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PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED OR MODIFIED AS ELIGIBLE ARTICLES FOR PURPOSES OF THE U.S. GENERALIZED SYSTEM OF PREFERENCES Report to the President on Investigation Nos. TA-503(a)- 11 and 332-166 USITC PUBLICATION 1526 MAY 1984 United States International Trade Commission / Washington, D.C. 20436
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PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 1: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED OR MODIFIED AS ELIGIBLE ARTICLES FOR PURPOSES OF THE U.S. GENERALIZED SYSTEM OF PREFERENCES

Report to the President on Investigation Nos. TA-503(a)-11 and 332-166

USITC PUBLICATION 1526

MAY 1984

United States International Trade Commission / Washington, D.C. 20436

Page 2: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

UNITED STATES INTERNATIONAL TRADE COMMISSION

COMMISSIONERS

Alfred E. Eckes, Chairman

Paula Stern

Veronica A. Haggart

Seeley G. Lodwick

Susan W. Liebeler

David B. Rohr

Kenneth R. Mason, Secretary to the Commission

Prepared by the Office of Industries

Norris A. Lynch, Director

Address all communications to

Office of the Secretary

United States International Trade Commission

Washington, D.C. 20436

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CONTENTS

Page

Introduction------------------------------------------------------------- 1 Presentation of probable effects advice:

Commodity digests 3 TSUS items covered in prior investigations 4

Digest locator 5 Appendix A. U.S. Trade Representative request of July 21, 1983, for

probable economic effect advice A-1 Appendix B. U.S. International Trade Commission notice of investi-

gation and hearing--- B-1 Appendix C. List of witnesses appearing at the Commission hearing C-1

Note.--The whole of the Commission's report to the President in November 1983 may not be made public since it contains certain information that has been classified by the United States Trade Representative or would result in the disclosure of the operations of individual concerns. This published report is the same as the report to the President, except that the above-mentioned infor-mation has been omitted. Such omissions are indicated by asterisks.

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Page 5: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

INTRODUCTION

On July 21, 1983, in accordance with sections 503(a) and 131(a) of the

Trade Act of 1974 and pursuant to the authority of the President delegated to

the U.S. Trade Representative (USTR) by Executive Order 11846, as amended by

Executive Order 11947, the USTR requested advice in four areas related to the

GSP: (1) the addition of certain articles to the list of GSP eligible

articles, (2) the removal of certain articles from the GSP list, (3) the

removal of duty-free status under the GSP for certain beneficiary developing

countries for certain articles ("graduation"), and (4) a determination of

whether or not certain articles are like or directly competitive with any

article produced in the United States on January 3, 1975, for purposes of

section 504(d) of the Act. 1/

For each article being considered for addition to the list of eligible

articles, the Commission is advising the USTR as to the probable economic

effect of the addition on U.S. industries producing like or directly

competitive articles and on consumers. For each article being considered for

removal or graduation, the Commission is advising the USTR as to the impact on

U.S. industries producing like or directly competitive articles and on

consumers of continued GSP status for the articles and countries in question.

The USTR requested the Commission, in providing its advice, to assume

that benefits of the GSP would not apply to imports that would be excluded

from receiving such benefits by virtue of the "competitive need" limitations

specified in section 504(c) of the Act.

Section 504(d) of the Act exempts from one of the competitive-need limits

in section 504(c) articles for which no like or directly competitive article

1/ The USTR request, including four listings of concerned articles, is contained in appendix A.

Page 6: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

-2-

was being produced in the United States on the date of enactment of the La.

Accordingly, pursuant to the authority of section 332(g) of the Tariff Act of

1930, the USTR requested that the Commission also provide advice with respect

to whether products like or directly competitive with any articles contained

in Part A of the USTR request were being produced in the United States on

January 3, 1975.

In response to the USTR request, the Commission on August 5, 1983,

instituted investigation. Nos. TA-503(a)-11 and 332-166 for the purpose of

obtaining, to the extent practicable, information for use in connection with

the preparation of advice requested by the USTR. The Commission notice of

investigation and hearing is contained in appendix B. 1/

A public hearing in connection with the investigation was held in the

Commission hearing room, 701 E Street NW., Washington, D.C. 20436, on

September 27 and 29, 1983. All interested parties were afforded an

opportunity to appear by counsel or in person, to produce evidence, and to be

heard. Transcripts of the hearing and copies of briefs submitted by

interested parties in connection with the investigation are attached. 2/

1/ The following Federal Register notices have been issued related to Investigation Nos. TA-503(a)-11 and 332-166:

Date ' Agency Notice Subject

July 21, 1983 USTR 48 F.R. 33400 Initial notice. Aug. 12, 1983 ITC 48 F.R. 36675 Initial notice of ITC

investigation and hearing.

2/ A list of witnesses appearing at the Commission hearing is contained in app. C.

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-3--

PRESENTATION OF PROBABLE EFFECTS ADVICE

Commodity digests

In response to the USTR request for probable effects advice, the

Commission determined that an appropriate format for such an analysis would be

commodity digests, each digest dealing with the effects of tariff .

modifications on a specific commodity area.

For each of the commodity areas being analyzed, the digests provide an

analysis of the impact of the possible tariff modifications on U.S. import

levels, industry and the consumer. Within each digest the probable effects

advice is provided in both a textual and code format. The probable effects

code provides the reader with a quick summary of the probable effects on

import levels, industry, and the consumer as follows:

1. Level of U.S. imports Code A: nil or negligible increase (0-5 percent) Code B: modest increase (6-15 percent) Code C: significant increase (16-25 percent) Code D: substantial increase (over 25 percent)

2. U.S. industry Code A: nil or negligible adverse impact Code B: significant adverse impact (significant proportion of

workers unemployed; declines in output; firms depart, but adverse impact not industry-wide)

Code C: substantial adverse impact (substantial unemployment; widespread idling of productive facilities; adverse impact on the industry as a whole)

3. U.S. consumer Code A: Duty savings are expected to be absorbed by the foreign

supplier and/or importer and will not likely benefit the industrial/intermediate consumer or the consuming public.

Code B: Duty savings will likely benefit the industrial/inter-mediate consumer, but the consuming public is not expected to benefit from the duty savings (which are expected to be absorbed in the trade).

Code C: Duty savings will likely benefit both the industrial/ intermediate consumer and the consuming public (which are expected to benefit by lower prices, slower rises in prices , and/or greater availability of the ultimate products).

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-4-

TSUS items covered in prior investigations

GSP probable economic effect advice was provided in Investigation no.

TA-503(a)-7 for the items listed below. This volume contains updated data and

probable effect statements for these articles.

161.60 685.1915 (Advice previously given at 5-digit level)

Page 9: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

DIGEST LOCATOR

Digest numbers, titles, and the contents of each digest by TSUS item are

provided below.

A. Articles being considered for designation as eligible articles for the GSP

Digest number

Commodity/TSUS item

A101 Alfalfa seeds 126.01

A102 Certain prepared or preserved strawberries 146.85

A103 Mustard, other than ground (prepared) 161.60

A401 p-Toluenesulfonyl choride 403.05

A402 Benzoic acid 404.04

A403 Rubber processing chemicals 406.16 406.40(pt.)

• A404 Other cyclic intermediate chemicals 403.16(pt.) 405.09 (pt.) 406.48(pt.)

A405 Meclizine hydrochloride 411.56(pt.)

A406 Acetyl sulfisoxazole; and sulfamerazine, sodium 411.83(pt.)

A407 Chlorpropamide and chlorothiazide 412.69(pt.)

A501 Certain colored sheet glass 542.57 542.67 542.71 542.73 542.75 542.77 542.92 542.94 542.96 542.98

A502 Certain float and plate glass 543.21 543.23 543.27 543.31 543.61 543.63 543.67 543.69

A.601. Antennas 685.1915

Page 10: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest number

Commodity/TSUS item

A701 Handmade wood or clay dolls 737.24(pt.)

A702 Resin buttons and certain button blanks, molds, and parts

745.32 745.42

B. Articles being considered for removal as eligible articles for the GSP

Digest number

Commodity/TSUS item

B401 2,4-Dinitro-6-sec-butylphenol 408.22(pt.)

B402 Melamine 425.1020

B403 Citric acid 425.74

8601 Pipe & tube fittings of iron or steel

610.62 610.63 610.65 610.66 610.70 610.71

610.74 610.80

B701 Furniture of rubber and plastics, n.s.p.f.

727.50 727.8630

B703 Fishing reels valued not over $2.70 each 731.20

C. Articles being considered to remove duty-free status from a beneficiary country for a product on the list of eligible articles for the GSP

Digest number

C501

C601

C602

Commodity/TSUS item

Certain glass containers 545.21 545.25 545.27 (Mexico)

Porcelain-on-steel cooking and kitchen ware 654.02(pt.) (Taiwan)

Portable air purifiers 661.95(pt.) (Hong Kong, Taiwan)

Page 11: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest number

Commodity/TSUS item

C603 Drilling machines valued under $2,500 each 674.3227 (Taiwan)

C604 12-volt lead acid storage batteries 683.05 (Republic of Korea)

C605 Ignition wiring sets for motor vehicles 688.12 (Taiwan)

C701 Certain fixed-focus cameras

722.1205 722.1212 722.1225 (Hong Kong, Republic of Korea, Taiwan)

C702 Pianos

725.01 725.03 (Republic of Korea)

Page 12: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 13: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Description

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TITLE: Alfalfa seed

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Page 14: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. A101--Con.

II. Comments

Description and uses

The seed here considered is used in the production of one of the most

widely grown cultivated forage 1/ legumes, alfalfa. The plant is a long-lived

perennial legume 2/ which is high in digestible protein. The long tap roots

of alfalfa, which may penetrate the soil to a depth of 25 feet, improve soil

texture. Alfalfa is grown separately or with other legumes and grasses as a

pasture, hay, silage, 3/ and soil-improving crop; some is dehydrated to

produce alfalfa meal pellets. Of relatively recent origin is the use of

sprouted alfalfa seed as an ingredient in salads; the amount of seed so used

is not known, but it is small relative to that used for planting purposes.

The Federal Seed Act 7 U.S.C. 1551 51551 (1976) requires that imported

alfalfa seed for planting be stained to identify its origin. Ten percent of

the alfalfa seed in each container imported from sources other than Canada or

South America must be stained red, 10 percent of such seed from South America

must be stained orange red, and 1 percent of such seed from Canada must be

stained violet. Imported alfalfa seed must also be treated to eliminate

fungus infection.

U.S. producers

Alfalfa is grown for forage in nearly every State, but principally in the

North Central States. Alfalfa seed, however, is produced primarily in the

1/ Forage is an animal feed, generally hay or pasture. 2/ Legumes are a family of plants that, with the aid of bacteria, have the

ability to use atmospheric nitrogen for plant nutrition; examples include alfalfa, clover, peas, and beans. 3/ Silage is grasses, legumes, or grains which are preserved by their own

fermentation in a silo.

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3

Digest No. A101--Con.

Western States, where the climate is favorable for seed production and

harvesting. In recent years, California has been the leading producer,

accounting for more than 40 percent of the U.S. production. About 5,000 farms

produce alfalfa seed. U.S. producers are well-established and world-renowned

for the quality of their alfalfa seed.

Alfalfa seed production is a capital-intensive operation. The producer

often produces seeds under the regulations of the State seed-certifying agency

in order to be eligible for seed certification. 1/ The grower may produce

seed under contract for a wholesaler, he may be a member of a cooperative, or

completely independent. Most producers limit their marketing activities to

large wholesalers in their area of production. The wholesaler, in turn, may

be tied by contract, pricing, policy, custom, or ownership directly to

midwestern or eastern distributors.

U.S. consumption and production

Apparent consumption of alfalfa seed increased from 74 million pounds in

1978 to 95 million pounds in 1981 and then declined slightly to 90 million

pounds in 1982 (table A). Domestic producers supply virtually all of

consumption.

The United States is the world's leading producer of alfalfa seed.

During 1978-82, annual U.S. production of such seed increased irregularly from

92 million to 106 million pounds. In recent years, alfalfa seed has been

1/ Seed certification is the system used to keep pedigree records for crop varieties and to make available sources of genetically pure seed for general distribution.

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4

Digest No. A101--Con.

harvested from fewer acres, but with increased yields. Forage crop seed can

be stored for several years and still retain most of its viability (the

ability to take root and grow). In recent years, carryover stocks of alfalfa

seed have been equivalent to one-third to two-fifths of domestic output. Most

of the stocks are held by seed dealers.

U.S. exports

During 1978-82, annual U.S. exports of alfalfa seed ranged from

11.6 million pounds in 1978 to 20.7 million pounds in 1980 and averaged

15.7 million pounds, valued at $20.1 million (table B). Mexico, Canada, and

the Republic of South Africa were the principal markets for U.S. exports, and

together accounted for two-thirds of the 1982 total. Exports were equivalent

to about 15 percent of production during the period under review. A decline

in exports in 1982 reflects, in part, the strength of the U.S. dollar in

relation to foreign currencies, Mexico's economic situation which dampened

sales to that market, and reduced purchases by Australia due to drought

conditions in that country; also, exports to Poland ceased because of that

country's foreign exchange problems. Exports to Poland resumed during

January-June 1983 and accounted for most of the increased shipments in that

6-month period compared with those in the corresponding period in 1982.

U.S. imports

U.S. imports of alfalfa seed are small in relation to domestic production

and consumption. Canada is virtually the only foreign producer of alfalfa

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5

Digest No. A101--Con.

seed that is adapted for general agricultural use in the United States (7 CFR

201.103). During 1978-82, imports increased irregularly from 107,000 pounds,

valued at 8109,000, to 1.2 million pounds, valued at $902,000 (table C).

During January-Juno 1983, imports amounted to 1.7 million pounds, up

49 percent from those in the corresponding period of 1982. The sharp jump in

imports reflects, in part, increased demand for seed owing to a new U.S.

Department of Agriculture (USDA) program in 1983 to reduce certain crop

surpluses (payment-in-kind program). To participate in the program, the USDA

requires that growers of wheat, corn, grain sorghum, rice, and upland cotton

must keep idle a portion of their crop land, which must then be put into soil

conservation uses such as pasturage (which includes alfalfa).

Canada has been the leading supplier of alfalfa seed imports in recent

years. Imports from'GSP-eligible countries accounted for less than 1 percent

of the total during 1979-82; no, imports of alfalfa seed entered from Chile,

the petitioner for duty-free treatment (table D). Chilean alfalfa seed is

grown at various altitudes which results in seed of differing degrees of

hardiness; consequently, some of the output may be suitable for use in parts

of the United States. The sharp difference in the unit valdes of imports from

different sources and from one year to the nest reflects, in part, the

relative quantities of high-priced certified seed and low-priced uncertified

seed. Most of the imports consist of entries by U.S. seed companies to

Page 18: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. A101--Con.

supplement their domestic output or to use for experimental purposes; some

imports from Canada are border trade entries'.

Position of interested parties

The Government of Chile is the petitioner for GSP treatment of alfalfa

seed. There were no representations presented by interested parties during

the investigation.

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7

Digest No. A101--Con.

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8

Digest No. A101--Con.

Table A.--Alfalfa seed: U.S. beginning stocks, production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousands, of pounds; value in thousands of dollars; unit value per Pound)

Period

: :

Begin- . on: fling Production'

stocks •

. : .

• : :Imports: : 1/ : : :

:Ratio (per-Apparent : cent) of consump-

: tion

imports to :consumption

Quantity

: : : • 1978 : 28,268 : . 91,725 : 11,572 : 107 : 74,481 : 2/ 1979 : 34,547 : 100,235 : 17,063 : 3 : 77,556 : 2/ 1980 : 40,166 : 102,140 : 20,723 : 66 : 76,068 : 2/ 1981 : 43,581 : 114,955 : 17,097 : 426 : 94,869 : 2/ 1982 : 46,996 :3/ 106,000 : 12,254 : 1,198 : 3/ 90,000 : 1 January-June : : : : :

1982 : 46,996 : 4/ : 5,961 : 1,113 :. 4/ : 4/ 1983 : 4/ : 4/ : 7.735 : 1.663 : 4/ : 4/

Value

1978 : 4/ : 106,084 : 14,220 : 109 : - : 1979 : 4/ : 113,115 : 21,174 : 7 : - : 1980 : 4/ : 114,652 : 26,098 : 64 : - : 1981 : 4/ : 122,133 : 23,969 : 301 : - : 1982 : 4/ : 4/ : 14,914 : 902 : - : January-June : : : : : :

1982 : 4/ : 4/ : 8,259 : 879 : - : 1983 : 4/ : 4/ : 7.925 : 1.368 : - :

Unit value

1978 : - : $1.16 : $1.23 : $1.01 : • - : 1979 : - : 1.13 : 1.24 : 2.28 : - : 1980 : - : 1.12 : 1.26 : .98 : - : 1981 : - : 1.06 : 1.40 : .71 : - : 1982 : - : - : 1.22 : .75 : - : January-June : : : : . :

1982 : - : - : 1.39 : .79 : - : 1983 : - - : 1.02 : .82 : - :

1/ Canada accounted for 94 percent of the imports during 1978-82, in terms of quantity. 2/ Less than 0.5 percent. 3/ Estimated by the staff of the U.S. International Trade Commission. 4/ Not available.

Source: Production and beginning stocks, compiled from official statistics of the U.S. Department of Agriculture, except as noted; imports and exports, compiled from official statistics of the U.S. Department of Commerce.

Note.--Unit values are calculated from the unrounded figures.

Page 21: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 22: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 23: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Including

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Page 24: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 25: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 26: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. A102--Con.

II. Comments

Description and uses

The article under review is strawberries prepared or preserved in any

manner other than by being frozen, dried, or in brine, as provided for in TSUS

item 146.85, subpart B, part 9 of schedule 1. Headnote 1(e) to subpart B

excludes certain kinds of products from the definition of "prepared or

preserved;" the principal strawberry products so excluded are strawberry paste

and pulp, and strawberry jelly and jam. Products which are covered by TSUS

item 146.85 include strawberry preserves, strawberries heat-sterilized in

airtight containers of glass or metal (canned strawberries), and strawberries

aseptically packed. Strawberries which might appear fresh or chilled but are

advanced beyond their crude or natural state also would be classified under

TSUS item 146.85 1/, as would any other forms of strawberry preparation or

preservation not elsewhere provided for in the TSUS.

Strawberries are processed for many end-uses, chief among them are jams,

jellies, and preserves; desserts and dessert toppings; and flavoring for ice

cream and yogurts. For such uses most strawberries are first processed into

frozen strawberries 2/ before being reprocessed by the end-use manufacturers.

1/ A U.S. Customs Service internal advice memorandum (139/80) in September 1980 discusses certain classification issues between "fresh," which is defined in headnote 1(a) to subpart B of part 9 of Schedule 1, and "otherwise prepared or preserved."

2/ Frozen strawberries, upon a petition from Chile, were under review for GSP eligibility in 1981 and became a GSP eligible article effective March 31, 1982.

Page 27: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

3

Digest No. A102--Con.

Strawberry preserves (which comprised most of the imports under TSUS item

146.85 in recent years) are used largely as a spread in a manner similar to

jam, except that the preserves contain pieces of fruit.

Canned strawberries are used mostly in desserts by retail consumers; such

strawberries are not popular with end-use manufacturers, partly because the

cooked berries lack firmness. Aseptically-packed strawberries, a relatively

new product, are used largely in industries where sterile conditions are very

important, such as yogurt manufacturing.

U.S. customs treatment

Two customs classification decisions where articles have been found

classifiable under TSUS item 146.85 are of note for this review.

A Customs Court decision has held that strawberries processed and packed

in a manner which substantially retains the shape of the strawberry in its

natural condition is not a jam. 1/ Thus, strawberry preserves in which the

fruit remains largely whole or in visible pieces are classified for duty

purposes as otherwise prepared or preserved strawberries (currently TSUS item

146.85).

In a 1981 decision on a difference of opinion concerning strawberry

flavorbase, the U.S. Customs Service held that the inclusion of a modified

starch stabilizer and other ingredients with strawberries, so that the

viscosity was sufficient to suspend the fruit, did not remove the

classification of the flavorbase from the provision for otherwise prepared

1/ Goldfarb V. U.S., 55 Cust. Ct. 120 (1965).

Page 28: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

4

Digest No. A102--Con.

or preserved strawberries 1/. This decision, in effect, reversed an earlier

classification ruling made in 1973 (T.D. 73-262(7) 7 Cust. B & Dec. 766(1973)).

U.S. producers

Processors of strawberries are located throughout the United States.

There are an estimated 29 firms with production of $100,000 or more that

produce strawberry preserves and jams. Frozen strawberries, which are

produced by about 80 U.S. firms, are produced predominately in California.

Canned strawberries are produced probably by not more than a dozen U.S. firms,

chiefly located in the Pacific Northwest. Information on the number of

producers of aseptically-packed strawberries is not available.

U.S. consumption and production

During 1978-82, U.S. consumption and production of the type of processed

strawberries that are dutiable under TSUS item 146.85 is estimated at 40

million pounds annually (table A-1).

During 1978-82, U.S. consumption of all processed strawberries increased

irregularly from 333 million pounds in 1978 to 412 million pounds in 1982, or

by 24 percent (table A-2). Nearly all of the consumption was comprised of

frozen strawberries processed by industrial users to manufacture end-use

products. During 1978-82, U.S. production of all processed strawberries

(converted from fresh weight to an estimated product-weight basis) increased

irregularly from 236 million pounds in 1978 to 381 million pounds in 1982, or

by 61 percent.

Of the consumption of all processed strawberries, it is estimated that

perhaps one-half are consumed as preserves or jams, one-quarter in desserts or

Page 29: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

5

Digest No. A102--Con.

ice cream, from5 percent to 10 percent in yogurt, and the balance in

miscellaneous uses including a small percentage as canned strawberries.

U.S. exports

During 1978-82, U.S. exports of all processed strawberries (nearly all

frozen strawberries) are estimated to have ranged from 4 million to 10 million

pounds annually (table A-2). Exports of canned strawberries (the article

petitioned for) are believed to be negligible or nil.

U.S. imports

During 1978-82, U.S. imports of otherwise prepared or preserved

strawberries, under TSUS item 146.85, declined 38 percent from 954,000 pounds

in 1978 to 596,000 pounds in 1982, and based on January-June data for 1982 and

1983, imports are likely to decline further in 1983 (table W. Non-GSP

eligible countries were the principal suppliers in 1982. However, in recent

years when GSP eligible suppliers were in the market, such as Mexico in 1981

and Israel in 1980, they were the predominant suppliers, ' providing products of

comparable quality at unit values below the average unit value for all sources

(table C-1). For January-June 1983, GSP-eligible countries supplied 19

percent of the value of the imports.

During 1978-82, U.S. imports of otherwise prepared or preserved

strawberries under TSUS item 146.85 accounted for 1 percent of the average

annual imports of all processed strawberries. During that period, U.S.

imports of all processed strawberries declined from 106 million pounds in 1978

to 38 million pounds in 1982 (table A-2). The relative importance of the

different forms in which processed strawberries are imported is illustrated in

Page 30: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. A102--Con.

the following tabulation for the years 1978, 1980, and 1982, as compiled from

official statistics of the U.S. Department of Commerce:

(Quantity in millions of pounds)

U.S. imports Processed form of strawberries

1978 1980 1982

Frozen : 97.6 : 83.5 : 34.9 Pulp and paste : 6.5 : 4.3 : 1.4 Jams and jellies : 1.0 : 1.6 : 1.1 Otherwise prepared or preserved (item 146.85)--: 1.0 : .7 : .6

Total : 106.1 : 90.1 : 38.0

Nearly all of the U.S. imports of processed strawberries (mostly frozen

strawberries) are not covered under TSUS item 146.85 and are from suppliers

that are designated GSP beneficiary countries, mostly Mexico (tables C-2).

Imports of frozen strawberries, which are subject to a 14 percent ad valorem

rate of duty (the same rate applicable under TSUS item 146.85), became

eligible for duty-free entry under the GSP effective March 31, 1982, except

that Mexico was excluded from the benefits due to competitive need

limitations. However, Mexico was not a significant supplier of otherwise

prepared or preserved strawberries in 1982 and would not be excluded from GSP

benefits under competitive need limitations, should GSP treatment be granted

to TSUS item 146.85. U.S. imports of strawberry pulp and paste are subject to

a U.S. rate of duty of 15 percent ad valorem and are not GSP eligible;

virtually all imports are from Mexico. The rate of duty applicable to

strawberry jams and jellies is 3 percent ad valorem, and imports are eligible

for GSP treatment; in recent years nearly all imports have been from non-GSP

suppliers.

Page 31: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

7

Digest No. A102--Con.

Position of interested parties

The petitioner for granting GSP treatment to canned strawberries was

Chile.

The Processing Strawberry Advisory Board of California (PSAB) opposes

Chile's petition to add canned strawberries, TSUS item 146.85, to the list of

articles eligible for GSP treatment. They assert that the high cost of

research and development of new strawberry varieties (which are then used by

foreign producers free of such costs) and-lower foreign prices put domestic

producers and processors of strawberries at a competitive disadvantage with

foreign producers. The PSAB also asserts that lower quality of the foreign

product disadvantages domestic consumers of both domestic and foreign-

produced processed strawberries.

Page 32: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

8

Digest No. A102--Con.

Page 33: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

9

Digest No. A102--Con.

Page 34: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

10

Digest No. A102--Con.

* *

Page 35: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

11

Digest No. A102 - -Con.

IV. Statistical Data

Table A-1.--Strawberries, otherwise prepared or preserved: 1/ U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82

(Quantity in thousand of pounds; value in thousands of dollars; unit value cents per pound)

Period •

: Produc- tion 2/

: : :

Exports . •

Apparent Ratio (percent)

: Imports : of imports to

consumption : consum

ption : .

Quantity

1978 : 40,000 : 3/ : 954 : 40,954 : 2 1979 : 40,000 : 3/ : 761 : 40,761 : 2 1980 : 40,000 : 3/ : 734 : 40,734 : 2 1981 : 40,000 : 3/ : 662 : 40,662 : 2 1982 40.000 : 3/ : 596 : 40.596 : 1

Value

1978 : 4/ : 3/ : 235 : - : 1979 : 4/ : 3/ : 230 : - : 1980 : 4/ : 3/ : 380 : - : 1981 : 4/ : 3/ : 347 : - : 1982 : 4/ : 3/ : 445 : - :

Unit value

: : : • . : 1978 : 4/ : 3/ : 25 : - : 1979 : 4/ : 3/ : 30 : - : 1980 : 4/ : 3/ : 52 : - : 1981 : 4/ : 3/ : 52 : - :: 1982 : 4/ : 3/ : 75 : - :

1/ TSUS item 146.85. 2/ Estimated. Chiefly strawberry preserves. 3/ Not available but believed to be negligible. 4/ Not available.

Source: Production and exports. estimated by staff of the U.S. International Trade Commission; imports, compiled from official statistics of the U.S. Department of Commerce.

Page 36: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

12

Digest No. A102--Con.

Table A-2.--Strawberries, processed: 1/ U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82

(Quantity in thousand of pounds; value in thousands of dollars; unit value cents per pound)

Period • •

Produc- tion 2/

• Apparent :

:Exports 3/:Imports 4/ : cons

umption:

Ratio (percent) of imports to consumption

Quantity

: . . . . : 1978 : 236,000 : 9,535 : 106,063 : 332,500 : 32 ,

1979 : 263,000 : 5,159 : 120,974 : 378,800 : 32 1980 : 285,000 : 4,364 : 90,092 : 370,700 : 24 1981 : 265,000 : 6,561 : 65,744 : 324,200 : 20 1982 381.000 : 7.127 : 37.994 : 411.900 : 9

Value

1978 : 34,102 : 3,586 : 94,016 : 1979 57,745 : 2,443 : 111,450 : - : 1980 : 57,661 : 2,037 : 83,461 : - : 1981 : 57,858 : 3,957 : 58,437 : - : 1982 : 99.038 : 4.778 : 31.525 : - :

Unit value

1978 : 19 : 38 : 89 : - : 1979 : 29 : 47 : 92 : - : 1980 : 26 : 47 : 93 : - : 1981 : 28 : 60 : 89 : - : 1982 : 34 : 67 : 83 : - :

1/ Processed for all uses including frozen, canned, preserves, pulp, jelly, jam, and other uses.

2/ Fresh farm weight adjusted for estimated average weight gain (30 percent) in producing the processed products; values and unit values relate to the fresh farm weight. 3/ Frozen strawberries only. 4/ Chiefly frozen strawberries.

Source: Production, compiled from official statistics of the U.S. Department of Agriculture as noted; exports and imports, compiled from official statistics of the U.S. Department of Commerce.

Page 37: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 38: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 39: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 40: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 41: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 42: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. A103--Con.

II. Comments

Description and uses

Prepared mustard is a paste composed of a mixture of ground mustard seed

or mustard flour and sweetening agents, salt, vinegar, and other spices (often

including turmeric). Most of the mustard consumed in the United States is in

the form of prepared mustard.

Prepared mustard is a popular seasoning for meats (particularly sandwich

meats and hotdogs), meat dishes, and other prepared foods.

Producers

New York, California, and Wisconsin are the principal producing States

and contain over a third of the approximately 100 domestic producing

establishments. These firms vary widely in size and are distributed

throughout the country. However, a few large firms distributing nationally

advertised brands control a large share of the market.

U.S. consumption, production

During 1980-82, domestic consumption of prepared mustard is estimated to

have steadily trended upward from 450 million to 461 million pounds (table

A). Domestic producers supplied virtually all of domestic consumption. Trade

and industry sources indicate the steadily increasing consumption of prepared

mustard is related to population growth and the acquired taste for this

product as a complement to meat. Production of prepared mustard during

1978-82 is estimated to have increased steadily from 438 million pounds,

valued at $107 million, to 461 million pounds, valued at $171 million.

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Digest No. A103--Con.

U.S. exports

During 1978-82, U.S. exports of ground or prepared mustard (separate data

for prepared mustard are not available) decreased irregularly from 3.3 million

pounds, valued at $1.3 million, to 3.1 million pounds, valued at $1.5 million

(table B). Japan was the chief market, accounting for 16 percent, by value,

of 1982 exports. Saudi Arabia, Greece, and Canada were also major markets,

accounting for 8, 7, and 7 percent, respectively.

U.S. imports

During 1980-82 (separate data for prepared mustard were not available

until 1980), U.S. imports of prepared mustard increased from 2.5 million

pounds, valued at $2.1 million, to 2.9 million pounds, valued at $2.4 million

(table C). France was the principal source of imports in 1982, accounting for

87 percent, by value, of total imports. Other suppliers of note were the

United Kingdom, West Germany, and Canada. In 1982, GSP-eligible countries

supplied 18,000 pounds of prepared mustard, valued at $15,000 (table D). Most

of the prepared mustard imported from France is considered to be a high

quality mustard because of the high standards used in the selection and

processing of seed. In general, prepared mustard from European suppliers is

considered by some to be a specialty or gourmet product and often commands a

premium price over the domestic article.

Position of interested parties

The petition for granting GSP treatment to prepared mustard was presented

by the Government of Peru (FOPEX). There were no representations presented by

interested parties during the investigation.

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4

Digest A103--(

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Digest No. A103--Con.

Table A.--Prepared mustard: U.S. production, foreign trade, and consumption, 1978-82, January-June 1982 and January-June 1983

(Quantity in millions of pounds; value in. millions of dollars; unit value per pound)

: :

Period

• .

Production : Exports 2/ 1/

: : : : • Imports . • . : .

Consumption •

-:

Ratio (per- cent) of imports to consumption

• Quantity

1978 : 437.8 : 3.3 : 3/ : - 1979 : 443.7 : 3.3 : 3/ : - r - 1980 : 449.7 : 2.7 : 2.5 : 449.5 : .6 1981 : 455.6 : 3.4 : 2.5 : 454.7 : .5 1982 : 460.7 : 3.1 : 2.9 : 460.5 : .6 January-June : : : :

1982 : 3/ : 1.7 : 1.3 : - : 1983 : 3/ : 1.6 : 1.6 : - :

Value

1978 : 106.6 : 1.3 : 3/ : - : 1979 : 119.4 : 1.2 : 3/ : - : 1980 : 133.7 : 1.3 : 2.1 : - : 1981 : 149.7 : 1.5 : 2.2 : - : 1982 : 170.6 : 1.5 : 2.4 : - :

'January-June : : : : 1982 : 3/ : .8 : 1.2 : - : 1983 ; 3/ : .7 : 1.3 :

Unit value

1978 : $0.24 : $0.38 : 3/ : - : 1979 : .27 : .36 : 3/ : •- : 1980 : .30 : .50 : $0.84 : - : 1981 : .33.: .45 : .88 : - : 1982 : .37 : .48 : .84 : - : January-June : : : :

1982 : 3/ : .49 : .92 : - : 1983 : 3/ : .42 : .83 : - :

1/ Estimated from the reported quantity and value of prepared mustard as reported by the U.S. Department of Commerce in 1977 Census of Manufactures-Industry Series. Quantity has been converted from gallons to pounds through a conversion factor of 8.5 pounds per 1 gallon of prepared mustard. .

2/ Includes ground and prepared mustard. 3/ Not available.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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Page 48: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 49: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

p-Toluenesu

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Page 50: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. A401--Con.

Also, the major foreign producers are more competitive in world markets

because of their generally lower prices compared with the U.S. product.

U.S. imports

During 1978-82, U.S. imports of p-toluenesulfonyl chloride increased from

279,000 pounds to 1.1 million pounds (table 8). The principal sources of this

chemical during this period were Japan and the Netherlands. During

January-June 1983, imports of this chemical amounted to 894,000 pounds, an

increase of 50 percent compared with imports in the corresponding period in

1982. Small amounts of this chemical were imported from India, a GSP-

beneficiary country, beginning in 1981 through the first 6 months of 1983.

The Republic of Korea, another GSP-beneficiary country, also began exporting

small amounts of this chemical to the United States in 1982 (table C).

There is no difference in quality between the domestic and the imported

chemicals; pure grades of this chemical can be obtained from both sources. A

-determining factor to suppliers, consequently, is the cost of the chemical.

In 1982, the unit value of the imported chemical was $1.00 per pound as

Compared with approximately $1.50 per pound for the domestic chemical.

Postion of interested parties

The Government of the Republic of Korea is the petitioner requesting GSP

status for p-toluenesulfonyl chloride (item 403.05). The granting of GSP

status will enable Korea to be more competitive with other major exporters of

this chemical (e.g., Japan) to the U.S. market; according to the petitioner,

it will also benefit the domestic consumers by providing more competitive

prices. No submissions were received from other interested parties.

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4

Digest No. A401--Con.

* *

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5

Digest No. A401--Con.

Page 53: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. A.401- Con.

Table A.--p-Toluenesulfonyl chloride: U.S. production, foreign trade, apparent consumption, and ratio of imports to consumption

(Quantity in thousands of pounds; value in thousands of dollars; unit value per pound)

Period : Production : :

Exports : :

Imports : Apparent : consumption . : •

Ratio (percent) of imports to consumption

Quantity

1978 : *** : 1/ : 279 : *** : *** 1979-------: *** : 1/ : 642 : *** : ***

1980 : *** : 1/ : 871 : *** : ***

1981 : *** : 1/ : 950 : *** : *** 1982------- -: *** : 1/ : 1,056 : *** : *** Jan.-June: : :

1982- ---- -: 2/ : 1/ : 597 : - : 1983-----: 2/ : 1/ : 894 : - :

Value

1978 : *** : 1/ : 250 : *** : *** 1979 : *** : 1/ : 814 : *** : *** 1980--- : *** : 1/ : 1,263 : *** : *** 1981 : *** : 1/ : 908 : *** : ***

1982-.- : *** : 1/ : 1,051 : *** : ***

Jan.-June: : : : : 1982 : 2/ : 1/ : 597 : - : - 1983 : 2/ : 1/ : 712 : - : -

Unit value

1978 : *** : - : $0.90 : - : 1979 : *** : - : 1.27 : - : 1980- : *** : - : 1.45 : - : 1981 : *** : - : .96 : - : 1982 : *** : - : 1.00 : - : Jan.-June: : : : :

1982 : 2/ : - : 1.00 : - : 1983 : 2/ : - : .80 : :

1/ Negligible. 2/ Not available.

