Table Of Content

United States International Trade Commission Annual Report Fiscal Year 1992 UNITED STATES _INTERNATIONAL_ TRADE COMMISSION (Commissioners: Don E. Newquist, Chairman Peter S. Watson, Vice Chairman David B. Rohr Anne E. Brunsdale Carol T. Crawford lanet 1. Nuzum Address all communications to: United States International Trade Commission 500 E Street SW. Washington, DC 20436 USITC Publication 2624 CONTENTS The Commission , Summary of Investigations¢ ompleted. Fi scal Year 1992 The Commissioners | , | 6 Introduction : pens pena ) s Part l. Highlights. sa vy) Investigations Under Section 37 of the Tariff Act of 1930 | ) Investigations Under Tithe VII of the Tariff Act of 1930 . , ) Investigations Under the Trade Act of 1974. tT | TYTTTTT 10 Investigations Under Section 332 of the Tariff Act of 1930 TrTtT . W Studies Relating to the Uruguay Round of Multilateral Trade Negotiations . 10 Studies Analyzing Various Aspects of U.S. Free-Trade Agreements and Other Special Trade Programs se rr paces 11 Studies Analyzing the Competitiveness of U s. industry , . Studies on Special Areas of Congressional or USTR Interest 13 Part I. Organizational Activities. WTTCTTTT 14 Office of Operations . reeea , , reose Office of Investigations ....... , , . 14 Office of Industries ......... 7TTe Tr 15 Office of Economics ...... . 16 Office of Tariff Affairs and Trade Agreements ) 18 Office of Unfair Import Investigations .. . TTT 18 Trade Remedy Assistance Office Office of Administration ...... Office of Finance and Budget Office of Information Resources Management | Library Services ............ Office of Management Services Office of Personnel .......... 22 Office of the Technical Advisor for C ompetitivene ss and Strategic Planning................5. POTTTT TTT TTT eee 23 Office of the Administrative Law Judges . . pveaea Jesenccts Oe Office of Congressional Liaison .......... r TTTT 24 Office of Inspector General ...... | rectcene Gn Office of the Secretary ......... , 7 25 Office of Executive and International Liaison 26 Office of the General Counsel ..... 26 Office of Public Affairs ........ , 27 Part II]. Management and Finance ........ 28 Figures 1. Summary of Principal Activities, Fiscal Year 1992 9 2. ITC Organization and Functions oo. 3. Statutory Timetables for Antidumping and Countervailing Duty Investigations ..... peeeeees 32 Appendixes A. Summary of Investigations Completed During Fiscal Year 1992 and Pending on September 30,1992 2.00 000 cen, TT , 33 B. Statutes Involving the U.S. International Trade Commission .... . 61 C. Reports Submitted to Congress on Proposed Legislation, Fiscal Year 1992 65 D. Litigation in Fiscal Year 1992 pebueweseebersess yeenwes | 79 THE COMMISSION The United States International e directing actions, subject to Phe six Commissioners are Frade Commission (ITC) is a Presidential disapproval, against appointed by the President and quasi-judicial, independent, and unfair trade practices such as patent contirmed by the Senate for terms bipartisan agency established by infringement, of nine years, unless appointed to Congress with broad investigative ¢ making recommendations to fill an unexpired term, The terms powers on matters of trade. In its are set by statute and are staggered adjudicative role, the ITC makes the President regarding relief for determinations of injury and threat industries seriously injured by so that a different term expires of injury to U.S. industry by every 18 months. A Commissioner Increasing IMPOrts, imports who has served for more than five e advising the President whether years 1s incligible for reappo nt As the Government's think agricultural imports interfere with tank on trade, the ITC is a national ment. No more than three Com. price-support programs of the U.S resource where trade data are missioners may be members of the Department of Agriculture: gathered and analyzed. The data same political party. The Chairman are provided to the President and ¢ conducting studies on trade and the Vice Chairman are desig Congress as part of the information and tariff issues and monitoring nated by the President and serve for on which U.S. trade policy is based import levels; and a Statutory two-year term. The ITC activities include ¢ = participating in the Chairman may not be of the same ¢ determining whether U.S development of uniform statistical political party as the preceding industries are materially injured by data on imports, exports, and Chairman, nor may the President imports that benefit from pricing at domestic production and in the designate two Commissioners of less than fair value or from establishment of an international the same political party as the subsidization, harmonized commodity code Chairman and Vice (| SUMMARY OF INVESTIGATIONS COMPLETED, FISCAL YEAR 1992 Tariff Act of 1930: Section 332 investigations ............c.ee. e.e0ue e 15 Section 337 — investigations of alleged unfair practices in the import and sale of imported products ......... 13 Antidumping and countervailing duty investigations (123 antidumping investigations — 98 preliminary and 25 final; 56 countervailing duty investigations — 48 preliminary and eight final) ...............006. 