whether an increase or a decrease in the rate of duty is sought.

(c) Supporting information. The applicant must file with his application such supporting information as may be in his possession. As far as practicable, information of the following character should be furnished:

(1) Comparability of the domestic and foreign articles and the degree of competition between them.

(2) Trend in recent years of (i) domestic production, (ii) domestic sales, (iii) imports, (iv) costs of production, and (v) prices.

(3) Evidence of difference between domestic and foreign costs of production of the articles involved.

(4) Areas of greatest competition between the imported and domestic products and the principal market or markets in the United States.

(5) Other relevant factors that constitute, in the opinion of the applicant, an advantage or disadvantage in competition, and any other information which the applicant believes the Commission should consider.

§ 202.3 Preliminary inquiry.

Upon the receipt of an application properly filed, the Commission will make a preliminary inquiry for the purpose of determining whether there is good and sufficient reason for a full investigation. If such determination is in the affirmative, a full investigation will be instituted. § 202.4

Public hearing.

A public hearing will be held in connection with each full investigation to which this Part 202 relates.

duction, domestic and, so far as known, foreign, may be submitted subject to verification and review in the Commission's investigation. Such statements should include not only the direct costs for materials and labor, commonly termed prime cost, but also indirect costs such as indirect labor, overhead factory expenses, fixed charges, the portion of general and administrative expense chargeable to manufacture, imputed interest on investment equity, and transportation to markets. For the foreign product the expenses (other than duties) incident to importation are also important. Any information which may be available bearing on the general levels of domestic and foreign costs of production, the differentials between particular elements of domestic and foreign costs, and the extent to which invoice or wholesale prices are reliable evidence of foreign costs, will be pertinent.

(d) Other significant advantages or disadvantages in competition.

§ 202.5 Type of information to be developed at hearing.

Without excluding other factors, but with a view to assisting parties interested to present information necessary for the formulation of findings required by the statute, the Commission will expect attention in the hearing to be concentrated upon facts relating to:

(a) The degree of competition between the foreign and domestic articles in the markets of the United States.

(b) The degree of likeness or similarity between grades, classes, and price groups of the American product and the imported article.

(c) Costs of production and importation. Statements of average cost of pro

203.9

203.10

Rehearings; appeals.

203.11 Transmittal to President.

AUTHORITY: The provisions of this Part 203 issued under sec. 335, 72 Stat. 680; 19 U.S.C. 1335.

SOURCE: The provisions of this Part 203 appear at 27 F.R. 12120, Dec. 7, 1962, unless otherwise noted.

§ 203.1 Applicability of part.

This Part 203 applies specifically to investigations under section 337 of the

Tariff Act (19 U.S.C. 1337). For other applicable rules see Part 201 of this chapter.

§ 203.2 Preparation and submittal of complaints.

(a) Who may file.

Complaint alleging violation of section 337 of the Tariff Act may be made by any interested person, partnership, association, or corporation.

(b) Requirements for complaints. In addition to conforming with the requirements of § 201.8 of this chapter, complaints shall—(1) be under oath; (2) state the nature of business of complainant; (3) state the name, address, and nature of business of the person or persons alleged to violate section 337; (4) include a description of the domestic industry affected; (5) include a statement of the facts constituting the alleged unfair methods of competition or unfair acts; (6) state specific instances of alleged unlawful importations or sales; and (7) include economic data concerning domestic production and distribution, imports and their distribution, and other pertinent facts upon which complainant bases his claim (i) that the domestic industry concerned is efficiently and economically operated and that it is being or is likely to be destroyed or substantially injured by the importations or sales in question; (ii) that the alleged unlawful acts are preventing the establishment of an efficiently and economically operated domestic industry; or (iii) that the alleged unlawful acts are having the effect or tendency of restraining or monopolizing trade and commerce in the United States.

(c) Amendment of complaints. Complaints may be amended, for good cause shown, at any time prior to the institution of a formal investigation.

2 Section 337(a) of the Tariff Act provides for Commission investigations, upon complaint under oath or upon its own initiative, of alleged violations of that section. That section declares unlawful: "Unfair methods of competition and unfair acts in the importation of articles into the United States, or in their sale by the owner, importer, consignee, or agent of either, the effect or tendency of which is to destroy or substantially injure an industry, efficiently and economically operated, in the United States, or to prevent the establishment of such an industry, or to restrain or monopolize trade and commerce in the United States". (19 U.S.C. 1337(a)).

