USITC
Low Melt Polyester Staple Fiber from Korea and Taiwan Injures U.S. Industry, Says USITC
The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of low melt polyester staple fiber from Korea and Taiwan that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Irving A. Williamson, Meredith M. Broadbent, Rhonda K. Schmidtlein, and Jason E. Kearns voted in the affirmative.
As a result of the USITC’s affirmative determinations, the U.S. Department of Commerce will issue antidumping duties on imports of this product from Korea and Taiwan.
The Commission also made a negative finding concerning critical circumstances with regard to imports of this product from Korea. As a result, imports of low melt polyester staple fiber from Korea will not be subject to retroactive antidumping duties.
The Commission’s public report Low Melt Polyester Staple Fiber from Korea and Taiwan (Inv. Nos. 731-TA-1378 and 1379 (Final), USITC Publication 4808, August 2018) will contain the views of the Commission and information developed during the investigations.
The report will be available by August 22, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Low Melt Polyester Staple Fiber (PSF) from Korea and Taiwan
Investigation Nos. 731-TA-1378-1379 (Final)
Product Description: Low melt polyester staple fiber (PSF) is a synthetic (man-made) staple fiber, not carded, combed or otherwise processed for spinning, made entirely of polyester. It is similar in appearance to cotton or wool fiber when baled. It is most commonly comprised of a pure polyester core and a pure polyester outer sheath. The sheath, which melts at a lower temperature (approximate melt point of 90 C to 220 C) than the core (approximate melt point of 250 C), provides a stable structure that allows the fiber to be processed smoothly into another form and acts as an agent for thermal-bonding to the core polymer. Low melt PSF can be used in nonwoven products for a broad spectrum of downstream industries: automotive (door trim, dash pads, wheel guards, carpets, trunk and hood liners), industrial purposes (soundproofing and insulation for construction, water and air filtration (such as air-filtering face masks)), and hygienic products (wipes, diapers, sanitary and medical goods, etc.).
Status of Proceedings:
1. Type of investigation: Final phase antidumping duty investigations.
2. Petitioners: Nan Ya Plastics Corporation, America, Livingston, NJ.
3. USITC Institution Date: Tuesday, June 27, 2017.
4. USITC Hearing Date: Tuesday, June 19, 2018.
5. USITC Vote Date: Thursday, July 19, 2018.
6. USITC Notification to Commerce Date: Wednesday, August 1, 2018.
U.S. Industry in 2017:
1. Number of U.S. producers: 2.
2. Location of producers’ plants: South Carolina and Tennessee.
3. Production and related workers: [1]
4. U.S. producers’ U.S. shipments: 1
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2017:
1. Subject imports: 1
2. Nonsubject imports: 1
3. Leading import sources: Korea, Taiwan.
[1] Withheld to avoid disclosure of business proprietary information.
USITC Institutes Section 337 Investigation of Certain Powered Cover Plates
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain powered cover plates. The products at issue in the investigation are described in the Commission’s Notice of Investigation.
The investigation is based on a complaint filed by SnapRays, LLC, d/b/a SnapPower of Vineyard, UT, on June 20, 2018. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain powered cover plates that infringe patents asserted by the complainant. The complainant requests that the USITC issue a general exclusion order, or in the alternative, a limited exclusion order, and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Ontel Products Corporation of Fairfield, NJ;
Dazone LLC of Ontario, CA;
Shenzhen C-Myway of Shenzhen, Guangdong, China;
E-Zshop4u LLC of Howey in the Hills, FL;
Desteny Store of Fort Meyers, FL;
Zhongshan Led-Up Light Co. Ltd. of Zhongshan, Guangdong, China;
AllTrade Tools LLC of Cypress, CA;
Guangzhou Sailu Info Tech. Co., Ltd., of Guangzhou, Gunagdong, China;
NEPCI--Zhejiang New-Epoch Communication Industry Co., Ltd., of Yueging, Zhejiang, China;
KCC Industries of Eastvale, CA;
Vistek Technology Co., Ltd., of Shenzhen, China;
Enstant Technology Co., Ltd., of Shenzhen, China; and
Manufacturers Components Incorporated of Pompano Beach, FL.
By instituting this investigation (337-TA-1124), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
USITC Institutes Section 337 Investigation of Certain Carburetors and Products Containing Such Carburetors
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain carburetors and products containing such carburetors. The products at issue in the investigation are described in the Commission’s Notice of Investigation.