Source: U.S. production, U.S. International Trade Commission, Synthetic Organic Chemicals, United States Production and Sales, annual reports, 1978-82.

Page 54: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Benzoic acid

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2

Digest No.

A402--Con.

II. Comments

Description and uses

Benzoic acid is a synthetic organic chemical derived principally from

toluene. This chemical is used primarily as a broad-based intermediate in the

manufacture of plasticizers, resins, dyes, drugs, flavors, and perfumes. It

is also used as a food additive and in the production of phenol. This

chemical is available in two grades, technical and pharmaceutical (U.S.P).

Only the technical-grade benzoic acid is included in this digest, as the

pharmaceutical-grade benzoic acid is classified in TSUS item 410.56. The

major use of benzoic acid, excluding its use to produce phenol, is in the

production of glycol dibenzoate plasticizers which are used as stabilizers in

vinyl resins. Benzoic acid is also used in the production of sodium benzoate,

a food preservative, and of benzoyl chloride, an initiator and curing agent in

the production of polymers (i.e., plastics).

U.S. producers and employment

During 1978-82, there were four domestic producers of technical-grade

benzoic acid. These four producers operate five plants with a total annual

capacity of approximately 160 million pounds, excluding the amount used to

produce phenol. Employment data for the chemical are not available, as

workers in these plants are usually engaged in the production of more than one

chemical.

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Digest No. A402- Con.

U.S. consumption and production

During 1978-82, U.S. consumption of benzoic acid decreased from 85

million pounds to 62 million pounds, or by 28 percent (table A). Except for a

slight rise in 1981 because of increased consumer demand following an economic

downturn, the general trend has been downward since 1978.

Domestic production of benzoic acid during this period also decreased

from 85 million pounds in 1978 to 62 million pounds in 1982, or by 28 percent

(table A). During this period, yearly changes in production were similar to

the domestic consumption changes for the reason stated earlier; domestic

production and consumption were approximately the same for each year during

this period.

U.S. exports

During 1978-82, U.S. exports of benzoic acid were negligible. Industry

sources estimate that exports ranged from 1 to 3 percent of domestic

production during this period, mainly to Canada.

U.S. imports

U.S. imports of benzoic acid during 1978-82 increased from 7,000 pounds

to 441,000 pounds (table B). The large increase in 1982 was due to imports

from Canada and Japan. This trend continued in the first 6 months of 1983, as

imports continued to increase compared with a corresponding period in 1982,

from 141,000 pounds to 617,000 pounds, principally from Japan and Canada.

Imports from Japan are believed to be the higher grade, while those from

Canada are the technical grade as evidenced by their values in 1982

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4

Digest No. A402- Con.

($7.89 per pound from Japan vs. $0.22 per pound from Canada). In 1982 and

January-June 1983, there were small quantities' of imports of this chemical

from Romania, an eligible GSP-beneficiary country (table C). Despite an

increase in imports during 1978-82, the imports-to-consumption ratio, by

quantity, remained at less than 1 percent.

Postion of interested parties

The Government of Colombia is the petitioner requesting GSP status for

benzoic acid (item 404.04). That Government believes its exports of this

chemical under GSP would have little adverse impact on the U.S. producers

while providing an incentive to the development of the Colombian economy.

No submissions were received from U.S. producers.

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Digest No. A402--Con.

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6

Digest No. A402--Con.

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Digest No. A402--Con.

Table A.--Benzoic acid: U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousands of pounds, value in thousands of dollars: unit value in cents per pound)

Year Produc- tion

: : Exports : Imports consumpti on

Apparen t :

Ratio (percent) Ratio of imports to

consumption

Quantity

: • . : 1978-- : 85,175 : 1/ 7 : 85,168 : 0.01 1979 : 77,043 : 1/ 21 : 77,022 : .03 1980 : 73,414 : 1/ 17 : 73,397 : .02 1981 --: 78,547 : 1/ 225 : 78,322 : .3 1982 : 62,115 : 1/ 441 : 61,674 : .7 Jan.-June--: :

1982----- - : 2/ : 1/ 141 : 2/ : 1983-----: 2/ : 1/ 617 : 2/ :

Value

1978 20,440 : 1/ 2 : 20,438 : .01 1979-------: 24,650 : 1/ 58 : 24,592 : .2 1980- : 29,370 : 1/ 30 : 29,340 : .1 1981 : 35,350 : 1/ 1,098 : 34,252 : 3.2 1982--- : 27,330 : 1/ 880 : 26,450 : 3.3 Jan.-June : : :

1982 : 2/ : 1/ 800 : 2/ : 1983 : 2/ : 1/ 265 : 2/ :

Unit value

1978 : $0.24 : - : $0.25 : - : 1979 : .32 : : 2.79 : - : 1980-- : .40 : - : 1.77 : - : 1981 : .45 : - : 4.87 : - : 1982 : .44 : : 1.99 : - : Jan.-June : : :

1982 : - : - : 5.69 : - : 1983 : - : - : .43 : - :

1/ Negligible. 2/ Not available.

Source: U.S. production, compiled from U.S. International Trade Commission, Synthetic Organic Chemicals, United States Production and Sales, annual reports 1978, 1979, 1980, 1981, and 1982.

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Page 66: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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2

Digest.No. A403- Con.

II. Comments

Description and uses

The products included in this digest are synthetic organic chemicals

derived principally from petroleum. All of these chemicals are used primarily

in the processing of synthetic and natural rubber as either accelerators or

antioxidants. Accelerators are usually organic chemicals which greatly reduce

the time required for vulcanization of synthetic and natural rubber, and at

the same time improve ageing and other physical properties. Chemicals used as

antioxidants are added to rubber before curing to retard oxidation and

deterioration. One of the chemicals in this digest, 1,2-dihydro-2,2,4-

trimethylquinoline polymer, is used as an antioxidant, while the other three

chemicals are used primarily as accelerators.

U.S. producers and employment

At various times during 1978-82, five domestic producers manufactured at

least three of these chemicals. Three of these domestic producers are major

manufacturers of rubber products, while the remaining two producers are major

chemical firms. Two of the major rubber producers manufactured all four of

these chemicals at various times during 1978-82.

In 1982, there were three producers of 1,2-dihydro-2,2,4-trimethyl-

quinoline polymer; five producers of 2,2'-dithiobisbenzothiazole; four

producers of 2-mercaptobenzothiazole; and two producers of N-(oxydiethylene)-

benzothiazole-2-sulfenamide. The , number of employees engaged in the

production of these chemicals is not readily available because the employees

are generally used to produce a number of similar chemicals at a facility.

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*

Digest No. A403--Con.

U.S. consumption and production

Overall U.S. consumption of these four chemicals during 1978 -82

Domestic production of these chemicals during 1978-82

During 1978-82, the imports-to-consumption ratio for these chemicals

ranged from

* * * *

U.S. exports

Exact export data for the chemicals included in this digest are not

available as these chemicals are included in "basket" Schedule B numbers,

namely, antioxidants and accelerators. Based on the data available for these

categories and from industry sources, it is estimated that exports of these

chemicals during 1978-82 amounted to * * * percent of domestic production.

Exports of these chemicals were mainly to Canada, Western Europe, Brazil, and

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4

Digest No. A403- Con.

certain Far Eastern countries. Industry sources expect exports of these

chemicals to increase slightly in 1983 compared with'1982 as the economies of

the major export markets begin to recover. Competition from other foreign

producers will probably be greater than in previous years, as the increasing

value of the U.S. dollar has increased the price of these chemicals compared

with the cost of the foreign products.

U.S. imports

During 1978-82, U.S. imports of the chemicals included in this digest

increased significantly from 803,000 pounds in 1978 to 4.2 million pounds in

1982 (table A). One of the primary reasons for this increase was the

increasing value of the U.S. dollar relative to other currencies, resulting in

less costly imports compared with the domestic products. In 1982, imports of

these chemicals were mainly from the United Kingdom, West Germany, and

Belgium. Smaller amounts also came from France, Canada, Italy, and Poland.

The Commission did not find any imports of these chemicals from GSP-

designated countries during 1978-82. Data are not available for the first 6

months of 1983, but industry sources believe imports of these chemicals were

slightly higher than in the corresponding period of 1982 because of the

improving economy and the higher value of the U.S. dollar.

Industry sources believe there are no differences in quality between the

domestic and imported chemicals discussed here, especially for imports from

West European countries. These sources are not sure of the quality of the

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Digest No. A403--Con.

products from Mexico and other GSP—beneficiary countries which may export to

the United States if these chemicals are given GSP status.

Position of interested parties

Three chemical firms from Mexico, Quimica Organica de Mexico, S.A.,

Quimica Ameyal, S.A., and Novaquim„ S.A., which are subsidiaries of CYDSA,

Monterey, Mexico, are the petitioners requesting GSP status for the four

chemicals included in this digest. The granting of GSP status will give the

U.S. domestic industry a supplemental source of these chemicals at competitive

prices and also aid in the economic development of Mexico. The petitioners

contend GSP treatment of these chemicals will not adversely affect the U.S.

producers because the amounts intended for export will be quite small (not

more than 1,000 tons per year).

Mr. G. Pazianos and Mr. E. Martinez, on behalf of the three firms within

the CYDSA group, testified before the Commission in favor of granting GSP

treatment to the chemicals listed in this digest. They stated that granting

GSP status to these chemicals would aid the economic development of Mexico at

a critical time and provide U.S. customers with an additional source of these

chemicals at competitive prices. In addition, GSP treatment for these

chemicals would not adversely affect the domestic producers because the

amounts intended for export would be small.

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6

Digest No. A403--Con.

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7

Digest No. A403--Con.

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1978 1979 1980 1981 1982 Jan.-June :

1982 1983

8

Digest No. A403- Con.

.

Table A.--Rubber processing chemicals: U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousands of pounds, value in thousands of dollars: unit value in cents per pound)

: Year .

:

Produc- tion

• :Exports 1/:

. : Apparent

Imports • : Consumption :

Ratio (percent) of imports to

consumption

Quantity

1978-------: *** : 11,000 : 803 : *** *** 1979- : *** : 12,000 : 3,397 : *** *** 1980 : *** : 9,000 : 2,489 : *** *** 1981-- : *** : 3,800 : 3,800 : *** *** 1982 : *** : 7,000 : 4,154 : *** *** Jan.-June :

1982- : 2/ 2/ 2/ - :

1983- : 2/ 2/ 2/ : - :

Value

1978 : *** : 2/ 2/ - : 1979 : *** : 2/ 2/ - : 1980-: : *** : 2/ 2/ - : 1981--- : *** : 2/ 2/ - : 1982 : *** : 2/ 2/ - : Jan.-June : :

1982 : 2/ 2/ 2/ - : 1983 : 2/ 2/ 2/ - :

Unit value

1/ Estimated by the staff of the U.S. International Trade Commission. 2/ Not available.

Source: U.S. production, U.S. International Trade Commission, Synthetic Organic Chemicals. United States Production and Sales, annual reports, 1978-82; U.S. imports, U.S. International Trade Commission, Imports of Benzenoid Chemicals and Products, annual reports, 1978-82.

Page 74: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

12 ▪ ,c)

rt co p.

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information; U.S.

imports in 1982; competitive status

TITLE: Other cyclic intermediate chemicals

I. TSUS(A) item number; description; tar

iff

the final rate of duty.

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0

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2

Digest No. A404 -- Cc.".

II. Comments

Description and uses

The products included in this digest are Synthetic organic chemicals

derived principally from petroleum-derived products such as cresols and

benzene. These chemicals can be used as intermediates in the production of

more advanced synthetic organic chemicals and finished products (e.g., drugs)

or in their present form as end-use products (e.g., antioxidants).

The major use for 2,6-di-tert-butyl-p-cresol is as an antioxidant for

petroleum products, jet fuels, synthetic and natural rubber, plastics, and

food products. In addition, it can also be used in food packaging and animal

feeds (i.e., preservative) and as an intermediate chemical.

Potassium D-(-)-N-(1-methylcarbonylpropen-2-y1)-alpha-amino-p-

hydroxyphenyl acetate is used as an intermediate in the production of

amoxicillin, a semisynthetic penicillin.

The last chemical in this digest, 4-amino-6-chloro-m-benzenesulfonamide,

is also used primarily as an intermediate in the production of drugs. This

chemical is specifically used to produce chlorothiazide and hydrochlorothi-

azide, which are used as diuretics and antihypertensive agents.

U.S. producers, consumption, and production

During 1978-82, there were no domestic producers of potassium D-(-)-N-

(1-methylcarbonylpropen-2-y1)-alpha-amino-p-hydroxyphenyl acetate or 4-amino-

6-chloro-m-benzenedisulfonamide. According to industry sources, there may

have been domestic production of one or both chemicals during this period but

it was only as part of their production of the finished products (i.e., drugs)

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3

Digest No. A404--Con.

and not for the domestic market. The remaining chemical in this digest,

2,6-di-tert-butyl-p-cresol, had between five and six domestic producers per

year during this period, depending upon consumer demand.

U.S. consumption of the two chemicals used as intermediates in the

production of drugs during 1978-82 was essentially the same as the volume of

imports owing to the lack of any significant domestic production.

During 1978-82, U.S. consumption of a 2,6-di-tert-butyl-p-cresol

(technical and food grades)

During 1978-82, the two chemicals in the digest used as intermediates in

the production of drugs did not have any significant domestic production. The

other chemical, 2,6-di-tert-butyl-p-cresol, had domestic production of both

the technical and food grades which were reported to the Commission. During

this period, total domestic production of this chemical decreased from 23.7

million pounds in 1978 to 11 million pounds in 1982, or by 54 percent (table

A), for the reason stated earlier for the changes in the domestic consumption.

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4

Digest No. A404--Con.

U.S. production quantities of this chemical for both grades during 1978-82 are

shown in the following tabulation: 1/

Year Quantity (1,000 pounds)

Technical grade Food grade

1978 13,034 10,665 1979 13,051 9,269 1980 9,679 11,488 1981 9,217 7,714 1982 6,752 4,246

U.S. exports

Exact export data for the chemicals included in this digest are not

available as they are classified in residual "basket" Schedule B numbers.

Industry sources estimate, however, that exports of the two chemicals used as

intermediates in the production of drugs were nil during this period as they

are usually consumed domestically in the production of drugs which are more

likely to be exported. Exports of 2,6-di-tert-butyl-p-cresol during this

period averaged between * * * percent of domestic production based on data

for total exports of antioxidants obtained from Government sources and

industry estimates.

U.S. imports

*

1/ Source: U.S. International Trade Commission, Synthetic Organic Chemicals, United States Production and Sales, annual reports, 1978-82.

Page 78: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

S

Digest No. A404--Con.

Position of interested parties

Kaneka America Corp., an importer for their affiliate, Kaneka Singapore

Co., Ltd., is the petitioner requesting GSP status for potassium

4 D-(-)-N-(1-methylcarbonyl-propen-2-y1)-alpha-amino-p-hydroxy-

phenyl acetate. The company contends the addition of this chemical to the GSP

list will have a beneficial effect on domestic consumers--namely, from lower

prices. Also, the addition of this chemical to the GSP list will not harm any

domestic firm as it is not currently produced in the United States. Price

comparisons between the imported and domestic products could not be provided.

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6

Digest No. A404 Con.

Pliva of Zagreb, Yugoslavia is the petitioner requesting GSP status for

4-amino-6-chloro-m-benzenedisulfonamide. Pliva states that GSP status for

this chemical would not injure the domestic industry because it is not

produced for open market sales in the United States. This status, Pliva

further contends, would also reduce the manufacturing cost of the finished

drugs for the domestic producers, while allowing Pliva to compete with non-GSP

countries in selling this intermediate to U.S. firms.

Three Mexican companies which are subsidiaries of CYSDA, Monterey, Mexico

are the petitioners requesting GSP status for 2,6-di-tert-butyl-p-cresol.

They feel duty-free entry of this chemical would provide U.S. customers with

supplemental sources of this chemical at competitive prices and would not

adversely affect the domestic producers because the amounts intended for

export will be quite small in volume (i.e., not to exceed 1,000 tons per year).

Mr. G. Pazianos and Mr. E. Martinez, on behalf of the three firms in the

CYSDA group from Mexico, testified before the Commission in favor of granting

GSP status to 2,6-di-tert-butyl-p-cresol. They restated the reasons given in

the petition by the three Mexican companies requesting GSP status for this

chemical.

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Digest No. A404--Con.

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8

Digest No.

A404--Con.

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Digest No. A404 Con.

Table A.---Other cyclic intermediate chemicals: U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousands of pounds, value in thousands of dollars: unit value in cents persound)

Year Produc- tion 1/

:Exports 2/: Imports • Apparent Consumption • •

Ratio (percent) : of imports to

consumption

Quantity

1978-- 23,699 : *** : *** : *** : *** 1979-- 22,320 : *** : *** : *** : *** 1980-- 21,167 : *** : *** : *** : *** 1981-- 16,931 : *** : *** • *** • *** 1982- 10,998 : *** : *** : *** : *** Jan.-June :

1982 3/ *** *** 1983 : 3/ *** ***

Value

1978 : 21,092 : *** *** 1979 : 37,720 : *** *** 1980- : 29,634 : *** *** 1981 24,042 : *** *** 1982 17,597 : *** ***

- Jan.-June : •

1982 : 3/ *** *** 1983 : 3/ .*** ***

Unit value

1978 $0.89 : - : : - : 1979- : 1.69 : - : - : - 1980- : 1.40 : : - : 1981 : 1.42 : - : - : - : 1982 : 1.60 : - : - : - : Jan.-June : :

1982 : -: -: -: - : 1983 : - : - : - : - :

1/ Production data are only for 2,6-di-tert-buty-p'-cresol. 2/ Estimated by the staff of the United States International Trade

Commission. 3/ Not available.

Source: U.S. production, compiled from U.S. International Trade Commission, Synthetic Organic Chemicals, United States Production and Sales, annual reports, 1978-82; U.S. imports, compiled from U.S. International Trade Commission, Imports of Benzenoid Chemicals and Products, annual reports, 1978-82.

Page 83: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 84: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

'1980 2/ • 1981

0

X

It cv

IC IC

Cis

411.

56(p

t.)

Descrip

tio

n

0

.0

0

C we

Meclizine

hydrochloride

TSUS item number; descrip

tio

n; ta

riff rate

in

formatio

n; U.S.

imports

in

198

2; competitiv

e sta

tus

0

• . +4 0

02 A a -4 +1 C 1, •

ee 0

+s • -■

0 0 c)

C 0.5 0

0 0 t•

•••■ C.) V

Va 44 04 V 0

0 aa

ma

NI

Page 85: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. A405--Coli.

II. Comments

Description and uses

Meclizine hydrochloride occurs as a white or slightly yellowish

crystalline powder. It has a slight odor and is practically insoluble in

water and slightly soluble in alcohol. Meclizine hydrochloride is a

piperazine-derivative antihistamine which is used as an antinauseant. The

drug is mostly used in the prevention and treatment of motion sickness.

U.S. producers and employment

During 1978-81 meclizine hydrochloride was domestically produced by one

firm

* * *

Employment data are not available.

U.S. consumption and production

Estimated apparent consumption of meclizine hydrochloride varied during

1978-82, ranging from

Page 86: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No.° A405--Con.

* * *

U.S. exports

Export data are not available; * * *

U.S. imports

Imports of meclizine hydrochloride during 1978-82 ranged from a low of

a'7)out 5,000 pounds in 1978 to a high of almost 10,000 pounds in 1981 (table

B).

Position of interested parties

Pliva, a Yugoslavian firm, filed the petition with the U.S Trade

Representative for GSP treatment of meclizine hydrochloride. Pliva requested

GSP treatment for this drug allegedly to help foster economic development in

Yugoslavia. No submissions were received from other interested parties.

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4

Digest No.

A405--Con.

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5

Digest No. A405--Con.

Page 89: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. A405--Con.

IV. Statistical Data

Table A.--Meclizine hydrochloride: U.S. production, exports of domestic mer-chandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in pounds, value in dollars unit value per pound)

Period :Product ion : Exports : • •

Imports Apparent

:

consum

ption

Ratio (percent) of imports to consumption

Quantity

1978 • 1/ *** 2/ 4,926 : 1/ *** 1 / *** 1979 : 1/ *** 2/ 7,996 : 1/ *** 1 / *** 1980 : 1/ *** 2/ 6,778 : 1/ *** 1 / *** 1981 : 1/ *** 2/ 9,736 : 1/ *** 1/ *** 1982 : 1/ *** 2/ 5,935 : *** 1/ *** Jan.-June: :

1982 : 1/ *** 2/ 2/ *** *** 1983 *** 2/ 2/ *** ***

Value

1978 *** 2/ *** *** *** 1979 *** 2/ *** *** *** 1980 *** 2/ • *** *** *** 1981 *** 2/ : 1/ *** *** *** 1982 *** 2/ 1/ *** *** *** Jan.-June: :

1982 *** 2/ *** *** *** 1983 *** 2/ *** *** ***

Unit value

• •

1978 *** *** *** *** 1979 *** *** *** *** 1980 *** *** *** *** 1981 ***

- : 1/ *** *** *** 1982 *** - : 1/ *** *** *** Jan.-June: :

1982 *** *** *** *** 1983 *** *** *** ***

1/ * * * 2/ Not available.

Source: U.S. International Trade Commission, except as noted.

Page 90: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

prin

cip

al sourc

es,

••••• ..

0

CV .0 02

.H

0 a

0

S

03 LI C ed

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0 CY 1:1 0

04 CO CO E

1-1 «r 1.4

• 0 C/2

• 0 •• •• •• •• al

al cn V V a, •14 C 0 rl

tr al 0

0 P2 0

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IC IC Ic

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IC IC IC

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• • • • • 0,, • •

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• • • • • • • • •

IC ix IC it * * IC

* IC

If IC IC IC * it IC 4C * * iC

* IC * IC It * * IC IC * IC IC

* * * * * * If * * * * *

IC IK Of if if if * IC * IC if if

• • • • • • • • • •

If * If N 4C lc * 4C IC * 4c 4C

• • • • • • • • • •

ic Ic IC IC * IC *

IC Ir

• • • • • • • • • •

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• • • • • • • • • •

IC IC IC it IC it IC 4C IC IC IC IC

• • • • • • • • • •

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• • • • • • • • • •

If IK IC * IC 4C * IC * * If *

iC * 4C IC * Ic IC IC 4C 4C 4C 4t

• • • • • • . • • •

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1/ Not

available.

Unit

Value

a)

ed r-i

* * it IC

IC IC If IC

IC IC IC IC

iC IC * * * * IC *

If * IC *

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IC * IC IC

4C * IC *

IC IC IC

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Ln

Cr,

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'0 M r•-•

01

re.

tO

Its

ta at 01

r•••

tO CV

+se

Digest No. A405--Con.

U.S. Inte

rnationa

l Trade Commission, except

as note

d.

L 0 O C/!

Page 91: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Internationa

l Trade Commis

sion, excep

t as note

d.

a

0 0

January—June 1983

inclu

ding de

signa

ted

0

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8

Digest No. A405--Con.

Page 92: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

TITLE

: Acetyl ■u

lfisoxaso

le; sulf

amer

atin

e, sodiu

m

TSUS it

em n

umber; descrip

tio

n; tarif

f ra

te info

rmati

on; U.

S. impor

ts in

198

2; competit

ive sta

tus

• a O • • V • •

0

41.• 0

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J.) •

• 0

so

O

••

•1

• 1.8

A • .0 4.1 a O • • •

a.

0

. . .4 0 O

A a. a r4 a

O

8

. O

o.

0

• • • • • • • • • • • • • • • • • • ••

gain

s, sodium-

ulfisozazo

le

• • • • • - • • • • • • • • • • • •

• • • • • • • • • • • • • • • •

• 1.4 le1 ., 5. • ..4 CI 7 .0 CO

•■••• I. •

op .1./ a. a. ....

en rs co to

.4 .4

.4 .4 4r 4r

SI • V. .0 • 0 C.I V • 2 2 0 el SI V O 0 C L. L.

0. O C O • •

■ e4 0 0 0. 0

O r-C

O. • 6 C a-4

M.

• • • 1.•

9c

CO 0. r4

(0

•• •• 0. e • i • I a-I CO

r • p•I 4LI C

6 r)

• La 41' g • • 02 • ...I J.2 Q.

.

1.1 41.6 • 0 •

• • Yr la O Q. 0

• pf 0 •

O. 0 Os .0 r•I

.0 7 0 C • •

Y. • La

I. 0 .0 •

• • co •

• .✓ • r-I • • Y.+

• 0 ••

• .0 .0 • C 4.0 14• 1 • • C.) .0 O CO

• • .1.0

• 1.

Iry

• 2.

• L. • 0. .4

0 1.4 O 0

Desc

rip

tio

n

• •

0 0 z

co

• p1 eo

N ev •-I

• • •• .• •• • •

11 ye P

K

oe o4

en CV 04

Ire ye • vs

css ess

• • • •

0

0 • Y. 40 Or • 0

0 • .0 .0 • •

CO Od

• +. .41 NI

Page 93: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. A406--Con.

II. Comments

Description and uses

Acetyl sulfisoxazole (sulfisoxazole, acetyl) and sulfamerazine, sodium

are members of a group of chemicals referred to as anti-infective sulfonamides

because of their related chemical structures and antibacterial activity.

Although at one time anti-infective sulfonamides were widely used in the

treatment of bacterial infections, the development of resistant strains of

micro-organisms has limited the usefulness of these drugs. Anti-infective

sulfonamides are now used mostly to treat urinary tract infections in humans,

in veterinary medicine, and as growth promoters added to animal feeds.

Acetyl sulfisoxazole lacks the usual disagreeable taste of most of the

anti-infective sulfonamides and is used, therefore, mostly in pediatric syrups

or suspensions. Sulfamerazine, sodium is reportedly used primarily in

veterinary medicine or as an additive to animal feeds.

U.S. producers and employment

There is one domestic producer of acetyl sulfisoxazole. Employment data

are not available, but the number of employees associated with this product is

believed to be * * *

There was one domestic producer of sulfamerazine, sodium during 1978 and

1979; however, no production has been reported by this firm during 1980-82.

U.S. consumption and production

Precise statistics on U.S. consumption and production of acetyl

sulfisoxazole and sulfamerazine, sodium are not available. Domestic production

Page 94: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

3

Digest No. A406--Con.

of acetyl sulfisoxazole is estimated

*

There is believed to have been no U.S. production of sulfamerazine,

sodium during 1980-82 and data for prior years are not available. Apparent

consumption during 1980-82 is believed, therefore, to equal imports which were

erratic, ranging from about 5,000 to 34,000 pounds (table A-2). Actual

consumption of sulfamerazine, sodium was probably more even because it is

possible to sell drugs from inventory for several years--especially drugs,

such as this one, for which there is little demand.

U.S. exports

Export data for acetyl sulfisoxazole and sulfamerazine, sodium are not

available.

U.S. imports

Acetyl sulfisoxazole is not believed to have been imported into the

United States prior to 1981. In 1981, imports were 2,457 pounds, valued at an

estimated * * * (table B-1). In 1982, imports were 2,701 pounds, valued at

an estimated * * *

The estimated ratio of imports to consumption was

about *** percent, based on quantity, during 1981 and 1982. Imported acetyl

Page 95: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

4

Digest No. A406--Con.

sulfisoxazole is like and directly competitive with domestically produced

acetyl sulfisoxazole.

Imports of sulfamerazine, sodium increased from about 1,000 pounds in

1978 to 34,000 pounds in 1981 before declining to 5,000 pounds in 1982 (table

B-2). Since 1980, imports are believed to have served all of the domestic

market for this drug. There is little domestic interest in this product

because equally effective anti-infective sulfonamides are available at a lower

cost. * * *

Position of interested parties

Pliva, a Yugoslavian firm, filed the petition with the U.S. Trade

Representative (USTR) for GSP treatment of acetyl sulfisoxazole and

sulfamerazine, sodium. Pliva requested GSP treatment for these drugs

allegedly to help foster economic development in Yugoslavia.

According to Pliva, the domestic producer of acetyl sulfisoxazole

testified before USTR in opposition to Pliva's request for GSP treatment for

this drug.

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5

Digest No.

A406--Con.

Page 97: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. A406--Con.

* * *

Page 98: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. A406--Con.

IV. Statistical Data

Table A-1.--Acetyl sulfisoxazole: U.S. production, exports of domestic mer-chandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity

Period : Product

in pounds. value

ion : Exports :

in dollars. unit value per

Imports Apparent

: consumption

Quantity

pound) Ratio (percent)

of imports to consumption

• • • •

1978 1/ *** : 2/ 0 : 1/ *** 1/ *** 1979 1/ *** : 2/ 0 : 1/ *** 1/ *** 1980 1/ *** : 2/ 0 : 1/ *** 1/ *** 1981 1/ *** : 2/ 2,457 : 1/ *** 1/ *** 1982 1/ *** : 2/ 2,701 : 1/ *** 1/ *** Jan.-June: : •

1982 1/ *** : 2/ 2/ : 2/ 2/ 1983 1/ *** : 2/ 2/ 2/ 2/

Value

1978 1/ *** : 2/ *** 1/ *** 1/ *** 1979 1/ *** : 2/ *** 1/ *** 1/ *** 1980 1/ *** : 2/ *** 1/ *** 1/ *** 1981 1/ *** : 2/ *** 1/ *** 1/ *** 1982 1/ *** : 2/ *** 1/ *** 1/ *** Jan.-June: :

1982 : 1/ *** : 2/ 2/ : 2/ 2/ 1983 1/ *** : 2/ 2/ : 2/ 2/

Unit value • . •.

1978 1/ *** : : *** 1979 1/ *** : *** 1980 1/ *** : : *** 1981 1/ *** : - : 1/ *** :

1982 1/ *** : - : 1/ *** : Jan.-June: :

1982 1/ *** : 1983 1/ *** :

1/ * * * 2/ Not available.

Source: U.S. International Trade Commission, except as noted.

Page 99: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

8

Digest No. A406--Con.

Table A-2.--Sulfamerazine, sodium: U.S. production, exports of domestic mer-chandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

uantit in •ounds value in dollars unit value •er •ound •

. : Apparent

Ratio (percent) Period : Production : Exports : Imports : : of imports to

consumption : consumption

1978 1979 1980 1981 1982 Jan.-June:

1982 1983

Quantity

: : : : : : : :

1/ 1/

: :

0 : 0 : 0 :

: 0 : 0 :

1/ 1/

: :

0 : 0 : 0 :

: 0 : 0 :

1,102 :

9,921 : 15,103 : 34,065 : 4,960 :

1/ 1/ :

1/ . 1/ •

15,103 : 34,065 : 4,960 :

: 1/ : 1/ :

1/ 1/

1/ 1/

100 100 100

Value

1978 : 1/ : 1/ : *** , *** 1 / 1979 : 1/ : 1/ : *** *** 1/ 1980 : - : - : *** *** 100 1981 : - : - : *** *** 100 1982 : - • - : *** *** 100 Jan.-June: : :

1982 : - : - : - : - : 1/ 1983 : - : - : - : - : 1/

Unit value

1978 1979 1980 1981 1982 Jan.-June: :

1982 1983

1/ Not available.

Source: U.S. International Trade Commission, except as noted.

Page 100: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

✓-♦ al

0 C-1 *

N

N

9C

K

4(

• • • • • • • • • • • • • • • • : • • • • • • • • • • • • • • • • • • • • •

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0 0

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f—+ ed 43 O

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• • • • • •

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•• .• ••

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SC SC * 9c 9c

1/ Not available.

Inte

rna

tio

nal Trad

e Commission, except as note

d.

0

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9 Digest No. A406--Con.

(D

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Page 101: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. A406--Con.

10

a) 1-4

Inte

rnatio

nal Tr

ade Commis

sion, except as note

d.

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Page 104: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 105: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. A407--Con.

II. Comments

Description and uses

Chlorpropamide occurs as a white crystalline powder and is practically

insoluble in water but soluble in alcohol. Chlorpropamide is an orally active

hypoglycemic agent which is sometimes useful in the treatment of diabetes

mellitus. Chlorpropamide is a sulfonylurea compound which is structurally and

pharmacologically related to tolbutamide and other synthetic hypoglycemic

agents. Although chemically related to the anti-infective sulfonamides,

chlorpropamide has no antibacterial activity.

Chlorothiazide occurs as a white or practically white crystalline powder

and has a slightly bitter taste. The drug is slightly soluble in water or in

alcohol. Chlorothiazide is a thiazide diuretic. Chlorothiazide and related

diuretics, such as hydrochlorothiazide, are used mostly in the treatment of

congestive heart failure and hypertension. In the past, thiazide diuretics

were often used routinely during pregnancy to relieve edema. More recently,

enthusiasm for diuretic therapy in pregnant women has lessened, because edema

is now recognized as normal during most pregnancies.

U.S. producers and employment

There is one domestic producer of chlorpropamide and one domestic

producer of chlorothiazide. * * *

Employment data are not available; but the number of employees associated

with each product is believed * * *

Page 106: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

3'

Digest No. A407--Con.

U.S consumption and production

Precise statistics on U.S. consumption and production of chlorpropamide

and chlorothiazide are not available. Domestic production of chlorpropamide

is estimated to have been

*

U.S. exports

Exports of chlorpropamide and chlorothiazide are believed to be

negligible.

U.S. imports

U.S. imports of chlorpropamide were very erratic during 1978-82, ranging

from a low of 154 pounds 1981 to a high of 59,710 pounds in 1980 (table 11-1).

In 1982, imports totaled 1,674 pounds with * * *

Page 107: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

4

Digest No. A407--Con.

* * *

U.S. imports of chlorothiazide varied somewhat during 1978-82, declining

from 79,560 pounds in 1978 to 57,460 pounds in 1979, then increasing to 75,508

pounds in 1982 (table B-2).

*

Position of interested parties

Pliva, a Yugoslavian firm, filed the petition with the U.S. Trade

Representative for GSP treatment of chlorpropamide and chlorothiazide. Pliva

requested GSP treatment for these drugs allegedly to help foster economic

development in Yugoslavia. No submissions were received from other interested

parties.

Page 108: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

5

Digest No. A407--Con.

Page 109: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. A407--Con.

Page 110: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

7

Digest No. A407--Con.

IV. Statistical Data

Table A-1.--Chlorpropamide: U.S. production, exports by domestic mer- chandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in pounds. value in dollars, unit value per pound)

Period : Production : Exports : Imports Apparent consumption

Ratio (percent) of imports to consumption

Quantity

1978 1/ *** 2/ 3,748 : 1/ *** : 1/ *** 1979 1/ *** 2/ 17,030 : 1/ *** : 1/ *** 1980 1/ *** 2/ 59,710 : 1/ *** : 1/ *** 1981 1/ *** 2/ 154 : 1/ *** : *** 1982 1/ *** 2/ 1,674 : 1/ *** : 1/ *** Jan.-June: :

1982 1/ *** 2/ 2/ 2/ 2/ 1983 2/ 2/ 2/ : 2/ 2/

Value • •

1978 *** 2/ *** *** *** 1979 *** 2/ *** *** *** 1980 *** 2/ *** *** *** 1981 *** 2/ 1/ *** *** *** 1982 *** 2/ 1/ *** : *** ***

'Jan.-June: : 1982 *** 2/ 2/ 2/ 2/ 1983 2/ • 2/ 2/ 2/ 2/

Unit value

1978 1979 1980 1981 1982 Jan.-June: :

1982 1983

- : *** *** ***

1/ *** : - : 1/ *** :

1/ * * * 2/ Not available.

Source: U.S. International Trade Commission, except as noted.

Page 111: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

8

Digest No. A407--Con.

