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Author: 



U.S. Federal Trade 
Commission 

Title: 

Supplemental report on 
antidumping legislation. 

Place: 

[Washington, D.C.] 

Date: 

[1 938] 



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U.S. Federal trade commission. 

... Supplem^a taJ report on antidumping legislation and^ 
Other import regulations in the United States and foreign 
oonntrieB. June 27, 1988. tWashington, 1938] 

cover-title, 1 p. 1., Hi, [li. HI P. 25i*. 

At head of title: Federal trade commission. 
Lithographed. 



1 Dumping (Commercial policy) i:. Title: AnUdumplng legislation 
...m the United States and foreign countries. 



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Supplemental report on antidumping,.. 

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Columbia University 
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5CT 2 3 1939 



FEDERAL TRADE COMMISSION 



SUPPLEMENTAL REPORT ON ANTIDUMPING 
LEGISLATION AND OTHER IMPORT REGULATIONS 
IN THE UNITED STATES AND FOREIGN COUNTRIES 



JUNE 27. 1938 



Juae 27, 1938 • 



1^ dear Mr. President: 

Herewith I have the honor to transmit the report of 
tte Federal Trade Canilsslon, dated Jime 27, 1938, on 
totlduqplng L^lBlatlon and Other Import Regulations In 
tbe Itolted states and Foreign Countries as a supplement to 
a report on the same subject prepared by the Commission In 
1934 and printed as S«mte Doeunent No. 112, 73d Congress, 
2nd Session. 

By dlrectlcm of the Comlsslon. 



Garland S. Fer^ison, 
Qialnan. 



The President of the Senate,^ 
Washington, D. C. 

IX- 683 



i 

I 



II 



Page 



Ecuador: Tariff Act of 1927 as amended in 1931 and 
1936, Decree of February 13, 1936 



Egypt: Law of February 14, 1930, as amended 
September 19, 1935 



r 

37 

Estonia: Decree of September 2, 1936 , |q 

Finland: Laws of January 13, 1933, December 31, 1935 
and December 30, 1936 



France: Decree of 1931 as amenled by law of July 9, 19^ 



Germany: Enabling Act of March 24, 1933, and Foreign 
Exchange Ccmtrol Law of February 4, 1935 42 



Great Britain: Antidumping Bill In 1934, Key Iniustiles 
Act of 1921 extended on August 19, 1936 



4e 



Hungary: Customs Law of June 26, 1926 4R 

India: Safeguarding of Industries Act of 1033. and Bounty I 
Duaplng Act of 1934 ' A 



Iran: Trade Monopoly Act of 1931 as anended In 1932, 
and Tariff Act of May 22, 1936 



Iraq: CuBtow Tariff Law of 1933 45* 

Italy: Ro^l Decree Law, Septaiber 28, 1933 45 

J^pan: Law for Adjustaent and Protection of Foreign 

trade, 1934, as aaended In 1936 45 

lAtvla: Law of Oeceirib^ 23, 1932 47 

Mtberlands: Laws of August 5, 1933, May 17, 1984, 

and Royal Deorae of Beoeater 31, 1936 43 

Hew Zealand: 0|>eratlon of the Custone Ai»ndment \ 

Act of 1921 ^ I 



Mewfoundland: Revenue Acts of 1933 and 1935, as amended 
by tim ftolff Awndnent Acts of 1936, 1938 



40 



Paraguay: Tariff Act of 1925, and law of October 26, 1935 .... 51 
Pwu: Law of November 14, 1936 53 



III 



Pop.and: Decree of October 27, 1933, and Customs 
jDecree Law of 1934 • • 



Portugal: Decree of December 31, 1929 



Rli^esla, Southern: Customs Amendment Acts, 1935 and 1937 . 

Ri mania: Tariff Act of 1929, and Customs Regulations, 

April 8, 1933 • 



S4l.vador: Legislative Decree No. 67 of 1934 



ith Africa - Basutoland, Bechuanaland and Swaziland 



S^uth Africa, UnKm of: Customs Tariff and Excise Duties 
Act of 1925, as amended In 1931, 1934 and 1936 



Spain: Decrees of mar&i 10, 1934, and May 23, 1934 

Turkey: Treaty of COBmerce with Japan, effective on 
i April 19, 1934 



Page 

52 
53 
53 

54 
55 
55 

56 
61 

63 



i 




APPENDIX 



Pals 

£xhiblts: 



1. Excerpts from the U. S. Revenue Act of Septeniber 8, 



/ 

t 

1916 lli 

\ 

Z. Antidumping provisions of tlae U. S. Emergency ) 
Tariff Act of my 27, 1921 M 

3. Excerpts from tlie U. S. T&rlff Act of June 17, 

1930 72 

4, Ebccerpts from the U. S. Agricultural Adjustoent 
Act of 1933, as amended in 1935, further amended by 
the Soil Conservation and Domestic Allotment Act of 
1936, and affirmed by the Agricultural mrkatlng 
Agreemat Act of 1937 • • 8) 

5. U. S. Trade Agreemoits Act, June 12, 1934, as 

extended by Joint Resolution <m mrch 1, 1937 86 

6, Australian Custons Tariff (industries Preservation) 

Act of 1921, as amended In 1922, 1933 and 19Sd • 88 

?• Antidumping provisions of the Canadian Customs 

Tariff Act, as amended In 1934, 1936 and 1937 96 

8. Antidumping provisions of the Southern Fhodeslan 

CustooB fliid ibcclse Amenctent Act, May 18, 1937 1P2 

9. Antidumping provisions of t^e South African 
Customs Tariff and Excise Duties Amendment Act, 
1925, as amended In 1931, 1932, 1934, 1936 and 

1937 105 



ffllPPUMMTAL REPORT QN AMTTntJNPTMl LEGISLATION 
AMD OTHER IMPORT REGULATIONS 
TM THE UNITED STATES AND FOREIGN COUNTRIES 



The following report prepared by the Federal Trade Commission 
under 8ectl<m 6(h) of the Federal Trade Commission Act, is supple- 
mental to a report on Antidumping Legislation and Other Inyport 
Regulations In the united States and Foreign Countries, prepared by 
the n ftMMi on and printed as Saiate Document No. 112, 73d Coogzess, 
2nd Session, in 1934. 

Infomatlon Included therein was obtained from legislative 
reports, foreign periodicals, and Oovemment papers, including 
consular reports received througji courtesy of the Iftilted States 
Departmant of State and records of the imited States Tariff 
C(»mlsslon, Bureau of Customs In ttie Treasury Department, and the 
Division of Foreign Tariffs In Vdb Department of Coimierce* 

SUmARY OF M&ASUR&S DURINQ THE PAST FOUR mRS 

As will be seen from the more detailed report ¥4ildi follows, a 

number of measures have been adopted in this country and abroad 
during the past four years, in addition to tliose adopted before and 
still in effect, in prevention of dumping or other restrictive or 
unfair practices used in import trade. 

In the United States, duties have been imposed to offset 
bounties abroad, and in some cases goods were excluded on the ground 
of unfair methods of competition or unfair acts in importation. 
Some duties have continued in effect to prevent imports at prices 
below the fair value or the cost of production. The Federal Trade 
Commission Act was amended in 1938 to prohibit not only unfair 
methods of competition, but "unfair or deceptive acts or practices" 
in interstate and foreign commerce. A number of inquiries were 
made under the National Industrial Recovery Act prior to its invali- 
dation in 1935. The Agricultural Adjustment Act was amended in 1935 
and again by the Soil Conservation and Domestic Allotment Act of 
1936, authorizing limitation of importation if goods are coming in 
under such conditions and in sufficient quantities as to render 
Ineffective or materially Interfere with the program or operation 
of those acts. The Trade Agreements Act of 1934, passed as an 
amendment to the Tariff Act of 1930, authorized trade agreements 
with f oreipi fDYemnants or Instnimentalltles whenever existing 



. 1 



- 2 - 

duties or other lBB)ort restrictions of the united States or any 
foreign country are unduly burdening or restricting the foreign 
trade of this country. 

In the British colonies, especially in South Africa, numerous 
orders have been issued to prevent ordinary, bounty and exchange 
dumping. The Soutai African law was amended in 1936 and the 
Australian law in 1933 and 1936. Some amendments were made in the 
^UlAdlan law including exchange dumping provisions adopted in 1985. 
An antidumping law passed in Newfoundland in 1935 was repealed in 
part in 1936. A law passed in Soutliem Rhodesia in 1935 followed 
the lines of others in the British colonies; the same temis appear 
in the Customs Act of 1937. An exchange dumping law was passed in 
Egypt In 1935 and applied to goods from Japan and China. The 
Safeguarding of Industries Act passed in India in 1933 was followed 
by a bounty dumping law In 1934. In England a bill was Introduced 
in 1934, but not passed, under v*ilch goods affected by currency 
Inflation might have been excluded. The British Key Industries 
Duties Act of 1921 was again extended for a ten year period begin- 
ning In August 1936. 

In France the exchange dumping measures adopted In 1931 were 
continued, and a number of orders have been Issued affecting goods 
from more than twenty countries In Europe, South and Central 
America, and the Far East. A French decree In December 1933 pro- 
vided that exchange compensation surtaxes may be withdrawn on goods 
from any country the currency of which has remained stable for a 
period of at least one year. 

The Italian Government adopted a plan, through a Royal decree 
in 1933, for Increase of duties by a "coefficient of compensation" 
proportionate to depreciation of currency In the country of export. 
Other countries that have more recently passed measures In preven- 
tion of exchange dumping Include Cuba, Denmark, Egypt, Estonia, 
Inm, Paraguay, Poland, and Rumania. 

In addition to those already noted, measures In prevention of 
bounty du]q[>lng were passed in Bulgaria, Ciiba, France, Japan, Poland, 
and Qpain. 

Several Latin American countries, including Bolivia, Ecuador, 
and Paraguay, l»ve laws Intended to protect national industries from 
trusts, cartels, or "arbitrary conbinations" in foreign countries, 
and fro« prejudicial transportation facilities offered by co]Bt>lna- 
tion agreMsnts. A Spanish decree in 1934 Included such a provi- 
sion as to goods produced by coiriblnes or international cartels. In 
Brazil a decree in 1934 au^rized a reduction of duties on imports 
if similar goods produced or aaxiceted by Brazilian trusts or cartel^ 
are sold at high prices. A law passed in Bulgaria in 1936 would \ 
permit a lowered duty if goods are sold at unduly hijji prices on th^ 
local market y^en this is established by a price control agency. 



I 



In some laws, provision has been made to prevent the Importa- 
tion of goods produced by forced labor, prlcon labor, or by workers 
at low wage levels or under unfavorable working conditions (Cuba In 
1935, Spain In 1934). The Spanish law provides for duties also In 
case of sale at prices "below the nonnal low prices due to the fact 
that m the production of the goods the International regulations In 
respect of social matters and especially as regards wages and work- 
ing conditions have not been observed." 

More general provisions are found in some measures in retalia- 
tion or defense against unfavorable trade conditions or restrictions 
In other countries. A Belgian law passed in 1931 and amended in 
1934, provided for measures "v^en owing to extraordinary and 
abnormal circumstances the vital interests of the country are 
ln5)erlled." A Netherlands law in 1934 provided for the imposition 
of import duties "In order to prevent the ruin of Dutch industries 
by foreign measures v^ich threaten their existence." The Customs 
Tariff Law of Iraq in 1933 authorized duties "if at any time it 
ehall appear that protective or retaliatory action is necessary 
owing to the interests of Iraq being endangered by events in a 
foreign country." Laws in Finland in 1933, 1935, and 1936 provided 
mBasures to offset restrictions abroad detrimental to Finnish 
exports. An act effective in Poland In 1934 provided for "retali- 
atory duties on merchandise originating in countries in which Polish 
goods and maans of transportation receive worse treatment than is 
accorded to mBrchandlse and means of transportation from other 
countries." In Japan a law in 1934 provided for duties In retalia- 
tion of unfavorable conditions including saiipping rates, and in 1935 
an laiport tax of fifty percent became effective on products from 
countries v^ose trade was "excessively unfavorable to Japan" or 
which had Imposed "arbitrary" duties on Japanese goods . The Chinese 
Constitution, 1936, gave to the Finance mnlster wride powers over 
tariff matters in the event of "national emerg^cy or great econo^ * -* 
crisis v^lch calls for urgent measures." 

In many foreign countries, exchange control measures have 
offered means for the exclusion or limitation of Imports under 

variable circumstances, including quota plans and licensing of 
Imports. In some, such as Germany, all foreign trade has been con- 
ducted under Government regulation, and specific dumping measures 
are not necessary. 

There is also a growing tendency toward adjustment of com- 
plaints against restrictive measures, through international agree- 
ment. That is the avowed purpose of the U., S. Trade Agreements Act 
of 1934, and most of the foreign trade of Europe and Latin America 
is now on the basis of commercial agreemencs between the countries 
Involved. In some cases trade agreements have included clauses 
relating to dumping; no extended search has been made for clauses of 
this nature, but a few that have come to our attention may be cited. 
In this country, for instance, an exchange of notes In connection 



with the reciprocal trade agreement between the United States and 
Netherlands, effective in 1936, provided for Informal notice and 
opportunity for representation to be made to the other Government 
concerned, before any antidumping or countervailing duty Is Inqposed. 
In the reciprocal trade agreement between the United States and 
Canada, provision was made whereby certain U. S. Internal taxes 
were to be excluded from values for Canadian duii?)lng purposes. 
After Inquiries by the Tariff Commission under the National 
Industrial Recovery Act, orders were rendered unnecessary by agree- 
ment of Japanese exporters of pencils and rugs, and Canadian 
exporters of red cedar shingles, for limitation of exports to the 
imited States, In 1934. 

Under Australian and Canadian agreements, the products of each 
country are exempt from, dumping duty In the other. Agreements 
between Canada and New Zealand provide that dumping duties may not 
be applied without prior notice to the other country and an (wor- 
tanity given for renedlal measures. 

France has entered Into a nuiit)er of agreements In adjustment 
of controversies over «cdiange compensation surtaxes, including the 
Franco-Portuguese agreements of July 12, 1932 and July 27, 1933; a 
cc»Mrcial agreement with the Soviet on January 11, 1934; an 
eorohange of notes with D^tunark in July 1934; a compensatioi agree- 
ment with Uruguay on January 25, 1936; and a comaerclal agreement 
between France and the B^gium-Luxenburg Economic Uhicm on April 6, 
1985. An agreement between France and Portugal on March IZ, 1934, 
abrogated countervailing duties on cod-f 18h imported into Portugal 
trm France or St. Plerpe and mquelon, or direct from the fisheries 
teving been caui^t by Frendi vessels. 

A c onrc ial agreraent entered into by the Oovenunents of 
India and Japan in 1934 included provisions for adjustment of con- 
troversies over the effects of depreciation of the Indian rupee or 
tbm JiQ>anese yen. 



THE UNITED STATES 

SuMmry of united States Laws 

In the united States, dumping duties have been provided in case 
of importation at less than the fair market value or cost of produc- 
tion abroadi/ and for the purpose of offsetting bounties or 8id>8i- 
dies granted in foreign countries .S/ Authority is also given to 
exclude convict made goods or those produced by forced or indentured 



1. Tariff Act of 1921, Sees. 201 to 212. See Exhibit 2 herewith. 

2. • " " 1930, Sec. 303. * * 3 



► - 5 - 

labor,!/ to Impose duties In case of discrimination against the com- 
merce of this country,^/ or to exclude aitry in case of unfair com- 
petition or unfair acts In the Importation of artlcles.a^ 

► 

Dunqplng Is classified as an act of unfair competition in the 
Revenue Act of 1916, and pro-^-lslon made for suit In a District Court 
and three-fold damages If the defendant is guilty of a misdemeanor 
In selling Imported goods at a price substantially less than the 

^ actual narket value or wholesale price of such articles in the prin- 
cipal mrkets of the country of their production, or of other foreign 
countries to which they are commonly exported, if such act or acts 
be done with the intent to destroy or injure an industry in the 
United States, or to prevent the establishment of an industry In the 

^ United States, or to restrain or monopolize any part of trade and 
commerce In such articles In the United States .^^ 

The Federal Trade Commission Act of 1914, as amended on 
^ March 21, 1938, prohibits unfair methods of competition In comr- 
UBrce, and unfair or deceptive acts or practices in commerce. 

Section 704 of the Act creating a Tariff Commission, 
September 8, 1916,^ gave to that office authority to Investigate: 

► 

the tariff relations between the United States and foreign 
countries, conmercial treaties, preferential provisions, 
economic alliances, the effect of export bounties, and 
preferential transportation rates, the volume of Importa- 
^ tions compared with domestic production and consumption, 

and conditions, causes, and effects relating to competition 
of foreign industries with those of the imited States. 

Subsequent laws have repeated and added to the duties of the Tariff 
^ CoHdssion, including Part 2 of ttke Tariff Act of ld30.-^ 

The NatKmal Industrial Recovery Act§/ effective from June 16, 
1933, until decision of the U. S. Supreme Court in the Schechter 
I case in 1936^ provided for limitation of Imports through the use of , 
fees, licenses and quantity reetrictKms. 



1. Tariff Act of 1930, Sec. 307. See Exhibit 3 herewith. 

f 2. ■ " " 1930, " 338. " " 3 " 

3. • " " 1930, • 337. " " 3 " 

4. Revenue Act of 1916, Sees. 800, 801, " " 1 " 

5. Public NO. 203, 63d Cong., and Piiblic No. 447, 75th Cong. 
^ 6. 39 Stat. 796. 

7. 46 Stat. 590. 

8. 48 Stat. 195. 

9. Schechter Poultry Corp. et al v. U. S., 295 U. S. 495. 



f 



- 6 - 

The Agricultural Adjustment Act as amended by the Soil 
Conservation and Domestic Allotment Acti/ provided for Inquiries by 
the U. S. Tariff Commission and orders by the President In limita- 
tion ot iiqports that come into the United States In sufficient 
quantities and under such conditions as to materially interfere with 
any program or op^ation undertaken by the agxl cultural acts. 

