Laws: Cases and Codes : U.S. Code : Title 19 : Section 1336


   
U.S. Code as of: 01/19/04
Section 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 commission (1) upon request of the
    President, or (2) upon resolution of either or both Houses of
    Congress, 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 domestic article and
    of any like or similar foreign article. In the course of the
    investigation the commission shall hold hearings and give
    reasonable public notice thereof, and shall afford reasonable
    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 expressly fixed by statute do not equalize the differences
    in the costs of production of the domestic article and the like or
    similar foreign article when produced in the principal competing
    country, the commission shall specify in its report such increases
    or decreases in rates of duty expressly fixed by statute (including
    any necessary change in classification) as it finds shown by the
    investigation to be necessary to equalize such differences. In no
    case shall the total increase 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    (b) Repealed.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, Sec. 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 investigation of the commission to be
    necessary to equalize 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 increased 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 production
      In ascertaining under this section the differences 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 disadvantage 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 ascertainable, the commission may accept as evidence
      thereof, or as supplemental thereto, the weighted average of the
      invoice prices or values for a representative period and/or the
      average wholesale selling price for a representative period
      (which price shall be that at which the article is freely offered
      for sale to all purchasers 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,
      person, 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 terminated 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 dutiable 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 act, that the duty or duties
    shall not exceed a specified ad valorem rate upon the articles
    provided 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 article" 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 protectorate, or any subdivision or
      subdivisions thereof (other than the United States and its
      possessions).
        (4) The term "cost of production", when applied with respect to
      either a domestic article or a foreign article, includes, for a
      period which is representative of conditions in production of the
      article: (A) The price or cost of materials, labor costs, and
      other direct charges incurred in the production of the article
      and in the processes or methods employed in its production; (B)
      the usual general expenses, including charges for depreciation or
      depletion which are representative of the equipment and property
      employed in the production of the article and charges for rent or
      interest which are representative of the cost of obtaining
      capital or instruments of production; and (C) the cost of
      containers and coverings 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 needful rules and
    regulations for carrying out his functions under the provisions of
    this section.
    (j) Repealed. Pub. L. 96-39, title II, Sec. 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 investigations in which the President has not proclaimed
    changes in classification or increases or decreases in rates of
    duty, shall be dismissed without prejudice; but the information and
    evidence secured by the commission in any such investigation may be
    given due consideration in any investigation instituted under the
    provisions of this section.




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