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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 19USC1336]

 
                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                     SUBTITLE II--SPECIAL PROVISIONS
 
          Part II--United States International Trade Commission
 
Sec. 1336. Equalization of costs of production


(a) Change of classification or duties

    In order to put into force and effect the policy of Congress by this 
chapter intended, the commission (1) upon request of the President, or 
(2) upon resolution of either or both Houses of Congress, or (3) upon 
its own motion, or (4) when in the judgment of the commission there is 
good and sufficient reason therefor, upon application of any interested 
party, shall investigate the differences in the costs of production of 
any domestic article and of any like or similar foreign article. In the 
course of the investigation the commission shall hold hearings and give 
reasonable public notice thereof, and shall afford reasonable 
opportunity for parties interested to be present, to produce evidence, 
and to be heard at such hearings. The commission shall report to the 
President the results of the investigation and its findings with respect 
to such differences in costs of production. If the commission finds it 
shown by the investigation that the duties expressly fixed by statute do 
not equalize the differences in the costs of production of the domestic 
article and the like or similar foreign article when produced in the 
principal competing country, the commission shall specify in its report 
such increases or decreases in rates of duty expressly fixed by statute 
(including any necessary change in classification) as it finds shown by 
the investigation to be necessary to equalize such differences. In no 
case shall the total increase or decrease of such rates of duty exceed 
50 per centum of the rates expressly fixed by statute.

(b) Repealed. Pub. L. 96-39, title II, Sec. 202(a)(2)(A), July 26, 1979, 
        93 Stat. 202

(c) Proclamation by the President

    The President shall by proclamation approve the rates of duty and 
changes in classification specified in any report of the commission 
under this section, if in his judgment such rates of duty and changes 
are shown by such investigation of the commission to be necessary to 
equalize such differences in costs of production.

(d) Effective date of rates and changes

    Commencing thirty days after the date of any presidential 
proclamation of approval the increased or decreased rates of duty and 
changes in classification specified in the report of the commission 
shall take effect.

(e) Ascertainment of differences in costs of production

    In ascertaining under this section the differences in costs of 
production, the commission shall take into consideration, in so far as 
it finds it practicable:

                (1) In the case of a domestic article

        (A) The cost of production as hereinafter in this section 
    defined; (B) transportation costs and other costs incident to 
    delivery to the principal market or markets of the United States for 
    the article; and (C) other relevant factors that constitute an 
    advantage or disadvantage in competition.

                (2) In the case of a foreign article

        (A) The cost of production as hereinafter in this section 
    defined, or, if the commission finds that such cost is not readily 
    ascertainable, the commission may accept as evidence thereof, or as 
    supplemental thereto, the weighted average of the invoice prices or 
    values for a representative period and/or the average wholesale 
    selling price for a representative period (which price shall be that 
    at which the article is freely offered for sale to all purchasers in 
    the principal market or markets of the principal competing country 
    or countries in the ordinary course of trade and in the usual 
    wholesale quantities in such market or markets); (B) transportation 
    costs and other costs incident to delivery to the principal market 
    or markets of the United States for the article; (C) other relevant 
    factors that constitute an advantage or disadvantage in competition, 
    including advantages granted to the foreign producers by a 
    government, person, partnership, corporation, or association in a 
    foreign country.

(f) Modification of changes in duty

    Any increased or decreased rate of duty or change in classification 
which has taken effect as above provided may be modified or terminated 
in the same manner and subject to the same conditions and limitations 
(including time of taking effect) as is provided in this section in the 
case of original increases, decreases, or changes.

(g) Prohibition against transfers from the free list to the dutiable 
        list or from the dutiable list to the free list

    Nothing in this section shall be construed to authorize a transfer 
of an article from the dutiable list to the free list or from the free 
list to the dutiable list, nor a change in form of duty. Whenever it is 
provided in any paragraph of Subtitle I of this chapter, or in any 
amendatory act, that the duty or duties shall not exceed a specified ad 
valorem rate upon the articles provided for in such paragraph, no rate 
determined under the provisions of this section upon such articles shall 
exceed the maximum ad valorem rate so specified.

