United States 

International 

Trade Commission 

Annual Report 

1978 

UNITED STATES 

INTERNATIONAL TRADE C01\.1MISSION 

ANNUAL REPORT 

1978 

Fiscal Year 
United 

States 

International 

Trade 

Commission 

II 

COMMISSIONERS 

Joseph 0. Parker, Chairman 

Bill Alberger, Vice Chairman 

George M. Moore 

Catherine Bedell 

Paula Stern 

Kenneth R. Mason 

Secretary to the Commission 

U.S. International Trade Commission. 

Annual report, 1978 fiscal year. 

[Washington 1979) 

49 p. illus. 28 cm. (USITC Publication 982) 

1. U.S. International Trade Commission. 

I. Title. 

Address all communications to 

United States International Trade Commission 

Washington, D.C. 20436 

Photo credits: Outside back cover, Chip 

Clark, Smithsonian Institution; CB radios 

hearing, Ankers Capitol Photographers; 

clothespins hearing, Ken Mason; 

and other investigative hearings, Hal 

Sundstrorr1 

For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington, D.C. 20402 

Stock Number 049-000-00049-9 
Fiscal year 1978 was one of the busiest in the history of the United 

States International Trade Commission. Seventy-one investigations, 

about 75 percent more than in fiscal year 1977, were completed under 

the Commission's various quasi-legislative and quasi-judicial authorities, 

including probable economic effects advice to the President on tariff 

modifications and additions to the list of articles proposed for eligibility 

under the Generalized System of Preferences. In addition, the Commission embarked on a major investigation for the Congress with respect to 

the tariff and nontariff agreements resulting from the multilateral trade 

negotiations in Geneva. 

These requests from the President and the Congress were in furtherance of the Commission's role as an independent factfinding agency 

and responsibilities arising under the Tariff Act of 1930, as amended, of 

providing assistance and advice on trade policy questions. These activities demonstrate the need for the maintenance of commodity expertise and a readiness capability to respond to complex questions involving international trade matters. 

Joseph 0. Parker 

Chairman 

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Summary of activities ... ...................................... 1 

Introduction ................................................. 3 

Public investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 

Trade Act of 1974 ........................................ 5 

Advice to the President ............................. ~ . . . 5 

Relief from injury caused by import competition ........... 5 

Litigation arising in connection with section 201 of the 

Trade Act of 1974 ................................. 8 

Market disruption investigations ......................... 8 

East-West trade statistics monitoring system .............. 8 

Preliminary investigation under section 603 of the Trade Act 

of 1974 ............................................ 9 

Tariff Act of 1930, as amended: 

Countervailing duty investigations ...................... 10 

General investigations ................................. 10 

Unfair trade practices ................................. 11 

Litigation arising from investigations conducted 

under section 337 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 

Antidumping Act, 1921, as amended: 

Provisions of the Antidumping Act . . . . . . . . . . . . . . . . . . . . . . 15 

Inquiries under section 201 {c)(2) of the Antidumping Act .. 17 

Litigation arising from investigations conducted under the 

Antidumping Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 

Section 22 of the Agricultural Adjustment Act, as amended .. 18 

Other activities: 

Trade agreements program ............................... 21 

Multilateral trade negotiations ........................... 21 

Generalized System of Preferences . . . . . . . . . . . . . . . . . . . . . 22 

Executive branch review of Commission reports . . . . . . . . . . 22 

Uniform statistical data on imports, exports, and production: 

Activities under section 484(e) of the Tariff Act of 1930 .... 23 

Harmonized Commodity Code .......................... 23 

Preparation of the Tariff Schedules of the United States 

Annotated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 

Periodic reports on commodities: 

Synthetic organic chemicals ............................ 24 

Annual reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 

Monthly reports .................................... 24 

Quantitative determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 

Other periodic reports . . . . . . . . . . . . . . . . . . . . . . .......... 25 

Summaries of trade and tariff information . . . . . . . . . . . . . . . . . . . . 26 

Assistance to the Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 

Government in the sunshine ............................... 27 

New York City field office ................................. 27 

Factfi ndi ng hearings held in 14 cities ....................... 28 

Administration and finances: 

Organization of the Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 

Membership of the Commission ......................... 39 

Sources of information ................................. 40 

Employment and appropriations ........................... 41 

Appendix A. Summary of principal activities of the U.S. International Trade Commission, fiscal years 1975-78 ............. 43 

Appendix B. Reports submitted on proposed legislation .......... 45 

Appendix C. Key statutes involving the U.S. International Trade 

Commission ............................................. 4 7 

Investigations Completed 

Title II, Tariff Act of 1930: 

Sec. 303 countervailing duty investigations ................... 2 

Sec. 332 investigations .................................... 7 

Sec. 337 investigations of alleged unfair practices in 

importation and sale of imported products . . . . . . . . . . . . . . . 10 

Antidumping Act, 1921, as amended (secs. 201 and 203) ....... 33 

Agricultural Adjustment Act (sec. 22) ........................... 1 

Trade Act of 1974: 

Sec. 131 and 503 advice on possible trade agreements ....... 2 

Sec. 201 "escape clause" cases ............................. 9 

Sec. 203 "review" cases ................................... 2 

Sec. 406 "market disruption" cases ......................... 4 

Sec. 603 preliminary investigation ........................... _j_ 

Total ................................................ 71 

Other Activities 

Publications issued (in addition to reports on investigations): 

Synthetic organic chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 

Benzenoid chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 

Responses to letters from Members of Congress and 

congressional committees ............................... 975 

Import and export transactions analyzed .................. 145,000 

Library transactions: 

Volumes circulated ................................... 72, 700 

Reference calls ...................................... 11,900 

Reports prepared on proposed legislation ...................... 42 

Reports prepared on U.S. consumption of · · 

specified commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 

Reports prepared on East-West·trade ........................... 4 

Summaries of trade and tariff information ....................... 16 

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The number and variety of Commission investigations during fiscal 

year 1978 reflected the concern of U.S. industries about the volume 

and impact of imports on production and profit. During this period the 

Commission instituted investigations involving commodities such as 

steel, copper, ferrochromium, zinc, CB radios, and sugar. Other cases 

involved articles (e.g., clothespins and cloth work gloves) with less 

economic significance in terms of dollars but of equal importance to 

the industry and workers concerned. 

The Commission completed 71 investigations in fiscal year 1978. 

Its case workload under the Antidumping Act, 1921, tripled from 11 in 

fiscal 1977 to 33. Additionally, 9 escape-clause and 10 unfair trade 

practice investigations were completed. Of special note, the Commission completed its first market disruption investigations under section 

406 of the Trade Act of 197 4. 

The Commission acted expeditiously on a number of investigations 

and studies requested by the President and the Congress. As the fiscal 

year en.ded, the Commission was preparing, a report on the multilateral 

trade negotiations in Geneva. During the year it was heavily engaged in 

furnishing information and data in response to requests from the President, Members of Congress, congressional committees, and its diverse 

public constituency. The Commission also published and distributed 

numerous trade fact sheets and summaries as well as reports on 

investigations. 

In the thorough economic scrutiny of the commodities it investigated, the Commission used its research, investigative, determinative, 

and remedial resources to fulfill its role as an independent agency with 

quasi-legislative and quasi-judicial responsibilities. To get the facts 

and to insure that all sides to an issue are heard, extensive fieldwork 

was completed and scores of public hearings were held in Washington, D.C., and in 14 cities across the Nation. 

As a factfinding agency, the Commission has broad powers to 

study and investigate-

• All factors relating to U.S. foreign trade and its effect on domestic 

production, employment, and consumption; and 

• The competitiveness of U.S. products. 

The Commission's mission is to contribute to the development of 

U.S. international trade policy in a manner that is soundly based and as 

equitable as possible to all concerned. By statute, the Commission 

may act on its own initiative or at the request of the President, the 

Committee on Finance of the U.S. Senate, or the Committee on Ways 

and Means of the U.S. House of Representatives. 

The Commission staff numbers about 370 individuals who represent a divergence of professions, including attorneys, economists, 

investigators, commodity analysts, and data system programers. Their 

primary function is to gather facts and evaluate data to assist the 

Commission in its determinations. 

Commission activities cover a broad range of responsibilities, including-

• Investigating eligibility of and recommending appropriate import 

relief for domestic industries. 

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•Taking action against unfair practices in import trade, including 

the importation and sale of items at less than fair value or the importation of items whose production or export was subsidized by a foreign 

government. 

• Conducting studies on trade and tariff issues relating to U.S. 

foreign trade. 

• Assisting in the development of uniform statistical data to achieve 

comparability of import, export, and domestic production statistics. 

The Commission receives opinions and comments on trade issues 

and policies. It also provides technical and factual information on trade 

matters. Through public hearings and by other means, the views of 

interested and affected parties such as labor, industry, agriculture, 

importers, and consumers are represented, considered, and evaluated in providing the Commission's technical assistance and advice to 

the President and the Congress. 
The U.S. International Trade Commission is authorized by law to 

investigate all aspects of international trade involving the United 

States. During fiscal 1978, investigations were conducted under provisions of the Trade Act of 1974, the Tariff Act of 1930, as amended, the 

Antidumping Act, 1921, as amended, and section 22 of the Agricultural 

Adjustment Act, as amended. 

TRADE ACT OF 19741 

Advice to the President 

Section 101 2 of the Trade Act of 1974 grants the President authority to enter into 

trade agreements in order to modify or continue existing duties or duty-free treatment. Prior to entering into such agreements the President is required, pursuant to 

section 131 3 of the Trade Act of 1974, to furnish the U.S. International Trade Commission with lists of articles on which the duty may be modified or continued. The 

Commission, in turn, must furnish the President, within 6 months, its advice as to the 

probable economic effect of such modifications or continuances on industries and 

consumers. 

On March 13, 1978, the Commission received from the Special 

Representative for Trade Negotiations a list of articles for possible 

trade-agreement negotiation. The list included articles in the Tariff 

Schedules of the United States that may be considered for modification or continuance of U.S. duties or additional duties, specifically 

earthen dinnerware and nonbone china nondinnerware. The Commission instituted investigation No. TA-131(b)-2 on March 30, 1978, to 

provide the President with the required information and advice. The 

Commisssion transmitted its report to the White House on June 1, 

1978. 

Section 5034 of the Trade Act of 1974 requires that the President, from time to time, 

furnish the Commission with lists of articles which may be provided duty-free treatment 

under provisions of a Generalized System of Preferences. The Commission must then 

advise the President as to the probable economic effect on industries and on 

consumers of granting these preferences for each article listed if imported from 

countries designated by the President as beneficiary developing countries. 

The Special Representative for Trade Negotiations, on December 

14, 1977, furnished the Commission with a list of articles to be considered for inclusion in the Generalized System of Preferences (GSP). 

The Commission initiated investigations Nos. TA-503(a)-4 and 332-90 

on December 21, 1977, and transmitted its report to the President on 

January 30, 1978. 

Relief From Injury Caused by Import Competition 

Section 201 5 of the Trade Act of 1974 provides means whereby relief may be 

sought for the purpose of facilitating orderly adjustment to import competition. A 

trade association, firm, certified or recognized union, or group of workers or other 

entity which is representative of an industry may file a petition for import relief. When 

petitioned, the Commission is required to determine whether an article is being 

imported into the United States in such increased quantities as to be a substantial 

cause of serious injury, or the threat thereof, to a domestic industry producing an 

article like or directly competitive with the imported article. 

1 Public Law 93-618, approved Jan. 3, 1975. 

2 19 U.S.C 2111. 

3 19 u.s.c 2151 

4 19 u.s.c. 2463. 

'19 U S.C. 2251 

5 
If the Commission determines in the affirmative, it must find 

the amount of the increase in, or imposition of, any duty or 

restriction on such article which is necessary to prevent or 

remedy such injury, or recommend the provisions of adjustment assistance to firms, workers, or communities. 

Under section 203, if the President determines to provide 

import relief for the industry, he shall (1) proclaim an increase in, or imposition of, a duty on the article concerned; 

(2) proclaim a tariff-rate quota; (3) impose or modify a 

quantitative restriction on imports; (4) negotiate an orderly 

marketing agreement; or (5) take any combination of such 

actions. If the President does not provide relief in the form 

recommended by the Commission, the Congress can, by 

approval of a concurrent resolution, override the President's action; under section 203(c)(2) the President is then 

required to implement the Commission's recommended 

relief. 

During fiscal 1978, the Commission completed 

nine investigations under section 201 within the 

6-month statutory time limit. Table 1 shows information on the investigations completed during 

the year. 

Three section 201 investigations were in progress at the close of the year, as shown in table 2. 

Section 203(i) 6 of the Trade Act of 197 4 in part 

provides thatUpon request of the President or upon its own motion, the 

Commission shall advise the President of its judgment as to 

the probable economic effect on the industry concerned of 

the extension, reduction, or termination of the import relief 

provided pursuant to this section. 

Upon petition on behalf of the industry concerned, filed 

with the Commission not earlier than the date which is 9 

months, and not later than the date which is 6 months, 

before the date any import relief provided pursuant to this 

section or section 351 or 352 of the Trade Expansion Act of 

1962 is to terminate by reason of the expiration of the initial 

period therefor, the Commission shall advise the President 

of its judgment as to the probable economic effect on such 

industry of such termination. 

During fiscal 1978, the Commission, upon receipt of requests from the Special Representative for Trade Negotiations (STR), conducted two 

section 203 investigations. 

The request from STR with respect to stainless 

steel and alloy tool steel (investigation No. TA203-3) was received on May 25, 1977. A public 

6 19 USC 2253. 

6 

hearing was held on September 7-9, 1977; the 

Commission's report was transmitted to the President on October 14, 1977. 7 In the report Commissioners Moore and Bedell advised the President that, in their opinion, termination or reduction of the existing quantitative restrictions would 

have a serious adverse economic effect on U.S. 

producers. Commissioner Minchew agreed in 

part but advised the President that imports of 

chipper knife and band saw steel need not be 

limited. He also advised the President that an 

increase of 6.7 percent in the existing quota on 

the other types of steel would not have a serious 

adverse economic effect on U.S. producers. 

Commissioner Ablondi advised the President 

that elimination or reduction of the quantitative 

restrictions would have no adverse impact. 

Commissioner Parker did not participate in the 

vote in order to avoid any possibility or appearance of conflict of interest. On April 8, 1978, the 

President eliminated so-called chipper knife 

steel and band saw steel from the quantitative 

restrictions and reduced the quota quantities to 

reflect the exclusion of such steel. 

On March 13, 1978, a request was received 

from STR for a section 203 investigation on certain ceramic articles. The investigation included 

a public hearing held on May 1, 1978, and the 

report was sent to the President on June 1, 

1978.8 In that report Commissioners Parker, Alberger, Moore, Ablondi, and Minchew advised 

the President that the probable economic effect 

of the immediate termination of the higher duties 

then applicable would be minimal. Commissioner Bedell dissented, advising the President 

that termination would be premature. On October 5, 1978, the President terminated the increased rates of duty on certain ceramic tableware. 

7 Stainless Steel and Alloy Tool Steel. Report to the President on 

Investigation No. TA-203-3 ... , USITC Publication 838. 1977. 

8 Certain Ceramic Articles: Report to the President on Investigation 

No. TA-203-4 ... , USITC Publication 893. 1978 
Table 1.-Summary of investigations completed under sec. 201 of the Trade Act of 1974, fiscal year 1978 

Investigation Article Petitioner Petition 

No. concerned filed 

TA-201·27. .Bolts, nuts, and U.S. Fastener Manufacturing Group, 6-10-77 

large screws United Steelworkers of America; 

of iron or steel. International Association of Machinists 

& Aerospace Workers. 

TA-201-28. .High-carbon Committee of Producers of High Carbon 7- 1-77 

ferrochromium. Ferrochrome. 

TA-201-29 . Citizens band E. F. Johnson Co . ............. 8- 2-77 

(CB) radio 

transceivers. 

TA-201-30. . . Certain stainless Stainless Steel Flatware Manufacturers 12- 8-77 

steel Association. 

flatware. 

TA-201-31 ... Unalloyed, Lead-Zinc Producers Committee. 12-20-77 

unwrought 

zinc. 