Upon the receipt of a complaint, properly filed, the Commission will make a preliminary inquiry for the purpose of determining whether there is good and sufficient reason for a full investigation and, if so, whether the Commission should recommend to the President the issuance of a temporary order of exclusion from entry (if requested by complainant) under section 337 (f) of the Tariff Act.

§ 203.4 Action upon conclusion of preliminary inquiry.

Upon the conclusion of a preliminary inquiry the Commission will determine whether a full investigation is warranted. If this determination is in the affirmative, the investigation will be ordered. If a temporary exclusion order was requested, the Commission will also determine whether the issuance of such an order by the President should be recommended. If the Commission determines that a full investigation is not warranted, the complaint will be dismissed.

§ 203.5 Public hearing.

A public hearing will be held in connection with each full investigation to which this Part 203 relates. § 203.6

Service of complaints; answers to complaints.

After a full investigation shall have been ordered, but not before, a copy of the complaint will be served by the Commission upon any owner, importer, or consignee, or the agent of any of them,

Section 337(f) of the Tariff Act provides: "Whenever the President has reason to believe that any article is offered or sought to be offered for entry into the United States in violation of this section but has not information sufficient to satisfy him [self] thereof, the Secretary of the Treasury shall, upon his request in writing, forbid entry thereof until such investigation as the President may deem necessary shall be completed; except that such articles shall be entitled to entry under bond prescribed by the Secretary of the Treasury". (19 U.S.C. 1337(1)).

§ 203.10

Rehearings; appeals.

Section 337 (c) of the Tariff Act authorizes rehearings by the Commission on questions of either fact or law and appeals by the importer or consignee within 60 days to the United States Court of Customs and Patent Appeals upon a question or questions of law only. If no appeal is filed within the time prescribed and no rehearing granted, or if appeal is filed or rehearing granted and the Commission's findings are ultimately affirmed, the findings are then considered final.

§ 203.11 Transmittal to President.

The final findings of the Commission will be transmitted with the record to the President for his consideration.'

• Section 337(e) of the Tariff Act provides: "Whenever the existence of any such unfair method or act shall be established to the

satisfaction of the President he shall direct that the articles concerned in such unfair methods or acts, imported by any person violating the provisions of this Act, shall be excluded from entry into the United States, and upon information of such action by the President, the Secretary of the Treasury shall, through the proper officers, refuse such entry. The decision of the President shall be conclusive". (19 U.S.C. 1337(e)).

"Section 22 provides in part as follows: "(a) Whenever the Secretary of Agriculture has reason to believe that any article or articles are being or are practically certain to be imported into the United States under such conditions and in such quantities as to render or tend to render ineffective, or materially interfere with *** any loan, purchase, or other program or operation undertaken by the Department of Agriculture, or any agency operating under its direction, with respect to any agricultural commodity or product thereof, or to reduce substantially the amount of any product processed in the United States from any agricultural commodity or product thereof with respect to which any such program or operation is being undertaken he shall so advise the President, and, if the President agrees that there is reason for such belief, the President shall cause an immediate investigation to be made by the United States Tariff Commission, which shall give precedence to investigations under this section to determine such facts. Such investigation shall be made after due notice and opportunity for hearing to interested parties, and shall be conducted subject to such regulations as the President shall specify.

A public hearing will be held in connection with each investigation to which this Part 204 relates. The Foreign Agricultural Service of the U.S. Department of Agriculture may have a representative or representatives at each hearing who shall have the privilege of examining witnesses.

§ 204.4 Supplemental investigations.

An investigation for the purposes of section 22(d) of the Agricultural Adjustment Act, as amended, will be made upon request of the President, or upon the Commission's own motion when in its judgment there is good and sufficient reason therefor. A public hearing will be held in connection with each such supplemental investigation.

the case of a proclamation issued pursuant to subsection (b) of this section, any proclamation or provision of such proclamation may be suspended or terminated by the President whenever he finds and proclaims that the circumstances requiring the proclamation or provision thereof no longer exist or may be modified by the President whenever he finds and proclaims that changed circumstances require such modification to carry out the purposes of this section." (7 U.S.C. 624.)

