UNITED STATES TARIFF COMMISSION 

WOMEN'S LEATHER SHOES: 

WORKERS OF CARESSA, INC., MIAMI, FLA. 

Report to the President 

Worker Investigation No. TEA-W-32 

Under Sections 301 (c) (2) of the Trade Expansion Act of 1962 

TC Publication 353 

Washington, D. C. 

January 1971 
tJNlTED STATES TARIFF CbMMtsstON 

Glehn W. Sutton 

Bruce E. Clubb 

Will E. Leonard, Jr. 

George M. M·0'0re 

Kenneth R. Mason, Sec:retary 

--~----~~~~-----·-~---~----~--

Address all communications to 

United States Tariff Commission 

Washington, D. C. 20436 

. . 

-----------------------
CONTENTS 

Page 

Report to the President---... --..;_-~-------------------------.------ l 

Finding of the Commission---------------------~------------ 2 

Considerations supporting the· Commissi.on' s finding---------- 3 

Dissenting views of Commissioner Leonard-------------------- 7 

Information obtained in the investigation: 

Description of articles under investigation----------------- A-1 

U.S. tariff treatment---------------------------------~----- A-7 

U.S. consumption------------~------------------------------- A-9 

U.S. production: · 

Volume-------------------------------------------------- A-12 

Prices-------------------------------------------------- A-14 

U.S. imports: 

Volume-------------------------------------------------- A-15 Prices---------------------------------------------~---- A-16 

Caressa, Incorporated: 

Appendix: 

Table l. 

Table 2. 

Table 3. 

* * * * * * * 

U.S. rates of duty applicable to women's 

and misses' footwear of types provided 

for in specified TSUS items, Jan. 1, 

1934, and GATT concessions------------------ A-27 

Women's and misses' dress shoes: U.S. 

tariff rates and estimated imports, 

by types, 1965-69, January-June 1969, 

and January-June 1970----------------------- A-28 

Nonrubber footwear for women and misses: 

U.S. imports, by type of upper, and 

by specified TSUSA items, 1965-69, 

January-June 1969, and January-June 1970---- A-29 

Note.--The whole of the Commission's report to the President may 

not be made public since it contains certain information that would 

result in the disclosure of the operation of an individual firm. This 

published report is the same as the report to the President, except 

that the above-mentioned information has been omitted. Such omissions 

are indicated by asterisks. 

REPORT TO THE PRESIDENT 

To the :E>resident: 

U.S. Tariff Commission, 

January 5, 1971 

In accordance with section 30l(f)(l) of the Trade Expansion Act of 

1962 (76 Stat. 885), the U.S. Tariff Commission herein reports the results of an investigation, made under section 30l(c)(2) of the Act, in 

response to a petition filed by a group of workern. 

On November 6, 1970, Messrs. Reynaldo Flores, Juan Bolanos and 

Fortunato S. Cortina filed a petition for determination of eligibility 

to apply for adjustment assistance on behalf of workers formerly employed at Caressa Shoe, Inc., of Miami, Florida. 

On November 13, 1970, the Commission instituted an investigation 

(TEA-W-32) to determine whether, as a result in major part of concessions granted under trade agreements, articles like or directly ~ompetitive with the women's leather shoes produced by the aforementioned 

firm are being imported into the United States in such increased 

quantities as to cause, or threaten to cause, unemployment or under~ 

employment of a significant number or proportion of the workers of 

that firm. The public notice of the receipt of the petition and of 

the institution of the investigation was given by publication in the 

Federal Register November 19, 1970 (35 F.R. 17809). No hearing was 

requested and none was held. 

The information in this report was obtained principally from the 

petitioners, the officials of Caressa Shoe, Inc., the Florida State 

Employment Service, and Commission files. 
2 

Finding of the Commission 

On the basis of its investigation, the Commission 1/ finds 

(Commissioner Leonard dissenting) that, as a result in major part of 

concessions granted under trade agreements, articles like or directly 

competitive with the women's leather shoes produced by Caressa Shoe, Inc. 

are being imported into the United States in such increased quantities 

as to cause, or threaten to cause, the unemployment or underemployment 

of a significant number or proportion of the workers of that firm. 

1/ Commissioner Sutton did not participate in the decision. 
3 

Considerations Supporting the Commission's Finding 

This investigation has been conducted in response to a petition 

filed by workers of Caressa, Inc. of Miami, Florida. Caressa has been 

a domestic producer and importer of women's leather shoes. At its Miami 

plant, the company produced medium priced women's leather dress shoes; 

the shoes were retailed under the Caressa label in the United States in 

the $20 to $24 retail price range. In 1968 Caressa acquired a half interest in an establishment in Spai~, and began to import a line of women's 

leather shoes from that establishment; the imported footwear was slightly 

lower priced than the domestically produced Caressa line, and was marketed under a different label. In August 1970, through an affiliate, Caressa acquired a second Spanish establishment which produced women's shoes 

similar to those manufactured in Miami to be marketed in the United 

States under the Caressa label. At about this time, Caressa shut down 

its Miami plant; production of footwear ceased there in mid-August • 

• 

The petitioning workers allege that the great increase in imports of 

foreign-made women's shoes caused Caressa to seek a foreign source for 

its shoes, resulting in the shutdown of the Caressa plant and unemployment of the workers formerly employed there. Accordingly, the petitioning workers contend that they should be ruled elieible to apply 

for adjustment assistance under section 301 of the Trade Expansion Act. 