TA-201-32 .Unalloyed, Anaconda Co., ASARCO, Inc .. Cities 2-23-78 

unwrought Service Co. (Minerals Group), Copper 

copper. Range Co., Cyprus Mines Corp., Duval 

Corp .. Hecla Mining Co., Inspiration 

Consolidated Copper Co., Kennecott 

Copper Corp., Magma Copper Co., 

Phelps Dodge Corp .. and Ranchers 

Exploration & Development Corp. 

TA-201-33. .Bicycle tires Carlisle lire & Rubber Co. 3- 2-78 

and tubes. 

TA-201-34 .Certain fishing American Fishing Tackle Manufacturers 3-21-78 

tackle. and the Tackle Representatives 

Association. 

TA-201-35. . .High-carbon Committee of Producers of High-Carbon 6-12-78 

ferro- Ferrochromium {Airco, Inc., Chromium 

chromium. Mining & Smelting Corp., 

and Interlake, Inc.). 

' On Feb. 1 O; 1978, the President rejected the Commission's decision on 

grounds of national economic interest. · 

2 Found the domestic industry threatened with serious injury. 

3 Found serious injury to the domestic industry already present. 4 Chairman Parker did not participate in the vote in order to avoid any possibility 

or appearance of conflict of interest. 

' Vice Chairman Alberger, not having participated in the case, abstained. 

6 On Jan. 27, 1978, the President rejected the Commission's decision on 

grounds of national economic interest. 

7 On Mar. 28, 1978, the President determined that neither of the recommendations of the Commission met the statutory "national economic interest" criteria. 

However, he determined that a modified form of import relief was in the national 

economic interest and therefore proclaimed a tariff increase with respect to CB 

radio receivers (except hand-held) of 15 additional percentage points in the first 

year, to be phased down in decrements of 3 percentage points for the following 2 

years. The duty will then revert to its current rate of 6 percent ad valorem. 

' Determined that there is a threat of serious injury to U.S. producers. Recommended the imposition of ad valorem import duties (except on hand-held units) of 

36 percent in the first year with 5-percent reductions in 4 subsequent annual steps 

to prevent the injury threatening the domestic manufacturers by reason of increasing imports. 

' Found that serious injury to the domestic industry from such imports was 

already present. 

10 Determined that trade adjustment assistance can effectively remedy the 

serious injury found to .exist. 

" On June 30, 1978, the President rejected the Commission's decision on 

grounds of national economic interest. 

12 Recommended increased rates of duty for a 5-year period. Recommendation 

applies to knives, forks, spoons, and ladles having stainless steel handles, valued 

Commissioners' Commission's 

votes report 

Public Finding of 

hearing Commission Not To the USITC 

Affirmative Negative par tic· Presi- Publi· 

ipating dent cation 

No. 

9-29-77 Affirmative. 1 Moore' Ablondi Parke/4 12-12-77 847 

and Bedell' Alberge,0 

~':'/}.77 Minchew' 

10-11-77 ----do.s Moore Minchew Parke/4 12- 1-77 845 

and Bedell. Alberge,O 

10-12-77 Ablondi 

11- 1-77 --do_, Parker' Alberger10 2- 2-78 852 

to Moore8 

11- 4-77 Bedell' 

Ablondi' 

Minchew9 10 

2-21-78 ----do.11 Parker12 Minchew12 5- 8-78 884 

and Moore12 Al berger" 

2-22-78 Bedell" 

Ablondi" 

3-21-78 Negative Minchew Parker 6-20-78 894 

to Alberg er 

3-24-78 Moore 

Bedell 

Ablondi 

5-22-78 Affirmative. 15 Parker16 Ablondi" Moore17 8-23-78 905 

to Al berger" 

5-24-78 Bedell" 

Minchew16 

6- 6-78 -do.is Parker19 Al berger" Minchew" 9- 1-78 910 

Moore19 

Bedell" 

Ablondi 20 

6-22-78 Affirmative;22 Parker'' Parker Ablondi" 9-21-78 917 

negative.23 Alberg er" Alberg er 

Moore24 Moore 

Minchew" Bedell" 

Minchew 

8- 8-78 Affirmative.27 Alberger'' Parke/4 9- 5-78 911 

Moore29 Minchew21 28 

Bedell" 

Ablondi 30 

at less than 60 cents each. Rates of duty for knives and forks valued under 25 

cents would begin at 1 cent each plus 55 percent ad valorem the first year, would 

be phased down by 5 percent ad valorem a year to 1 cent each plus 40 percent 

ad valorem by the fourth year, and would drop to 1 cent each plus 30 percent ad 

valorem by the fifth year. For knives and forks between 25 and 60 cents, the rate of 

duty would begin at 0.5 cent each plus 55 percent ad valorem the first year and 

gradually decline to 0.5 cent each plus 30 percent ad valorem by the fifth year. 

Spoons and ladles valued under 60 cents would have a duty of 55 percent ad 

valorem the first year that would· gradually decline to 30 percent by the fifth year. 

The effect of the Commission's recommendation would be to increase the duty on 

stainless steel flatware 42.1 percent ad valorem above the current rate of duty 

(equivalent to about 17 percent ad valorem in 1977) the first year, 37.1 percent ad 

valorem the second, 32.1 percent ad valorem the third, 27.1 percent ad valorem 

the fourth, and 17.1 percent ad valorem the fifth and final year of the proposed 

higher tariffs. 

"Recommended a 3-year tariff-rate-quota system. 

14 Recommended no remedy. 

' 5 On Oct. 20, 1978, the President rejected the Commission's decision on 

grounds of national economic interest. 

"To prevent or remedy the serious injury or threat thereof to the domestic 

industry, voted to recommend a yearly quota of 300,000 short tons of refined 

copper imports for a 5-year period beginning Jan. 1, 1978. 

"Commissioner Moore did not participate in the vote in order to avoid any 

possibifity or appearance of conflict of interest. 

•• On Oct. 30, 1978, the President rejected the Commission's decision on 

grounds of national economic interest. 

19 Recommended increased rates of duty on bicycle tires and tubes for a period 

of 5 years. The new rates of duty, in lieu of the present rates on bicycle tires 

{except tubular tires), would be 15 percent ad valorem for the first 3 years and 10 

7 
Footnotes for table 1-Continued 

percent ad valorem for the fourth and fifth years, and the new rates of duty on 

bicycle tubes would be 25 percent ad valorem for the first 3 years and 20 percent 

ad valorem for the fourth and fifth years. 

20 Recommended trade adjustment assistance as a remedy to the domestic 

industry 

21 Commissioner Minchew did not vote because he was unavailable for the 

Commission meeting at the time of the vote. 

"With respect to artif1c1al baits and flies. On Nov. 22, 1978, the President 

rejected the Commission's decision on grounds of national economic interest. 

23 With respect to fishing hooks, rods and parts, and reels and parts. 

24 Recommended suspending the eligibility for duty-free treatment of imports of 

art1f1cial baits and flies under the GSP for 5 years. 

25 With respect to artificial baits and flies and fishing hooks, rods and parts, and 

reels and parts. 

26 Commissioner Ablondi did not participate in the vote in order to avoid any 

Table 2.-Summary of investigations under sec. 201 of the 

Trade Act of 1974 pending on Sept. 30, 1978 

Investigation 

No. Article 

TA-201-36 ..... Clothespins 

TA-201-37 . .Bolts, nuts, and 

large screws of 

iron or steel. 

TA-201 ·38 Certain machine 

needles. 

Petition or 

request 

received 

Origin 

7-27-78 Motion of the 

Commission. 

6- 9-78 Resolution of the Committee 

on Ways and Means of 

the House of Representatives. 

8- 7-78 Petition by The 

Torrington Co., 

Torrington, Conn. 

Litigation Arising in Connection With Section 201 

of the Trade Act of 197 4 

On September 20, 1978, the U.S. District Court 

for the Eastern District of New York denied a 

request for declaratory judgment and injunctive 

relief in a matter challenging the validity of orderly marketing agreements which the President 

had negotiated in 1977 with Taiwan and the Republic of Korea limiting footwear imports from 

those countries (Sneaker Circus, Inc., et al. v. 

Carter, et al. (E.D.N.Y., Civil Action No. 77-C1135)). The Commission was named as a party 

in that action. Plaintiffs claimed that the Commission did not follow proper procedures in, and did 

not have a proper basis for, determining that 

there was "good cause" within the meaning of 

section 201(e) of the Trade Act of 1974 (19 

U.S.C. 2251 (e)) to reinvestigate footwear imports 

within 1 year of reporting to the President the 

results of a prior investigation. The new investigation had been requested by the Senate Committee on Finance. As a result of the new investigation (No. TA-201-18), begun in October 1976 and 

completed in February 1977, the Commission 

made a unanimous affirmative determination, 

and President Carter negotiated the noted orderly marketing agreements, which went into effect in June 1977. 

8 

possibility or appearance of conflict of interest. 

27 On Nov. 2. 1978, the President determined that none of the recommendations 

of the Commission met the statutory "national economic interest" criteria. However, he determined that a modified form of import relief was in the national 

economic interest and therefore proclaimed a tariff increase of 4 cents per pound 

with respect to high-carbon ferrochromium valued less than 38 cents per pound 

for a period of 3 years. The duty will then revert to its current rate of 0.625 cent per 

pound. 

" Recommended a 5-year graduated quota starting at 95,000 tons the first year 

and ending with 109,975 tons. 

29 Recommended higher import duties for 5 years. The current U.S. import duty 

on high-carbon ferrochromium is 0.625 cent per pound. The Commission majority 

recommended the addition of a duty of 30 percent ad valorem to the existing rate 

for 2 years with gradual reductions in subsequent years. 

30 Recommended a 3-year tariff-rate increase of 8 percent ad valorem. 

District court Judge Costantino, after finding for 

plaintiffs on certain procedural issues involving 

standing, ripeness, and personal jurisdiction, 

found for the Government on the merits. With 

respect to the Commission, the court found that 

the Commission was correct in making a goodcause determination after receiving the request 

for a new investigation from the Senate Committee on Finance; that no formal Commission 

notice or hearings on the good-cause question 

were required; that the Commission's goodcause determination, even if reviewable by the 

court, was supported by sufficient evidence; and 

that the Commission's notice of investigation and 

hearing issued subsequent to the institution of 

the investigation sufficiently described the basis 

for and nature of the investigation. 

Market Disruption Investigations 

During fiscal 1978, the Commission completed 

its first investigations under section 406 of the 

Trade Act of 197 4. A summary of these investigations is given in table 3. 

Section 4069 of the Trade Act of 1974 provides, in part, 

that upon the filing of a petition, upon request of the President or the Special Representative for Trade Negotiations, 

upon resolution of either the Committee on Ways and 

Means of the House of Representatives or the Committee 

on Finance of the Senate, or on its own motion, the Commission shall make an investigation to determine, with respect to imports of an article which is the product of a 

Communist country, whether market disruption exists with 

respect to an article produced by a domestic industry. 

East-West Trade Statistics Monitoring System 

Section 41010 of the Trade Act of 197 4 requires the 

Commission to establish and maintain a program to 

monitor trade between the United States and the nonmarket economy countries, and to publish a detailed summary 

of the data collected under this program not less frequently 

than once every calendar quarter. 

9 19 U.S.C 2436. 

10 19 U.S.C. 2440. 
The Commission submitted four reports on 

East-West trade to the Congress and the 

East-West Foreign Trade Board in fiscal 1978 

pursuant to section 41 O of the Trade Act of 

1974, as follows: 

1. Twelfth Report to the Congress and the East-West 

Foreign Trade Board on Trade Between the United 

States and the Nonmarket Economy Countries During 

July-September 1977(December1977, USITC Publication 851). . 

2. 13th Quarterly Report to the Congress and the EastWest Foreign Trade Board on Trade Between the 

United States and the Nonmarket Economy Countries 

During 1977 (March 1978, USITC Publication 876). 

3. 14th Quarterly Report to the Congress and the EastWest Foreign Trade Board on Trade Between the 

United States and the Nonmarket Economy Countries 

During January-March 1978 (June 1978, USITC Publication 895). 

Table 3.-Summary of investigations completed under sec. 406 of the Trade Act of 1974, fiscal year 1978 

Commissioners' votes Commission's report 

Investigation Article Petitioner Petition Public Finding 

No. concerned filed hearing of Affirmative Negative USITC 

Commission (causing (not causing Not To the Publimarket market participating President cation 

disruption) disruption) No. 

TA-406-1 .. Certain gloves Work Glove 12-15-77 2- 7-78 Negative Minchew Parker 3-15-78 867 

fromihe Manufacturers and Ablondi Alberg er 

People's Association. 2- 8-78 Moore 

Republic of Bedell 

China . 

TA-406-2 . . Clothespins from Clothespins & Veneer 5- 3-78 6-22-78 Affirmative. 1 Parker' 8- 3-78 902 

the People's Products Alberg er" 

Republic of Association. Moore' 

China. Bedell' 

Ablondi 4 

Minchew' 

TA-406-3 Clothespins from -do- 5- 3-78 6-22-78 Negative Parker Alberg er 8- 3-78 902 

the Polish Moore 

People's Bedell 

Republic. Ablondi 

Minchew 

TA-406-4 .Clothespins from -do- 5- 3-78 6-22-78 ~do- Parker 8- 3-78 902 

the Socialist 

Republic of 

Romania. 

' On Oct. 2, 1978, the President determined that the question of import relief for 

the domestic clothespin industry would be more appropriately decided in the 

course of a pending escape-clause investigation and denied relief under separate market-disruption provisions of the Trade Act. 

' Recommended a 5-year quota to be administered on a yearly basis, with the 

quota for each year established at 431,000 gross on the basis of the average of 

the imports of clothespins from the People's Republic of China for the years 

1975-77. 

4. 15th Quarterly Report to the Congress and the EastWest Foreign Trade Board on Trade Between the United 

States and the Nonmarket Economy Countries During 

April-June 1978 (September 1978, USITC Publication 921 ). 

Preliminary Investigation Under Section 60311 of 

the Trade Act of 197 4 

On its own motion, the Commission ordered 

preliminary investigation No. 603-T A-3 to deter11 19 U.S.C. 2482. 

Alberg er 

Moore 

Bedell 

Ablondi 

Minchew 

' Recommended a 5-year quota to be administered on a quarterly basis, with 

the quota for the first year established at 431,000 gross on the basis of the 

average of the imports of clothespins from the People's Republic of China for the 

years 1975-77 and with the quota amount to be increased by 5 percent each year. 

4 Recommended the same quota as Chairman Parker and Commissioners 

Moore and Bedell, but for a 3-year period only. 

mine whether to institute an investigation under 

section 337 of the Tariff Act of 1930, as amended 

(19 U.S.C. 1337), with respect to the importation 

and sale in the United States of monumental teak 

windows from Sweden. On the basis of the preliminary investigation, including the investigative 

staff's final report, the Commission determined 

on November 15, 1977, that there was insufficient evidence to institute an investigation pursuant to section 337,'and the preliminary investigation was terminated. 

9 
TARIFF ACT OF 1930, AS AMENDED 

Countervailing Duty Investigations 

Section 30312 of the Tariff Act of 1930, as 

amended, provides thatWhenever any country, dependency, colony, province, or other political subdivision of government, person, 

partnership, association, cartel, or corporation, shall pay or 

bestow, directly or indirectly, any bounty or grant upon the 

manufacture or production or export of any article or merchandise manufactured or produced in such country, dependency, colony, province, or other political subdivision 

of government, then upon the importation of such article or 

merchandise into the United States, whether the same shall 

be imported directly from the country of production or 

otherwise, and whether such article or merchandise is imported in the same condition as when exported from the 

country of production or has been changed in condition by 

remanufacture or otherwise, there shall be levied and paid, 

in all such cases, in addition to any duties otherwise imposed, a duty equal to the net amount of such bounty or 

grant, however the same be paid or bestowed. 

In the case of any imported article or merchandise which 

is free of duty, duties may be imposed under this section 

only if there is an affirmative determination by the Commission under subsection (b)(1 ); except that such a determination shall not be required unless a determination of injury 

is required by the international obligations of the United 

States. 

During fiscal 1978, the Commission instituted 

and concluded two investigations under section 

303. They are summarized in table 4. 

General Investigations 

The Tariff Act of 1930 empowers the Commission to investigate and report on many aspects of 

U.S. foreign trade. Studies made under section 

332 of the act are usually broader in scope and 

focus than other statutory investigations conducted by the Commission. 

