremonial daggers in Yemen. As the
population of rhinos has declined, the price of rhino horn has
skyrocketed. In fact, African rhino horn can be worth as much
as $10,000 per kilogram and the rarer Asian rhino horn up to
$60,000 per kilogram.
In terms of tigers, the likelihood of long-term survival of
some populations is even more bleak. In fact, three
subspecies--Bali, Caspian, and Javan are already extinct and a
fourth subspecies--South China--is on the brink of extinction
with a population of only about 20 animals. According to the
Cat Specialist Group of the World Conservation Union, there are
only about 5,000 tigers living in the wild. This is a dramatic
decline from the 100,000 tigers that likely existed at the turn
of the century. Nearly 60 percent of the world's surviving
tigers, or about 3,750 animals, live in 21 forest reserves in
India. However, despite strict government protection, about one
tiger is killed every day in India.
Although agricultural and commercial logging have destroyed
large amounts of tiger habitat, illegal hunting or poaching has
had the most dramatic immediate impact in most areas where
tigers remain. Tigers are killed for their fur and most of
their body parts. Tiger bone has been an ingredient in
traditional Chinese medicines since at least 500 A.D. and its
use is firmly established in several Asian cultures.
Tiger bone powders, wines, and tablets are used to combat
pain, kidney and liver problems, rheumatism, convulsions and
heart conditions. In 1991, one-third of the world's Siberian
tigers were killed to satisfy the demand for their bones and
other parts. According to the World Wildlife Fund (WWF), tiger
bones can sell for over $1,400 per pound.
According to the WWF and the World Conservation Society
(WCS), on any given day a consumer can purchase prepackaged
medicines that clearly indicate they contain rhino and tiger
parts in cities throughout America. While these pharmaceutical
products are manufactured in China and Hong Kong, the United
States has become a major market for their sale. In fact, a WWF
survey, which was just completed, found that nearly 50 percent
of the 110 shops they visited in North America offered
medicines for sale containing or claiming to contain rhinos and
tigers. WWF investigators identified at least 31 different
types of rhino and tiger medicines that had been produced for
sale by as many as 34 different manufacturers. The cities with
the greatest number of shops offering these illegal products
included: New York, Vancouver, Seattle, Toronto, Atlanta, San
Francisco, and Los Angeles. Furthermore, the study found that
the availability of these products has greatly increased over
the past five years. In addition, a recent survey by WCS in New
York City's Chinatown found 16 different tiger labeled products
readily available in nearly 70 percent of the Asian herbal
shops visited.
In order to stop this slide toward extinction, it is
essential that the market for these products be eliminated and
that consumers stop purchasing medicines made from endangered
rhinos and tigers.
While U.S. Customs agents have confiscated some of these
products prior to importation, the underlying problem is that
it is virtually impossible to conclusively prove, even in a
laboratory, that a product contains rhinoceros or tiger parts.
These products contain many different types of active agents,
and it is extremely difficult to distinguish between the bones
of various mammals, all of which contain calcium.
While it is true that the Customs Service and the U.S. Fish
and Wildlife Service could conduct DNA tests on each of these
products, these tests are prohibitively expensive and time
consuming. There are literally thousands of products, and
neither Customs nor the Fish and Wildlife Service have the
resources to even begin to undertake such a job.
The fundamental purpose of the Rhino and Tiger Product
Labeling Act is to alleviate this testing problem. Under the
terms of this legislation, if a label on a product says that it
contains rhinoceros or tiger parts, then it cannot enter the
United States because the legal presumption is made that it
violates our laws. There is no need for any DNA testing and
this legislation sends a clear, unmistakable message to those
who traffic in illegal wildlife products that the U.S. market
is now closed. By so doing, the Committee hopes that the
financial incentives to kill a rhino or tiger will be
eliminated.
