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NEWS RELEASE 98-044; JUNE 11, 1998 June 11, 1998
News Release 98-044
Inv. No. 753-TA-34

IMPORTS OF EXTRUDED RUBBER THREAD FROM MALAYSIA WOULD NOT LIKELY INJURE U.S. INDUSTRY IF COUNTERVAILING DUTY ORDER IS REVOKED, SAYS ITC

The United States International Trade Commission (ITC) today made a negative determination in its review investigation of extruded rubber thread from Malaysia.

The negative determination resulted from a 3-0 vote. Chairman Marcia E. Miller, Vice Chairman Lynn M. Bragg, and Commissioner Carol T. Crawford voted in the negative.

The negative determination means that the ITC found that an industry in the United States is not likely to be materially injured by reason of imports of extruded rubber thread from Malaysia if an existing countervailing duty order is revoked.

As a result of the ITC's negative determination, the U.S. Department of Commerce will revoke the existing countervailing duty order on extruded rubber thread from Malaysia.

Section 753(a) of the Tariff Act of 1930 provides that, in the case of a countervailing duty order with respect to which an affirmative determination of material injury by the Commission was not required at the time the order was issued, certain interested parties may request that the Commission initiate an investigation to determine whether an industry in the United States is likely to be materially injured by reason of imports of the subject merchandise if the order is revoked. Such a request concerning the countervailing duty order on extruded rubber thread from Malaysia was filed on June 30, 1995, by North American Rubber Thread, Fall River, MA.

The Commission's public report Extruded Rubber Thread from Malaysia (Investigation No. 753-TA-34, USITC Publication 3112, June 1998) will contain the views of the Commission and information developed during the investigation.

Copies of the report are expected to be available without charge after July 16, 1998, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.


FACTUAL HIGHLIGHTS

EXTRUDED RUBBER THREAD FROM MALAYSIA
Investigation No. 753-TA-34

Product Description: Extruded rubber thread (ERT) consists of vulcanized rubber thread, of any cross sectional shape, having a diameter ranging from 0.18 mm (0.007 inches, or 140 gauge) to 1.42 mm (0.056 inches, or 18 gauge). It is produced by low-pressure extrusion of stabilized, compounded natural rubber latex. The textile industry is the largest user of ERT. The product is processed into apparel such as panty hose and women's lingerie and is incorporated in wearing apparel such as underwear waistbands, sock tops, and parts of jogging suits. ERT is also used in the manufacture of more diverse products such as diapers, furniture webbing, and rubber toy "koosh" balls.

Status of Proceedings:

     1.   Type of investigation: Request for continuation of countervailing duty order.
     2.   Investigation requested by: North American Rubber Thread Co.
     3.   Investigation instituted by the USITC: December 15, 1997.
     4.   Commission hearing: May 5, 1998.
     5.   USITC vote: June 11, 1998.
     6.   USITC determination to the U.S. Department of Commerce: June 25, 1998.

U.S. Industry:

     1.   Number of producers in 1997: Two.
     2.   Location of producer's plants: Massachusetts.
     3.   Employment of production and related workers in 1997: 1/
     4.   Apparent U.S. consumption in 1997: 34,414,000 pounds
     5.   Ratio of total U.S. shipments of imports to total U.S. consumption in  1997: 1/

U.S. Imports:

     1.   Quantity of subject imports in 1997:  1/
     2.   Value of subject imports in 1997:  1/

______________________
1/ Withheld to avoid disclosure of confidential business information.
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