IV. Statistical Data

Table A-2.--Chlorothiazide: U.S. production, exports of'domestic mer- chandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

• uantit in •ounds value in dollars unit value •er •ound : : : • : Ratio (percent)

Period : Production : Exports : Imports : Apparent of imports to consumption : consumption

Quantity

1978 : 1/ *** : 2/ : 79,560 : 1/ *** 1/ *** 1979 : 1/ *** : 2/ : 57,460 : 1/ *** 1/ *** 1980 : 1/ *** : 2/ : 57,650 : 1/ *** 1/ *** 1981 : 1/ *** : 2/ : 60,868 : 1/ *** 1/ *** 1982 : 1/ *** : 2/ : 75,508 : 1/ *** 1/ *** Jan.-June: :

1982 : 1/ *** : 2/ : 2/ *** ***

1983 2/ : 2/ : 2/ : 2/ 2/

Value

1978 : 1/ *** : 2/ : *** : *** : *** 1979 : 1/ *** : 2/ : *** : *** : *** 1980 : 1/ *** : 2/ : *** : *** : *** 1981 : 1/ *** : 2/ : 1/ *** : 1/ *** : 1/ *** 1982 : 1/ *** : 2/ : 1/ *** : 1/ *** : 1/ *** Jan.-June: : : :

1982 : 1/ *** : 2/ : 2/ : 2/ : 2/ 1983 : 2/ 2/ : 2/ : 2/ : 2/

Unit value

1978 : 1/ *** : - : *** : - : 1979 : 1/ *** : - : *** : - : 1980 : 1/ *** : - : *** : - : 1981 : 1/ *** : - : 1/ *** : - : 1982 : 1/ *** : - : 1/ *** : - : Jan.-June: : : : : :

1982 : 1/ *** : - : - : 1983 : -: -: -: - :

1/ * * * 2/ Not available.

Source: U.S. International Trade Commission, except as noted.

Page 112: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 114: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 115: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 116: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 117: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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3

Digest No. A501--Con.

II. Comments

Description and uses

The articles under consideration for GSP treatment are certain colored

sheet glass classified in TSUS items 542.57 through 542.98 and defined as

colored 1/ blown or drawn glass 2/ (whether or not containing wire netting),

in rectangles, not ground, not polished, not pressed or molded, and not

otherwise processed, weighing over four ounces per square foot.

Sheet glass is a type of transparent flat glass with a smooth, fire-

polished 3/ surface produced by various glass-drawing processes. The drawing

method leaves faint ripples on the surface of the glass which to varying

degrees distort objects either viewed through, or reflected in, the glass.

This characteristic of sheet glass tends to exclude it from use when large

pieces are required and an oblique angle of view is likely. Sheet glass

dimensions vary in width from 60 to 120 inches and in thickness from

approximately 0.026 inch to 7/16th inch. Less than 5 percent of all flat

glass produced in the United States is sheet glass. 4/

1/ Colored glass is unprocessed glass whose light transmittance is retarded to varying degrees by coloring agents or opacifiers within the glass, and not by treatments or irregularities of the surface of the glass. Such glass may vary from opaque glass to glass with a transmittance of about 80 percent of normally incident light of certain wavelengths. The colors most commonly manufactured in the United States are bronze, gray, and green. Any desired color may be produced by altering the coloring agents in the batch of raw materials.

2/ Sheet glass is identified in the TSUS as "drawn or blown flat glass." All sheet glass today is drawn; blown sheet glass is now obsolete.

3/ A fire polish or finish is the brilliant surface achieved by allowing the molten glass to cool to rigidity without coming in contact with anything solid.

4/ Other types of flat glass include float glass and plate glass. Float glass is produced by floating molten glass over a bed of molten tin. Plate glass is manufactured principally by using the rolled glass process and 6^ tw 1n tho ourfatto if Mit 61685 td +tory Smooth, flat finish. Certain float and plate glass are covered under a separate digest.

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4

Digest No. A501--Con.

In recent years, sheet glass has been displaced by float glass in the

principal markets, including the automobile and construction (both residential

and commercial) industries. Sheet glass continues to be used in certain

specialized markets, particularly those where the use of float glass would be

impractical due to factors such as physical constraints on the manufacture of

certain glass thicknesses and increased production costs associated with low-

volume orders. Colored glass is consumed principally by the construction and

automotive markets; the narrower thicknesses are used in such products as

lenses for protective helmets and goggles.

U.S. producers and employment

At the present time sheet glass is produced in the United States by one

firm, operating one plant in Pennsylvania. The average level of employment at

the firm declined during 1980-82 (the most recent data available) and was

estimated at * * * in 1982. One other U.S. firm was engaged in the

production of sheet glass at various times during the period under

consideration: early in 1978, and from June 1980 to October 1981. No glass

is being produced by this firm at the present time. It is believed that these

two firms produced little, if any, colored sheet glass during the time period

under consideration; their output consisted of clear sheet glass.

By 1978, almost all domestic sheet glass-producing facilities had been

converted (or were in the process of being converted) to float glass lines,

with the exception of those operated by the aforementioned two firms.

Consequently, it appears that there have not been any U.S. producers of

colored sheet glass for commercial use during the subject time period.

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Digest No. A501--Con.

U.S. consumption and production

Estimated apparent U.S. consumption of certain colored sheet glass, which

is believed to approximate U.S. imports of this glass, rose 20 percent in

value during 1978-79, then fell 40 percent to $3.7 million in 1982 (table A).

The decline in apparent consumption is believed to have resulted from a

combination of factors, including the greater substitution of float glass for

sheet glass in the principal markets and the reduced demand from the

construction and automotive markets, which are heavily affected by

fluctuations in the economy.

U.S. production data for certain colored sheet glass are unavailable, but

production is believed to be negligible.

U.S. exports

Estimated U.S. exports of certain colored sheet glass are believed to be

negligible.

U.S. imports

U.S. imports of certain colored sheet glass fell 40 percent from their

peak value of $6.1 million in 1979 to $3.7 million in 1982 (table B), due

principally to declines in imports from the Federal Republic of Germany and

France. U.S. imports rose to $3.0 million in January-June 1983, an increase

of 33 percent compared to the corresponding 1982 level. This growth was

largely accounted for by increased imports from Singapore and Mexico (the

petitioner for GSP treatment). Major foreign suppliers to the United States

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6

Digest No. A501--Con.

in 1982 were the Federal Republic of Germany and France which together

accounted for 84 percent of U.S. imports by value, although this share was

lower than that recorded in the previous year.

U.S. imports from GSP countries fell from $412,000 in 1979 to $1,000 in

1981, then rose to $414,000 in 1982 (table C). In that year, imports from GSP

countries accounted for 11 percent of total U.S. imports by value. Imports

from GSP countries continued to rise in January-June 1983, reaching $1.2

million. During this period, imports from these countries accounted for 39

percent of the value imported. The principal GSP sources of U.S. imports are

Singapore, Mexico, and Colombia.

The nature of the sheet glass production process (and the associated

glass drawing operations) may result in significant quality differences in

pieces of glass with regard to the degree of distortion of objects viewed

through the glass. Although there is virtually no U.S. production of colored

sheet glass, U.S. glass manufacturers do produce colored float glass that

competes with high-quality, distortion-free imported colored sheet glass. 1/

In this instance, both foreign and domestic glass generally compete on an

equal basis in terms of quality, whereas a favorable price differential and

satisfactory customer service can be determining factors in the decision to

purchase the product. Because there is no domestic production of colored

1/ This competition is limited to glass thicknesses greater than 1/8-inch. Although there have been a few small-volume production runs of thin glass manufactured by the float process (primarily on an experimental basis), certain technical adjustments to this process must be accomplished in order for it to become a viable method of thin glass production.

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7

Digest No. A501--Con.

sheet glass, the majority of imports under the TSUS items being considered do

not compete with any U.S. products.

Position of interested parties

The petitioner, the Government of Mexico, requests that certain colored

sheet glass be designated as articles eligible for duty-free entry under the

Generalized System of Preferences. Vitro Flotado, a Mexican flat glass

producer, claimed that the designation of the subject flat glass as

GSP-eligible will have no effect on the U.S. flat glass industry. It was

alleged that imports of flat glass into the United States from all sources, in

comparison to U.S. manufacturers' shipments of flat glass, are negligible.

PPG Industries, Inc., and AFC Industries, Inc., both of whom are U.S.

float glass producers appeared in opposition to the Mexican government's

request that the subject flat glass articles be designated as eligible for GSP

treatment; they assert that the domestic industry will experience price

suppression and depression, as well as lost sales.

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8

Digest No. A501--Con.

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9

Digest No. A501--Con.

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10

Digest No. A501--Con.

III. Statistical Data

Table A.--Certain colored sheet glass: U.S. production, exports of domestic merchandise, imports for consumption and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Value in thousands of dollars) ;

Period: • . .

Production 1/: Exports 1/: • •

. : Imports : : •consumption 1/ :

Ratio (percent) of imports to consumption 1/

1978 : 2/ 2/ 5,104 : 5,104 : 100.0 1979 : 2/ : 2/ 6,129 : 6,129 : 100.0 1980 : 2/ : 2/ 4,109 : 4,109 : 100.0 1981 : 2/ : 2/ 4,195 : 4,195 : 100.0 1982 : 2/ : 2/ 3,706 : 3,706 : 100.0 Jan.-June: : :

1982 : 2/ : 2/ : 2,256 : 2,256 : 100.0 1983 : 2/ : 2/ : 3,011 : 3,011 : 100.0

1/ Estimated by the staff of the U.S. International Trade Commission. 2/ Negligible.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as indicated.

Page 126: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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2

Digest No. A502--Con.

II. Comments

Description and uses

The items under consideration for GSP treatment are certain float glass

and plate glass classified in TSUS items 543.21-543.69 and defined as

unprocessed 1/ glass in rectangles, whether or not colored 2/, not containing

wire netting in the uncolored glass, ground or polished on one or both

surfaces in whole or in part.

Float glass and plate glass are types of flat glass which have plane and

parallel surfaces and do not distort objects viewed through them. Float glass

is produced by floating molten glass over a bed of molten tin. Plate glass is

manufactured principally by using the rolled glass process and grinding the

surfaces of the glass to a very smooth, flat finish. Float glass production

is technologically superior to that of plate glass, which requires expensive

grinding operations to ensure a flat, distortion-free finish. Plate glass has

not been domestically produced for commercial use at any time during the

period under consideration.

1/ Unprocessed glass is that which has not been laminated, tempered, bent, frosted, sanded, enameled, beveled, etched, embossed, engraved, flashed, stained, painted, coated, ornamented, or decorated. 2/ Colored glass is unprocessed glass whose light transmittance is retarded

to varying degrees by coloring agents or opacifiers within the glass, and not by treatments or irregularities of the surface of the glass. Such glass may vary from opaque glass to glass with a transmittance of about 80 percent of normally incident light of certain wavelengths. The colors most commonly manufactured in the United States are bronze, gray, and green. Any desired color may be produced by altering the coloring agents in the batch of raw materials; however, U.S. manufacturers produce only those colors for which there is sufficient demand to make production economically viable. Colored glass, which represents approximately 7 percent of total commercial sales of unprocessed float glass in the United States, is consumed primarily by the construction and automotive markets. All float glass lines have the capability of producing colored glass, which requires only the addition of coloring agents to the existing batch of raw materials.

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Digest No. A502--Con.

The majority of float glass is consumed by the residential and commercial

construction, and the automotive original equipment and replacement markets.

Because the major users of float glass are heavily affected by fluctuations in

the economy, demand for float glass is highly cyclical.

U.S. producers and employment

Float glass is produced in the United States by 6 firms operating

approximately 22 plants. Plate glass has not been domestically manufactured

for commercial use at any time during the period under consideration. The

majority of the float glass producing establishments are located in the

Eastern and Midwestern States, with Pennsylvania, Ohio, Tennessee, and

Illinois accounting for the largest share of industry shipments. All of the

U.S. manufacturers are integrated operations and produce float glass,

processed glass, and fabricated glass products.

U.S. employment in the domestic industry producing float glass has

declined fairly steadily since 1978, reaching an annual average level of an

estimated 14,500 - 15,000 workers in 1982.

U.S. consumption and shipments

Estimated apparent U.S. consumption of certain float and plate glass

declined irregularly from 3.3 billion square feet ($935.0 million) in 1978 to

2.7 billion square feet, valued at $978.3 million, in 1982 (table A). Because

the major users are heavily affected by fluctuations in the economy, demand

for this glass is highly cyclical. The decline in apparent consumption during

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4

Digest No. A502--Con.

1978-82 reflects the soft demand accompanying the economic downturn. However,

renewed growth in construction activity and automobile production resulted in

an increase of 17 percent in consumption during the first six months of 1983

as compared to the corresponding 1982 period.

Paralleling the movement of consumption, producers' shipments of certain

float and plate glass fell 14 percent in 1982 from an estimated 3.4 billion

square feet ($983.7 million) in 1978 to an estimated 2.9 billion square feet

($1.1 billion) (table A). In 1982, the average capacity utilization rate for

U.S. producers, on the basis of square feet of glass produced, was estimated

at 55-60 percent.

U.S. exports

Estimated U.S. exports of certain float and plate glass rose 51 percent

from 178.9 million square feet ($75.1 million) in 1978 to 269.7 million square

feet ($138.4 million) in 1980 (table B). Exports declined 29 percent to an

estimated 190.9 million square feet ($106.0 million) in 1982, partly as the

result of reduced exports to Canada which also experienced soft demand from

its construction and automotive markets. Of the estimated level of exports in

1982, 50 percent, or 96.2 million square feet ($39.5 million), were shipped to

Canada. Shipments to Mexico represented 12 percent, or 22.6 million square

feet ($10.6 million).

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5

Digest No. A502--Con.

U.S. imports

U.S. imports of certain float and plate glass 1/ fell from a peak level

of 85.6 million square feet ($26.4 million) in 1978 to 13.7 million square

feet ($9.6 million) in 1981 (table C). Imports rose in 1982 to 25.3 million

square feet ($11.3 million) due to increases in imports from Canada, the

Federal Republic of Germany, Mexico (the petitioner for GSP treatment), and

the Korean Republic. Imports accounted for only 0.9 percent of apparent U.S.

consumption in that year. In January-June 1983, U.S. imports were almost

triple their level (in quantity) in the corresponding 1982 period, totaling

21.2 million square feet ($8.0 million). The increase was due to continued

growth in imports from the Federal Republic of Germany, Mexico, and the Korean

Republic. Major foreign suppliers to the United States in 1982 were Canada

and the Federal Republic of Germany, together accounting for almost 62 percent

of U.S. imports by quantity.

U.S. imports from GSP countries rose from 234,000 square feet ($440,000)

in 1979 to 4.7 million square feet ($1.4 million) in 1982 (table D), and

accounted for 19 percent of total U.S. imports by quantity. Imports from GSP

countries continued to increase in January-June 1983, reaching 9.6 million

square feet ($1.9 million). During the first half of 1983, imports from these

countries accounted for 46 percent of the quantity imported. The principal

GSP sources of U.S. imports are Mexico and the Republic of Korea. Combined

1/ Float glass is classified for customs purposes with plate glass in the Tariff Schedules of the United States. Plate glass is now a relatively unimportant article of commerce and in recent years accounted for only about two percent of total imports.

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6

Digest No. A502--Con.

imports from these two countries in 1982 reached 4.6 million square feet and

were more than 17 times their level in 1981; this upward trend continued in

the first six months of 1983, reaching a level approximately twice as great as

the entire year of 1982. According to industry sources, Mexican flat glass

capacity was expanded when a new float glass plant became operational in

1982. The Republic of Korea's first float glass plant reportedly became

operational in June 1981, explaining the negligible level of float glass

imports from Korea prior to 1982.

Float glass is a physically homogeneous product and quality differences

are minimal. Consequently, both foreign and domestic float glass generally

compete on an equal basis in terms of quality. Favorable price differential,

adequate product availability, and timely delivery can be determining factors

in the decision to purchase glass of like quality. In 1982, the average unit

values (in cents per square foot) of imports from Mexico and Korea were lower

by an estimated 8 percent and 27 percent, respectively, than the average unit

value of U.S. producers' shipments. Transportation cost can be a significant

factor affecting price; for example, the cost of ocean freight is believed to

account for 20-25 percent of the selling price.

Position of interested parties

The petitioner, the Government of Mexico, requests that certain float and

plate glass be designated as articles eligible for the Generalized System of

Preferences. Vitro Flotado, a Mexican flat glass producer, claimed that the

designation of the subject flat glass as GSP-eligible will have no effect on

Page 134: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. A502--Con.

the U.S. flat glass industry. It was alleged that imports of flat glass into

the United States from all sources, in comparison to U.S. manufacturers'

shipments of flat glass, are negligible.

PPG Industries, Inc., and AFG Industries, Inc., the two manufacturers,

are opposed to the Mexican government's request that certain float and plate

glass articles be designated as eligible for GSP treatment, asserting that the

domestic industry will experience price suppression and depression, and lost

sales. On September 16, 1983, PPG Industries filed a countervailing duty

petition with the U.S. Department of Commerce against float glass from Mexico.

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8

Digest No. A502--Con.

* * *

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. 9

Digest No. A502--Con.

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10

Digest No. A502--Con.

Table A.--Certain float and plate glass: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982 and January-June 1983

(Quantity in million square feet; value in millions of dollars) :

Year • • .

Producers' shipments

1/ 2/ - -

• : • .

Exports 1/ - • . • .

Imports : •

• .

Apparent consumption

1/

. • : :

Ratio (per-cent) of imports to consumption

Quantity

1978 : 3,391.9 : 178.9 : 85.6 : 3,298.6 : 2.6 1979--- : 3,296.3 : 229.5 : 29.3 : 3,096.1 : 0.9 1980 : 2,926.1 : 269.7 : 26.2 : 2,682.6 : 1.0 1981 : 3,068.7 : 226.7 : 13.7 : 2,855.7 : 0.5 1982 : 2,901.3 : 190.9 : 25.3 : 2,735.7 : 0.9 January-June: : : : • .

1982 : 1,450.7 : 101.1 : 7.7 : 1,357.3 : 0.6 1983 : 1,668.3 : 94.8 : 21.2 : 1,594.7 : 1.3

Value

1978---- : 983.7 : 75.1 : 26.4 : 935.0 : 2.8 1979 : 1,017.7 : 107.5 : 11.0 : 921.2 : 1.2 1980- : 969.4 : 138.4 : 11.0 : 842.0 : 1.3 1981 : 1,131.5 : 134.3 : 9.6 : 1,006.8 : 1.0 1982 : 1,073.0 : 106.0 : 11.3 : 978.3 : 1.2 January-June: : : : :

1982 : 536.5 : 54.7 : 4.0 : 485.8 : 0.8 1983 : 567.2 : 54.9 : 8.0 : 520.3 : 1.5

• 1/ Estimated by staff of the U.S. International Trade Commission. 2/ U.S. producers' shipments of plate glass were negligible or nil during

the time period under consideration. Estimated data on producers' shipments reflect only shipments of float glass.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as indicated.

Page 138: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 141: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 142: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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II. Comment

Description and uses

The products covered in this digest are certain television receiving

antennas of a type not designed to be an integral part of a television set.

These antennas are "rabbit-ears"; roof-mounted, omnidirectional antennas and

"dish-type" antennas used to receive television transmission via satellite

(sometimes referred to as satellite earth stations). Not covered by this

digest are television antennas which are designed to be incorporated into a

television receiver, dish-type antennas used for satellite communication

reception, transmission antennas, and other types of communication antennas.

The subject antennas are constructed of various types of base metal and

used primarily in residential and commercial markets.

U.S. producers and employment

There are approximately 25 producers of television receiving antennas in

the United States employing close to 1500 persons. U.S. producers each tend

to specialize in the production of one type of antenna. About half of the

producers manufacture roof-top type and several of those produce dish-type.

Two producers manufacture rabbit-ear type antennas, exclusively; and the

others manufacture a variety of different types. In terms of sales, the

largest six producers account for about 90 percent of the domestic industry.

U.S consumption and production

The level of consumption of television receiving antennas to some degree

depends on the level of consumption of television receivers, which has

increased irregularly but fairly steadily over the past several years,

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3

Digest No. A601--Con.

reaching 16 million units in 1982. This indicates that over 95 percent of the

households in the United States have at least one television set. The current

demand for television sets is primarily in the replacement and second-set

markets. As the latter market grows, demand for rabbit-ear-type antennas will

also grow. This is not the case with roof-top types, which generally can

provide transmission reception for more than one television receiver. Another

factor affecting the demand of television receiving antennas is the rapid

growth of cable television networks, which tends to moderate the demand for

television antennas. The most dynamic segment of the television receiving

antenna industry is the dish-type antenna for satellite transmission

reception. With most of the technical problems resolved, reduced production

costs, and increased broadcasting via satellite, dish-type antennas are

becoming a practical means of television reception particularly in rural areas.

Apparent consumption of the subject antennas decreased from $69.7 million

in 1978 to $59.4 million in 1980 before increasing thereafter to $67.0 million

in 1982 (table A). U.S. shipments followed the same trend as consumption,

decreasing from $72.6 million in 1978 to $61.7 million in 1980 before

increasing to $65.4 million in 1982.

U.S. exports

U.S. exports of certain television receiving antennas has followed no

discernible trend during 1978-82. Exports to the United Arab Emirates and

Canada accounted for 18 percent and 17 percent, respectively, of total exports

in 1982 (table B).

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Digest No. A601--Con.

U.S. imports

Annual U.S. imports of the subject television receiving antennas

increased irregularly from about $713,000 in 1980 to $5.0 million in 1982 or

by 604 percent. Such imports were $1.6 million in. January-June 1982 compared

to $3.6 million in January-June 1983, an increase of 127 percent. As a share

of apparent consumption, imports increased irregularly from 1 percent in 1978

to 6.9 percent in 1982. Canada and Japan, together, accounted for 77 percent

of total imports in 1982. Imports from designated GSP countries accounted for

1 percent of apparent consumption in 1982.

While domestic and imported antennas of the rabbit-ear and roof-top types

are somewhat interchangeable, there are currently no .known significant imports

of dish-type antennas. Two reasons account for the apparent lack of imports

of dish-type antennas. These antennas are technically advanced and only a few

countries possess the technology to make them. In addition, these antennas

are bulky and not easily packaged, making the shipping very expensive. Until

the U.S. market becomes significant, it is unlikely that there will be a large

increase in imports of these antennas; and even then imports will probably

come from Japan or European countries.

Position of interested parties

The Government of Malaysia requests that certain television receiving

antennas be added to the list of articles eligible for the GSP. The Elec-

tronics Industry Association (EIA) in the United States has taken a neutral

position with this issue. This is partly because EIA represents not only

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5

Digest No. A601--Con.

domestic manufacturers but also importers of the subject articles. Six

domestic manufacturers, accounting for over 90 percent of the industry, were

contacted. The general consensus was that imports of television receiving

antennas, particularly from developing countries, are not a major threat, and

so the domestic producers do not oppose the petition.

No submissions were received from other interested parties.

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Digest No. A601--Con.

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7

Digest No. A601--Con.

Table A.--Antennas: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption 1978-82, January-June 1982, and January-June 1983

Period Producers'

:

shipments 1/

: Exports 1/ : Imports : Apparent consump-

tion

: : :

Ratio of imports to consumption

1.000 dollars Percent

1978 72,603 : 3,594 : 1/ 713 : 69,722 : 1.0 1979- -- 70,298 : 3,939 : 1/ 1,390 : 67,749 : 2.1 1980 61,674 : 3,559 : 1/ 1,268 : 59,383 : 2.1 1981 64,338 : 4,185 : 1,163 : 61,316 : 1.9 1982 65,415 : 3,447 : 5,017 : 66,986 : 7.4 Jan.-June:

1982 2/ 2,074 : 1,570 : 2/ 2/ 1983 2/ 1,970 : 3569 : 2/ 2/

1/ Estimated by the staff of the U,S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

2/ Not available.

Source: Official statistics of the U.S. Department of Commerce except as noted.

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9

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Table D. Antennas: U.S. imports by certain world areas including designated GSP countries, 1979-82 and Jan.-June 1983

Item : :

• 1979 • :

:

1980 • January-June 1983

1981 1982 • • Imports : : :

Percentage distributio

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total- , : 732 : 618 : 847 : 4.010 : 3.010 : 8 , GSP countries, total----: 658 : 650 : 316 : 1,007 : 560 : it Mexico : 593 : 452 : - 58 : 650 : 348 : 1( Taiwan : 60 : 190 : 173 : 294 : 199 : ( Singapore : 1/ : 6 : 25 : 34 : 12 : 2/ Republic of Korea : 1 : 2 : 57 : 24 : 1 : 2/ Hong Kong : 3 : 1 : 2 : 4 : - : Panama--- : -: -: 1 : -: -: Costa Rica : - : - : - : - : - : Bahamas : - : 1/ : - : - : - Other GSP : 1 : 1/ - : - : - :

Other : - : 1/ - : - : - :

1/ Less than 500. 2/ Less than 0.5 percent.

Source: Compiled from official statistics of the U.S. Department of Commerce.

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Digest No. A701--Con.

II. Comments

Description and uses

The products classified under TSUS item 737.24 include all dolls except

stuffed dolls, regardless of use. Dolls as a product group can be subdividied

into two basic categories--toy or play dolls for children's use and

collectibles for collection or decoration. The dolls for which duty-free

treatment under the GSP has been requested, handmade dolls of wood or clay,

would fall primarily in the second category as decorative handicraft dolls.

However, also included are some wood or clay Christmas ornaments, wood toy

dolls, and wood puppets and marionettes, all of which may be used by children

for play. It should be noted that the term "handmade" is somewhat imprecise;

all doll production is highly labor intensive and a handmade doll can easily

compete with dolls that are not totally handmade.

U.S. producers and employment

There were approximately 200 producers of dolls and stuffed toys in

commercial quantities in the United States in 1982. Total employment was

approximately 7,000, with an estimated 6,000 production and related workers.

Data on producers and employment with regard to wood or clay dolls are not

available; however, the bulk of domestic production of these dolls is reported

to be on a cottage industry basis (often by skilled craftsmen and artisans),

with little commercial production.

U.S. consumption and production

Apparent U.S. consumption of all nonstuffed dolls decreased from an

estimated $134.8 million in 1978 to an estimated $133.2 million in 1979, and

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Digest No. A701--Con.

then increased annually to an estimated $202.9 million in 1982. Estimated

producers' shipments of all nonstuffed dolls declined annually from $69.2

million in 1978 to $32.9 million in 1981, and then recovered slightly to $39.7

million in 1982, representing an overall decline of 43 percent. The ratio of

imports to consumption increased annually from 50 percent in 1978 to 82

percent in 1982. Data on producers' shipments, exports, imports, and

consequently, apparent consumption for wood and clay dolls are not

available. 1/ However, wood and clay dolls are believed to account for less

than 5 percent of nonstuffed doll production and consumption. Imports provide

the major portion of U.S. wood and clay doll consumption.

U.S. exports

U.S. exports of all dolls ranged between $1.7 million and $2.3 million,

annually, during the period 1978-82 (table B). Exports during the first six

. months of 1983 were $500,000, down 35 percent from exports during the

comparable period of 1982. Mexico was the largest export market during the

period and accounted for 17 percent of the total in 1982. Exports of wood and

clay dolls are estimated by industry sources to be negligible.

U.S. imports

U.S. imports of all nonstuffed dolls increased annually from 128.3

million units valued at $67.4 million in 1978 to 187.4 million units valued at

1/ For this reason, no consumption table (table A) is shown.

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Digest No. A701--Con.

$165.4 million in 1982 (table C). Hong Kong and Taiwan were the largest

sources during the period, accounting for 55 percent and 23 percent,

respectively, of the value imported in 1982. Although official data on

imports of handmade wood and clay dolls are not available, imports of these

dolls are estimated to account for less than 5 percent of the annual import

value.

As shown in table D, imports from GSP countries accounted for the bulk of

imports of all nonstuffed dolls during the period, amounting to 182.3 million

units valued at $154.1 million in 1982--97 percent of the total quantity and

93 percent of the total value imported. Most imports of handmade wood and

clay dolls are believed to come from GSP countries, although some handcarved

collectible dolls and marionettes are sourced from Europe, particularly West

Germany. With the exception of the most inexpensive wood dolls used as

Christmas decorations, imports of handmade wood and clay dolls compete with

domestic products in two ways. In general, imported native handicraft dolls

of a particular country compete as collectible dolls on the basis of design

with both other imported dolls and U.S. handicraft dolls. In addition, it is

not uncommon for an importer or foreign manufacturer to take a marketable U.S.

doll produced by a craftsman, replicate it, and, by virtue of the lower labor

rates available overseas, market it in competition with the original at

significantly lower cost.

Position of interested parties

The government of Thailand was the petitioner in this case. There were

no other representations from interested parties.

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Digest No. A701--Con.

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Page 160: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 161: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. A702--Con.

II. Comments Description and uses

This digest covers buttons of acrylic resin, of polyester resin, or of

both such resins (TSUS item 745.32) and certain button blanks, molds, and

parts of buttons, other than casein blanks (TSUS item 745.42). 1/ Acrylic

and/or polyester resin buttons, which account for the greater part of total

domestic output of all types of buttons, are used for men's shirts and ladies'

blouses, dresses, and sportswear. They are the most important type of button

in terms of commercial significance and are sold under highly competitive

conditions in the U.S. market. Button blanks are limited to raw or crude

blanks suitable for manufacture into buttons. Button molds are forms

(generally wood) which are used in making covered buttons. Button parts

consist of such items as shanks, rims and backs.

U.S. producers and employment

There are seven domestic firms that produce buttons of acrylic and/or

polyester resins, with four accounting for 50 percent or more of total U.S.

production. The seven producers derive most of their income from button

manufacturing; they are located principally in the New York City Metropolitan

area, upstate New York, Connecticut, and New Jersey. Of the seven producers,

five produce button blanks, molds, and parts.

The industry producing the products covered by this digest is capital

intensive, and total employment for all products was about 3000 in 1982.

1/ Prior to Jan. 1, 1983, button blanks, molds, and parts (including casein button blanks) were entered under TSUS item 745.40.

Page 162: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

3

Digest No. A702--Con.

U.S. consumption and production

Based on information from industry sources, estimated consumption of

acrylic and/or polyester resin buttons amounted to $83 million annually in

recent years, with imports supplying approximately 5 percent of the domestic

market (table A-1). U.S. producers' shipments of these buttons amounted to an

estimated $80 million annually in recent years.

Data on U.S. producers' shipments and exports of certain button blanks,

molds, and parts, other than casein blanks, are not available; however,

industry sources indicate that virtually allU.S. consumption is supplied by

domestic production (table A-2).

U.S. exports

Although separate data on U.S. exports of the items considered by this

digest are not available, industry sources indicate that exports of acrylic

and/or polyester resin buttons accounted for about one to two percent of the

value of annual U.S. producers' shipments during 1978-82. Exports of button

blanks, molds, and parts accounted for less than one percent of such shipments.

U.S. imports

Imports of buttons of acrylic and/or polyester resins increased

irregularly during 1978-82, rising from 3.3 million gross to 4.1 million

gross, or by 23 percent. The value of imports decreased by 17 percent over

the period, dropping from $4.9 million to $4.0 million. The average unit

value declined from $1.46 per gross in 1978 to $0.99 in 1982 (table 8-1).

Page 163: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

4

Digest No. A702--Con.

The major supplying countries, Japan and Italy, together accounted for 80

percent of the total value in 1982. Imports of button blanks, molds, and

parts decreased by 49 percent during 1978-82, dropping from $457,000 to

$232,000 (table B-2). West Germany, Hong Kong, the Netherlands, and France

were the leading sources, accounting for 95 percent of the total value in 1982.

Raw material costs, which are lower in the United States than in most

other nations, give domestic producers a competitive advantage over most

foreign manufacturers. The labor component of production costs is minimal.

Domestic producers also enjoy proximity to the New York City garment district,

a large purchaser of buttons.

Countries designated as beneficiaries of the Generalized System of

Preferences (GSP) supplied 20 percent of the quantity (816,000 gross) and 10

percent of the value ($408,000) of total imports of acrylic and/or polyester

resin buttons in 1982 (table C-1). Thailand and Taiwan furnished virtually

all of the imports of resin buttons from beneficiary developing countries in

1982.

Imports from beneficiary developing countries supplied 17 percent of the

total value of button blanks, molds, and parts in 1982 ($39,000) (table C-2).

Hong Kong supplied virtually all of these imports in 1982.

Position of interested parties

The Government of Colombia, through the Export Promotion Agency of the

National Bank (Fondo de Promocion de Exportaciones, Banco de la Republica),

and Modern Buttons Ltd. of. Malta both petitioned for the addition of TSUS item

745.32 to the list of articles eligible for the GSP. Colombia also petitioned

Page 164: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

5

Digest No. A702--Con.

for the inclusion of TSUS item 745.42 on the list. Colombia contends that the

granting of its petition would not have an adverse impact on the U.S. industry

producing like articles. Allegedly, the increase in imports from developing

countries would supplant imports from developed nations such as Japan, Italy,

and West Germany. In doing so, imports under the GSP would provide U.S.

apparel producers and notions consumers with lower-priced buttons. GSP

eligibility would also benefit the economies of developing countries which

produce buttons.

The Maltese firm, Modern Buttons Ltd., asserts that it needs duty-free

treatment under the GSP for its high-quality polyester resin buttons to

compete with buttons from the United Kingdom, the Netherlands, West Germany,

Italy, Thailand, and Japan in the U.S. market. Modern Buttons Ltd. claims

that not only would GSP eligibility for item 745.32 increase employment in

Malta and improve Malta's balance of trade, but it would also lead to

increased exports of the raw material for polyester resin buttons from the

United States.

Page 165: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. A702--Con.

Page 166: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. A702--Con.

Table A-1.--Resin buttons: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982 and January-June 1983

(Quantity in thousands of gross; value in thousands of dollars; unit value per gross)

Year

: Ratio (per- .

•Producers' . Apparent • • : cent) of shipments • Exports 2/ : Imports • consumption : 1/ 3/ imports to

• : : :consumption 4/ .

Quantity

1978- - ----- 3,334 : 1979-- --------: 4,103 : 1980- -------: 2,574 : 1981-------- 4,165 : 1982- 4,098 : January-June: :

1982 : 1,609 : 1983-- --- 2,284 :

Value

• 1978- 4,858 : 1979- 5,064 : 1980-- -------: 4,079 : 1981-- 4,511 : 1982---- 4,043 : January-June: :

1982--- 1,939 : 1983- 2,213 :

Unit value

1978 : 1.46 : : 1979 : 1.23 : : 1980 : 1.58 : : 1981--- : 1.08 : : 1982 : .99 : January-June: : :

1982 : 1.20 : 1983 : .97 :

1/ Not available; however, trade sources estimate that producers' shipments amounted to approximately $80 million annually in recent years. 2/ Not available; however, trade sources indicate that exports are

negligible. 3/ Not available; however, the consumption of resin buttons is supplied

largely from domestic production. 4/ Not available; however, in terms of value, imports of resin buttons

supplied an estimated 5 percent of consumption in 1982.

Source: Compiled from official statistics of the U.S. Deparment of Commerce, except as noted.

Page 167: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

8

Digest No. A702--Con.

Table A-2.--Certain button blanks, molds, and parts: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982 and January-June 1983

. • . : Producers' •

• • : Imports : Apparent

Ratio (per- . shipments ' Exports 2/ consumption :

cent) of

1/ 3/ : 4/

• . imports to '

: • . : . :consumption 1/

Year

Thousands of dollars Percent

1978 : : 457 : : 1979-- : : 377 : : 1980 : : 254 : : 1981 : : 281 : : 1982 : : 232 : : January-June: : : :

1982 : : 102 : : 1983 : : 108 : :

1/ Not available. 2/ Not available; however, exports are believed to be smaller than imports. 3/ Since button blanks of casein are included, import figures for 1978-82

are slightly overstated. 4/ Not available; however, virtually all of U.S. consumption of certain

button blanks, molds, and parts are supplied by domestic production.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

Page 168: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 169: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

10

Digest No. A702--Con.

Table B-2.--Certain button blanks, molds, and parts: U.S. imports for consump-tion, by principal sources, 1978-82, January-June 1982, and January-June 1983 1/

(In thousands of dollars)

January-June-- Source • 1978 • 1979 • 1980 • 1981

1982 • 1982 ! 1983

F.R. Germany : 137 : 95 : 87 : 138 : 134 : 47 : 34 Hong Kong 71 : 67 : 52 : 75 : 38 : 14 : 30 Netherlands : - : - : 77 : 27 : 28 : 21 : France : 4 : 8 : 5 : 12 : 21 : 18 : 5 Italy •: 77 : 74 : 6 : 3 : 7 : - : 31 United Kingdom : 29 : 76 : 8 : 6 : 2 : 1 : Switzerland------ : - : - : 2 : 1 : - : 2 Taiwan : 138 : 45 : 2 : - : 1 : 1 : - All other : 1 : 12 : 15 : 20 : - : - : 6

Total------- 457 : 377 : 254 : 281 : 232 : 102 : 108

1/ Since button blanks of casein are included, import figures for 1978-82 are slightly overstated.