We agree. 

Un:ier section JOl{c)(2) of the Trade Expansion Act, four requirements must be met for the Commission to make an affirmative detenninati on: 

(1) Imports must be increasing; 
4 

(2) the increase in imports must be a result in major 

part of concessions granted under trade agreements; 

(3) the workers concerned must be unemployed or underemployed, or threatened with unemployment or 

underemployment; and 

(4) the increased imports resulting in major part from 

trade-agreement concessions must be the major 

factor causing or threatening to cause the 

unemployment or underemployment. 

We believe that each of these recuirements has been met with respect 

to the peti+,ion of the workers fonnerly employed at Caressa. 

Increased imEorts in major part a result of 

trade-agreement concessions 

The issues relating to the first and second reouirements set 

forth above are similar in this investigation to those that faced the 

Commission in an earlier investigation--that of a petition filed by 

workers at Lemar Shoes, Inc. (TEA-W-18). Both Lemar and Caressa prod.uced women's leather dress shoes, chiefly of cement construction; the 

footwear produced by the two companies was marketed at retail at nearly 

identical price ranges--$19 to $25 for the Lemar shoes and $20 to $24 

for the Caressa shoes •. In the Lemar case, which we decided in mid-1970, 

we concluded that imports of footwear like or directly competitive with 

those produced by Lemar had increased and that the increased imports 

were in major part the result of trade-agreement concessions. For the 

reasons set forth in the Lemar case, 1/ we reach a similar conclusion 

in .. th.e instant case. 

17 Women's a~d Misses' Dress Shoes with Leather Vi 

Utpers • • • mar Shoes, nc •••• , T •• Plib. 323, June r,~. 
5 

Unemployment 

During the period 1965-69, annual employment at Caressa's Miami 

plant averaged about 440 production workers. In the first half of 1970,-

however, output at the plant was curtailed, and the number of production 

workers averaged only about half that of the preceding 5 years. In July 

1970, after a customary vacation shutdown of a week's duration, the work 

force was reduced to only a few workers; those few were retained to complete the shoes in process, arxi ha~e since been laid off. The third requirement thus is satisfied--the Caressa workers are unemployed. 

Imports the major factor 

The adverse impact of imported goods on the-unemployment of a 

petitioning group of workers is especially clear in this case. In 

recent years, U.S. imports of footwear have expanded greatly, both in 

absolute volume and relative to U.S. consumption. Taking imports of 

women's ~nd misses' dress shoes alone, imports probably supplied nearly 

a fifth of domestic consumption in 1970, compared with only 2 percent 

as recently as 1965. As we have previously held, moreover, the types 

of imported footwear that are appropriately regarded as like or directly competitive with danestically produced women's dress shoes inelude a variety of dress and casual styles. !/ As a competitive response to the increasing imports, Caressa itself decided to import--

first a somewhat different line of women's dress shoes than produced 

at Miami and then footwear that directly replaced the Caressa line. 

In the absence of the increased imports, production would certainly 

have continued at Caressa's Miami plant, and the workers would not 

have been laid off. We conclude, therefore, that the fourth requirement has been'rnet. 

1/ Ibid. 
6 

Conclusion 

Since all of the requirements established by section 30l(c)(2) 

have been satisfied, we have made an affirmative determination. 
7 

Dissenting views of Commissioner Leonard 

My determination is in the negative because all the criteria 

established by section 30l(c)(2) of the Trade Expansion Act of 1962 

have not been met. Before an affirmative determination can be made 

in this case, each of the following conditions has to be satisfied: 

(1) Footwear like or directly competitive with the 

women's and misses' footwear produced at the 

Miami plant of Caressa, 'Inc., is being imported 

in increased quantities; 

(2) the increased imports are in major part the result 

of concessions granted under trade agreements; 

(3) a significant number or proportion of the petitioning workers are unemployed or underemployed or 

are threatened therewith; and 

(4) the increased imports (resulting in major part 

from trade-agreement concessions) have been 

the major factor causing or threatening to 

cause the unemployment or underemployment. 