Tho Trade Agreements Act of June 12, 1934,^ passed as an aaend 
nent to the Tariff Act of 1930, authorized foreign trade agreements 
with foreign govemBents or instrumentalities vhenever eacisting 
dutie8> or ot^er iB|K)rt restrictions of t2ie Uhited States or any 
foreign country are unduly burdening and restricting the foreign 
^rUe of this country. 



Antidumping Act of 1921 

•nie antidumping provisions of the Tariff Act of May 27, 1921, 

found In Title II, Sees. 201 to 212, and known as the Antidumping 
Act of 1921,3/ provide for Investigations by the Treasury Department 
and special duties to be Imposed If: 

an Industry In the United States Is being or is likely to 
be injured, or is prevented from being established, by 
reason of the importation into the United States of a class 
or kind of foreign merchandise, and that merchandise of 
such class or kind is being sold in the United States or 
elsev\*iere at less than its fair value (or In the absence of 
such value^ than the cost of production.) 

No new duties have been imposed under this law, subsequent to- 
those covered by our report in 1934, but some have been revoked. On 
May 31, 1938, eighteen orders of revocation were issued, leaving in 
effect dumping duties on: 



1. Act of my 12, 1933, as amsnded Aug. 24, 1935, and Feb. 29, 1936, 
see fixhibit 4 herewith. 

2. Public No. 316, 73d Ccmgress, June 12, 1934. See EaOiibit 5 here- 
with. 

3. 42 Stat. 9. See Exhibit 2 herewith. 





From 


Inqposed 


T.D. 


Phosphate rock — 


Morocco 


Feb. 9, 


1928 


42o 7 7 


Safety matches — — — 


r xiiJiouivi. 


Mar. 23, 


1931 


44716 




Austria 


" 23, 


1931 


44718 


M « 


Latvia 


" 23, 


1931 


44719 


■ « 


Holland 


" 23, 


1931 


44720 


• M 


Norway 


" 23, 


1931 


44721 


■ a 


Poland 


" 23, 


1931 


44722 


• ■ 


Estonia 


" 23, 


1931 


44723 


Lighting carbooB 


France 


May 12, 


ia33 


46387 


Thumb tacks 


Germany 


S^t.l2, 


1933 


46615 


Electric lamps — 


Japan 


Sept. 12, 


1933 


46617 


Footwear, rubber-soled. 












Japan 


Sept .12, 


1933 


46618 


Fencing and netting. 










woven wire — — — — 


Germany 


Jan. 11, 


1934 


46826 



Section 303, Tariff Act of 1930.-^ 

This law repeated with some changes the provisions of earlier 
acts for additional duties on goods receiving In the country of 
production or export a bounty or grant upon their manufacture, pro- 
duction or exportation, directly or indirectly bestowed by a foreign 
Gtovernment or by a person, partnership, association, cartel or 
corporation. Bounty duties may not be applied to articles on the 
free list. Subsequent to those covered by our report In 1934, 
countarvaillng duties have been imposed upon: 





From 


Appn,ve<l 




Manufactures of silk 


Unit. King. 


Jan. 


16, 


1935 


47475 


and artificial silk. 












Wine and bottles con- 


Portugal and 


Jan. 


19, 


1935 


47487 


taining wine amd Its 


Islands 










derivatives. 












Aluminum foil and manu- 


Germany 


Jan. 


24, 


1935 


47501 


factured articles 












containing aluminum. 












Aluminum foil and manu- 


Unit. King. 


Jan. 


28, 


1935 


47502 


factured articles 




Mar. 


23, 


1935 


47594 


containing aluminum. 












Peas 


Netherlands 


Apr. 


26, 


1935 


47658 


Cheese 


Finland 


May 


4, 


1935 


47675 




France 


May 


15, 


1935 


47693 


Fi^ 


France 


June 


14, 


1935 


47742 



1. 46 Stat. 590, June 17, 1930. See Exhibit 3 herewith. 



- 8 - 



From 



Approved 



T.D, 



Spirits — — — 

Ckmese — 

Butter — 

HTB riour 

HfB grftln 

ttoata 

Vftrioiis ai^tlcles — — ~ 

Various articles 

Various articles — 

Various articles 

Butter — 

ToquiHa straw — 

Rye grain — 
Rye flour — — 

Butter — ~ — — - 

Fish 

Fruits 

Sugar 

Codfish roe 

igri cultural products ~ 



Unit. King. 

Finland 

Demark 

Poland 

Poland 

Ireland 

Ireland 

Qemany 

Ireland 

Qeroany 

Geroany 

Genany 

Australia 



DenMFk 
Poland 

Poland 

Netherl€Uids 
Lithuania 
Australia 
Nova Scotia 
Nova Scotia 
Australia 
Nova Scotia 
Unit. King. 
France 
Gersany 



June 20 
July 3 
Sept .28 
Oct. 22 
Oct. 22 
mr. 26 
my 20 
June 4 
June 2 
July 22 
Aug. 4 
Aug. 14 
Oct. 2 
Oct. 15 
Dec. 29 
Apr. 5 
Apr. 27 
Aug . 5 
Aug. 7 
Sept. 15 
Oct. 12 
Nov. 26 
Dec. 7 
Jan, 18 
Jan. 22 
Mar. 22 
Mar. 31 



1935 
1935 
1935 
1935 
1935 
1936 
1936 
1936 
1936 
1936 
1936 
1936 
1936 
1936 
1936 
1937 
1937 
19;^ 
1937 
1937 
1937 
1937 
1937 
1938 
1938 
1938 
1936 



47753 
47783 
47896 
479» 
479a 
48238 
48344 
48360 
48364 
48444 
48463 
48479 
48551 
48588 
48734 
48914 
48944 
49114 
49122 
49157 
49196 
49269 
49280 
49351 
49355 
49471 
49460 



In response to Senate Resolution No. 159, the U. S. Tariff 
Commission prepared a report In 1936 covering subsidies, bounties 
and other assistance given to fisheries enterprises by foreign 
Governments in countries exporting to the United States. 



Section 307, Tarif t Act of 1930. 

This section prohibits the importation of goods, wares, articles 
and merchandise mined, produced, or mstnufactured In a foreign country 
by convict labor, forced labor, or indentured labor upon penal 
sanctions.!/ 

Duties imposed on lumber and pulpwood from Russia in 1931 were 
reTOkBd on Jan. 24, 1934 (T.D. 46854). Duties iiqposed on railroad 
ties, wooden fence posts and charcoal from the Dominican Republic en 
Rot. 17, 1936 (T.D. 48646) were reiroked on 8^t. 29, 1937 (T.D. 
49172.) 



1. Text in Ixhibit 3 herewith. 



- 9 - 

Section 337, Tariff Act of 1980. 

Section 337 of the Tariff Act of 193Ci/ superseding provisions 
m Section 316 of the Act of 1922 (42 Stat. 858) declared unlawful 
unfair methods of competition in Import trade, and provided for 
inquiries by the Tariff Commission, report to the Presidtttt, and 
Executive Order of exclusion from entry. Appeal may be taken from 
the findings of the Commission, upon a question of law <mly, to tne 
U. S. Court of Customs and Patent Appeals. 

Inquiries under Section 337, subsequent to those covered in cur 
report in 1934, have Included: 

Rii(ift FastenP.rs and Parts. Temporary orders of exclusion 
issued August 30, 1932, and March 8 and my 12, 1933 (Bureau 
of Customs Circular Letters Nos. 902, 957, 991.) Findings Of 
unfair competition promulgated by the Tariff Commission on 
March 20, 1933, afflmBd by Court of Customs and Patent 
Appeals on May 27, 1934 (In re Orion Co., 71 F.(2d) 458; T.D. 
47123.) Final report to the President June 18, 1934, 
recomaendlng exclusion from entry. Final exclusion order 
issued on July 13, 1934 (T.D. 47179) pursuant to order of the 
President June 23, 1934; modified on November 30, 1934 (T.D. 
47S93) due to certain claims of two of the patents held 
invalid. Certain sections of this order have expired on their 
own terms on the dates of expiration of the patents, and 
other sections expire at various dates, the last in 1946. 

niri d^fi of Iron Suitable for P ip^nent Purposes. Tempo rar y 
order of exclusion issued March 8, 1933 (Bureau of Customs 
Circular Letter No. 958.) Findings of unfair competition 
promlgated by the Tariff Commission August 16, 1933, af finned 
by Court of Customs and Patent Appeals on May 23, 1934 (In 
re Northern Pigmait Co. et al, 71 F. (2d) 447; T.D. 47124.) 
Final report to the President on June 30, 1934, recommending 
exclusion from entry. Final exclusion order Issued August 20, 
1934 (T.D. 47225) pursuant to order of the President August 4, 
1934. On May 7, 1935, the Tariff Commission reopened 
investigation on motion of importers ttiat the final exclu- 
sion order be revoked or modified because of decision of the 
Court of Customs and Patent Ajpeals respecting process 
patents in In re Amtorg Trading Corporation, 75 F. (2d) 826. 
(See Phosphates end Apatite.) Modified order issued on 
January 28, 1936 (T.D. 48129) pursuant to order of ttie 
Presidoit dated Jsnuary 6, 1936. This exclusicxi order 
expired by its own tenas on Febmary 14, 1938. 

Phosphates and Apatite . Findings of unfair oMpetition 
promulgated by the Tariff ComBilssKm on January 15, 1934, 



1. Text in Ebdiiblt 3 herewith. 



- 10 



reversed by Court of Customs and Patent Appeals on 
February 24, 1935. The court In this case reversed Its 
former decisions with regard to process patents, and held 
that section 337 does not in any way Increase the rlgits of 
a patentee; that the owner of a process patent has no 
exclusive right over the sale of any product made by the 
process; and accordingly the importation for use or sale of 
an article made abroad by a process patented in the 
United States is not an unfair method of competition (In re 
Amtorg Trading Corporation, 75 F.(2d) 826; T.D. 47583; 
rehearing denied April 8, 1935; certiorari denied 296 U.S. 
576.) In its annual report to Congress for 1935 the Tariff 
Commission called attention to this case and recommended 
that the entire question of the rights of a patentee either 
of a product or a process patent should be governed by the 
patent law, and that the enforcement of such rights should. 
In all C€Lses, be by proceedings in the Federal courts 
exclusively (Nineteenth Annual E^ort, pp. 12 and 13.) 

Cigar Lighters, Tariff C(Hiinlsslon*s first investiga- 
tion resulted in tenqporary order of exclusion lssi»d July 8, 
1933 (Bureau of Customs Circular Letter No. 1014) pursuant 
to President's order of July 6, 1933, Findings of unfair 
co]i|>etition p]x>]iul^ted by Tariff Commission on January A, 
1934^ were not appealed. Report to President March 6, 1934, 
recoonended exclusion from entry. Pinal exclusion order 
i88i;»d April 9, 1934 (T.D. 47001) pursuant to President's 
order of March 17, 1934. The Tariff Conmlssion's seccxid 
investigation resulted in temporary order of exclusion 
issued Febnmry ZL, 1935 (T.D. 47532) pursuant to President's 
order dated Fel^ruary 7, 1935. Due to decrease in domestic 
dMOdd thereafter and practical cessaticm of domestic produc- 
tion because of the aasH demand for the type of lifi^ter 
involved, the Comission did not complete findings in this 
investigation. The President approved the Commission's 
investigation as adequate und^ the circumstances, and on 
S^teityer 30, 1936, ordered tlie temporary exclusion order 
terminated (T.D. 48568.) The Tiariff Ciamiission's third 
investigation was begun on August 14, 1936; as to this, the 
Comml^ion's annual rep(»rt for 1937 stated: 



"The third formal investigation under section 
337 respecting cigar lii^ters (Docket No. 11), 
instituted on August 14, 1936, was concerned princi- 
pally with alleged Eolation by importers of certain 
patents owned by a domestic manufacturer and alleged 
siniXation of cigar lighters produced ty that concern. 
On Noveniber 9, 1936, a temporary order of exclusion 
from entry under sub-division (f ) of section 337 was 
«it^7ed, and the Conmission subsequently held a public 



hearing in the investigation. None of the patents 
involved had at the time of the Investigation been 
adjudicated. 

During the investigation a United States District 
Court declined to enter a temporary injunction on two 
of the patents and expressed doubt as to their validity. 
The Coiinnlssion decided that simulation had not been 
established by the evidence in the investigation and 
that in the absence of adjudication of the patents the 
maintenance of an order of exclusion was not warranted. 
Pursuant to recommendation of the Commission, the 
President on July 22, 1937, terminated the temporary 
order of exclusion, and on July 27, 1937, the Commission 
dismissed the investigation without the pl*omul^tlon of 
foxml findii^s." (Twenty-first Annual Report, p. 37) 

Drive Springs . Temporary order of exclusion issued 
January 10, 1934 (Bureau of Customs Circular Letter No. 1088) 
pursuant to President's order of January 8, 1934. Findings of 
unfair competition promulgated by Tariff Commission on 
April 5, 1934; no appeal. Final report to President June 6, 
1934, recommending exclusion from entry. Final exclusion 
order on July 5, 1934 (T.D. 47168) pursuant to order of the 
President dated June 15, 1934. Ihis order expired by its om 
terms on mreh 4, 1936. 

ff^n^MA Mfttfti Rules. Investigation Instituted by 
Tta'iff Comiission on February 8, 1934. Temporary order of 
exclusion issued March 3, 1934 (Bureau of Customs Circular 
Letter HO. 1138; T.D. 46977 dated April 6, 1934); supple- 
monted January SL, 1935 (T.D. 47498) pursuant to President's 
order January 22, 1935. Findings of unfair competiticm pro- 
Bulgated by Ttoiff ComaiSBion on Octcber 2, 1935; no appeal. 
Report to President on DeceBl>er 2, 1935, recooaiending 
exclusion from entry. Final exclusion order issued January 23, 
1936 (T.D. 48121) pursuant to order of tHe President on 
Deceitt)er 24, 1936. Sections of this order expire by its own 
texms on various dates, beginning in 1939 and t2ie last in 1951. 

Cigarette ^^^Ipff Ma chines and Parts . Tariff Conassion 
investigation begun August 4, 1936, but suspended pending 
settlement of patent infringement litigation in the U. 8. 
District Court in New York. In Octdber 1937 the parUes 
entered into a stipulation adjusting the controversy. The 
Conmission's inquiry vias therefore dismissed on October 21, 

1937. 



In Its annual report for 1937, the Tariff Coaiissiai said, as 

work under Section 337: 



- 12 - 



"During the past year the Comnlsslon has hancaed a 
number of Inquiries and complaints concerning the violation 
of section 337. The original correapondmce In the greater 
number of these C(ai9)lalnt8 liKllcated that there was no viola- 
tion of section 337. Several cases warranted preliminary 
Inquiry, but In none of these was the Institution of a formal 
Investigation f<mnd necessary. Some of the complaints were 
taken up Inf oimlly with Importers, i«io thereupon agrtad to 
desist from the practices complained of, thus obviating the 
need for formal Investigation; in other cases that were taken 
VP with importers the facts disclosed Indicated no basis for 
proceeding under section 337. 

Patent infringement was the principal ground of com- 
plaint and m practically all cases neither the validity nor 
the scope of ttie patents had been adjudicated, in such cases 
the C(»lsslon has declined to order formal investigations 
undMT section 337, and in two cases principally involving 
pat^ts (discussed more fully hereafter) it has dismissed 
investlgatlcms which had been previously ordered. 

Ho fonnal Investigations under section 337 are now pend- 
ing before the Commission." (Twenty-first Annual Report, 
p. 36.) ' 

As to unfair methods or unfair acts in importation for use or 
sale in the United States of articles covered by product patents 
issued In the United States, and inportation for use or sale of goods 
made according to processes patented in the United States, the U. 8. 
lariff Conmlssion, in its annual report to Coigress in 1935, reconH 
mfflided transfer of Jurisdiction from the CcamlssKm to the courts. 
Cosmlsslon said: 

"The United States Court of Customs and Patent Appeals, 
In a number of decisions upheld the Jurisdiction of the 
Tariff Commission over patent cases, both with regaxd to 
product patents and process patents; on February 25, 1935 
the Court, however, reversed Its fonaer decisions wltti regaxxi 
to cases involving process patents. In the case of Amtorg 
Trading Corporation, 75 Federal Reporter (2d) 826, the court 
held that Section 337 did not Increase In any way the rights 
of a patentee; that the owner Of the process patent has no 
exclusive right over the sale of any product made by the 
process, and accordingly the laqportatlon for use or sale of 
products made abroad by a process patented In the 
United States was not an unfair method of conpetltlon. On 
October 14, 1935 a petition of certiorari was denied by the 
united States B^mm Court. 

The sltuatlwi created by this final decision of the 
court 18 (me that requires the consideration of Congress. 



13 - 



The owner of a process patent issued in the United States has 
now no protection of any kind against the use of that patented 
process without his consent outside the United States, and the 
importation into and sale within the United States of goods 
made by the process . The patentee may not proceed against 
the user of the process because the patent grant of exclusive 
right to use the patented process does not extend beyond the 
limits of the United States; he may not proceed against the 
importer of goods made by the process because, under existing 
patent law, his sole right is against the user of the process; 
and no proceeding may now be started under section 337; 
because the importation for sale or use of articles made 
abroad by a process patented In the United States Is not an 
unfair method of conpetltlon. 

The Comonilssion has not yet made a complete survey of 
the practice and law with regard to this matter in other 
countries, but so far as It has made an Inquiry It finds 
that other countries do protect an owner of a process patent 
from importation of goods made by the process abroad without 
the consent of the patentee. 

In Bigland the courts enjoin the Importers of goods 
manufactured abroad by a process patented In Oreat Britain. 
The patent laws of Japan erpreeBly provide that t^e owner of 
a process patent has exclusive right over use of the process 
and also the sale of the product made by the process. 
Furthermore, It provides that It Is a criminal offense to 
import Into Japan for use or sale articles made abroad by a 
process patented In Japan. 

The owner of a patented process has a conq[>let6 and 
adequate remedy for the protection of that process within 
the United States, because he can proceed against the manu- 
facturer and prevent any production of the article by the 
process other than that by himself or by his licensee. The 
only adequate method for protecting the owner of a patented 
process from competitioi from abroad would be through some 
control over the importation and sale of the product made by 
the process. This might be done In either of the following 
ways: 

(1) The patent law might be amended by providing that 
the importation for use or sale within the United States of 
a product made by a patented process without the consent of 
the patentee was a violation of the patent rlgit. 