Section 33213 of the Tariff Act of 1930 sets forth 

the Commission's authority to investigate, among 

other thingsThe administration and fiscal and industrial effects of the 

customs laws of this country; 

The relationships between rates of duty on raw materials 

and finished or partly finished products; 

The effects of ad valorem and specific duties and of compound (specific and ad valorem) duties; 

All questions relative to the arrangement of schedules and 

classification of articles in the several schedules of the 

customs law; 

The operation of customs laws, including their relation to 

the Federal revenues and their effect upon the industries 

and labor of the country; 

The tariff relations between the United States and foreign 

countries, commercial treaties, preferential provisions, 

and economic alliances; 

The effect of export bounties and preferential transportation rates; 

The volume of importations compared with domestic production and consumption; and 

Conditions, causes, and effects relating to competition of 

foreign industries with those of the United States. 

The Commission is required to make such reports as 

may be requested by the President, the House Committee 

on Ways and Means, the Senate Committee on Finance, or 

either House of Congress concerning such matters. 

13 19 U.S.C. 1332. 

Commissioners' votes Commission's report 

Investigation No. 

· Article 

concerned 

Petition 

filed 

Public Finding of 

hearing Commission Not To Secretary US ITC 

Affirmative Negative partici- of Publicapating Treasury tion No. 

303-TA-2 .. .Leather wearing apparel from Uruguay.. 1-24-78 3-14-78 Affirmative Parker Ablondi' 4-24-78 883 

Alberger 

Moore 

Bedell 

Minchew 

303-TA-3 ... Certain fish from Canada 6-27-78 8-15-78 Negative Parker Minchew" 9-27-78 919 

1 Commissioner Ablondi did not participate in the vote in order to avoid any 

possibility or appearance of conflict of interest. 

During fiscal year 1978, seven investigations 

under section 332 of the Tariff Act of 1930 were 

completed, as shown in table 5. The 11 investigations which were in progress at the close of 

fiscal 1978 are summarized in table 6. 

10 

Al berger 

Moore 

Bedell 

Ablondi 

2 Commissioner Minchew did not vote because he was unavailable for the 

Commission meeting at the time of the vote. 

The nine Commission-initiated research studies under the authority of section 332 completed 

during fiscal year 1978 and the seven pending on 

September 30, 1978, are listed in table 7. 
Unfair Trade Practices 

Section 33714 of the Tariff Act of 1930 declares unlawful 

unfair methods of competition and unfair acts in the importation of articles into the United States, or in their sale by 

the owner, importer, consignee, or agent of either, the 

effect or tendency of which is to destroy or substantially 

injure an industry, efficiently and economically operated, in 

the United States, or to prevent the establishment of such 

1419 U.S.C. 1337. 

an industry, or to restrain or monopolize trade and commerce in the United States. It authorizes the Commission to 

investigate alleged violations of this section of the act. If the 

Commission determines that there is a violation of section 

337, it has the power to issue an order excluding imports 

from entry into the United States and/or a cease and desist 

order, subject to disapproval by the President for policy 

reasons within 60 days of the Commission's issuance of its 

finding. Proceedings come within the provisions of the 

Administrative Procedure Act. There is a statutory time limit 

of 12 months (18 months for more complicated cases) in 

these investigations. 

Table 5.-lnvestigations completed under sec. 332 of the Tariff Act of 1930, as amended, during fiscal year 1978 

Investigation 

No. 

Subject Origin 

332-82 . . .. Probable domestic impact of changing from the current chief-value method of Request from the President . 

classifying textile imports to the chief-weight method. 

332-85. . .. Conditions of competition in U.S. markets between domestic and foreign Motion of the Commission 

live cattle and cattle meat fit for human consumption. 

332-89(1) ..... Information for use in determining whether to remove microscope glass Request from the President. 

slides and micro cover glasses from the list of articles eligible for the 

Generalized System of Preferences. 

332-89(2) .. Information for use in determining whether to remove folding chairs of wood -do--

from the list of articles eligible for the.Generalized System of Preferences. 

332-89(3) .Information for use in determining whether to remove wood doors with or -do--

without their hardware from the list of articles eligible for the Generalized 

System of Preferences. 

332-89(4) ....... Information for use in determining whether to add seamless gloves of -do--

rubber or plastics, except surgical and medical gloves, to the list of articles 

eligible for the Generalized System of Preferences. 

332-90 .President's Ii st pf articles which may be designated as eligible articles for -do--

purposes of the Generalized System of Preferences. 

332-98 ......... .Probable economic effect of U.S. adoption of new rules of customs -do--

valuation. 

332-99 . . ... Conversion of specific and compound rates of duty to ad valorem rates. -do332-100 ......... Certain ceramic articles . -doUSITC Publication 

No. Date 

849 December 1977 

842 November 1977 

857 (') 

858 (') 

859 (') 

860 (') 

854 (') 

(') (') 

896 July 1978 

(') (') 

1 Report submitted to STR in confidence. 

2 Report submitted to the President in confidence. 

3 This investigation was conducted concurrently with investigations Nos. TA131(b)-2 and TA-203-4: a public report was issued only for the tatter. 

Table 6.-lnvestigations under sec. 332 of the Tariff Act of 1930, as amended, pending on Sept. 30, 1978 

Investigation 

No. 

332-73 

332-84 

Subject 

... Formulation of an international commodity code 

.Quarterly statistical reports providing certain information on canned 

and frozen mushrooms. 

332-87 ...... Conditions of competition in the Western U.S. steel market between 

domestic and foreign steel products. 

332-91 .......... United States exports to the Soviet Union: past trends, recent 

developments, and future prospects. 

332-92. . . .Baseline study of the telephone switching equipment industry. 

332-93. 

332-94. 

332-95 

..... Annual and quarterly statistical reports providing certain information on 

nonrubber footwear. 

.Annual and quarterly statistical reports providing certain information on 

stainless steel and alloy tool steel. 

.Annual and quarterly statistical reports providing certain information on 

color television receivers. 

Origin 

Sec. 608( c )( 1) of the Trade 

Act of 1974. 

Request from the President . 

Motion of the Commission . 

-doRequest frorn the Subcommittee on 

Trade of the Committee 

on Ways and Means. 

Request from the President 

(Presidential Proclamation 4510). 

Request from the President 

(Presidential Proclamation 4445). 

Request from the President 

(Presidential Proclamation 4511). 

USITC Publication 

No. 

864 

890 

908 

865 

889 

891 

909 

853 

874 

875 

888 

903 

866 

Date 

November 1977 

March 1978 

May 1978 

August 1978 

November 1977 

March 1978 

May 1978 

May 1978 

August 1978 

November 1977 

February 1978 

March 1978 

March 1978 

May 1978 

August 1978 

November 1978 

March 1978 

11 
Table 6.-lnvestigations under sec. 332 of the Tariff Act of 1930, as amended, pending on Sept. 30, 1978-Con. 

Investigation 

No. 

Sub1ect Origin 

USITC Publ1cat1on 

No Date 

------------- ·-----·----

332-96. 

332-97. 

332-101 

.Report on consumption of watches and watch movements, 

or modules 

. Report on consumption of broom corn brooms . 

Agreements being negotiated at the multilateral 

trade negotiations in Geneva. 

Public Law 89-805 and the Tariff 

Schedules of the United States . 

.. Request from the President . 

Request from the Senate Committee 

on Finance and the House 

Committee on Ways and Means. 

877 

886 

901 

878 

March 1978 

May 1978 

August 1978 

March 1978 

Apnl 1978 

Table ?.-Commission-initiated research studies completed during fiscal year 1978 and pending on Sept. 30, 1978 

Research subject 

Newsprint consumption: short-range predictive model. 

The history and current status of the Multifiber Arrangement. 

Grains forecasting: an analysis of three systems 

Supplemental report on customs procedures with respect to the verification of import 

statistics: the accuracy of import data 

Study of the effects of GSP on U.S. trade 1n the program's first year of operation, 

1976. 

Imported food fats and oils: growing competition for U.S. agriculture. 

The impact of tariffs and nontarift barriers on trade in passenger automobiles. 

A survey and analysis of government ownership in market economy countries a 

study of steel, automobiles, and iron ore 

Related-party transactions in U.S. import trade. 

Alternative energy sources 

Competitive prospects of the U.S. chemical industry 

A survey of research on the relationship between exchange-rate changes and trade 

Passenger auto industry of Japan 

Import trends 1n Tariff Schedules of the United States items 806.30 and 807 00 

Barriers to trade in integrated circuits . 

U.S. f1sh1ng industry 

Under the Tariff Act of 1930, as amended by the 

Trade Act of 1974, section 337 cases under 

Commission investigation must be adjudicated in 

conformity with the formal notice and hearing provisions of the Administrative Procedure Act (5 

U.S.C. 551). The presiding officer, who in most 

cases is one of two Commission Administrative 

Law Judges, conducts the hearing and renders a 

written recommended determination or decision, 

including findings of fact and conclusions of law 

on all contested issues, on the basis of the record 

in each case. In the performance of his or her 

adjudicative functions under the Administrative 

Procedure Act and consistent with the Commission's Rules of Practice and Procedure, the pre12 

Status 

Completed: USITC Staff Research Study No. 10, October 1977 

Completed: USITC Publication 850, January 1978. 

Completed: USITC Staff Research Study No. 11, January 1978 

Completed USITC Publ1cat1on 861, February 1978. 

Completed: USITC Staff Research Study No. 12, March 1978 

Completed USITC Publication 856, March 1978. 

Completed: Report to the Special Representative for Trade Negotiations. May 1978 

Completed USITC Staff Research Study No. 13, May 1978. 

Completed: Report to the Commission, June 1978 

Pending. 

Do. 

Do 

Do. 

Do 

Do 

Do. 

siding officer holds prehearing conferences, issues subpoenas, rules on the evidence, and generally regulates the course of the hearing in accordance with the strict statutory time limits prescribed in section 337 proceedings. 

Section 337 cases typically involve complex 

patent infringement and antitrust-e.g., predatory 

pricing-issues relating to alleged unfair acts or 

methods of competition incidental to the importation of articles into the United States or their sale, 

the effect or tendency of which is to destroy or 

substantially injure an industry, efficiently and 

economically operated, in the United States, or to 

prevent the establishment of such an industry, or 

to restrain or monopolize trade and commerce in 
the United States. Final Commission decisions in 

these cases, which adopt, modify, or reverse the 

presiding officer's recommended determinations, 

are subject to disapproval within 60 days by the 

President for policy reasons and are thereafter 

appealable to the U.S. Court of Customs and Patent Appeals. 

During fiscal 1978, the Commission concluded 

10 investigations under section 337, which are 

summarized in table 8. The 21 investigations 

pending on September 30, 1978, are summarized 

in table 9. 

Litigation Arising From Investigations 

Conducted Under Section 337 

On February 27, 1978, a manufacturer and importer of pharmaceuticals, International Rectifier 

Corp., and companies associated with it moved in 

the U.S. District Court for the Central District of 

California to enjoin a complainant before the 

Commission, Pfizer, Inc., from participating in a 

Commission section 337 investigation (No. 337-

TA-3, Doxycycline). This investigation had been 

suspended by the Commission on August 13, 

1975, to permit the appeal process to be 

exhausted in Federal court litigation (Pfizer, Inc. v. 

International Rectifier Corp., et al., Civil Action No. 

73-58, MDL No. 274). The reason for the suspension was that the patent at issue in the Commission's investigation had been summarily declared 

invalid at the trial level. After the judicial appeal 

process was exhausted, the trial court was reversed, and the case was returned to the district 

court for trial. 

On December 6, 1977, Pfizer moved that the 

Commission reactivate the section 337 investigation. When International Rectifier made its motion 

in the district court to enjoin Pfizer, the Commission sought and was permitted to intervene for the 

limited purpose of opposing the motion on the 

ground that such an order would effectively prevent the Commission from going forward with its 

investigation. The court denied the motion for the 

preliminary injunction on March 24, 1978. 

On July 15, 1978, International Rectifier filed a 

new motion in the district court for an injunction, 

this time to prevent Pfizer from seeking from the 

Commission a cease and desist order against 

International Rectifier and to compel Pfizer to 

cease efforts to have International Rectifier comply with Commission discovery orders. Again the 

Commission sought and was permitted to intervene in the Federal action for the limited purpose 

of opposing the motion, and again the court denied the motion, this time with a written order. The 

basis of the court's decision was that the Commission investigation did not interfere with the 

court's proceedings, even though the two cases 

involved similar issues such as the validity and 

enforceability of the doxycycline patent. No appeal was taken from these court decisions, and at 

the end of the fiscal year the doxycycline investigation was continuing without interruption. 

On April 6, 1978, the U.S. Court of Customs and 

Patent Appeals in Coleco Industries, Inc. v. U.S. 

International Trade Commission, 573 F.2d 1247 

(1978), unanimously affirmed the Commission's 

decision in investigation No. 337-TA-25 (Certain 

Above-Ground Swimming Pools). The Commission had found that the patent in issue had not 

been infringed and that there was no predatory 

pricing and no violation of section 337. Complainant's petition for rehearing was denied by the 

court on June 8, 1978. 

On August 24, 1978, the U.S. Court of Customs 

and Patent Appeals issued a decision in favor of 

the Commission in Solder Removal Co. v. U.S. 

International Trade Commission, 199 U.S.P.Q. 

129 (1978). This was an appeal of the Commission's decision for respondent in investigation No. 

337-TA-26 (Certain Solder Removal Wicks), in 

which the Commission found complainant's patent to be invalid. On September 14, 1978, the 

appellants sought a rehearing of the appeal; the 

petition is still pending before the court. 

Ben Clements & Sons, Inc., a respondent in 

Commission investigation No. 337-TA-36 (Certain Plastic Fastener Assemblies), brought a lawsuit against the Commission in the U.S. District 

Court for the Southern District of New York, seeking to enjoin the Commission's investigation. The 

basis for the lawsuit was the existence of parallel 

proceedings in the district court concerning the 

validity and possible infringement of the patent 

which is the subject of the Commission's investigation. 

On October 3, 1977, the district court denied 

the plaintiff's application for a temporary restraining order and motion for a preliminary injunction. 

Plaintiff had argued that it was too great a burden 

13 
Table 8.-lnvestigations completed under sec. 337 of the Tariff Act of 1930, as amended, fiscal year 1978 

Date of 

publication 

of notice in Public Finding and Date orders USITC 

Article Complainant Complaint Federal hearing remedy of issued Publication 

concerned filed Register Commission No. 

and No. 

Certain welded stainless steel Acme Tube, Inc .. Allegheny-Ludlum Steel 11-15-76 2-22-77, 1-31-78 Violation; cease and 2-22-78 863 

pipe and tube. Corp., Armco Steel Corp., et al. 337-TA-29 desist order. 1 

Certain display devices for Charles D. Burnes Co., Boston, Mass. 1-14-77 2-18-77. 10-31-71 Violation; permanent exclu- 1-12-78 862 

photographs and the 337-TA-30 sion order. 2 

like. 

Certain steel toy vehicles . .. Tonka Corp., Hopkins, Minn. 3-11-77; 4-15-77, 3-20-78 Terminated; no violation 4-17-78 880 

3-24-77. 337-TA-31 

3-31-77. and 

7-20-77 

(amend men ts) 

Certain dot matrix impact Centronics Data Computer Corp., 3-14-77; 4-26-77, -do.' 12- 8-77 

printers and Hudson, N.H. 3-28-77 337-TA-32 

solenoids. (amendment) 

Certain light shields for sonar Lowrance Electronics, Inc., Tulsa, Okla. 3-24-77 4-26-77. -do- 10-31-77 

apparatus. 337-TA-33 

Certain numerically controlled Burgmaster Division, Houdaille Industries, 4-14-77 5-17-77, -do. 3 2- 6-78 

machining centers and Inc., Los Angeles. Calif. 337-TA-34 

components thereof. 