The Committee also expects that the appropriate legal
authorities will take steps to ensure that any existing
prepackaged Oriental medicines that have already entered the
United States and purport to contain rhinos or tigers are not
permitted to be sold after the date of enactment. Thisaction is
consistent with various approved CITES resolutions that urge all
nations to destroy all stockpiles of these products.
H.R. 2807 is, in essence, truth in labeling for these
endangered species. If a manufacturer tries to sell these
medicines without a reference to rhinos or tigers, then studies
indicate consumers are not likely to purchase them. For nearly
2,000 years, people who practice traditional Chinese medicine
have believed rhino and tiger parts will cure their various
medical ailments.
What is tragically ironic is that there are synthetic
alternatives to these medicines. Unfortunately, they are not
well known. In addition, there is a need for a new educational
campaign targeted to those who buy these products. Based on the
WCS survey, it is clear that the vast majority of people buying
these medicines are not aware that they are directly
contributing to the demise of highly endangered rhinos and
tigers.
Committee Action
H.R. 2807 was introduced by Congressmen Jim Saxton (R-NJ)
and George Miller (D-CA) on November 4, 1997, and referred to
the Committee on Resources. Within the Committee, the bill was
referred to the Subcommittee on Fisheries Conservation,
Wildlife and Oceans. The bill has 44 bipartisan cosponsors.
On February 5, 1998, the Subcommittee on Fisheries
Conservation, Wildlife and Oceans conducted a hearing on H.R.
2807. Testimony was heard from the Honorable Bruce Babbitt,
Secretary, Department of the Interior; Dr. Terry Maple,
President and CEO, Zoo Atlanta; Ms. Kathryn Fuller, President,
WWF; Dr. Lixing Lao, Assistant Professor, Family Medicine,
University of Maryland; Ms. Dorene Bolze, Senior Policy
Analyst, WCS; Dr. John Seidensticker, Curator of Mammals,
National Zoological Park; Mr. Richard M. Parsons, Director,
Department of Wildlife Conservation and Governmental Affairs,
Safari Club International; and Dr. Thomas Foose, Program
Director, International Rhino Foundation. In his testimony,
Secretary Babbitt stated that ``passage of H.R. 2807 would
complement and enhance our ongoing conservation efforts under
the Rhinoceros and Tiger Conservation Act, the Pelly Amendment,
CITES, and other domestic and international measures. We
believe that the Rhino and Tiger Product Labeling Act will help
continue the global leadership role of the United States in
rhino and tiger conservation.'' In his testimony, Dr. Terry
Maple, the President-Elect of the American Zoo and Aquarium
Association, said that ``H.R. 2807 must be enacted into law.
Passage of H.R. 2807 combined with increased appropriations for
law enforcement will certainly be a bold step by the United
States in ending the slaughter of the rhinoceros and tigers in
the world.'' Finally, Ms. Dorene Bolze testified that ``this
bill offers a valuable tool to expedite law enforcement efforts
to reduce the trade in illegal tiger and rhino-based TCM
products.''
On February 12, 1998, the Subcommittee on Fisheries
Conservation, Wildlife and Oceans considered H.R. 2807 in a
markup session. At that time, Mr. Saxton offered an amendment
in the nature of a substitute that made a number of technical
changes in the legislation and worked to ensure that the
Department of the Interior had the proper enforcement tools to
confiscate these Chinese medicines at our borders. Congressman
Sam Farr (D-CA) offered an amendment to the substitute that
emphasized the need for an educational campaign to discourage
the use of these products. This amendment was adopted by voice
vote. The Saxton amendment, as amended, was adopted by voice
vote and the bill was favorably reported to the full Committee
on Resources by voice vote.
On March 11, 1998, the full Resources Committee met to
consider H.R. 2807. No further amendments were offered and the
bill was ordered favorably reported to the House of
Representatives by voice vote.
Committee Oversight Findings and Recommendations
With respect to the requirements of clause 2(l)(3) of rule
XI of the Rules of the House of Representatives, and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee on Resources' oversight findings and
recommendations are reflected in the body of this report.