(h) Definitions

    For the purpose of this section--
        (1) The term ``domestic article'' means an article wholly or in 
    part the growth or product of the United States; and the term 
    ``foreign article'' means an article wholly or in part the growth or 
    product of a foreign country.
        (2) The term ``United States'' includes the several States and 
    Territories and the District of Columbia.
        (3) The term ``foreign country'' means any empire, country, 
    dominion, colony, or protectorate, or any subdivision or 
    subdivisions thereof (other than the United States and its 
    possessions).
        (4) The term ``cost of production'', when applied with respect 
    to either a domestic article or a foreign article, includes, for a 
    period which is representative of conditions in production of the 
    article: (A) The price or cost of materials, labor costs, and other 
    direct charges incurred in the production of the article and in the 
    processes or methods employed in its production; (B) the usual 
    general expenses, including charges for depreciation or depletion 
    which are representative of the equipment and property employed in 
    the production of the article and charges for rent or interest which 
    are representative of the cost of obtaining capital or instruments 
    of production; and (C) the cost of containers and coverings of 
    whatever nature, and other costs, charges, and expenses incident to 
    placing the article in condition packed ready for delivery.

(i) Rules and regulations of President

    The President is authorized to make all needful rules and 
regulations for carrying out his functions under the provisions of this 
section.

(j) Repealed. Pub. L. 96-39, title II, Sec. 202(a)(2)(D), July 26, 1979, 
        93 Stat. 202

(k) Investigations prior to June 17, 1930

    All uncompleted investigations instituted prior to June 17, 1930, 
under the provisions of sections 154 to 159 \1\ of this title, including 
investigations in which the President has not proclaimed changes in 
classification or increases or decreases in rates of duty, shall be 
dismissed without prejudice; but the information and evidence secured by 
the commission in any such investigation may be given due consideration 
in any investigation instituted under the provisions of this section.
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    \1\ See References in Text note below.
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(June 17, 1930, ch. 497, title III, Sec. 336, 46 Stat. 701; Aug. 2, 
1956, ch. 887, Sec. 2(d), 70 Stat. 946; Pub. L. 85-686, Sec. 9(c)(1), 
Aug. 20, 1958, 72 Stat. 679; Pub. L. 96-39, title II, Sec. 202(a)(2), 
July 26, 1979, 93 Stat. 202.)

                       References in Text

    Sections 154 to 159 of this title, referred to in subsec. (k), were 
repealed by section 651(a)(1) of act June 17, 1930.


                            Prior Provisions

    Provisions similar to those in this section were contained in act 
Sept. 21, 1922, ch. 356, title III, Sec. 315, 42 Stat. 941. That section 
was superseded by section 336 of act June 17, 1930, comprising this 
section, and repealed by section 651(a)(1) of the 1930 act.


                               Amendments

    1979--Subsec. (b). Pub. L. 96-39, Sec. 202(a)(2)(A), struck out 
subsec. (b) which related to the setting of ad valorem rates based upon 
the American selling price of domestic articles as would be necessary to 
equalize differences in the costs of production.
    Subsec. (c). Pub. L. 96-39, Sec. 202(a)(2)(B), substituted ``changes 
in classification specified in any report'' for ``changes in 
classification and in basis of value specified in any report''.
    Subsec. (d). Pub. L. 96-39, Sec. 202(a)(2)(C), substituted ``changes 
in classification specified in the report'' for ``changes in 
classification or in basis of value specified in the report''.
    Subsec. (f). Pub. L. 96-39, Sec. 202(a)(2)(C), substituted ``change 
in classification which has taken effect'' for ``change in 
classification or in basis of value which has taken effect''.
    Subsec. (j). Pub. L. 96-39, Sec. 202(a)(2)(D), struck out subsec. 
(j) which authorized the Secretary of the Treasury to make necessary 
rules and regulations for the entry and declaration of foreign articles 
with respect to which a change in the basis of value had been made.
    Subsec. (k). Pub. L. 96-39, Sec. 202(a)(2)(C), substituted ``changes 
in classification or increases or decreases'' for ``changes in 
classification or in basis of value or increases or decreases''.
    1958--Subsec. (a). Pub. L. 85-686 struck out provisions which 
authorized the commission to adopt such reasonable procedure and rules 
and regulations as it deemed necessary to execute its functions under 
this section. See section 1335 of this title.
    1956--Subsec. (b). Act Aug. 2, 1956, struck out ``(as defined in 
section 1402(g))'' after ``selling price''.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-39 effective July 1, 1980, see section 
204(a) of Pub. L. 96-39, set out as a note under section 1401a of this 
title.


                    Effective Date of 1956 Amendment

    Amendment by act Aug. 2, 1956, effective only as to articles 
entered, or withdrawn from warehouse, for consumption on or after 
thirtieth day following publication of the final list provided for in 
section 6(a) of said act, set out in note under section 1402 of this 
title, see section 8 of act Aug. 2, 1956, set out as an Effective Date 
note under section 1401a of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1352, 1484 of this title.