Certain molded golf balls . PCR Golf Ball Co., Inc., Rocky Hill, N.J. 4-14-77; 7- 6-77, Violation; permanent 7- 6-78 897 

6-13-77 337-TA-35 exclusion order.4 

(amendment) 

Certain food slicers Prodyne Enterprises, Inc, Montclair, Calif. 10- 6-77; 11-10-77. Terminated; no violation 7-12-78 

10-25-77 337-TA-38 

(amendment) 

Certain ceramic tile setters Ferro Corp., Cleveland, Ohio. 1- 4-78; 2-10-78, -do- 9-11-78 

1-20-78 337-TA-41 

(supplement) 

Certain telescopic sight Clear View Manufacturing Co., Inc., 1-18-78; 2-17-78, -do- 9-21-78 

mounts. Detroit. Mich. 1-31-78 and 337-TA-46 

2-10-78 

(amendments) 

'The President disapproved on Apr. 26, 1978. 3 By reason of license agreement. 

2 The President took no action; exclusion order became final on Mar. 13, 1978. ' The President took no action; exclusion order became final on Sept. 5, 1978. 

Table 9.--lnvestigations under sec. 337 of the Tariff Act of 1930, as amended, pending on Sept. 30, 1978 

Doxycycline . 

Article 

concerned 

Certain plastic fastener assemblies 

Certain skateboards and platforms 

therefor. 

Certain luggage products 

Monumental wood windows 

Certain electric slow cookers 

Certain centrifugal trash 

pumps. 

Certain roller units 

Certain combination locks 

Certain flexible foam 

sandals. 

See footnotes at end of table 

14 

Complainant 

Pfizer, Inc., New York, N.Y. 

Dennison Manufacturing Co., Framingham, Mass. 

Richard L. Stevenson d.b.a. Makaha International, Los Angeles, 

Calif. 

Airway Industries, Inc., Ellwood City, Pa. 

Wrand Industries, Inc., Chester, Pa. 

Rival Manufacturing Co., Kansas City, Mo. 

Hale Fire Pump Co., Conshohocken, Pa. 

Presto Lock Co., division of Walter Kidde & Co., Inc., 

Elmwood Park, N.J. 

Presto Lock Co., division of Walter Kidde & Co., Inc., 

Elmwood Park, N .J. 

Tiddies, Inc., Pasadena, Tex. 

Complaint 

filed 

4-13-73; 

4-21-78 

(amendment) 

6-30-77; 

7-22-77 

(amendment) 

10- 6-77; 

10-25-77 

(amendment) 

10-28-77; 

11-11-77 

(amendment) 

1- 3-78 

12-20-77 

4- 6-78 

(amendment) 

1- 9-78 

1-12-78 

1-12-78 

1-18-78 

Date of 

publication 

of notice in Public 

Federal Register and hearing 

No. 

5-29-74, 9-23-74 

337-TA-3' 

8-11-77, 

337-TA-36' 

11-11-77, 

337-TA-37 

11-30-77, 5- 5-78 

337-TA-39 and 

2- 9-78, 

337-TA-40 

2- 9-78, 

337-TA-42 

2-14-78, 

337-TA-43 

2-14-78, 

337-TA-44 

2-16-78, 

337-TA-45 

2-17-78, 

337-TA-~7 

9-20-78 
Table 9.-lnvestigations under sec. 337 of the Tariff Act of 1930, as amended, pending on Sept. 30, 1978-Con. 

Article 

concerned 

Complainant Complaint 

l1led 

------------

Cate of 

publ1cat1on 

of notice 1n Public 

Federal Register and hearing 

No 

Alternating pressure pads Gaymar Industries, Inc .. Orchard Park, N.Y., and Medisearch PR. 1-23-78 2-23-78, 

Certain attache cases 

Inc .. Guayama. PR 

Samsonite Corp , Denver, Colo 1-30-78 

337-TA-48 

3- 7-78. 

337-TA-49 

Certain synthetic gemstones Queensbury Opal Co, Ltd .. Beechwood, Ohio 2- 9-78: 3-17-78, 

Certain cigarette holders 

Certain apparatus for the continuous 

production of copper rod 

Certain swivel hooks and 

mounting brackets 

Certain multicellular plastic film 

Spoon Ring Co, Los Angeles. Calif 

Southwire Co .. Carrollton, Ga .. 

Coats & Clark, Inc .. Stamford, Conn 

Sealed Air Corp., Fair Lawn. N.J. 

3- 8-78 337-TA-50 

(amendment) 

2-21-78: 3-29-78. 

3- 8-78, 337-TA-51 

3-21-78, 

and 

3-22-78 

(amendments) 

4-11-78 5-22-78. 

337-TA-52 

5- 9-78: 6-14-78, 

6- 1-78 337-TA-53 

(amendments) 

5-12-78 6-29-78, 

337-TA-54 

Certain novelty glasses . Howw Manufacturing, Inc., and Plus Four. Inc .. Carol Stream. Ill 5-25-78 7-11-78, 

Certain thermometer sheath 

packages. 

Certain cattle whips 

Steridyne Corp., Riviera Beach, Fla. 

Stockmer's Inc .. Lawton. Iowa 

and 337-TA-55 

6-14-78 

6- 7-78 7-25- 78, 

337-TA-56 

7- 7-78 8- 9-78. 

337-TA-57 

Certain fabricated steel plate 

products from Japan 

Steel Plate Fabricators Association, Hinsdale. Ill 8- 7-78 9-15-78. 

' Suspended on Aug. 13. 1975, and reactivated on Feb. 21. 1978 

to proceed simultaneously before the Commission and the district court because of the imminence of trial in the district court. The district 

court ruled that the presiding officer in the investigation had taken adequate steps to insure that 

there would be no undue burden on plaintiff's 

counsel by recomm~nding to the Commission a 

limited stay of Commission proceedings while 

the case was being tried in the district court. 

Therefore, it had no need to issue a writ to protect its jurisdiction within the meaning of the All 

Writs Act (28 U.S.C. 1651). 

The Commission suspended its investigation 

effective November 1, 1977. Upon conclusion of 

the district court trial, the Commission, on April 5, 

1978, moved to resume the investigation. On 

April 13, 1978, Clements again filed a motion 

with the U.S. District Court for the Southern District of New York requesting a preliminary injunction against the Commission's reactivating its investigation. On April 20, 1978, the court ordered 

the Commission to show cause why it should not 

grant Clements' motion and enjoin the Commission from reinstituting the investigation. Following 

337-TA-58 

2 Suspended on Sept 29 1978 

oral argument on the "show cause" order, the 

judge denied the motion, stating that Clements 

failed to show that it would be harmed by resumption of the Commission investigation. 

On September 22, 1978, the Commission 

again suspended the investigation, until such 

time as the exhibits in the parallel proceedings in 

the district court are available to the presiding 

officer for a period of 5 months. 

ANTIDUMPING ACT, 1921, AS AMENDED 

Provisions of the Antidumping Act 

Section 201 (a) 15 of the Antidumping Act, 1921, provides 

that whenever the Secretary of the Treasury advises the 

Commission that a class or kind of foreign merchandise is 

being, or is likely to be, sold in the United States or 

elsewhere at less than its fair value, the Commission shall 

determine within 3 months whether an industry in the 

United States is being or is likely to be injured, or is prevented from being established, by reason of the importation of such merchandise. At the conclusion of its investigation, the Commission notifies the Secretary of the Treasury 

of its determination. If the Commission determines in the 

affirmative, the Secretary of the Treasury issues a finding of 

15 19 U S C 1 60 et seq. 

15 
dumping, and the described imports become subject to 

special dumping duties. 

During fiscal 1978, the Commission completed 

17 investigations under section 201 (a) of the 

Antidumping Act. The Commission's determinations were affirmative in nine cases16 and negative in eight cases. The investigations are summarized in table 10. 

16 Under the Antidumping Act, decisions 1n which the Commissioners voting are evenly divided in their findings are deemed to be in 

the affirmative. 

Table 10.-Antidumping investigations completed in fiscal year 1978 

Investigation No. 

AA 1921-169, 

170,171, 

and 172. 

AA1921-173. 

AA1921-174 

and 175. 

Article 

concerned 

Animal glue and inedible gelatin 

from Yugosla"1a, Sweden, the 

Netherlands, and West Germany. 

Railway track maintenance equipment from Austria. 

Saccharin from Japan and the 

Republic of Korea. 

AA1921-176 ... Impression fabric of manmade 

fiber from Japan. 

AA1921-177 ... Ice hockey sticks from Finland . 

AA1921-178 ... Polyvinyl chloride sheet and film 

from the Republic of China. 

AA1921-179. Carbon steel plate from Japan . 

AA 1921-180 . . . . Welded stainless steel pipe 

and tube from Japan. 

AA1921-181' ... Rayon staple fiber from Belgium 

AA1921-182 .... Steel wire strand for prestressed 

concrete from India. 

AA1921-183 .... Sorbates from Japan 

AA1921-184 ... Portland hydraulic cement from 

Canada. 

AA1921-186 ... Rayon staple fiber from Belgium. 

Advice 

received 

from 

Treasury 

7-29-77 

8-11-77 

9- 9-77 

12-28-77 

12-28-77 

1-12-78 

1-18-78 

4-20-78 

5- 2-78 

5-25-78 

6-13-78 

6-23-78 

7-24-78 

Public 

hearing 

Finding of 

Commission 

9-15-77 Affirmative 

10- 6-77 -do--

and 

10- 7-77 

10-26-77 Negative 

2-15-78 Affirmative 

2-23-78 Negative 

3- 2-78 Affirmative 

3- 7-78 

6- 8-78 Negative 

6-20-78 

7-18-78 -do8- 1-78 -do7-26-78 -do--

to 

7-28-78 

Affirmative 

Commissioners' votes 

Affirmative 

Parker1 

Moore1 

Bedell' 

Ablondi 2 

Pariker 

Moore 

Bedell 

Moore 

Bedell 

Ablondi 

Pariker 

Al berger 

Moore 

Bedell 

Minchew 

Alberger 

Moore 

Bedell 

Minchew 

Ablondi 

Moore 

Pariker 

Moore 

Bedell 

Negative 

Minchew1 

Ablondi3 

Minchew 

Ablondi 

Pariker 

Alberg er 

Moore 

Bedell 

Ablondi 

Minchew 

Al berger 

Minchew 

Pariker 

Alberger 

Moore 

Bedell 

Ablondi 

Minchew 

Ablondi 

Pariker 

Al berger 

Moore 

Bedell 

Minchew 

Pariker 

Alberger 

Moore 

Bedell 

Ablondi 

Parker 

Alberg er 

Moore 

Bedell 

Al berger 

Bedell 

Ablondi 

Alberger 

Ablondi 

Not 

participating 

Albergei' 

Albergei< 

Pariker6 

Pariker6 

Ablondi' 

Minchew' 

Ablondi' 

Minchew' 

Pariker6 

Minchew' 

Minchew' 

1 On animal glue and inedible gelatin from Yugoslavia, Sweden, the Nether- possibility or appearance of conflict of interest. 

Commission's report 

To Secretary USITC 

of PublicaTreasury tion No. 

10-29-77 840 

11-11-77 844 

12- 9-77 846 

3-28-78 872 

3-28-78 871 

4-12-78 879 

4-18-78 882 

7-20-78 899 

8-25-78 906 

9-13-78 915 

9-25-78 918 

9- 7-78 914 

lands, and West Germany. 

2 On animal glue and inedible gelatin from Sweden and the Netherlands. 

7 Terminated. Investigation No. AA1921-186 was instituted upon receiving new 

advice from the Secretary of the Treasury. 

3 On animal glue and inedible gelatin from Yugoslavia and West Germany. 

•Vice Chairman Alberger, not having participated in the case, abstained. 

5 Chairman Parker did not participate in the vote because of absence due to a 

death in the family. 

6 Commissioner Ablondl did not participate in the vote in order to avoid any 

On September 30, 1978, three investigations 

were in progress under the Anti dumping Act: No. 

AA1921-185, Nylon Yarn From France; No. 

16 

6 Commissioner Minchew did not vote because he was unavailable tor the 

Commission meeting at the time of the vote. 

9 Chairman Parker did not participate 1n the vote in order to avoid any possibility 

or appearance of conflict of interest. 

AA1921-187, Motorcycles From Japan; and No. 

AA 1921-188, Steel Wire Strand for Prestressed 

Concrete From Japan. 
Inquiries Under Section 201 (c)(2) of the 

Antidumping Act 

The Trade Act of 1974 amended the Antidumping Act, 

1921, in a number of respects. The Secretary of the Treasury is now authorized to forward to the Commission any 

investigation of alleged sales at less than fair value in which 

he believes there is substantial doubt that an industry in the 

United States is being or is likely to be injured, or is prevented from being established, by reason of the importation of the subject merchandise. The Commission determines, within 30 days, whether there is no reasonable 

indication that an industry is being or is likely to be injured, 

or is prevented from being established. If the Commission 

finds no reasonable indication, it is required to so advise 

the Secretary, and the investigation is then terminated. 

During fiscal 1978, 16 such investigations 

were completed. They are summarized in table 

11. 

Litigation Arising From Investigations 

Conducted Under the Antidumping Act 

On May 11, 1978, the Customs Cc•urt ruled in 

SCM Corp. v. United States, 450 F. Supp. 1178 

(1978), that it has jurisdiction to hear the appeal of a negative injury determination by the 

Commission in investigation No. AA1921-145 

Table 11.-Antidumping inquiries completed in fiscal year 1978 

Commissioners' votes Commission's ·port 

Finding that Not finding 

"there is no that "there is 

Investigation Article Petition Public reasonable in· no reasonable Not 

No. concerned filed hearing di cation indication participating To Secretary USITC 

[of injury]" [of injury]" of Treasury Publication 

(Treasury ter- (Treasury No. 

minates its continues its 

investigation) investigation) 

AA1921-lnq.-7 . . Methyl alcohol from Brazil . 9-13-77 10- 3-77 Parker 10-13-77 837 

Moore 

Bedell 

Ablondi 

Minchew 

AA 1921-lnq.-8 and 9 Carbon steel bars 1-17-78 2- 1-77 Alberger' Al berger' Parker' 2-16-78 885 

and -carbon steel strip Moore 

from the United Kingdom. Bedell 

Ablondi 

Minchew 

AA1921-lnq.-10. Uncoated free sheet offset 2-17-78 3-13-78 Alberger Parker 3-20-78 869 

paper from Canada. Moore 

Bedell 

Ablondi 

Minchew 

AA1921-lnq.-11 Photographic color paper 4- 7-78 4-27-78 Parker 5- 8-78 885 

and 12. from Japan and Alberg er 

West Germany. Moore 

Bedell 

Ablondi 

Minchew 

AA1921-lnq.-13 . Methyl alcohol from 6- 9-78 6-26-78 Parker 7-10-78 898 

Canada. Alberger 

Moore 

Bedell 

Ablondi 

Minchew 

AA1921-lnq.-14, 15, Perchloroethylene from 7-19-78 8- 4-78 Alberg er Parker Minchew" 8-18-78 904 

and 16. Belgium. France. and Ablondi Moore 

Italy. Bedell 

AA1921-lnq.-17. Stainless steel round 7-26-78 8-17-77 Al berger Parker' 8-25-78 907 

wire from Japan. Moore Minchew" 

Bedell 

Ablondi 

AA1921-lnq.-18 Standard household 8- 4-78 8-22-78 Alberg er Parker Minchew" 9- 5-78 912 

incandescent lamps Moore Ablondi 

from Hungary. Bedell 

AA1921~nq.-19 . Certain automotive and 8- 7-78 8-24-78 Alberger Parker Minchew" 9- 6-78 913 

motorcycle repair Ablondi Moore 

manuals from the Bedell 

United Kingdom. 

AA 1921-lnq.-20. 21. Sugar from Belgium. 8-18-78 9- u-78 Ablondi Parker Minchew" 9-18-78 916 

and 22. France, and West Alberg er 

Germany. Moore 

Bedell 

1 Commissioner Alberger found no reasonable indication of rnjury with respect 3 Chairman Parker did not participate 1n the vote rn order to avoid any possibilto carbon steel bars. 1ty or appearance of conflict of interest. 2 Commissioner Alberger did not find no reasonable indication of injury with 4 Commissioner Minchew did not vote because he was unavailable for the 

respect to carboA steel strip. Commission meeting at the time of the vote. 

17 
(Portable Electric Typewriters From Japan). As of 

September 30, 1978, the parties to this appeal 

were in the discovery process. 

