October 11, 2016
News Release 16-129
Inv. No(s). 332-325
Contact: Peg O'Laughlin, 202-205-1819
USITC to Update Report on Effects of U.S. Import Restraints

The U.S. International Trade Commission (USITC) has begun an update of its report on the effects of significant U.S. import restraints. The report will also examine the effects of tariffs and of customs and border procedures on global supply chains.

The report, The Economic Effects of Significant U.S. Import Restraints: Ninth Update; Special Topic: Effects of Tariffs and of Customs and Border Procedures on Global Supply Chains, was requested by the U.S. Trade Representative (USTR) in a letter received on September 13, 2016. In the letter, the USTR noted:  “The rising importance of global supply chains means that intermediate inputs are increasingly traded across borders.  Tariffs and inefficient customs and border procedures can raise the price of these inputs in each country they enter along the global supply chain, while their removal can substantially improve global welfare.  An overview of these inefficiencies along the supply chain would be a useful special topic in the report."

The ninth update will contain two parts. The first part will assess the economic effects of significant import restraints on U.S. consumers, workers, and firms. The USTR also requested that the ninth USITC report include an assessment of how significant U.S. import restraints affect households with different incomes.  As in the past, and as requested by the USTR, the USITC will not assess import restraints resulting from antidumping or countervailing duty investigations, section 337 and 406 investigations, or section 301 actions.

The second part of the report will describe, to the extent practicable, the cumulative effects of tariffs and customs and border procedures on global supply chains.  It will also include the effect on services to the extent that they depend on goods traded through global supply chains.  It will provide an overview of the recent literature that discusses the effects of these costs along the supply chain.  It will also provide case studies examining supply chain inefficiencies stemming from customs and border procedures abroad in relevant industries.

The USITC will hold a public hearing in connection with investigation at 9:30 a.m. on February 9, 2017. Requests to appear at the hearing should be filed no later than 5:15 p.m. on January 26, 2017, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. For further information, call 202-205-2000.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary at the above address and should be submitted at the earliest practical date, but no later than 5:15 p.m. on March 1, 2017. All written submissions, except for confidential business information, will be available for public inspection.

Further information on the scope of the investigations and appropriate submissions is available in the USITC's notice of investigation, October 11, 2016, which can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at 202-205-2000.

USITC general factfinding investigations, such as these, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, and the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

# # #