Constitutional Authority Statement
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact H.R. 2807.
Cost of the Legislation
Clause 7(a) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs which would be incurred in carrying out
H.R. 2807. However, clause 7(d) of that rule provides that this
requirement does not apply when the Committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 403 of the Congressional Budget Act of 1974.
Compliance With House Rule XI
1. With respect to the requirement of clause 2(l)(3)(B) of
rule XI of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, H.R.
2807 does not contain any new budget authority, credit
authority, or an increase or decrease in tax expenditures.
According to the Congressional Budget Office, enactment of H.R.
2807 could affect federal revenues and direct spending, but the
effect of any such changes would be minimal and largely
offsetting.
2. With respect to the requirement of clause 2(l)(3)(D) of
rule XI of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform and
Oversight on the subject of H.R. 2807.
3. With respect to the requirement of clause 2(l)(3)(C) of
rule XI of the Rules of the House of Representatives and
section 403 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
2807 from the Director of the Congressional Budget Office.
Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 17, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget office has
prepared the enclosed cost estimate for H.R. 2807, the Rhino
and Tiger Product Labeling Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts for this
estimate are Deborah Reis (for federal costs), Marjorie Miller
(for the state and local impact), and Lesley Frymier (for the
private-sector impact).
Sincerely,
James L. Blum,
(For June E. O'Neill, Director).
Enclosure.
H.R. 2807--Rhino and Tiger Product Labeling Act
CBO estimates that implementing H.R. 2807 would have no
significant impact on the federal budget. The bill could affect
both federal revenues and direct spending; therefore, pay-as-
you-go procedures would apply. The effect of any such changes,
however, would be minimal and largely offsetting.
H.R. 2807 would prohibit any person from selling,
importing, or exporting products containing (or labeled as
containing) any substance derived from rhinoceroses or tigers.
The bill would establish both criminal and civil penalties to
be imposed on anyone who violates the prohibition as well as
rules for seizing and disposing of certain assets used by
criminal offenders. The bill's fines and asset forfeiture
provisions would be similar to those imposed under the Lacey
Act, which currently prohibits sales, imports, and other
transactions involving endangered species. Finally, H.R. 2807
would direct the Secretaries of the Interior, the Treasury, and
Transportation to enforce the legislation in the same manner as
they enforce the Endangered Species Act of 1973.
Because the activities prohibited by H.R. 2807 are already
unlawful, CBO expects that implementing the bill would not
increase the enforcement responsibilities or discretionary
expenses of federal agencies. Instead, the bill would
facilitate existing enforcement efforts by relieving agencies
of the responsibility of proving that products labeled as
containing rhinoceros or tiger parts actually contain them.
The bill could affect revenues from civil and criminal
fines and from proceeds from sales of forfeited assets. The
direction of any change, however, is uncertain. On the one
hand, revenues could increase if the sale and export of
prohibited (or falsely labeled) items does not change and
federal enforcement agencies are able to collect more fines
under the broader language of the bill. On the other hand,
revenues could fall if the bill induces some sellers and
importers to curtail their activities. In either event, CBO
estimates that any increases or decreases in revenues would be
less than $500,000 annually. Moreover, such changes would be
offset by respective decreases or increases in direct spending
from the crime victims fund (where criminal fines are
deposited) or the resource management account of the U.S. Fish
and Wildlife Service (where civil fines and proceeds from
forfeitures are deposited).
H.R. 2807 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act of 1995
because the bill would impose no new enforceable duties. The
bill's prohibition on the sale, import, or export of products
containing or purporting to contain substances derived from
rhinoceroses or tigers would simply facilitate the enforcement
of existing prohibitions on such activities. The bill also
would have no impact on the budgets of state, local, or tribal
governments.
The CBO staff contacts for this estimate are Deborah Reis
(for federal costs), Marjorie Miller (for the state and local
impact), and Lesley Frymier (for the private-sector impact).
This estimate was approved by Robert A. Sunshine, Deputy
Assistant Director for Budget Analysis.