In a complaint filed with the Customs Court on 

October 17, 1974, Pasco Terminals, -Inc., asserted, inter alia, that the injury determination of 

the Commission in investigation No. AA 1921-92 

(Elemental Sulfur From Mexico) was invalid. The 

Customs Court held that Pasco Terminals, Inc., 

had no standing to protest the imposition of 

dumping duties (416 F. Supp. 1242 (1974)). 

Pasco Terminals, Inc., moved for a rehearing of 

that decision, and on December 1, 1976, the 

motion for rehearing was denied (C.D. 4676). On 

appeal, the U.S. Court of Customs and Patent 

Appeals reversed and remanded the case to the 

Customs Court, where as of September 30, 

1978, it awaited oral argument on cross-motions 

for summary judgment. 

In complaints filed with the Customs Court during 1973, plaintiffs Atkins Kroll & Co., Inc., and 

Border Brokerage Co., Inc., asserted that the 

injury determinations of the Commission in investigations Nos. AA 1921-33 (Steel Reinforcing 

Bars From Canada) and AA 1921-39 (Carbon 

Steel Bars and Shapes From Canada}, respectively, were invalid. The cases were pending at 

the close of the fiscal year. 

As noted in the Commission's annual report for 

1977, Armstrong Bros. Tool Co. et al. filed complaints with the Customs Court on September 26, 

1977, asserting, inter alia, that the negative determinations of the Commission in investigations 

Nos. AA1921-141 (Wrenches, Pliers, Screwdrivers, and Metal-Cutting Snips and Shears From 

Japan) and AA1921-149 (Chisels, Punches, 

Hammers, Sledges, Vises, C-Clamps, and Battery Terminal Lifters From Japan) were invalid. 

Also on September 26, 1977, Sprague Electric 

Co. filed a complaint with the Customs Court 

challenging the Commission's negative determination in investigation No. AA1921-159 (Tantalum Electrolytic Fixed Capacitors From Japan). 

At the close of the fiscal year, all these cases 

were still in the discovery phase of litigation. 

On July 28, 1978, Monsanto Co., a domestic 

manufacturer of chemical sorbates, filed a compl!aint in the U.S. District Court for the District of 

Columbia seeking, inter alia, a temporary restraining order and a preliminary injunction to 

18 

prevent the Commission from continuing with investigation No. AA 1921-183 (Sorbates From 

Japan), which was instituted on June 16, 1978. 

The basis of the action was that the Treasury 

Department had allegedly used erroneous 

methodology in arriving at its final determination 

of sales at less than fair value. Oral argument on 

plaintiff's motion for a temporary restraining 

order was heard by Judge Oliver Gasch, who 

denied the motion. Plaintiff's motion for a preliminary injunction came before Chief Judge William 

B. Bryant, who denied the motion on the grounds 

that (1) plaintiff had failed to show irreparable 

harm, (2) preliminarily enjoining the Commission 

would harm third parties, and (3) the public 

interest favored allowing the Commission's investigation to continue. No appeal was taken 

from this denial. 

SECTION 22 OF THE AGRICULTURAL 

ADJUSTMENT ACT, AS AMENDED 

Section 2217 of the Agricultural Adjustment Act, · 

as amended, provides thatWhenever the Secretary of Agriculture has a reason to 

believe that any article or articles are being or are practically certain to be imported into the United States under 

such conditions and in such quantities as to render or tend 

to render ineffective, or materially interfere with, any program or operation undertaken ... by the Department of 

Agriculture or any agency operating under its direction, 

with respect to any agricultural commodity or product 

thereof, or to reduce substantially the amount of any product processed in the United States from any agricultural 

commodity or product thereof with respect to which any 

such program or operation is being undertaken, he shall so 

advise the President, and, if the President agrees that there 

is reason for such belief, the President shall cause an 

immediate investigation to be made by the United States 

International Trade Commission, which shall give precedence to investigations under this section to determine 

such facts. Such investigation shall be made after due 

notice and opportunity for hearing to interested parties, 

and shall be conducted subject to such regulations as the 

President shall specify. 

Pursuant to a request of the President received 

on November 14, 1977, the Commission conducted investigation No. 22-41, on sugar. Public 

hearings were held on January 4 and 17 and on 

February 27 and 28, 1978, and the report (USITC 

Publication 881) was transmitted to the President 

on April 17, 1978. In this investigation the Commission found that imports of sugar, sirups, and 

11 7 U.S.C. 624. 
molasses provided for in items 155.20 and 

155.30 of the Tariff Schedules of the United States 

were being imported under such conditions and 

in such quantities as to render or tend to render 

ineffective, or materially interfere with, certain 

price-support programs of the U.S. Department 

of Agriculture. The Commissioners' detailed recommendations may be found in the report. 

19 

TRADE AGREEMENTS PROGRAM 

The Commission regularly assists the executive branch of the Government in work connected with the trade agreements program. Assistance is provided to the President primarily through the Office of the 

Special Representative for Trade Negotiations (STR), 1 the executive 

branch center for many trade-agreement activities. Substantial Commission assistance is also given directly to particular executive departments, such as the Departments of State, Commerce, Labor, Agriculture, and Treasury, which have responsibilities in the program. 

Under section 163(b) of the Trade Act of 197 4, the Commission is 

to submit a yearly report to Congress on the operation of the trade 

agreements program. The 28th report, covering calendar year 1976, 

was issued in fiscal year 1978. 

The Commission's work relating to the trade agreements program 

during fiscal 1978 fell into three major areas. The first consisted of 

assembling tariff, commodity, and statistical information in support of 

activities associated with the current round of multilateral trade negotiations or the program's daily operation. The second involved technical 

assistance to the STR in work related to the operation of the 

Generalized System of Preferences (GSP). The third involved technical 

assistance to the STR in conducting the interagency executive branch 

review of certain reports which the Commission submits to the President. 

Multilateral Trade Negotiations 

A seventh round of comprehensive multilateral trade negotiations 

(MTN) under the auspices of the General Agreement on Tariffs and 

Trade (GATT) opened in September 1973. The negotiations were in 

progress in Geneva, Switzerland, throughout the period covered by 

this report. The Commission provided technical assistance to the STR 

in most areas of the negotiations. Computer data on U.S. imports and 

tariffs were prepared for the U.S. delegation in Geneva. Technical 

assistance was regularly provided to many of the Washington-based 

task forces which provide support for the U.S. delegation, including 

extensive assistance in assembling statistics and other data for the 

U.S. tariff offers initially tabled in Geneva in January 1978. Commission 

staff and Commissioners participated in Geneva meetings of the MTN 

negotiations groups, and five members of the Commission staff were 

on the permanent U.S. MTN delegation in Geneva. In addition to the 

above activities, to assist STR in the conduct of the negotiations, the 

Commission prepared major reports on customs valuation and on the 

conversion of specific and compound tariff rates to simple ad valorem 

duties. Data were also provided for bilateral negotiations with Taiwan. 

1 The Special Trade Representative is the chief representative of the United States at tradeagreement negotiations, to whom the President has delegated many of his functions under the Trade 

Act of 1974 (Executive Order 11846, Mar. 27, 1975). A member of his staff serves as Chairman of the 

Trade Policy Staff Committee, which obtains information and advice from Government agencies and 

other sources and recommends policies and actions to the Special Representative. The U.S International Trade Commission 1s represented on the Trade Policy Staff Committee, but does not vote and 

does not participate in decisions on policy matters because the Commission is the policy research and 

factfinding agency for both Congress and the executive branch. 

Q 

. I 

=-

~ 

Im; 

~ 

n 

' ..... I 

< 

..... 

' ..... I 

~ 

Cll 

21 
Toward the end of fiscal 1978, at the request of 

the Senate Committee on Finance and the House 

Committee on Ways and Means, the Commission 

began work on an extensive analysis of the MTN. 

This study will assess the impact on the U.S. 

economy (in terms of imports, exports, domestic 

production, and employment) of the tariff reductions made by the United States and its major 

trading partners, the nontariff-measure codes 

being negotiated on safeguards, governments, 

procurement, subsidies, standards, licensing, 

and customs valuation, and the specific 

agreements on individual nontariff measures. 

The Commission continued to supply the 

GATT Secretariat in Geneva with compilations of 

data on U.S. imports, tariffs, and tradeagreement obligations. Most of this was part of a 

continuing compilation of trade and tariff information to provide basic data for the multilateral 

trade negotiations. Since virtually all international 

tariff and trade work is conducted in terms of the 

product classifications of the Customs Cooperation Council Nomenclature (CCCN), formerly 

called the Brussels Tariff Nomenclature, the 

Commission regularly provides the GATT Secretariat with information on the concordance between the Tariff Schedules of the United States 

(TSUS) and the CCCN. This concordance is continuously being updated at the Commission. 

Work required for the regular operation of the 

trade agreements program, apart from MTN activities, included, inter alia, completion of a draft 

consolidated schedule of U.S. concessions 

under the GATT, which has been distributed to 

the GA TT contracting parties, and assistance in 

bilateral negotiations with Finland concerning 

U.S. tariff treatment of papermaking machinery. 

Generalized System of Preferences 

The Trade Act of 197 4 gave the President authority to establish a Generalized System of Preferences, under which eligible articles that are 

the product of designated beneficiary developing countries can be imported into the United 

States free of duty. Executive Order 11888 implemented the GSP effective January 1, 1976; 

the Special Trade Representative and the Secretary Of State are jointly responsible for its administration. The Executive order has been modified 

several times to change the list of articles receiv22 

ing GSP treatment. The Commission provided 

technical assistance in the interagency review 

leading to these modifications, as well as assistance in preparation of the orders implementing 

the changes. In addition, Commission personnel 

assisted in monitoring GSP imports and did the 

major part of the work entailed in application of 

the "competitive need" criteria set out in section 

504 of the Trade Act. For the fifth executive 

branch review of the operation of GSP, parts of 

which consisted of public hearings held by the 

Trade Policy Staff Committee, the STR was 

suppiied technical data on U.S. production of 

and trade in more than 175 articles on which 

petitions had been submitted for a modification 

of their GSP status. 

Executive Branch Review of Commission 

Reports 

Many of the reports which the Commission 

submits to the President under various statutes, 

such as section 201 of the Trade Act of 197 4, 

involve matters on which action by the President 

would affect trade-agreement obligations of the 

United States. Executive branch review of these 

reports for the purpose of formulating executive 

branch recommendations to the President is 

usually centered in the office of the Special 

Trade Representative. The Commission provides 

technical assistance in the review process, including such supplemental information as may 

be required. During the period covered by this 

report the Commission submitted nine reports to 

the President on investigations which were instituted as a result of petitions for import relief 

under section 201 of the Trade Act, one report 

under section 203 of the Trade Act, one report 

under section 406 of the Trade Act, and three 

reports under section 337 of the Tariff Act of 

1930. Most of these reports required eventual 

action by the President.2 

2 The reports under sec. 201 of the Trade Act concerned 1nvest1gations to determine whether a domestic industry was being seriously 

injured, or threatened with serious 1n1ury. by imported articles. The 

products involved were high-carbon ferrochrom1~m (two 1nvest1gations); bicycle tires and tubes; unalloyed. unwrought copper; stainless 

steel flatware; certain fishing tackle; c1t1zens band radio transceivers. 

unalloyed, unwrought zinc; and bolts. nuts, and large screws of 1 ron or 

steel. 

The report under sec. 203 of the Trade Act concerned an investigation of the effect on the domestic industry of removing temporary 

import quotas on certain stainless steel and alloy tool steel. 

The report under sec. 406 of the Trade Act concerned market 
UNIFORM STATISTICAL DATA 

ON IMPORTS, EXPORTS, 

AND PRODUCTION 

Activities Under Section 484(e) of the Tariff Act 

of 1930 

Section 608( a) of the Trade Act of 197 4 and 

Public Law 95-106 amended section 484(e) 3 of 

the Tariff Act of 1930 by providing for comparability of U.S. import, production, and export data, 

as follows: 

(e) Statistical Enumeration.-The Secretary of the Treasury, the Secretary of Commerce, and the United States 

International Trade Commission are authorized and directed to establish from time to time for statistical purposes 

an enumeration of articles in such detail as in their judgment may be necessary, comprehending all merchandise 

imported into the United States and exported from the 

United States, and shall seek, in conjunction with statistical 

programs for domestic production and programs for 

achieving international harmonization of trade statistics, to 

establish the comparability thereof with such enumeration 

of articles. All import entries and export declarations shall 

include or have attached thereto an accurate statement 

specifying, in terms of such detailed enumeration, the 

kinds and quantities of all merchandise imported and exported and the value of the total quantity of each kind of 

article. 

A great amount of work during fiscal years 

1976 and 1977 by the Commission and the Departments of the Treasury and Commerce resulted in the preparation and printing of a 1978 

edition of Schedule B (the export schedule) 

based on the Tariff Schedules of the United 

States Annotated (TSUSA), and a 1978 edition of 

the TSUSA incorporating ehanges providing for 

greater comparability with exports and production, and in changes in the product codes based 

on the Standard Industrial Classification providing for greater comparability with imports and 

exports. 

In addition, the Committee for Statistical Annotation of Tariff Schedules, which is made up of 

delegates of the Secretary of the Treasury and 

the Secretary of Commerce and which is chaired 

by a delegate of the Commission, considered 4 7 

requests for statistical annotations to the TSUSA 

and 62 requests for modifications to Schedule B. 

disruption from imports of clothespins from the People's Republic of 

China, Poland, and Romania. 

The reports under sec. 337 of the Tariff Act of 1930 concerned 

unfair acts in the importation into the United States of certain welded 

stainless steel pipe and tube, certain display devices for photographs 

and the like, and certain molded golf balls. 

3 19 U.S.C. 1484(e). 

As a result of these requests, the Committee 

created 235 new TSUSA items and provided 168 

new Schedule B numbers. 

Harmonized Commodity Code 

Pursuant to section 608(c) of the Trade Act of 

1974, in fiscal year 1975 the Commission undertook an investigation under section 332(g) of the 

Tariff Act of 1930 which would provide the basis 

forfull and immediate participation by the United States International Trade Commission in the United States contribution to technical work of the Harmonized Systems [sic] 

Committee under the Customs Cooperation Council to assure the recognition of the needs of the United States 

business community in the development of a Harmonized 

Code reflecting sound principles of commodity identification and specification and modern producing methods and 

trading practices 

During fiscal year 1978 the Commission participated in the U.S. contribution to the technical 

work of the Harmonized System Committee by 

preparing comments on 29 chapters of the Harmonized Code, and by providing technical assistance to the U.S. delegate to the Harmonized 

System Committee at Committee sessions. In 

addition, preliminary work was done on 32 new 

chapters of the Harmonized Code. In an effort to 

afford all interested parties an opportunity to contribute to the Commission's role in drafting comments on the Harmonized Code, the Commission 

held hearings on 29 chapters throughout the 

year. 

PREPARATION OF THE TARIFF SCHEDULES 

OF THE UNITED STATES ANNOTATED 

The Tariff Schedules of the United States Annotated is published periodically by the Commission. It contains the classifications used for 

reporting import data by commodity and by supplying countries. The schedules delineate some 

11,000 commodity classifications for which import statistics are collected. At appropriate intervals the TSUSA is updated to reflect the effects 

of legislation, Presidential proclamations and 

Executive orders, and other modifications of the 

schedules. 

During fiscal 1978 the Commission issued the 

10th (1978) edition of the TSUSA and supplements 1 through 3 thereto. 

23 
PERIODIC REPORTS ON COMMODITIES 

Synthetic Organic Chemicals 

The Commission has regularly prepared annual and monthly reports on synthetic organic 

chemicals, plastics, and resin materials. The annual reports have been published since 1918; 

the monthly production reports evolved from 

studies of hundreds of organic chemicals begun 

during World War I. 

Government uses of these data reportedly include monitoring of toxic substances by the Environmental Protection Agency and the National 

Institute for Occupational Safety and Health, 

trade adjustment assistance by the Department 

of Labor, planning and investigations by the 

Food and Drug Administration, possible concessions in trade negotiations by the Office of the 

Special Representative for Trade Negotiations, 

and monitoring of the economy (particularly the 

chemical industry) by the Council on Wage and 

Price Stability. The business community, including industry, consultants, and financial analysts, 

also reportedly uses these data extensively. 