Following the same views I expressed, along with Chairman Sutton 

and Commissioner Newsom, in the cases involving the workers at four 

other plants where women's dress shoes were made, 1/ I find that 

condition (2) has not been met in the instant case. Therefore, I am 

compelled to make a negative determination .• 

In this case, I have concluded that the imported footwear like 

or directly competitive with the footwear formerly manufactured by 

the petitioning workers consists of the types admitted under TSUS 

1/ U.S. Tariff Commission, Women's and Misses' Dress Shoes ... , 

TC-Publication 323, June 1970, p. 4 ff. 
8 

items 700.20, 700.43, 700.45, and 700.68. Such imported footwear has 

consisted predominantly of dress shoes made by the cement process and 

selling at retail at $8 to $20. Thus, the imported shoes so identified 

are largely of the same type as, and sell in a price range competitive 

with, the dome·stic footwear covered in this investigation. After again 

considering all the factors that have contributed to the uninterrupted 

rise in imports of women's dress shoes in recent years, I hold to my 

earlier opinion that changes in market demand and cormnercial factors 

encouraging imports, rather than the slight, gradual reductions in 

duty shown in table 1 of the appendix to this report, were responsible 

for the increased imports of the footwear in question. 
A-1 

INFORMATION OB':CAINED IN.THE INVESTIGATION 

Description of Articles Under Investigation -

The outpu.t·in recent years of-the establishment in which the 

petitioning workers were employed consisted of footwear for women 1/ in 

- ' styles known in the trade as dress shoes. Most of the footwear was 

made by the cement process and had uppers of leather; the small remainder included leather footwear made by the turn or turned process 

and before 1969 some had fabric uppers. 

The term "dress shoes," originally limited only to shoes worn on 

formal occasions, is now used to describe footwear of the types 

generally worn for business and social activities; women's shoes 

intended for formal wear, which are regarded here also as "dress shoes," 

are now frequently referred to as evening shoes, slippers, or sandals. 

Generally the term "dress shoes" does not refer to footwear suitable 

for active sports, beach wear, other leisure activities for which 

casual attire is worn, or occupations requiring substantial amounts of 

walking or standing. The principal features of women's shoes that 

determine the activities for which a particular pair is suitable are 

the cut of the uppers, the style and height of the heels, the material 

used for the uppers, the kind of ornamentation, and the material and 

construction of the sole. 

1/ In this report, as in the TSUS, the terms "women" and "misses" 

are used to differentiate size categories of footwear, not age of 

wearer, as follows: "women" refers to footwear in American women's 

sizes 4 and larger and "misses" refers to American misses' sizes 

12-1/2 and larger but not as large as American women's size 4. Women's 

sizes, which account for 90 percent of the total annual domestic output of women's and misses' shoes, are estimated to account for 95 percent of the total annual imports of women's and misses' shoes. 
A-2 

For many years ~he principar .. type of dress ~ "'"~ ". . .... 

U~ted States was.~e classic style pump--a 

shoe worn by women in 

the closed-toe, closed-back, 

slip-on shoe held to the foot without fasteners (such as laces, buckles, 

buttons, or snaps), with light-weight soles,~and with heels of 2 inches 

or higher. Pumps have been made in a wide variety of styles distinguished by different pattern treatments (i.e., cut) of the uppers, the 

material (or combination of materials) of the uppers, and the amount 

and kind of ornamentation. Some pump-like shoes have been made with 

open toes and some with open backs. Other styles of dress shoes popular from time to time have included both pump-like types with various 

kinds of straps across the instep and high-heeled sandals (i.e., 

footwear with uppers consisting wholly or predominantly of straps or 

thongs). 

The materials used for the uppers of dress shoes are usually finer 

(i.e., less sturdy), and the soles lighter in weight, than those of 

footwear intended for active sports or occupations requiring substantial 

amounts of walking or standing. Uppers may be calf, kid, or reptile 

leathers, and fabrics of silk, rayon, linen, or metallics--such as 

peau de soie, satin, brocade, or velvet; or supported vinyls or other 

plastics. 

For several decades the principal method of attaching the outsole 

to women's and misses' shoes has been the cement process whereby the 

outsole (or midsole, if any) is affixed to the upper by an adhesive 

without sewing. An estimated 80 percent of total U.S. output of 

women's and misses' shoes in recent years (and probably an even higher 
A-3 

percentage of domestic dress shoes) have been made by t~~ cement 

process. The cement process permits narrow edges on the outside to 

give a trim appearance and produces a lighter and more flexible shoe 

than other processes except the turn (or turned) process. In the turn 

process, which is currently used in very minor degree in the United 

States to produce dress shoes, 1./ the footwear is initially lasted 

inside out and then turned right side out for the finishing operations. 

The Caressa establishment in which the petitioning workers were 

employed specialized in women's leather dress pumps, made by the cement 

process, in modified classic, but fashionable, styles. In recent years 

Caressa Inc. altered its shoe designs, without going to extremes, in 

an effort to keep pace with the changes in apparel fashions that are 

noted in the section of this report on U.S. consumption. The firm's 

domestically produced shoes sold at $20 to $24 a pair retail in 1969 

and 1970. For a detailed account of the articles produced by Caressa 

Inc. in its plant in the United States, see the section of this report 

relating to that plant. 

To the petitioners, imported footwear "like or similar" to the 

shoes formerly produced at Caressa's Miami plant includes turn or turned 

footwear for women and misses entered under TSUS item 700.20 and 

women's cement process footwear with a foreign (eA-port) value of over 

$2.50 a pair entered under TSUS item 700.45 (and reported separately 

1/ Although the Caressa establishment in Miami produced a few 

thousand pairs of women's shoes by this process, the turn process has 

· been used in th~ United States in recent years principally to produce 

footwear of the types reported in the official U.S. production statistics as slippers for housewear (SIC product code 3142). 
A-4 

under TSUSA item 700.4540). In addition, they express the belief that 

shoes with supported vinyl uppers entered under TSUS item 700.55 1/ 

are "directly competitive with the shoe formerly produced by Caressa." 