179 Trade Act of 1974: Section 406 — market disruption ..............000005. l Sections 131 and 503 — advice on possible trade SS cbbe sheds sd eneeerteeeseresceeses: 4 Omnibus Trade and Competitiveness Act of 1988: ETT TCT TTT TETETITUL TERT TTT Eee all i. oPTvUTTrT rTTUTLETETTyLYITPTrLETeiTrTeT e 213 Investigations completed during fiscal year 1992 and investigations pending on September 30, 1992, are shown in appendix A. THE COMMISSIONERS N Don E. Newquist, a Democrat of Peter S. Watson, a Republican of David B. Rohr i Democrat of Texas, was designated Chairman of California, was designated Vice Marvland. became a member of the the ITC by President Bush on Chairman of the [TC by President Commission on March 27 QJ December 13, 1991, and was Bush for the term June 17, 1992, and was sub { redesignated Chairman on June 16, through June 16, 1994. He was atermendt 1992, for the term ending June 16, nominated to the Commission by He ithe ser 1994. Mr. Newquist was appointed President Bush on October 23 terms of leng! vice. B to the Commission to fill an 1991, for the term December: IPPOINTMs totheT IC. VM unexpired term on October 18, 1991, through December 16 M) r was Staff director of t} 1988, and reappointed to a nine-year Prior to his appointment to the mmittee on Ways and Mea term ending December 16, 1997 Commission, Mr. Watson served in Subcommittee on Trade inthe U.S Prior to his appointment, Mr the White House as Director of House of Representatives. He was a Newquist was with Valcro Energy Asian Affairs at the National trade advisor and the principal Corporation as Senior Vice Security Council from 1989 to lhaison with the ITC, the Office of President for Corporate Relations 199]. During 1976 and from 1978 the United States Trade He also served as general manager through 1988, Mr. Watson practiced Repr ntative. and other Federal of the Chamber of Commerce of international and business law in Mir. Rohr also served as Denver, CO, and betore that was Los Angeles and Washington, D¢ he Trade Nevotrations with the Chamber of Commerce of He has been an adjunct Associate Corpus Christi, TX. He is a past Professor in International Trade & Departn { Hle president of the South Texas Investment Law and International merce Chamber of Commerce Business Law. From 1985 through 1986, Mr. Watson served as Chairman of the Los Angeles County Bar Association's International Law Section an ] trex 1986 through 1987, was ¢ of the State Bar of Califor International Practice Com: w Anne E. Brunsdale, a Republican of Carol T. Crawford, a Republican of Janet A. Nuzum,. a Democrat of the District of Columbia, became a Virginia, was nominated to the Virginia, became a member of the member of the Commission on Commission by President Bush and Commission on November 26 January 3, 1986. She was confirmed by the U.S. Senate on 1991. She w wryvir if i ir the nominated to the Commission by November 20, 1991. Ms. Crawford Commissior r President Reagan and was was sworn in as a member of the confirmed bs yenat confirmed by the United States Commission on November 22 term ending | 6H, 1996. P Senate for the term ending June 16, 1991, for the term ending Junc this appointment, Ms. Nuzun 1993. Ms. Brunsdale served as Vice 1999. Prior to her appointment | rved on the majority staff of ' Chairman of the ITC for the the ITC, Ms. Crawford was an mmmittee on Ways and Means two-year Statutory term from June Assistant Attorney General Subcommittee on Trade in the U.S 17, 1990, to June 16, 1992. In the (Legislative Affairs) in the U.S. House of Representatives, under absence of a designated Chairman Department of Justice. From 1985 Chairman Dan Rostenkowski and during the period June 17, 1990, to to 1989, Ms. Crawford served as Subcommittee Chairman Sam December 12, 1991, she served as Associate Director of the Office of (Gibbons. During her tenure there the Acting Chairman. Earlier in her Management and Budget in the from 1983 through 1991, Ms. term, President Reagan designated Executive Office of the President Nuzum acvised Committee Ms. Brunsdale Vice Chairman on In that position, she was responsible international trade and June 17, 1986, and redesignated her for oversecing the budgets of fiv: turiff legislation. trad rreements Vice Chairman on June 27, 1988. cabinet level departments and evotrations Thereafter, in the absence of a related smaller agencies. Ms. idministrat {the | designated Chairman, she served as Crawford served as Director of the laws. Ms. Nuzsun nev and Acting Chairman until the President Bureau of Consumer Protection of Sel \ \ t designated her Chairman on March the Federal Trade Commission from Int » Section of th 28, 1989, for the term which ended 1983 to 1985 and as Executive pc | during on June 16, 1990 A native of Assistant to the Chairman of the 1990-91. She received her B.A Minnesota, Ms. Brunsdale came to Federal Trade Commiss! from Smith College and a J.D. from the ITC from the American 1981 to 1983. Ms. Craw! (jcorgctown University Law Center Enterprise Institute for Public Policy a B.A. from Mt. Holyoke ( Rescarch, Washington, DC, where and a J.D., magna cum laud she was serving as resident fellow of the Washington College |A W the Institute and managing editor of American University its bimonthly magazine, Regulation INTRODUCTION Fiscal year (FY) 1992 was a June 1992. These petitions were year of significant milestones and filed after the March 1992 changes at the United States expiration of voluntary restraint International Trade Commission agreements on steel exports to the 1992 marked the ITC's 75th United States from certain consecutive year of providing trade countries and the cessation of expertise to the Federal multilateral