Annual Reports.-The 60th annual report on 

U.S. production and sales of synthetic organic 

chemicals, covering calendar year 1976, was 

released by the Commission on October 27, 

1977.4 Fifteen groups of chemicals were involved: 

Tar and tar crudes 

Primary products from petroleum and natural gas for chemical conversion 

Cyclic intermediates 

Dyes 

Organic pigments 

Medicinal chemicals 

Flavor and perfume materials 

Plastics and resin materials 

Rubber-processing chemicals 

Elastomers (synthetic rubber) 

Plasticizers 

Surface-active agents 

Pesticides and related products 

Miscellaneous end-use chemicals and chemical products 

Miscellaneous cyclic and acyclic chemicals. 

Approximately 750 manufacturers report data 

to the Commission on some 8,000 chemical 

products; these data form the base for the annual report. Also included in the annual report is 

a di rectory of manufacturers for each of the 

4 Synthetic Organic Chemicals, United States Production and 

Sales, 1976, USITC Publication 833, 1977. 

24 

named chemicals and chemical products. The 

data for another annual Commission publication, 

Imports of Benzenoid Chemicals and Products, 

are obtained by analyzing invoices covering 

most of the general imports of benzenoid chemicals. 

Monthly reports.-The monthly production reports (Series C/P) add timeliness to the Commission's statistics. A report, containing production 

data for 97 selected synthetic organic chemicals, plastics, and resins (trend-setting indicator 

materials), is issued for each month at a date 

approximately 6 weeks after the month covered 

by the report. 

Quantitative Determinations 

As required by statute, Executive order, or 

Presidential proclamation, the Commission continued to submit annual and quarterly reports 

during fiscal year 1978 on several commodities. 

Annual reports were submitted on U.S. consumption of watch movements5 and brooms. 6 

In 1976, after receiving the Commission's report on stainless steel and alloy tool steel (investigation No. TA-201-5), the President imposed 

quantitative restrictions on stainless steel and 

alloy tool steel for a period of 3 years and implemented a monitoring program administered 

by the Commission. 7 In fiscal year 1978, the 

Commission issued four quarterly reports8 covering U.S. producers' production, shipments, employment, man-hours, and prices. Two annual 

reports9 were also issued during the year. One 

covered U.S. importers' prices, unshipped orders, and inventories; the other covered U.S. 

producers' profit, unshipped orders, inventories, 

capacity, capital expenditures, and research 

and development expenditures. The quarterly 

and annual reports are to continue for the duration of the quantitative restrictions. 

5 Public Law 89-805 (80 Stat. 1521, 1522) and Public Law 89-241 

(79 Stat. 948, 949); unnumbered USITC publication, 1978. 

6 Executive Order 11377 implements headnote 3 to schedule 7, pt. 

8, subpt. A, of the TSUS; USITC Publication 878, 1978. 

7 Presiaential Proclamation 4445 implements headnote 2(g)(i) of 

pt. 2, subpt. A, of the Appendix to the TSUS. 

8 Third calendar quarter 1977, unnumbered USITC publication, 

1977; fourth calendar quarter 1977, USITC Publication 853, 1978; first 

calendar quarter 1978, USITC Publication 888, 1978; second calendar quarter 1978, USITC Publication 903, 1978. 

9 Annual report on U S. importers for calendar year 1977, USITC 

Publication 874, 1978; annual report on US. producers for calendar 

year 1977, USITC Publication 875, 1978. 
In conformance with the provisions of the orderly marketing agreement negotiated with the 

Government of Japan limiting the export of color 

television receivers and certain subassemblies 

thereof from Japan to the United States for a 

period of 3 years, 10 the Commission issued four 

quarterly reports11 showing aggregate monthly 

data provided by U.S. producers of color TV 

receivers on production, shipments, inventories, 

imports, employment, man-hours, prices, and 

other economic factors indicative of conditions in 

the U.S. industry. In addition, the Commission 

issued the first of the required annual reports12 

showing quarterly data on profit and capacity 

and annual data on capital expenditures and 

research and development expenditures for U.S. 

producers, and quarterly data on prices, orders, 

and inventories for importers. These periodic reports will continue for the duration of the orderly 

marketing agreement. 

Following receipt of the Commission's report 

on mushrooms in January 1977 (investigation 

No. TA-201-10), the President determined that 

import relief was not in the national economic 

interest. However, he decided. to monitor import 

competition in the domestic market for canned 

mushrooms. Accordingly, pursuant to section 

332(g) of the Tariff Act of 1930, the President 

requested the Commission to prepare quarterly 

statistical reports on U.S. production, sales, inventories, imports, exports, and apparent consumption of canned mushrooms. These quarterly 

reports are to be continued until the Commission 

is notified by STA that they are no longer required. The Commission issued four such quarterly reports in fiscal 1978. 13 

After considering the Commission's report on 

footwear (investigation No. TA-201-18), the President decided not to impose the tariff-rate-quota 

remedy recommended by the Commission for 

the injury it found, but rather to negotiate orderly 

marketing agreements limiting the export of cer10 Presidential Proclamation 4511, June 24, 1977. 

11 Third calendar quarter 1977, unnumbered USITC publication, 

1977; fourth calendar quarter 1977, USITC Publication 866, 1978; first 

calendar quarter 1978, USITC Publication 886, 1978; second calendar quarter 1978, USITC Publication 901, 1978. 12 Annual report for calendar year 1977, USITC Publication 877, 

1978. 13 Third calendar quarter 1977, unnumbered USITC publication, 

1977; fourth calendar quarter 1977, USITC Publication 864, 1978; first 

calendar quarter 1978, USITC Publication 890, 1978; second calendar quarter 1978, USITC Publication 908, 1978. 

tain footwear from Taiwan and the Republic of 

Korea to the United States. On June 24, 1977, he 

announced such agreements covering certain 

footwear shipped to the United States for the 4 

years ending June 30, 1981. 14 The President announced that the Commission would issue quarterly reports showing monthly data on U.S. production, imports for consumption, apparent consumption, employment, and prices. It would also 

conduct annual surveys of domestic producers 

with respect to profit, orders, capacity, inventories, prices, capital expenditures, and research and development expenditures, and annual surveys of importers with respect to prices, 

orders, and inventories. The Commission issued 

the first of its annual surveys of footwear producers and importers on May 31, 1978.15 In addition, four quarterly reports were issued during 

fiscal 1978. 16 The quarterly and annual reports 

are to continue for the duration of the orderly 

marketing agreements. 

Other Periodic Reports 

The compilation and publication of the following two series of data began some years ago in 

response to congressional and general public 

interest. Series A relates to all motor vehicles 

(i.e., passenger automobiles, trucks, buses, and 

so forth) and is published annually, in the spring; 

Series B relates to new passenger automobiles 

only and is published annually, in the fall. Three 

such reports were published during fiscal year 

1978: 

Automotive Trade Statistics, 1964-76, Series B: 

New passenger automobiles_· Statistical data 

relating to U.S. factory sales, retail sales, imports, exports, apparent consumption, 

suggested retail prices, and U.S. bilateral 

trade balances with the eight major producing 

countries, USITC Publication 839, October 

1977. 

Automotive Trade Statistics, 1964-77, Series A: 

Motor Vehicles: U.S. Factory Sales, Imports, 

14 Presidential Proclamation 4510, June 22. 1977, implements 

headnote 3(k) to pt. 2, subpt. A, of the Appendix to the TSUS. 

15 Annual report for calendar years 1976 and 1977. USITC Publication 889, 1978. 

16 Third calendar quarter 1977, unnumbered USITC publication, 

1977; fourth calendar quarter 1977, USITC Publication 865, 1978; first 

calendar quarter 1978, USITC Publication 891, 1978; second calendar quarter 1978·, USITC Publication 909, 1978. 

25 
Exports, Apparent Consumption, and Trade 

Balances With Canada and All Other Countries, USITC Publication 887, May 1978. 

Automotive Trade Statistics, 1964-77, Series B: 

Passenger Automobiles: U.S. Factory Sa/es, 

Retail Sa/es, Imports, Exports, Apparent 

Consumption, Suggested Retail Prices, and 

U.S. Bilateral Trade Balances With the Eight 

Major Producing Countries, USITC Publication 913, September 1978. 

SUMMARIES OF TRADE AND TARIFF 

INFORMATION 

The Commission periodically publishes a 

series of summaries of trade and tariff information to provide the Congress, the courts, Government agencies, foreign governments, industrial institutions, research and trade organizations, and the general public with information on 

each of the commodities listed in the Tariff 

Schedules of the United States. 

These summaries provide comprehensive 

coverage of product uses, manufacturing processes, and commercial practices, and include 

analysis of the numerous factors affecting U.S. 

and world trade in each commodity area. 

In fiscal year 1978 the Commission issued the 

first 16 summaries in the new series, which will 

consist of approximately 1,000 individual reports; the Commission will issue update sheets 

as appropriate for individual summaries. The 

overall program will run several years, ultimately 

covering all items of the TSUS. The summaries 

issued in fiscal year 1978 (USITC Publication 

841) covered a variety of subjects, as follows: 

Title 

Synthetic Plastics Matenals 

Luggage . 

Fireworks 

Body-Supporting Garments 

Sweaters .. 

Fish Netting and Fishing Nets of Textile 

Materials 

Broadwoven Fabrics of Manmade Fibers 

Physical Testing Machines and Appliances . 

Hardwood Plywood 

Fresh Cut Flowers and Articles Made From 

Such Flowers or Other Plant Parts 

Writing Instruments 

Coffee. 

Wood Doors .. 

Synthetic Elastomers 

Soybeans and Soybean Products . 

Pianos and Other Keyboard Stringed 

Instruments . 

26 

Control No. Release date 

4-1,4-1 October 1977 

7-1-1 November 1977 

7-9-2 November 1977 

3-6-3 January 1978 

3-6-2 January 1978 

3-4-1 January 1978 

3-3-4 February 1978 

7-2-3 March 1978 

2-3-1 April 1978 

1-15-1 Apnl 1978 

7-10-4 May 1978 

1-11-2 June 1978 

2-1-2 June 1978 

4-4-2 July 1978 

1-14-3 July 1978 

7-3-5 September 1978 

ASSISTANCE TO THE CONGRESS 

During fiscal year 1978, the Office of Congressional Liaison continued to provide liaison with the 

Congress, State and local governments, international organizations, and nonexecutive Government agencies. Responding to congressional inquiries remained a major activity of the Office: the 

Commission replied to an average of 81 written 

requests and 160 oral inquiries each month. In 

addition, technical assistance was provided on 

43 bills, and staff specialists participated at a 

number of congressional hearings. 

The Commission continued to provide information in response to inquiries resulting from two 

briefings conducted for congressional aides during fiscal 1977, one on the general background 

and activities of the Commission and the other 

concerning the production and importation of 

steel. In February 1978, another briefing was held 

for congressional staff members regarding 

foreign steel operations. 

Specific requests from the Committee on Ways 

and Means of the U.S. House of Representatives 

resulted in the institution of several investigations: 

one, A Baseline Study of the Telephone Terminal 

and Switching Equipment Industry (No. 332-92) 

was initiated under section 332 of the Tariff Act of 

1930, and two, High-Carbon Ferrochromium (No. 

TA-201-35) and Bolts, Nuts, and Large Screws of 

Iron or Steel (No. TA-201-37), were initiated under 

section 201 of the Trade Act of 197 4. The report 

on high-carbon ferrochromium was completed 

and sent to the President in September 1978. The 

other two investigations were in progress at the 

end of the fiscal year. In addition, a joint request 

from the Senate Committee on Finance and the 

House Committee on Ways and Means resulted in 

the institution of another investigation under section 332 of the Tariff Act of 1930, The Probable 

Effects of Implementation of Agreements Being 

Negotiated at the Multilateral Trade Negotiations 

in Geneva (No. 332-101). This review was also in 

progress at the end of the fiscal year. 

The report on a section 332 investigation that 

the Commission instituted on its own motion in 

fiscal 1977 after receiving a congressional request, Conditions of Competition in U.S. Markets 

Between Domestic and Foreign Live Cattle and 

Cattle Meat Fit for Human Consumption (No. 

332-85), was completed in November 1977. 
Another investigation, initiated in fiscal 1977 

under the same circumstances, Conditions of 

Competition in the Western U.S. Steel Market 

Between Certain Domestic and Foreign Steel 

Products (No. 332-87), was nearing completion at 

the end of the fiscal year. 

In fiscal 1978 the Commission also completed a 

study of the economic impacts of the transfer of 

U.S. technology abroad. The study was required 

by the U.S. Congress in section 119 of the Export 

Administration Amendments of 1977 and was a 

joint effort of the Commission and the U.S. Departments of Commerce and Labor. The Senate 

Committee on Banking, Housing and Urban Affairs published the report as an addendum to 

hearings on technology transfer held before the 

Subcommittee on International Finance. 17 

During the year, 27 Members of Congress appeared as witnesses or were represented at hearings before the Commission, and written testimony was received from additional Members. 

GOVERNMENT IN THE SUNSHINE 

The Commission's implementation of the provisions of the Government in the Sunshine Act18 

places it among the top Federal agencies for 

compliance with the spirit of open government. 

Common Cause gave the Commission high ratings in both 1977 and 1978 for its efforts in meeting or going beyond the literal statutory requirements. 

Several requirements of the Commission's 

Rules of Practice and Procedure go beyond the 

minimum requirements of the act. For instance, 

whereas the Government in the Sunshine Act only 

requires that a complete recording or transcript of 

closed meetings be maintained by an agency, the 

Commission's rules require a complete recording 

or transcript of all Commission meetings, whether 

open or closed to the public. By providing for a 

complete, verbatim transcript or recording of all 

Commission meetings, the deliberations and actions of the Commission are accessible to all 

17 U.S. International Trade Cornrn1ss1on, US. Department of Corn· 

rnerce. and U.S. Department of Labor. "Technology Transfer: A Re· 

view of Econorn1c Issues." 1n Export Policy.· Part 7, Oversight on U.S. 

High Technology Exports, Heanngs. Cornrn1ttee on Banking. Housing 

and Urban Affairs of the US Senate (95th Cong., 2d sess.). May 16. 

1978, pp. 317·364 

18 5 u s c 552b. 

interested persons, whether they happen to be in 

Washington, D.C., or not. 

The Commission's rules also exceed the act's 

minimum requirement of 1 week's advance public 

notice by providing for 10 days' notice in order to 

insure better advance notice of impending Commission meetings. The Commission's regulations 

require the Secretary to the Commission to (1) 

post required public notices promptly on bulletin 

boards outside his office, (2) make copies of such 

notices available promptly to interested members 

of the public by mailing copies to persons on the 

Commission's "sunshine mailing list" and distributing copies to the press, and (3) submit the 

required public notices to the Federal Register for 

publication. In addition, staff members in the Secretary's Office are available by telephone or in 

person to answer questions concerning the 

agenda of impending Commission meetings. In 

"emergency" situations where a meeting has 

been called on short notice or an item has been 

added to an agenda, the Secretary's Office attempts to call interested members of the public by 

telephone to insure that they are aware of an 

impending Commission meeting. 

Although the act provides several bases for 

closing Commission meetings to public observation, the Commission discusses the great majority 

of subjects in open session. Portions of meetings 

have been closed to protect individuals from 

clearly unwarranted invasions of personal privacy, to protect the confidentiality of business 

information, and to protect information concerning the multilateral trade negotiations in Geneva, 

authorized to be kept secret in the interests of 

foreign policy. 19 

Interested members of the public are invited to 

attend and observe "Government in the sunshine" at the Commission's meetings, usually 

held in room 117, 701 E Street NW., Washington, 

D.C. 20436. 

NEW YORK CITY FIELD OFFICE 

While maintaining its headquarters in Washington, D. C., from its earliest days the Commission 

recognized the advisability of operating a field 

office in the Nation's leading center for interna19 19 CFR 201.36(b)(6), (4), and (1), respectively. 

27 
tional commerce-the port of New York and New 

Jersey. Established in 1922, the New York facility 

remains the only Commission office functioning 

outside the Nation's Capital. 

Located in the U.S. Customs Service area 

within the World Trade Center complex in lower 

Manhattan, the Commission's field office performs several functions. The office develops and 

maintains liaison with numerous agencies and 

organizations at the New York-New Jersey port, 

including the U.S. Customs Service, the United 

Nations, numerous consulates, transportation 

companies and freight forwarders, export/import 

shippers and manufacturers, and banking representatives. 