Moreover, they suggest that women's cement process shoes with a foreign 

value of not over $2.50 a pair that are entered under TSUS item 700.43 

(Le., TSUSA item 700. 4340) may also be considered as directly competitive with the more expensive shoes produced by Caressa. As explained 

briefly in the following paragraphs, the types of footwear classifiable 

under these four TSUS items--700.20, 700.43, 700.45, and 700.55--vary 

with respect to material, method of construction, price line, and/or 

style. 

Imported footwear that closely resembles, in appearance, method 

of construction, and price lines, the women's dress shoes formerly 

produced at Caressa's Miami plant is c"iassified for duty purposes under 

TSUS item 700.45. Imports entered under that TSUS item, which provides 

for footwear having a foreign (export) value of over $2.50 a pair, as 

well as under TSUS item 700.43, which provides for footwear valued not 

over $2.50, consist predominantly of footwear for women in a wide 

range of styles, types, and prices. About half of the combined imports 

under these two items in 1968 and 1969 consisted of women's and misses' 

sandals having a selling price at retail in the range of $1.99 to $6.99 

a pair; the remainder probably consisted predominantly of womenls cementprocess dress shoes of moderate prices (i,e.; in the retail price range 

1/ Imports of women's footwear with supported vinyl uppers a.re reported 

under TSUSA item 700.5545. 
A-5 

of $8 to $20 a pair) but included sturdy types with vuleanized or 

injection-molded soles and expensive high-fashion types for leisure 

wear as well as formal and other dress wear. 

Imported women's and misses' leather footwear made by the turn or 

turned process and dutiable under TSUS item 700.20 does not differ 

significantly in appearance or price from the leather dress shoes 

formerly made by the cement process in Caressa's Miami plant. Imported 

shoes with uppers of peau de soie, velvet, and other kinds of fabrics 

used to made dress shoes for women--a type of footwear produced in 

small quantities in Caressa's Miami plant in recent years--have been 

admitted under TSUS item 700.68. 1/ U.S. imports of such footwear, 

which have been negligible, consisted predominantly of high fashion 

styles selling at retail for $30 or more a pair. 

Information available to the Commission indicates that women's 

and misses' footwear with supported vinyl uppers that has entered 

under TSUS item 700.55 in recent years has consisted predominantly of 

two groups of footwear: (1) Street shoes of sturdy construction, 

1/ TSUS item 700.68 provides for women's and misses' leather-soled 

footwear with uppers of fibers that have a foreign (export) value of 

over $2.50 a pair. Imports of women's and misses' dress shoes having 

uppers of fibers, soles of leather, and a foreign value of not over 

$2.50 per pair (provided for in item 700.66) are believed to have been 

negligible, if any. Also,imports of dress shoes having uppers of 

peau de soie (and other "dress" fabrics) and soles of plastics, which 

are classifiable under TSUS item 700.60 regardless of value, are 

known to be virtually nil. In recent years, imports admitted under 

item 700.60 have consisted principally of sneakers and have included 

significant amounts of folding slippers, scuffs, and so-called indooroutdoor slippers of types produced in the United States by firms 

manufacturing house slippers. 
A-6 

produced in a single width for each particular length, for sale at $3 

to $6 a pair at self-service counters in variety stores, discount stores, 

and department store basements and (2) folding slippers and sandals, 

all selling at retail for less than $1 a pair. Virtually no imports 

of women's dress shoes of the type and quality produced by Caressa Inc. 

in the United States have been entered under TSUS item 700.55. 
A-7 

U.S. Tariff Treatment 

In the Tariff Act of 1930, women's dress shoes of the type pro4uced 

at the Caressa plant were originally dutiable under paragraph 1530(e) 

at 20 percent ad valorem if in chief value of leather (except 

if having fiber uppers) and at 35 percent ad valorem if having 

fiber uppers. Supported vinyl was not used for shoe uppers until the 

late l940's or early 1950's. When footwear with supported vinyl uppers 

was imported during the period before the new tariff schedules (the 

TSUS) became effective on August 30, 1963, it was generally dutiable, 

by virtue of the similitude provisions of paragraph 1559, at a rate 

provided for "similar" leather footwear in paragraph 1530(e). 

From 1930 until the first stage of the Kennedy Round of tariff 

concessions under the General Agreement on Tariffs and Trade (GATT) 

became effective on January 1, 1968, the only concessions granted by 

the United States on the footwear described in the preceding paragraph 

affected the rates applicable to turn or turned shoes of leather and 

to shoes with fiber (fabric) uppers. The rate on the turn or turned 

shoes (now TSUS item 700.20) was first reduced, pursuant to section 

336 of the Tariff Act of 1930, from 20 percent ad valorem to 10 percent, effective January 1, 1932. The 10-percent rate, which was bo"Wld 

against increase in a concession granted to Switzerland, effective 

February 15, 1936, was reduced to 5 percent in a GATT concession, 

effective May 30, 1950. The rate on shoes with fabric uppers was reduced from 35 percent ad valorem to 20 percent in two GATT concessions--one, on footwear with soles of leather (now TSUS items 700.66 
A-8 

and 700.68), effective April 21, 1948, and the other on footwear with 

soles of rubber or plastics (now TSUS item 700.60), effective 

S~ptember 10, 1955. 