(2) Section 337 of the Tariff Act of 1930 might be 
amended by adding language that would make it clear that the 
unlicensed Importation and sale or use of goods made by a 



- 14 - 

process patented In the iMitecl States Is an act cC untair 

I coapetitlon. 

ReccMieiKlatl ons • 

The Tariff Comnilsslon, as a result of Its experience In 
* dealing with section 337, Is conpelled to recoonend to the 

Congress that the entire question of the rights of a patentee 
either of a product pat«it or a process patent should be 
governed by the patent law and that the enforcenoit of such 
rights ^oidd^ in all cases, be by proceedings In the Federal 
courts exclusively. 

The T)u*lff Condsslcm Is prlnarlly a QoDemment agency 
to collect conplete and scientific Informtlon concerning 
tariffs and the effect thereof upon the Industry am revenue 
of the IMted States for the purpose of aiding the President 
and the Congress. 

The problem of vtfiether a certain article violates a 
ptLtmt, or whether a certain article was made by the use of 
a process patented In the united states, is a legal question 
of great difficulty and a very technical question. Neither 
the nabers of the Coinmlsslon nor its staff Is selected for 
tb» purpose of dealing with such technical legal questions. 
At present there Is concurrent Jurisdiction (respecting 
Imports) on patents by the Federal courts and the Tariff 
Comnlsslon. The Coiiinlsslon believes that all problems con- 
nected with patents should be dealt with by one branch of 
the Government, and that obviously should be the Federal 
» courts. The remedy of exclusion from entry Into the 

United States Is In many Instances a more adequate remedy 
than an Injunction viilch must apply only to certain named 
persons. However, the Commission sees no legal or practi- 
cal difficulty In providing In cases of Importation an 
additional remedy of exclusion from entry based upon a 
decision or ruling of the Federal courts. It believes that 
a procedure can be worked out which will furnish conplete 
\ protection for American patents. 

There Is another strong reason v*iy Jurisdiction over 
questions of Importation of patented articles of goods Bade 

I I by a patented process Should be In the courts rather tten 

^ the Tariff Conmlsslon: Before the Comiilssloii or before the 

1 1 Court of Customs and Patent Appeals no question can be 

raised as to the validity of the patent. This is a serious 
defect. As a matter of equity Interested parties ought to 
be able to raise the fundamental Issue as to whether a 
patent Is valid in a proceeding whl<ai may result In so sweep- 
ing an order .as a total exclusion from entry." (pages 12 to 



I 



This recommendation was repeated In the Tariff Comnlsslon annual 
report, 1936 (pages 45 to 47) . 

As to all other unfair methods of competition or unfair acts In 
the Importation and sale of merchandise, such as simulation, palming 
off, false branding, and other classes of unfair competition similar 
to those covered by Section 5 of the Federal Trade Commlssloi Act, - 
the Tariff Commission recommended In Its annual report to Congress, 
1935, that Jurisdiction be transferred from the Tariff Commission to 
the Federal Trade Commission: 

"With regard to other cases of unfair competition the 
Commission must point out that the Federal Trade Conmlsslon 
and the Tariff Commission now have concurrent Jurisdiction 
in all Import cases other than those involving patents. 
The remedy under the Federal Trade Commission Act is an 
order to cease and desist. Such an order is not as adequate 
a remedy in cases of imports as an order excluding all 
Imports of the article or commodity in question. Howsver, 
there would seem to be no legal difficulty whatever in pro- 
viding the additional remedy of exclusion from entry under 
the Federal Trade Commission Act in all cases dealing with 
unfair coiqpetltlon In the Importation and sale of articles 
from abroad. 

If these recommendations are accepted by the Congress 
the Tariff Conmlsslcn will be relieved of a class of work 
that Is not In line with Its primary functions and for vyhlch 
neither the Comnlsslon nor Its staff Is eepeclally fitted. 
Secondly, the courts will have exclusive jurisdiction of all 
patent cases and the Federal Trade Conlsslon will have 
exclusive Jurlsdlctlai of all cases of unfair conpetltlcn and 
unfair methods of trade. This course will prevent a certain 
amount of overlapping and will center enforcement of the 
provisions about unfair methods of co]q)etltldn In those 
governmoital bodies best equipped to deal therewith. 

If these recommendations are not accepted by the 
Congress, the Conmlsslon repeats Its recomiendatlons made 
in the sixteenth, seventeenth, and el^teenth annual reports 
for amendments to section 337 of the Tariff Act of 1930 In 
the matters of the signing of subpenas and the reimburse- 
ment of Importers for premiums on bonds In cases inhere 
temporary exclusion orders were Issued but where section 
337 was ultimately found not to have been violated." 
(Annual Report of the Tariff Commission, 1935, p.*14.) 

This recomnendatlon was repeated in the Tariff Commission report for 



9 



- 16 - 

"the experience of the CcmalaBim during the lest yeer 
with section 337 has conf lined and etrengtaiened Its TlevfS. 
The flatter is of aifflclent laqportance to require a restate- 
wmt of the argusients In fa^or of this course. 

The functions and duties of the Tariff C<«iil8Bl(m under 
section 337 differ fundamentally from its general duties and 
functions. The Comiisslon is prisiarlly an agency to collect 
complete and scientific infomatlon concerning tariffs for 
the purpose of aiding the President cmd the Congress. It Is 
a fact-finding body and its functions are purely econoBlG. 

Whether a certain practice or method of competition is 
'unfair' under section 337 Is a legal question, and the deci- 
sions of the Conmlsslon are subject to legal review in the 
Court of Customs and Patent Appeals. Neither the members of 
the Commission nor Its staff are selected for the purpose of 
dealing with technical patent questions or of exercising 
quasijudicial functions. 

At present the Tariff Conmlsslon and the Federal Trade 
Conmlsslon have concurrent Jurisdiction In all Import cases 
other than those involving patents. The Federal Trade 
CoEBnlsslon was created In 1914 and a large part of Its 
activities have been concerned with the enforcement of the 
law against unfair methods of competition. It has a large 
legal staff and has had 22 years of experience In dealing 
with this difficult subject. Clearly, the Federal Trade 
Coimlssion Is in a position to deal more adequately with the 
few caseiB of unfair conpetltlon that arise under section 337 
ttian is the Tariff CooBlsslon.'' CPages 45-46.) 



Section 33B of the Tariff Act of IdSO. 

Utider this section, the President \8 empowered to Impose new or 
additional xates of duty, not to exceed 60^ ad valorem or its 
equivalent, on any or all products of any foreign country which 
"dlscrlBlnates" against the coflnerce of this comtry; and m case of 
a continuance or Increase In such dlscrlBilnatlon, the President may 
order taie exclusion fron liqportatlon of such products.^/ No orders 
have been Issued under this section. 

As to t2ils sectKm, the Tiarlff CoBBlssicm reported to Coogress 
in 1996 ^t: . 

'The Conisslon studies acts of foreign countries itilch 
affect coHBrce of the Uhlted States to deteralne vtether 



^. Text m Iixhlblt 3 herewith. 



they result in discrimination against our commerce. In addi- 
tion to this current general study, the Commission investigates 
any act or practice, involving alleged discrimination, which 
nay he called to Its attention. The President has taken no 
action directly under this section; he has, however, found, 
under the authority contained in the Trade Agreements Act, 
that Genaanyl/ and AustrallaS/ discriminate against the comr- 
merce of the imited States and has withdraw from them the 
benefits of the concessions granted to other countries." 
(Annual Report of the Tariff Ccnanlsslon, 1936, p. 47.) 

In Its annual report for 1937, the Ttolff ComlsBlon said that 
one prellalnary Inquiry had been imAe during the year, under Section 
338, but "the instltutlcm of a fonoal Investigation In the case ms 
not warranted." 



The Itetlonal Industrial Recovery Act. 

Section 3(e) of the Natiaial Industrial Recovery Act passed on 
June 16, 1933,2/ provided that iftien loports were substantial or 
increasing in ratio to dcmestlc production, and were endangering the 
operation of the code or agreement in any particular Industry, an 
Investigation might be ordered by tlie President. If Investigation 
showed It necessary to limit imports in order that the code be not 
rendered Ineffective, the President was empowered to bring this about 
by the use of fees, licenses and quantity restrictions. The 
United States Tariff Commission was designated as the body to nake 
such Inquiries. An Imports division of the Nationsa Recovery 
Administration was set up to receive complaints, to make preliminary 
studies, and to recommend to the President for or against ordering 
investigation by the Tariff Ccmmisslon. (See Executive Order No. 
6353 of October 23, 1933.) 

Complainants were required to make a prlma-facle case, under 
rules and regulations adopted by the National Recovery 
Administration. (See N.R.A. Office Order No. 37 of October 24, 
1933.) After the Tariff Conmlsslon, at the direction of the 
President, made an Investigation and held public hearings, the 
President was empowered to act. In every Instance but one, where 
affirmative action was taken as the result of an Investigation by 
the Tariff Commission, relief was obtained throu^ an agreement. 



1. Under letter from the President to the Secretary of the Treasury, 
Apr. 6, 1938, territory formerly known as Austria is to be con- 
sidered as part of Germany, from May 6, 1938. 

2. On Jan. 25, 1938, the President directed the Secretary of the 

" Treasury to apply trade agreement rates to products of Australia 
on and after Feb. 1, 1938. 

3. 48 Stat. 195. 

— U.-«M 



either with repreeentativee of the fc»*eig& governneiits c<mceriied or 
with the rorsign exporters, voluntarily to linlt shipneata to this 
coontry to specified aaounts, rather than to hove them curtailed by 
the fees or quantity liMtation on iaqports liiich Bight otherwise 
have been i^>osed by this country. In case of cotton rugs, both 
fees and voluntary control of tho quantity of imports were 
employed.!/ 

Investigaticms made by the U.S. Tariff Commission under 
Secti<m 3(e) of the National Industrial Recovery Act, included t^ie 
following: 

Wood-cased Lead Pencils (from Japan.) Investigation 
begun Dec. 11, 1933. Tariff Commission report to the 
President Jan. 17, 1934. The Japanese exporters agreed to 
limit exports to the United States, effective on May 1, 1934, 
so no order was Issued. 

Rugs - Cotton (chenille). Hlt-and Miss. Imitation 
Oriental, and others (from Japan.) Investigation begun ^ 
Dec. 18, 1933. Tariff Commission report to the President 
MEir. 26, 1934, resulted in orders on May 30 and June 4, 
1934, imposing Import duties. Japanese Exporters agreed 
to limitation of exports effective in June 1934. Inqposl- 
tion of fees was rescinded on June 15, 1935 (after the 
Schechter decision.) This was the only product upon v4ilch 
duties were ordered under Sec. 3(e) of the N. R. A. Act. 
On Dec. 13, 1935, the U. S. Customs Court held that the 
fees on cotton rugs had been unconstitutionally collected. 
(Akawo & Co., Ltd. V..U. S., 77 Fed. (2d) 660.) 

a 

Quicksilver . Investigation begun Jan. 2, 1934. 
Tariff Commission report to the President Mar. 26, 1934, 
approved by the President Apr. 23^ 1934. No restrictive 
action. 

Wool Felt Hat Bodies. Investigation begun Jan. 4, 
1934. Tariff Commission report approved by tbe President 
Apr. 23, 1934. No restrictive action. 

Matches (from Japan.) Investigation begun Jan. 4, 
1934. Tariff Commission report to the President Apr. 5, 
1934, recoDmendlng Imposition of duty. But amendment to 
the Revenue Act (SeCi. 611, Revenue Act of 1934) Increased 
the excise or sales tax on certain natches, viftilch net tbB 
ooHi^laint; so no action was taken by tbe President. 



1. U. 8. Tariff Conmission, Annual Report 1935, s^. 15, 16. 



Mill 



- 19 - 



T\ f.r] n^riar Rhingifts ( f rom Canada.) InvestlgatKa begun 
Mar. 28, 1934. Tariff Conmission report to the President 
May*22,'l934, recommended limitation of imports. Canadian 
exporters agreed to limitation, so no order was Issued. 
(See also Sec. 811 of the Revenue Act of 1936,i/ Public No. 
470, 74th Congress, wtilch provides for a similar limitation.) 

household Table and Kitchen Ut^ risiis of Pottery (froa 
Japsn.) Investigation begun May 16, 1934. Tariff 
Comissicn report to the President Apr. 16, 1935. 

Sun Goggles or Glasses and Frames Therefor . Investiga- 
tion begun June 29, 1934. Tariff Conmission report to the 
President Dec. 14, 1934. 

Braids end Hat Bodies in part of Synthetic Textile (from 
j^anTl Invfistlgation begun Sept. 5, 1934. Tariff 
Comiiiesicm report to the President Nov. 2, 1934, did not 
recooti&nd duties. Report wproved by the President Nov. 28, 
1934. 

Ice. Investigation begun Feb. 3, 1934, - suspended. 

R^^ ^er Erasers . Investigation begun Jan. 14, 1935, - 
suspended after the S<aiechter decision in May 1935. ^..-^ 

Horse and Mule Shoes . Investigation begun Mar. 14, 
1935. - suspoided after the Schechter decision in May 1935. 

Bleached Cotton Cloth. Investigation begun April 19, 
1935, - suspended after the S<tiechter <tecision in May 1935. 

Work uiKier Section 3(e) of the N.R.A. Act was continued until 
the decision of the United States Si«)r«» Court in Schechter 
Poultry Corp. et al vs. U. S., 295 U. S. , 495, on M«r 27, 1935, 
Which held the law Invalid. Iiapoeitiwi of fees on imported rugs, 
the only product upon vAilch duties mre ordered under Section 3(e) 
of tiie N.R.A. Act, was rescinded on June 15, 1935. 



The Agricultural Adjustment Act, as amended. 

The Agricultural Adjustment Act of May 12, 1933,2^ as aamded 
on August 24, 1935,2/ contains a new section similar in .scope and 



1. Text on page 24 of this report. 

2. Public No. 10, 73d Congress. Amended text in Exhibit 4 herewitn, 
including Regulations for carrying out these provisions, isaied 
in Executive Order, November £3, 1935. 

3. Public No. 320, 74th Congress. 



- 20 - 



purpose to the Invalidated Section 3(e) of the National Industrial 
Recovery Act. This was amended by the Soil Conservation and 
Domestic Allotment Act of February 29, 1936;i/ and its provisions 
expressly aff inned in the Agricultural Marketing AgiBesBnt Act of 
June 3, 1937.2/ 

The law provides for investigations by the U. S. Tariff 
Commission, upon request of the President, and arders by the 
President, for llnltatlon of liQK>rtatloii: 

Whenever the President has reason to believe that any 
one or more articles are belx^ l^orted Into the 
United States under such conditions and In sufficient 
quantities as to render Ineffective or naterlally Interfere 
with any progm or operatlcm undertaken, or to reduce sub- 
stantially taie aaount of any product processed m the 
imited states from any coHKKllty siib^ct to and with respect 
to i*ilch any progm Is In cperatlcm, under this title or 
the Boll Conserfatlw and DowstlG AllotBent Act, as amended. 

Uhder an fi»cutlve Order issued by the President on November 23, 
1936, the Secretary of Agriculture may make a preliminary investi- 
gation m such a case. 

No cases have cone before the Tariff Comnlsslon for forml 
action under this law. (See Annual Report of the U. S. Tariff 
CoMlsslon, 1937, p. 43.) 



The Trade Agreements Act, 1934. 

The Trade Agreements Act, 3/ passed as an amendment to the 
Tariff Act of 1930, provided for reciprocal trade agreements to be 
negotiated by the United States with foreign countries, for the 
purpose of expanding foreign markets for the products of the 
United States, v\4ienever the President: 

finds as a fact that any existing duties or other Import 
restrictions of the United States or any foreign country 
are unduly burdening and restricting the foreign trade of 
the United States. 

Proclamations made thereunder, modifying existing duties and other 
Import restrictions, may not Increase or decrease by more than fifty 
percent any existing rate of duty or transfer any article between 
the dutiable and free lists. 

1. Public No. 461, 74th Congress, Section S. 

2. Public No. 137, 76th Congress. 

3. Public No. 316, 73d Congress, June 12, 1934, as extended In 1937: 
tazt m Sxhlblt 6 herewith. 



- 21 - 



The period during which the President is authorized to nego- 
tiate fomiQ timde agreements was extended to June 12, 1940, by a 
Joint RMiMBoci of Congress ^proved March 1, 1937.-'' 

three lH)ortant agencies have been used to administer the t-rade 
agreement prognai: (1) The Executive Committee 
was established by the President on November 11, 1933, (functions 
extended by iSxecutlve Order No. 6656, March 27, 1934) comprising 
representatives of the Pepartaents of State, Treasury, Agriculture 
and Coimerce, the Tariff Coimlsslai, Agricultural Ad;)ustment 
Administration, and for a time the National ^^^^^^y ^^^J^^^^^f 
and the Special Adviser to the Presldoit en Foreign Trade. (2) The 
committee on Trade Agreements, established on June 22, 1934, com- 
prising representatives of tiie same Government offices, has served 
with a number of sub-comalttees dealing with countries, cowdltles 
and special problems involved In negotiation of trade agrewwits. 
(3) The Committee for Reciprocity Information created by Executive 
Order on June 27, 1934, to receive Information and views from 
private persons interested in trade agreement negotiations, as 
required by Sec. 4 of the Act, Is representative of the same 
Government offices listed above, and functions under^ direction off 

the Executive Committee on Commercial Policy. Tiie various^ 

Government departments and agencies interested In fcarelgn trade 
matters cooperate through interdepartmental conmlttees In i»Uig 
special studies of tariff and trade restrictions In this and foreign 
countries, for use in the consideration and negotiation of recipro- 
cal trede agreements. 



Agreements have been entered into under the act with seventeen 
foreign countries, accounting for about forty percent of the total 
foreign trade of the United States, as follows: 



Country 


Date signed 


Date 


effective 




Aug. 


24, 


1934 


Sept. 


3, 


1934 


Belgium 


Feb. 


27, 


1935 


May 


1, 


1935 




Mar. 