The investigation is based on a complaint filed by Walbro, LLC, of Tucson, AZ, on June 14, 2018. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain carburetors and products containing such carburetors that infringe patents asserted by the complainant. The complainant requests that the USITC issue a general exclusion order, or in the alternative, a limited exclusion order, and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Ruixing Carburetor Manufacturing Co., Ltd., of Zhejiang, China;
Huayi Carburetor Factory of Chongking, China;
Tillotson of Kerry, Ireland;
Fujian Hualong Carburetor Co., Ltd., of China;
Fuding Guangda General Machinery Co., Ltd., of Fujian Province, China;
Wuyi Henghai Tools Co., Ltd., of Zhejiang, China;
Fuding Youyi Trade Co., Ltd., of Fujian, China;
Amazon.com, Inc., of Seattle, WA;
Amerisun Inc. of Itasca, IL;
Ardisam, Inc., of Cumberland, WI;
Buffalo Corporation of O’Fallon, MO;
Cabela’s Incorporated of Sidney, NE;
Champion Power Equipment, Inc., of Santa Fe Springs, CA;
Feldman Eng. & Mfg. Co., Inc., of Sheboygan Falls, WI;
FNA Group, Inc., of Pleasant Prairie, WI;
Frictionless World, LLC, of Denver, CO;
Generac Power Systems, Inc., of Wakesha, WI;
Husqvarna Professional Products, Inc., of Charlotte, NC;
Imperial Industrial Supply Co. d/b/a Duromax Power Equipment of Ontario, CA;
Kmart Corporation of Hoffman Estates, IL;
Lowe’s Companies, Inc., of Mooresville, NC;
Mat Industries, LLC, of Lake Zurich, IL;
Menards, Inc., of Eau Claire, WI;
MTD Products Inc. of Valley City, OH;
North American Tool Industries of Huntington, IN;
Northern Tool & Equipment Co., Inc., of Burnsville, MN:
QV Tools LLC of Las Vegas, NV;
Sears, Roebuck and Co. of Hoffman Estates, IL;
Target Corporation of Minneapolis, MN;
Techtronics Industries Co. Ltd. of Hong Kong d/b/a Techtronic Industries Power Equipment of Hong Kong;
The Home Depot, Inc., of Atlanta, GA;
Thunderbay Products of Clayton, WI;
Tool Tuff Direct LLC of Golden, CO;
Tractor Supply Company of Brentwood, TN; and
Walmart Inc. of Bentonville, AR.
By instituting this investigation (337-TA-1123), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
Tapered Roller Bearings from Korea Do Not Injure U.S. Industry, Says USITC
The United States International Trade Commission (USITC) today determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of tapered roller bearings from Korea that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Irving A. Williamson and Meredith M. Broadbent voted in the negative. Commissioner Rhonda K. Schmidtlein voted in the affirmative and found that the domestic industry is threatened with material injury. Commissioner Jason E. Kearns did not participate in this vote.
As a result of the USITC’s negative determination, no antidumping duty order will be issued.
The Commission’s public report Tapered Roller Bearings from Korea (Inv. No. 731-TA-1380 (Final), USITC Publication 4806, August 2018) will contain the views of the Commission and information developed during the investigation.
The report will be available by August 22, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Tapered Roller Bearings (TRB) from Korea
Investigation No. 731-TA-1380 (Final)
Product Description: The scope of this investigation covers all tapered roller bearings with a nominal outside cup diameter of eight inches and under, regardless of type of steel used to produce the bearing, whether of inch or metric size, and whether the tapered roller bearing is a thrust bearing or not. Such tapered roller bearings include finished cup and cone assemblies entering as a set, finished cone assemblies entering separately, and finished parts (cups, cones, and tapered rollers). These tapered roller bearings are sold individually as a set (cup and cone assembly), as a cone assembly, as a finished cup, or packaged as a kit with one or several tapered roller bearings, a seal, and grease. The scope of the investigation includes finished rollers and finished cones that have not been assembled with rollers and a cage. Tapered roller bearings can be a single row or multiple rows (e.g., two- or four-row), and a cup can handle a single cone assembly or multiple cone assemblies.
