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USTR Seeks Comments on Section 421 Remedy Proposals for Certain Ductile Iron Waterworks Fittings from China

The Office of the U.S. Trade Representative (USTR) has issued a notice inviting comments from interested parties on the International Trade Commission's (ITC's) proposed remedy, and other possible actions, with respect to the market disruption caused by imports of certain ductile iron waterworks fittings from China.

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(See ITT's Online Archives or 12/17/03 news, 03121725, for BP summary of ITC press release announcing its three remedy proposals regarding this investigation.)

ITC Proposes a TRQ for a Three-Year Period

A majority of ITC commissioners have recommended that the President impose a tariff-rate quota (TRQ) on imports of the subject ductile iron waterworks fittings from China for a three-year period, as follows: an additional 50% tariff on imports exceeding 14,324 short tons in the first year; an additional 40% tariff on imports exceeding 15,398 short tons in the second year; and an additional 30% tariff on imports exceeding 16,553 short tons in the third year.

The ITC further recommended that, if applications are filed, the President direct the Departments of Commerce and Labor to provide expedited consideration of trade adjustment assistance for firms and/or workers affected by the subject imports.

President to Make Determination after Receipt of USTR's Recommendation

According to the USTR, it is required to make a recommendation to the President concerning what action, if any, to take to remedy the market disruption. The USTR further explains that within 15 days after receipt of USTR's recommendation, the President is required to provide import relief unless the President determines that provision of such relief is not in the national economic interest of the U.S. or, in extraordinary cases, that the taking of action would cause serious harm to the national security of the U.S.

- public hearing will be held on February 2, 2004, if requested by January 20, 2004

- written comments and requests to testify at hearing (if held) are due by January 22, 2004

Sandy McKinzy (procedural questions)(202) 395-9483
Terrence McCartin (other questions)(202) 395-3900

ITC notice announcing affirmative market disruption determination (Inv. No. TA-421-4, FR Pub 01/02/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/03-32259.pdf

USTR notice (FR Pub 01/06/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-214.pdf

BP Note

Subscribers should note that in the first and second Section 421 market disruption investigations, which concerned pedestal actuators and certain steel wire garment hangers, respectively, from China, President Bush determined to not provide import relief for the respective U.S. industries, despite the ITC's recommendations for such relief. (See ITT's Online Archives or 01/29/03 and 04/29/03 news, 03012930 and 03042930, for BP summaries of the President's determination on each investigation.)

For the third Section 421 market disruption investigation regarding certain brake drums and rotors from China, the ITC issued a negative determination. (See ITT's Online Archives or 08/07/03 news, 03080730, for BP summary.)