28, 


1935 


June 


3, 


1935 


Svveden — 


May 


25, 


1935 


Aug. 


5, 


1935 




Feb. 


2, 


1935 


Jan. 


1, 


1936 




Nov. 


15, 


1935 


Jan. 


1, 


1936 


Netherlands (In E^arope, India, 














Surinam, and Curacao) 


Dec. 


20, 


1935 


Feb. 


1, 


1936 




Jan. 


9, 


1936 


Feb. 


15, 


1936 


Honduras 


Dec. 


18, 


1935 


Mar. 


2, 


1936 


Coloiii)la 


Sept 


.13, 


1935 


May 


20, 


1936 




Apr. 


24, 


1936 


June 


15, 


1936 



1. Public No. 316, 73d Congress, June IE, 1934, as extended in 1937; 
text m EWilblt 5 herewith. 



2Z - 





Date elmed 




France and colonies, depend- 
encies and protectorates, 
other than Morocco ~ — — — 

Nlcaraguci/ ™— — ™- — — - 

El Salvador 

Czechoslovakia — — — 


May 6, 1936 
Mar. 11, 1936 
May 18, 1936 
Feb. 19, 1937 
Nov. 28, 1936 
Mar. 7, 1938 


June 15, 1936 
Oct. 1, 1936 
Nov. 2, 1936 
May 31, 1937 
Aug. 2, 1937 
A^r. 16, 1988 



The general provisions, viUlch wy sowvtiat In the dlffei^nt 
agreenents, are said by the U. 8. 0«partaent of State to: 

reflect the fundaaental principle of equality of treatwat 
vtilch Is ess^tlal to the restoratlai of Intematlcmal 
trade on a sound and ncmHllaoriBinatory basis, and v^ch 
this Goveminent, in cooperatKm with oilier Govemmsnts, is 
seeking to buttress by wans of trade agreements and co»- 
aereial treaties eobodying that principle 

The latest agreesant, that nith Caecho^orakia, vtildi cane into 
effect on April 16, 1938, includes the best features of all the 
other agreeaents, and oay be ccmsidered more or less as the standard. 
This agreement mctends the j)nneiple of non-dlscrimlnatory treat- 
■ant to quotas or other forms of quantitative restriction, as well 
as to foreign purchases by GoTsnunent monopolies. It guarantees 
that there will be no restriction, condition or delay in the trans- 
fer of payment for imports, thus reducing the possibility of 
accumulation of blocked balances v^ilch may lead to discriminatory 
coai>ensatlon and clearing arrangements. It safeguards importers 
against adverse changes in the methods of determining dutiable 
values, azKl of converting currencies in connection with products 
listed in the schedules. It provides fair and equitable treatment 
in regard to any form of exchange control. A standard clause is 
used providing that the agreement may be terminated on thirty days* 
notice if wide exchange fluctuations should seriously impair the 
expected benefits of the agreement. 

It Is also stipulated In the agreement with Czechoslovakia that 
it shall not extend to prohibitions or restrictions (1) relatlnt to 
public security; (2) Imposed on moral or humanitarian grounds; (3) 
designed to protect human, animal or plant life or health; (4) 
relating to prison-made goods; (5) relating to the enforcement of 



1. Reciprocal tariff concessions not effective after Mar. 10, 1938; 
remainder of the agreement continues In force. 

2. U. S. Department of State, press release, March 7, 1938, In re 
trade agreement between the United States and Czechoslovakia. 



- 23 - 

police or revenue laws or regulations; or (6) applied to products 
which, as regards production or trade, are or may in future be sub- 
ject within the country to State control or to monopolies exercised 
under State control. But each Government agrees to give sympathetic 
consideration to any representations v^ch the other GovenuRsnt may 
submit to it in regard to the applicaticn of regulations concerning 
the InportatloQ of goods, including sanitary laws and regulations. 

In some agreements provision is made for a committee of tech- 
nical experts. Including representatives of each of the two 
Governments concerned, for the eMmlnatlon of controversial ques- 
tions regarding the application of any sanitary law or regulation 
for the protection of human, animal or plant llfe.i/ In some cases 
the agreement states that it shall not: 

affect the application of measures directed against mis- 
branding, adulteration and other fraudulent practices, 
such as are provided for in the pure focd and drug laws 
of the United States of America, or the application of 
measures directed against unfair practices In iii5)ort 
trade, such as are provided for in Section 337 of the 
United States Tariff Act of 1930.2/ 

As stated before in this report, an exchange of notes in con- 
nection with the reciprocal trade agreement with the Netherlands, 
effective in 1936, provided for informal notice and opportunity for 
representation to be made to the other Government concerned, before 
any antidumping or countervailing duty Is imposed. 

The trade agreement with Canada, effective in January 1936, 
provided for changes in the Canadian system of valuing commodities 
for duties, including antidumping. Prior to the agreement, the tax- 
paid price was taken as the basis for collecting both regular and 
dumping duty on imports into Canada; and goods subject to U. S. 
Internal taxes were required to include the taxes as part of the 
fair market value on their Canadian invoices, even though they did 
not pay the taxes on goods exported. Under the agreement the U. S. 
Internal taxes not assessable on exports, were excluded from values 
for Canadian duty purposes, from January 1st, 1936. As to this 
agreenont, the U. 8. Department of State has said: 

A broad advantage to many lines of American exports 
will result from changes In Canada's system of valuing ccmh- 
modltles for duties. Ihese changes are assured either by 



1. Agreement between the United States and France, signed May 6, 
1936. 

Agreement between the United States and El Salvador, signed 
Feb. 19, 1937. This clause is used in a nuafeer of agreemants. 



tim trade agrewmt itself, or by a note of the Canadian 
QorenuMnt aceiaiiMnylng It. There baa been gradually grow- 
ing in Canada a systeii, taking several different fons, of 
aipplying arbitrary assessmits exceeding taie inToice values 
<m imported goods* l!he resulting eharges visre aaterially 
Mgber, in som instances several times bi^er» than the 
noainal duty rates. On sone ccamodities the practice aeant 
mt Barely that the ad valorea rates were applied on a 
hiilier sum, but that the difference between the arbitrary 
value aiKl the invoice value had to be paid as a so-called 
duq)ing duty.V 

under Schedule II of the Canadian agreenent, the importation of 
red cedar shingles into the United States, from Canada, may be 
limited. This was made effective by Section 811 of the Revenue Act 
of 1936 (49 Stat. 1746)§/ v\iilch provides that: 

■ • 

Whenever any organization or association representing 
the producers of more than 75 per centum of the red cedar 
shingles produced In the United States during the previous 
half-year period shall request the President to limit the 
Importation of red cedar shingles from Canada under 
paragraph 1760 of the reciprocal trade agreement entered 
Into with the Dominion of Canada under date of November 15, 
1935, and the President finds from available statistics 
that the total quantity of red cedar shingles produced In 
the Dominion of Canada v^lch Is entered, or withdrawn from 
warehouse, for consumption In the United States during any 
given half of any calendar year exceeds or will exceed 25 
per centum of the combined total of the shipments of red 
cedar shingles by producers In the United States eind the 
Imports during the preceding half year, the President shall 
issue an order limiting for the six months Immediately fol- 
lowing the half of the calendar year In which said excess 
occurred, the quantity of red cedar shingles to be Imported 
from Canada to 25 per centum of the combined total of the 
shipments and Imports of red cedar shingles for such pre- 
ceding half calendar year. 

Analysis of the Canadian-American agreement, issued by the" 

U. S. Department of State, November 17, 1935. 
g. We may note In passing, other U. S. laws which have provided for 
limitation of Imports on a quota basis, Including the Philippine 
Independence Act of March 24, 1934 (U.S.C. title 48, sec. 1236; > 
the Philippine Cordage Act of June 14, 1935 (U.S.C. title 48, 
sec. 1236a;) and the Sugar Acts Including the act of September 1, 
1937 (Public No. 414, 75th Cong.) which provides for quotas 
governing the quantities of sugar imported from foreign countries 
and certain insular possessions, vihich may be entered or with- 
drawn from war^cuse for consimptiOQ during each sugar qjaota 
year. 



- 25 - ' 

Under this act, the President Issued orders on March 13, 1937, 
September 3, 1937, and February 25, 1938, fixing the quantities to 
be Imported In the six months' periods: 

January to June 1937, 1,048,262 squares, T.D. 48892 
July to December 1937, 892,373 squares, T.D. 49184 
January to June 1938, 916,246 squares, T.D. 49949 



AUSTRALIA 

Exchange dumping provisions of the, Customs Tariff (Industries 
Preservation) Act of 1921-1922, were amended In December 1933.1/ 

The law was further amended on December 7, 1936.1/ Section 7 
was changed to provide that where no freight Is payable on goods 
dipped to Australia, or the frel^t payable is lower than the 
normal frei^t rate, as determined by the Minister, and detriment 
my therefore result to an Australian industry, the Minister may 
publish a notice in the Gazette specifying the goods concerned, and 
upon the publication of such notice a "dumping freight duty may be 
charged on the goods amounting to the difference between the freight 
payable and thB normal freight rate. Under a new Section 12A, 
added in 1936, the duiaping duty under Sections 4, 5, and 7 of the 
act, ^all be calculated in Australian currency. Sections 4 and 5 
had provided for dumping duties if goods were sold to an Australian 
Importer at an export price vtilch is less taian the "fair maiicet 
value" of the goods for Yicm consuiaptiaa In the country of export, 
or less than a "reasonable selling price," to the detriaent of an 
Australian industry. 

under the Australian-Canadian agreement negotiated in 1931, 
Canadian products are not subject to dumping duty in Australia, and 
the same exemption is granted to Australian products in Canada. 

A notice issued In 1934, and retroactive to October 27, 1933, 
Imposed dumping duty on acetyl-salicylic acid originated in or 
exported from the United Kingdom, under Section 4 of the Industries 

Preservation Act. 

Dumping duty Imposed on kraf t paper imported from any country 
except the United Kingdom, "the landed duty-paid cost of whic^i is 
less than the manufacturers' selling price of Australian-made kraft 
paper" (Notice No. 261, Issued under Section 5 of the Industries 
Preservation Act) was revoked on June 8, 1934. 

Notice No. 303, dated June 11, 1935 (Conmioniwealth Gazette, 
June 14, 1935) revoked a dumping duty Which had been imposed (under 



1. Full text of the law as amended In 1933 and 1936, Is presented 
" herewith as Exhibit 6. 



- 26 - 



Notice No. 284) on "screiw for wood of brass or Iron, originated In 
or exported tnm SNeden, t2ie landed duty-paid cost of idilch Is less 
tlian the manufaetiirers* selling price of the conparable Australian 
Mde article." 

Dumping duties liiQX)sed on certain goods Imported into Australia 
iwre reiroked <mi August 16, 1935: steel (Imposed on December 29, 
1923, under Section 4 of the Industries Preservation Act;) electric 
fuse boxes (Imposed on July 23, 1923, under Section 4;) v«iiite lead 
(lapoeed on August 19, 1924, under Section 5;) bread and bacon 
sllcli^ KChlnes (Imposed on September 24, 1924, under Section 4;) 
static transforwrs (Imposed on September 24, 1924, and March 18, 
1925, under 8ectlczi4;) silicate of soda (Imposed on March 6, 1925, 
under Section 4;) and cast iron pipes (Imposed on March 19. 1925. 
under Sectlcm 4) . 

Duties Imposed under Section 4 on strawboard originating In or 
eiported from Holland, applied in August 1924 (Notice No. 219, 
COMaonwealth Gazette No. 61, August 28, 1924) were revoKed on 
November 21, 1935. 

Notices effective on December 8, 1936, under Sections 4 and 7 
of the act, applied dumping duty to Portland cement imported from the 
United Kingdom when sold at less than fc2 lis. 6d. sterling per ton, 
c.l.f. main Australian ports. For the purposes of Section 7, the 
Normal freight rate for cement from the United Kingdom was fixed at 
tl 3s. 6d. sterling per ton. 

Duties lii5)osed on Iron and steel hoop scheduled to beco» 
effective on January 1, 1937, were postponed to April 1st, and 
deferred duties on plain tinned Iron and steel plates and flheets, 
and on screw hooks, eyes and rings, scheduled to come Into opera- 
tion on January 1, 1937, were postponed to January 1, 1938, andl 
July 1, 1937 (Government Qaaette, December 7, 1936). 



BSLGIUN 

A law passed on June 30, 19^1, as amended on July 30, 1934 
(Ifonlteur Beige, No. 243, August 31, 1934) provided that the 
Qovemment may regulate the Importation, exportation and transit of 
goods, and (under Article 2) may establish special fees to be levied 
liien, owing to extraordinary and abnormal clrcuMBtances, the vital 
Interests of the country are iBDerlled. A epeclal conmlsslon was 
created by mnlsterlal Decree on Jfcrch 28, 1934, to advise the 
Govenumtt on tariff matters and to Inaare cooperation of the 
various ministries In regulating foreign trade. 

Article 2 of Law No. 2218, January 30, 1932, continued the 
Qofremmental authority to liqpose a countervailing duty on imported 
goods that en)oy a dlrebt or Indirect bounty on export from the 



country of origin (theretofore covered by a law dated October 10, . 
1900, Article 8; and the law of May 8, 1924, Article 5) . 

Under a law of July 26, 1935 (Monlteur Beige Nos. 228-229, 
August 16, "17, 1935) provision was made for regulation of the \Miole 
of the Belgian-Luxemburg Economic Union, In the matter of licenses 
and quotas, through a Belgian-Luxemburg Mixed Commission set up at 
Brussels. The commission, v^lch began operation In March 1936, Is 
vested with power to Issue licenses for the Importation, exporta- 
tion and transit of goods in b^lf of the Economic Union. 



BOLIVU 

Article 14 of the Tariff Law of October 1, 1927 (not covered 
In our report In 1934) empowered the Executive to prohibit and to 
limit under penality of seizure, or to regulate, the Importation of 
any article, animal, object, material, product, or manufacture, 
reporting such action proiptly to the National Ck)ngres8, in the fol- 
lowing eases: 

(1) To meet a national emergency. 

(2) 9o maintain public security and order. 

(3) To. maintain public health, animal sanltatlcm, and 
agricultural defense. 

(4) To protect the State against the adoption In foreign 
countries of legal or regulatory measures vMch 
prejudice national ccBBBroe. 

(5) To defend the State against excessive speculative 

activities abroad or within the R^bllc,. for the 
purpose of changing prices to the prejudice of 
(Bolivian) national economy. 

(6) To defend the State against freight rates which are 
prejudicial to national commerce and economy, if 
such freight rates are shown to be established by 
means of arbitrary combinations. 

This act is similar to the Paraguayan Tariff Act of 1925, and the 
Ecuadoran Tariff Law of June 10, 1927, as amended in 1931 and 1937. 



BRAZIL 

The Customs Tariff Law, No. 24,343 of June 5, 1934, published 
on June 11, 1934 (eXfectlve on Septeniber Ist,) together with 



. 28 - 

■preliminary Dispositions of the Tariff" published at the same time 
Includeci certain provisions In prevention of dumping: 

Article 3. The Government has discretionary powers 
to increase the duties of the tariff by decree up to 
double tbe amount on: 

(1) products of countries that deliberately attempt 
to embarass the entry of Brazilian products into 
their markets by increasing differential duties or 
by any ottier measures; 

specified products marketed by means of dump- 
ing, in cases v^en this nay prejudice the doniestle 
econcmor of the country. 

Article 4, The Govemmwit has power to reduce Inport 
duties, and even to allow «atry free of duties, for a certain 
length of tim. In case of: 

(1) articles of foreign origin that may conpete with 
similar national goods^ when the latter are produced 
or mirketed by trusts or cartels, or vtien they are 
BoU at prices equal to or higher than similar 
foreign goods after conputatlon of the duties on them; 

(2) certain goods with no similar national prodicts, 
which shall have special characteristics Imposed on 
them, and are Intended for consuiptloa In a specified 
region of the country, when such reductlcm may be 
judged necessary to the development of said region. 



KJLGABU 

A revised Tariff Law effective on August 31, 1936 (Official 
Gazette No. 195, August 31, 1936) included authority to assess antl 
dumping and bounty countervailing duties: 

Article 1 . Imported commodities are dutfable as 
provided in the tariff annexed to unls law. 

The Council of Ministers is empowered, however, with 
the advice of the Minister of Finance, the Minister of 
Commerce, Industry and Labor, and the Minister of 
Agriculture and State Domains: 

(1) To increase or decrease the duties fixed in this 
. tariff, for the purpose of maintaining the relation 
between the value of the goods and the fixed specific 
rates existing when these duties were established. 



- 29 - 

It) To Increase the duties <m bu&i goods as are offered 
to Bulgaria at prlces^ cotislderably lower than those 
existing In the producing country (dumping) or for the 
e^;>ort of which to Bulgaria open or secret export 
bounties are given, the respective Increases In such 
cases to be equivalent to the price difference or l^e 
export bounty. 

(3) At the request of the mnlsters of Commrce, 
Industry and Labor, to reduce the duties to as low as 
20 per cent ad valorem for such products as are sold 
at unduly hi^ prices 9n the local market, when this 
is established by a price control agency. 



CANADA 

Antidumping provisions of the Canadian Customs Tariff Act, 
including amendments in 1934, i/ 1936 ,§/ and 1937,3/ are givai In 
full in Appendix 7 hereto. There are also given General Regulations 
effective in August 1937i/. 

In November 1933 dumping duties were imposed on American goods 
imported into Canada, to offset depreciation of the American dollar. 
This was modified to apply only in case depreciation exceeds 5% in 
terms of Canadian money; and shipments into Canada by mail or 
express valued at less than $10 at the par rate of Canadian exchange 
were exempt from such duty (Order in Council November 28, 1933, 
published in Memorandum No. 461, Supplement Nos. 1 and 3, Issued 
November 29 and December 2, 1933, by the Department of National 
Revenue.) This provision was retroactive to November 23, 1933, the 
date on which the value of the American dollar, for duty purposes, 
was proclaimed at 100 cents, Canadian. 