Status of Proceedings:
1. Type of investigation: Final phase antidumping duty investigation.
2. Petitioners: The Timken Company, North Canton, Ohio.
3. USITC Institution Date: Wednesday, June 28, 2017.
4. USITC Hearing Date: Tuesday, June 05, 2018.
5. USITC Vote Date: Friday, July 13, 2018.
6. USITC Notification to Commerce Date: Wednesday, August 01, 2018.
U.S. Industry in 2017:
1. Number of U.S. producers: 7.
2. Location of producers’ plants: Alabama, Illinois, Indiana, Michigan, Missouri, North Carolina, Ohio, South Carolina, Tennessee, and Virginia.
3. Production and related workers: 3,180.
4. U.S. producers’ U.S. shipments: $861.9 million.
5. Apparent U.S. consumption: $1.5 billion.
6. Ratio of subject imports to apparent U.S. consumption: 5.3 percent.
U.S. Imports in 2017:
1. Subject imports: $78.3 million.
2. Nonsubject imports: $529.2 million.
3. Leading import sources: Japan, China, and Korea.
Dumped Stainless Steel Flanges from China Injure U.S. Industry, Says USITC
The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of stainless steel flanges from China that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Irving A. Williamson, Meredith M. Broadbent, Rhonda K. Schmidtlein, and Jason E. Kearns voted in the affirmative.
As a result of the USITC’s affirmative determination, Commerce will issue an antidumping duty order on imports of this product from China.
The Commission’s public report Stainless Steel Flanges from China (Inv. No. 731-TA-1383 (Final), USITC Publication 4807, July 2018) will contain the views of the Commission and information developed during the investigation.
The report will be available by August 16, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Stainless Steel Flanges from China
Investigation No. 731-TA-1383 (Final)
Product Description: The stainless steel flanges subject to this investigation are forged and can be finished, semifinished, or unfinished. Subject flanges are made from stainless steel and are generally manufactured to, but not limited to, the material specification of ASTM/ASME A/SA182 or comparable domestic or foreign specifications. Subject stainless steel flanges meet the sizes and description standards for all pressure classes of ASME B16.5 and range in size from one-half inch to 24 inches in nominal pipe size. Stainless steel flanges are used to connect stainless steel pipe sections and piping components (valves, pumps, tanks, and other equipment) to form a piping system. Stainless steel flanges are usually welded or screwed to the ends of pipes or other equipment requiring a connection and are joined to each other by bolting. Forged stainless steel flanges are a component of stainless steel process piping in oil and gas refineries, nuclear power plants, chemical synthesis plants, paper mills, food processing facilities, and other applications where cleanliness and corrosion resistance are required and in electric power-generating plants where their high-temperature properties are needed.
Status of Proceedings:
1. Type of investigation: Final phase antidumping duty investigation.
2. Petitioners: Core Pipe Products, Inc., Carol Stream, IL; and Maass Flange Corporation, Houston, TX.
3. USITC Institution Date: August 16, 2017.
4. USITC Hearing Date: April 10, 2018.
5. USITC Vote Date: July 13, 2018.
6. USITC Notification to Commerce Date: July 25, 2018.
U.S. Industry in 2017:
1. Number of U.S. producers: 5.
2. Location of producers’ plants: Illinois, Michigan, and Texas.
3. Production and related workers: 218.
4. U.S. producers’ U.S. shipments: [1]
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2017:
1. Subject imports: $77.8 million (China and India).
2. Nonsubject imports: $61.7 million.
3. Leading import sources: India, China, Canada, Philippines, and Mexico (in terms of total quantity).
[1] Withheld to avoid disclosure of business proprietary information.
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Ripe Olives from Spain Injure U.S. Industry, Says USITC
The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of ripe olives from Spain that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Irving A. Williamson and Rhonda K. Schmidtlein voted in the affirmative. Commissioner Meredith M. Broadbent voted in the negative. Commissioner Jason E. Kearns did not participate in these investigations.
As a result of the USITC’s affirmative determinations, Commerce will issue antidumping and countervailing duty orders on imports of this product from Spain.
The Commission’s public report Ripe Olives from Spain (Inv. Nos. 701-TA-582 and 731-TA-1377 (Final), USITC Publication 4805, July 2018) will contain the views of the Commission and information developed during the investigation.
The report will be available by August 14, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Ripe Olives from Spain
Investigation Nos. 701-TA-582 and 731-TA-1377 (Final)
Product Description: Ripe olives are certain processed olives. Ripe olives are principally used as ingredients in pizzas, salads, and sandwiches but can also be eaten as snacks or appetizers.