Table 1 (in the appendix) shows for footwear of the types now 

dutiable under items 700.20, 700.43, 700.45, and 700.68 the reductions 

in rates of duty resulting from trade agreement concessions granted 

under the GATT. These are the four TSUS items under which women's 

dress shoes with leather or fabric uppers are known to have been 

ad;mitted in recent years. Table 1 also shows the corresponding inform~tion for footwear of the types now dutiable under item 700.55, 

700.60, and 700.66. In recent years imports of women's dress shoes , 

ad;mitted under these three classes combined are believed to have 

tQtaled no more than 100,000 pairs and to have consisted almost 

eqtirely of footwear with supported vinyl uppers under item 700.55. 

Table 2 shows for the years 1965-69 and for the first 6 months 

of 1969 and 1970 estimated U.S. imports of women's shoes and misses' 

snpes admitted under the TSUS items mentioned above and the applicable 

r~tes of duty. 
A-9 

U.S. Consumption 

During the period 1965-69 apparent annual U.S. consumption of 

women's and misses' dress shoes is estimated to have followed an irregular trend, reaching a peak of 231 million pairs in 1968; consumption 

then declined to 205 million pairs in 1969. !./ It amounted to 109 

million pairs in the first half of 1969 and 107 million pairs in the 

corresponding period in 1970. In the period studied, the share of 

consumption consisting of imports increased without interruption--from 

2 percent in 1965 to 14 percent in 1969 and to 17 percent in the first 

half of 1970. Consumption of women's and misses' dress shoes is shown 

for 1965-69 and for the first half of 1969 and 1970 in the following 

tabulation (in millions of pairs): 

Ratio 

:(percent) Apparent Period Production Imports cons ump-

:of imports 

ti on 

to }j : apparent 

: consumEtion 

1965-------------------: 200 4 204 

1966-------------------: 206 7 213 

1967-------------------: 188 11 199 

1968-------------------: 210 21 231 1969-----~-------------: 177 28 205 

January-June'.""-

1969-----------------: 95 14 109 

1970-----------------: 89 18 107 

!J Estimated production plus estimated imports. In recent years, 

exports have averaged about one million pairs annually. 

2 

3 

6 

9 

14 

13 

17 

The annual variation in consumption of women's and misses' dress 

shoes in recent years is explained by several factors, but is largely 

attributable to changes in fashion. Shoe styles have kept pace with 

!./Data on consumption (production plus imports) are estimated on 

the basis of information supplied to the Commission during this and 

previous investigations. 
A-10 

changes in women's apparel fashions which dictate or influence footwear designs. New materials (or existing materials not previously used 

for footwear) and new manufacturing processes have resulted in a wide 

variety of qualities and prices. New marketing techniques have facilitated retail distribution. Further, the changing age structure of the 

population, the growth in per capita income, and the increase in 

leisure activities, have all contributed to greater consumer interest 

in many varieties of women's shoes for both dress and leisure activities. 

For example, there has been a growing propensity to utilize loafers, 

sandals, slippers, and--very recently--clogs in lieu of both dress 

shoes and traditional styles of casual or play shoes, such as' sneakers 

and footwear of wedge-type construction. For several years boots have 

also been gaining favor as a fashionable substitute for dress shoes. 

In the late 1960's, footwear with heels of 2 inches or higher 

lost favor, and the low-heel, heavy-appearing "monster" styles became 

increasingly popular as the proper accessory for the styles of dress 

then current (i.e., miniskirts). Many consumers, however, continued 

to desire the m9re traditional styles of dress pumps. The higher heel 

was the principal new feature in shoe styling during 1970. For the 

midi-length clothes, pumps with higher heels and high-cut vamps 

(uppers) were produced; and for the increasingl~ accepted long skirts 

for evening wear and pantsuits for street, office, and formal attire, 

the higher heeled shoes with more completely covered vamps became 

popular. The new styles featured higher tongues, flaps, or straps--

often ornamented with metal, rhinestones, gold cord, or other edges--

113-ces;or buttons. 
A-11 

In 1969·,. manufacturers continued a high level Of output of the 

heavier-appearing shoes popular the year before but consumers' acceptance of such styles was disappointing. In 1970, acceptance of the 

pumps designed as accessories to the midi-length clothing was also 

disappointing in some markets. The rising cost of living and the 

business slowdown were also responsible, in part, for higher retail 

inventories and declining sales in some retail outlets in both 1969 

and 1970. 
U.S. Production 

Volume 

During the past decade, annual U.S. production of women's and 

misses' shoes, including dress, service, and play shoes (as reported in 

official statistics .!_/) declined irregularly, as shown in the following 

tabulation (in millions of pairs): 