Memorandum No. 673, Supplement 1, Issued on February 10, 1934, 
by the Dominion Department of National Revenue, provided that 
special or dumping duty should not be levied on goods imported into 
Canada from Great Britain, Northern Ireland and the Irish Free State 
unless a sum less than $4.86 2/3 in Canadian currency for each 
poimd sterling of the fair market value be paid for the said goods. 

under a ruling by the Canadian D^artment of National Revenue, 
dated llur<*L 23, 1934, cash discounts extended to customers generally 
In the home maztet, were exevted from special or during duty when 



1. Act of July 3, 1934, Geo. V, Chapt. 48. 

2. Act of June 23, 1986, 1 Bdw. VIII, Chapt. 31. 

3. Act of April 10, 1937, 1 Geo. VI, Chapt. S4. 

4. Hemorandum, Department of Iteitlonal Revenue, Canada (Customs 
Division), Ottawa, August 18, 1937, Series D, No. 87. 



- 30 - 

WLrned and taken In settlement by Canadian Importers (prior to this, 
If such cash discounts were shown to have been deducted on Canadian 
Invoices, dunging duty was assessed equal to the amount of the cash 
dlscoimt • ) 

An Order In Council dated March 26, 1934, provided for exchange 
dumping duty on butter Imported from New Zealand on or after 
January 26, 1934. (Memorandum No. 746, Issued March 28, 1934, by 
the Dominion D^artment of National Revenue.) 

Under an order effective on April 30, 1934, a dumping duty 
would have been levied on corn from the Union of South Africa, to 
offset payment of an export subsidy 'granted by the Union. But the 
South African subsidy was discontinued on April 30, 1934, and the 
Canaidiaii countervailing duty vvas therefore withdrawn • 

The repeal of Section 36(1) In 1934, eliminated a provision 
under v^lch dumping duties had been Imposed. This section had pro- 
vided that the fair market value of Imported goods for duty purposes 
^ould in no case be lower than "the selling price thereof to Job- 
bers or wholesalers generally at the time and place of shipment 
direct to Canada," After passage of the act in July 1934, the 
BlninuB values for duty in respect of Jute twines, nursery stock, 
aiKl ferroHnngEanese mre canceled, and those In respect of hats, 
lioods, and alm^s mn repealed as to laportation from the United 
Kingdoa* 

A ruling by the Department of National Revenue that anthracite 
is not of a class or kind produced in Canada and is therefore 
ezea(pt from application of special or diaping duties, was iqAiald by 
tiis C^mdlen Twtitt Board in 190i. 

imder a rulii^ by the Comissica of Customs in Hay 1935, soya 
bean oil was exavt from special or dumping duties, until October 1 
1985. This action was taken because Canadian producers had dis- 
posed of their stocks and would hare no more to offer until the next 
harvest* 

An order in Council dated July 20, 1936 (P.C. a083) provided 

Vlhereas under authority of Section 6, subsection 9, of 
the CustoBB Tariff, the Gk>iromor in Oounoil may, from time 
to time and as occasion requires, crder and dizeet itiat 
shall be the rate of exchange fixed for any currency in com- 
puting the Talue for duty of goods iq)orted into Canada from 
any place or country the currency of vtii6h is depreciated; 

And Vftiereas it is represented that in declaring viftiat 
shall be the rate of exchange fixed for purposes of ordinary 
and special duty for the currency of such countries, it 



- 31 - 



appears expedient that the Governor In Council should take 
into consideration the extent to which a rise in the general 
level of prices in the country whose currency is depreciated 
my have tended to offset the export advantage resulting 
from exchange depreciation, as well as the desirability of 
maintaining the normal relationship vftilch has existed 
between the currencies of such countries and the currency 
of Canada; and 

That, in wlying rates of ^c^ange for purposes 
of ordinary and special duty fixed in accordance with the 
considerations aforesaid, countries vftiose currencies at 
prevailing coomiercial rates of exchange are not depreciated 
in terms of the Canadian dollar by more than five per centum 
^ould not be included within the scope of any Order in 
Council issued ualer authority of Section 6, aibsection 9, of 
the Customs Tariff. 



Now Therefore, The Deputy of His fixcellency the 
Ck>vemor Oeneral in Council, on the recbnniBndation of the 
Ri^t Honourable the Prime Minister for the Minister of 
National Revenue, Is pleased to order and it is hereby 
ordered that the rate of exchange for computing the value 
for ordinary and special duty of goods imported into Canada 
from the undermentioned countries during the period of six 
months from the date of publication of this Order in Council, 
shall be fixed, under authority of the provisions of Section 
6, subsection 9 of the Customs Tariff, as hereunder indicated 



Denmaric - Krone $0.2312 

Finland - Mark 0.0234 

Japan - Yen 0.4151 

Norway - Krone ••• 0.2592 

Sweden - Krone 0.2584 



An Order in Council dated December 28, 1935 (P.C. 3974) can 
celed the order of July 20, 1935 (P.C. 2083) and substituted the 
following: 

The rate of exchange forr computing the value for 
ordinary and special duty of goods of a class or kind made 
or produced in Canada imported from the under-mentioned 
countries, shall be and is hereby fixed as hereunder 
Indicated, effective from 1st January 1936, for a period 
of one year from that date: 

Denmark - Krone $0.2371 

Finland - Mark 0.02215 

Japan -Yen • 0.395 

LL-tMS 



- 3S - 

An Order in Council dated December 28, 1935 (P.C. 3975) effec- 
tive on January 1, 1936, suspended the surtax of 33-1/3% Imposed 
under regulations In Order In Council of July 22, 1935 (P.C. 2108) 
as amended by Order In Council of August 3, 1935 (P.C. 2317) upon 
articles the growth, produce or manufacture of Japan, v^en Imported 
Into Canada. This action was taken In recognition of cancellation 
by Japan, effective January 1, 1936, of the surtax of 50% ad valorem 
i*ilch had been levied since July 20, 1935, on certain commodities 
constituting the principal exports of Canada to Japan (Statutes of 
Caoada, 1936, 1 £dw. VIII » p. XVI.} 

Under the terms of the trade agreement between the 
United States and Canada ^ changes were made In the Canadian system 
of valuing commodities for duties. Including dunqplng duties. Prior 
to January 1, the tax-paid price was taken as the basis tor 

collecting both regular and dumping duty on liiqp<»rts Into Canada; 
and goods subject to united States internal taxes were required to 
Include the taxes as part of the fair market value on their Canadian 
InTolces, eren though they did not pay the taxes on goods exported. 
Some exceptions had been made to this rule. Including exemptions 
granted to hog products, cotton products, gasoline and liibrlcatlng 
oils, nAieat products, com products, vegetable oils and rice. 

In i^>m ld37, subsection (11)^ was added to Section 6 of the 
law. In order to Implement the undertaking of the Canadian Qovenunant 
with respect to the German Payments Agreement effective on 
N6veflt>er 15, 1936. An Order In Council effective <m April 23, 1937, 
fixed title value of the German relchsmark at 32 cents In Canadian 
currency for coimnitlng the value for regular and dumping duty pur- 
poses, on goods Imported from Germany. 

An Order In Council dated September 8, 1937 (P.C. 2196) 
authorized exemption from special or dumping duty on tlnplate of a 
class or kind made In Canada, as provided for In Tariff Item No. 
383 (b) lii5)orted Into Canada between September 1st and December 31, 
1937. 

CHINA 

Under the Chinese Constitution published on May 5, 1936 (Ch. 
IV, Sec. 1., par. 44) the Finance Minister Is given wide powers over 
tariff matters "in the event of national emergency or great economic 
crisis which calls for urgent measures." The President may Issue 
emergency mandates, but these must be submitted to the Legislative 
Yuan for conflnnation. 



> 




- 33 - 



C0LC»1BIA 

Executive Decree No. 1588 dated July 6, 1936, and effective on 
August 1st, placed all Imports under license control of the Exchange 
and Export Control Office. Broad authority of this sort may well be 
used m prevention of dumping or In retaliation of restrictions 
abroad, without specific dumping provisions. 



CUBA 

A law on February 9, 1926 (not covered In our r^ort In 193^) 
included provisions against dumping: 

Ihe Executive Is furtiser authorlssed, by and with the 
advice of the te<^lcal tariff conmlsslon, to establish 
countervailing duties to offset foreign bounties, direct or 
Indirect, and to aAGpt any measure of protection for the 
national Industry or coDmeroe against the various forns of . 
foreign dumping. (Article IV) 

A similar provision Is foimd In Article IV of the Tariff Act of 
October 25, 1927, under v*ilch the compensatory duty shall be equal 
to said subsidy, taking into conslderatlCMi any depreciation In the 
money of the country of origin or shipment. 

Under Law No. 14 dated March 15, 1935, control of lioports was 
established, and a National Tariff Commission authorized to advise 
the President as to measures which are necessary for the protection 
of national industries and the 'prevention of foreign dumping. Upon 
recommendation of a Committee including the Secretaries of Commerce, 
Agriculture and Finance, the President was authorized to Increase 
the duties of the maximum general tariff: 

Article IV . The President of the Republic is authorized 
to increase the duties of the maximum general Tariff, on 
previous information from the Special Coumittee against Dump- 
ing, In the following cases: 

(1) on those articles grown, produced or manufactured 
which enjoy In the country of origin or from which they 
cone, a direct or Indirect bounty on being e3a)orted; 

(2) on those articles grown, produced or manufactured 
i*ilch, as a result of profound economic reactions. 
Indicated In the countries of their origin by the con- 
siderable decline in currency exchange, or by the lower 
level of wages, would be able to enter Cuba with such 
advantages that nonoal conditions would be vitiated to 

^ the extent that the national Industry, agriculture, or 
conmerce would be placed In great dangsr . 

LL-SM 



- 34 - 

Article V. The President of the Republic Is authorized 
to adopt any measure of protection for the national Industry 
OQd coinnerce against various forms of foreign dunqjlng, on 
the previous report of the National Tariff Commission. Also 
the President Is authorized, on the proposal of the Secretary 
of the Treasury, to order the application of the Maximum 
Qeneral Tariff, and Increases therein. In those cases In 
uhlch In his Judgment It may be urgent and necessary, and 
until the National Tariff C(anl88loii subnitB its rei>ort in 
aecordaiice with this law. 

Under a decree. No. 1096, April 26, 1935 (Oaceta Oflclal, Hay 4, 
1935) duties were placed on textiles mnuf actured in Japan. 

Decree Law No. 296, effectiTe on October 5, 1935, continued tHe 
operation of the Du^;>ing CoBBittee and provided further for the 
creation of a Technical Tariff Connission in the Dei>artiMnt of 
Treasury, which shall consist of the Director General of Custoas, as 
president, and (me delegate each trm the Departoeats of State, 
Treasury, Agriculture and Connerce. 

Law 14 of mr&i 15, 1935, was acKlified by Decree Law No. 
611, February 21, 1936, effective on publication in the Oaceta 
Qficial of February 22, 1936; and again nodified Xi^ Decree Law NO. 
806, April 4, 1936, effective <m publication in the Oaceta Of icial 
on M>ril 13, 1936. 



CZBCHOSLOVAKIA 

A law dated June 22, 1926 (not covered In our report In 1934) 
provided that If Imported goods menace the national production 
througji unfair competition, resulting from special Governmental 
dispositions of any kind, such as the granting of favors upon 
exportation, or otherwise, with the Introduction of longer working 
hours or other unfavorable social conditions of labor, and the like, 
or resulting from depreciated currency; adequate measures shall be 
taken for the Indispensable protection of dcxnestlc production, and 
In particular by fixing a special duty or a surtax, or by limiting 
Importation. The Government shall appoint a Board (Consul ta) for 
which there sheill be proposed two members by the Minister of 
Finance, two by the minister of Conimerce, and two by the Minister of 
Agriculture • 

The National Defense Law, No. 131 of May 13, 1936, as supple- 
mented by Decree No. 197, July 8, 1936 (published and effective on 
July 10, 1936) provided for a strict control of all products of 
*war industries" including food, clothing, and practically all 
Industrial goods. 

LL-«M 



mmRK 



The law of December 21, 1934, authorizing control of exchange 
in Dennark, Included a provision whereby In applying exchange 
regulations, due consideration must be gl^n to prevent manifest 
du]9)ing; but the regulation of imports must not serve as a basis of 
an unjustifiable increase in the price of domestic products. 

The Exchange Law of December 17, 1935, Section 3, provided 
that: "in carrying out the measures in question, due regard will be 
paid to the preventlaa of ostensible dumping and unreasonable price 
increases." A similar provision is found in the Foreign Exchange 
Control Law of !fcrch 31, 1937, effective to March 31, 1938, and In 
l^e Law for the Defense of Danish Currency approved by the 
PWliawnt on Decoiher 16, 1937, to become effective lamediately and 
to rwin in force until taie end of Deceitor 1939. 



iCUAffm 

The Itoiff Act of JUly 1, 1927, as aaended by Legislative 
Decree on October 27, 1931, and by Decree No. 803 of October 31, 
1936 (ReglstK) Oficial No. 335, NoveiOer 10, 1936) auttioriBod the 
President to prohibit and regulate importation under certain cm- 
dltlons, giving Immediate account th^recm to the Mtional Congress: 

Article 4 . The Executive Power is authorized to decree 
the Inclusion of articles not specified in the itens free of 
duty, among those of the specified Items, intoerever such 
Inclusion Is necessary because of essential similarity, for 
the purpose of applying Rule XIY, Article 6. 

The Executive Power may prohibit under penalty of 
confiscation the Importation of any article, animal, 
object, material, product or manufacture in the following 
cases of public necessity; and he shall give an exact 
account thereof to Congress: 

(1) for the purpose of meeting a national emergency; 

(2) to mintain public safety and order; 

(3) to maintain public health and the protecUon of 
agriculture and cattle raising; 

(4) to protect the national interests against adoption 
in foreign countries of legal measures or regulations 
v«iich Jeopardize the coonarce of the Republic; 



36 



(5) to protect the national Interests against maneuver- 
ing or exaK^z^ted ^eeulaticm, caused W trusts or 
otlier financial groups aibroad or in the R^bllc, to 
alter prices In jecpardy of the country's economy; 

(6) to protect the national Interests against freight 
rates prejudicial to the coHwrce and economy of the 
country^ If It is proved that su^ freight rates Yvere 
MtahllGHed by Mans of arbitrary coitt>lnes M 

The Executive Poviar my also Increasa to the extent of 
50 per cent or decrease to the extent of 30 per coat the 
duties establl^ed in this tariff, after consultation with 
the Couneii of State, and he oust give account thereof to 
the National Congress. The increase or decrease shall be 
made only for these purposes: 

(1) to meet an emergency of general Interest; 

(2) to protect Ecuadoran production; and 

(3) to protect national interests against every kind of 
speculation ln;)uriou8 to the national economy. 

Supreme Decree No. 83, February 13, 1936 (Reglstro Oficial 
No. 120, February 20, 1936) provided that: 

Article 8 . When the Importations from a country 
exceed by more than 30 per cent the exports made to the same 
country, the Minister of Hacienda, In agreement with the 
Minister of Commerce, may order the establishment of a com- 
pensation system or the Imposition of a surcharge on the 
merchandise comprising such Importations, which surcharge may 
amount to as much as 50 per cent of the respective Import 
duties. 

To this end, during the month of January In each year, 
the Director of the Technical Department will report to the 
Ministers of Hacienda and Coninerce upon the commercial 
balance existing during the previous year with the countries 
falling within the provisions of the first paragraph of this 
article, and the Minister of Hacienda will make the disposi- 
tion he deems more convenient. 

Decree No. 68 Issued on July 3, 1936, established a surcharge of 50 
per cent of the basic oust cans duties on InpDrts from Japan, Canada, 
Trinidad, Sweden, Russia, Finland, British India, and Norway, with 
some exceptions (did not apply to newsprint and other paper products. 



1. Sections 1 to 6 quoted above are similar to provisions In laws 
^ passed in Paraguay in 1925 and in Bolivia in 1927. Ihe Ecuadoran 
clauses viere passed in 1927. 



- 37 - 



porcelain and earthenware, raw and semi-manufactured materials In 
general, a«I duty free merchandise) . The surcharge on Swedish goods 
was suspended on October 1, 1936. A decree dated March 2, 1938, 
applied the 50 per cent surcharge to imports from the United 
KlI»doa, Arabia, Austria, Bulgaria, Canada, China, Salvador, Spain, 
Stiults Settlemaits, Estonia, Finland, Greece, Hungary, French East 
imies, British India, Indo-China, Iraq, Jamaica, Kordofan, 
Lithuania, Nigeria, Itorway, Palestine, Persia, Portugal, Runania, 
Syria, Sudan, Swed^ and Z«i£lbar. 



BOYPT 

Law No. 2, February 14, 1930 (pia>lished in Journal Official 
No. 16-Extia, February 16, 1930) authorized the OovemiiBnt to issue 
decrees, having the force of law, in crdw to: 

(1) Inpose a countervailing duty upon bounty-fed goods 
equal to t^e amount of such bounty. 

(2) Protect Egyptian trade against foreign obstructlcn by 
appropriate provisions . 

(3) Apply surtaxes equal to the amount of duty to Imports 
from countries applying especially higji duties, surtaxes, or 
discriminating systems prejudicial to Egyptian goods. 

(4) Subject, on terns of reciprocity, specified foreign 
goods to additional duties or taxes similar to those applied 
in the country of origin to specified Egyptian goods. 

This act was amended by Decree Law No. 108 of September 19, 1955, 
authorizing imposition of a surtax on goods imported from countries 
whose currencies are depreciated: 

Article 1 . There is added to Law No. 2 of 1930 an 
article 3a as follows: 

There may also be established, by decree having ttie 
force of law, on all merchandise v\hich is tJie product of or 
v\*ilch may be exported from countries whose money has dif- 
fered a depreciation in relation to the money of Egypt, a 
duty in the nature of a condensation for the advantages 
resulting from the depreciation aforesaid. 

Also, on September 19, 1935, a duty of 40% ad valorem was levied on 
certain goods imported from or originating in Japan, including: 
fabrics and hosiery of pure cotton or containing 50 per cent or more 
of cotton; cotton thread; fabrics and hosiery of pure artificial silk 
or containing 50 per cent or more of artificial silk; velvets and 
plushes of pure cotton or of cotton mixed with other textile 



materials or of pure artificial silk or artificial silk aixed fdth 

other textile materials; garments, lingerie and other semi articles 
of cotton or containing 50 per cent or more of cotton; garments, 
lingerie and other sewn articles of artificial silk or containing 50 
per cent or more of artificial silk. 

