19 U.S.C. § 1336 — Equalization of costs of production

Page 116 TITLE 19—CUSTOMS DUTIES § 1335 That section was superseded by section 334 of act June 17, 1930, comprising this section. Executive Documents TRANSFER OF FUNCTIONS Executive and administrative functions of Federal Trade Commission transferred, with certain reserva- tions, to Chairman of such Commission by Reorg. Plan No. 8 of 1950, § 1, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1264, set out in the Appendix to Title 5, Government Or- ganization and Employees. § 1335. Rules and regulations The commission is authorized to adopt such reasonable procedures and rules and regulations as it deems necessary to carry out its functions and duties. (June 17, 1930, ch. 497, title III, § 335, as added Pub. L. 85–686, § 9(c)(2), Aug. 20, 1958, 72 Stat. 680.) Editorial Notes PRIOR PROVISIONS A prior section 335 of act June 17, 1930, related to dis- closure of trade secrets and prescribed penalty therefor, prior to repeal by act June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948. See section 1905 of Title 18, Crimes and Criminal Procedure. § 1336. Equalization of costs of production (a) Change of classification or duties In order to put into force and effect the policy of Congress by this chapter intended, the com- mission (1) upon request of the President, or (2) upon resolution of either or both Houses of Con- gress, or (3) upon its own motion, or (4) when in the judgment of the commission there is good and sufficient reason therefor, upon application of any interested party, shall investigate the differences in the costs of production of any do- mestic article and of any like or similar foreign article. In the course of the investigation the commission shall hold hearings and give reason- able public notice thereof, and shall afford rea- sonable opportunity for parties interested to be present, to produce evidence, and to be heard at such hearings. The commission shall report to the President the results of the investigation and its findings with respect to such differences in costs of production. If the commission finds it shown by the investigation that the duties ex- pressly fixed by statute do not equalize the dif- ferences in the costs of production of the domes- tic article and the like or similar foreign article when produced in the principal competing coun- try, the commission shall specify in its report such increases or decreases in rates of duty ex- pressly fixed by statute (including any nec- essary change in classification) as it finds shown by the investigation to be necessary to equalize such differences. In no case shall the total in- crease or decrease of such rates of duty exceed 50 per centum of the rates expressly fixed by statute. (b) Repealed. Pub. L. 96–39, title II, § 202(a)(2)(A), July 26, 1979, 93 Stat. 202 (c) Proclamation by the President The President shall by proclamation approve the rates of duty and changes in classification specified in any report of the commission under this section, if in his judgment such rates of duty and changes are shown by such investiga- tion of the commission to be necessary to equal- ize such differences in costs of production. (d) Effective date of rates and changes Commencing thirty days after the date of any presidential proclamation of approval the in- creased or decreased rates of duty and changes in classification specified in the report of the commission shall take effect. (e) Ascertainment of differences in costs of pro- duction In ascertaining under this section the dif- ferences in costs of production, the commission shall take into consideration, in so far as it finds it practicable: (1) In the case of a domestic article (A) The cost of production as hereinafter in this section defined; (B) transportation costs and other costs incident to delivery to the principal market or markets of the United States for the article; and (C) other relevant factors that constitute an advantage or dis- advantage in competition. (2) In the case of a foreign article (A) The cost of production as hereinafter in this section defined, or, if the commission finds that such cost is not readily ascertain- able, the commission may accept as evidence thereof, or as supplemental thereto, the weighted average of the invoice prices or val- ues for a representative period and/or the aver- age wholesale selling price for a representative period (which price shall be that at which the article is freely offered for sale to all pur- chasers in the principal market or markets of the principal competing country or countries in the ordinary course of trade and in the usual wholesale quantities in such market or markets); (B) transportation costs and other costs incident to delivery to the principal market or markets of the United States for the article; (C) other relevant factors that constitute an advantage or disadvantage in competition, including advantages granted to the foreign producers by a government, per- son, partnership, corporation, or association in a foreign country. (f) Modification of changes in duty Any increased or decreased rate of duty or change in classification which has taken effect as above provided may be modified or termi- nated in the same manner and subject to the same conditions and limitations (including time of taking effect) as is provided in this section in the case of original increases, decreases, or changes. (g) Prohibition against transfers from the free list to the dutiable list or from the dutiable list to the free list Nothing in this section shall be construed to authorize a transfer of an article from the duti- able list to the free list or from the free list to the dutiable list, nor a change in form of duty. Whenever it is provided in any paragraph of Subtitle I of this chapter, or in any amendatory Page 117 