Status of Proceedings:
1. Type of investigation: Final phase antidumping duty and countervailing duty investigations.
2. Petitioners: Bell-Carter Foods, Walnut Creek, CA and Musco Family Olive Company, Tracy, CA.
3. USITC Institution Date: Thursday, June 22, 2017.
4. USITC Hearing Date: Thursday, May 24, 2018.
5. USITC Vote Date: Tuesday, July 10, 2018.
6. USITC Notification to Commerce Date: Tuesday, July 24, 2018.
U.S. Industry in 2017:
1. Number of U.S. producers: 2.
2. Location of producers’ plants: California.
3. Production and related workers: [1]
4. U.S. producers’ U.S. shipments: 1
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2017:
1. Subject imports: $76.3 million.
2. Nonsubject imports: 1
3. Leading import sources: Spain, Morocco.
[1] Withheld to avoid disclosure of business proprietary information.
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USITC Institutes Section 337 Investigation of Certain Convertible Sofas and Components Thereof
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain convertible sofas and components thereof. The products at issue in the investigation are convertible sofas that include the unitary combination of two upholstered seating areas, each bordered on the lateral end with a vertical armrest, such areas being separated by a flat table member that can be placed substantially level with the seating areas as well as raised above the level of the seating areas to various degrees to provide an open space beneath the table and for the full width of the table. In addition, the sofa includes a full width, integral backrest that can be folded down on top of the seats and table to provide a sleep/rest surface.
The investigation is based on a complaint filed by Sauder Manufacturing Company of Archbold, OH, on June 7, 2018. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain convertible sofas and components thereof that infringe a patent asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and a cease and desist order.
The USITC has identified Krug, Inc., of Kitchener, Ontario, Canada, as the respondent in this investigation.
By instituting this investigation (337-TA-1122), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
USITC DataWeb Upgrade Approaching Finish Line; Agency Seeks Feedback on New Trade Data Request Tool
The U.S. International Trade Commission (USITC) is in the homestretch of its multi-year effort to rebuild its online DataWeb system and is now seeking feedback from DataWeb users on improvements to the heart of the system – the trade data request tool.
The USITC has launched a beta version of the request tool and is asking users to fully test it, then report their feedback through a link on the beta site.
The USITC is currently testing only the trade data request tool. Other features of the new DataWeb website, such as the tariff database, tools related to classifications systems, and certain pre-defined trade data reports, will come online as they are finalized. The current version of the DataWeb will remain fully functional and available during the beta test period.
The beta site can be accessed here: https://datawebbeta.usitc.gov
The upgraded DataWeb has been entirely re-engineered to make it more modern, agile, and ready for future improvements. It features a more modern interface, with a streamlined presentation and more user-friendly navigation. The new DataWeb also will be mobile-friendly.
Because the DataWeb has been completely overhauled, users will have to re-create their user IDs and passwords, as well as any information currently saved in DataWeb, including search routines, queries, and commodity/country lists. However, all information saved in the beta version will translate to the new DataWeb when it is launched.
The beta version of the DataWeb will be available until early September, at which time it will replace the current DataWeb, which will be decommissioned.
Background
The USITC DataWeb is an interactive, self-service, Internet-based system that provides access to extensive tariff and trade data, allowing users to run their own data queries using official U.S. government import and export data. The data are updated monthly and can be retrieved on a monthly, quarterly, annual, or year-to-date basis and in a number of classification systems, including the Harmonized Tariff Schedule, the Standard Industrial Classification (SIC), the Standard International Trade Classification (SITC), or the North American Industry Classification System (NAICS). A “Commodity Translation Wizard” translates between these classification systems. The DataWeb is used by USITC staff as well as staff at various federal government agencies, congressional offices, U.S. trade negotiating groups, U.S. embassies, educational institutions, the U.S. private sector, and numerous private and public entities in other countries.
The USITC is an independent, nonpartisan, factfinding federal agency. The agency investigates and makes determinations in proceedings involving imports claimed to injure a domestic industry or violate U.S. intellectual property rights; provides independent analysis and information on tariffs, trade and competitiveness; and maintains the U.S. tariff schedule.
USITC Votes to Continue Investigations Concerning Steel Propane Cylinders from China and Thailand
The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of steel propane cylinders from China and Thailand that are allegedly sold in the United States at less than fair value and subsidized by the government of China.
