§1336 Equalization of Costs of Production

Summary

Orders the commission to check if U.S. import duties make U.S. goods and like foreign goods cost the same to produce. The commission must start an investigation when the President asks, when either or both Houses of Congress pass a resolution, on its own, or when someone with an interest asks. The commission must give public notice, hold hearings, and let interested parties show evidence and speak. It must report its findings to the President. If the commission finds the current statutory duty rates do not make costs equal when compared to the main competing foreign country, it must say what duty increases, decreases, or classification changes are needed. Any total change cannot be more than 50 percent of the statutory rate. The President must approve those changes by proclamation if he agrees they are necessary. Approved changes take effect 30 days after the proclamation. Changes already in effect can be changed or ended in the same way. The rule cannot move an item from the free list to the dutiable list or vice versa, and it cannot exceed any maximum ad valorem rate set elsewhere. The President may make rules to carry out these duties. Investigations started before June 17, 1930, are dismissed without penalty, but the evidence from them may be used later. Definitions (one line each): domestic article — made wholly or partly in the United States; foreign article — made wholly or partly outside the United States; United States — the states, territories, and the District of Columbia; foreign country — any non‑U.S. country, colony, dominion, protectorate, or subdivision; cost of production — the representative period cost for materials, labor, direct charges, usual overhead (including depreciation, rent, interest), and packing and delivery costs. When foreign cost is hard to find, the commission may use weighted invoice averages or average wholesale selling prices.