TITLE 19—CUSTOMS DUTIES § 1337 1 See References in Text note below. act, that the duty or duties shall not exceed a specified ad valorem rate upon the articles pro- vided for in such paragraph, no rate determined under the provisions of this section upon such articles shall exceed the maximum ad valorem rate so specified. (h) Definitions For the purpose of this section— (1) The term ‘‘domestic article’’ means an article wholly or in part the growth or product of the United States; and the term ‘‘foreign ar- ticle’’ means an article wholly or in part the growth or product of a foreign country. (2) The term ‘‘United States’’ includes the several States and Territories and the District of Columbia. (3) The term ‘‘foreign country’’ means any empire, country, dominion, colony, or protec- torate, or any subdivision or subdivisions thereof (other than the United States and its possessions). (4) The term ‘‘cost of production’’, when ap- plied with respect to either a domestic article or a foreign article, includes, for a period which is representative of conditions in pro- duction of the article: (A) The price or cost of materials, labor costs, and other direct charges incurred in the production of the arti- cle and in the processes or methods employed in its production; (B) the usual general ex- penses, including charges for depreciation or depletion which are representative of the equipment and property employed in the pro- duction of the article and charges for rent or interest which are representative of the cost of obtaining capital or instruments of produc- tion; and (C) the cost of containers and cov- erings of whatever nature, and other costs, charges, and expenses incident to placing the article in condition packed ready for delivery. (i) Rules and regulations of President The President is authorized to make all need- ful rules and regulations for carrying out his functions under the provisions of this section. (j) Repealed. Pub. L. 96–39, title II, § 202(a)(2)(D), July 26, 1979, 93 Stat. 202 (k) Investigations prior to June 17, 1930 All uncompleted investigations instituted prior to June 17, 1930, under the provisions of sections 154 to 159 1 of this title, including inves- tigations in which the President has not pro- claimed changes in classification or increases or decreases in rates of duty, shall be dismissed without prejudice; but the information and evi- dence secured by the commission in any such in- vestigation may be given due consideration in any investigation instituted under the provi- sions of this section. (June 17, 1930, ch. 497, title III, § 336, 46 Stat. 701; Aug. 2, 1956, ch. 887, § 2(d), 70 Stat. 946; Pub. L. 85–686, § 9(c)(1), Aug. 20, 1958, 72 Stat. 679; Pub. L. 96–39, title II, § 202(a)(2), July 26, 1979, 93 Stat. 202.) Editorial Notes REFERENCES IN TEXT Sections 154 to 159 of this title, referred to in subsec. (k), were repealed by section 651(a)(1) of act June 17, 1930. PRIOR PROVISIONS Provisions similar to those in this section were con- tained in act Sept. 21, 1922, ch. 356, title III, § 315, 42 Stat. 941. That section was superseded by section 336 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. AMENDMENTS 1979—Subsec. (b). Pub. L. 96–39, § 202(a)(2)(A), struck out subsec. (b) which related to the setting of ad valo- rem rates based upon the American selling price of do- mestic articles as would be necessary to equalize dif- ferences in the costs of production. Subsec. (c). Pub. L. 96–39, § 202(a)(2)(B), substituted ‘‘changes in classification specified in any report’’ for ‘‘changes in classification and in basis of value speci- fied in any report’’. Subsec. (d). Pub. L. 96–39, § 202(a)(2)(C), substituted ‘‘changes in classification specified in the report’’ for ‘‘changes in classification or in basis of value specified in the report’’. Subsec. (f). Pub. L. 96–39, § 202(a)(2)(C), substituted ‘‘change in classification which has taken effect’’ for ‘‘change in classification or in basis of value which has taken effect’’. Subsec. (j). Pub. L. 96–39, § 202(a)(2)(D), struck out subsec. (j) which authorized the Secretary of the Treas- ury to make necessary rules and regulations for the entry and declaration of foreign articles with respect to which a change in the basis of value had been made. Subsec. (k). Pub. L. 96–39, § 202(a)(2)(C), substituted ‘‘changes in classification or increases or decreases’’ for ‘‘changes in classification or in basis of value or in- creases or decreases’’. 1958—Subsec. (a). Pub. L. 85–686 struck out provisions which authorized the commission to adopt such reason- able procedure and rules and regulations as it deemed necessary to execute its functions under this section. See section 1335 of this title. 1956—Subsec. (b). Act Aug. 2, 1956, struck out ‘‘(as de- fined in section 1402(g))’’ after ‘‘selling price’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–39 effective July 1, 1980, see section 204(a) of Pub. L. 96–39, set out as a note under section 1401a of this title. EFFECTIVE DATE OF 1956 AMENDMENT Amendment by act Aug. 2, 1956, effective only as to articles entered, or withdrawn from warehouse, for con- sumption on or after thirtieth day following publica- tion of the final list provided for in section 6(a) of said act, set out in note under section 1402 of this title, see section 8 of act Aug. 2, 1956, set out as an Effective Date note under section 1401a of this title. § 1337. Unfair practices in import trade (a) Unlawful activities; covered industries; defi- nitions (1) Subject to paragraph (2), the following are unlawful, and when found by the Commission to exist shall be dealt with, in addition to any other provision of law, as provided in this sec- tion: (A) Unfair methods of competition and un- fair acts in the importation of articles (other than articles provided for in subparagraphs