From their vantage point at the World Trade 

Center, Commission personnel provide timely assessments of developments or trends which 

might affect the work of the Commission. The field 

office gathers data and supplies technical assistance required in the conduct of studies and 

investigations. At the same time, it provides information and assistance to the general public, 

the trade community, and various Government 

agencies. Particularly useful is the library which 

the Commission maintains at Suite 629, 6 World 

Trade Center. Serving as the field office's information center, the library contains Commission reports, notices, and press releases, as well as 

selected statistical data, legal documents, com28 

modity classification schedules, and other traderelated publications. 

FACTFINDING HEARINGS HELD IN 14 CITIES 

To increase public awareness and participation, the Commission held 18 factfinding 

hearings in 14 cities throughout the Nation. Witnesses presented testimony in connection with 14 

Commission investigations. The factfinding hearings are a conscious effort by the Commission to 

make it possible for any citizen to participate in 

the Government decisionmaking process. The 

out-of-Washington hearings also enable the area 

news media to cover trade problems of concern 

to U.S. firms and workers, such as the impact of 

imports coming to the United States on production and jobs. During fiscal year 1978, hearings 

were held in Seattle, Wash. (carbon steel plate); 

Portland, Oreg., San Francisco and Los Angeles, 

Calif., and Denver, Colo. (Western steel study); 

Los Angeles, Calif. (Generalized System of Preferences); Tucson, Ariz. (copper); Houston, Tex. 

(methyl alcohol); Minneapolis, Minn., and New 

Orleans, La. (sugar); Chicago, Ill. (wood doors 

and fishing tackle); Cleveland, Ohio (fasteners); 

Pittsburgh, Pa. (high-carbon ferrochromium); 

New York, N.Y. (impression fabric, offset paper, 

and leather wearing apparel); and Portland, 

Maine (clothespins). 
.,,,,. 

. "' 

" 

I\:) 

co 

The USITC held 18 public hearings in 14 cities during fiscal year 1978. 

Denver 
2 

30 

3 

Fasteners 

The public's right to participate in the Government decision making process is 

supported by the Commission's factfinding hearings in the localities most 

affected by its investigations. Typical of the important and varied caseload 

handled by the Commission during the year was the hearing held on September 

11and12, 1978, in Euclid, Ohio (1). Some 200 people were present as the 

Commission obtained testimony regarding imports of fasteners (bolts, nuts, and 

large screws) and their effect on the domestic industry. Conducted in the heart 

of the Nation's domestic fastener-manufacturing area, the hearing attracted 

considerable news media attention because of the products' impact on family 

income, jobs, firms, and the Cleveland area economy. More than 13,000 

workers are involved, with primary production facilities concentrated in Ohio, 

Pennsylvania, Michigan, and Illinois. The investigation was requested by the 

House Ways and Means Committee. Senator John Glenn (2) and Representatives Charles A. Vanik (3) and Mary Rose Oakar (4), all Democrats of Ohio, 

presented personal testimony at the hearing. Pete Crookall, of the United Auto 

Workers, and John Oshinski 
5 

(5), of the United Steelworkers of America, offered the viewpoint of U.S. labor. 

Commission Vice Chairman Bill Alberger, center, and Commissioners George 

M. Moore and Catherine Bedell (6) Hstened to witnesses and studied documents during the hearing. All interested parties had an opportunity to be heard, 

including lawyers and officials OfU.S. and foreign firms and trade associations. 

Sugar 

Public hearings on an investigation regarding cane and beet sugars, sirups, 

and molasses were held in New Orleans (7) on January 4, in Minneapolis on 

January 17, and in Washington on February 27 and 28, 1978. Seven members 

of Congress from North Dakota, Louisiana, and Minnesota presented personal 

statements to the Commission in the course of the hearings. 

6 

31 
8 

Generatized System of Preferences 

Plant manager NichOfas J. Sten of System Design (8) was a witness at the 

January 12, 1978, Los Angeles hearing on the President's list of articles whiCh 

may be designated as etigible articles for purposes of the Generalized Sy$tem 

of Preferences. Ruth Miller, of the Amalgamated Clothing & Textile Workers 

Union, and Max Wolf, representing the International Ladies Garment Workers' 

Union, also gave testimony. Another witness, at the hearing in Chicago on 

November 12, 1977, was John Shoemaker (9), of the National Woodwqrk 

Manufacturers Association. 

Connecticut Governor Ella T. Grasso (1 O) gave her State's viewpoint at the 

Commission's stainless steel flatware hearing held in Washington on February 

21 and 22, 1978. 

High-carbon f~ 

Pittsburgh, Pa., was the site of the Commission's October 11 and 12, 1977, 

hearing on high-carbon ferrochromium (11). 

Clothespins 

Market disruption in the domestic clothespin industry caused by imports 

from the People's Repub~c of China, Poland, and Romania was the subject of 

a hearing in Portland, Maine, on June 22, 1978, where Senator William 0. 

Hathaway (12), 0.-Maine, gave testimony to Commission Chairman Joseph 0. 

Parker. 

Copper 

Seeking import relief for the State's copper industry, Arizona Governor Raul 

Castro (13) and Tucson Mayor Lew Murphy (14) headed a 30-member delegation that conferred with Commission officials in Washington on October 3, 

1977. 

32 
14 

33 
34 

Western steel 

President Henry Ruyes of the Pueblo, Colo., City Council (15) expressed the 

concerns of his community during the Commission's November 7, 1977, 

hearing in Denver on conditions OI competition in the Western U.S. steel 

market between domestic and foreign steel products. E. N. Coleman (16) 

represented the International Association of Bridge, Structural and Ornamental Iron Workers at the Portland, Oreg., hearing on January 24, 1978. Hearings 

were also held in Los Angeles (17) and San Francisco. 
CB radios 

The hearing room in the U.S. International Trade Commission building (18) 

in Washington, D.C .. is the location ol most of the Commission's public hearings. 

35 
20 

36 
22 

Testifying during the hearing on November 1, 1977, in connection with the 

investigation on CB radios were Senator Carl T. Curtiss, R.-Nebr. (19), and 

Representative Charles Thone, R.-Nebr. (20). Mrs. Darlene Schellsmidt, of 

Clear Lake, Iowa, accompanied Representative Charles E. Grassley, R.-lowa 

(2i), and Mrs. Phyliss Johnson, of New Richland, Minn., appeared with Representative Tom Hagedorn, R.-Minn. (22), to give the Commission firsthand 

accounts of their personal experiences in a domestic industry affected by 

imports. 

37 
UNITED STATES INTERNATIONAL TRADE COMMISSION 

COMMISSION 

I 

I I I I --· I -, 

Office Office of Senior Advisor Office Office 

of the Executive Liaison Office of of of 

General and Special Advisor the Secretary to the Congressional Administrative 

Counsel for Trade Agreements Commission Liaison Law Judge 

Office of New York Operations 

Administration Field Office - Office of the Director 

Office of Office of the Investigative 

Legal Services - Deputy Director .______ Staff 

I I I I I I I 

Office of 

Finance Office of Office of Office of Nomenclature, 

and Personnel Services Production Industries Economic Data Valuation, 

Budget Research Systems and Related 

Activities 

38 
ORGANIZATION OF THE COMMISSION 

On September 30, 1978, the U.S. International Trade Commission 

was composed of 6 Commissioners and 369 staff members. 1 The chart 

on page 38 depicts the Commission's organization at the end of fiscal 

1978. 

The Secretary serves the Commission in the conduct of its business 

and is an official point of contact, in general, with other Government 

agencies and the public. The Director, Office of Executive Liaison and 

Special Advisor for Trade Agreements, acts as the Commission's liaison 

with the President's Special Representative for Trade Negotiations and 

advises the Commission on trade agreements. The General Counsel is 

the Commission's chief legal officer. The Senior Advisor advises the 

Commission on a broad range of issues affecting all phases of Commission activity. The Chief Administrative Law Judge presides over section 

337 case hearings. The Director, Office of Congressional Liaison, acts 

as the principal Commission contact with the Senate and the House of 

Representatives. The Director of Operations is in charge of carrying out 

the Commission's substantive day-to-day activities, including investigative duties. The Director of Administration is responsible for support, 

including personnel, finance, services, and production. 

Membership of the Commission 

As provided in the Tariff Act of 1930, as amended, the six Commissioners of the U.S. International Trade Commission are Presidential 

appointees who are confirmed by the Senate. Their terms are 9 years in 

length, unless a Commissioner is appointed to fill an unexpired term, 

and they are not eligible for reappointment if they serve for more than 5 

years. By provision of Public Law 95-106 the President is authorized to 

designate the Chairman and Vice Chairman for 2-year terms. The 

Chairman and Vice Chairman may not be of the same political party, nor 

may the President appoint two Commissioners of the same political 

party for two consecutive 2-year terms as Chairman. Not more than 

three Commissioners may belong to the same political party. During 

most of fiscal 1978 Daniel Minchew served as Chairman, and Joseph 0. 

Parker served as Vice Chairman. Commissioner George M. Moore was 

acting Chairman of the Commission from June 17, 1978, to June 19, 

1978.2 On June 19, 1978, the President designated Commissioner 

Parker as Chairman and Commissioner Bill Alberger as Vice Chairman. 

The following Commissioners served during fiscal year 1978: 

Commissioner Daniel Minchew, Democrat of Georgia. Mr. Minchew's term expired June 16, 1978.3 

Commissioner Joseph 0. Parker, Chairman, Republican of Virginia. 

Mr. Parker's term expires December 16, 1979. 

1 Temporary employees not included. 

2 19 U.S.C. 1330(c)(4) states in part, "During any period in which there is no chairman or vice 

chairman, the commissioner having the longest period of continuous service as a commissioner shall 

act as chairman." 

· 3 Pursuant to sec. 1801 (a)(2) of Public Law 94-455, Commissioner Minchew remained a member of 

the Commission until the effective date of his resignation, Sept. 30, 1978. 

39 
Executive Staff of the Commission at the close of fiscal year 1978 

General Counsel . 

Director, Office of Executive Liaison and Special 

Advisor for Trade Agreements .............. . 

Senior Advisor to the Commission ................... . 

Secretary to the Commission ............................... . 

Director, Office of Congressional Liaison . . . ...... . 

Chief Administrative Law Judge, . . . . . . . . . . . . . ......... . 

Director, Office of Administration . . ....... . 

Michael H. Stein. 

William T. Hart. 

Russell N. Shewmaker. 

Kenneth R. Mason. 

George L. Hooper. 

Donald K. Duvall. 

Charles R. Ramsdale. 

Chief, Finance and Budget Division. . . . . . . . . . . Edward C. Wallington, Jr. 

Director of Personnel.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Terry P. McGowan. 

Chief, Services Division . . . . . . . . . . . . . . . .. Ronald P. Fox, Acting. 

Chief, Production Division . . . . Kenneth Will, Jr. 

Director of Operations . . . . . . . . . . . . . . . . . . . Joseph F. Dennin. 

Deputy Director of Operations (Investigations) Robert A. Cornell. 

Director, New York Field Office.. . . . . . . Walter S. Trezevant. 

Director, Office of Legal Services........ . ... Harold Brandt. 

Director, Office of Consumer and External Affairs .... (Vacancy). 

Director of Industries.... . .................. Norris A. Lynch. 

Chiefs of Divisions: 

Agriculture, Fisheries, and Forest Products . . . . . . . Edward P. Furlow. 

Minerals and Metals . . . . . . . . . . . . . . . . . . . . . . . . William E. Wright. 

Energy and Chemicals . . . . . . . . . . . . . . ............. Aimison Jonnard. 

Textiles, Leather Products, and Apparel... Reuben I. Schwartz. 

Machinery and Equipment .................. . 

General Manufactures . . . . . . . . . . . . . . . . ...... . 

Director, Office of Economic Research .. 

Director, Office of Data Systems ...... . 

Director, Office of Nomenclature, Valuation, and 

. .. Charles W. Daiker. 

Selma L. Coble. 

George N. Ecklund. 

Martin Hershkowitz. 

Related Activities .................................. . Eugene A. Rosengarden. 

Public Information Officer ....... . Harold W. Sundstrom. 

Commissioner George M. Moore, Republican 

of Maryland. Mr. Moore's term expires December 16, 1982. 

Commissioner Bill A/berger, Vice Chairman, 

Democrat of Oregon. Mr. Alberger's term expires 

December 16, 1985. 

Commissioner Catherine Bedell, Republican 

of Washington. Mrs. Bedell's term expires June 

16, 1984. 

Commissioner ltalo H. Ablondi, Democrat of 

New York. Mr. Ablondi's term expires June 16, 

1981.4 

'Comm1ss1oner Ablond1 resigned effective Oct. 10. 1978 

40 

Sources of Information 

Inquiries should be directed to the specific 

organizational unit or to the Secretary, U.S. International Trade Commission, 701 E Street NW., 

Washington, D.C. 20436. Phone 202-523-0161. 

Publications may be ordered 24 hours a day, 7 

days a week, by calling 202-523-5178. 
Facilities for research by the public are located 

in the Office of the Secretary, in the Commission 

Library, and in the New York City field office. 

In addition to its statutory obligations to conduct public investigations, the Commission assists the legislative and executive branches of 

Government and answers many inquiries from the 

news media and the public. As the international 

economic research arm of the Government, it 

maintains a 72,000-volume library, which subscribes to about 1,200 periodicals. This facility 

houses not only publicatio'ns on international 

trade and U.S. tariff and commercial policy, but 

also many business and technical journals. In 

addition, the Commission's Office of the General 

Counsel maintains a law library and a 

comprehensive file of documents on legislation 

affecting U.S. trade. 

EMPLOYMENT AND APPROPRIATIONS 

The Commission staff represents a unique 

blend of professional investigators, attorneys, 

economists, and commodity analysts, including 

nationally and internationally recognized experts 

in their fields. In fiscal year 1978, average 

employment-in terms of work-years-was 392, 2 

percent above that of fiscal year 1977. The following tabulation shows the number of permanent 

full-time officers and employees of the Commission by organizational units at the close of fiscal 

year 1978: 

Position or activity 

Production Division 

Sept. 30, 

1978 

6 

19 

9 

8 

20 

2 

2 

5 

4 

9 

11 

7 

16 

Position or activity-Con 

Investigative Staff 

Office of Legal Services 

Office of Industries 

Office of Econom1c Research 

Office of Data Systems 

Office of Nomenclature, Valuation. and Related Activities 

Total 

Sept. 30 

1978 

27 

16 

123 

28 

31 

15 

369 

The U.S. International Trade Commission submits its budget to the President for transmittal to 

the Congress. 5 During fiscal year 1978, appropriated funds made available to the Comr11ission 

amounted to $12,213,000. Reimbursements received totaled $59,335, making available a grand 

total of $12,272,335. Obligations for fiscal years 

1978 and 1977 were as follows: 

Item 

Salaries and personnel benefits 

Travel and transportation 

Rentals and commun1cat1ons services 

Other services 

Printing and reproduction 

Equipment, supplies, and materials 

Fiscal year 

1978 

$9.487.919 

266.647 

1.027,995 

611.237 

195.666 

406, 192 

Fiscal year 

1977 

$8.449, 104 

234.043 

1.045.745 

753.799 

88.479 

400.579 

A majority of the Commission's employees are 

housed in the U.S. International Trade Commission Building, at 701 E Street NW. 6 Owing to 

space limitations, 59 employees in the Office of 

the Administrative Law Judge, the Office of Economic Research, and the Office of Data Systems 

are located in the Bicentennial Building, at 600 E 

Street NW. 

5 Because of the unique role of the Commission as a quas1-1udic1al 

and independent agency designed to provide trade expertise to both 

leg1slat1ve and executive branches of Government. Congress provided that the budget of the International Trade Commission would not 

be sub1ect to control by the Office of Management and Budget. but 

would instead be submitted directly to the Congress 

6 The building was built from 1839 to 1869 under the superv1s1on of 

Thomas U. Walter. one of the architects of the Capitol. The Commission took up quarters 1n the building 1n 1921 after such occupants as 

the Postmaster General. the General Land Office. the Bureau of Education. the National Selective Draft Board. and General John J Pershing 

41 

SUMMARY OF PRINCIPAL ACTIVITIES OF THE 

U.S. INTERNATIONAL TRADE COMMISSION, 

FISCAL YEARS 1975-78 

100 

11175 11177 

----- Ex.ecutive direction and administration. 