negotiations on anew Government. The ITC's ever- international steel agreement. expanding workload included a Among the other FY 1992 growing number of cases in which U.S. companies sought import cases that attracted mayor public relief. The demand for ITC interest was an antidumping investigation on minivans from research into important trade topics Japan. This investigation repre- increased as well. sented the first time in a decade that During FY 1992, one-half of the U.S. automobile industry had the Commission’s membership brought such a major trade case changed, bringing new personal- before the ITC. Another case that ities and perspectives to the ITC. attracted international attention was Since mid- 1990, the Commission the U.S. Department of Com- had had only four Commissioners, merce’s self-initiated counter- two fewer than its full complement vailing duty case on softwood of six. The Senate confirmations of lumber from Canada. Carol T. Crawford and Janet A. Nuzum in November 1991 filled An increasing number of those two vacancies. In addition, in requests for ITC research into the December 1991, Peter S. Watson background and implications of was sworn in to succeed Com- major trade policy issues occurred missioner Seeley G. Lodwick, in FY 1992. In particular, the whose term ended. President and Congress asked the ITC to analyze a number of The number of countervailing different aspects of the proposed duty and antidumping investi- North American Free- Trade gations undertaken by the ITC in Agreement (NAFTA). FY 1992 surpassed that of recent years. Notable among these Cleaily, FY 1992 was full of investigations were those resulting changes and challenges. Asa from 84 antidumping and res t, the ITC entered its 76th year countervailing duty petitions on wil. anew sense of activity and flat-rolled steel products filed in mission. PART I. HIGHLIGHTS INVESTIGATIONS UNDER SECTION 337 OF THE TARIFF ACT OF 1930 Under section 337 of the Tariff Act of 1930, the ITC conducts investigations into alleged unfair practices in import trade. Most complaints filed under this pro vision involve allegations of patent, copyright, or trademark infringe ment. Allegations regarding misappropriation of trade secrets, passing off, false adver ising, and violations of the antitrust laws have also formed the basis of complaints Ra i . filed under this provision. A more P Oe on ae ee detailed explanation of section 337 Chairman Don Newquist (third from left) tours Disputada Copper Mine in the of the Tariff Act of 1930 is set forth mountains above Santiago, Chile, in July 1992, along with company officers and in appendix B. U.S. Embassy officials. During FY 1992, the ITC allegations that respondents’ asection 337 handled a varicty of patent-based products infringed registered of violation “ section 337 investigations, common law trademarks respondent a: to pay a including four investigations in $100,000 civil penalty to th which complainants alleged that In FY 1992, as in previous United States. This was the their patented processes were being years, the section 337 caseload was nstance in which the IT( employed abroad without authori- highlighted by investigations egotiated payment of a penalt zation in order to produce goods involving high-technology in alleged violation of an orde: that respondents imported into the products. Significant among these issued in a section 337 United States. These process were investigations concerning investigation. patent investigations involved a semiconductor products, including variety of end products, including static random access memories; INVESTIGATIONS Static random access memory chips memory controllers for interfacing UNDER TIPLE Vil OF and other integrated circuit chips between the microprocessor and the for computer applications; main memory of a computer; single Hk TARIFF ACT OF acid-washed denim garments; and in-line memory modules used to 1930 bulk bags for storing and shipping expand memory capacity in dry materials, such as chemicals computers and in other electronic and fertilizers. products; and integrated circuit Inf Y 19 titions telecommunication chips that A filed with the TT a wide Two section 337 investigations control dialing functions in inety Of products, including included allegations that telephones and other telecommun: ulfanils 1 uranium, stainless respondents’ products infringed cations equipment. Other investi steel py lasstum hydroxide U.S. patents covering the overall gations focused on condensers used stribution cable, appearance or design of a product in automobile air-conditioners portable seismographs, steel wire One section 33/7 investigation medical devices, supplies rope, sulfur dyes, several types of revolved around allegations that diagnostic equipment, w Stee! bars, dynamic random access respondents had misappropriated working accessories; plasti: memories (DRAMs:), steel rails the complainant's trade secrets and for carrying or displaying | limestone, stainless steel pipe were using them in manufacturing commercial food portione: littings, ferrosilicon, professional operations abroad to produce power tools, carbon stecl plate, industrial mixing devices that were Also in FY 1992. as a result of carbon steel hot-rolled sheet, then imported into the United an informal enforcement carbon steel cold-rolled sheet, States. Two investigations included proceeding tn which allegations of carbon steel corrosion-resistant