A decree effective on December 19, 1935 (Journal Officiel, 
December 19, 1935) imposed a depreciated currency surtax of 40 per 
cent ad valorem on certain goods manufactured in China or shipped 
from China, and imported into Egypt, unless it were proven that they 
originated in some other country, including: fabrics and hosiery of 
pure cotton or containing 50% or more of cotton; cotton thread; 
fabrics and hosiery of pure artificial silk or containing 50% or 
mre of artificial silk; velvets and plushes of pure cotton or of 
eotton mixed with other textile materials or of pure artificial silk 
or artificial silk mixed with other textile materials; garments, 
lix^rie and other eem articles of cotton, or containing 50% or 
more of colrtcm; garments, lingerie and other sewn articles of 
•rtifieiil silk, or containing 50% or more of arUf icial silk. 



ESTONIA 

An £xecutiTe Decree on Septoaber 2, 1936 (Official Qaeette No. 
74, SepteiA)er 15, 1936) provided tliat: 

(3) The Acting President has the authority to Impose any 
special charges such as anti-dumping duty, surtaxes. Import 
license fees, etc., aiKi there is no limitation on this 
authority. 

In an agreement dated July 27, 1933, supplemental to the ccm- 
mercial treaty of March 15, 1929, Estonia and France agreed not to 
Impose a depreciated currency surtax on their respective imports 
unless the ratio between the Estonian and French currencies existing 
at the time of conclusion of the agreement should change by more 
than 20 per cent as the result of the depreciation of the Estonian 
or the French currency, as the case may be, and further agreed that 
if that proportionate change should be exceeded and the products of 
one of the two countries should be subjected to a depreciated cur- 
rency surtax on importation into the other, this measure shall be 
extended, in the same conditions, to the products of all countries 
plaeed in the mm mmietary situation. 



FINLAND 

A law of January X3, 1933, effective until Decotfber 31, 1933, 
audi extenfted on DeeeitMr 30, 1933, provided that if , hy reason of 
increase in duties, introduction of special imposts, restricticn of 
iiiKirts or the right to dhtaln exchange, or other c<m|)ttra]>le 



taken by another country, the exportation of Finnish goods 

to that country be hampered, measures of like kind and extent may 
be applied to imports from the country Into Finland, through decrees 
iiii(^ may he issued without Parliamentary action if Parliament is not 
in mmim, but must be sitomitted to Parliament for action as soon 
as it asseitf>les (Deutsc^es Handels-Archiv, 1933, p. 1178). Sub> 
sequent laws continued this authority evoi thougji Parliament were in 
sessKm, but IteliaaBntary right to cancel the action retained. 
A similar provisKm is found in the Law regarding the Government's 
Authority to Issue Necessary Decrees to Safeguard Finland's Siport 
Trade, No. 436, 0ece]d>er 31, 1935, which stated t2iat: 

Article 1 . If in any country the e3q[>ortatiQn of 
Finnish products to the said country is rendered difficult 
by raising customs tariffs or imposing extra charges or 
restricting imports or the right of obtaining foreign 
exchange, or by other canparable measure, decrees providing 
for, in their character and bearing, ccrreeponding regula- 
tions concerning the lir5)orts from Finland from the country 
in question may be Issued to safeguard Finland's expcHrt 
trade. 

Customs Law No. 427, December 23, 1936, authorized in Article 3, 

punitive rates up to tiiree times the regular duties or up to 100% ad 
valorem on duty free goods, or on those already subject to ad 
valorem duties, upon imports from countries that discriminate against 
Finnish vessels or goods. 

The Law Pvegardlng the Regulation of Exports in Certain Cases, 
No. 433 of December 30, 1936, provided that: 

Article 1 . Whenever the importation of Finnish export 
articles Into any country is restricted by quotas or other . 
restrictions, the exports of the country in question may be 
regulated by administrative decrees If .so required by the 
country's export interests. 



FRANCE 

The 1931 decree providing for exchange compensation surtax, has 
continued in effect with sooib modifications. 

As to goods in^wrted from Portugal, duty Imposed on June 17, 

1932, y«as revoked on October 8, 1932, in accordance with a Franco-- 
Portuguese agreement of July 12, 1932 (this agreement expired on 
June 2, 1933) but ms reimposed at the rate of 20 per cent ad valorem 
under a decree published In the French Journal Officiel on July 6, 

1933. A decree dated March 17, 1934, effective on March 31st, with- 
drew exchange compensation surtax on Portuguase goods, in 



40 



accordance with a commercial agreement tetween the tmo countrlee, 
signed on March 13, 1934. 

An order dated December 11, 1933 (Journal Offlclel, Deceiit>er 12, 

1933) granted exenptlon from exchange compensation surtax to goods 
from the United Kingdom and certain other countries, Including: 
tallow (not hydrogenated, other than "pressed" tallow for the manu- 
facture of edible fats,) cassia llgnea, bran, and machines for the 
nanufacture of paper, pulp, etc., vAilch permit a working width of 
tour metres or over. 

A French decree dated December 27, 1933 (Journal Offlclel, 
December 30, 1933) provided that exchange compensation surtaxes may 
be withdrawn on goods from any country the currency of which has 
remained stable for a period of at least a year. In furtherance 
thereof, a decree dated December 28, 1933, (Journal Offlclel, 
December 31, 1933) effective on January 1, 1934, withdrew the 
exchange compensation surtax on goods from the United Kingdom, 
Ceylon, Straits Settlements, the Federated and Non-Federated Malay 
• states. Hong Kong, and the Irish Free State. These surtaxes were 
25% ad valorem on goods from Hong Kong, and 15% on Imports from the 
other countries listed. A similar decree was promulgated In 
nadagascar by local order published February 3, ld34. 

A decree <kited January 23, 1934, (journal Offlclel, January 24, 

1934) effective on January llth, withdrew the exchange compensation 
' surtax on goods li^orted Into France from the Soviet Union (in 

accordance with a connerclal agreement between France and the Soviet, 
algned (m January 11, 1934.) Prior to this, Soviet goods had been 
subject to a levy of 1^ ad valoreB effective from nanai 1933. 

Depreciated currency surtax on Estonian goods. Imposed by decree 
of August 3, 1933, was canceled by decree of August 5, 1933, In view 
of a supplementary agreemsnt dated July 27, 1933, to the oomwrclal 
treaty of Hardi 15, 1929, whereby both countries agreed not to lq)Ose 
a depreciated currency surtax on their respective Imports unless the 
ratio between the Estonian and French currencies existing at the 
time of conclusion of the agreement should diange by more than 20 per 
cent as t2ie result of the depreciation of the Estonian or the Frmth 
currency, as the case may be, and further agreed that If that 
proportionate change should be exceeded and the products of one of 
the two countries should be subjected to a depreciated currency sur- 
tax on inportation into the other, this measure shall be extended. In 
the same conditions, to the products of all countries placed in the 
same monetary situation. 

A decree dated August 7, 1934 (Journal Offlclel, August 8, 1934) 
Mthdrew the exchange condensation surtax on Danish goods Imported 
into France, in accordance with an exchange of notes between the two 
countries on July 31, 1934. France reserved the right to reinstate 



- 41 - 



the tax if the Danish crov«x should depreciate further by more than 20 
per cent. 

A decree on October 3, 1934 (Journal Offlclel, October 4, 1934) 
withdrew the exchange compensation surtax on goods imported into 
France from Canada. 

The exchai^e compensation surtax on Uruguayan goods was with- 
drawn by a decree dated February 2, 1935 (Journal Offlclel, 
February 3, 1935,) In furtherance of a coiapensatlon agreonent signed 
by the two countn^ on January 25, 1935. 

A conmierclal agreement between France and The Belgium-Luxemburg 
Economic union, dated April 6, 1935 (Fronch Journal Offlclel, 
i^rll 10, 1935), included measures Intended to prevent the devalua- 
tion of the imion currency from resulting in an influx of goods from 
the Union to the French market at prices that would upset trade. 
The parties agreed that as regards goods subject to import restric- 
tion m France, the grant of licenses or quota certificates should 
be subject to a written undertaking by the seller to sell at prices 
which will not be lower than the current prices idilch were or wcjuld 
have been operative on taie French maiicet If there had not be«i any 
devaluation of the Belgian currency. As to other goods, the Belgian 
and Luxemburg Gtovemments undertook to prevent sales to France being 
effected at lower prices on account of the devaluatlcm. If necessary 
by instituting a system of licenses. The agreOTient was entered Into 
for a period of six months. 

A decree dated October 2, 1936 (Journal Offlclel, October 3, 
1936), withdrew the exchange compensation surtax of 15 per cent on 

goods originating In and coming from Australia, Egypt, British 
India and Indian Native States, New Zealand, Paraguay, Argentina, 
the Union of South Africa and Mexico; and reduced the rate of sur- 
tax on goods from Japan and China from 25 to 10 per cent. This 
action was taken in consequence of devaluation of the French franc. 

A law dated July 9, 1937 (Journal Offlclel, July 10, 1937), 
effective until January 31, 1938, conferred upon the Government 
special powers to modify customs duties by decree, such decrees to 
be submitted to Parliament for subsequent ratification. The law 
also nodlfled the antidumping powers of the Government: 

The Ooveraaent nay,- by decree of the Council of Ministers: 

(1) Assess a compensating tax on dutiable or non- 
dutiable iBBrchandlse which benefits, in its country of 
origin or of export, from a bounty or a direct or Indirect 
export subsidy, whatever its nature, origin or method of 
attribution. Also Is subject to tails provision, merchandise 
originating In, or exported from certain countries, v^en 
the price of tJtie wrchandlse at the French fnuitler is at 



♦ 



- 42 - 

least 20 per cent lower than the prices on which the minimum 
tariff applicable was calculated. However, this provision 
will not "be applicable If the reduction In foreign Import 
prices at the French frontier is the consequence of a general 
lonerlng In production costs, occurring at the same time in 
France and in the principal producing countriee. 

A decree dated January 30, 1933 (Articles 1 to 3) applicable 
In the French Zone of Morocco, provided for compensation duties on 
i^rts from countries "where products and merchandise benefit from 
aaqport premiums or analogous advantages which lower the price 
beneath the normL return." The rate of the duties shall be cal- 
culated "so as to reestablish the actual value of these products and 
■ercdiandlse at a parity wltH that nomally and fairly practiced by 
the other Importing countries benefiting by the most-favored-natlon 
clause/ and shall be fixed by decisions of the Director General of 
Finances after advice of a special commission comprising the Chief 
of the Bureau of Commerce and industry, two members of the Chambers 
of CoMsrce and Industry, an agent of the Bureau of Customs and 
Excise, aiKl an expert naaad by the Secretary General of the 
Proteetorate. 



under the Bnabllng Act of March 24, 1933, now made effective 
until j^ril 1, mi, the Qovemment has coniplete authority to limit 
and control foreign trade, introduce eiqport and import duties, and 
to put into effect comrttercial agreements with other countries. A 
Central Bureau to direct the control boards, mn created under the 
Fl^xeign lixchange Control Lavi of Feb. 4, 1935. 



(mkt BRItAIN 

Antidumping measures were proposed in 1932; and in January 1934 
a bill was Introduced, but not passed, vtiich would have given 
customs conmissloners authority to exclude impoits from a foreign 
country In which "currency Inflation wttiipulation be eii«)loyed for 
the purpose of enabling such article to be" sold in threat Britain at 
a price below the cost of production." 

The British Key Industries Duties Act, at first effec- 

tive for five years, was continued for ten years more by the Finance 
Act of 1926; and in 1936 was again extended for a ten year period 
banning on August 19, 1936. 



1. Text in our 1934 report. 



- 43 - 

HUNGARY 



The Hungarian Customs Law, June 26, 1926, effective on July 1, 
1926 (not covered In our report in 1934) authorized the Government 
to impose additional duties up to three times the statutory rates 
(or up to 100% ad valorem) for dutiable articles, and special duties 
-for articles free of duty by way of retaliation on the products of 
or filiipments from a country: 

(1) in v*ilch the vessels or products of Hungary are sub- 
jected to less favorable treatment in any respect than ttet 
accorded to other countries; or 

(2) f*iich by unfair methods support a competition that 
endangers the maintenance of a Hungarian industry. 

With respect to articles originating In countries vdilch levy "unfair* 
duties on Hungarian products, or in any way treat the vessels or 
products of Hungary unfairly, the Government has the pover to decree 
duties or treatment "comparable in effect." 

INDIA 

The Safeguaiding of industries Act, No. 13 of 1933, passed on 
itoril 16, 1933 (Gazette of India, i^ril 22, 1933),!/ was intended to 
iiMt Japanese duai>ing, following conplalnts of Indian cotton mills 
and the hosiery industry of Bengal. The ad valorem duty on inports 
of cotton goods had been increased in 1922 for the same purpose. In 
order to make the act of 1933 effective, the British-Japanese ccm- 
aercial convention of 1904, under ifAiich India granted to Japan 
iDst-favored-nation treatanoit on tariffs, was abrogated before the • 
Indian act vnas passed. 

A comnercial agreoBBnt altered into by the Oovemments of India 
and Japan in 1934 (statement issued by the Oo^remment of India after 
a meeting between the Indian and Japanese dAegates held at Naw 
Delhi on January 5, 1934) included previsions under fUlcYi duties 
might be Imposed by eitiier country on Imports from the other, to 
correct the effects of depreciation of the Japanese yen or the 
Indian rupee: 

Notwithstanding all other agreements that have been 
entered into, the Government of India shall hare the ri^t 
of imposing or varying from time to time special rates of 
Customs duty on articles, the produce or manufacture of 
Japan, other or higher than those levied on similar 
articles, the produce or manufacture of any other country. 



1. Full text m our 1954 report . 



- 44 - 



at such rates as the Government of India may consider to be 
necessary to correct the effects of any variation of the 
fixcuange value of the yen relative to the rupee subsequent 
to December 31, 1933. In imposing or varying or on being 
requested by the Government of Japan to vary such special 
rates of Customs duty, the Government of India undertake to 
give full coffilderatlon to relevant factors which tend to 
raise export prices of Japanese goods, such as tte purchase 
!>y Japan of raw Materials in markets outside Japan and the 
adjustnent of internal Japanese prices, and to limit such 
rates to viiat is necessary to correct the effects of the 
demciation of me exchange value of the yen relative to 
ttm rupee on the duty-paid value of Japanese goods inported 
into India. 

fhe QoveniBient of India further undertake that no 
«x<tengB in any such rate fi(hall be rnde until it has been 
in force for at least five weeks. Reciprocally the 
Government of Japan ahall have the right of Imposing or 
varying special rates of CUStooB duties similar to those 
to v*ilch reference has dust been made <ai articles the 
produce or nanufacture of India under similar circifflstances, 
and subject to similar ctHiditions provided that such right 
should not accrue to the Oovemment of Japan unless the 
exchange value of the rupee relative to the yen shall be 
depreciated below the value of .732 yen. 

Act No. 32 of 1934, Section 8, provided for duties in case < 
bounty dumping: 

(1) Where any country, dependency, or colony pays or 
bestows, directly or indirectly, any bounty or grant upon 
the production therein or the exportation therefrom of any 
article and the article is chargeable with duty under the 
provisions of this act, thai, upon the importation of any 
such article into British India, v^ether the same Is 
imported directly from the country of production or other- 
• wise, and whether it is imported in the same condition as 
eiQ>orted from the country of production or has been 
(dianged In condition by manufacture or otherwise, the 
Governor General in Council may, by notification in the 
Gazette of India, impose an additional duty equal to the 
net amwint of such bounty or grant, however the same be 
paid or bestowed. 

(Z) The net amount of any such bounty as aforesaid 
^lall be, from time to time, ascertained, determined and 
declared by the Governor General in Council, and the Governor 
General in Council may, by notification in the Gazette of 
India, mOm rules for the indentlflcatlon of euch articles 



- 45 - 



i i 1^ 



and for the assessment and collection of any additional duty 
imposed upon the importation thereof under si«)-section (1). 

Passage of this law was followed by complaints in 1935 as to (Wng 
of German goods under the export bounty system. 

^ . ► IRAN 

I (fomerly Persia) 

i' Foreign trade in Iran became a monopoly of the State under the 

Trade Monopoly Act of February 25, 1931, as amended by the Law of 
S^SbJ^d'^Sods, June 21, 1932, and the Foreign Trade Maiopoly 
(Anandmait) Act of July 10, 1932. All operations in foreign 
iSjTi^ in Se ^nds of an Exchange Control Connnission under a 
I uT^rn^^ 1, 1936. The Tariff Act of May 22, 1936, provided in 

. . Article 2: 

I in the case of an or part of mBrchandlse imported 

\ from countries itiose customs duties, other dues or cu stems 

I foimlities; cause losses to Iranian exports, the Governor 

^ j > is authoriaBd to increase the rates specified in the annex 

J tari-ff to the necessary degrade. 

IRAQ 

^ > (formerly Mesopotamia) 

Customs Tariff Law No. 11 of 1933 provided for duties in 
retaliation for excessive duties imposed on goods exported by Iraq, 
. , V and also for exchange dimrping duties: 

Article 5. If at any tima it ^11 appear to the 
Government that protective or retaliatory action is 
necessary owing to the interests of Iraq being endangered 
^ y by events in a foreign country, either: 

(a) by reason of the collection of excessive duties 
or taxes on Iraqui goods, or the imposition of 
import or e^ort prohibitions or restrictions, or 



(I 



(b) by reason of depreciation in the currency of 
such country which tends to disturb normal trade 
coii«)etltlon to an extent endangering Iraqui coMwroe; 

regulations may be issued sub;)ectlng the goods orlg^tii^ 
V m any such country to an Increase in duty, but so that me 

v^iole duty shall not exceed double the duty prescribed by 
^ the import schedule to this law, or In the case of goods not 
^ > liable to duty under the said schedule, to the iwositlon or 

an ad valorem duty not exceeding 20 per cent. 