Source: Compiled from official statistics of Department of Commerce.

Page 170: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 171: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 173: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. B401--Con.

II. Comments

Description and uses

The chemical included in this digest, 2,4-dinitro-6-sec-butylphenol, is

produced from 2-sec-butylphenol, nitric acid, and sulfuric acid. The

principal use for this chemical is as a herbicide and plant desiccant. It is

used mainly in orchards and vineyards and on forage legumes as a general

contact herbicide and for killing potato vines and desiccating seed crops to

facilitate harvest.

U.S. producers and employment

Three domestic producers have manufactured this herbicide at various

times during 1978-82. In 1981, one manufacturer stopped production of this

herbicide and sold its trademark and customer lists to one of the remaining

domestic producers.

Employment data for this herbicide are not readily available as these

workers usually produce more than one product at a specific plant and as a

result these data are usually aggregated in larger groups (e.g., pesticides).

According to industry sources, however, there are a total of approximately* * *

workers engaged in the production of this herbicide by the remaining two

domestic producers.

U.S. consumption and production

Domestic consumption of this herbicide during 1978-82 increased from

Page 174: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

3

Digest No. 8401—Con.

U.S. exports

During 1978-82, industry sources estimate exports of this herbicide and

its formulations were less than***percent of domestic production. Exact

export data are not available as this product is classified in a residual

(basket) Schedule B number.

U.S. imports

In 1982, U.S. imports of this herbicide amounted to 2.5 million pounds. 1/

Over ***percent of these imports were from * * *

The Commission did not identify any imports of this herbicide for

its 1978 annual report, Imports of Benzenoid Chemicals and Products; however,

during 1979-82 import quantities increased from 275,000 pounds to 2.5 million

pounds (table A).

1/ Value of imports not available.

Page 175: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

4

Digest No. • 8401—Con.

During 1979-82, the imports-to-consumption ratio for this herbicide

* * *

There is no difference in quality between the domestic and imported

chemicals. As a result, the cost of the product to the consumer is a

significant factor in determining the supplier. According to industry

sources, the imported product is already very price competitive with the

domestic product, which accounts for its increasing share of the domestic

market.

Position of interested parties

Vertac Chemical Corp. is the petitioner requesting the withdrawal of

duty-free treatment for this herbicide from Romania under the GSP. Vertac and

the other domestic producer of this product contend they are being

significantly injured by duty-free imports of this product from Romania as

shown by their declining production and profits. They also stated that

Romania should no longer be eligible for GSP because it is a highly

industrialized country with a sophisticated chemical industry.

Page 176: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

5

Digest No. B401--Con.

Page 177: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. B401--Con.

Page 178: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

1978 *** 1979 *** 1980 *** 1981 *** 1982 *** Jan.-June :

1982 1983

Digest No. B401--Con.

.

Table A.--2,6-Dinitro-6-sec-butylphenol (Dinoseb): U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousands of pounds, value in thousands of dollars: unit value in cents per pound)

: Year

:

Produc- tion

. :Exports 1/: • •

. : Apparent

Imports • consumption .

Ratio (percent) of imports to

consumption

Quantity

: : •

1978 : *** : *** : - : *** : ***

1979 : *** : *** : 275 : *** : ***

1980 : *** : *** : -1,142 : *** : ***

1981 : *** : *** : 222 : *** : ***

1982 : *** : *** : 2,516 : *** : ***

Jan.-June- : : 1982 2/ 2/ : 2/ : - : 1983 : 2/ 2/ : 2/ : - :

Value

1978 : *** : 2/ : 2/ : - : 1979 : *** : 2/ : 2/ : - : 1980 : *** : 2/ : 2/ : - : 1981 : *** : 2/ : 2/ : - • 1982 : *** : 2/ : 2/ : - : Jan.-June : : : :

1982 : 2/ : 2/ : 2/ : - • 1983 : 2/ : 2/ : 2/ : - :

Unit value

1/ Estimated. 2/ Not available.

Source: U.S. production, compiled from U.S. International Trade Commission, Synthetic Organic Chemicals, United States Production and Sales, 1978-82; imports, compiled from U.S. International Trade Commission, Imports of Benzenoid Chemicals and Products, 1978-82.

Page 179: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 180: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 181: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. B402--Con.

II. Comments

Description and uses

Melamine is a finely divided white material, usually formed by heating

urea and ammonia under pressure. Virtually all melamine produced in the

United States and abroad is consumed in the manufacture of melamine

formaldehyde resins, although the chemical may also be used in the manufacture

of fire retardants, stabilizers, and ion-exchange materials.

U.S. producers

There are two domestic producers of melamine, one of which is a large

horizontally diversified and vertically integrated chemical company. The

other firm is a joint venture which produces melamine as it sole product. The

producing plants are located in Fortier, La., and Donaldsonville, La.

U.S. consumption and production

U.S. production of melamine in 1978 was 112 million pounds, valued at an

estimated $40.3 million.

Page 182: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

3

Digest No. B402--Con.

U.S. exports

U.S. exports are classified under a provision covering polyamines and

their salts, they are estimated to have been 10.4 million pounds, valued at

$14.7 million, in 1982 (table B).

U.S. imports

In 1978, imports of melamine were 27 million pounds, valued at $8.3

million. In 1982, imports declined to 22 million pounds, valued at $8.6

million (table C). The Netherlands, Brazil, and Austria together accounted

for over 87 percent by quantity of total imports of this chemical. The ratio

of imports to consumption fluctuated from 21 percent by quantity in 1978 to 18

percent in 1982. This ratio rose to 21 percent during the first six months of

1983, an increase of over 10 percent from the corresponding period in 1982.

GSP imports of melamine have grown dramatically in recent years. Brazil

has become the major GSP source of melamine, and imports from this country

rose from 121,000 pounds, valued at $39,000 in 1979, to 4.2 million pounds,

valued at $1.4 million in 1982. Brazil accounted for over 91 percent by

quantity of total GSP imports of melamine in 1982. In the period. January-June

1983, Brazil accounted for over 65 percent of GSP imports of melamine, and

nearly 22 percent by quantity of total imports of melamine.

Prices of imported melamine averaged

*

Page 183: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

4

Digest No. B402--Con.

Position of interested parties

The petitioner, Melamine Chemicals, Inc., has stated that imports of

melamine from Brazil have caused substantial injury to the U.S. melamine

industry. Although only one domestic producer regularly sells melamine in the

merchant market, the petitioner contends that continued imports of low-priced

melamine would result in plant closure. Additionally, because of the large

Brazilian plant capacity, a Brazilian ban on imports of melamine, and a lack

of favorable market conditions, the petitioner feels that either GSP treatment

for melamine should be removed or that Brazil should be deleted from the list

of eligible GSP countries.

No submissions were received from other interested parties.

Page 184: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

5

Digest No. B402--Con.

Page 185: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. B402--Con.

IV. Statistical Data

Table A.--Melamine: U.S. production, foreign trade, apparent consumption, and ratio of imports to consumption

(Quantity in thousands of pounds; value in thousands of dollars; unit value per pound)

• .Production Period . 1/

• Exports :

: Apparent Imports : consumption

Ratio (percent) of imports to consumption

Quantity

1978 : 112,158 : 11,194 : 26,932 : 127,896 : 21 1979 : *** : 5,382 : 20,742 : *** : ***

1980 : *** : 8,622 : 13,724 : *** : ***

1981 : *** : 11,947 : 29,410 : *** : **A

1982 : *** : 10,402 : 21,623 : *** : ***

Jan.-June: : : : 1982 : *** : 6,088 : 11,005 : *** : A**

1983 : *** : 3,874 : 9,662 : *** : ***

Value

1978 : 40,377 : 17,004 : 8,330 : 31,703 : 26 1979 : *** : 4,931 : 7,855 : *** : *** 1980 : *** : 9,016 : 5,640 : *** : ***

1981 : *** : 12,216 : 12,115 : *** : ***

1982 : *** : 14,663 : 8,650 : *** : ***

Jan.-June: : : 1982 : *** : 7,429 : 4,423 : *** : ***

1983 : *** : 5,631 : 3,780 : *** : ***

Unit value

: • . : 1978 : 0.36 ' : 1.52 : 0.31 : - : 1979 : *** : 0.92 : 0.38 : - : 1980 : *** : 1.05 : 0.41 : - : 1981 : *** : 1.02 : 0.41 : - : 1982 : AA* : 1.41 : 0.40 : - : Jan.-June: : : :

1982 : *** : 1.22 : 0.40 : - : 1983 : *** : 1.45 : 0.39 : - :

1/ * * *

Source: Production, Synthetic Organic Chemicals, United States Production and Sales, U.S. International Trade Commission, except as noted; imports and exports compiled from official statistics of the U.S. Department of Commerce.

Page 186: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 188: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 189: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 190: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

1/ Rate effective prior to Jan. 1, 1980.

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description; tariff rate information; U.S

Page 191: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. B403--Con.

II. Comments

Description and uses

Citric acid is a colorless, translucent, crystalline, organic chemical

that is also available in powdered form. It is odorless with a strong acid

taste. Its hydrated form releases water vapor spontaneously in dry air. It

is very soluble in water or alcohol. It is generally recognized as safe for

ingestion.

Citric acid is produced by the fermentation of carbohydrates from

molasses, corn starch, or lemon, lime, or pineapple juices. It is recovered

from the reaction medium by using milk of lime (calcium hydroxide) or a

patented liquid extraction process. Some plants have the flexibility of using

normal paraffins as feedstocks instead of or in addition to carbohydrates.

Other methods of producing citric acid have not been commercially adopted.

Because of the ease with which citric acid can be produced from a wide

variety of basic agricultural materials, the fermentation process has become

very attractive to those countries building new chemical industries with

little chemical expertise. This has proven to be especially true in some less

developed countries, where agricultural feedstocks and low cost labor are

available.

Citric acid is used as an acidulant in beverages, confections,

effervescent salts, pharmaceutical syrups, elixirs, effervescent powders and

tablets, and foods; as an antioxidant synergist in foods; as a sequestering

agent; as a water-conditioning agent; as a detergent builder; and as a

mordant; in the manufacture of alkyd resins and cheeses; in cleaning stainless

steel; and in removing sulfur dioxide from waste gases.

Page 192: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. B403--Con.

U.S. producers and employment

The U.S. producers of citric acid are two large, 4iversified

pharmaceutical companies. Miles Laboratories, Inc., owns citric acid plants

in Dayton, Ohio, and Elkhart, Indiana. Pfizer, Inc., owns citric acid plants

in Brooklyn, New York, Groton, Connecticut, and Southport, North Carolina.

U.S. capacity is estimated to be more than 400 million pounds per year.

Employment is estimated at slightly less than *** workers and declining.

U.S. consumption and production

*

U.S. exports

U.S. exports of citric acid were 20 million pounds, valued at $11

million, in 1978. They peaked in 1979 in terms of quantity at 44 million

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Digest Mo. 1403--Con.

pounds, valued at $27 million (table B). They decreased 43 percent in terms

of quantity to 23 million pounds, valued at $20 million, in 1982.

. Australia was the principal market during 1979-83, replacing Canada,

which fell to third largest in 1979 and 1982. Other markets where large

quantities of U.S. citric acid have previously been sold are the Philippines,

Argentina, and Belgium.

U.S. imports

U.S. imports of citric acid have been rising steadily during the last 5

years. Imports were 5.6 million pounds, valued at $2.6 million, in 1978. In

1982, they increased to 23 million pounds, valued at $14 million. For

January-June 1983, they increased 74 percent to 18 million pounds, valued at

$11 million, compared with 10 million pounds valued at $6 million, during the

corresponding period of 1982. The principal sources of imports of citric acid

in 1982 were Belgium, the Federal Republic of Germany, and Austria.

GSP imports of citric acid have also risen, from 198,000 pounds, valued

at $107,000 in 1978, to 903,000 pounds, valued at $534,000 in 1982. However,

during 1978-82 these imports have represented less than 4 percent of

consumption. This increase in imports from GSP countries is primarily the

result of new foreign plants beginning production. In the first 6 months of

1983 Israel and Mexico together accounted for over 84 percent, by quantity, of

GSP imports. Most imports come from non-GSP countries, with 11 percent of the

total originating from GSP beneficiaries in the first 6 months of 1983.

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5 ••

Digest No. 8403—Con.

The unit value of sales by U.S. producers

* * * * *

1 /

Although domestic consumption during the period 1978-1982

*

Pricing has been a factor in the increasing domestic market share for imported

material, and domestic producers have expressed concern over the rate at which

such imports are rising, especially duty-free GSP imports.

Position of interested parties

The petitioner, Pfizer, Inc., one of the two U.S. producers of citric

acid, argues that citric acid is an import-sensitive, homogeneous, fungible

product. The quantity of duty-free imports has increased in addition to

increases in dutiable imports, and this competition has suppressed prices and

sales. Market share is allegedly being lost due to the quantity and pricing

of GSP imports in particular; for this reason, the petitioner contends that

citric acid should be removed from the list of articles eligible for GSP

1/ Commissioner Stern notes * * * GSP imports are

priced higher than citric acid imports from the developed countries which are the principal sources.

Page 195: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

6

Digest No. B403--Con.

treatment. The other domestic producer, Miles Laboratories, Inc., supports

the petition. The Israeli producer of citric acid argues that GSP imports

represent less than 1 percent of consumption, are higher priced than non-GSP

imports and therefore, eliminating GSP status for citric acid will only result

in increased market share for the developed economies, rather than an

improvement in the domestic industry's economic condition. Also, in the case

of Israel, GSP status has not been eliminated in the EC.

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7

Digest No. B403--Con.

*

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8

Digest No. B403--Con.

Table A.--Citric acid: U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousands of pounds; value in thousands of dollars; unit value in cents per pound)

• Year

Produc- tion 1/ 2/

: •

Exports : : Apparent :Ratio 1/ (percent)

Imports : consump- : of imports to : tion 1/ : consumption

Quantity

1978 : *** : 20,050 : 5,612 : *** ; *** 1979 : *** : 43,760 : 9,263 : *** *** 1980 : *** : 40,676 : 10,227 : *** *** 1981 : *** : 23,508 : 17,138 : *** *** 1982 : *** : 23,265 : 23,098 : *** *** Jan.-June : •

1982 : 3/ *** : 14,068 : 10,343 : *** *** 1983 : 3/ *** : 5,426 : 17,952 : *** ***

Value

1978 *** : 11,491 : 2,625 : *** *** 1979 *** : 26,962 : 4,255 : *** *** 1980 *** : 30,745 : 5,700 : *** • *** 1981 *** : 19,146 : 10,206 : *** *** 1982 *** 19,827 : 13,623 : *** *** Jan.-June : •

1982 : 3/ *** : 11,257 : 5,999 : *** *** 1983 : 3/ *** : 5,471 : 10,764 : *** ***

Unit value

1978 ***-: 57 : 47 : - : 1979 *** 62 : 46 : - : 1980 *** 76 : 56 : - : 1981 *** 81 : 60 : - : 1982 *** 85 : 59 : - : Jan.-June :

1982 ***.; 80 : 58 : - : 1983 *** 101 : 60 : - :

1/ Business Confidential 2/ Production values estimated by applying the unit value of sales to

production quantities. 3/ Extimated by the staff of the U.S. International Trade Commission.

Source: Production, Synthetic Organic Chemicals, United States Production and Sales, U.S. International Trade Commission, except as noted; imports and exports compiled from official statistics of the U.S. Department of Commerce.

Page 198: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 200: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

11

Digest No. B403--Con.

Table D.--Citric acid: U.S. imports for consumption from GSP countries, 1978-82 January-June 1982, and Januay-June 1983

Source • • 1978

: 1979

• : January-June--

• 1980 1981 1982 1982 1983

Quantity (1,000 pounds)

Israel--- : 0 : 0 : 0 : 0 : 419 : 0 : 1,3 Mexico : 198 : 88 : 0 : 0 : 290 : 72 : 3 Turkey- : 0 : 0 : 0 : 0 : 162 : 162 : Thailand : 0 : 0 : 0 : 0 : 32 : 0 : 1 Taiwan- : 0 : 0 : 0 : 0 : 0 : 0 : Brazil : 0 : 0 : 44 : 0 : 0 : 0 :

Total : 198 : 88 : 44 : 0 : 903 : 234 : 2,0

Value (1,000 dollars)

Israel : - : - : - : - : 255 : - : Mexico : 107 : 47 : - : - : 175 : 35 : 2 Turkey- - : - : - : - : 86 : 86 : Thailand- : - : - : - : - : 18 : - : Taiwan : -: -: -: -: -: -: Brazil- : - : - : 29 : - : - : - :

Total---- --: 107 : 47 : 29 : - : 534 : 121 : 1,2°

Unit value (per pound)

Israel : - : - : - : - : $0.61 : - : $0.t Mexico : $0.54 : $0.53 : - : - : .60 : $0.49 : Turkey : - : - : - : - : .53 : .53 : Thailand- : - : - : - : - : .56 : - Taiwan : - : - : - : - : - : - : .t Brazil : - : - : $0.66 : - : - : - :

Average : .54 : .53 : .66 : - : .59 : .52 : •t •

Source: Compiled from official statistics of the U.S. Department of Commerce.

Page 201: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 202: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 204: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

3

Digest No. 8601--Con.

II. Comments

Description and uses

The products covered by this digest are nonmalleable cast iron pipe and

tube fittings (TSUS items 610.62-610.66), malleable cast-iron pipe and tube

fittings (TSUS item 610.70-610.74), and other types of steel pipe and tube

fittings (TSUS item 610.80).

Pipe and tube fittings of iron or steel serve to join lengths of pipe in

linear or nonlinear directions. They also provide access for cleaning pipe

systems and a means for branching systems, as well as joining pipes of varying

diameters. Fittings are available in a wide variety of shapes and sizes

including couplings, L's, and T's. Pipe and tube fittings are used in the

water, gas, oil, chemical, and power-transmission industries as well as in

missiles, airplanes, submarines, ships, and in homes.

Malleable cast-iron fittings are made from malleable grades of pig iron

which are annealed following cooling and cleaning. The annealing process

improves the ductility and durability of the metal by reducing its brittleness.

Malleable fittings can be machined and subjected to stress with less possi-

bility of fracture than nonmalleable fittings. Almost all malleable cast-iron

fittings are advanced (machined) after the casting stage. This advancement

usually involves threading. Nonmalleable cast-iron fittings are usually not

advanced beyond the casting stage. The principal applications for all cast-

iron pipe fittings are in piping systems where pressure does not exceed 300

pounds per inch. The principal markets served by cast-iron fittings are the

residential market and certain industrial markets where high-pressure pipes is

not required. Diameters of fittings range from 1 to 6 inches.

Page 205: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

4

Digest No. B601--Con.

Other types of steel pipe and tube fittings are generally used with steel

pipes in systems subject to high pressures and temperatures. These include

major industrial oil- and gas-related markets. Diameters range from 2 to 24

inches. Three major categories of steel fittings are produced. Threaded

fittings are designed to be fitted with lengths of pipe possessing

corresponding threads. Welding fittings are produced with specially prepared

edges designed to be welded to other, similarly prepared pipe ends. Flanged

fittings are generally shaped like a ring or collar and are provided with

holes for bolts at the end of the pipe or tube to allow another pipe or tube

to be attached. The use of flanges facilitates the removal or replacement of

lengths of pipe in a piping system with a minimum disruption of the system.

U.S. customs treatment

Pipe and tube fittings covered in this digest have been eligible for GSP

treatment since January 1, 1976. Since that time there have been two

exclusions. Between April 1, 1981 and April 9, 1982 the Republic of Korea was

not eligible for GSP treatment for exports of products under TSUS item

610.62. In addition, Israel was not eligible for GSP treatment for exports

of products under TSUS items 610.66 and 610.71 between March 13, 1978 and

March 13, 1979. There are currently no GSP exclusions for these products.

U.S. producers and employment

U.S. producers are part of the valve and pipe fittings industry (Standard

Industrial Classification 3494) which totals approximately 900 establishments.

There are 114 firms producing metal fittings, flanges, and unions for piping

systems (SIC 34945). Firms range from medium size to large multi-plant

foundries or forging operations. Establishments tend to specialize in one

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5

Digest No. B601--Con.

type of product, such as cast or malleable iron fittings and unions; forged

steel fittings, unions or flanges; or stainless and alloy fittings or

flanges. In 1982 there were five known major producers of cast iron

fittings. The four largest companies producing steel fittings account for

about 25 percent of all shipments, while the 50 largest companies account for

almost 90 percent of such shipments. Producers tend to be concentrated in

major metropolitan areas where demand is largely centered. Employment in the

valve and pipe fittings industry decreased from approximately 100,000 in 1978

to 94,600 in 1982, which is believed to reflect the employment trend

experienced by firms producing pipe and tube fittings.

U.S. consumption and shipments

The value of apparent U.S. consumption of pipe and tube fittings

increased 50 percent from $0.8 billion in 1978 to $1.2 billion in 1981, before

declining 33 percent to $0.8 billion in 1982 (table A). Demand for pipe and

tube fittings is largely dependent on consumption of oilfield pipes and tubes,

which increased 60 percent during 1978-81 with the rise in oil prices and oil

drilling activity; demand by the oil- and gas-related industries weakened in

1982. Demand for cast-iron fittings is believed to have declined in recent

years due to the substitution of cast-iron pipe by copper and plastic pipe in

residential markets. The ratio of imports to consumption increased from 13

percent in 1978 to 29 percent in 1982.

The value of U.S. shipments of pipe and tube fittings paralleled

consumption trends during 1978-82, increasing 44 percent from an estimated

$0.9 billion in 1978 to an estimated $1.3 billion in 1981, due principally to

strength in the oil and gas end-user markets and declining to an estimated

$1.0 billion in 1982 as these markets weakened.

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6

Digest No. B601--Con.

U.S. exports

The quantity of U.S. exports of pipe and tube fittings declined unevenly

during the 1978-82 period, from 70,300 short tons in 1978 to 58,300 short tons

in 1982, while the value increased from $217 million in 1978 to $351 million

in 1982 (table A). Saudi Arabia, with 26 percent of the total, and Canada,

with 22 percent of the total, were the principal destinations for exports of

these products in 1982 (table B).

U.S. imports

U.S. imports of pipe and tube fittings increased 57 percent from 98,600

short tons ($103.7 million) in 1978 to 154,600 short tons ($247.6 million) in

1981 as increased demand for fittings for use in the oil and gas industries

created spot shortages of these items, record order backlogs, and lengthened

delivery times (table A). Imports declined 10 percent to 139,000 short tons

($223.2 million) in 1982 following reduced oilfield activity. Japan, with 39

percent of total imports, was the principal supplying country to the United

States in 1982 (table C).

GSP imports increased from 12,000 short tons ($11 million), representing

12 percent of total imports in 1978, to 33,000 short tons ($43 million),

representing 24 percent of total imports in 1982. South Korea and Taiwan were

the principal suppliers of GSP imports to the United States in 1982 (table

C-1). Imported pipe and tube fittings are comparable in quality to domestic

products and used in similar applications, but are priced considerably lower.

Position of interested parties

U.S. producers, represented by the American Pipe Fittings Association,

support withdrawal of GSP treatment for imports of pipe and tube fittings.

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7

Digest No. B601--Con.

These producers allege that GSP countries have demonstrated international

competitiveness in these products, as reflected by rising levels of GSP

imports, and that failure to withdraw GSP treatment will adversely affect

employment and sales in the pipe and tube fittings industry.

The Board of Foreign Trade, Republic of China on Taiwan, Korea Flange

Company Ltd, The Mundo Corporation, Tupy American Foundry Corporation, and the

Taiwan Association of Machinery, and Sequoia International oppose withdrawal

of GSP treatment, alleging that the U.S: economic recession and product

substitution, rather than GSP imports, are responsible for the declining

position of the domestic industry. They believe that removal of GSP treatment

will do little to help U.S. producers but will benefit non-GSP developed

countries, such as Japan, which currently undersell U.S. producers in many

product categories. The opponents conclude by stating that GSP countries

cannot compete in the U.S. market without GSP treatment.

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Digest No. B601--Con.

* * * * *

Page 210: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

9

Digest No. B601--Con.

.

Table A.--Pipe and tube fittings: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1918-82, January-June 1982 and January-June 1983

(Quantity in short tons; value in thousands of dollars)

Year : Producers' : shipments

: : :

Exports . : Imports

: : :

Apparent consumption

: : :

Ratio (per-cent) of imports to consumption

Quantity

1978- : 1/ 70,329 : 98,636 : 1/ : 1/ 1979 : 1/ 60,711' : 104,452 : 1/ : 1/ 1980- : 1/ 75,971 : 109,744 : 1/ : 1/ 1981- : 1/ 68,803 : 154,591 : 1/ : 1/ 1982- : 1/ 58,346 : 139,039 : 1/ : 1/ January-June: : . : :

1982--- : 1/ 31,689 : 88,946 : 1/ : 1/ 1983- : 1/ 29,234 : 47,879 : 1/ : 1/

Value

1978 : 900,000 : 217,111 : 103,743 : 786,632 : 13.2 1979- : 1,100,000 : 257,205 : 131,346 : 974,141 : 13.5 1980 : 1,200,000 : 324,267 : 154,753 : 1,030,486 : 15.0 1981 : 1,300,000 : 365,970 : 247,590 : 1,181,620 : 21.0 1982--- :2/ 900,000 : 350,643 : 223,196 : 772,553 : 28.9 January-June: : :

1982- : 1/ 189,371 : 148,240 : 1/ : 1/ 1983 : 1/ 146,299 : 59,311 : 1/ : 1/

1/ Not available. 2/ Estimated by staff of the U.S. International Trade Commission.

Source: Producers' shipments are estimated from data found in Annual Survey of Manufactures, 1981, U.S. Department of Commerce. Import and export statistics are compiled from the official statistics of the U.S. Department of Commerce.

Page 211: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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12

Digest No. 8601-Con.

Table C-1.--Pipe and tube fittings of iron or steel: U.S. imports for consumption, under the Generalized System of Preferences by principal sources, 1978-82, January-June 1982, and January-June 1983

(Quantity in short tons; value in thousands of dollars)

Source January-June--

. • 1978

1979 • 1980

1981 1982

• 1982 : 1983

Quantity

South Korea--- : 2,240 : 5,129 : 6,402 : 8,126 : 8,043 : 4,546 : 4,306 Taiwan : 3,378 : 5,627 : 5,823 : 7,912 : 9,996 : 5,014 : 5,181 Brazil : 294 : 2,310 : 4,449 : 6,791 : 5,271 : 3,322 : 986 Israel 365 : 507 : 1,063 : 614 : 579 : 276 : 246 Malaysia : 569 : 1,030 : 817 : 1,006 : 1,076 : 528 : 253 Romania 0 : 76 : 468 : 1,384 : 492 : 415 : 19 India-- : 4,409 : 5,765 : 7,727 : 9,533 : 5,724 : 2,886 : 3,361 Singapore : 128 : 3 : 0 : 308 : 630 : 580 : 33 All other : 686 : 699 : 466 : 582 : 1,191 : 811 : 524

Total : 12,069 : 21,146 : 27,215 : 36,256 : 33,002 : 18,378 : 14,909

Value

South Korea : 1,626 : 5,407 : 6,298 : 9,136 : 8,381 : 4,965 : 5,044 Taiwan : 4,041 : 7,576 : 8,640 : 12,291 : 15,029 : 7,820 : 7,024 Brazil : 235 : 1,839 : 4,055 : 7,526 : 6,268 : 4,071 : 759 Israel : 1,227 : 2,078 : 3,189 : 4,412 : 3,532 : 2,009 : 2,062 Malaysia : 643 : 903 : 924 : 923 : 1,383 : 648 : 378 Romania 0 : 60 : 434 : 1,376 : 477 : 410 : 12 India : 2,295 : 3,833 : 6,356 : 8,297 : 4,145 : 2,341 : 1,690 Singapore 50 : 8 : 0 : 2,498 : 1,946 : 1,636 : 86 All other : 919 : 696 : 481 : 711 : 1,849 : 1,212 : 673

Total---- : 11,036 : 22,400 : 30,377 : 47,170 : 43,010 : 25,112 : 17,720

Source: Compiled from official statistics of Department of Commerce.

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2

Digest No. B701--Con.

II. Comments

Description and uses

This digest covers furniture of rubber or nonreinforced or nonlaminated

plastics, n.s.p.f., and parts thereof (TSUS item 727.50) and includes all

furniture made of polyvinyl chloride (PVC) such as plastic pipe furniture, 1/

outdoor chairs, T.V. or stereo stands, and baby walkers. Also included is

injection molded plastic furniture, which may range from plastic cubes to

bedroom suites. Vinyl waterbed mattresses and liners are also covered by this

digest. 2/ These articles are two primary components of waterbeds; all

waterbeds require mattresses that can be filled with water or some liquid

substance (they generally hold about 200 gallons), as well as plastic liners

which serve as a protective layer between the waterbed frame and waterbed

mattress.

Also included in this digest are mattresses other than those wholly or in

chief value of cotton (TSUSA item 727.8630), which are generally rectangular

pads of heavy cloth filled with some substance or material as a stuffing.

This stuffing may be made of expanded, foamed, or sponge rubber or plastics,

and may also include springs or steel coils sandwiched between the layers of

insulation or cushioning. Mattresses are used primarily as, or on, a bed for

the purpose of sleep.

1/ General Foam Plastics Corporation has submitted a petition to the GSP subcommittee for the removal PVC furniture from GSP eligibility. 2/ The Waterbed Manufacturers Association (WMA) has submitted a petition to

the GSP subcommittee for the removal of waterbeds and liners from GSP eligibility.

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Digest No. B701--Con.

U.S. customs treatment

Waterbed mattresses are officially classified under the provisions of

TSUS item 725.50 pursuant to the unpublished U.S. Customs Headquarters Letter

numbered CLA-2 CO:R:CV:b 069729 JLV, dated July 26, 1982. Prior to that time,

waterbed mattresses were classified in either TSUS item 727.50 or TSUSA item

727.8630, mattresses of non-cotton materials. The petition submitted by the

WMA also asked that TSUSA item 727.8630 be included for withdrawal of GSP

status.

Prior to Jan. 1, 1980, furniture of rubber or plastics, n.s.p.f., was

classified with furniture for civil aircraft of the same material under TSUS

item 727.48. TSUS item 727.48, later divided into items 727.50 and 727.51

(furniture of rubber and plastics for civil aircraft), became eligible for GSP

treatment on Jan. 1, 1976, pursuant to section 502 (a)(3) of the Tariff Act of

1974. Since that time no beneficiary countries have been excluded from GSP

benefits.

U.S. producers and employment

The number of U.S. producers of all types of furniture of rubber and or

plastics is believed to be approximately 500. There are about 25 U.S.

manufacturers of vinyl waterbed mattresses and/or liners. There are also

about 100 companies that manufacture supplies for the waterbed industry. The

majority of these manufacturers are located in California, particularly in the

Los Angeles area. Others are located in Maryland, Nebraska, Nevada and Ohio.

Most of the manufacturers are small, and total employment in the waterbed

mattress and liner industry is estimated at 1500 persons. Employment data for

the entire rubber and plastics furniture industry are not available. The

process for waterbed mattress production is very labor intensive, as the

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4

Digest No. B701--Con.

mattresses are fashioned from large strips of PVC plastic; waterbed liners are

basically specially cut sheets of the same plastic material.

Mattresses are manufactured by several hundred firms located throughout

the United States with extremely localized production due to freight and

packaging expenses. The national market is dominated by several brand name

products sold through franchises; employment for the mattress and bedspring

industry was estimated at 30,000 in 1982.

U.S. consumption and production

'U.S. consumption of all furniture of rubber or plastics is not known

(table A-1), but consumption of waterbed mattresses and liners is estimated at

between $80 million and $85 million in 1982, up from $25 million in 1978. The

U.S. industry estimates that approximately 15 to 20 percent of U.S. consumption

of waterbed mattresses and 60 percent of the consumption of liners were

supplied by imports in 1982. The ratio of imports to consumption for all

furniture of rubber or plastics is believed to be small.

U.S. production of all furniture of rubber or plastics is not available

(table A); however, production of waterbed mattresses is estimated to have

been approximately $70 million in 1982, up from an estimated $21 million in

1978, while production of liners is estimated at $3.5 million, up from $650

thousand in 1978. * * *

U.S. apparent consumption of mattresses declined from 1978 to 1981,

falling from an estimated $647 million to an estimated $419 million, then

increased sharply in 1982 to an estimated $720 million (table A-2). U.S.

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Digest No. 8701--Con.

producers' shipments of mattresses followed the same trend, falling from an

estimated $652 million in 1978 to and estimated $427 million in 1981, then

increasing to an estimated $730 million in 1982. The import to consumption

ratio for mattresses is negligible, less than 1 percent for the whole period.

Generally, mattress consumption is closely related to conditions in the

housing and general furniture industries; these industries suffered serious

problems in 1980 and 1981, but conditions began to improve in 1982.

U.S. exports

U.S. exports of all furniture of rubber or plastics, n.s.p.f., more than

doubled between 1978 and 1982, rising from $2.4 million to $5.8 million

(table B-1), with the principal markets being France, Japan, and Canada. For

the first six months of 1983 as compared with the same period in 1982, exports

declined from $2.4 million to $1.0 million, or by more than 58 percent. The

decline in U.S. exports can be attributed to the continued strength of the

U.S. dollar and to competition in world markets from certain Far Eastern

-countries. Exports of waterbed mattresses and liners are believed to be

negligible.

U.S. exports of mattresses increased in the period 1978-82, from $4.9

million to $9.9 million; however, exports declined in the first half of 1983

compared to the first half of 1982, falling from $4.9 million to $2.8 million,

or by 43 percent (table B-2). This steep decline reflects the continued high

value of the U.S. dollar in the world economy, which makes these relatively

high priced items even more expensive. The principal markets for U.S. exports

were Saudi Arabia and the Bahamas with these two countries receiving 50

percent of U.S. exports.

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Digest No. 8701--Con.

U.S. imports

U.S. imports of all furniture of rubber or plastics have been irregular,

decreasing from $40.0 million in 1978 to $37.1 million in 1982 (table C-1). 1/

The primary sources of these imports were Taiwan and Canada, who together

accounted for 67 percent of total imports in 1982. Imports for the first six

months of 1983 increased by $4 million over the same period in 1982, rising

from $21.2 million to $25.2 million.

Total GSP imports for the period 1978 to 1982 declined from $23.1 million

to $17.2 million, with Taiwan and Mexico the leading GSP suppliers in 1982

(table C-2). GSP imports accounted for 46 percent of total imports in 1982.

Such imports for the first six months of 1983 increased more than $4.5 million

over the same period of 1982, rising from $10.3 million to $14.9 million.

Virtually all of this increase can be attributed to imports from Taiwan, which

increased from $8.8 million to $12.7 million in this period. Much of this

increase is believed to be waterbed mattresses and liners.

Imports of waterbed mattresses and liners are estimated at between $10

million and $15 million in 1982, up from virtually nothing in 1978, with

practically all these imports entering duty free from Taiwan and Mexico.

Waterbed mattress production is a labor intensive process, and the quality of

U.S.-produced and imported mattresses is essentially equal. However, the low

costs of labor in most countries with GSP eligibility enables them to produce

mattresses and liners and sell them in the United States at prices

approximately 25 to 30 percent lower than those of the domestic products. To

1/ Prior to Jan. 1, 1980, imports of furniture of rubber and plastics for civil aircraft were combined with imports of other furniture of the same material.

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7

Digest No. B701--Con.

combat import competition, some U.S. manufacturers have transferred their

operations to less developed countries where low cost labor is more plentiful;

others are reportedly considering such a move.

U.S. imports of mattresses for the period 1978-82 have fluctuated with an

overall decrease of 25 percent, falling from $321,000 in 1978 to $240,000 in

1982. Canada, Taiwan, and Sweden were the principal sources (table C-3). The

high costs associated with transportion of these articles, as well as the

state of the U.S. economy, have affected the level of imports. Imports have

increased sharply in the first six months of 1983 over the same period in

1982, rising from $92,000 to $236,000, which reflected the improved U.S.

market for home furnishings. GSP imports of mattresses increased from $17,000

in 1978 to $64,000 in 1982 (table C-4) and accounted for 27 percent of total

imports in 1982. Taiwan and Guatemala were the principal sources of such

imports. GSP imports for the first half of 1983 increased to $67,000 from

$24,000 for the corresponding period of a year earlier, with the bulk of this

increase from Taiwan.