Regulations of the President are set forth in Executive Order 7233 of November 23, 1935.

Reports to President confidential.

Subpart B-Reservation of Certain

Articles From Negotiation

Description of subpart.

Filing of requests for reservation.
Investigations.

Advice to the President.

AUTHORITY: The provisions of this Part 205 issued under sec. 335, 72 Stat. 680, sec. 401, 76 Stat. 902; 19 U.S.C. 1335, 1802.

SOURCE: The provisions of this Part 205 appear at 27 F.R. 121222, Dec. 7, 1962, unless otherwise noted.

§ 205.1

Applicability of part.

This Part 205 applies specifically to investigations to obtain information necessary to the preparation of advice to the President under sections 221 and 225(b) of the Trade Expansion Act (19 U.S.C. 1841, 1845). For other applicable rules see Part 201 of this chapter. Subpart A-Investigations Relating to Presidential Lists of Articles

§ 205.2 Description of subpart.

This Subpart A relates to investigations to obtain information pertinent to the preparation of advice to the President under section 221(b) of the Trade Expansion Act with respect to articles included in a list furnished the Commission by the President pursuant to section 221(a) of that Act."

'Section 221 (a) and (b) of the Trade Expansion Act provides:

"(a) In connection with any proposed trade agreement under this title, the President shall from time to time publish and furnish the Tariff Commission with lists of articles which may be considered for modification or continuance of United States duties or other import restrictions, or con

(a) Hearings required. Public hearings will be held in connection with every investigation to which this Subpart A relates.

(b) Requests to appear; witnesses. Requests to enter an appearance at a hearing under this Subpart A shall be filed as soon as practicable after publication of the notice of hearing, but not later than the date specified in the notice of hearing. Such requests shall contain the following information: (1) The name, address, and telephone number of the person filing the request and, if the request is filed by an attorney or agent, the name and address of the firm or organization he represents; (2) the identity of the witness or witnesses who will testify; and (3) an indication of the item or items in the list respecting which it is intended to present testimony.

(c) Allotment of time. The Commission may limit the time for presentation of oral testimony when it determines such limitation to be in the public interest.

tinuance of United States duty-free or excise treatment. In the case of any article with respect to which consideration may be given to reducing the rate of duty below the 50 percent limitation contained in section 201(b) (1), the list shall specify the section or sections of this title pursuant to which such consideration may be given.

"(b) Within 6 months after receipt of such a list, the Tariff Commission shall advise the President with respect to each article of its judgment as to the probable economic effect of modifications of duties or other import restrictions on industries producing like or directly competitive articles, so as to assist the President in making an informed judgment as to the impact that might be caused by such modifications on United States industry, agriculture, and labor." (19 U.S.C. 1841.)

8 Section 221(a) of the Trade Expansion Act (19 U.S.C. 1841) provides that lists of articles furnished the Commission shall be published by the President. Such publication will be in the FEDERAL REGISTER, usually in the same issue as that in which the Commission's notice of investigation appears.

Reports of the Commission to the President of advice based upon investigations to which this Subpart A relates are not released to the public.

Subpart B-Reservation of Certain Articles From Negotiation

§ 205.7 Description of subpart.

This Subpart B relates to requests under section 225(b) of the Trade Expansion Act for the reservation of certain articles from negotiation for the reduction of any applicable duty or other import restriction or the elimination of any applicable duty.'

'Section 225 (b) of the Trade Expansion Act provides:

"(b) During the 5-year period which begins on the date of the enactment of this Act, the President shall reserve an article (other than an article which, on the date of the enactment of this Act, was described in subsection (a)(3)) from negotiation under this title for the reduction of any duty or other import restriction or the elimination of any duty where

(1) pursuant to section 7 of the Trade Agreements Extension Act of 1951 (or pursuant to a comparable Executive Order), the Tariff Commission found by a majority of the Commissioners voting that such article was being imported in such increased quantities as to cause or threaten serious injury to an industry,

(2) such article is included in a list furnished to the Tariff Commission pursuant to section 221 (and has not been included in a prior list so furnished), and

(3) upon request on behalf of the industry, made not later than 60 days after the date of the publication of such list, the Tariff Commission finds and advises the President that economic conditions in such industry have not substantially improved since the date of the report of the finding referred to in paragraph (1)." (19 U.S.C. 1845.)