- 46 - 



ITALY 

A Royal Decree Law, No. 1428, (Articles 1 and 3) dated 
September 28, 1933 (Gazzetta Ufflclale, Novenfl)®: 15, 19»), pro- 
vided that whenever as a result of the depreciation of a currMicy, 
the importation of certain products from the country In vitilch the 
depreciation took place, causes a serious disturbance affecting the 
Italian market for those products, the Italian Government be 
authorized to raise existing Import duties on such products coiling 
from that country by a "coefficient of compensation proportionate 
to the depreciation of the currency. The application of such duty 
Increases shall be by decree, on recommendation of the Minister of 
Corporations, in concert with the Ministers for Finance, 
Agriculture and Forests. The duty Increase may be suspended or 
rewked by Royal decree vdien the reason for which it was Imposed no 
looger exists* 

A decree applicable to Italian Somallland, dated October 4, 
1934 (Article 10b) authorized the Minister of Colonies, upon advice 
of tiie Colonial Governor, to Impose special Import duties on 
specified products. In addition to customs collections prescribed 
in the tariff, «ton temporary, conditions of a fiscal, conmiercial 
or econoMc nature rwHer such ^clal duties necessary. 



JAPAN 

Law No. 45 of 1934, for the Adjustment and Protection of 
Foreign Trade, ms amended and extended by Law No. 1 of May 22, 
1936, effective until nay 1, 1940. This act provided for retali- 
atory measures In case of unfavorable treatment of Japanese goods, 
countervailing duties to offset bounties In foreign ccuntrles, and 
ordinary dun5>ing duties If goods are Inported at unreasonably low 
prices:"!/ 

Article IV. 

Additional duties, not exceeding In amount the value 
of the articles designated by ordinance, may be Imposed on 
ln5)orts produced or manufactured in, or exported from, or 
transshipped through a country in v*ilch the vessels, 
produce, manufactures, or exports of, or shipments throuCi 
Japan are subjected to less favorable treatment than that 
accorded to other countries. 



1. Former Japanese measures in prevention of dumping, were included 
^ in the Customs Tariff Laws of 1920, 1921, 1926, discussed In our 
1934 report. 



- 47 - 



Article V. 

Section 1. On articles on which an export bounty is 
granted In foreign countries, an additional customs duty 
corresponding In amount to such bounty my be laposed. 

Section 2. When any linportant industry in JBpsn is 
thXBatened with Injury by the Inportatlcm of unreason^ly 
cheap articles or the sale of imported articles at 
unreasonably low prices, the Government, after Irorestlga- 
tlon by the dunqping Investigation comBlttee, may specify 
such articles by ordinance and Impose upon them, during a 
specified period of tlma, additional duties not exceeding 
the proper value of the goods. On articles thus designated, 
lii5)orts of which are already In possession of a dia«>lng 
seller or his agent, the addltlcml duties may be collected 
from these persons, according to the provisions governing 
the collection of national taxes. 

An Import surtax of 50% ad valorem became effective July 20, 
1935, on products Imported from countries whose 1934 trade was 
excessively unfavorable to Japan, or which during the year Imposed 
arbitrary duties on Japanese goods. Including wheat, vtieat flour and 
wheat bran; pulp for paper making; packing paper; match paper; 
endless felts for paper making; parts of machinery not otherwise 
provided for; pine, fir, cedar, and other caiiferous lumber, tinber 
and logs; and raw gluten. 

Compensation or barter agreements have been an Important part 
of the Japanese trade policy, and some of ttese agreements have 
Included duii5)ing provisions. The Japanese-Turkish Treaty of 
C<aB»rce and Navigation signed on October 11, 1930, ratifications 
exchanged and finally effective on April 19, 1934, Included in its 
protocol a provision to the effect that the treaty shall not be held 
to prevent the parties from taking ant 1 -dumping measuJres. This 
treaty was raplaced by an accord on May 27, 19^. 

A conerclal agreement entered into W Japan with India in 
1934 stated that duties mlgjit be lim)Osed by either country on goods 
l9)orted from the other country, in case of depreciation of the 
Indian rupee or the Japanese yen (terms quoted In this report under 
India.) 

LATVIA 

Law of December 23, 1932, authorized the Executive to apply 
minimum rates aa the products of any country ttiat did not treat 
Lettish goods and Lettish shipping lees advantageously thm the 
commerce and shipping of any third state. 



- 48 - 

A law dated August 's, 1933, eopowered tHe Gtoveirnment to take 
measures of reprisal against countries vdth vMch the Netherlands 
has no treaty of cQonerce aiKl vUldi treat the Netherlands 
■ore unfa¥orably than tl^y do other nations or In a Banner contrary 
to the vital Interests of that country. This nay be effected ty 
^clal laport duties, quotas, or Isy prohibiting Importation. 

Law No. 260 passed on my 17, 1934, to be effective from May 20, 
1934, to January 1, 1937, and extended to January 1, 1942, by Boyal 
Decree No. 408 dated Deceober 31, 1936, provided In Article 21 that 
•in order to prevent the ruin of Dutch industries by foreign maas- 
ures vtilch threaten their existence, or In order to put tariff 
agreements with the foreign powers into Immediate effect" an Order 
in Council Issued after consultation with the Economic Council, may 
impose, abrogate, raise or lower Import duties for a period not 
exceeding cfne year. After the order comes Into effect, a bill to 
approve the action of the Council must be Introduced Into the Second 
Chamber of the States General. Should this bill be withdrawn, or 
should either of the two Chambers reject It, the Order In Council 
must be withdrawn Immediately. 

In an exchange of notes In connection with the reciprocal trade 
agreement between the United States and the Netherlands, effective 
on February 1, 1936, provision Is made for Informal notice and 
opportunity for representations to be made, to the other government 
concerned, before any antidumping duties may be imposed; and no 
decision to Impose such duty on the products of the country 
concerned will be made within thirty days after such Informal notice 
has been given, unless an earlier decision is required by law. 



NEW ZEALAND 

The Customs Amendment Act of 192ll/ Is still In effect, though 
we have little infomatlon as to Its application. A durplng duty 
Imposed on pig Iron from India (Gazette, Septeinber 22, 1927, p. 
2920) was withdrawn on Hay 9, 1937. 

Under the Canadian-New Zealand trade agreements, dumping duties 
■ay not be applied to Canadian goods imported into New Zealand unless 
prior notice has been given that imports would be Injurious to 
New Zealand producers and manufacturers of similar goods, and no 
satisfactory remedial measures are put Into effect within thirty days 
by the Canadian Qovemment. 



1. Pull text In our 1934 report. 



- 49 - 
NEWFOUNDLAND 

An amendment to the Revenue Act of 1925,1/ Included In the 
budget resolutions. Introduced In the Newfoundland legislature on 
June 29, 1933, and provisionally effective on June 30, 1933, pro- 
vided for dumping duties on Imports: 

The export price of which Is less than the domestic 
value of the goods when sold for home consumption in the 
country of export, even when the goods are of a class or 
kind not made in Newfoundland. 

The Newfoundland Revenue Act of 1935, Section 10, provided for 
dumping duties and special duty countervailing exchange differences: 

(1) In the case of articles exported to Newfoundland, 
If the export or actual selling price to an Importer In 
Newfoundland be less than the domestic value of the same 
article when sold for home consumption In the usual and 
ordinary course In the country whence exported to 
Newfoundland at the time of Its exportation to 
Newfoundland there shall. In addition to the duties other- 
wise established, be levied, collected and paid on such 
article on Its Importatlcxi Into Newfoundland, a special 
duty (or dumping. duty) equal to the difference between the 
said selling price of the article for export and tbe aald 
domestic value thereof for home consunptlon. 

Provided that the said special duty shall not exceed 
25 per cent ad valorem In any case; 

Provided further that excise duties shall be disregarded 
In estimating the dcnoestlc value of goods for the purposes of 
special duty. 

(2) The expression "export price* or "actual selling 
price" In tbla section shall be held to mean and include the 
exporter's price for the goods, exclusive of all charges 
thereon after their shipment from t^e place v^ence exported 
directly to Newfoundland. 

(3) If at any time It appears to the satisfaction of 
the Commissioner for Finance that the payment of the special 
duty by this section provided for Is being evaded by the 
shipment of goods on consignment without sale prior to such 
shipment, the Commissioner for Finance may in any case or 
class of cases authorize such action as Is deemed necessary 
to collect on such goods or any of them the same special 

1. Full text in our 1934 report. 



- 50 - 

duty as If the goods had been sold to an importer In 
Newt oundland prior to tlielr alilpDiBnt to NQwXoundland, 

(4) If the full amount of any special duty of Customs 
Is not paid on goods Imported, the Customs entry thereof 
shall be amended and the deflcloicy paid iu)on the demancl of 
tbe proper officer of Oust cms. 

(5) The Conml sal oner for Finance may make such regula- 
tions as are deemed necessary for carrying out the provisions 
of tiUs soctlcn and for tte enforcement thereof • 

(6) Such regulations may provide for the temporary 
exemption from special duty of any article or class of 
articles, when it is established to the satisfaction of the 
Conlssloiier for Finance that such articles are not sold In 
Newfoundland In substantial quantities and offered for sale 
to all purcbaaers on eqaal terns. 

(7) Sucb regulations may also provide for the exenp- 
tlmi from special duty of any articles v\4ien the difference 
between the current doneatlc value and the selling price 
thereof to the lmi>orter as aforesaid amounts only to a snail 
pero^tage of its currait domestic value. 

« 

(8) Vftienever the currency of any n<m-Brltl^ country 
has depreciated In relation to Newfoundland ciirrency there 
mnll be Imposed upon the produce of such foreign country 
liable to ad valorem duty or a specific duty, or both, an 
aidditlonal duty oar special duty equal to the difference or 
any part of the difference between the value of the goods 
computed at the current rate of exchange at date of invoice, 
su^h rate of exchange being certified by a Bank or British 
Ccmsul, and the value of the goods ccmmted at the par value 
of the said currency or at the proclalm.ed value as fixed 
tnm tine to time by the Comissioaer for Finance under 
Section 70 of the Customs Act, 1933, and all such additional 
or special (^tiee ^11 be collected in additicm to and in 
Hie mm mumer as all other duties now payable. 

Subsections 1 to 7, of Section 10, as quoted above, were repealed by 
a Tariff Amendnent Act, No. 7 of 1936, dated MBr6h 24, 1936. These 
provisicns were said to be impracticable of enforcement in 
Newfoundland. 

The Newfoundland Act to Amend and Consolidate the Law Relating 
to the Customs and Excise, dated March 26, 1938 (Gtovernmdnt Qazette, 
April 5 and 12, 1938,) Includes provisions governing valuation of 
goods for duty purposes, and provides for an additional levy of one- 
half the ordinary duty payable v*ien properly valued in cases where 
the true value as determined under the law is found to exceed by 



51 - 



twenty per cent the value declared on the customs entry. Section 
109 of the act provides also for valuation in case of imports at 
prices or values involving unfair competition with producers or 
manufacturers in the British Empire: 

109. ..... (4) If at any time It appears to the 

Commissioner of Finance that goods of any kind are being 
ivorted into Newfoundland, either on sale or on consign- 
ment, under conditions or at prices or values as involve 
unfair competition with producers or manufacturers In the 
British Qvpire, including producers or manufacturers In 
Newfoundland, taie Commissioner for Finance may authorize 
the Board of Customs to fix the value for duty of any such 
goods; and in any such case notwithstanding any other pro- 
vision of this Act the value so fixed tiMl be deemed to be 
the value for duty of such goods. 

PARAGUAY 

Article 9 of the Tariff Act of 1925 (not covered in our report 
In 1934) authorized reduction or Increase In duties, by as much as 
one-half, the Inposltion of new duties equivalent to 50% ad valorem, 
or prohibition of eaqports. In case of: 

(1) National emergency. 

(2) Economic-financial reascxis, 

(3) Public health, animal sanitation, and agricultural defense. 

(4) The adoption In foreign countries of legal or regulatory 
losasures which prejudice the national comnerce. 

(5) Excessive speculative activities by trusts or other 
financial combinations, abroad or within the Republic, for 
the purpose of changing prices to the prejudice of the 
Paraguayan national economy. 

(6) Freight rates which are pre;]udrcial to national com- 
merce and economy, if such freight rates are shown not to be 
based upon a legitimate and moderate profit, or to have been 
established by means of arbitrary combinations. 

Similar acts were passed In Bolivia and Ecuador In 1927, 

A law dated October 26, 1935, to be effective' until August 31, 
1936, authorized the Executive to raise the customs duties on gDods 
imported into Paraguay in order: 

(a) to protect products of national Industry against dumping; 



52 



(b) to compensate the reduction in duties caused by ttie 
official rate of exchange v^ere these duties serve as a 
oeans of stimulation to national production; 

(c) to re-establish vyholly or partially luportatlon duties 
reduced as a result of the application of the official rate 
of exchange. 

The pcwvers granted in the 1935 law are limited to manipulation of 
the proportion of customs duties payable "in gold", the latter to be 
paid at open rate in accordance with the quotation v^lch shall be 
oade by the Exchange office In each case • 

PERU 

Law No. 8463 dated November 14, 1936, effective until 
Decenber 8, 1939, gave the Executive unlimited legislative authority 
over all phases of tariff and commercial policy. The Executive may 
Impose by decree, without limitation, special charges such as anti- 
<lQii>liig dutiefl^ flortaxos, nd import license fees. 

POLAHD 

A Presidential decree dated October 27, 1933, included provi- 
sions in preventitm of bounty]/ and exchange dumping, imder Article 
14 the Ckiuncil of mnisters Hiy, by decree: 

place aUditicxial duties on foreign goods vtilch ocm from 
eountrlee witli depreciated currencies, as nell as from 
countries liii^, by lieans of any Icind of export bounties 
or grants, or by other means, support a coopetitioiEi 
eccmomlcally detrimental to dosestio production. 

The Customs Decree Law effective on October 30, 1934, (Journal 
of Laws No. 84, Section 610, 1933) provided in Article 14 that: 

The Council of Ministers may issue orders: 

(a) imposing retaliatory duties on merchaniise originat- 
ing in countries in v*iich Polish goods and means of trans- 
portation receive worse treatment than is accorded to merchan- 
dise and means of transportation from, other countries. 

(b) inqposlng additional duties on foreign merchandise 
originating in countries that have depreciated currencies or 
that employ any form of export bounty or other means of sup- 
porting coB^tltlon economically harmful to domestic production. 



1. Our report in 1934 discussed a Polish order, Noveinber 12, 1924, 
authorizing duties to offset bounty dumping . 



PORTUOAL 



Decree 17,823, of December 31, 1929, effective on January 6, 
1930, also authorized the Gtovenrniait to Increase Import duties and 
navigation dues five fold or to fix rates upon duty free goods with 
respect to conmodltles or vessels orlglnatli^ in or coming from 
countries which do not concede their minimum tariff to Portugal, if 
such countries: 

(1) levy surtaxes on imports from Portugal originating in its 
colonies or in foreign countries by reason of transshipment. 

(2) establish import restrictions or any special measures in 
any way prejudicial to Portuguese exports, or establish any 
tariff provision especially affecting a particular article or 
group of articles produced in Portugal or its colonies or any 
other commodity which Is or may be an Important article of 
Portuguese export. 

Article 3 of the same decree provided: 

With respect to countries which do grant Portugal their minimum 
tariff but levy transshipment siartaxes as indicated above, the 
Govenmient is authorized to impose additional duties of one-half 
the rates of the Portuguese minimum tariff on the principal 
connodlties Imported, and also to increase the navigation dues. 

Article 4 of this decree (No. 17,823 of 1929) authorized «ie 
OovemmBnt, whenever it has been established that any imports 
article enjoys In the country of origin or shipment any direct or 
indirect export bounty or benefits of any other form, to impose new 
or additional duties equal to the amount of the grants. (This was 
covered in our report in 1934. ) 

Decree Law No. 23,713, March 28, 1934 (Diario do Govemo, 
March 28, 1934) designed to give effect to the Coramercial Agreement 
betv/een Portugal and France, signed at Paris on March 13, 1934, 
abrogated countervailing duties on cod fish imported from France or 
St. Pierre and Miquelon, or direct from the fisheries having been 
caught by French vessels. This duty (equivalent to 80 francs per 
100 kilogs) had been levied under Decree No. 22,499, May 8, 1933, to 
offset French export bounty. 



RHODESIA, SOUTHERN 

The Customs and Excise Amendment Act of May 10, 1935, Included 
provisions for additional duties In prevention of ordinary, freight, 

LL-MS 



- 54 - 

bounty or exchange dumping. The same provisions were repeated In 
the CuBt<»is and Excise Amendnent Act or 1337^1/ 

Oovemment Notice No. 559, July 24, 1936, provided for Impo- 
sition of exchange dumping duty on stationery imported into 
Southern Rhodesia from Japan, to be equal to the difference between 
the cost free on board at the port of shipm^t of such goods to the 
lB]K>rter in Souttiem Rhodesian currency, and such cost expressed in 
Japanese currency in terms of Southern Rhodesian currency at the 
rate of 1 yen - 24d. 



RIMANIA 

Article 4 of the Tariff Act of July 29, 1929 (Royal Decree No. 
2ldBl) not covered in our report in 1934, authorized the Oovenment 
to increase, in an exceptional and temporary manner, the customs 
duties on articles with minimum duties: 

when the existence of a national industry is endangered by 
reason of the export price of a foreign prod\»$t being lower 
than the Internal market price. 

In such a case It must be shown that: 

(a) the donestlc Industry concerned Is a sufficiently Important 
branch of the national economy; 

(b) its existence appears to be really endangered; , 

(c) it is equipped, organized and administered according to 
modem technical and economic methods; and 

(d) such Increase In the minimum rate of the article In 
<mB8ti(m will not injure some other branch of production. 

The Customs Regulations of April 8, 1933 ( Handel sarchlv 1933, 
p. 3130-, Monltorul Official No. 87, April 13, 1937) provided for 
conmercial conventions with foreign countries for the purpose of 
modlfyii^ custons tariff. Goverrment royal decrees may be issued 
In onler to nake 8u<*i provisions effective, and further decrees may 
ai^ly surtaxes <m goodis imported from countries that apply dis- 
criminatory surtaxes or prohibitions on Runanian goods. In case of 
depreciation of currency in a foreign country, the Ronanlan customs 
duties m eootls from ^lat country may be increased proportionately 
to t^e depreciation: 



i. Law Ho. 1?, Hay Ifl, 1887, Ml text of Section 6 In Exhibit B 
^ herewith. 