Position of interested parties

The Waterbed Manufacturers Association, located in Los Angeles, California,

has submitted a petition to the GSP .subcommittee asking that furniture of

rubber and plastics, n.s.p.f., TSUS item 727.50, be removed from eligibility

for GSP. The Association also included TSUS item 727.8630 in its petition

since waterbed mattresses and liners had previously been classified under

this provision. Because of the aforementioned Customs letter, waterbed

mattresses and liners are no longer classified under item 727.8630. The

Association is concerned about increasing imports and fears that in order to

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8

Digest No. 13701—Con.

compete with countries with lower wage rates, such as Taiwan and Mexico, most

U.S. manufacturers will either move offshore or be forced out of business.

General Foam Plastics Corporation (GFPC), located in Richmond, VA., also

submitted a petition to the subcommittee which was received from USTR asking

that TSUS item 727.50 be removed from GSP eligibility because imports of

products they manufacture, polyvinylchloride (PVC) furniture, are classified

under this number. Because item 727.50 is a basket provision and contains all

furniture of rubber or plastics, it is not possible to determine separately

the value of imports of this type of furniture. GFPC alleges that because of

competition from imports their profit margin on this furniture is non-existent.

Manufacturers from the Republic of Taiwan argued that their imported

product is in fact more expensive and of higher quality than the domestic

product. Also, imports from Taiwan for these products are well below the

fifty percent competitive need limit.

A domestic manufacturer in the Los Angeles area, Monterey Manufacturing

Company, which had recently acquired a factory in Mexico argued in favor of

graduating GSP eligibility for Taiwan, but against removal of eligibility for

Mexico. The major share of recent increases in GSP imports has come from

Taiwan, and Mexico's economic problems are far more severe. Also, Mexican

facilities utilize U.S. materials and benefit U.S. industry by providing jobs

for U.S. suppliers, while Taiwanese firms use only foreign materials and

foreign capital.

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Digest No. B701--Con.

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10

Digest No. B701--Con.

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11 •

Digest No. B701--Con.

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12

Digest No. B701--Con.

Table A-1.--Furniture of rubber or plastics, n.s.p.f.: U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982 and January-June 1983

(Thousands of dollars)

Period . : Production

: :

. Exports ' • . :

Imports : :

Apparent Consumption

: Ratio (per- : cent) of : imports to : consumption

1978 : 1/ : 2,369 :2/ 40,010 : 1/ 1/ 1979 : 1/ 2,047 :2/ 38,009 : 1/ 1/ 1980 : 1/ 2,356 : 31,355 : 1/ 1/ 1981 : 1/ : 3,883 : 38,932 : 1/ 1/ 1982 : 1/ 5,846 : 37,118 : 1/ 1/ January-June: : :

1982--- : 1/ : 2,434 : 21,215 : 1/ 1/ 1983 : 1/ 1,057 : 25,219 : 1/ 1/

1/ Not available. 2/ Prior to 1980, imports of furniture and parts of rubber and plastics,

n.s.p.f., were combined with imports of furniture for civil aircraft of the same materials.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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Digest No. B701--Con.

Table A-2.--Mattresses of noncotton materials: U.S. production, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82 and January-June 1982 and January-June 1983

(Thousands of dollars)

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Apparent Consumption

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imports to consumption

• : 1978 : 651,549 : 4,891 : 321 : 646,979 : 3/ 1979 : 688,375 : 6,330 : 577 : 682,622 : 3/ 1980 : 585,815 : 7,051 : 447 : 593,313 : 3/ 1981—r : 426,877 : 7,945 : 364 : 419,296 : 3/ 1982---- : 730,000 : 9,910 : . 240 : 720,330 : 3/ January- :

June-- : 1982 : 370,000 : 4,948 : 92 : 365,144 : 3/ 1983 : 400,000 : 2,798 : 236 : 397,438 : 3/

1/ Estimated. 2/ Includes mattresses of all materials. 3/ Less than 1 percent.

Source: Compiled from official statistics of the U.S. Department of Commerce.

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16

Digest No. B701--Con.

Table C-1.--Furniture and parts of rubber or plastics, n.s.p.f.: U.S. imports for consumption, by principal sources, 1978-82, January-June 1982 and January-June 1983

(Thousands of dollars)

Country 1978 1/' 1979 1/' . 1980 1981 1982 January-June--

1982 ! 1983

• Taiwan- : 18,080 : 17,480 : 10,484 : 11,959 : 14,242 : 8,914 : 12,817 Canada- : 6,282 : 8,068 :• 9,703 : 15,143 : 10,476 : 6,069 : 3,106 Mexico : 1,915 : 2,351 : 2,436 : 3,171 : 2,992 : 1,358 : 1,891 Italy : 4,216 : 4,725 : 3,834 : 2,626 : 2,898 : 1,425 : 1,587 F.R. Germany : 1,394 : 966 : 1,015 : 2,497 : 2,261 : 703 : 1,858 France : 672 : 964 : 1,021 : 1,249 : 2,136 : 1,556 : 2,412 Switzerland : 250 : 242 : 278 : 317 : 439 : 172 : 200 Austria : 116 : 109 : 355 : 423 : 268 : 139 : 188 All other : 7,085 : 3,104 : 2,229 : 1,547 : 1,406 : 879 : 1,160

Total : 40,010 : 38,009 : 31,355 : 38,932 : 37,118 : 21,215 : 25,219

1/ Prior to 1980, imports of furniture and parts of rubber or plastics were combined with imports of furniture for civil aircraft of the same materials.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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Country • 1978 1/' 1979 1/ . 1980 • 1981 • 1982 •

_ • • 1982 ! 1983

.

Taiwan : 17,925 : 17,363 : 10,435 : 11,812 : 14,062 : 8,802 : 12,697 Mexico : 1,753 : 1,949 : 2,117 : 2,830 : 2,899 : 1,348 : 1,794 Israel : 52 : 75 : 77 : 34 : 114 : 108 : 227 Hong Kong : 121 : 37 : 61 : 79 : 93 : 60 : 57 Korea : 3,187 : 1,248 : 605 : 42 : 13 : 9 : 30 Haiti : - : - : 1 : 20 : 10 : 10 : - Portugal : - : 2/ : - : - : 1 : - : 48 Tailand-- : 8 : 2 : - : - : 1 : 1 : - All other : 32 : 7 : 13 : 134 : 2 : 1 : 7

Total : 23,078 : 20,681 : 13,308 : 14,951 : 17,195 : 10,339 : 14,860

January-June-- . •

17

Digest No. 8701--Con.

Table C-2.--Furniture and parts of rubber or plastics, n.s.p.f.: U.S. imports for consumption under the GSP, 1978-82, January-June 1982 and January-June 1983

(Thousands of dollars)

1/ Prior to 1980, imports of furniture and parts of rubber or plastics were combined with imports of furniture for civil aircraft of the same materials.

2/ Less than 500.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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Digest No. B701--Con.

Table C-3.--Mattresses of noncotton materials: U.S. imports for consumption, by principal sources, 1978-82, January-June 1982, and January-June 1983

(Thousands of dollars)

Country 1978 • 1979 ' 1980 • 1981 • •

January-June-- • 1982

• 1982 1983

Canada : 130 : 434 : 239 : 214 : 81 : 49 : 90 Taiwan : 10 : 1 : 30 : 44 : 38 : 21 : 56 Sweden : 2 : 5 : 27 : 8 : 33 : 4 : 16 Japan : 111 : 79 : 89 : 34 : 20 : 4 : 31 Italy : 30 : 24 : 11 : 7 : 19 : 6 : 7 Mexico : 1 : 2 : 5 : 1/ : 7 : - : 4 United : • . : • .

Kingdom : 4: 7: 5: 2: 5: 1: 1 Denmark : 14 : 9 : 11 : 4 : 5 : 1 : 3 All other : 19 : 16 : 30 : 51 : 32 : 6 : 28

Total : 321 : 577 : 447 : 364 : 240 : 92 : 236

1/ Less than $500.

Source: Compiled from official statistics of the U.S. Department of Commerce.

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19

Digest No. B701--Con.

Table C-4.--Mattresses of noncotton materials: U.S. imports for consumption under the GSP, 1978-82, January-June 1982, and January-June 1983

(Thousands of dollars) . :

: Country

• 1978

. . 1979

• 1980 '

: :

1981 :

• January-June-- 1982

1982' 1983

Taiwan : 10 : 1 : 30 : 44 : 38 : 22 : 56 Guatemala : - : - : - : - : 14 : - : Mexico : 1 : 1 : 3 : 1/ : 7 : - : 3 Dominican : : :

Republic : - : - : - : . .5 : 3 : - : 3 Yugoslavia : 4 : 4 : 2 : - : 2 : 2 : - All other : 2 : S : 3 : 11.5 : - : - : 5

Total : 17 : 11 : 38 : 56 : 64 : 24 : 67

1/ Less than $500.

Source: Compiled from official statistics of the U.S. Department of Commerce.

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2

Digest No. B703--Con.

II. Comments

Description and uses

A fishing reel is attached to a fishing rod shaft near the handle. The

reel serves to store the fishing line, to cast the line, and to play a hooked

fish. In general, there are six kinds of reels. For the most part, a reel is

matched with a corresponding fishing rod designed for a specific type of

fishing.

Bait-casting reels.--Bait-casting reels use a revolving spool that is

mounted on the top of a rod handle. They are available in a variety of

designs and sizes, and while used in saltwater fishing, find their principal

use in freshwater fishing; many incorporate a "level wind" mechanism, which

guides the line onto the reel as it is rewound.

Spin-casting reels.--Though designed for spin-casting rods, spin-casting

reels can be used with other kinds of rods, usually bait-casting rods. They

are usually mounted on top of a rod and have a hood or front cover that houses

the line and stationary spool. The line is released from the spool by

depressing a lever or button.

Spinning reels.--Since the line and spool are exposed at the front of the

reel, the spinning reel is frequently referred to as an open face reel.

Spinning reels are mounted under the rod and, like other reels, are produced

in various designs, capacities, and quality. They are used equally in both

freshwater and salfwater fishing.

Fly reels.--There are two types of fly reels--single action and

automatic. The user must turn the reel handle to retrieve the line with a

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3

Digest No. • B703--Con.

single action, whereas with an automatic, he merely trips a trigger which

releases spring tension that revolves the reel spool and respools the line. A

fly reel is mounted underneath and behind the handle.

Saltwater reels.--These are many types of saltwater reels; there are

reels for surf fishing, boat and bay fishing, light trolling, reels with wide

and narrow spools, and reels for 'big game' fishing. However, saltwater reels

do have some common characteristics such as sturdy construction, strong drags,

and capacity to hold hundreds of yards of heavy-test line.

Specialty reels.--Specialty reels include those designed for trolling

with wire line, ultra-deep fishing with wire line, built in reels that are an

integral part of the rod, reels designed specifically for still fishing and

ice fishing, and spin-casting reels designed especially for under-the-rod use.

Of the types of reels described above, only spinning and spin-casting

reels are imported with a dutiable value not over $2.70 each. In 1977,

spin-casting reels accounted for *** 1/ percent of U.S. producers' shipments

of all reels to the domestic market, whereas spinning reels accounted for

62 percent of total reel imports. 2/

U.S. customs treatment •

Imported fishing reels are classified according to their dutiable value.

Those reels valued not over $2.70 each enter under TSUS item 731.20; those

valued over $2.70 but not over $8.45 each enter under item 731.22; and those

2/ Data compiled from responses to questionnaires of the U.S. International Trade Commission.

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4

Digest No. B703--Con.

valued over $8.45 each enter under item 731.24. All three categories of

fishing reels were on the President's initial list of articles eligible for

duty-free treatment under the Generalized System of Preferences (GSP) in

1976. Imports from the Republic of Korea under item 731.20 exceeded the

competitive need criteria in 1980 and Korea was taken off the list of

beneficiary countries for that item in March 1981. However, Korea was

reinstated as a beneficiary country in April 1982. Item 731.22 was removed

from the list of articles eligible for the GSP in March 1980.

U.S. producers and employment

There were 8 domestic producers of fishing reels in 1977. According to

questionnaires of the U.S. International Trade Commission in connection with

its Investigation No. TA-201-34 on Certain Fishing Tackle, * * *

Since 1977, at least five of these firms have closed

their U.S. fishing reel factories and now source their reels from Korea,

Taiwan, and Hong Kong. The spin-casting reels manufactured by one U.S.

producer are currently the only U.S.-made reels which compete directly with

reels imported at a value of not more than $2.70 each on the basis of price.

Total employment in the U.S. fishing reel industry amounted to 1,294 in

1977, with 998 being production and related workers. The number of workers

engaged in the production of the spin-casting reels which compete directly

with imported reels valued not over $2.70 each was fairly stable during

1978-81, * * *

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Digest No. B703--Con.

U.S. consumption and production

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6

Digest No. B703--Con.

U.S. exports

There is believed to be only one U.S. exporter of low-valued fishing

reels. Whereas total U.S. exports of reels decreased each year during

1978-82, by a total of 61 percent, from 338 thousand reels to 128 thousand

reels, exports of low-valued reels averaged * * *

A

portion of U.S. exports include spin-casting reels that have been attached to

solid-glass spin-casting rods.

U.S. imports

U.S. imports of all fishing reels rose by 45 percent during 1978-82, from

7.2 million reels to 10.4 million reels (table C-1). The increase in value

was from $44.3 million to $71.1 million. U.S. imports of fishing reels valued

not over $2.70 each grew at a faster rate than total imports, expanding by 62

percent during 1978-82, from 1.9 million reels to 3.2 million reels (table

C-2). The value increased from $3.1 million to $5.4 million. The growth in

imports of low-valued reels by 1.3 million units during 1980-82, accounted for

* * *

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Digest No. B703--Con.

Although Japan increased its share of the value of total U.S. fishing

reel imports from 51 percent to 59 percent during 1978-82, its share of the

value of imports of reels valued not over $2.70 each fell from 46 percent to

4 percent. The three countries which utilized the GSP while exporting

low-valued reels to the United States, Korea, Taiwan, and Hong Kong, increased

their collective share of the value of total imports under item 731.20 from 54

percent in 1978, to 79 percent in 1982, and 93 percent in the first 6 months

of 1983 (table C-2).

Imports of all fishing reels under the GSP peaked at 2.6 million reels in

1979 before middle-valued reels were removed from the list of GSP eligible

articles in April 1980 and before Korea lost beneficiary country status for

low-valued reels from March 1981 to April 1982 (table C-3). Imports under the

GSP accounted for 31 percent of the quantity of total fishing reel imports in

1978, 20 percent in 1982, and 25 percent during January-June 1983.

GSP imports were much more influential in the low-valued reel category.

There, GSP imports rose by 71 percent during 1978-82, from 1.1 million reels

to 1.9 million reels (table C-4). GSP imports in the first 6 months of 1983

were 70 percent larger than in the first half of 1982. Duty-free imports

under the GSP accounted for 57 percent of the quantity of imports of fishing

reels valued not over $2.70 each in 1978, 61 percent in 1982, and 89 percent

in the first half of 1983.

The ratio of imports to consumption of low-valued fishing reels was

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8

Digest No. B703--Con.

* * *

The average wholesale price of low-valued fishing reels produced in the

United States rose by * * * •

whereas the average customs value of comparable imports increased by only

10 percent, from $1.57 to $1.72, adding to the price advantage of the imported

product.

A principal factor which raised the volume of imports of low-valued reels

under the GSP in 1982 and 1983 was the return of Korea to the status of a

beneficiary developing country in April 1982. Loss of beneficiary country

status after 3 months of 1981 led to a 22-percent reduction in total imports

from Korea in 1981 compared with 1980. Return of status after 3 months in

1982 brought an 11-percent rise in imports from Korea in 1982 over the 1980

level. In the first half of 1983, imports from Korea were 57 percent greater

than the comparable period of 1982.

Another important factor stimulating GSP imports from Korea, Taiwan, and

Hong Kong during 1978-82 has been the closure of some fishing reel production

operations in the United States, Japan, and Sweden by large fishing tackle

companies in favor of either setting up factories in the former countries or

having reels made there under the companies' brand names. Fishing reels are a

relatively labor intensive product, giving Korea, Taiwan, and Hong Kong an

advantage over countries with higher labor rates. According to information

obtained from questionnaries in the U.S. International Trade Commission's

Investigation No. TA-201-34 on Certain Fishing Tackle, 59 percent of all

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9

Digest No. B703--Con.

imported reels in 1977 were purchased by domestic fishing tackle manufacturers,

chiefly fishing rod producers. Since one of the largest U.S. rod producers

has closed its reel factories and now imports reels from Hong Kong, this

percentage is certain to have increased.

During August 1981 to May 1982, 1,047,250 low-valued fishing reels (3

models of spin-casting reels) were assembled in Mexico from U.S. components

and imported under the provisions of TSUS item 807.00. These imports from

Mexico accounted for 17 percent of total imports under TSUS item 731.20 in

1981 and 22 percent in 1982. The closing of the foreign assembly operation

was chiefly responsible for the reduction in imports under item 731.20 in the

first half of 1983 compared with January-June 1982 (table C-2).

Position of interested parties

Zebco Division of Brunswick Corporation, as the only remaining U.S.

producer of fishing reels valued not over $2.70 each, favors removal of TSUS

item 731.20 from the list of articles eligible for GSP treatment. Failing

that, Zebco has petitioned for the removal of Korea, Taiwan, and Hong Kong from

the list of beneficiary developing countries with regard to TSUS item 731.20.

Zebco contends that the additional price advantage afforded to imports from

Korea, Taiwan, and Hong Kong through the GSP has forced other domestic manufac-

turers of low-valued fishing reels to cease production, sourcing from the

Orient instead. With the advantage of lower prices and the benefit of brand

names which fishing tackle customers associate with domestic tackle producers,

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10

Digest No. B703--Con.

imports from Korea, Taiwan, and Hong Kong have taken substantial market share

away from Zebco. Zebco alleges that imports under the GSP are the principal

cause of reduced production, employment, and profitability on its low-valued

reel operations. Zebco asserts that if TSUS item 731.20 is not removed from

the list of articles eligible for GSP treatment or if Korea, Taiwan, and Hong

Kong are not removed from the list of beneficiary developing countries for

item 731.20, Zebco will no longer be able to compete in the market for

low-valued reels.

Zebco further contends that the goal of the GSP program--encouraging the

development of labor intensive manufacturing operations in developing

nations--has been accomplished in Korea, Taiwan, and Hong Kong through the

infusion of capital and technology from Japan, the United States, and Sweden.

Therefore, these countries no longer need the duty advantages offered by the

GSP to compete effectively in world markets. Zebco also proffers that if

duty-free treatment is no longer available for item 731.20, importers and/or

foreign manufacturers will probably absorb the duty increase so U.S. consumers

would not be affected. Zebco would benefit because U.S. importers would have

less profit available to direct towards adverstising and promotion and/or

foreign manufacturers would have less funding available for innovation and

development expenses.

Daiwa Corporation (a Japanese fishing tackle producer which manufactures

low valued fishing reels in Korea), the Korean Plastics Goods Exporters

Association, and the Board of Foreign Trade for the Republic of China on

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11

Digest No. B703--Con.

Taiwan each submitted written briefs and gave oral testimony opposing the

removal of GSP eligibility for TSUS item 731.20

Daiwa Corporation alleges that the domestic industry producing fishing

reels is not sensitive because conditions have not changed since 1978 when the

Commission determined that imports of fishing reels were not increasing in

such increased quantities as to be a substantial cause of serious injury, or

threat thereof, to the domestic industry producing fishing reels (USITC

Investigation No. TA-201-34). Daiwa asserts that Zebco's 64 percent share of

the domestic spincast reel market precludes it from being injured by imports

under item 731.20. It adds that U.S. firms which have ceased producing

fishing reels did so prior to 1978. It contends that imports under item

731.20 are decreasing because they totaled less in the 5-year period 1978-82

than in the period 1973-77. Daiwa explains that an increase in imports from

GSP eligible countries has been offset by a decrease in imports from Japan,

meaning that Zebco has not lost market share to imports during 1978-82. It

further claims that loss of GSP for item 731.20 will result in higher prices

to the consumer for Zebco's reels as well as imported reels.

The Korean Plastics Goods Exporters Association argues that conditions

have not changed substantially since the Commission determined in 1978 that

imports were not the cause of infury to the domestic fishing reel industry.

Further, it argues that Zebco has been able to maintain its market share of

between 60 and 75 percent for spin-cast reels since that time. The increased

share of the U.S. market held by GSP beneficiaries has come at the expense of

Japan rather than Zebco. Also, elimination of GSP treatment for item 731.20

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12

Digest No. B703--Con.

would defeat the purpose of the GSP program, since an increase in imports from

Japan would result.

The Board of Foreign Trade for the Republic of China argued that Taiwan

has never exceeded the competitive need limit for item 731.20 and Taiwan's

share of total imports declined during 1979-82.

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Digest No. B703--Con.

* * *

*

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14

Digest No. B703--Con.

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15 .

Digest No. B703--Con.

Table A.--Fishing reels valued not over $2.70 each: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousands of reels; value in thousands of dollars; unit value in dollars per reel)

Period

: : : Ratio (per-

: Producers' : Exports : Imports : Apparent : cent) of

: shipments • : : consumption : imports to • : : consumption

Quantity

• •

1978 *** *** 1,950 : *** *** 1979 *** *** 1,728 : *** *** 1980 *** *** 1,860 : *** *** 1981 *** *** 2,182 : *** *** 1982 *** *** 3,158 *** *** January-June: :

1982 *** *** 1,809 : *** *** 1983 *** *** 1,412 : *** ***

Value

1978 *** *** 3,068 : *** *** 1979 *** *** 2,632 : *** *** 1980 *** *** 3,369 : *** *** 1981 *** *** 3,843 : *** *** 1982 *** *** 5;423 : *** *** January-June: :

1982 *** *** 3,069 : *** *** 1983 *** *** 2,741 : *** ***

Unit value

1978 *** *** $1.57 : *** 1979 *** *** 1.52 : *** 1980 *** *** 1.81 : *** 1981 *** *** 1.76 : *** 1982 *** *** 1.72 : *** January-June:

1982 *** *** 1.70 : *** 1983 *** *** 1.94 : ***

Source: Compiled from official statistics of the U.S. Department of Commerce and industry sources, except as noted.

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January-June

by principal markets,

1978-82,

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Page 250: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

982, and

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Page 251: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 253: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 254: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 256: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

N 00 0, 1-1

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Page 257: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. C-501--Con.

II. Comments

Description and uses

This digest covers those glass containers (with , or without their closures

and whether or not coated with plastics materials) designed for the packing,

transporting, or marketing of merchandise other than perfume or other toilet

preparations, and includes narrow neck and wide mouth glass food containers

and refillable beverage containers. These containers can also be used for

home canning and preserving. For TSUS classification purposes, these

containers come in three sizes: holding not over 1/4 pint (item 545.21);

holding over 1/4 pint but not over 1 pint (item 545.25); and holding over 1

pint (item 545.27). These glass containers are principally used to hold

beverages, foods, drugs and medicines, and household and industrial chemicals.

The major portion of these glass containers are manufactured by

continuous, automatic processing machines which press and blow molten glass

into glass container molds of various shapes and sizes. The containers can

then be decorated, sandblasted, polished, or annealed in secondary treatments.

U.S. customs treatment

The three TSUS items covered in this digest have been eligible for

duty-free treatment under GSP since its inception in 1976. Since that time,

no eligible countries have been excluded.

U.S. producers and employment

There are approximately 18 glass container producers operating about 110

plants in 30 states. The 12 largest companies manufacture nearly 80 percent

of the glass containers produced in the United States. Glass plants in New

Jersey, California, Illinois, Pennsylvania, and Indiana accounted for

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3

Digest No. C501--Con.

approximately 58 percent of industry shipments in 1982. Total employment in

the U.S. glass container industry in 1982 was 61,000 workers, 54,000 of which

were production and related workers. This industry is considered to be

localized, generally serving area markets due to high shipping costs.

U.S. consumption and shipments

Estimated apparent U.S. consumption of certain glass containers

fluctuated in a narrow range during 1978-82, rising from 306 million gross

($3.9 billion) in 1978 to 313 million gross ($4.4 billion) in 1980 and then

declining to 301 million gross ($4.9 billion) in 1982 (table A). U.S. imports

of certain glass containers accounted for 1 percent or less of apparent U.S.

consumption during the period. The high weight to value ratio of glass

containers discourages long-distance shipment of these items. As a result,

estimated U.S. producers' shipments are approximately the same in units and

value as apparent U.S. consumption. The decline in apparent consumption and

producers' shipments is attributed to the economic slowdown and intense

competition with substitute articles, particularly plastics.

U.S. exports

During 1978-82, estimated U.S. exports of certain glass containers

accounted for 1 percent or less of U.S. producers' shipments primarily due to

high transportation costs and the localized nature of the market. U.S.

exports rose to 1.7 million gross ($30 million) in 1980 from 1.4 million gross

($22 million) in 1978 (table B). U.S. exports then declined during 1981-82 to

1.3 million gross ($32 million).

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Digest No. C501--Con.

Canada was the principal market for U.S. exports, accounting for 40

percent of this total in 1982. Jamaica and Venezuela were secondary export

markets.

U.S. imports

U.S. imports of certain glass containers rose gradually from about 1

million gross in 1978-79 ($14-16 million) to 3 million gross ($54 million) in

1982, a 200-percent increase (table C). During January-June 1983, U.S.

imports totaled 3.3 million gross ($29 million), up 136 percent from the

corresponding period of 1982 (1.4 million gross, valued at $28 million) and

surpassing total U.S. imports in all of 1982. The principal U.S. supplier in

1982 was Canada, with 74 percent of U.S. imports. Mexico and France were

secondary sources of supply.

The level of U.S. imports from GSP countries varied during 1978-82,

rising from 80,000 gross ($1.5 million) in 1978 to 117,000 gross ($1.3

million) in 1979 before falling to 63,000 gross ($1.3 million) in 1980 (table

D). These imports then increased roughly five-fold to 303,000 gross ($4.5

million) in 1982, approximately 10 percent of total U.S. imports of these

products. During the first six months of 1983, U.S. imports from GSP

countries totaled 895,000 gross ($5.2 million), compared to 74,000 gross ($1.2

million) during the corresponding period of 1982. About 27 percent of total

imports for January-June 1983 was accounted for by imports from GSP

countries.

Mexico was the principal GSP source of these imports, accounting for 53

percent of total imports from GSP countries in 1982. During January-June

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5

Digest No. C-501--Con:

1983, imports from Mexico accounted for nearly 90 percent of GSP imports,

compared to 22 percent during January-June 1982.

Due to the prohibitive cost of transporting empty glass containers, most

trade in this market is limited to border trade with Canada and Mexico.

Generally, imports from these countries most seriously affect the domestic

glass container plants that serve the border area markets. Both the foreign

and domestic glass containers are of like quality and end-use, and a

significant price differential is generally the determining factor when

purchasing the merchandise. As an example, the unit value per gross for

imports from Mexico was $14.30 in 1982; the estimated unit value for

comparable U.S. products was $16.33 (based upon data in tables A and C).

Position of interested parties

The Glass Packaging Institute, the petitioner, which represents a

majority of U.S. glass container producers, testified in favor of GSP

graduation of Mexico, citing the import-sensitivity of the glass industry,

injury to the U.S. industry, and the threat of further injury if GSP treatment

for Mexico continues.

The principal Mexican producer of these products, Vitro Envases, and the

major U.S. importer testified in opposition to GSP graduation of Mexico,

stating that the low level of glass container imports could have no effect on

the U.S. industry which is in good health. Further it would provide benefits

to the U.S. consumer.

Vitro Envases testified that there was a problem of misclassified imports

of certain glass containers into TSUS provisions subject to this GSP

investigation (545.21-.27) and asserted that about 75 percent of these imported

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6

Digest No. C-501--Con.

items would be more appropriately classified in TSUS provisions for containers

used for perfume or toilet preparations. 1/ '

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7

Digest No. C501--Con.

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8

Digest No. C501--Con.

* * *

Page 264: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

Digest No. C501--Con.

Table A.--Certain glass containers: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousand ross• value in thousands of dollars) :

Period ' Producers ' shipments

1/

' ' Exports 1/

• .

:

:

Imports

:

: Apparent consumption

cent) of

: : : • .

Ratio (per-

imports to consumption

Quantity

: : : • . : 1978 : 306,044 : 1,388 : 1,098 : 305,754 : 2/ 1979 : 309,069 : 1,567 : 1,044 : 308,546 : 2/ 1980 : 313,689 : 1,689 : 1,440 : 313,440 : 2/ 1981 : 311,371 : 1,340 : 2,563 : 312,594 : 1 1982 : 299,000 : 1,328 : 3,022 : 300,694 : 1 January-June: : : : :

1982 : 157,500 : 676 : 1,435 : 158,259 : 1 1983 : 3/ : 617 : 3,314 : 3/ : 3/

Value

1978 : 3,888,335 : 22,328 : 13,779 : 3,879,786 : 2/ 1979 : 4,076,673 : 27,439 : 16,493 : 4,065,727 : 2/ 1980 : 4,379,008 : 30,161 : 24,261 : 4,373,108 : 1 1981 : 4,760,550 : 33,160 : 44,101 : 4,771,491 : 1 1982 : 4,882,066 : ,'31,713 : 54,117 : 4,904,470 : 1 January-June: : : : : :

1982 : 3/ : 16,525 : 28,207 : 3/ : 3/ 1983 : 3/ : 14,429 : 28,888 : 3/ : 3/

1/ Estimated by staff of the U.S. International Trade Commission. 2/ Less than .005 percent. 3/ Not available.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

Page 265: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

1 0

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Page 266: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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12

Digest No. C501--Con.

Table D.--Certain glass containers: U.S. imports for consumption under the GSP, by principal GSP sources, 1978-82, January-June 1982, and January-June 1983

(Quantity in thousand gross; value in thousands of dollars) : : • . • . •

January-June--

Source' 1978 • 1979 • 1980 • 1981 • 1982 • : .

' . •

. • 1982 1983

• • • • : . . .

Quantity

Mexico- : 10 : 6 : 5 : 14 : 162 : 16 : 801 Taiwan--- : 69 : 110 : 53 : 42 : 40 : 16 : 44 Guatemala : 0 : 0 : 1 : 15 : 27 : 11 : 5 Panama : 0 : 0 : 0 : 4 : 21 : 1 : 20 All other : 1 : 1 : 4 : 55 : 53 : 30 : 25

Total : 80 : 117 : 63 : 130 : 303 : 74 : 895

Value

Mexico : 923 : 732 : 745 : 1,139 : 2,874 : 656 : 4,248 Taiwan : 605 : 573 : 494 : 393.: 264 : 118 : 167 Guatemala : - : - : 17 : 231 : 465 : 174 : 61 Panama : - : - : - : 78 : 516 : 84 : 490 All other : 17 : 30 : 69 : 414 : 392 : 197 : 200

Total : 1,545 : 1,335 : 1,325 : 2,255 : 4,511 : 1,229 : 5,166

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

Page 268: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

TITLE: Porcela

in-on

-ste

el cooking and kit

che

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Taiw

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item numbe

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Page 269: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

2

Digest No. • C601--Con.

II. Comments

Description and uses

The products covered by this digest are porcelain coated cooking and

kitchen ware of steel (teakettles, pots, pans, skillets, roasters, and similar

articles), not having self-contained electrical elements. These consumer

products, which are commonly referred to as porcelain-on-steel cooking and

kitchen ware, are widely used in many households and food preparation

institutions.

U.S. customs treatment

Porcelain-on-steel cooking and kitchen ware is provided for in item nos.

654.0215(pt.), 654.0224, 654.0227, and 654.0228(pt.) of the Tariff Schedules

of the United States Annotated (TSUSA). 1/

The current column 1 or most-favored-nation (MFN) rate is 3.1 percent ad

valorem. The rate which is applicable to such imports from least developed

developing countries (LDDC) is 2.7 percent ad valorem, and the column 2 rate

which is applicable to imports from Communist countries is 35.5 percent ad

valorem.

On January 16, 1980, Presidential Proclamation 4713 provided for a

separate statistical breakout for porcelain-on-steel cooking ware valued not

over $2.25 per pound. The rate of duty for imports of these products was

temporarily modified under item 923.60 of the appendix to the TSUS to provide

for additional duties of 20 cents per pound effective on or after

1/ Although statistical provisions 654.0215 and 654.0228 include cooking and kitchen ware of iron or steel, those products of iron are helieved to account for less than 5 percent of total imports.

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January 17, 1980. These additional duties were reduced to 15 cents per pound

on January 17, 1982, and to 10 cents per pound on January 17,

1983. 1/

Import relief is scheduled to terminate at the close of January 16, 1984,

unless extended by the President. . During the period of import relief,

eligibility under the Generalized System of Preferences and under the LDDC

provisions is suspended on porcelain-on-steel cooking ware imported under item

654.0224.

U.S. producers and employment

Since 1978 there has been only one U.S. preducer of porcelain-on-steel

cooking and kitchen ware.

U.S. consumption and Production

*

1/ The total duty collected on VFN imports may not exceed 53.3 percent ad valorem. The column 2 rate may not be less than the applicable VFN rate assessed under that item; i.e., it may vary from 35.5 percent to 53.3 percent ad valorem.

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Digest No. C601--Con.

U.S. exports

U.S. exports of porcelain-on-steel cooking and kitchen ware followed the

same irregular trend of shipments during 1978-82, declining from 2 million

units ($3 million) in 1978 to 1 million units ($4 million) in 1982 (table B).

Based on quantity, exports to Canada accounted for 60 percent of total U.S.

exports of porcelain-on-steel cooking and kitchen ware during 1982.

U.S. imports

U.S. imports of porcelain-on-steel cooking and kitchen ware declined from

21 million units ($44 million) in 1978 to 10 million units ($27 million) in

1981. During 1982, such imports increased to 13 million units which were

valued at ($42 million) (table C).

Based on quantity, the ratio of imports to apparent consumption declined

from 75 percent in 1978 to 59 percent in 1981, before increasing 6 percentage

points to 65 percent in 1982. Japan, Taiwan, Spain, and Mexico, together,

accounted for approximately 85 percent of the quantity of total U.S. imports

in 1982.

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Digest No. C601--Con.

The composition of U.S. imports varied considerably among the major

foreign sources. Imports from Spain and Taiwan consisted primarily of

low-priced (valued not over $2.25 per pound) multi-piece fashion sets. These

imports compete with the products of the U.S. producer on the basis of quality

and price, often undercutting the moderatly priced lines of the domestic

producer. The bulk of the imports from Japan (valued over $2.25 per pound) do

not compete directly with U.S. cooking and kitchen ware, since these products

are not manufactured in the United States.

U.S. imports of porcelain-on-steel cooking and kitchen ware from GSP

countries declined from 9 million units ($11 million) in 1978 to 2 million

units ($5 million) in 1982, or by 78 percent (table D). Imports from Taiwan,

the major source of imports under the GSP during the last five years, declined

from 3 million units ($5 million) in 1978 to 449,000 units ($1 million) in

1980. During 1980-82, imports from Taiwan increased about 100 percent,

totaling 903,000 units ($4 million) in 1982.

The lower levels of imports during 1980-82, as compared to imports during

1978-79, can be partially attributed to the import relief that went into

effect on imports of cooking ware of steel, valued not over $2.25 per pound

(item 654.0224) and the suspension of GSP eligibility for that item.

Position of interested parties

The petitoner, General Housewares Corporation, requests the removal of

GSP status on porcelain-on-steel cooking and kitchen ware (TSUS 654.02 pt),

for Taiwan. General Housewares Corporation asserts that the Taiwanese

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Digest No. C601--Con,

producers are internationally competitive and have been successful in the U.S.

market, increasing the volume of sales despite import relief imposed in 1980.

The domestic producer further contends that Taiwanese prices have been reduced

specifically to undersell a domestic product which was competitively priced.

While precise figures were not presented for the Taiwanese product lines, in

this particular instance, the Taiwanese dropped their price approximately 25%

immediately after the introduction of a new line by the domestic producer

designed to compete with Taiwanese products.