Year Production Year Production 

1960------- 320 1967------- 286 

1961------- 313 1968------- 317 

1962------- 325 1969------- 267 

1963------- 311 Jan. -June--

1964------- 308 1969----- 143 

1965------- 316 1970----- 134 

1966------- 320 

Annual domestic output of women's and misses' shoes during the 

first seven years of the past decade (i.e., during 1960-66) was fairly 

stable; the greatest year-to-year change in output during tha~ period 

was 14 mil lion pairs. As noted in the Commission's report of January 

1969, 2/ the decline in production in 1967 was induced in part by the 

drastic style changes in feminine apparel. Retailers delayed placing 

orders for the new styles of footwear and producers were also late in 

"retooling," which caused a backlog of orders. Increasing consumer 

acceptance of the new styling during 1968 was a factor in the increased 

output in that year. In 1969, production again declined when many 

consumers did not_ accept the styles of footwear offered. Trade sources 

1/ In SIC No. 3141 (footwear, except house slippers and rubber footwear). These data do not include shipments from Puerto Rico to continental United States, which increased from 2.8 million pairs in 1965 

and 1966 to 5.5 million pairs in 1968 and 1969. 

2/ Nonrubber Footwear, TC Publication 276, p. 35. 
A-13 

reported that at least 50 footwear plants manufacturing women's and 

misses' shoes discontinued operations in 1969. 

Data on U.S. production of dress shoes are not reported separately in the statistics published by the Bureau of the Census. 

Since 1965, however, data are available on production of women's and 

misses' shoes (1) with a wedge heel or with an open toe and a heel 

not over 1 inch, which would generally be considered casual shoes or 

sandals, and (2) "other" shoes, which would consist principally of 

dress shoes. 

U.S. production of women's and misses' shoes, by category, is 

shown for 1965-69, January-June 1969, and January-June 1970, in the 

following tabulation (in millions of pairs): 

Period Total 

1965----------------------: 316 

1966----------------------: 320 

1967----------------------: 286 

1968----------------------: 317 

1969----------------------: 267 

January-June--

1969--------------------: 143 

1970--------------------: 134 

Shoes with Other shoes 

wedge heel .~~~~-=-~~---,.~~ 

: Dress shoes 

or open toe: Total : (estimated) l/ 

40 276 200 

40 280 206 

32 254 188 

36 281 210 

26 241 177 

14 129 95 

14 120 89 

As shown above, estimated production of women's dress shoes declined by 18 million pairs--or 9 percent~-from 1966 to 1967; it rose 

1/ From information supplied to the Commission, dress shoes are 

believed to account for about two-thirds of the annual output. 
A-14 

to a peak of 210 million pairs in 1968; declined to 177 million pairs 

in 1969--a drop of 16 percent. Production was estimated at 89 million 

pairs during the first six months of 1970 compared with 95 million 

pairs in the same months of 1969, representing a further decline of 

6 percent. 

Prices 

Information obtained in connection with an investiga~ion of 

nonrubber footwear conducted by the Tariff Commission in 1970 (investigation No. TEA-I-18) indicates that 10 percent of the U.S. manufacturers' 

sales in 1969 of domestically produced women's footwear (except with 

wedge heel or open toe and heel of not over l inch) were priced 

at $10.21 a pair or over--the wholesale price range of the leather 

dress shoes produced at Caressa's Miami plant. In 1967, a smaller 

proportion, 4 percent, of U.S. manufacturers' sales of such footwear 

was in that price range. 

The distribution of manufacturers' sales of domestic women's 

footwear (except with wedge heel or open toe and heel of not over l 

inch) is shown in the following tabulation for 1967 and 1969 (in 

percent): 

Manufacturers' selling price per : 1967 1969 

pair, f .o.b. plant or warehouse : 

Less than $1.81-------------------: 2 2 

$1.81 to $2.40--------------------: 6 5 

$2.41 to $3.00--------------------: 14 3 

$3.01 to $4.20--------------------: 35 24 

$4.21 to $6.00--------------------: 14 13 

$6.01 to $7.80--------------------: 16 15 

$7.81 to $10.20-------------------: 9 28 

$lO.~~t~~~~=::::::::::::::::::::~~-1~0~~~~---1~8~g 
A-15 

U.S. Imports 

Volume 

As indicated in earlier sections of this report, precise data are 

not available on U.S. imports of women's dress shoes of the types 

produced in the Miami plant of Caressa Inc. However, it is known that 

such imports, which consist principally of leather shoes made by the 

cement process, were negligible in 1960 and were not significant until 

the mid-1960's. 

Imports of women's and misses' dress shoes probably amounted to 

less than 300,000 pairs in 1960, 2 million in 1962, about 4 million 

pairs in 1964, and then increased to an estimated 28 million pairs in 

1969. Imports in the first half of 1970 were about 18 million pairs, 

compared to 14 million pairs in the corresponding period of 1969. 

Estimates of total U.S. imports of women's and misses' dress shoes, 

by types, are shown in table 2 for the years 1965-69, and for the 

first 6 months of 1969 and 1970. Those estimates indicate that imports of such shoes nearly doubled from 1967 to 1968 and then 

increased in 1969 by a third. Imports for the first half of 1970 

increased by 25 to 30 percent above those in the corresponding period 

of 1969. Italy and Spain have been the principal suppliers of the 

women's leather dress shoes of the types considered here. 