Chairman David S. Johanson and Commissioners Irving A. Williamson, Meredith M. Broadbent, and Rhonda K. Schmidtlein voted in the affirmative. Commissioner Jason E. Kearns did not participate in these investigations.
As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue with its antidumping and countervailing duty investigations concerning imports of this product, with its preliminary countervailing duty determination due on or about August 15, 2018, and its preliminary antidumping duty determinations due on or about October 29, 2018.
The Commission’s public report Steel Propane Cylinders from China and Thailand, Inv. Nos. 701-TA-607 and 731-TA-1417 and 1419 (Preliminary), USITC Publication 4804, July 2018) will contain the views of the Commission and information developed during the investigations.
The report will be available after August 3, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Steel Propane Cylinders from China and Thailand
Investigation Nos. 701-TA-607 and 731-TA-1417 and 1419 (Preliminary)
Product Description: Steel propane cylinders, used for the storage, transport, and dispensing of compressed or liquefied propane gas, are produced to meet the requirements of U.S. Department of Transportation (USDOT) Specifications 4B, 4BA, or 4BW; Transport Canada Specification 4BM, 4BAM, or 4BWM; or United Nations pressure receptacle standard ISO 4706. Steel propane cylinders range from 2.5 pound nominal gas capacity (approximate 6 pound water capacity and approximate 4–6 pound tare weight) to 42 pound nominal gas capacity (approximate 100 pound water capacity and approximate 2832 pound tare weight). Steel propane cylinders have two or fewer ports and may be imported assembled or unassembled (i.e., welded or brazed before or after importation), with or without all components (including collars, valves, gauges, tanks, foot rings, and overfill prevention devices), and coated or uncoated. Also included within the scope are drawn cylinder halves, unfinished propane cylinders, collars, and foot rings for steel propane cylinders.
Status of Proceedings:
1. Type of investigation: Preliminary countervailing duty and antidumping investigations.
2. Petitioners: Worthington Industries Inc., Columbus, Ohio; and Manchester Tank and Equipment, Franklin, Tennessee.
3. USITC Institution Date: Tuesday, May 22, 2018.
4. USITC Conference Date: Tuesday, June 12, 2018.
5. USITC Vote Date: Thursday, July 5, 2018.
6. USITC Notification to Commerce Date: Friday, July 6, 2018.
U.S. Industry in 2017:
1. Number of U.S. producers: 2.
2. Location of producers’ plants: California, Indiana, Ohio, Tennessee, and Texas.
3. Production and related workers: [1]
4. U.S. producers’ U.S. shipments: 1
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2017:
1. Subject imports: 1
2. Nonsubject imports: 1
3. Leading import sources: Thailand and China.
[1] Withheld to avoid disclosure of business proprietary information.
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USITC Releases Report on Proposed Modifications to the U.S.-Korea Free Trade Agreement Regarding the Staging of Customs Duties for Certain Motor Vehicles
The U.S. International Trade Commission (USITC) today released U.S.-Korea FTA: Advice on Modifications to Duty Rates for Certain Motor Vehicles.
The USITC, an independent, nonpartisan, factfinding federal agency, produced the report at the request of the U.S. Trade Representative (USTR) pursuant to section 104 of the United States-Korea Free Trade Agreement Implementation Act.
As requested, the report provides advice on the probable economic effect of proposed modifications to the staging of customs duties for certain motor vehicles (light trucks and medium/heavy trucks) under the U.S.-Korea Free Trade Agreement on U.S. trade and on domestic producers of the affected articles. The proposed modifications would defer the elimination of duties until January 1, 2041. Because the United States currently imports few or no vehicles covered by the proposed modifications from Korea, the USITC made assumptions concerning Korean market shares and Korean export shares if Korea were to enter the U.S. truck market. The Commission presents five alternative scenarios in the report and designates one as “most likely.”
Based on the scenario the Commission believes is the most likely, the likely effect of the proposed modification is an avoided increase of U.S. imports from Korea of 59,000 light trucks and 7,600 medium/heavy trucks, assuming Korea enters the U.S. truck market and does so via exports and not exclusively transplant production. Similarly, the likely effect on total production in the United States is an avoided decrease in domestic production of 45,000 light trucks and 3,700 medium/heavy trucks under the same assumptions.
U.S.-Korea FTA: Advice on Modifications to Duty Rates for Certain Motor Vehicles (Inv. No. FTA-103-031, USITC publication 4791, June 2018) is available at https://www.usitc.gov/publications/332/pub4791.pdf.