Counsel for the Board of Foreign Trade, Republic of China on Taiwan,

testified in opposition that GHC has in fact improved its financial condition,

with increases in net income and a 25 percent sales gain in the second quarter

of 1983. GHC has also recently imported some products that GHC does not

produce themselves, and the argument was made that the company was using GSP

review to gain competitive advantage for its own source of imports.

A separate statement submitted on behalf of M. Kamenstein, Inc. urged

that enamelware teakettles from Taiwan not be removed from GSP eligibility.

The company argued that the domestic industry does not need protection from

duty-free imports as it has expanded and modernized its production facilities

for teakettles. The statement also argued that Taiwan needs GSP status in

order to maintain its competitive edge against Japan, the number one producer

of teakettles imported into the U.S. market. Finally, the statement points

out that removal of GSP would not spur development in less-developed GSP

countries, pointing out that Mexico, the principal GSP competitor in

teakettles, produces a product not directly competitive with those of Taiwan.

Taiwan's GSP status is, therefore, not restraining Mexico's growth.

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Digest No. C601--Con.

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Digest No. C601--Con.

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Table A.--Porcelain-on-steel cooking and kitchen ware: U.S. shipments, exports, imports, apparent consumption, 1978-82, January-June 1982, and January-June 1983 '

uantit in thousands of units• value in thousands of dollars

Period *Shipments 1/ • - .

Ratio (per- Apparent cent) of

Exports :Imports 2/: consumption ;mports to •

: consumption

Quantity

• 1978 *** 1,808 : 21,052 : *** *** 1979 *** 2,235 : 18,352 : *** *** 1980 *** 1,995 : 11,388 : *** *** 1981 *** 2,147 : 10,340 : *** *** 1982 *** 1,477 : 12,890 : *** *** January-June :

1982 *** 824 : 5,407 : *** *** 1983 *** 1,077 : 8,616 : *** ***

Value

1978 : *** : 2,932 : 43,513 : *** *** 1979 : *** : 4,773 : 47,494 : *** *** 1980 : *** : 3,762 : 38,160 : *** *** 1981 : *** : 4,355 : 27,141 : *** *** 1982 : *** : 3,711 : 41,521 : *** *** January-June : . : :

1982 : *** : 1,981 : 16,194 : *** *** 1983 : *** : 2,520 : 27,761 : *** ***

1/ Reported to the U.S. International Trade Commission by domestic producers. 2/ Imports are believed to include less than 5 percent of cooking and

kitchen ware of iron.

Source: Compiled from official statistics of the U.S. Department of Commerce.

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Digest No. C601--Con.

Table D.--Porcelain-on-steel cooking and kitchen ware: U.S. imports for consumption under the Generalized System of Preferences, by principal sources, 1978-82, January-June 1982, and Janaury-June 1983

Source • •

• •

1978 1979 • • 1980 • •

1981 • • • •

1982 January-June--

1982 1983

Quantity (1,000 units)

• . • . • . • . • . • . Taiwan : 3,166 : 2,322 : 449 : 553 : 903 : 235 : 825 Mexico : 2,187 : 2,765 : 890 : 1,641 : 1,189 : 605 : 537 Hong Kong : 905 : 548 : 64 : 32 : 139 : 26 : 337 South Korea : 1,152 : 1,169 : 66 : 20 : 89 : 87 : 27 All other : 1.298 : 986 : 54 : 90 : 26 : 2 : 31

Total : 8,708 : 7,790 : 1,523 : 2 336 : 2.346 : 955 : 1.755

Value (1,000 dollars)

• • Taiwan : 4,834 : 4,672 : 1,352 : 2,196 : 3,572 : 928 : 3,597 Mexico : 2,310 : 2,800 : 695 : 997 : 794 : 443 : 283 Hong Kong : 372 : 367 : 39 : 30 : 186 : 47 : 246 South Korea : 1,766 : 1,961 : 122 : 51 : 135 : 131 : 42 All other : 1,358 : 905 : 84 : 88 : 81 : 6 : 89

Total : 10.640 : 10,705 : 2.292 : 3.362 : 4.768 : 1,555 : 4,257

Unit value (per unit)

• . • . • . • . • . Taiwan : $1.53 : $2.01 : $3.01 : $3.97 : $3.96 : $3.95 : $4.60 Mexico : 1.06 : 1.01 : .78 : .61 : .67 : .73 : .52 Hong Kong : .41 : .67 : .60 : .94 : 1.34 : 1.81 : .73 South Korea : 1.53 : 1.68 : 1.85 : 2.55 : 1.52 : 1.50 : 1.68 All other . : 1.05 : .92 : 1.56 : .98 : 3.12 : 3.00 : 2.87

Average : 1.12 : 1.26 : 1.56 : 1.81 : 2.20 : 2.20 : 2.08

Source: Compiled from official statistics of the U.S. Department of Commerce.

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Digest No. C602--Con.

II. Comment

Description and uses

A portable purifier (air cleaner) is an electric-or battery-powered

appliance that purifies and deodorizes air and adds a pleasant fragrance. The

principal components of an air purifier include an electric motor, a filter,

and a casing made of metal or plastic. According to industry sources, the

production process for this item is very labor intensive. Replacement filters

for use in these air purifiers are made of a foam-like material treated with

activated carbon or chemicals which absorb gaseous contaminants.

U.S. producers and employment

There are currently only 2 U.S. producers of portable room-size air

purifiers. They are located in Chicago, Illinois, and Sanford, Florida.

Although specific data are not available, industry sources indicate that

employment has increased since 1978. The actual number of workers, however,

fluctuates with seasonal demand.

U.S. consumption and shipments

Estimated apparent U.S. consumption of portable room-size air purifiers

and filters increased annually during 1978-82, rising from $4.4 million to

$84.8 million (table A).

Estimated shipments followed the same trend as that of consumption,

rising from $3.9 million in 1978 to $72.1 million in 1982. Industry sources

indicate that the increase in shipments was due to rising consumer demand for

the product.

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Digest No. C602--Con.

U.S. exports

Estimated U.S. exports of portable room-size air purifiers and filters

increased from $195,000 in 1978 to $7.2 million in 1982 (table A). Industry

officials indicate that Canada was the major foreign market for exports during

the period; information on other export markets is not available.

U.S. imports

U.S. imports (estimated) of the products considered herein increased from

$670,000 in 1978 to $19.9 million in 1982 (table B). Estimated U.S. imports

fell 38.5 percent during January-June 1983 to $5.3 million compared with the

same period of 1982. These imports were supplied by Hong Kong, Taiwan and

Japan. The ratio of imports to consumption declined from an estimated 15.3

percent in 1978 to 9.8 percent in 1981. The level of import penetration then

increased to an estimated 23.5 percent in 1982. The increase was caused by

increased consumer demand for the product and increased importing by a large

retailer who had previously purchased these purifiers from domestic sources.

The ratio of imports to consumption was estimated to be 19.1 percent in the

first six month of 1983, compared with 23.0 percent in the same period of

1982. However, industry spokesmen indicate that the import penetration in

quantity is much higher, and that due to the low price of imports, the actual

effect on the industry is understated. The estimated percentage of imports of

portable air purifiers and filters entering the United States under the

Generalized System of Preferences has increased in recent years as Hong Kong

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Digest No. C602--Con.

and Taiwan became important suppliers in this market. Although exact data are

not available, estimates indicate that GSP imports accounted for approximately

68 percent of estimated total U.S. imports in 1982, compared with 3 percent in

1978 (table C).

Imported portable room-size air purifiers are considered interchangeable

with comparable domestically produced products by U.S. consumers. The U.S.

industry, however, asserts that the quality of imports is lower because such

products are not capable of removing as many of the impurities from the air,

due to a substandard filtering systems. These imports are priced much lower

than domestically-produced models.

Position of interested parties

The petitioner, Associated Mills, Inc., and the other U.S. producer,

Rush-Hampton Industries, Inc., request that duty exemption be withdrawn for

room-size air purifiers and filters imported from Hong Kong and Taiwan, and

that the column 1 rate of duty (4.7 percent ad valorem) be imposed. This

would necessitate an individual import breakout for these products presently

classified under TSUS category 661.95. During the Commission hearing on

September 27, 1983, both these U.S. producers indicated that if the large

volume of imports continued, and importers' market share continued to rise,

U.S. manufacturers will be forced to locate their operations offshore to

remain competitive. This will result in significant unemployment in the

industry.

The Board of Foreign Trade, Republic of China on Taiwan, opposed the

petition on the grounds that import penetration has risen because of increased

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Digest No. C602--Con.

demand. In the first six months of 1983, imports from Taiwan dropped

precipitously, from $4 million in 1982 to $2 million. Demand is expected to

increase, and the domestic industry will likely improve its already

satisfactory financial condition.

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Digest No. C602--Con.

* * * * *

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(760? Cu.

Table A.—Portable air purifiers: U.S. pcoduccrY shipment:;, exports of

domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January--June 1983

• : • : Ratio of

Period . .

Producers' shipments

: Exports : Imports Apparent

: cormptic:n

.

: :

imports to consumption

1,000 dollars-- Percent

1978 • : 3,900 : 195 : 670 : 4,375 : 15.3

1979------ : 7,600 : 380 : 1,101 8,V21 : 13.2

1980 : 15,120 : 1,510 : 1,880 : 15,490 : 12.1

1981 : 60,590 : 5,900 : 6,010 : 60,480 : 9.8 1982 : 72,090 : 7,200 : 19,900 : 84,790 : 23.5

January-June : : : 1982 32,050 : 3,100 : 8,650 : 37,600 : 23.0

1983 : 25,000 : 2,500 : 5,320 : 27,820 : 19.1

Source: Estimated by the staff of the U.S. International Trade Commission from official statistics of the U.S. Department of Commerce.

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Digest No. C602--Con.

Table B.--Portable air purifiers: U.S. imports for consumption, by sources, 1978-82, January-June 1982, and January-June 1983

(In thousands of dollars)

principal

• • January-June-- Source. ' 1978 ' 1979 • 1980 • 1981 ' 1982

1982 1983

: : • Hong Kong--: 1 : 6 : 130 : 2,047 : 7,326 : 2,904 : 2,076 Taiwan : 1 : 4 : 54 : 85 : 6,547 : 2,883 : 1,523 Japan : 668 : 1,091 : 1,696 : 3,878 : 6,027 : 2,863 : 1,721

Total : 670 : 1,101 : 1,880 : 6,010 : 19,900 : 8,650 : 5,320

Source: Estimated by the staff of the U.S. International Trade Commission from official statistics of the U.S. Department of Commerce.

Table C.--Portable air purifiers: U.S. imports for consumption under the Generalized System of Preferences, by principal sources, 1978-82, January-June 1982, and January-June 1983

(In thousands of dollars)

Source ! 1978 ! 1979 ! 1980 ! 1981 ' 1982 January-June--

1982 1983

Hong Kong--: 1 : 1 : 86 : 2,007 : 7,084 : 2,750 : 1,969 Taiwan : 1 : 3 : 51 : 68 : 6,541 : 2,881 : 1,508

Total : 2 : 4 : 137 : 2,075 : 13,625 : 5,631 : 3,477

Source: Estimated by the staff of the U.S. International Trade Commission from official statistics of the U.S. Department of Commerce.

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Digest No.' C603--Con.

II. Comment

Description and uses

This digest includes certain drilling machines, other than used or

rebuilt, valued under $2,500 each, used for drilling holes in metal. They are

made in a variety of different sizes, ranging from small, bench-mounted

machines used by hobbyists to large, floor-mounted, machines used in light

industry. The small drilling machines used by hobbyists are normally priced

from $250 to $600 and have a fixed number of speeds. The larger, light-

industrial, machines range in price from $600-$2,400 and have transmissions

capable of providing infinite speed changes and high torque at low speeds.

U.S. producers and employment

There are approximately 16 producers of drilling machines valued under

$2,500 in the United States. These producers are located primarily in the

North East Central States (especially Ohio and Michigan) and the Pacific

States (particularly California). The number of producers has decreased only

slightly since 1978, however, the number of production workers has declined

from about 1,500 in 1978 to about 1,100 in 1982. 1/

U.S. consumption and production

Apparent consumption of drilling machines valued under $2,500 fluctuated

during 1978-81, increasing from $33 million to $45 million. In 1982, apparent

consumption decreased 11 percent to $40 million. U.S. shipments increased

from $22 million in 1978 to $26 million in 1979 and then decreased erratically

to $15 million in 1982 (table A).

1/ SIC 35412--Metal cutting drilling machines.

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Digest No. C603--Con.

U.S. exports

U.S. exports of drilling machines valued less than $2,500 fluctuated

during 1978-82, increasing from $1.1 million in 1978 to $1.6 million

in 1981, and decreasing to $912,000 in 1982 (table B). Exports as a percent

of shipments increased from 4.8 percent in 1978 to 7.7 percent in 1981 and

decreased to 5.9 percent in 1982. During the period 1978-82, Canada accounted

for 25 percent of U.S. exports and Mexico accounted for 15 percent. Other

major markets were Singapore, the Republic of South Africa, and Australia.

U.S. imports

U.S. imports of drilling machines valued under $2,500 increased from

$11.6 million in 1977 to $25.9 million in 1981 and decreased to $25.5 in 1982

(table C). The ratio of imports to consumption increased from 35.5 percent in

1978 to 63.8 percent in 1982.

In 1982, drilling machines valued under $2,500 were imported from over 20

countries, however, those imported from Taiwan under TSUSA item 674.3227

accounted for 87 percent of total imports. Canada was the next largest source

in 1982, accounting for 5 percent of total imports. Throughout 1978-82,

Taiwan and Sweden were the principal sources of imports of drilling machine

valued less than $2,500, accounting for 90 percent of total imports.

According to industry officials, the lower end of the market for drilling

machines, i.e., those drilling machines valued under $600, is dominated by

lower quality, lower priced, imports. Domestic producers do not compete in

this market where the average selling price of the domestic machine is 300

percent higher than the average selling price of the imported machine.

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Digest No. C603--Con.

Domestically produced machines are generally sold to small job shops and light

industry where high quality is important to the buyer'. A small percentage of

domestically produced drilling machines are used in home workshops.

Imports of drilling machines valued under $2,500 from all designated GSP

countries accounted for an average of 87 percent of total imports during

1978-82 (table D).

Position of interested parties

Mr. William J. Ferrick, Executive Vice President, Wilton Corporation

(petitioner), requests that duty exemption be withdrawn from Taiwan and that

the maximum duty be imposed on all drilling machines valued under $2,500

imported from Taiwan under TSUSA item 674.3227. According to Mr. Ferrick, the

domestic drilling machines industry, especially that segment consisting of

drilling machines valued under $600, has been severely affected by imports.

No submissions were received from other interested parties.

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Digest No. C603--Con.

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Digest No. C603--Con.

Table A.--Drilling machines valued under $2,500 each: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, and January-June 1982 and January-June 1983

Period Producers'

• shipments Exports : Imports :

Apparent con- :

sumption 1/ . .

Ratio (percent) of imports to consumption

1,000 dollars : Percent

1978 22,167 : 1/ 1,073 :1/ 11,617 : 1/ 32,711 : 1/ 35.5 1979-- 25,938 : 1/ 1,227 :1/ 15,665 : 1/ 40,376 : 1/ 38.8 1980 18,590 : 950 : 17,005 : 34,645 : 49.1 1981 20,209 : 1,565 : 25,907 : 44,551 : 58.2 1982 --- - 15,375 : 912 : 25,488 : 39,951 : 63.8 Jan.-June--

1982 7,898 : 418: 15,173 : 22,653 : 67.0 1983 2/ 357 : 12,918 : 2/ 2/

1/ Estimated by the staff of the U.S. International Trade Commission from official statistics of the U.S. Department of Commerce.

2/ Not available.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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Digest No. C603--Con.

Table B.--Drilling machines valued under $2,500 each: U.S. exports of domestic merchandise, by principal markets, 1978-82, January-June 1982, and January-June 1983

(In thousands of dollars)

Market ;1978 1/!1979 1/ ; 1980 1981 1982 January-June--

1982 1983

: • : Singapore---: 19 : 19 : 131 : 104 : 185 : 118 : 14 Republic of : : :

South . • . : • . • . : Africa----: 23 : 31 : 44 : 71 : 116 : 37 : 24

Nigeria : 12 : 2 : - : 45 , : 87 : - : - Canada : 333 : 385 : 182 : 459 : 85 : 40 : 74 Australia : 49 : 55 : 25 : 35 : 68 : 68 : 42 Arab : : • • . :

Emirates : 13 : 9 : - : 64 : 68 : 49 : 50 Japan : 24 : 35 : 19 : 9 : 63 : 6 : 32 Mexico : 93 : 124 : 206 : 378 : 62 : 28 : 40 All other : 507 : 567 : 342 : 400 : 177 : 73 : 81

Total : 1,073 : 1,227 : 950 : 1,565 : 912 : 418 : 357

1/ Estimated by the staff of the U.S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce.

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Digest No. C603--Con.

Table C.-- Drilling machines valued under $2,500- each U.S. imports for consump- tion, by principal sources, 1978-82, January-June 1982, and January-June 1983

(In thousands of dollars)

• Source 1978 1/ 1979 1/ . 1980 • 1981 1982 • January-June--

! 1982 ! 1983

Taiwan 9,757 : 13,185 : 14,622 : 22,519 : 22,270 :13,291 : 11,81 Canada 163 : 259 : 243 : 283 : 1,364 : 743 : 32 United Kingdom 118 : 101 : 92 : 758 : 458 : 242 : 16 Sweden 477 : 874 : 1,202 : 969 : 375 : 224 : 18 .

Japan--------------: 310 : 124 : 208 : 358 : 263 : 228 : 5 Spain 205 : 173 : 144 : 171 : 186 : 82 : 10 Portugal 195 : 180 : 186 : 239 : 151 : 88 : 5 France 101 : 60 : 111 : 65 : 123 : 65 : 9 All other 291 : 709 : 196 : 544 : 299 -: 211 : 12

Total : 11,617 : 15,665 : 17,005 : 25,907 : 25,488 :15,173 : 12,91

1/ Estimated by the staff of the U.S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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Digest No. C603--Con.

Table D.--Drilling machines valued under $2,500 each: U.S. imports for consumption under the Generalized System of Preferences, by principal sources, 1978-82, January-June 1982, and January-June 1983

(In thousands of dollars)

Source . 1978 1978 1/ :.

• 1979 1/.

• 1980 :

1981 :

'January-June--1982 • .

• 1982 : 1983

: . • Taiwan- : 9,716 : 13,130 : 14,555 : 22,347 : 22,010 :13,071 : 11,771 Portugal : 194 : 180 : 186 : 239 : 151 : 88 : 54 Brazil : 1 : 82 : 2 : 2 : - : - : 7 Republic of Korea : 46 : 83 : - : - : 4 : 4 : 6 Hong Kong : - : - : - : 47 : 43 : 17 : - Mexico : 4 : 11 : 5 : 37 : 5 : - : - India : 10 : 15 : 11 : 19 : - : - • - Philippines - : 19 : .- : - : - : - : - All other : 1 : 65 : - : - : - : - : -

Total----- : 9,972 : 13,585 : 14,759 : 22,691 : 11,838 22,213 :13,180 :

1/ Estimated by the staff of the U.S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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Digest No. C604--Con.

II. Comment

Description and uses

Storage batteries are devices used for the direct transformation of

chemical energy into electrical energy through chemical reactions which can be

reversed to a high degree. Reversal is accomplished by causing an electric

current to flow in the opposite direction of discharge. The term "storage

battery" is normally applied to an assembly of identical units or cells

connected in series but may also be applied to a single cell. Twelve-volt

lead-acid storage batteries have a nominal electrical potential (voltage) of

12 volts and a sulfuric-acid electrolyte. These batteries are most commonly

used for the starting, lighting, and ignition (SLI) of motorcycles and other

motor vehicles.

U.S. customs treatment

As the result of a petition filed in 1981 by the Yuasa-General Battery

Corporation, the current petitioner, Taiwan was removed from the list of

eligible GSP beneficiaries with respect to 12-volt, lead-acid storage

batteries on )!arch 31, 1982. This was accomplished by dividing the former

provision for lead-acid storage batteries (TSUS item 683.10) into 12-volt

storage batteries (TSUS item 683.05) and other lead-acid batteries and parts

(TSUS item 683.07).

U.S. producers and employment

There are currently only three U.S. producers, including the petitioner,

of lead-acid storage batteries for motorcycles. Employment by these firms

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Digest No. C604--Con.

was approximately 450 persons in 1982. For the entire storage battery

industry, total employment was approximately 23,000 in 1982, having fallen

from nearly 26,000 in . 1977, or by approximately 12 percent. Employment data

is not available separately for 12-volt, lead-acid batteries, however,

lead-acid batteries currently account for nearly 90 percent of the total value

of storage battery shipments; further, 12-volt batteries are estimated to

represent between 75-80 percent of total lead-acid battery shipments.

While there are currently at least 50 U.S. producers of storage

batteries, seven of these producers account for approximately 85-90 percent of

total industry shipments of 12-volt lead-acid batteries. Many of these

companies are divisions of much larger multiproduct, multinational

corporations.

U.S. consumption and shipments

Estimated apparent U.S. consumption of 12-volt lead-acid batteries

increased from $1.5 billion in 1978 to $1.8 billion in 1979, declined to $1.7

billion in 1980, then rose to $1.9 billion in 1982 (table A).

U.S. shipments of 12-volt lead-acid batteries followed the same trend as

that for apparent U.S. consumption while rising irregularly from an estimated

$1.6 billion in 1978 to $1.9 billion in 1982, or by 19 percent.

This increase was accounted for by increased prices of batteries during

the period as the net quantity of battery shipments declined by nearly 12

percent during 1978-82. The decline in unit shipments of batteries, the

majority of which were for use in motor vehicles, has been associated with

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Digest No. C604--Con.

increased battery life (particularly with respect to new maintenance-free

batteries), stagnant U.S. original equipment motor-vehicle sales, and recent

milder than normal winters (the prime cause of battery failure).

U.S. exports

U.S. exports of 12-volt lead-acid batteries increased from an estimated

$35.8 million in 1978 to $50.5 million in 1981, or by 41 percent, before

declining by 3 percent to $49.2 million in 1982 (table B). The principal

export market during the period was Canada which share of total U.S. exports

ranged from a low of 34 percent in 1981 to a high of 42 percent in 1979.

These exports were principally of automotive SLI batteries. Saudi Arabia and

the United Kingdom were also significant U.S. export markets with 12 and 5

percent shares, respectively, of U.S. exports in 1982.

U.S. imports

U.S. imports of 12-volt lead-acid batteries increased from an estimated

$7.5 million in 1978 to $12.3 million in 1980, declined to $11.0 million in

1981, then increased to $12.2 million in 1982 (table C). Imports during

January-June 1983 were $9.9 million, up 65 percent over the $6.0 million

imported during January-June 1982. Most of this increase was in imports from

Japan, Taiwan, and Korea. Imports from all of these countries are

predominantly motorcycle batteries as evidenced by the low average unit values

recorded in 1982 and during January-June 1983. The latter period represents

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Digest No. C604--Con.

imports only under the new tariff provision for 12-volt lead-acid batteries

(TSUS item 683.0500), while all other periods contain some or all data for

12-volt batteries extrapolated from the former provision for lead-acid

batteries (TSUS item 683.10).

Japan was the leading source of imports throughout the period. Imports

from Japan rose irregularly from $4.1 million in 1978 to $5.9 million in 1982,

or by 44 percent. These imports reached a low of $3.4 million in 1981,

principally due to depressed U.S. shipments of new motorcycles in that year.

Imports of 12-volt lead-acid batteries from Korea increased irregularly from

an estimated $31,000 in 1978 to $329,000 in 1982. Imports during January-June

1983 were $1.0 million, substantially higher than the $58,000 recorded during

January-June 1982. Virtually all of the imports to date from Korea have been

entered under the duty-free provisions of the GSP (table D). While still at a

comparatively low level in terms of value, the Korean imports have reportedly

• entered the U.S. market at prices 30-35 percent below comparable U.S.-produced

battery prices. Petitioner and those in opposition debate whether the quality

of these batteries is equal to that of U.S.-produced products. The ratio of

imports to consumption for all 12-volt lead-acid batteries was less than 1

percent from 1978-82. The import-to-consumption ratio for motorcycle 12-volt

lead-acid batteries is considerably higher, however, estimates of shipments,

exports, and imports of these battery types are not available to permit a

reasonable computation of such ratios.

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Digest No. C604--Con.

Position of interested parties

The U.S. petitioner, Yuasa-General Battery Corp., has taken the position

that the rapidly increasing level of Korean battery imports, together with

their low price and high quality, indicate that these products, and the

foreign industry producing them, are competitive with comparable domestically-

produced merchandise and thus should be removed from GSP eligibility status.

The Korea Battery Industrial Cooperative takes the position that the

current level of Korean imports is small both absolutely and relative to total

imports with import penetration only 3.4 percent. They also have argued that

Korean batteries are of substantially lower overall quality than U.S.

batteries. It was indicated that Korean batteries generally have a service

life of one to two years compared to three to five years of U.S. merchandise,

and it is this difference which accounts for the 30-35 percent lower costs of

Korean batteries.

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Digest No. C604--Con.

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Digest. No. C604--Con.

Table A.--12-volt lead-acid storage batteries: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, January-June 1982, and January-June 1983

Period • • • .

Producers' shipments 1/

-

.

• • -

: Exports : Imports

:

: : :

Apparent :

consump- :

tion 1/ : : 1,000 dollars :

• . . • . 1978-- : 1,560,000 : 35,755 : 7,499 : 1,531,744 : 1979 : 1,820,000 : 32,842 : 10,892 : 1,798,050 : 1980-- : 1,765,000 : 40,580 : 12,262 : 1,736,682 : 1981 : 1,800,000 : 50,475 : 11,038 : 1,760,563 : 1982 : 1,925,000 : 49,185 : 12,191 : 1,888,006 : January-June-- : •

1982 : 1,060,000 : 24,524 : 6,003 : 1,041,479 : 1983 : 1,000,000 : 22,697 : 9,947 : 987,250 :

Ratio of imports to consumption

Percent

0.5 .6 .7 .6 .6

.6 1.0

1/ Estimated by the staff of the U.S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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11

Digest No. C604- Con.

Table D. 12-volt, lead-acid type storage batteries: U.S. imports for consumption under GSP, 1979-82, January-June 1982, and January-June 1983

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January-June-- 1982 1/ _ .

• 1982 .

1/ • 1983

Value (1,000 dollars) •

Brazil : - : 123 : - : - : - : Hong Kong : 16 : 27 : 131 : 2 : 1 : Israel : -: -: 2 : -: -: Republic of Korea : 8 : 6 : 122 : 329 : 165 : 1,015 Macao : - : - : 1 : - : - : - Mexico : 1,289 : 1,545 : '2,089 : 419 : 242 : 6 Taiwan : 1,532 : 2,497 : 1,070 : 581 : 292 : S Uruguay : - : - : 3 : - : - : 23

GSP total : 2,845 : 4,198 : 3,418 : 1,331 : 700 : 1,049

1/ Estimated by the staff of the U.S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

Page 311: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...
Page 312: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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2

Digest No. C605--Con.

II. Comment

Description and uses

Ignition wiring sets for motor vehicles and other transportation

equipment consist essentially of electrical wiring harnesses and ignition

cable sets. Wiring harnesses are used for the wiring of instrument panels,

lights, horns, windshield wipers, and a variety of other electrical devices in

motor vehicles and other transportation equipment. Ignition cable sets are

principally employed in the starting and ignition circuits of the above

mentioned equipment. The predominant type of these assemblies are spark plug

wire sets. These devices are primarily consumed by the motor-vehicle and

aircraft industries in original equipment applications, although considerable

demand exists, particularly for spark plug wire sets, in replacement

applications.

U.S. customs treatment

Ignition wiring sets were designated for duty-free treatment under the

Generalized System of Preferences (GSP) on January 1, 1976. On

February 29, 1976, Mexico was removed from the list of eligible GSP

beneficiaries by virtue of the fact that imports from Mexico in 1975 exceeded

50 percent of total imports under TSUS item 688.1200. Mexico continues to be

the only GSP beneficiary country excluded from duty-free eligibility status.

U.S. producers and employment

There are currently 14 U.S. companies producing ignition wiring sets

compared to approximately 25 producers in 1977. No estimates of industry

employment are currently available; but due to the substantial rationalization

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3

Digest No. C605--Con.

of industry production operations in Mexico utilizing the provisions of TSUS

item 807.00, employment is estimated to have dropped dramatically in recent

years. Only a few U.S. producers, including the petitioner, have not moved a

large part of their production operations offshore.

U.S. consumption and shipments

Apparent U.S. consumption of ignition wiring sets for motor vehicles

increased from an estimated $264.5 million in 1978 to $298.8 million in 1981,

or by 13 percent, before declining slightly to $297.0 million in 1982 (table

A). During January-June 1983, apparent U.S. consumption was an estimated

$142.0 million compared to $130.4 million in the corresponding period of 1982,

or nearly 9 percent higher. U.S. producers' shipments of ignition wiring sets

declined from an estimated $300.0 million in 1978 to $260.0 million in 1982,

or by 13 percent, before increasing by nearly 10 percent to $285.0 million in

1982. Estimated shipments in January-June 1983 were $150.0 million, or 17

percent higher than during January-June 1982. The increases in 1982 and in

the first half of 1983 are associated with a recovery in the replacement

market for wiring harnesses and cable sets, increased domestic prices, an

increase in original equipment automotive production in early 1983, and

increased exports of these products.

Exports

Exports of ignition sets for motor vehicles increased from $78 million in

1978 to $152 million in 1982 (table B). Exports reached $118 million during

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C605--Con.

January-June 1983 compared with $73 million during the corresponding period in

1982. Canada provided the largest export market during the period although

Canada's share decreased each year, declining from 91 percent in 1978 to 56

percent in 1982. Exports of ignition sets to Canada are related to the

integration of the U.S. and Canadian automotive industries. Mexico also

accounted for a large share of U.S. exports, increasing $3 million in 1978 to

$57 million in 1982. Exports to Mexico are related to U.S. producers'

rationalization of production along the Mexican border. Canada and Mexico

combined account for over 90 percent of U.S. exports.

Imports

U.S. imports of ignition sets for motor vehicles increased from $43

million in 1978 to $166 million in 1982 (table C). During January-June 1983,

imports were valued at $88 million compared with $61 million during the

corresponding period in 1982. The ratio of imports to consumption increased

from 16 percent in 1978 to 55 percent in 1982, and then to nearly 78 percent

during January-June 1983. Most of this increase was accounted for by Mexico

which was the largest supplier during the period, accounting for from 53 to 83

percent of total imports. Virtually all of the imports from Mexico were en-

tered under TSUS item 807.00, reflecting the Mexican border operations of U.S.

producers. Imports of ignition sets from Taiwan increased from $14 million in

1978 to $20 million in 1982. Imports from Taiwan reached $16 million during

January-June 1983 and were 90 percent higher than during the corresponding

period in 1982. Virtually all of the imports from Taiwan were entered

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5

Digest No. C605--Con.

duty free under the GSP, accounting for almost all of the GSP imports of

ignition wiring sets during the period 1978-June 1983 (table D). During 1982,

imports entered under the GSP accounted for about 12 percent of total

imports. Mexico is ineligible for GSP treatment, having exceeded the

competitive need limitation in every year since 1974. Ignition sets produced

domestically are interchangeable with imported sets with respect to quality

and function; however, sets imported from Mexico have been reported by

industry sources to be up to 30 percent lower in price.

Position of interested parties

National Industries, Inc. (National), the petitioner, reports significant

difficulty in competing for domestic contract awards as the result of intense

price competition from imports of wiring harnesses from Taiwan. The

petitioner asserts that it is currently being undersold by 5-20 percent in the

U.S. market and argues that GSP benefits are largely benefiting the Japanese

owners of the predominant Taiwanese producer. National feels that the

quantity and price competitiveness of the imported products from Taiwan are

significant evidence that Taiwan no longer needs the provisions of the GSP to

further its industry's development and thus should be graduated from the list

of eligible GSP beneficiaries.

Spokesmen for American Yazaki, the largest Taiwanese producer of wiring

harnesses, have indicated that the elimination of GSP benefits to Taiwan would

hamper the development of their facilities in Taiwan. They have suggested

that the loss of the 5 percent duty preference might eliminate the incentive

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6

Digest No. C605--Con.

for the Japanese parent company to source wiring harness components in Taiwan

in order to satisfy the 35 percent value added requirement of the GSP.

Representatives for the Taiwan Board of Foreign Trade (SOFT) essentially

concurred with the statements of American Yazaki while asserting that smaller,

and considerably less competitive Taiwanese producers of wiring products other

than harnesses also stood to lose U.S. market position should the decision be

made to deny Taiwan GSP eligibility under TSUS item 688.12.

Both the SOFT and American Yazaki also suggested in prehearing

.statements, that the graduation of Taiwan from GSP beneficiary status could

result in the decreased competitiveness and subsequent reduction in supply of

wiring products to the U.S. market. They further argued that National did not

currently have the necessary capacity to fill this supply void in an expanding

domestic market, thus placing U.S. purchasers of these components in a severe

adverse position. National, however, has consistently indicated in its oral

and written statements, that it has sufficient unused production capacity to

respond, in a timely fashion, to any short supply condition in the U.S. market.

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7

Digest No. C605--Con.

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8

Digest No. C605--Con.

Page 320: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

9

Digest No. C605--Con.

Table A.—Ignition wiring sets for motor vehicles: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82, and January-June 1982 and January-June 1983

:

Producers' • Period : .shipments 1/: . Exports :

: Imports :

Apparent con- • : gumption 1/ ;

Ratio (percent) of imports to consumption

1.000 dollars : Percent

1978 : 300,000 : 78,354 : 42,826 : 264,472 : 16.2 1979 : 280,000 : 71,104 : 69,658 278,554 : 25.0 1980 : 263,000 : 66,556 : 96,782 : 293,226 : 33.0 1981 : 260,000 : 119,959 : 158,733 : 298,774 : 53.0 1982 : 285,000 : 151,610 : 163,571 296,961 : 55.1 Jan.-June-- : : : • : :

1982 : 128,000 : 72,952 : 75,375 : 130,423 : 57.8 1983 : 150,000 : 118,160 : 110,124 : 141,964 : 77.6

1/ Estimated by the staff of the U.S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

Page 321: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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11

Digest No. C605--Con.

Table D. Ignition wiring sets for motor vehicles: U.S. imports for consumption from designated GSP countries, 1979-82, Jan.-June 1982, and Jan.-June 1983

(In thousands of dollars)

Item : . : 1979

• • . •

1980 • • . 1981

• • 1982

January-June__

1982.1/ •

• 1983

Brazil : 383 : 332 : 367 : 244 : 122 : 116 Hong Kong : 16 : 67 : 30 : 19 : 9 : 2 Republic of Korea---: 45 : 8 : - : - : - : 27 Mexico : - : - : 7 : - : - : - Philippines : 273 : 351 : 134 : 2 : 1 : 2 Taiwan : 11,591 : 12,456 : 16,947 : 20,018 : 10,009 : 15,236

Total : 12,308 : 13,214 : -17,490 : 20,283 : 10,141 : 15,383

1/ Estimated by the staff of the U.S. International Trade Commission based on official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

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2

Digest No. C701--Con.

II. Comments

Description and uses

The photographic cameras covered in this digest (TSUSA items 722.1205,

722.1212, and 722.1225) are all of the fixed-focus, hand-held type; instant-

print cameras and cameras having a photographic lens valued over 50 percent of

the value of the article are excluded. TSUSA item 722.1205 consists of 110

cartridge cameras with a built-in electronic stroboscopic flash. TSUSA item

722.1212 consists of all other 110 cartridge cameras, or more specifically,

those cameras without a built-in electronic stroboscopic flash. For the past

ten years the 110, or "pocket" camera, has been a popular model among casual

photographers interested in picture-taking that is both simple and

inexpensive. The 110 camera uses a cartridge that contains film 13mm in width.