In recent years, women's and misses' dress shoes have accounted 

for an increasing share of total U.S. imports of women's and misses' 
A-16 

nonrubber footwear 1/--rising from about 6 percent in 1965 to about 

20 percent in 1969. Table 3 shows, for the years 1965-69 and the 

first half of 1969 and 1970, total U.S. imports of women's and misses' 

nonrubber footwear, by type of upper, and by the TSUSA classifications 

under which most of the imports were admitted. As already indicated, 

women's dress shoes were admitted principally under TSUSA item 

700.4540 (footwear with leather uppers, valued over $2.50 a pair). 

Prices 

Of the estimated imports of 28 million pairs of women's and misses' 

dress shoes in 1969, 2 million pairs, entered under item 700.20, had 

an average dutiable value of $6.50 per pair; 4 million pairs, entered 

under item 700.43, had an average dutiable value of $2 per pair; and 

22 million pairs, under item 700.45, averaged $4.75 per pair. 

It is believed that the bulk of imports of women's dress shoes 

were sold in the retail price range of $8 to $14 a pair; the remainder 

were sold principally in the retail price range of $14 to $20 per pair. 

1/ The term "nonrubber footwear" is used here, as in earlier 

investigatkons by the Commission, to refer to footwear of the kinds 

described in part lA of schedule 7 of TSUS other than in items 700.51, 

700.52, 700.53, and 700.60. 
A-17 through A-24 

Caressa, Incorporated 

* * * * * * * 

A-25 

Appendix 

TSUS 

item Bo. 

700.20 

700.43 

700.45 

700.55 

700.60 

700.66 

700.68 

A-27 

Table l.--u.s. rates of duty applicable to women's and misses' footvear of types provided 

for in specified TSUS items, Jan. l, 1934, and GATT concessions 

Abbreviated description 

.. Leather footwear: 

Turn or turned~----~-----------------: 

"Other" (including cement process): 

: Valued not over $2.50 per pair-------: 

Valued over $2.50 per pair-----------: 

Footwear having uppers of 

supported vinyl. 

Footwear with uppers of fabrics a.ad 

. soles of rubber or p;Lastics. 

Footwear with uppers of fabrics and 

soles of leather: 

Valued not over $2.50 per pair---------: 

Valued over $2.50 per pair-~----------: 

I ~ 

Jan. l, 

1934 y 

Percent 

ad val. 

10% ~ 

20% 

20% 

principally 

20% 1.!J 

35% §) 

35% 

35% 

Rat~ of duty 

GATT concessions gj 

Rate Effective dates 

Percent 

ad val. 

5% 

4% 

3$ 

2.5% 

19% 

18% 

17% 

16% 

15% 

18% 

16% 

14% 

12% 

10% 

12.5% 2.J: 

11% : 

10% 

8.5% 

7% 

-~% 

: 20% Ji 

20% 

19% 

18% 

17% 

16% 

15% 

20% 

18% 

16% 

14% 

12% 

10% 

May 30, 1950-Dec. 31, 

Jan. l, 1968-Dec. 31, 

Jan. l, 1970-Qec. 31, 

Jan. l, ,1972 

Jan. l-Dec. 31, 1968 

Jan. l-Dec. 31, 1969· 

Jan. l-Dec. 31, 1970 

Jan. 1-Dec. 31, l97l 

Jan. l, 1972 

Jan. l-Dec. 31, 1968 

Jan. 1-Dec. 31, 1969 

Jan. 1-Dec. 31, 1970 

Jan. l-Dec. 31, 1971 

Jan. l, 1972 

Aug. 31, 1963-Dec. 31, 

Jan. l-Dec. 31, 1968 

Jan. l-Dec. 31, 1969 

Jan. l-Dec. 31, 1970 

Jan. l-Dec • 31, 1971 

Jan. l, 1972 

Sept. 10, 1955 to date 

Apr. 21, 1948-Dec. 31, 

Jan. l-Dec. 31, 1968 

Jan. l-Dec. 31, 1969 

Jan. 1-Dec. 31, 1970 

Jan. 1-Dec. 31, 1971 

Jan. 1, 1972 

Apr. 21, 1948-Dec. 31, 

Jan. 1-Dec. 31, 1968 

Jan. l-Dec. 31, 1969 

Jan. 1-Dec. 31, 1970 

Jan. 1-Dec. 31, 1971 

Jan. 1, 1972 

1967 

1969 

l97l 

1967 

1967 

1967 

1J Except as noted, the rate on Jan. l, 1934, was the same as the original rate in the Tariff Act of 

1930, effective June 18, 1930. 

gj For concessions granted in the Kennedy Round, effective Jan. 1, 1968, the table shows staged·rates. 

scheduled to become effective up to and including Jan. 1, 1972. 

