[Federal Register Volume 61, Number 158 (Wednesday, August 14, 1996)]
[Notices]
[Pages 42264-42265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20724]


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INTERNATIONAL TRADE COMMISSION


Report to the President on Investigations Nos. TA-201-65 and 
NAFTA-302-1; Broom Corn Brooms \1\

Investigation No. TA-201-65

Determinations and Findings With Respect to Injury
    On the basis of the information in the investigation--
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     1 Broom corn brooms are provided for in subheadings 
9603.10.05, 9603.10.15, 9603.10.35, 9603.10.40, 9603.10.50, and 
9603.10.60 of the Harmonized Tariff Schedule of the United States 
(HTS).
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Chairman Rohr and Commissioners Newquist, Nuzum, and Bragg--
    (1) Determine that broom corn brooms are being imported into the 
United States in such increased quantities as to be a substantial 
cause of serious injury to the domestic industry producing an 
article like or directly competitive with the imported article; and
    (2) find, pursuant to section 311(a) of the North American Free-
Trade Agreement (NAFTA) Implementation Act, that imports of broom 
corn brooms produced in Mexico account for a substantial share of 
total imports of such brooms and contribute importantly to the 
serious injury caused by imports; but find that imports of broom 
corn brooms produced in Canada do not account for a substantial 
share of total imports and thus do not contribute importantly to the 
serious injury caused by imports.

    Commissioners Crawford and Watson determine that broom corn brooms 
are not being imported into the United States in such increased 
quantities as to be a substantial cause of serious injury or threat of 
serious injury to the domestic industry producing an article like or 
directly competitive with the imported article.
Findings and Recommendations With Respect to Remedy
    Chairman Rohr and Commissioner Newquist--

    (1) Recommend that the President increase the rate of duty, for 
a 4-year period, on each of the categories of imports of broom corn 
brooms that are the subject of this investigation to a rate equal to 
the column 1 general rate of duty plus 12 percent ad valorem in the 
first year, 9 percent ad valorem in the second year, 6 percent ad 
valorem in the third year, and 3 percent ad valorem in the fourth 
year;
    (2) having found that imports the product of Mexico account for 
a substantial share of total imports and have contributed 
importantly to the serious injury, recommend that Mexico not be 
excluded from this relief action; but having made a negative finding 
with respect to imports the product of Canada, recommend that such 
imports be excluded from any relief action;
    (3) recommend that the President, for the duration of the relief 
action, suspend duty-free treatment on the subject articles entered 
from Caribbean Basin and Andean countries and apply the column 1 
general rate plus the additional ad valorem rates of duty described 
above to imports from such countries; and
    (4) recommend that this import relief action not apply to 
imports the product of Israel.

    They find that this remedy will address the serious injury that 
they have found to exist and will be the most effective in facilitating 
the efforts of the domestic industry to make a positive adjustment to 
import competition. This remedy recommendation incorporates their 
separate recommendation with regard to NAFTA-302-1, discussed below.
Commissioners Nuzum and Bragg--
    (1) Recommend that the President impose a rate of duty, in lieu 
of the current column

[[Page 42265]]

1 general rate of duty or preferential rate of duty in effect under 
NAFTA, the Caribbean Basin Economic Recovery Act, or the Andean 
Trade Preference Act, as the case may be, on imports of broom corn 
brooms other than whisk brooms, as follows--

40 percent in the first year of relief;
32 percent in the second year of relief;
24 percent in the third year of relief; and
16 percent in the fourth year of relief.

    Where a higher rate of duty would otherwise apply to imports 
from any country, in any year, that higher rate would take effect.
    (2) Recommend that this import relief action not apply to 
imports produced in Israel or Canada.

    They find that this remedy will address the serious injury that 
they have found to exist and will be the most effective in facilitating 
the efforts of the domestic industry to make a positive adjustment to 
import competition.

Investigation No. NAFTA-302-1

Determinations With Respect to Injury
    On the basis of the information in the investigation--
    Chairman Rohr and Commissioners Newquist, Crawford, Nuzum, and 
Bragg determine that, as a result of the reduction or elimination of a 
duty provided for under the NAFTA, broom corn brooms produced in Mexico 
are being imported into the United States in such increased quantities 
(in absolute terms) and under such conditions so that imports of the 
article, alone, constitute a substantial cause of serious injury to the 
domestic industry producing an article that is like, or directly 
competitive with, the imported article.
    Commissioner Watson determines that broom corn brooms from Mexico 
are not, as a result of the reduction or elimination of a duty provided 
for under the NAFTA, being imported into the United States in such 
increased quantities (in absolute terms) and under such conditions so 
that imports of the article, alone, constitute a substantial cause of 
serious injury or threat of serious injury to the domestic industry 
producing an article that is like, or directly competitive with, the 
imported article.
Findings and Recommendations With Respect To Remedy
    Chairman Rohr and Commissioners Newquist and Bragg find and 
recommend that, in order to remedy serious injury, it is necessary for 
the President, for a 3-year period, to increase the rate of duty on 
imports of broom corn brooms produced in Mexico receiving tariff 
preferences under NAFTA to the column 1 general rate of duty currently 
imposed under the HTS on such brooms. This remedy recommendation is 
incorporated into Chairman Rohr's and Commissioner Newquist's various 
recommendations with regard to TA-201-65, discussed above. Commissioner 
Bragg excludes whisk brooms from this remedy recommendation.
    Commissioner Crawford finds and recommends that, in order to remedy 
serious injury, it is necessary for the President, for a 2-year period, 
to increase the rate of duty on imports of broom corn brooms from 
Mexico receiving tariff preferences under NAFTA to the column 1 general 
rate of duty currently imposed under the HTS on such brooms.
    Commissioner Nuzum finds and recommends that, in order to remedy 
serious injury, it is necessary for the President, for a 3-year period, 
to increase the rate of duty on imports of broom corn brooms, except 
whisk brooms, from Mexico receiving tariff preferences under NAFTA as 
follows--

    (1) For the first 2 years, to the column 1 general rate of duty 
currently imposed under the HTS on such brooms; and
    (2) For the third year, to a rate that is one-half the 
difference between the current column 1 general rate of duty and the 
rate of duty that is currently scheduled to be in effect at the end 
of the 3-year period.

Background

    Following receipt of petitions filed on March 4, 1996, on behalf of 
the U.S. Cornbroom Task Force and its individual members, the 
Commission instituted Investigations Nos. TA-201-65 and NAFTA-302-1. 
Notice of the institution of the Commission's investigations and of 
public hearings to be held in connection therewith was given by posting 
copies of the notice in the Office of the Secretary, U.S. International 
Trade Commission, Washington, DC and by publishing the notice in the 
Federal Register of March 18, 1996 (61 FR 11061). The hearings (May 30, 
1996, for the injury phase and July 11, 1996, for the remedy phase) 
were held in Washington, DC, and all persons who requested the 
opportunity were permitted to appear in person or by counsel.
    The Commission transmitted its determinations in these 
investigations to the President on August 1, 1996. The views of the 
Commission are contained in USITC Publication 2984 (August 1996), 
entitled ``Broom Corn Brooms: Investigations Nos. TA-201-65 and NAFTA-
302-1.''

    Dated: Issued: August 7, 1996.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 96-20724 Filed 8-13-96; 8:45 am]
BILLING CODE 7020-02-P