TSUSA item 722.1225 is a basket provision and consists primarily of 126

cartridge cameras, inexpensive fixed-focus 35mm cameras, and the new disc

cameras. The 126 camera uses film cartridges containing film 28mm in width

and was the first camera to utilize a cartridge rather than the traditional

film spool. This camera was popular in the 1960's, and although the 110

camera system supplanted it in the 1970's, there is still a market for 126

cameras. The disc camera, which was introduced by a U.S. manufacturer in

1982, is also classified in TSUSA item 722.1225, and is characterized by a

flat rectangular body that usually incorporates an aspheric lens with a short

focal length. These features allow the photographer to shoot subjects in

focus from four feet to infinity, and to achieve picture resolution as high as

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Digest No. C701--Con.

350 lines per millimeter. The disc camera is used primarily by casual

photographers. Hereafter, the products discussed above will be referred to as

fixed-focus cameras.

U.S. producers and employment

There are currently two U.S. producers of these cameras, down from three

in 1978. They are located in New York and New Jersey. Estimated employment

in the apparatus divisions of these companies increased from 15,000 in 1978 to

20,000 in 1981, and declined to 16,000 by June of 1983. 1/ Lagging sales in

both foreign and domestic markets have led the largest U.S. photographic

manufacturer to lay off a large number of employees and to offer incentives to

almost 80 percent of its total work force to leave the company.

U.S. consumption and production

As shown in table A, apparent U.S. consumption declined irregularly from

$494.1 million in 1978 to $486.3 million in 1982. Consumption for January to

June, 1983, was estimated at $192.7 million, an increase of about 18 percent

from the corresponding period in 1982. The overall decline in apparent U.S.

consumption from 1978 to 1981 was due to economic conditions and a saturation

of the U.S. 110 camera market. The increase that followed in 1982 and the

first six months of 1983 developed due to the new product technology of the

disc camera and ensuing consumer interest.

1/ The apparatus division includes facilities for production of cameras and other photographic hardware, such as photofinishing equipment and projectors.

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Digest No. C701--Con.

The ratio of imports to consumption declined from 8.8 percent in 1978 to

6.0 percent in 1979, and then increased to 7.8 percent by 1981. The U.S.

introduction of the disc camera in 1982 brought the ratio of imports to

consumption down to 5.6 percent in that year, but an increase in imports

caused by the rapid proliferation of foreign disc camera manufacturers in Asia

increased the ratio of imports to consumption to 10.9 percent for the first

six months of 1983.

U.S. producers' shipments of certain fixed-focus cameras increased from

an estimated $482 million in 1978 to $498 million in 1979, and then declined

to $442 million by 1981. A significant upturn developed in 1982 due to the

successful introduction of the disc camera. U.S. producers' shipments in 1982

were an estimated $582 million, an increase of about 32 percent over 1981.

Shipments for the first six months of 1983 showed a 2 percent increase over

the same period in 1982.

U.S. exports 1/

U.S. exports of certain fixed-focus cameras increased from 1.6 million

units valued at $31.4 million in 1978, to 2.0 million units valued at $51.2

million in 1979, before declining to 1.3 million units valued at $27.5 million

in 1981. Exports increased in 1982 to 4.7 million units valued at $123.1

million as the new disc camera stimulated foreign demand (table B). U.S.

exports for the first six months of 1983, however, declined by about 25

1/ Due to the aggregate nature of Schedule B statistical reporting, export figures include instant-print cameras.

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Digest No. C701--Con.

percent in terms of quantity, and 20 percent in terms,of value, from the same

period in 1982. This downturn was caused primarily by the appearance of

foreign competitors who, for the most part, have been licensed to manufacture

their own disc camera models. Canada, Japan, and the United Kingdom were the

principal export markets during 1978-1982.

Japan, Taiwan, Hong Kong, and South Korea are the major competitors of

the United States in international markets. The labor-intensive nature of

camera production gives the low wage-rate countries of Asia a distinct

advantage in price competition. Although U.S. manufacturers produce a camera

that is generally higher in price, they are able to compete on the basis of

the long standing reputation of a major U.S. photographic manufacturer for

production of a quality product. More effective competition on the part of

U.S. manufacturers in the international market is inhibited in part by trade

barriers to other producing countries such as Taiwan and South Korea.

U.S. imports

U.S. imports of certain fixed-focus cameras decreased irregularly from

4.8 million units valued at $43.5 million in 1978 to 3.0 million units valued

at $27.4 million in 1982. U.S. imports for the first six months of 1983,

compared to the same period in 1982, increased 37 percent in terms of quantity

to 1.6 million units, and 126 percent in terms of value to $21.1 million

(table C-1). Taiwan, Japan, Hong Kong, and South Korea were the major

suppliers during 1978-82. These countries were particularly successful in

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6

Digest No. C701--Con.

increasing their shipments to the United States in 1983 due to their early

purchase of the disc technology from the U.S. manufacturer and the , existence

of production facilities in these countries that were easily converted to the

production of disc cameras. Imports increased substantially in the first six

months of 1983 as Hong Kong and Japan, major world camera producers, began

production of disc cameras. The product imported from Taiwan, Hong Kong, and

South Korea is often less expensive than the domestic product due to low labor

costs, but the domestic product is generally considered to be of higher

quality since it is made to more rigid specifications and of more durable

components. Imports from Taiwan, Hong Kong, and South Korea are usually

marketed through discount stores, catalog showrooms, and department stores,

while the domestically produced product is sold in these outlets and in

specialty camera stores.

Imports under the Generalized System of Preferences, which accounted for

60 percent of all imports of certain fixed-focus cameras during 1978-82,

declined from 3.4 million units valued at $21.1 million in 1978 to 2.3 million

units valued at $16.8 million in 1980, increased to 2.8 million units valued

at $23.4 million in 1981, and then declined to 2.6 million units valued at

$17.3 million in 1982. GSP imports increased significantly from the first

half of 1982 to the first half of 1983, growing from 1.1 million units valued

at $7.4 million to 1.5 million units valued at $12.1 million, for increases of

27 percent in terms of quantity and 62 percent in terms of value (table C-2).

In 1982, Taiwan, Hong Kong, and South Korea accounted for 95 percent of GSP

imports. Taiwan was the single .largest supplier of GSP imports and these

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7

Digest No. C701--Con.

accounted for approximately 43 percent of total imports of certain fixed-focus

cameras in 1982. GSP imports from Hong Kong and South Korea accounted for

about 14 percent and 5 percent, respectively, of total imports in 1982.

Position of interested parties

The petition for removal of Taiwan, Hong Kong, and South Korea from GSP

eligibility for TSUSA items 722.1205, 722.1212, and 722.1225, was submitted by

the National Association of Photographic Manufacturers (NAPM). In the

petition, its sole submission, NAPM contends that GSP imports from these

countries have contributed to domestic unemployment and the exit of a U.S.

producer from the photographic industry.

The Board of Foreign Trade, Republic of China (Taiwan) opposes the

removal of GSP eligibility from Taiwan. This petition states that imports

from Taiwan have not exceeded the competitive need limit and that the U.S.

photographic industry is not threatened by the current level of GSP imports.

Written testimony was also presented by W. Raking Enterprises, Limited,

.of Hong Kong, in opposition to the petition. Counsel argued that significant

increases in U.S. exports of subject cameras demonstrates that the U.S.

industry is internationally competitive, and that imports from GSP countries

have substantially decreased from 1978-82. Injury suffered by the domestic

industry is not the result of GSP imports, since market penetration is small,

especially when compared with Japan. If GSP treatment were removed, Japan

would benefit rather than the domestic industry and prices to the U.S.

consumer would go up.

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Digest No. C701--Con.

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Digest No. C701--Con.

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Digest No. C701--Con.

Table A.--Certain fixed-focus cameras: U.S. producers' shipments, exports of domestic merchandise, imports for consumption, and apparent consumption, 1978-82

Year . Producers'

shipments 1/ :

Exports

2/ : Imports

.

. .

. .

Apparent

consumption

:

:

:

Ratio (percent)

of imports to

consumption : 1,000 dollars :

1978--. : 482,000 : 31,397 : 43,493 : 494,096 : 8.8 1979 : 498,000 : 51,157 : 28,744 : 475,587 : 6.0

1980 : 497,000 : 39,551 : 31,963 : 489,412 : 6.5

1981 : 442,000 : 27,522 : 35,238 : 449,716 : 7.8

1982- : 582,000 : 123,128 : 27,390 : 486,262 : .5.6

January- . :

June-- : :

1982 : 200,000 : 41,740 : 9,324 : 167,584 : 5.6

1983 : 205,000 : 33,354 : 21,065 : 192,711 : 10.9

1/ Estimated by the staff of the U.S. International Trade Commission from information supplied by industry sources.

2/ Includes instant-print cameras.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted.

Page 334: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Digest No. C702--Con.

II. Comments

Description and uses

This digest covers pianos which are imported under TSUS items 725.01 and

725.03. Pianos are keyboard string instruments classified according to the

way they are strung. Upright or vertical pianos (TSUS 725.01) are strung

vertically within a rectangular case. Products entering under TSUS 725.03

include grand pianos, which are strung horizontally in a somewhat wing shaped

case, and harpsichords, clavichords and similar instruments, which are

precursors to modern pianos. Grand pianos comprised 95 percent of the

quantity of imports under TSUS 725.03 during 1978-82.

Uprights are grouped according to the height of the case. Those

traditionally used in the home include spinets, measuring 36 to 37 inches;

consoles, 38 to 42 inches; and studio uprights, 43 inches and higher.

Uprights for use in schools, churches, small nightclubs, and other

institutions usually range from 46 to 52 inches in height. Grand pianos

usually range in length from about5 to 9 feet, but can be as long as 11

feet. Grand pianos are used chiefly in the entertainment industry, although

the so-called parlor or baby grands are frequently found in homes. Grand

pianos are generally regarded as superior to uprights in terms of tone, tuning

stability, touch, beauty, and performance capability. Harpsichords and

clavichords are used in the performance of 16th to 18th century music.

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Digest No. C702--Con.

U.S. customs treatment

TSUS item 725.03 became eligible for GSP treatment' on January 1, 1976,

pursuant to section 502(a)(3) of the Trade Act of 1974. TSUS item 725.01

became eligible for GSP treatment on March 30, 1980, pursuant to Executive

Order 12204. Since that time no beneficiary countries have been excluded.

U.S. producers and employment

Fifteen U.S. firms produced pianos in 1982; the four largest together

accounted for 72 percent of domestic production in eight establishments. In

addition to domestic plants, these firms own piano production facilities in

Canada, Mexico, Korea, the United Kingdom, and Austria. Another company owns

a subsidiary in West Germany. The other 11 U.S. firms operated 1 plant each.

Of the 19 total U.S. establishments, 9 were in the Midsouth (Tennessee,

Mississippi, North Carolina, and Arkansas), 5 were in East North Central

States (Indiana, Ohio, and Michigan), and the remaining 5 were located in New

York, Connecticut, California, and Utah. Domestic production of harpsichords

and clavichords is negligible. Industry sources indicate that the largest

harpsichord manufacturer employs from 4 to 6 people and produces 20-25

instruments per year.

All U.S. piano manufacturers make uprights, but until 1977, most grands

were supplied by three firms. After 1977, other producers began to place more

emphasis on the grand market, and by 1982, a total of seven U.S. producers

manufactured grands.

The production of pianos is characterized by a high degree of labor

intensity. Although assembly-line-type operations are used to a great extent,

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Digest No. C702--Con.

the production process has not undergone significant changes over the years.

There has been an increase in the use of automated equipment, with a few

producers using computer-controlled machinery. Efforts toward automation have

been concentrated on production of upright pianos; however, the degree of

automation varies considerably among the producers.

U.S. employment of all persons in establishments producing pianos

decreased by 33 percent during 1978-82, from 6,089 to 4,059. The number of

production workers engaged in producing pianos also decreased over the period,

from 5,180 in 1978 to 3,244 in 1982, or by 37 percent, as plant closures and

layoffs were effected by some manufacturers. Production workers accounted for

85 percent of the workforce in 1978, but by 1982, they amounted to 80

percent. There was a somewhat larger percentage decline in workers assigned

to the manufacturing of uprights, compared with those manufacturing grand

pianos.

During 1978-82, the domestic piano industry experienced diminished

profits. Net sales increased by 4 percent from $257 million in 1978 to $265

million in 1982; however, operating income fell by 80 percent from $23 million

to $4 million during 1978-82, and net income declined from $18 million in 1978

to a loss of $3 million in 1982.

Overall, increased manufacturing costs and operating expenses in

conjunction with increased interest expense for maintaining inventories were

principal causes of the decreased profitability.

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Digest No. C702--Con.

U.S. consumption and production

During 1978-82, apparent consumption of upright pianos fell from 234,024

units to 167,166 units, or by 29 percent; however, the value decreased only

slightly from $183.0 million to $182.2 million (table A-1). In terms of

quantity, the import penetration ratio increased from 7.9 percent to 14.3

percent; in terms of value the ratio increased from 6.7 percent to 12.7

percent. The share of apparent U.S. consumption of uprights supplied by

imports from Korea increased from 0.9 percent to 2.5 percent. U.S. producers'

shipments of upright pianos dropped from 215,574 units to 143,336 units, or by

34 percent; the value of such shipments declined from $170.7 million to $159.0

million, or by 26 percent. The decline in apparent consumption and production

of upright pianos during 1978-82 was due principally to a drop in demand for

smaller models, such as spinets, as consumers switched to higher quality

pianos.

During 1978-82, apparent consumption of grand pianos rose from 19,278

units to 20,143 units, or by 5 percent; the value increased from $52.7 million

to $69.9 million, or by 33 percent (table A-2). In terms of quantity, the

import penetration ratio increased from 49.7 percent to 70.0 percent; in terms

of value the ratio increased from 36.4 percent to 50.8 percent. The share of

apparent U.S. consumption of grand pianos supplied by imports from Korea

increased from 5.9 percent to 18.4 percent. U.S. producers' shipments of

grand pianos decreased from 9,703 units to 6,048 units, or by 34 percent; the

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Digest No. C702--Con.

value of such shipments increased slightly from $33.5 million to $34.4

million. The increase in consumption of grand pianos is a reflection both of

the shift in consumer tastes to a higher quality sound and the increasing

availability of relatively low-priced grand pianos from Korea and

moderately-priced, high-quality grand pianos from Japan.

U.S. consumption of harpsichords, clavichords, and similar instruments is

principally accounted for by imports, which increased from 1,179 units in 1978

to 1,435 units in 1982. The value of these imports increased from $700,000 to

$1.6 million during the period (table C-3). These increases reflect an

increased interest in 18th century music.

U.S. exports

U.S. exports of pianos have traditionally consisted almost entirely of

uprights, which accounted for 98 percent of U.S. exports during 1978-82. U.S.

piano exports decreased during 1978-82, from 19,252 units to 11,681 units, or

by 39 percent (table B). The value of exports decreased by only 6 percent

during the period, from $14.1 million in 1978 to $13.3 million in 1982;

however, the average unit value rose by 55 percent, from $734 to $1,136.

Exports in January-June 1983, compared to that in January-June 1982, decreased

by 9 percent in quantity from 5,139 units to 4,666 units, whereas the value

decreased by 23 percent from $6.1'million to $4.7 million.

Important export markets during 1978-82 included Canada, the Netherlands,

and West Germany with Canada, the largest single-country market, consistently

purchasing about one-third of U.S. exports of pianos.

U.S.-produced upright pianos increased in popularity in foreign markets

during 1978-80 by 35 percent in quantity and 56 percent in value, before

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Digest No. C702--Con.

decreasing by 50 and 43 percent, respectively, by 1982. The causes of the

sharp decline in U.S. exports of pianos in 1982 have been attributed primarily

to the effects of the worldwide recession.

U.S. imports

Upright pianos.--U.S. imports of upright pianos increased by 29 percent

during 1978-82, from 18,450 units to 23,830 units (table C-1); the value of

such imports increased by 89 percent, from $12.2 million to $23.2 million.

U.S. imports of upright pianos during January-June 1983, compared with

January-June 1982, decreased by 15 percent in quantity to 11,319 units from

13,361 units and by 10 percent in value,to $11.3 million from $12.6 million.

The share of imported uprights supplied by Japan (the largest supplier)

slipped from 77 to 76 percent, despite a 29 percent increase in quantity

during 1978-82; the quantity from Korea (the second largest supplier) more

than doubled and boosted its share from 11 to 18 percent. In addition, the

average unit value of uprights from Korea increased by 56 percent, and those

from Japan by 36 percent.

Upright pianos received GSP eligibility in 1980 and, during 1980-82,

total imports of upright pianos under the GSP increased from 528 units to

4,257 units. By 1982, such GSP imports accounted for almost 18 percent of

total imports. The value of these imports increased from $0.4

million to $4.2 million (table D-1). Korea was the principal supplier; other

suppliers were Taiwan, Israel and Hong Kong.

Imports of upright pianos from Korea with a polyester finish totalled

approximately 3,801 units in 1982 and 3,039 units during January-June 1983.

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Digest No. C702--Con.

Grand pianos.--U.S. imports of grand pianos increased by 47 percent

during 1978-82, from 9,575 units to 14,095 units (table C-2); the value of

such imports increased by 85 percent, from $19.1 million to $35.5 million.

U.S. imports of grand pianos during January-June 1983, compared with

January-June 1982, decreased by 4 percent in quantity to 7,355 units from

7,628 units and by 2 percent in value, to $18.1 million from $18.4 million.

The share of imported grand pianos supplied by Japan (the largest

supplier) decreased from 82 percent to 71 percent, despite a 28-percent

increase in quantity during 1978-82. The share of imported grand pianos

supplied by Korea (the second largest supplier) increased from 12 percent to

36 percent as imports from Korea tripled in quantity.

Imports of grand pianos from Korea with a polyester finish totalled

approximately 3,344 units in 1982, and 2,850 units during January-June 1983.

During 1978-82, U.S. imports of grand pianos under the GSP increased from

1,147 units to 3,730 units; or by 225 percent. By 1982, such GSP imports

accounted for over 26 percent of total imports. The value of these imports

increased from $2.0 million to $8.1 million, or by 304 percent (table D-2).

Most grand piano imports entering under GSP were sourced from Korea, which

supplied about 99 percent of the quantity and value of such imports during

1980-82.

Harpsichords, clavichords, and similar instruments.--U.S. imports of

harpsichords, clavichords, and similar instruments increased by 22 percent

during 1978-82, from 1,179 units to 1,435 units (table C-3); the value of such

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Digest No. C702--Con.

imports increased by 125 percent, from $0.7 million to $1.6 million. Imports

during January-June 1983, compared with January-June 1982, increased by 45

percent in quantity to 556 units from 383 units and by 43 percent in value to

$0.8 million from $0.5 million. Principal suppliers in 1982 were Korea, Japan

and the United Kingdom.

Imports of harpsichords, clavichords, and similar instruments under the

GSP increased erratically from 104 units to 803 units during 1978-82 (table

D-3). By 1982, such GSP imports accounted for 56 percent of total imports.

The value of these imports increased from $53,000 to $953,000. Korea was the

principal supplier; other suppliers were Uruguay, Brazil, the Dominican

Republic, Cameroon, and the Philippines.

Conditions of competition

Competition in the U.S. market for pianos is based on a variety of

factors, the most important of which are price; perceived quality in terms of

tone, tuning stability, workmanship, beauty, and durability; styling; brand

name; availability; and service. Each brand of imported and domestically

produced pianos has its advantages. Some imports offer price advantages over

U.S.-made pianos in some models, particularly grands. The continental styling

of uprights and the polyester finish used on both uprights and grands are also

viewed as an advantage for the imported pianos in appealing to a segment of

the market. Some piano purchasers feel that U.S.-produced pianos have a more

mellow tone, need voicing less often, and stand up to U.S. climate variations

better than imports; other consumers prefer the sharper tones of some brands

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Digest No. C702--Con.

from the Orient. Imports are aimed at establishing market niches in the

larger, professional quality uprights and lower priced grands, and offer

styling and the polyester finish that is available only on a limited basis

from U.S. producers. However, when all of the factors are taken into account,

imported and domestically produced pianos are extremely competitive.

In addition, pianos produced in Korea benefit from labor rates lower than

those in the United States. This is a factor which is more significant in the

production of grands, and enables many Korean-produced grand pianos to sell at

wholesale prices significantly lower than those of U.S.-made grand pianos.

For grand pianos measuring from 5'6" to 6'1", the most popular sizes, the

Korean-made pianos were priced * * *

Demand for harpsichords, clavichords, and similar instruments is

essentially one for a relatively high-priced, labor intensive musical

instrument for use by classical enthusiasts interested in reproducing the

exact sounds of period music and as collectors' items. Although interest in

period music has increased, the instruments are purchased on a sporadic basis.

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Digest No. C702--Con.

Position of interested parties

The petitioner for removal of GSP eligibility for pianos from Korea is

the National Piano Manufacturers Association of America, Inc. (NPMA). NPMA is

an industry trade association comprised of U.S. firms which manufacture pianos

and supply piano parts, and whose members account for approximately 90 percent

of U.S. piano production. NPMA submits that continued GSP treatment for

pianos from Korea would harm the U.S. industry by maintaining an unnecessary

competitive price advantage for Korean piano manufacturers in the U.S. market.

Importers opposed to removal of GSP eligibility include Daewoo America,

Samick America Corp., and Young Chang America, Inc. These importers account

for nearly all the imports of pianos from Korea. Submissions by the importers

state that removal of GSP eligibility for Korean-made pianos would not benefit

the American piano industry. Korean pianos are most similar in styling to

Japanese pianos and any decline in imports from Korea would benefit the

Japanese who have greater brand name recognition. Further, the removal of GSP

benefits would injure the American consumer by restricting the availability of

less expensive piano models.

CONFIDENTIAL

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Digest No. C702--Con.

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Digest No. C702--Con.

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Digest No. C702--Con.

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Digest No. C702--Con.

Table A-1.--Upright pianos: U.S. producers' shipments of U.S.-made pianos, imports for consumption, exports of domestic merchandise, and apparent consumption, 1978-82

uantit in units• value in thousands of °liars• unit value in dollars

Producers' Ratio of imports to--

: • .Exports : Apparent : ;Imports shipments • :consumption: Consumption

: Producers'

Quantity

1978 : 215,574 : 18,450 : 18,481 : 234,024 : 7.9 : 8.6 1979 : 208,103 : 16,842 : 19,739 : 224,945 : 7.5 : 8.1 1980 : 168,080 : 15,605 : 19,345 : 183,605 : 8.5 : 9.3 1981 : 165,314 : 18,812 : 20,284 : 184.126 : 10.2 : 11.4 1982 : 143,336 : 23,830 : 11,217 : 167,166 : 14.3 : 16.6

January- : : : : : June : : : :

1982 : 76,129 : 13,361 : 4,935 : 89,490 : 14.9 : 17.6 1983 : 70.784 : 11.319 : 4,481 : 82.103 : 13.8 : 16.0

Value

1978 : 170,737 : 12,242 : 13,566 : 182,979 : 6.7 : 1979 : 177,718 : 12,513.: 17,082 : 190,231 : 6.6 : 1980- 162,112 : 11,405 : 19,245 : 173,517 : 6.6 : 1981 : 171,787 : 16,727 : 21,330 : 188,514 : 8.9 : 1982 : 158,986 : 23,172 : 12,739 : 182,158 : 12.7 :

January- : : : : : : June : : : : : :

1982 : 82,019 : 12,613 : 5,880 : 94,632 : 13.3 : 1983 : 80.232 : 11,278 : 4,484 : 91.510 : 12.3 :

7.2 7.0 7.0 9.7

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Unit value

• 1978 : $792 : $664 : $734 : $782 : - : 1979 : 854 : 743 : 865 : 846 : - : 1980 : 964 : 731 : 995 : 945 : - : 1981 : 1,039 : 889 : 1,052 : 1,024 : - : 1982 : 1,109 : 972 : 1,136 : 1,090 : - :

January- : : : : : : June : : : : : :

1982 : 1,077 : 944 : 1,192 : 1,057 : - : 1983 : 1,133 : 996 : 1,001 : 1,115 : -

Source: Producers' Shipments of U.S.-made pianos, compiled from data submitted in response to questionnaires of the U.S. International Trade Commission and from data supplied by the National Piano Manufacturers Association of America; imports compiled from official statistics of the U.S. Department of Commerce; exports compiled and computed from official statistics of the U.S. Department of Commerce.

Year

shipments •

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Digest No. C702--Con.

Table A-2.--Grand pianos: U.S. producers' shipments of U.S.-made pianos, imports for consumption, exports of domestic merchandise, and apparent consumption, 1978-82

(Quantity in units; value in thousands of dollars; unit value in dollars)

Ratio of imports to-- : Producers' • • : Apparent : Year 'Imp rts ' : shipments :

Exports -43 :consumption: : .Producers' : Ptoducers'

• •

• shipments

• •

Quantity

1978------: 9,703 : 9,575 : 771 : 19,278 : 49.7 : 98.7 1979------: 9,940 : 10,347 : 822 : 20,207 : 51.0 : 104.1 1980---- 8,222 : 9,754 : 806 : 17,976 : 54.3 : 118.6 1981------: 7,978 : 11,284 : 840 : 19,262 : 58.6 : 141.4 1982------: 6,048 : 14,095 : 464 : 20,143 : 70.0 : 233.1 January- :

June--: • 1982----: 3,505 : 7,628 : 204 : 11,133 : 68.5 : 217.6 1983----: 2,879 : 7,355 : 185 : 10,234 : 71.9 : 255.5

Value

• 1978 33,520 : 19,147 : 565 : 52,667 : 36.4 : 57.1 1979------: 40,395 : 22,396 : 712 : 62,791 : 35.7 : 55.4 1980------: 39,565 : 20,080 : 802 : 59,645 : 33.7 : 50.8 1981 41,110 : 26,812 : 889 : 67,922 : 39.5 : 65.2 1982 34,398 : 35,469 : 531 : 69,867 : 50.8 : 103.1 January- :

June : • 1982 : 18,470 : 18,439 : 245 : 36,909 : 50.0 : 99.8 1983 : 16,959 : 18,056 : 187 : 35,015 : 51.6 : 106.5

Unit value

1978 $3,510 : $1,948 : $733 : 2,732 : - :

1979 4,044 : 2,165 : 866 : 3,107 : 1980 4,812 : 2,059 : 995 : 3,318 : 1981 5,123 : 2,376 : 1,058 : 3,526 : - :

1982 : 5,688 : 2,516 : 1,144 : 3,469 : - :

January- : June :

1982 : 5,270 : 2,417 : 1,201 : 3,315 : 1983 : 5,891 : 2,455 : 1,010 : 3,421 : - :

Source: Producers' shipments of U.S.-made pianos, compiled from data submitted in response to questionnaires of the U.S. International Trade Commission and from data supplied by the National Piano Manufacturers Association of America; imports'empiled from official statistics of the U.S. Department of Commerce; exports compiled and computed from official statistics of the U.S. Department of Commerce.

Page 354: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

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Page 358: PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED ...

21

Digest No. C702--Con.

Table D-1.--Upright pianos: U.S. imports under the GSP, 1978-82, January-June 1982 and January-June 1983

Source • 1978 • 1979 • 1980 • 1981 • January-June--

1982

Quantity (units)

Korea : Taiwan : Israel- : Hong Kong-- :

Total :

- • - • - : - • - •

- : -: - • - : - :

510 : -:

18 :

- : 528 :

2,641 :

- •

5 :

32 •

2,678 :

4,220 :

34 :

3 :

- :

4,257 :

1,889 : -:

3 :

- •

1,892 :

3,428

3,428

Value (1,000 dollars)

Korea : Taiwan--------- Israel : Hong Kong- :

Total- :

- : - : - : - : - :

- • - : - • - : - :

395 :

- :

27 :

- : 422 :

2,493 :

- :

7 :

15 :

2;515 :

4,199 :

42 :

5 :

- :

4,246 :

1,828 :

- :

5 : -

1,833 :

3,325

3,325

Unit value

Korea Taiwan Israel Hong Kong

Average

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- : - : - • -: - :

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- :

1,500 : -:

799 :

$944 :

- : 1,400 :

469 :

939 :

$995 :

1,235 :

1,667 :

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997 :

$968 :

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- :

969 :

$970

970

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22

Digest No. C702--Con.

Table D-2.--Grand pianos: U.S. imports under the GSP, January-June 1982 and January-June 1983

1978-82,

Source 1978 • 1979 • 1980 1981 : 1982 : January-June--

1982 ! 1983

Quantity (units)

Korea : Taiwan :

1,147 : -:

1,080 : 841 : 1,686 :

-: -: -: 3,716

14 : :

1,529 12

: :

3,153 2

Total : 1,147 : 1,080 : 841 : 1,686 : 3,730 : 1,541 : 3,155

Value (1,000 dollars)

Korea : Taiwan-- -

2,011 : -:

2,054 : 1,593 : 3,475 :

-: -: -: 8,088

26 : :

3,494 21

: :

6,069 3

Total 2,011 : 2,054 : 1,593 : 3,475 : 8,114 : 3,515 : 6,072

Unit value

Korea : Taiwan :

Average :

:

$1,753 :

- :

. . .

$1,902 : $1,894 : $2,061 :

- : - : - : $2,177 1,857

. : : $2,285 1,750

. : :

$1,925 1.500

1,753 : 1,902 : 1,894 : 2,061 : 2,175 : 2,281 : 1,925

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23

Digest No. C702--Con.

Table D-3.--Harpsichords, clavichords, and similar instruments, n.s.p.f.: U.S. imports under GSP, 1978-82, January-June 1982 and January-June 1983

Source • : 1978 .

• 1979 • 1980 • 1981 •

January-June-- 1982 .

• .

1982 • 1983

Quantity (units)

: : • . • : Korea : 104 : - : 4 : 51 : 803 : 118 : 365 Uruguay : - : - : 3 : - : - : - : - Dom. Rep : - : 500 : - : - : - : - : - Brazil : -: 1 : -: -: -: -: Cameroon : - : — : - : 152 : - : - : - Phil. Rep - : - : 7 : - :

Total : 104 : 501 : 14 : 203 : 803 : 118 : 365

Value (1,000 dollars)

Korea : 53 : - : 3 : 56 : 953 : 135 : 447 Uruguay : - : - : 7 : - : - : - : - Dom. Rep : -: 5: -: -: -: -: - Brazil : -: 1 : -: -: -: -: Cameroon : - : - : - : 1/ : - : - : Phil. Rep - : - : 1/ : - :

Total : 53 : 6 : 10 : 56 : 953 : 135 : 447

Unit value

Korea : $510 : - : $750 : $1,098 : $1,187 : $1,144 : $1,225 Uruguay - : - : 2,333 : - : - : - : Dom. Rep : - : $10 : - : - : - : - : Brazil : - : 1,000 : - : - : - : - : - Cameroon : - : - : - : - : - : - Phil. Rep- : - : - : - : - :

Average : 510 : 12 : 714 : 278 : 1,187 : 1,144 : 1,225

1/ Less than 500.

Source: Compiled from official statistics of the U.S. Department of Commerce.

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APPENDIX A

U.S. Trade Representative Request of July 21, 1983, for Probable Effect Advice

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THE UNITED STATES TRADE REPRESENTATIVE

WASHINGTON

20506

July 21, 1983

The Honorable Alfred E. Eckes, Jr. Chairman United States International Trade

Commission 701 E Street, N.W. Washington, D.C. 20436

Dear Chairman Eckes:

In accordance with sections 503(a) and 131(a) of the Trade Act of 1974 (the Act), and pursuant to the authority of the President delegated to the United States Trade Representative by sections 4(c) and 8(c) and (d) of Executive Order 11846 of March 31, 1975, as amended, I hereby notify the International Trade Commission that the articles identified in Part A of the attached list are being considered for designation as eligible articles for purposes of the United States Generalized System of Preferences (GSP), set forth in Title V of the Act.

Pursuant to sections 503(a) and 131(a) of the Act, I request that the Commission provide its advice, with respect to each article listed in Part A of the attached list, as to the probable economic effect on United States industries producing like or directly competitive articles and on consumers of the elimination of United States import duties under the GSP. The Commission, in Investigation No. TA-503 (a)-7, recently submitted advice on several items in the attached list. In these cases, it will be necessary to submit new advice only for those items for which the Commission would now modify the advice reported in that investigation.

In providing its advice, I request the Commission to assume that benefits of the GSP would not apply to imports that would be excluded from receiving such benefits by virtue of

A-2

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2

the "competitive-need" limits specified in section 504 (c) of the Act.

At the direction of the President, pursuant to section 332 (g) of the Tariff Act of 1930, I further request, with respect to each article listed in Parts B and C of the attached list, that the Commission provide its advice as to the probable economic effect on United States industries . producing like or directly competitive articles and on consumers (1) of the removal of articles in Part B of the list from eligibility for duty-free treatment under the GSP and (2) of the removal of the GSP duty-free status from articles in Part C of the list which are imported from the respective countries specified.

Section 504(d) of the Act exempts from one of the competitive-need limits in section 504(c) articles for which no like or directly competitive article was being produced in the United States on the date of enactment of the Trade Act of 1974. Accordingly, pursuant to the authority of section 332(g) of the Tariff Act of 1930, I request that the Commission provide advice with respect to whether products like or directly competitive with those described in Part A of the attached list were being produced in the United States on January 3, 1975.

Under the provisions of the Act, the Commission has six months to provide the advice requested herein on Part A of the attached list. However, it would be greatly appreciated if all of the requested advice could be provided by November 15, 1983, in order to permit that any action taken on these items be included in the Executive Order which should be issued in March 1984.

WEB:stmbw

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OFFICE, OF UNITED STATES TRADE REPRESENTATIVE A-4

Notice of Public Hearings

Summary: The purpose of this notice is (1) to announce the acceptance for review of petitions to modify the list of articles eligible to receive duty-free treatment under the Generalized System of Preferences -(GSP); (2) to announce the timetable for public hearings to consider petitions accepted for review; and (3) to announce that the list of articles herein is to be sent by the United States Trade Representative to the United States International Trade Commission with respect to designating articles as eligible for GSP.

I. Acceptance of Petitions for Review

Notice is hereby given of acceptance for review of petitions requesting modification of the list of articles eligible to receive duty-free treatment under the GSP, as provided for in Title V of the Trade Act of 1974 (19 U.S.C. 2461-2465). These petitions were submitted, and will be reviewed, pursuant to regulations codified at 15 CFR, part 2007.

1. Requests for "Graduation" of Products from Countries

As part of this product review, a special effort will be made to include on the GSP list products of interest to low income beneficiary countries. In addition, requests to add products to or remove them from the list of articles eligible for GSP duty-free treatment will be evaluated in accordance with the "graduation" policy. In considering GSP eligibility for products, limitations on GSP benefits will be considered for the more economically advanced beneficiary developing countries in specific products where it is determined that they have demonstrated international competitiveness. This approach will help to ensure that a greater share of GSP benefits is reserved for less competitive beneficiaries. Three criteria will be taken into account when any such "graduation" action is considered: the development level of individual beneficiary countries, their competitive position in the product concerned, and the overall economic interests of the United States. The GSP Subcommittee will review information for the relevant United States industry as enumerated in 15 CFR 2007.1 (5) when considering the removal of any beneficiary developing country from GSP eligibility with respect to a specific designated product or from proposed GSP eligibility with respect to a petition requesting the designation of a new item.

Product designations announced at the conclusion of the review process, therefore, may be made on a differential basis. This means that certain beneficiary developing countries may not be designated for GSP benefits on certain products even though those countries are not excluded under the competitive need provisions set forth in Section 504(C)

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A-5

(1) of the Trade Act of 1974, as amended. It also is possible to withdraw GSP treatment from certain beneficiary developing countries rather than remove the product entirely from GSP coverage. The competitive need limitations of the program will continue to apply to countries remaining eligible for GSP treatment with respect to particular products.

The implementation of this policy is designed to provide increased opportunities for less developed, less competitive beneficiary developing countries to benefit from GSP treatment. In accordance with U.S. trade policy toward developing countries, this action is designed also to promote continued graduation of more advanced developing countries from GSP benefits in products where they have demonstrated competitiveness. Over time, such action should provide a more balanced distribution of GSP benefits among developing countries by helping to shift more of the program's benefits to the less competitive developing countries.

For additional information on this policy, refer to the Report to the Congress on the First Five Years' Operation of the U.S. Generalized System of Preferences (GSP), transmitted by the President of the United States on April 17, 1980. A copy of the report is available for inspection at the GSP Information Center, - Office of the United States Trade Representative, 600 Seventeenth Street, N.W., Room 316, Washington, D.C. 20506. Information also can be obtained by calling the GSP Information Center at (202) 395-6971.