Compliance With Public Law 104-4
H.R. 2807 contains no unfunded mandates.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italic, existing law in which no change is proposed
is shown in roman):
RHINOCEROS AND TIGER CONSERVATION ACT OF 1994
* * * * * * *
SEC. 4. DEFINITIONS.
In this Act--
(1) * * *
* * * * * * *
(4) ``Secretary'' means the Secretary of the
Interior; [and]
(5) ``Administrator'' means the Administrator of the
Agency for International Development[.]; and
(6) ``person'' means--
(A) an individual, corporation, partnership,
trust, association, or other private entity;
(B) an officer, employee, agent, department,
or instrumentality of the Federal Government,
of any State, municipality, or political
subdivision of a State, or of any foreign
government;
(C) a State, municipality, or political
subdivision of a State; or
(D) any other entity subject to the
jurisdiction of the United States.
* * * * * * *
SEC. 7. PROHIBITION RELATING TO PRODUCTS CONTAINING OR PURPORTING TO
CONTAIN ANY SUBSTANCE DERIVED FROM A RHINOCEROS OR
TIGER SPECIES.
(a) Prohibition.--No person shall sell, import, or export, or
attempt to sell, import, or export any product, item, or
substance intended for human consumption containing or
purporting to contain any substance derived from any species of
rhinoceros or tiger.
(b) Penalties.--
(1) Criminal penalty.--Any person who knowingly
violates subsection (a) shall be fined under title 18,
United States Code, imprisoned for not more than 1
year, or both.
(2) Civil penalties.--Any person who knowingly
violates, and any person engaged in business as an
importer, distributor, or retailer of products, items,
or substances purporting to contain substances derived
from any species of rhinoceros or tiger who violates
subsection (a) may be assessed a civil penalty by the
Secretary of not more than $25,000 for each violation.
A civil penalty under this paragraph shall be assessed,
and may be collected, in the manner in which a civil
penalty under the Endangered Species Act of 1973 may be
assessed and collected under section 11(a) of that Act
(16 U.S.C. 1540(a)).
(c) Forfeitures.--Any product, item, or substance sold,
imported, or exported, or attempted to be sold, imported, or
exported, contrary to the provisions of this Act or any
regulation made pursuant thereto shall be subject to forfeiture
to the United States. All equipment, vessels, vehicles,
aircraft, and other means of transportation used to aid the
selling, exporting, or importing, or an attempt to sell,
export, or import, of any product, item, or substance in
violation of this Act or any regulation issued pursuant to this
Act, shall be subject to forfeiture to the United States upon
conviction of a criminal violation pursuant to subsection (b).
All laws relating to the seizure, forfeiture, and condemnation
of a vessel for violation of the customs laws, the disposition
of such vessel or the proceeds from the sale thereof, and the
remission or mitigation of such forfeiture, shall apply to the
seizures and forfeitures incurred, or alleged to have been
incurred, under this Act, insofar as those laws are applicable
and not inconsistent with this Act; except that all powers,
rights, and duties conferred or imposed by the customs laws
upon any officer or employee of the Treasury Department shall,
for the purposes of this Act, be exercised or performed by the
Secretary or by such persons as the Secretary may designate.
(d) Regulations.--The Secretary, after consultation with the
Secretary of the Treasury, the Secretary of Health and Human
Services, and the United States Trade Representative, shall
prescribe regulations that are necessary and appropriate to
carry out the purposes of this Act.
(e) Enforcement.--The Secretary, the Secretary of the
Treasury, and the Secretary of the department in which the
Coast Guard is operating shall enforce this Act in the same
manner such Secretaries carry out enforcement activities under
section 11(e) of the Endangered Species Act of 1973 (16 U.S.C.
1540(e)).
SEC. [7.] 8. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Fund
$10,000,000 for each of fiscal years 1996, 1997, 1998, 1999,
and 2000 to carry out this Act, to remain available until
expended.