~ Effective Jan. 1, 1932, the statutory rate of 20% ad valorem was reduced to 1.0% ad valorem, 

pursuant to sec. 336 of the Tariff Act of 1930. !J Supported vinyl was not used for shoe uppers until the late 1940's or early 1950's. When footwear 

with supported vinyl uppers was imported during the 1950's and early 196o•s, it was generally dutiable, 

by. virtue of the similitude provisions of par. 1559, at the rate provided for "similar" leather footwear 

in par. 1530(e). 2J. The trade-agreement rate established in the TSUS, effective Aug. 31, 1963, under authority of the 

Tariff Classification Act of 1962 (Public Law 87-456) to replace the wide range of rates previously 

applica~le to the various types of footwear provided for in this TSUS item. ·-- §)Effective Mar. 3, 1933, the basis for assessing the-duty was changed from foreign (export) value 

to the American selling price {ASP) of the "like or similar domestic product" (T.D. 46158). In 

practice, the ASP basis for assessing the duty has been applied to imports of sneakers, not to imports 

or other types of footwear such as folding slippers and scuffs. 

'lf Based on ASP; see footnote 6. - · 
A-28 

Table 2.--Women's and misses' dress shoes: U.S. tariff rates and estimated imports, by types, 1965-69, January-June 1969, a.pd JanuaryJune 1970 

Year 

1965-------: 

1966-------: 

1967-------: 

1968------..,: 

1969-------: 

JanuaryJune--

1969-----: 

1970-----: 

1965-------: 

1966------: 

1967------.-: 

1968-------: 

1969-------: 

JanuaryJune-- : 

1969-----: 

1970----: 

Leather uppers, leather 

or plastics soles 

Total 

Cement process (in Turn or turned 

700.43 and 700.45) (in 700.20) 

Million 

pairs. 

4 

7 

ll 

21 : ( 

: ( 

28 : ( 

: ( 

14 : ( 

: ( 

18 : ( 

: ( 

Tariff rate 

Percent 

ad valorem 

20 

20 

20 

19 

18 

18 

16 

18 

16 

17 

14 

Quantity 

Million 

pairs 

3 

6 

10 

3 

16 

4 

22 

2 

ll 

2 

15 

Fabric uppers, leath~r 

soles (in 700.68) !.! 

Tariff rate Quantity 

Percent Million 

ad valorem pairs 

5 

5 

5 : ) 4 : ) 

: ) 4 

: ) 

: ) 4 : ) 

: ) 3 : ) 

Supported vinyl 

u1212ers (in 700.55) 

Tariff rate Quantity Tariff rate Quantity 

Percent Million Percent Million· 

ad valorem p~irs ad valorem pairs 

12.5 2/ 

12.5 y 

12.5 2/ 

11 y 

10 £/ 

20 2.1 

20 2/ 

20 2; 

18 2; 

16 ""ff.I 

10 2/ 

8.5 y 

16 2/ 

14 y 

1/ Imports of dress shoes with fabric .uppers under items 700.60 and 

700.66 are believed to have been virtually nil in recent years. 

£/ Imports have been negligible, probably less than 100,000 pairs 

each year. 

1 

1 

1 

2 

2 

l 

1 
Table 3.--Nonrubber footwear for women and misses: U.S. imports, by type of upper, and by specified TSUSA 

items, 1965-69, January-June 1969, and January-June 1970 

(In millions of pairsL 

With uppers of leather 

~ 

With uppers of 

plastics or rubber 

·Period Total !/ Casual, for Cement process, 

for.women 

With uppers of 

supported vinyl, 

Total y : for women 

Other 1±/ 

Total l/ : women : . - : (700.4022 y): 

1965-------------: 67 : 22 : 15 : 

1966-------------: 70 : 29 : 18 : 

1967-------------: 96 : 40 : 22 : 

: : : 

: : : 

Valued per : 

Eair-- : 

Not . . 'Over · 

(700.4051 'JI) 

5 

9 

14 

Valued per 

Eair--

Not : Over 

42 

39 

54 

and misses 

(700.5545) 

y 35 

33 

50 

3 

2 

2 

:x> 

I 

I\) 

over :$2 •50 : over : $2.50 \0 

: : : 

1968-------------: 133 : 57 .: 

1969-------------: 139 : 59 :· 

January-June--

1969-----------: 78 : 34 : 

1970-----------: 96 : 44 : 

$2.50 : : 

: : 

19 : l : 

12 : 2 : 

9 : l : 

8 : l : 

$2.50 : . 

12 : 

14 : 

9 : 

14 : 

17 

23 

11 

15 

75 

77 

43 

48 

69 

71 

39 

45 

l/ Partly estimated. 

7j_/ Effective Jan. 1, 1948, TSUSA item 700.4022 was replaced by items 700.4310 and 700.4510. The term 

"casual" relates to footwear constructed with a wedge heel, or with an open toe and a heel not over l inch in 

height. 

1 

3 

l 

4 

J/. Effective Jan. 1, 1948, item 700.4051 was replaced by item 700.4340 and 700.4540. The term "cement process" 

relates to footwear in which the outsole (or midsole, if any} is affixed to the upper by an adhesive without 

sewing, but not including footwear having vulcanized soles or injection molded soles and not including "casual" 

footwear described in footnote 2. 

4/ Principally footwear with uppers of fibers; also includes clogs in chief value of wood, which by JanuaryJune 197? accounted for half of the imports. However, does not include footwear with fabric uppers and soles 

~f plas~ics or rubber of the types classifiable under TSUS item 700.60; such footwear is generally considered 

rubber footwear, rather than "nonrubber" footwear.