2. Information Subject to Public Inspection

Information submitted in connection with the hearings will be subject to public inspection by appointment with the staff of the GSP Information Center, expect for information granted "business confidential" status pursuant to 15 CFR 2003.6 and 15 CFR 2006.10. Parties submitting briefs or statements containing confidential,information must indicate clearly on the cover page of each of the twenty copies submitted and on each page within the document, where appropriate, that confidential material is included. - Non-confidential summaries of all confidential material must be submitted in twenty copies, in English, at the same time that confidential submissions are filed.

3. Communications

All communications with regard to these hearings should be addressed to: GSP Subcommittee, Office of the United States Trade Representative, 600 Seventeenth Street, N.W., Room 316, Washington, D.C. 20506. The telephone number of the Secretary of the GSP Subcommittee is (202) 395-6971. Questions may be directed to any member of the staff of the GSP Information Center.

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3

A-6

Acceptance for review of the petitions listed herein does not indicate any opinion with respect to a disposition on the merits of the petitions. Acceptance indicates only that the listed petitions have been found to be eligible for review by the GSP Subcommittee and the TPSC, and that such reviews will take place. -

II. Deadline for Receipt of Requests to Participate in the Public Hearings

The GSP Subcommittee of the Trade Policy Staff Committee invites submissions in support of or in opposition to any petition contained in this notice. All such submissions should conform to 15 CFR 2007, particularly parts 2007.0, 2007.1(1), 2007.1(2), and 2007.1(3).

Requests to present oral testimony in connection with public hearings should be accompanied by twenty copies, in English, of all written briefs or statements and should be received by the Chairman of the GSP Subcommittee no later than the close of business Friday, September 16, 1983. Oral testimony before. the GSP Subcommittee will be limited to five minute presentations that summarize or supplement information contained in briefs or statements submitted for the record. Post-hearing briefs or statements will be accepted if submitted in twenty copies, in English, no later than close of business Friday, October 14, 1983. Rebuttal briefs should be submitted in twenty copies, in English, by close of business Friday, October 28, 1983.

Parties not wishing to appear may submit written briefs or statements in twenty copies, in English, in connection with articles under consideration in the public hearings, provided that such submissions are filed by October 14 and conform with the regulations cited above.

Hearings will be held on September 26 and 28, beginning at 10:00 A.M. in the AmphitheAter of the Federal Home Loan Bank Board, 1700 G Street, N.W., Washington, D.C. The hearings will be open to the public and transcripts will be made available for public inspection or purchase from the reporting company. •

III. List of Articles Which May Be Considered for Designation as Eligible Articles for Purposes of the GSP and On Which the United States International Trade Commission Will Be Asked to Provide Advice

1. In conformity with Sections 502(a) and 131(a) of the Trade Act of 1974 as amended (19 U.S.C. 2463 (A) and 2151 (A)), notice is hereby given that the articles listed herein may be considered for designation as eligible articles for purposes of the GSP.

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4 A-7

An article which is determined to be import sensitive in the context of the GSP cannot be designated as an eligible article. Recommendations with respect to the eligibility of any listed article will be made after public hearings have been held and advice has been received from the U.S. International-Trade. Commission on the probable effects of GSP designation on industries producing like or directly competitive articles and on consumers.

2. Advice of the United States International Trade Commission

On behalf of the President and in accordance with Sections 503(A) and 131(A) of the Trade Act of 1974 as amended, the United States International Trade Commission is being furnished with a list of the articles published herein for the purpose of securing from the Commission its advice on the probable economic effect on United States industries producing like or directly competitive articles, and on consumers, of the designation of such articles as eligible articles for purposes of the GSP.

Frederick L. Montgomery Chairman, Trade Policy Staff Committee

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A- 8

Annex I

Petitions Accepted for Reviev

TSUS or : • TSUSA Article Petitioner ' item No. •

Case No.

[The bracketed language in this list has been • included only to clarify the scope of the numbered

items which are being considered, and such language is not itself intended to describe articles which are under consideration.)

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences.

Garden and field seeds:

83-1 126.01 Alfalfa Government of Chile

Berries, fresh, or prepared or preserved: [Fresh or in brine; dried; frozen) Otherwise prepared or preserved:

83-2 146.85 Strawberries

do.

Mustard, ground or prepared: [Ground)

83-3 161.60 Other

Cyclic organic chemical products in any physical form having a benzenoid, quinoid, or modified benzenoid structure, not provided for in subpart A or C of part 1 of schedule 4 of the Tariff Schedules of the United States:

[Articles provided for in items 402.00 thru 402.32)

Other: [Hydrocarbons; halogenated hydrocarbons) Other hydrocarbon derivatives:

83-4 403.05 p-Toluenesulfonyl chloride

Alcohols, phenols, ethers (including epoxides and acetals), aldehydes, ketones, alcohol peroxides, ether peroxides, ketone peroxides, and their derivatives:

83-5 403.16pt. 2,6-01.-tert-butyl-p-cresol

Carboxylic acids, anhydrides, balides, acyl peroxides, peroxyacids, and their derivatives:

83-6 404.04 Benzoic acid

Government of Peru

Government of Korea

Cydsa Group, Mexico

Government of Colombia

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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Annex A-9

Petitions Accepted for Review

Came No.

TSUS or TSUSA 1/ it No.

Article Petitioner

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences (con.)

Cyclic organic chemical products, etc. (con.): Other (con.):

Amines having one or more oxygen functions, and their derivatives:

(Articles provided for in items 404.92 thru 405.02)

Other: (Products provided for in the Chemical Appendix to the Tariff Schedules)

83-7 405.09pt. Potassium-D-(-)-N-(1-methoxycarbonyl- propen-2-y1)-a-amino-p-hydroxy- phenylacetate (Dane salt) Kaneka America Corp.,

New York, NY

Heterocyclic compounds and their der-ivatives (including lactones and lactams but excluding epoxides with three membered rings, anhydrides and imides of polybasic acids, and cyclic esters of polyhydric alcohols with polybasic acids):

83-8 406.16 2,2'-Dithiobisbenzothiazole Cydsa Group, Mexico, Government of Mexico

(Articles provided for in items 406.20 thru 406.32)

Other: (Articles provided for in item 406.36)

Other: 83-9 406.40pt. 1,2-Dihydro-2,2,4-tri-

methylguinoline polymer; 2-Mercaptobenzothiazole; N-(Oxydiethylene)benzo-thiazole-2-sulfenamide Cydsa Group, Mexico,

Government of Mexico

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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A-10 Annex I

Petitions Accepted for Review

Case TSUS or No. TSUSA 1/ : Article Petitioner

item No. :

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences (con.)

Cyclic organic chemical products, etc. (con.): Other (con.):

Sulfonamides, sultones, sultams, and other organic compounds:

Sulfonamides:

83-10 406.48pt. 4-Amino-6-chloro-m-bezene- disulfonamide Pliva of Zagreb,

Yugoslavia

Products suitable for medicinal use, and drugs: Obtained,. derived, or manufactured in whole or in part from any product provided for in sub- part A or 8 of part 1 of schedule 4 of the Tariff Schedules of the United States:

Drugs: (Articles provided for in items 410.68 thru 411.27)

Other: (Alkaloids and their salts and other derivatives)

Antihistamines, including those chiefly used as antinauseants:

(Articles provided for in item 411.52)

Other:

83-11 411.56pt. Meclizine hydrochloride do.

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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A-11 As I

Petitions Accepted for Review

TSUS or TSUSA lj Article Petitioner item No.

Case No.

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences (con.)

Products suitable for medicinal use, etc.. (con.): Obtained, derived, or manufactured, etc. (con.):

Drugs (con.): Other (con.):

Anti-infective agents: Anti-infective sulfonamides:

(Articles provided for in items 411.80 and 411.81)

Other: 83., 12 411.83pt. Acetylsulfisox-

azole; sulfamer-azine, sodium Pliva of Zagreb,

Yugoslavia

(Articles provided for in items 411.98 thru 412.67)

Other: 83-13 412.69pt. Chlorpropamide;

chlorothiazide do.

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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A- 12 Annex I

Petitions Accepted for Review

Case No.

TSUS or TSUSA 1/ item No.

Article Petitioner

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences (con.)

Glass (whether or not containing wire netting), in rectangles, not ground, not polished and not other-wise processed, weighing aver 4 oz. per sq. ft.:

(Cast or rolled glass) Other, including blown or drawn glass, but excluding pressed or molded glass:

Colored or special glass:

83-14 542.57 Weighing over 4 oz. but not over 12 oz. per sq. ft Government of Mexico

83-15 542.67 Weighing over 12 oz. but not over ' 16 oz. per sq. ft do.

Weighing aver 16 oz. but not over 28 oz. per sq. ft.:

83-16 542.71 Measuring not over 40 united inches do.

83-17 542.73 Measuring over 40 but not over 60 united inches do.

83-18 542.75 Measuring over 60 but not over 100 united inches do.

83-19 542.77 Measuring over 100 united inches do.

Weighing over 28 oz. per sq. ft.:

83-20 542.92 Not over 2-2/3 sq. ft. in area do.

83-21 542.94 Over 2-2/3 but not over 7 sq. ft. in area do.

83-22 542.96 Over 7 but not over 15 sq. ft. in area do.

83-23 542.98 Over 15 sq. ft. in area do.

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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A- 13 Amex I

'NW

Petitions Accepted for Review

case TSUS or , ;

No. TSUSA 1/ item No.

Article Petitioner

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences (con.)

Glass (including plate glass and float glass), whether or not containing wire netting, in rectangles, ground or polished on one or both surfaces in whole or in part, but not further

83-24 83-25

543.21 543.23

processed: Ordinary glass:

Not containing wire netting: Measuring not over 15/32 inch in thickness:

Not over 2-2/3 sq. ft. in area Over 2-2/3 but not over 7 sq. ft. in area

Government of Mexico

am.

83-26 543.27 Over Z sq. ft. in area do. 83-.27 543.31 Measuring aver 15/32 inch in thickness do.

Colored or special glass: Measuring not over 15/32 inch in thickness:

83-28 543.61 Not over 2-2/3 sq. ft. in area do. 83-29 543.63 Over 2-2/3 but not over 7 sq. ft. .

in area do.

83-30 543.67 Over 7 sq. ft. in area do. 83-31 543.69 Measuring aver 15/32 inch in thickness do.

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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Annex I A-14

Petitions Accepted for Review

TSUS or TSUSA 1/ : Article Petiti-oner item No. :

Case No.

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences (con.)

Radiotelegraphic and radiotelephonic transmission and reception apparatus; radiobroadcasting and television transmission and reception apparatus, and television cameras; record players, phonographs, tape recorders, dictation recording and transcribing machines, record changers, and tone arms; all of the foregoing, and any combination thereof, whether or not incorporating clocks or other timing apparatus, and parts thereof:

Radiotelegraphic and radiotelephonic transmis- sion and reception apparatus; radiobroadcasting and television transmission and reception apparatus, and parts thereof:

Television apparatus, and parts thereof: [Television receivers and parts thereof) Other television apparatus and parts thereof:

83-32 685.1915 Antennas Government of Malaysia

Dolls, and parts of dolls including doll clothing: (Doll clothing imported separately) Other:

Dolls (with or without clothing): [Stuffed)

83-33 737.24pt. Handmade, of wood or clay Government of Thailand

Buttons: 83-34 745.32 Of acrylic resin, of polyester resin, or

of both such resins Government of Colombia, Government of Malta

Button blanks and molds, and parts of buttons: [Button blanks of casein)

83-35 745.42 Other Government of Colombia

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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Annex I

Petitions Aceelited for Review

TSUS or ! TSUSA V : Article Petitioner

' it No. • :

Case No.

B. Petitions to remove products from the list of eligible articles for the Generalized System of Preferences.

Products obtained, derived, or manufactured in whole or in part from any product provided for in subpart A or B of part 1 of schedule 4 of the Tariff Schedules of the United States:

Pesticides: Not artifically mixed:

(Fungicides] Herbicides (including plant growth regulators):

(Articles provided for in item

Other: 83-36 408.22pt. 2,4-Dinitro-6-sec-butyl-

phenol Vertac Chemical Corp., Memphis, TN

83-37 425.1020

83-38 425.74

83-39 610.62

83-40 610.63

83-41 610.65

83-42 610.66

Nitrogenous compounds: Cyanuric chloride, melamine, and other compounds containing a triazine ring:

Melamine

Acids: Citric

Pipe and tube fittings of iron or steel: Cast-iron fittings, not malleable:

For cast-iron pipe: Cast iron, other than alloy cast iron

Alloy cast iron

Not for cast-iron pipe: Cast iron, other than alloy cast iron Alloy cast iron

Melamine Chemicals, Inc., Donaldsonville, LA

Pfizer, Inc., New York, NY

American Pipe Fittings Association, iiashington, D.C.

do.

do. do.

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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Annex A-16

Petitions Accepted for Review

TSUS or TSUSA 1/ : Article Petitioner item No. :

Case No.

B. Petitions to remove products from the list of eligible articles for the Generalized System of Preferences (con.)

Pipe and tube fittings of iron or steel (con.): Cast-iron fittings, malleable:

Not advanced in condition by operations or processes subsequent to the casting process:

83-43 610.70 Cast iron, other than alloy cast iron American Pipe Fittings Association, Washington, D.C.

83-44 610.71 Alloy cast iron do.

83-45 610.74 Advanced in condition by operations or processes subsequent to the casting process do.

83-46 610.80 Other fittings do.

Furniture, and parts thereof, not specially provided for:

Of rubber or plastics: (Of reinforced or Laminated plastics)

83-47 727.50 Other Waterbed Hanufacturers Association, . Washington, D.C.,

General Foam Plastics Corp., Norfolk, VA

Pillows, cushions, mattresses, and similar furn-ishings, all the foregoing, whether or not fitted with covers and with or without electrical heating elements, fitted with springs, stuffed, or both, or of expanded, foamed, or sponge rubber or plastics:

[Of cotton) Other:

83-48 727.8630 Mattresses Waterbed Manufacturers Association, Washington, D.C.

Fishing reels and parts thereof: Reels:

83-49 731.20 Valued not over $2.70 each Zebco' Division Brunswick Corp., Tulsa, OK

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202).

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Annex I A-17

Petitions Accepted for Reviev

TSUS or TSUSA 1/ : Article Petitioner item No. •

Case No.

C. Petitions to remove duty-free status from a beneficiary developing country for a product on the list of eligible articles for the Generalized System of Preferences.2/

Containers (except ampoules) chiefly used for the packing, transporting, or marketing of merchan-dise, and containers chiefly used for home canning and preserving, all the foregoing, of glass, with or without their closures and whether or not coated with plastics materials:

[Ordinarily used for perfume or other toilet preparations, or if fitted with or designed for use with ground glass stoppers) Other:

83-50 545.21 (Mexico)

Holding not over 1/4 pint Glass Packing Institute, Washington, D.C.

83-51 545.25 Holding over 1/4 pint but not over 1 pint do. (Mexico)

83-52 545.27 Holding over 1 pint do. (Mexico)

Articles not specially provided for of a type used for household, table, or kitchen use; toilet and sanitary wares; all the foregoing and parts thereof, of metal:

Articles, wares, and parts, of base metal, not coated or plated with precious metal:

Of iron or steel: Enameled or glazed with vitreous glasses:

83-53 654.02pt. Porcelain-on-steel cooking (Taiwan) and kitchen ware General Housewares, Corp.,

Stanford, CT

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202). 2/ The country or countries named are those beneficiary developing countries specified by the petitioner. While the Trade Policy Staff Committee's (TPSC) review will focus on those countries, the TPSC reserves the right to address removal of GSP status for countries other than those specified by the petitioner.

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Annex I A-18

Petitions Accepted for Review

TSUS or ! TSUSA 1/ : Article Petitioner item No. :

Case No

C. Petitions to remove duty-free status from a beneficiary developing country for a product on the list of eligible articles for the Generalized System of Preferences (con.)2/

Centrifuges; filtering and purifying machinery and apparatus (other than filter funnels, milk strainers, and similar articles), for liquids or gases; all the foregoing and parts thereof:

[Centrifuges and parts thereof; Other:

[Cast-iron (except malleable cast-iron) parts, not alloyed and not advanced beyond cleaning, and machined only for the removal of fins, gates, sprues, and risers or to permit location in finishing machinery)

83-54 661.95pt. Portable air purifiers, not specially (Hong Kong, designed for industrial use, and Taiwan) filters thereof

Machine tools: Metal-working machine tools:

Boring, drilling, and milling machines, including vertical turret lathes:

Drilling machines: (Used or rebuilt)

83-55 674.3227 Other, valued under $2,500 each (Taiwan)

Associated Mills, Inc., Chicago, IL

Wilton Corp., Des Plaines, IL

83-56 683.05 (Republic of Korea)

Storage batteries and parts thereof: Lead-acid type storage batteries, and parts thereof:

12-volt batteries Yuasa-General Battery Corp., Reading, PA

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202). 2/ The country or countries named are those beneficiary developing countries specified by the petitioner. While the Trade Policy Staff Committee's (TPSC) review will focus on those countries, the TPSC reserves the right to address removal- of GSP status for countries other than those specified by the petitioner.

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Annex I A-19

Petitions Accepted for Reviwr

TSUS or : TSUSA 1/ : Article Petitioner it No. :

Case No.

C. Petitions to remove duty-free status from a beneficiary developing country for a product on the list of eligible articles for the Generalized System of Preferences (con.)2/

Insulated (including enamelled or anodized) electrical conductors, whether or not fitted with connectors (including ignition wiring sets, Christmas-tree lighting sets with or without their bulbs, and other wiring sets):

With fittings:

83-57 688.12 ignition wiring sets and wiring sets (Taiwan)

designed for use in motor vehicles and craft provided for in part 6 of schedule 6 of the Tariff Schedules of the United States National Industries, Inc.,

Montgomery, AL

Photographic cameras (other than motion-picture cameras), photographic enlargers, and combination camera-enlargers:

[Having a photographic lens valued over 50 percent of the value of the article) Other cameras:

Fixed-focus: Hand-held type:

110 cameras:

83-58 722.1205 With built-in electronic (Hong Kong, stroboscopic flash National Association of Republic Photographic Manufac- of Korea, curers, Inc., Taiwan) Harrison, NY

83-59 722.1212 Other do. (Hong Kong, Republic of Korea, Taiwan)

Other: [Instant-print cameras)

83-60 722.1225 Other do. (Hong Kong, RepUblic of Korea, Taiwan)

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202). 2/ The country or countries named are those benef.iciary developing countries specified by the petitioner. While the Trade Policy Staff Committee's (TPSC) review will focus on those countries, the TPSC reserves the right to address removal of GSP status for countries other than those specified by the petitioner.

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Ames A-20

Petitions Accepted for Revive

Case • TSUS or ' No TSUSA 1/ Article Petitioner

item No.

C. Petitions to remove duty-free status from a beneficiary developing country for a product on the list of eligible articles for the Generalized System of Preferences (con.)21

Stringed musical instruments: Pianos (including player pianos, whether or not with keyboards): harpsichords, clavichords, and other keyboard string instruments:

83-61 725.01 Pianos (including player pianos, whether (Republic or not with keyboards), except grand of Korea) pianos National Piano Manufac-

turers Association of America, Inc., Chicago, IL

83-62 725.03 Other do. (Republic of Korea)

1/ Tariff Schedules of the United States Annotated (19 U.S.C. 1202). 2/ The country or countries named are those beneficiary developing . countries specified by the petitioner. While the Trade Policy Staff Committee's (TPSC) review will focus on those countries, the TPSC reserves the right to address removal of GSP status for countries other than those specified by the petitioner.

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APPENDIX B

U.S. International Trade Commission Notice of Investigation and Hearing

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B-2

UNITED STATES INTERNATIONAL TRADE COMMISSION Washington, D.C.

(TA-503(a)-11 and 332-166)

PRESIDENT'S LIST OF ARTICLES WHICH MAY BE DESIGNATED OR MODIFIED AS ELIGIBLE ARTICLES FOR PURPOSES OF THE U.S. GENERALIZED SYSTEM OF PREFERENCES

AGENCY: United States International Trade Commission

ACTION: In accordance with the provisions of sections 503(a) and 131(b) of the Trade Act of 1974 (hereinafter referred to as "the Act") (19 U.S.C. §§ 2463(a) and 2151(b)) and section 332(g) of the Tariff Act of 1930 (19 U.S.C. § 1332(g)), the Commission has instituted investigation No. TA-503(a)-11 and 332-166 for the purpose of obtaining, to the extent practicable, information of the kind described in section 131(d) of the Act. This information is for use in connection with the preparation of advice requested by the U.S. Trade Representative (USTR) with respect to certain listed articles as to the probable economic effect on U.S. industries producing like or directly competitive articles and on consumers of the modification of the list of articles eligible for duty-free treatment under the United States Generalized System of Preferences (GSP), set forth in Title V of the Act.

EFFECTIVE DATE: August 5, 1983

FOR FURTHER INFORMATION CONTACT: (1) Agricultural products, Mr. Robert Roeder (202-724-1170). (2) Chemical products, Mr. John Gersic (202-523-0451). (3) Minerals and metals, Mr. Larry Brookhart (202-523-0275). (4) Machinery and equipment, Mr. Aaron Chesser (202-523-0353). (5) Miscellaneous manufactures, Mr. Walter Trezevant (202-724-1719).

All of the above are in the Commission's Office of Industries. For information on legal aspects of the investigation contact Mr. William Gearhart of the Commission's Office of the General Counsel at 202-523-0487.

SUPPLEMENTARY INFORMATION: On July 27, 1983, in accordance with sections 503(a) and 131(a) of the Act and pursuant to the authority of the President delegated to the USTR by Executive Order 11846, as amended by Executive Order 11947, the USTR requested advice in four areas related to the GSP: (1) the addition of certain articles to the list of GSP eligible articles (see Annex, Part A), (2) the removal of certain articles from the GSP list (see Annex, Part B), (3) the removal of duty-free status under the GSP for certain beneficiary developing countries for certain articles ("graduation") (See Annex, Part C), and (4) a determination of whether or not certain articles are like or directly competitive with any article produced in the United States on January 3, 1975, for purposes of section 504(d) of the Act (see Annex, Part A).

For each article being considered for addition to the list of eligible articles, the Commission will advise the USTR as to the probable economic effect of the addition on U.S. industries producing like or directly competitive articles and on consumers. For each article being considered for removal or graduation, the Commission will advise the USTR as to the impact on U.S. industries producing like or directly competitive articles and on consumers of continued GSP status for the articles and countries in question.

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B-3

ln providing its advice, the USTR requested the Commission tc assume that benefits of the GSP would not apply to imports that would be excluded from receiving such benefits by virtue of the "competitive need" limitations specified in section 504(c) of the Act.

Section 504(d) of the Act exempts from one of the competitive-need limits in section 504(c) articles for which no like or directly competitive article was being produced in the United States on the date of enactment of the Act. Accordingly, pursuant to the authority of section 332(g) of . the Tariff Act of 1930, and in conformity with the delegation of authority from the President to him of Executive Order 11846 as amended by Executive Order 11947, the USTR requested that the Commission also provide advice with respect to whether products like or directly competitive with any articles contained in the TSUS(A) items in the Annex, Part A, were being produced in the United States on January 3, 1975.

A list giving detailed descriptions of the articles contained in the TSUS(A) items identified in the Annex is available upon request from the Secretary, U.S. International Trade Commission, 701 E Street NW., Washington, D.C. 20436 (202-523-5178).

The USTR announced the items which have been sent to the Commission for probable effects advice in the July 21, 1983 Federal Register (48 F.R. 33400).

Public hearing A public hearing in connection with the investigation will be held in the

Commission Hearing Room, 701 E Street NW., Washington, D.C. 20436, beginning at 10:00 a.m., e.d.t., on September 27, 1983, to be continued on September 29, 1983, if required. All persons shall have the right to appear by counsel or in person, to present information, and to be heard. Requests to appear at the public hearing should be filed with the Secretary, United States International Trade Commission, 701 E Street NW., Washington, D.C. 20436, not later than noon, September 20, 1983.

Written submissions In lieu of or in addition to appearances at the public hearing,

interested persons are invited to submit written statements concerning the investigation. Written statements should be received by the close of business on September 21, 1983. Commercial or financial information which a submitter desires the Commission to treat as confidential must be submitted on separate sheets of paper, each clearly marked "Confidential Business Information" at the top. All submissions requesting confidential treatment must conform with the requirements of section 201.6 of the Commission's Rules of Practice and Procedure (19 CFR § 201.6). All written submissions, except for confidential business information, will be made available for inspection by interested persons. All submissions should be addressed to the Secretary at the Commission's office in Washington, D.C.

By order of the Commission.

Attachment

Issued: August 9, 1983

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Annex

A. Petitions to add products to the list of eligible articles for the Generalized System of Preferences

126.01 412.69(pt) 7 543.23 146.85 542.57 543.27 161.60 542.67 543.31 403.05 542.71 543.61 403.16(pt) 1/ 542.73 543.63 404.04 542.75 543.67 405.09(pt) 2/ 542.77 543.69 406.16 542.92 685.1915 406.40(pt) 3/ 542.94 737.24(pt) 8/ 406.48(pt) 4/ 542.96 745.32 411.56(pt) 5/ 542.98 745.42 411.83(pt) 6/ 543.21

1/ 2,6-Di-tert-butyl-p-cresol 2/ Potassium-D-(-)-N-(1-methoxycarbonylpropen-2-y1)-a-amino-p-

hydroxyphenylacetate (Dane salt) 3/ 1,2-Dihydro-2,2,4-trimethylquinoline polymer; 2-Mercaptobenzothiazole;

N-(Oxydiethylene) benzothiazole-2-sulfenamide 4/ 4-Amino-6-chloro-m-bezenedisulfonamide S/ Meclizine hydrochloride 6/ Acetylsulfisoxazole; sulfamerazine, sodium 7/ Chlorpropamide; chlorothiazide 8/ Handmade dolls, of wood or clay

B. Petitions to remove products from the list of eligible articles for the Generalized System of Preferences

408.22(pt) 1/ 425.1020 425.74 610.62 610.63

610.65 610.66 610.70 610.71 610.74

610.80 727.50 727.8630 731.20

1/ 2,4-Dinitro-6-sec-butylphenol

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B-5

-2-

C. Petitions to remove duty-free status from a beneficiary developing country for a product on the list of eligible articles for the Generalized System of Preferences

545.21 (Mexico) 545.25 (Mexico) 545.27 (Mexico) 654.02(pt) (Taiwan) 1/ 661.95(pt) (Hong Kong, Taiwan) 2/ 674.3227 (Taiwan) 683.05 (Republic of Korea) 688.12 (Taiwan) 722.1205 (Hong Kong, Republic of Korea, Taiwan) 722.1212 (Hong Kong, Republic of Korea, Taiwan) 722.1225 (Hong Kong, Republic of-Korea, Taiwan) 725.01 (Republic of Korea) 725.03 (Republic of Korea)

1/ Porcelain-on-steel cooking and kitchen ware 2/ Portable air purifiers, not specially designed for industrial use, and

filters thereof

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APPENDIX C

List of Witnesses Appearing at the Commission Hearing

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C-2

TENTATIVE CALENDAR OF PUBLIC HEARING

Those listed below appeared as witnesses at the United States International Trade Commission's public hearing on the President's List of Articles which may be Designated or Modified as Eligible Articles for Purposes of the U. S. Generalized System of Preferences (Investigation Nos. TA-503(a)-11 and 332-166). Sessions are being held in the Hearing Room of the United States International Trade Commission, 701 E Street, N.W., in Washington, beginning at 10:00 a.m., on September 27, 1983.

Witness and organization: Subject:

Thorp, Reed & Armstrong--Counsel Washington, D.C.

on behalf of

National Piano Manufacturers Association Pianos

H. B. Comstock, President, Pratt-Read Corp.

Peter M. Perez, Chairman & Chief Executive Officer, Aeolian Pianos, Inc.

Elmer F. Brooks, Jr., Chairman, Aeolian-American Corporation

Ronald J. Thyen, Executive Vice President, Kimball Piano and Organ Co., Piano Div.

Roger M. Golden )_ OF COUNSEL Preston T. Scott)

Daniels, Houlihan & Palmeter--Counsel Washington, D.C.

on behalf of

Young Chang America, Inc., Samick America Corporation Pianos and Daewoo America

Donald B. Cameron, Jr.--OF COUNSEL

Kilpatrick & Cody--Counsel Washington, D.C.

on behalf of

General Housewares Corporation

Gary L. Riles, President, Cookware Group

Joseph W. Dorn--OF COUNSEL

Porcelain-on-steel kitchen and cooking ware

- more -

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C-3

Witness and organization: Subject:

Italo H. Ablondi, P.C.--Counsel Washington, D.C.

on behalf of

Board of Foreign Trade, Republic of China on Taiwan

Italo H. Ablondi)__

Porcelain-on-steel kitchen and Cooking ware

Sturgess Sobin ) OF COUNSEL

Stein, Shostak, Shostak & O'Hara--Counsel Washington, D.C.

on behalf of

Vitro Envases of Monterrey, Mexico Glass containers and Riekes Container Co., Richardson, Texas

Juan M. Holguin, Vitro Envases

Avrum Fitch, Riekes Container Co.

Irwin P. Altschuler) x--OF COUNSEL Donald Stein

Collier, Shannon, Rill & Scott--Counsel Washington, D.C.

on behalf of

Glass Packaging Institute Glass containers

C. F. Flynn, Executive Vice President, Latchford Glass Company

Jack L. Zarfoss, District Sales Manager, Brockway, Inc.

William H. Ellis, Vice President, Chattanooga Glass Company

Lewis D. Andrews, Vice President, Legislative Affairs, Glass Packaging Institute

Bruce Malaschevich, Vice President, Economic Consulting Services, Inc.

Brian Rubenking, Staff Economist, Economic Consulting Services, Inc.

Michael R. Kershow--OF COUNSEL

- more -

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C-4

Witness and organization: Subject:

Wald, Harkrader & Ross--Counsel Washington, D.C. on behalf of

Associated Mills, Inc. (AMI)

Room-size air purifiers

Richard J. Stern, President

Mark R. Joelson--OF COUNSEL

Ruch-Hampton Industries, Inc., Sanford, Florida

Hal Sumrall, Vice President

Room-size air purifiers

Italo H. Ablondi, P.C.--Counsel Washington, D.C.

on behalf of

Board of Foreign Trade, Republic of China Room-size air on Taiwan purifiers

Italo H. Ablondi)_ OF COUNSEL Sturgess Sobin )

Barnes, Richardson & Colburn--Counsel Washington, D.C.

on behalf of

Pfizer, Inc.

Frank P. Chapman, Vice President-Marketing, Chemical Division

Eileen R. Walton, Corporate Counsel

James H. LUndquist--OF COUNSEL

Kaplan, Russin & Vecchi--Counsel Washington, D.C.

on behalf of

Gadot Petrochemical Industries Ltd. of Israel

Leon Brenton, Consultant

Dennis James, Jr.--OF COUNSEL

Citric acid

Citric acid

- more -

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C-5

Witness and organization: Subject:

Beveridge & Diamond, P.C.--Counsel Washington, D.C.

on behalf of

Vertac Chemical Corporation, Memphis, Tennessee Certain chemicals

Alexander W. Sierck--OF COUNSEL

Dow, Lohnes & Albertson--Counsel Washington, D.C.

on behalf of

Pliva Pharmaceutical, Chemical, Food and Certain chemicals Cosmetic Industry, Zagreb, Yugoslavia

William Silverman )__ OF COUNSEL Margaret B. Dardess)

Stein, Shostak, Shostak & O'Hara Washington, D.C.

on behalf of

Monterey Manufacturing Co., Los Angeles, Waterbed mattresses California

Steven P. Kersner--OF COUNSEL

Webster, Chamberlain & Bean--Counsel Washington, D.C.

on behalf of

Waterbed Manufacturers Association Waterbed mattresses

C. Michael Deese--OF COUNSEL

- more -

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C-6

Witness and organization:

Mayer, Brown & Platt--Counsel Washington, D.C.

on behalf of

The Zebco Division of Brunswich Corporation

Gene Howard, Vice President--Planning and Administration

William B. Hoffman--OF COUNSEL

Stein, Shostak, Shostak & O'Hara--Counsel Washington, D.C.

on behalf of

Subject:

Fishing reels

Daiwa Corporation Fishing reels

Warren Marr, Vice President

David R. Amerine ) Steven P. Kersner)__ OF COUNSEL

Daniels, Houlihan & Palmeter, P.C.--Counsel Washington, D.C.

on behalf of

Korean Plastic Goods Exporters Association Fishing reels

Donald B. Cameron, Jr.--OF COUNSEL

Italo H. Ablondi, P.C.--Counsel Washington, D.C.

on behalf of

Board of Foreign Trade, Republic of China Fishing reels on Taiwan

Sturgess Sobin--OF COUNSEL

McClure & Trotter--Counsel Washington, D.C.

on behalf of

American Pipe Fittings Association Pipe fittings

Paul Engle, Executive Director, APFA

Peter Buck Feller) _ OF COUNSEL Robert W. Johnson)

- more -

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C-7

Witness and organization: Subject:

Kaplan, Russin & ecchi--Counsel Washington, D.C.

on behalf of

Korea Flange Company, Ltd. Pipe fittings

Dennis James, Jr.--OF COUNSEL

Italo H. Ablondi, P.C.--Counsel Washington, D.C.

on behalf of

Board of Foreign Trade, Republic of China on Pipe fittings Taiwan

Sturgis Sobin--OF COUNSEL

Plaia, Schaumberg & deKieffer--Counsel Washington, D.C.

on behalf of

Taiwan Association of Machinery Industry and Pipe fittings Sequoia International, Inc.

Joel D. Kauffman--OF COUNSEL

Kadison, Pfaelzer, Woodard, Quinn & Rossi--Counsel Washington, D.C.

on behalf of

Fundicao TUPY, S.A. Pipe fittings

Gary Meyers, President, TUPY American Foundry Corporation

Robert Crandall, Senior Fellow, Brookings Institution

Gary L. Stanley--OF COUNSEL

- more -

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C-8

Witness and organization: Subject:

Stewart and Stewart--Counsel Washington, D.C.

on behalf of

PPG Industries, Inc., Flat glass and products

AFG Industries, Inc.

Ron Tiller, Vice President, Sales

Eugene L. Stewart--OF COUNSEL

Stein, Shostak, Shostak & O'Hara--Counsel Washington, D.C.

on behalf of

General Battery Corporation and Yuasa-General Batteries Battery Corporation, Reading, Pennsylvania

Douglas Thompson, General Battery Corp.

Bruce Retter, Yuasa-General Battery Corp.

Steven P. Kersner)__ OF COUNSEL Irwin Altshuler

Korea Trade Center, Washington, D.C. Batteries

On behalf of: Korea Battery Industrial Cooperative

Jong Man Choi, First Assistant Director

Jin Woo Lee, Assistant Director

Adduci, Dinan & Mastriani--Counsel Washington, D.C.

on behalf of

National Industries, Inc., Montgomery, Alabama Automotive

June Collier, President wiring harnesse ,

V. James Adduci, II--OF COUNSEL

- more -

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Witness and organization:

Sonnenberg & Anderson--Counsel Chicago, Illinois

on behalf of

American Yazaki Corporation

Edward Mayne, Principal, Mayne & McKinney

Steven P. Sonnenberg--OF COUNSEL

Subject:

Automotive wiring harnesses

Italo H. Ablondi, P.C.--Counsel Washington, D.C.

on behalf of

Board of Foreign Trade, Republic of China Automotive on Taiwan wiring harnesses

Sturgis Sobin--OF COUNSEL

Italo H. Ablondi, P.C.--Counsel Washington, D.C.

on behalf of

Board of Foreign Trade, Republic of China on Taiwan

Sturgis Sobin--OF COUNSEL

Italo H. Ablondi, P.C.--Counsel Washington, D.C.

on behalf of

Board of Foreign Trade, Republic of China on Taiwan

Sturgis Sobin--OF COUNSEL

Pazianos Associates, Washington, D.C.

The CYDSA Group, Monterrey, Mexico

Eduardo Martinez, Export Sales Manager

E. George Pazianos, President, Pazianos Associates

PVC pipe furniture

Fixed-focus cameras

Rubber processing compounds

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