Basic research; trade agreements activities. 

reports on production and imports of chemical products; summaries of trade and tariff 

----- information; tariff classification and enumera1978 

tion; section 22 of the Agricultural Adjustment 

Act. 

Furnishing information and technical assistanca to the Congress, other agencies, and 

the pubic. 

Investigating unfair import practices under 

sections 303 and 337 of the Ta riff Act of 1930; 

section 603 of the Trade Act of 1974; and 

miscellaneous studies. 

Investigations under the Antidumping Act, 

192f, as amended. 

Investigations under section 332 of the Tariff 

Act of 1930; special studies. 

Investigations under sections 201 and 406 of 

the Trade Act of 1974. 

Investigation on the probabie economic effects of granting concessions during multilateral trade negotiations or granting duty-free 

treatment through implementation of the 

Generalized System of Preferences. 

43 

REPORTS SUBMITTED ON PROPOSED LEGISLATION 

1. Report on H.R. 5044 (Mr. Bauman)-To suspend until January 3, 1980, a portion of 

the duties on strontium nitrate. August 2, 1978. 

2. Report on H.R. 5265 (Mr. Rostenkowski)-To provide for the temporary suspension 

of duty on the importation of fluorspar. August 11, 1978. 

3. Report on H.R. 5551 (Mr. Flowers)-To suspend until the close of June 30, 1980, the 

duty on 2-methyl, 4-chlorophenol. August 1, 1978. 

4. Reports on H.R. 7108 (Mr. Edgar)-To amend the Tariff Schedules of the United 

States in order to suspend the duty on Yankee Dryer Cylinder Rolls until the close of 

December 31, 1977. April 4, 1978 (Ways and Means Committee), and July 28, 1978 

(Finance Committee). 

5. Report on H.R. 8149 (Mr. Jones-Okla.)-To provide customs procedural reform, 

and for other purposes. January 11, 1978. 

6. Report on H.R. 8222 (Mr. de Lugo)-To apply duty-free treatment under certain 

circumstances to articles produced in the insular possessions of the United States, 

and for other purposes. September 6, 1978. 

7. Report on H.R. 8630 (Mr. Ruppe)-To increase the tariff on imported copper and to 

exclude copper imports from the Generalized System of Preferences created by the 

Trade Act of 1974. January 24, 1978. 

8. Report on H.R. 8814 (Mr. AuCoin)-To reduce until June 30, 1980, the column 2 

rates of duty on woven fabrics of silk. May 16, 1978. 

9. Report on H.R. 9422 (Mr. Baucus)-To amend the provisions of Public Law 88-482 

relating to imposition of quotas on certain meat and meat products. January 20, 

1978. 

10. Reports on H.R. 9628 (Mr. Preyer)-To suspend until the close of June 30, 1980, the 

duty on certain nitrocellulose. January 10, 1978 (Ways and Means Committee), and 

August 11, 1978 (Finance Committee). 

11. Report on H.R. 9650 (Mr. Waggonner)-To suspend until the close of December31, 

1978, the duty on 1,3,5-Trimethyl-2,4,6-tris[3,5-di-tert-butyl-4-hydroxybenzyl) benzene. November 16, 1977. 

12. Report on H.R. 9695 (Mr. Udall)-To increase the duty on imported copper by an 

amount which offsets the cost incurred by copper producers in the United States in 

meeting domestic environmental requirements. February 24, 1978. 

13. Reports on H.R. 9911 (Mr. Duncan-Tenn.)-To continue until the close of June 30, 

1981, the existing suspension of duties on certain forms of zinc. March 14, 1978 

(Ways and Means Committee), and August 2, 1978 (Finance Committee). 

14. Reports on H.R. 10161 (Mr. St Germain)-For the relief of Eastern Telephone Supply 

and Manufacturing, Incorporated. January 24, 1978 (Ways and Means Committee), 

and August 8, 1978 (Finance Committee). 

15. Report on H.R. 10224 (Mr. Maguire)-To provide for the temporary suspension of 

the rate of duty on 2-methyl 5-ethyl pyridine, and for other purposes. March 30, 

1978. 

16. Reports on H.R. 10625 (Mr. Burleson-Tex.)-To suspend the duty on natural 

graphite until the close of June 30, 1981. March 22, 1978 (Ways and Means 

Committee), and August 4, 1978 (Finance Committee). 

17. Report on H.R. 10635 (Mr. Kemp)-To amend the Tariff Schedules of the United 

States to provide duty-free treatment for horses. March 29, 1978. 

18. Report on H.R. 10853 (Mr. Holland)-To amend the Trade Act of 1974. April 28, 

1978. 

19. Report on H.R. 11021 (Mr. Kemp)-To provide for the duty-free entry of live worms, if 

a product of Canada. March 30, 1978. 

20. Reports on H.R. 11409 (Mr. Burke-Mass.)-To extend indefinitely the period 

during which certain dyeing and tanning materials may be imported free of duty. 

May 10, 1978 (Ways and Means Committee), and August 4, 1978 (Finance Committee). 

21. Report on H. R. 11688 (Mr. Vanik)-To amend the Tariff Schedules of the United 

States in order to provide for the duty-free entry of dogs and cats, regardless of the 

purposes for which the animals are imported. May 16, 1978. 

45 
22. Reports on H.R. 12165(Mr. VanderJagt)-To extend until 

the close of June 30, 1981, the existing suspension of 

duties on certain metal waste and scrap, unwrought 

metal, and other articles of metal. June 12, 1978 (Ways 

and Means Committee), and August 8, 1978 (Finance 

Committee). 

23. Report on H.R. 12198 (Mr. Cederberg)-To amend the 

Tariff Schedules of the United States to provide a temporary suspension of the duty on polystyrene foam. May 24, 

1978. 

24. Report on H. R. 12216 (Mr. Hamilton)-Forthe relief of the 

Foundry United Methodist Church. May 24, 1978. 

25. Report on H.R. 12544 (Mr. Frenzel)-To amend the tariff 

schedules to provide for mixed animal feeds containing 

soybeans. July 26, 1978. 

26. Report on H.R. 12739 (Mr. Kemp)-To suspend the duty 

on live worms until the close of June 30, 1981. August 8, 

1978. 

27. Report on H.R. 12882 (Mr. Ruppe)-To amend the Tariff 

Schedules of the United States to provide duty-free treatment for certain gloves and trousers which incorporate 

protective features designed specifically for use in forestry. July 21, 1978. 

28. Report on H.R. 13412 (Mr. McFall)--To amend the Tariff 

Schedules of the United States with respect to the rates of 

duty for montan wax. August 31, 1978. 

29. Report on H.R. 13490 (Mr. Neal)-For the relief of Wake 

Forest University, Winston-Salem, North Carolina. August 

28, 1978. 

30. Report on H.R. 13657 (Mr. Waggonner)-To suspend the 

duty on mixtures of mashed or macerated hot red peppers and salt until the close of June 30, 1981. August 22, 

1978. 

31. Report on H.R. 13672 (Mr. Steiger)-To suspend the duty 

on freight cars until the close of June 30, 1980. August 17, 

1978. 

32. Report on H.R. 13910 (Mr. AuCoin)-To amend the Tariff 

Schedules of the United States to provide a temporary 

suspension of the duty on certain freight car parts. September 19, 1978. 

46 

33. Report on S. 2414 (Mr. Weicker)-To amend the Tariff 

Schedules of the United States in order in prohibit the 

importation of coffee which is the product of Uganda. 

March 30, 1978. 

34. Report on S. 2643 (Mr. Curtis)-To amend the Tariff 

Schedules of the United States to provide that certain 

wood strips be admitted free of duty. July 20, 1978. 

35. Report on S. 2713 (Mr. Hathaway)-To suspend for eighteen months the duty on imported insulation. April 17, 

1978. 

36. Report on S. 2847 (Mr. Johnston)-To modify the Tariff 

Schedules with regard to certain articles used in carnivals 

and parades. August 10, 1978. 

37. Report on S. 2985 (Mr. Hathaway)-To amend the Tariff 

Schedules of the United States to provide for an increase 

in the duties on imports of potatoes, and to reduce the 

quota for potatoes subject to the lower of the two rates of 

duty. August 18, 1978. 

38. Report on S. 3171 (Mr. Griffin)-To amend the Tariff 

Schedules of the United States to provide duty-free treatment for certain gloves and trousers which incorporate 

protective features designed specfically for use in forestry. July 20, 1978. 

39. Report on S. 3246 (Mr. Talmadge)-To amend the Tariff 

Act of 1930 to provide that, for purposes of determining 

the duty payable with respect to imported merchandise, 

the value of imported merchandise includes any export 

quota premium. August 11, 1978. 

40. Report on S. 3326 (Mr. Bentsen )-To suspend the duty on 

freight cars until the close of June 30, 1982. August 17, 

1978. 

41. Report on S. 3329 (Mr. Long)-To suspend the duty on 

mixtures of mashed or macerated hot red peppers and 

salt until the close of June 30, 1981. August 22, 1978. 

42. Report on S. Res. 477 (Mr. Culver)-Expressing the disapproval of the Senate of the President's announcement 

of his intention to suspend the quota on meat imports and 

to permit additional meat imports. August 4, 1978. 
KEY STATUTES INVOLVING THE 

U.S. INTERNATIONAL TRADE COMMISSION 

Sec. 201, Trade Act of 1974 (Escape-Clause Investigations), 

Import Relief for Domestic Industries 

When: The Commission conducts investigations upon its own motion or upon petition on behalf of a firm, a group of workers, or other entity 

representative of an industry to determine whether an article is beirig 

imported in such increased quantities as to be a substantial cause of 

serious injury, or the threat thereof, to the domestic industry producing 

an article like or directly competitive with the imported article. 

Duration: The investigation must be completed not later than 6 

months after being instituted. 

Finding: If the Commission's finding is affirmative it must recommend 

a remedy to the President, who has discretion to take action to provide 

import relief, such as an increase in duties, the establishment of quantitative restrictions, the negotiation of orderly marketing agreements, or 

specified types of adjustment assistance to groups of workers, firms, or 

communities. 

Followup: The Commission reports with respect to developments 

within an industry that has been granted import relief and advises the 

President of the probable economic effect of the reduction or the 

elimination of the tariff increase that has been granted. 

Sec. 337, Tariff Act of 1930 

(Investigations of Unfair Practices in Import Trade) 

When: The Commission, after receipt of a complaint under oath from 

an interested party or upon its own motion, conducts investigations to 

determine whether unfair methods of competition or unfair acts are 

occurring in the importation of articles into the United States or in their 

sale. 

Duration: The investigation must be completed in no more than 1 

year, or 18 months in a more complicated case, after the date of 

publication of notice of investigation in the Federal Register. 

Finding: If the Commission determines that the importation of such 

articles is such that the effect or tendency is to destroy or substantially 

injure an efficiently and economically operated industry, or to prevent 

the establishment of such an industry, or to restrain or monopolize trade 

and commerce, it may issue orders excluding the articles from entry or 

issue cease and desist orders. The President may disapprove these 

actions within 60 days after issuance of the Commission's determination. 

Sec. 201(a), Antidumping Act, 1921 (Antidumping 

Investigations), Imports Marketed at Less Than Fair Value 

When: The Commission, after a finding by the Secretary of the 

Treasury that sales of imported articles are at less than fair value, 

conducts investigations to determine whether an industry in the United 

States is being or is likely to be injured, or is prevented from being 

established, as a result of such sales. 

47 
Duration: The investigation must be completed within 3 months of the receipt of advice 

from the Department of the Treasury. 

Finding: If the Commission's determination is 

affirmative, the Secretary of the Treasury imposes 

a dumping duty on imports of the articles in question. 

Sec. 332, Tariff Act of 1930 (General-Purpose 

Investigations) 

When: Upon official request or upon its own 

motion, the Commission initiates a factfinding investigation on any matter involving tariffs and 

international trade. This broad provision allows 

the Commission to investigate trade matters of 

immediate concern to the Government and the 

public. 

Duration: Unless otherwise directed, the 

Commission establishes an administrative deadline. 

Finding: Unless the President or the Congress 

directs otherwise, the Commission's reports are 

made available to all interested parties, the general public, the President and executive departments, and the Congress. 

Sec. 22, Agricultural Adjustment Act, Import 

Interference With Agricultural Programs 

The Commission conducts investigations at the 

direction of the President to determine whether 

any articles are being or are practically certain to 

be imported into the United States under such 

conditions and in such quantities as to materially 

interfere with programs of the Department of Agriculture for agricultural commodities or products 

thereof, or to reduce substantially the amount of 

any product processed in the United States from 

such commodities or products, and makes findings and recommendations to the President. The 

President may restrict the imports in question by 

imposition of either import fees or quotas. 

OTHER AREAS OF INVOLVEMENT BY 

STATUTE 

Bestowal of Bounties or Grants on Imports 

The Commission determines, with respect to 

any duty-free article on which the Secretary of the 

Treasury has determined that a bounty or grant is 

48 

being paid, whether an industry in the United 

States is being or is likely to be injured, or is 

prevented from being established, by reason of 

the importation of such article. (Sec. 303, Tariff 

Act of 1930; 46 Stat. 687.) 

Uniform Statistical Data 

The Commission, in cooperation with the Secretary of the Treasury and the Secretary of Commerce, establishes for statistical purposes an 

enumeration of articles imported into the United 

States and exported from the United States, and 

seeks to establish comparability of such statistics 

with statistical programs for domestic production 

and programs for achieving international harmonization of trade statistics. 

Harmonized Commodity Code 

The Commission participates in the U.S. contribution to the technical work of the Harmonized 

System Committee under the Customs Cooperation Council to assure the recognition of the 

needs of the U.S. business community in the 

development of a Harmonized Code reflecting 

sound principles of commodity indentification 

and specification and modern producing 

methods and trading practices. (Sec. 608(c)(2) of 

the Trade Act of 1974; 19 U.S.C. 1484.) 

Tariff Schedules of the United States 

Annotated 

The Commission issues a publication containing U.S. tariff schedules and related material and 

considers questions concerning the arrangement 

of such schedules and the classification of articles. (Sec. 201, Tariff Classification Act of 1962, 

76 Stat. 74; secs. 332(a) and 484(e), Tariff Act of 

1930, 19 U.S.C. 1332(a) and 19 U.S.C. 1484(e).) 

Tariff Summaries 

The Commission prepares and publishes, from 

time to time, a series of summaries of trade and 

tariff information. These summaries contain descriptions (in terms of the Tariff Schedules of the 

United States) of the thousands of products imported into the United States, methods of production, and the extent and relative importance of 

U.S. consumption, production, and trade, to-
gether with certain basic factors affecting the 

competitive position and economic health of 

domestic industries. (Sec. 332, Tariff Act of 1930; 

19 U.S.C. 1332.) 

Advice Concerning Trade Negotiations 

The Commission advises the President as to 

the probable economic effect on domestic industries and consumers of modification of duties and 

other barriers to trade which may be considered 

for inclusion in any proposed trade agreement 

with foreign countries. (Sec. 131, Trade Act of 

1974; 19 U.S.C. 2151.) 

Generalized System of Preferences 

With respect to articles which may be considered for duty-free treatment when imported 

from designated developing countries, the Commission advises the President as to the probable 

economic effect of the removal of duty on the 

domestic industry and on consumers. (Secs. 131 

and 503, Trade Act of 1974; 19 U.S.C. 2151, 

2163.) 

East-West Trade Monitoring System 

The Commission monitors imports into the 

United States from non market economy countries 

and makes a report not less frequently than once 

each calendar quarter on the effect of such imports on the production of like or directly competitive articles in the United States and on employment within the industry. (Sec. 410, Trade Act of 

1974; 19 U.S.C. 2440.) 

Trade With Communist Countries 

The Commission makes investigations to determine whether increased imports of an article 

produced in a Communist country are causing 

market disruption in the United States. If the 

Commission's determination is in the affirmative, 

the President may take the same action as in a 

case involving injury to an industry, except that 

the action would apply only to imports of the 

article from the Communist country. (Sec. 406, 

Trade Act of 1974; 19 U.S.C. 2436.) 

U.S. GOVERNMENT PRINTING OFFICE: 1979 0-297-185 

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USITC PUBLICATION .982