- 55 - 



Article 28. The customs tariff Is fixed by law. The 
Government Is empowered to conclude agreements with foreign 
States by which the customs duties are altered. Before 
approval by Parliament, modified duties may be put into effect 
by royal decree, based on a resolution of the Council of 
mnlsters. 

The Government may by royal decree based on a resolution 
of the Council of Ministers, apply surtaxes or prohibitive 
measures on products of countries vdiich apply discriminatory 
surtaxes or prohibitions on Rumanian products. 

When one or more States establish prohibitions, quotas, 
or any other indirect restrictions on the Importation of cer- 
tain classes of merchandise, thereby prejudicing the exportation 
of Runanian products, the Government may by royal decree based 
on a resolution of the Council of Ministers, adopt similar or 
other measures against the principal products imported from. 
those countries into Rimania. 

In case of the depreciation of the national currency the 
Gk>vemm6nt miay by royal decree based on a resolution of the 
Council of Ministers, increase the custcMBS duties in proportion 
to the depreciation. 

These measures must be siiHuitted to Parliament at its next 
session. 



SALVADOR 

Article 6 of Legislative Decree No. 67 of 19S4 (Diario Oficlal 
No. 143, July 3, 1934) provided for retaliatory treatment by applica- 
tion of either the maximum or Intermediate rates to products of 
countries which "by laws or customs regulations endeavor to restrict 
imports from Salvador." 



SOUTH AFRICA - BASUTOLAND, BECHUANALAND AND SWAZILAND 

Exchange dumping duties have been levied on certain classes of 
goods imported into Basutoland, Bechuanaland and Swaziland, follow- 
ing much the same lines as the levies Imposed oy the Union of 
South Africa (Cape of Good Hope, Natal, the Transvaal and 
Orange Free State). 



-56 



SOUTH AFRICA, UNION OF 

Antidumping provisions found in Chapter II of the Customs 
Tariff and Excise Duties Act of 1925,1/ as amended in 19312/ 
(covered in our report in 1934) and again amended In 19342/ and 
1936(i/ are given in full as Appendix 9 herewith. 

JaenOaients in 1934 were of minor character. The 1936 act 
revised the definition of "domestic value" for the purpose of levy- 
Itm dinqplng duty, ansl changed provisions relating to ordinary, 
exchange, ciHisignment and freight dumping. Provisions for bounty 
diaipii^ w«re not changed. 

Qovernnent Notice No. 1200 of 1933 brought into force an 
exchai^e doaping duty on the following -imports from Japan: all men's 
aiKl boys' hats other than tweed hats; all bottles and Jars other than 
of ttm beer and mineral water types; all paints and colors other than 
artists' colors and dry pignflnts, and on matches. This duty is to be 
equal to the difference between the f .o.b. cost of the goods at the 
port of shlpient to the Importer In lAiion currency, on the one hand, 
and such cost expressed In the currency of the country of origin or 
esqport of the goods, ecaputed in tems of Uiion currency at the rate 
detemlned by the Act lie Minister of Finance^ an the other hand. 
The rate so detemlned, at that time was 1 yen - 23.35 pence 
S. African. 

UMer Proclamation No. 245 of 1933, effective on November 3, 
1933, a bounty or subsidy duty was placed upon clothing manufactured 
in Poland and Imported into the Uhlon from the IMlted Kingdom, 
Irish Free State, Qemany, Holland, Belglmi, France, Italy, or 
Cssechoslovakia (a similar duty was already effective cm clothing 
Imported into the Union from Poland. ) The amount of the duty was 
equal to the amount of the bounty or subsidy granted to manufactur- 
ers in Poland on certain az*tlcles of men's clothing. The Polish 
bounty or sibsldy was discontinued on October 31, 1933. Duties were 
therefore not leviable on conslgiments proved to have been exported 
from Poland subsequent to that date. (Notice No. 69 of 1934, piO)- 
lished In Union Government Gazette, February 16, 1934.) 

Proclamation No. 267 of 1933, effective on December 8, 1933, 
levied an "ordinary" dumping duty on cement Imported Into the Union 
from Japan (modified by Proclamation No. 212 of 1937). 

Government Notice No. 1708, effective on December 15, 1933, 
provided for exchange dumping duties on certain goods Imported from 



1. Law No. 36 of 1925. 

2. Law No. 49 of 1931. 
5. Law No. 40 of 1934. 
4. Law No. 25 of 1936. 



- 57 - 



Japan: biscuits, apples, men's knickers and smocks, neckties, braces 

and suspenders, wire nails, rails (including rails not exceeding 30 
lbs. per running yard,) oils (vegetable or animal, hardened or 
hydrogenated, ) bicycle tubes, and wooden boxes (empty or in shocks, 
except for packing fresh fruits, other than citrus, and excepting 
also boxes for packing dried fruits and dairy produce, eggs, and 
condensed milk manufactured in the Union. ) The rate detennlned on 
these products was 1 yen - 23.35 pence South African. 

Proclamation No. 11 of 1934, effective on January 26, 1934, 
provided for an "ordinary" dumping duty to be levied on sweetened 
and unsweetened condensed milk imported into the Union from Denmark. 
The amount of the duty should be equal to the difference between the 
"domestic value" and the "export price" of the milk. Domestic value 
was defined as: 

the market price at which at the time of purchase thereof by 
the Importer such or similar sweetened or unsweetened condensed 
milk is offered for sale for consumption in the country from 
which it is exported to all purchasers in the usual wholesale 
quantities In the ordinary course of trade in the principal 
markets of such country, including the cost of packages ordi- 
narily used in those markets, less any drawback of duty granted 
by the Government of the exporting country in respect of 
sweetened or unsweetened condensed milk on exportation, plus 
the extra cost of packing and packages for export, carriage to 
port of shipment, and all other expenses incidental to placing 
the condensed milk on board ship ready for exportation to the 
Iftiion. 

Export price was defined as: 

the price free on board at which the sweetened or unsweetened 
condensed milk is sold by the exporter to the importer in the 
Iftilon. 

South African exchange dumping duties were for a time limited 
to a maxlmm of 50% ad valorem, but this limit was moved in 
April 1934. 

Exchange dumping duty was imposed in April 1934 (Govement 
Notice No. 423, published In the Oasette of April 5, 1934) on cer- 
tain goods Imported from Japan, including: millet; dried peas, 
beans and lentils; knitted underwear but not including Jerseys and 
pullovers; socks and stockings for men and boys, handkerchiefs. 
Infants' footwear, cotttm canvas, padded quilts, spades, miovels, 
barbed wire, wire netting, rubber tiles, aluainim sulphate, magne- 
sium sulphate, copper sulphate, rubber water hose up to 3 Inches in 
diameter, rubber flooring, sodiun sulphate, shopping bags, and 
manufactured cotton waste. 



- 58 - 



A Government Notice, No. 1457, Issued on October 12, 1934, con- 
tained lists of goods originating in Japan and India which were to 
be siDJect to exchange dumping duty, upon Importation into the imion, 
including Japanese goods, as listed in Government Notice No. 1200 or 
1933 and notices in December 1933 (noted above) and also: confec- 
tionery, Jams and Jellies, blankets, carpets and rugs, rope and 
twine, batteries, certain polishes, soap and soap powders, super- 
Phosphate, boots and shoes, other leather manufactures, brushes, and 
fwnlture. Indian goods on which dumping duties were then in effect 
IncluledJ confectionery, fruits, Jams and Jellies, groundnuts, 
pldaes and other coallments, salt, sugar and sugar substitutes, 
blankets and nigs ot certain weight and woolen content, carpets and 
mts. ami's and boys' clothing, twine and rope, vegetable and animal 
oils, paints and colors, soap and soap powder, leather manufactures, 
and fymiture. 

Proclanatlon No. 205 of 1934, published in the Gazette on 
October 29, 1984, levied ordinary dunplng duty on glucose imported 
into the Italon fn» Belgium, Holland, Gteiiiiany and the United States. 

Proclamtlon No. 254 of 1934, pit)llshed In the Gazette on 
December 21, 1934, levied ordinary dunping duty on steel Joists, 
channels, equal or unequal angles, bars, fUts, tees, rods (round or 
square,) sleepers, and rails up to 30 lbs. per running yard,^and 
fishplates therefor, on importation Into the Union from B®^*^* 
Gennany, France (Saar) and Luxemburg. Proclamation No. 65 ofl9^ 
removed the duty from sleepers and deleted "Prance (Saar)" from the 
list of countries. 

Government Notice No. 185, published In the Gazette on 
February 8, 1935, Imposed exchange dumping duties on tennis racquets 
and racquet frames from Australia, and on tea, perfunery and toilet 
powders, mackintoshes, ladles' fancy handbags, tennis racquets and 
frames, from Japan. This list was extended on July 12, 103S to 
Include slippers of Australian and Japanese origin (Oovemnwit 
Notice No. 977). 

Proclamation No. 98 of 1935, dated May 23, 1935, imposed a 
bounty dumping duty on bacon and ham produced in Denmark, Holland, 
Latvia, Lithuania, Poland or Sweden, equal to the amount of the. 
bounty or subsidy granted to the manufacturers in those countries, 
but not to exceed 50 per cent ad valorem. 

Proclamation No. 218 of 1935, dated October 21, 1935, Imposed 
ordinary dunping duty on rope imported from the Philippine Islands. 

In November 1935, ordinary dumping duties were placed on cer- 
tain steel products Including: Joists, channels, equal and unequal 
angles, bars, flats, tees, light rails up to 30 lbs. running yard 
and fishplates therefor, from France; galvanized Iron sheets 1/16 
m. and under, from the United Kingdom and the United States; and 



- 59 - 



black iron and steel tubes, all sizes up to and including 6i in. out- 
side diameter, fittings therefor, all tubular poles, tubular bends, 
tubular springs and flanges, from the United Kingdom, Poland, France, 
Belgium, Gennany, and Czechoslovakia (Proclamations 242, 243 and 
244. ) Ordinary dumping duty on galvanized Iron sheets from the 
United Klngdcm was repealed on January 2, 1936. Proclamation No. 
244 relating to ordinary dumping duties Imposed In November 1935, on 
goods Imported from the United Kingdom, Poland, France, Germany and 
Czechoslovakia was amended on January 17, 1936 (Proclamation No. 17), 
by the deletion of the words "Black iron and steel tubes, all sizes 
up to and including 6i in. outside diameter, fittings therefor, all 
tubular poles, tubular bends, tubular springs and flanges," and sub- 
stitution therefor of the following paragraphs: 

All wrought Iron and wrought steel tubes or pipes, stral^it 
or bent, uncoated, coated or otherwise protected. In sizes 
up to and Including 6| Inches outside dlaroter, except boiler 
tubes, boiler stay tubes, super heater tubes and tubes or 
pipes of galvanized or stainless steel qualities; 

All wrought Iron, maHeable Iron and wrouglit siteel tid>ular 
bends of any angle, of all qualities and sizes up to and 
Includli^ ek Inches outside diameter, whether galvanized or 
otherwise; 

All wrought Iron, malleable Iron and wrought steel flanges, 
vtiether screwed or unscrewed, and vnhether drilled or undrlUed, 
galvanized or otherwise, suitable for wrought Iron and steel 
tubes, or pipes In sizes up to and including 6i Indies outside 
diameter; and all wrou^t iron and steel tubular poles other 
than galvanized where the greatest diameter of the tubular 
section does not exceed 74 inches outside diameter. 

Proclamation No. 244, as quoted above, was extended to Belgium 
goods in February 1936, and to goods from the United States and 
Canada in March 1936 (Proclamation No. 78, dated March 18, 1936;) 
this was again amended by Proclamation No. 265 of 1936, dated 
October 27, 1936, vhlch provided that the words "welded and close- 
joint electrical conduit tubes" be Inserted before the word 
"boiler" (where it occurs for the first time); and the words "except 
electrical conduit bends" Inserted after the word "otherwise" (where 
It occurs for the second time). The words "malleable Iron" (where 
they appear for the first time) were deleted. 

Under Proclamation No. 232, published in the Gazette on 
November 8, 1935, freight dumping duties were Imposed on steel 
Joists, channels, equal and unequal angles., rails and fishplates 
therefor, bars, flats, tees, galvanized and black sheets, castings 
and tubes. Imported into the Union from Belgium, Luxemburg, Geimny, 
and France. This proclamation was amended on January 17, 1936 



- 60 - 

(Proclamation NO. 17) by deletion of the word "tubes" and substitu- 
tion therefor of the words: 

rods (round or square) and all wrought Iron and wrougit steel 
tubes or pipes, stralgit or bent, uncoated, coated or other- 
wise protected, in sizes up to and Including 6i Inches out- 
side diameter, except boiler tubes, boiler stay tubes, super- 
heater tubes and tubes or pipes of galvanized or stainless 
steel qualities. 

Proclamation No. 43, dated January 10, 1936, and effective on 
the same date, levied exchange dumping duty on elastic and non- 
elastic web belts Imported Into the Union from Japan. Effective on 
January 17, 1936, ordinary dumping duty was Imposed on rubber hose 
Imported from the United Kingdom (Proclamation No. 16 of 1926). 

Proclamation No. 142 of 1936, provided for Imposition after 
June 15th of ordinary dmplng duty on black steel plates and sheets, 
except those exceeding 4 ft. by 12 ft. by 3/16 Inch In any one 
dimension. Deported Into the Union trm the United States of imerlca. 

An ordinary dunplng duty was Imposed on September 25, 1936, on 
rope (other than for drilling, driving and water borings) Imported 
from the Iftiited KingdaoBi. 

Under a new plan provided in Section 9 of Act No. 25 of 1936, 
effective in 1937, dumping duties theretofore s^plied on iron and 
steel products, were repealed, and new duties became effective, in 
addition to regular duties: 

(1) Special duty - If any goods of a class or kind to which 
the established minimm c.i.f . price applies are imported at 
a price less than the established minimua c.i.f. price, there 
ehall be charged on importation, in addition to any other 
duties payable thereon, a special duty equal to the difference 
between the established minimum c.i.f. price and the actual 
c.i.f. price. 

(2) Special sales duty - If any goods of a class or kind to 
which the established minimum c.i.f. price Is applicable are 
sold or offered for sale at any place In the Union for an 
amount which Is less than the established c.i.f. price plus 
landing*, transportation, and delivery charges and the regular 
duties, there shall be charged a special sales duty and the 
established minimum c.i.f. price plus all landing and carry- 
ing charges and the regular duties which shall be payable by 
the Importer of the goods. 

The c.i.f. prices to be fixed for such duty purposes shall be the 
fair average prices of these goods on the world's market, plus 
normal Insurance €tnd freight charges to ports of entry for the 



- 61 - 



Uhion; and special invoice requirements include a full description 
of the goods with weights, measurements and sectional specifica- 
tions. Minlmun c.i.f. prices, effective on March 1, 1937, were 
fixed for entry on certain steel products including: Joists (also 
known as beams,) angles, channels, and tees; flats and special 
shapes (viz., tapered* bars, ovals, and half rounds;) rounds and 
squares, hexagons and triangular bars, and reinforcing rods (also 
known as ferroconcrete bars;) rails and fishplates; plates; galva- 
nized corrugated sheets; galvanized flat sheets; and black sheets 
(aJso known as plain sheets). 

Proclamations numbered 57 and 58 of 1937, published In the 
Gazette on April 9, 1937, provided that ordinary and sales dumping 
duties .should continue to be Imposed on rubber hose Imported from 
the United States of America. The maximum duties leviable on these 
products were Increased from 25% to 50% of the value of the goods. 
These proclamations canceled and replaced the duties levied on 
American rubber hose in 1924. 

Proclamation No. 212 of 1937, effective on October 22, 1937, 
provided for the Imposition of an ordinary dumping duty on cement 
(other than water-proofed Portland cement, colored cement mixture, 
white Portland cement, red rapid-hardened Portland cment and 
colored Portland cement) Imported into the Union from Belgium, 
Canada, Denmark, Estonia, Germany, Holland, Italy, Japan, the 
Province of Mozambique, Norway, Sweden, the United Kingdom and 
Yugoslavia. This proclamation canceled Proclamations numbered 109 
and 233 of 1926, 81 and 283 of 1927, 53 of 1931, and 267 of 1933, 
which had Imposed an ordinary dumping duty on all kinds of cement 
Imported into the lAilon from these countries* 

PreelaiBatlon No. 8 of 1938, Issued on Decanber 30, 19^, pro- 
vided f ot* duaplng uUty on bacon and ham produced or manufactured in 
Estonia aod imported into the Uu!.?!} ; 6Qml to the amount of the 
bounty or subsidy granted to the manufacturers of ttet country, but 
not to exceed 50 per cent ad valorem. 



SPAIN 

A decree dated March 10, 1934 (Gaceta de Madrid, March 13, 
1934) prescribed measures for counteracting dumping In Spain.!/ 
Dumping Is described (Article 1) as: 

(1) The sale In Spanish territory of foreign goods at a. price 
lower than that ruling In the country of production, whatever 

be the cause of this lower price, and especially irtdien It arises 
from any of the following causes: 



1. Prior measures In case of bounty dumping (1906) and exchange 
dumping (1921 and 1931) were covered In our 1934 report. 



62 - 



(a) When the goods enjoy exptnrt bounties granted by the 
state or otherwise. 

(b) W»n, owing to a faulty classlfloatlon In the Custons 
Tariff, the primary materials pay on Import into Spain 
hl«)»r duties than the finished products. 

(c) When goods sold In Spain at reduced prices by means of 
agreements betvieen producers, brought about by International 
coiblaee, such as cartels, ententes, trusts, etc. 

IZ) The sale in Spanish territory of. foreign goods at prices 
below the normal world prices, when these lower prices are 
due to: 

(a) Production by forced or prison labour. 

(b) The fact that In the production of the goods the inter- 
national regulations in respect of social matters and 
especially as regards wages and working conditions have not 
been observed. 

The methods which the Oovemment may adopt, under this act, 
(Article E) are: 

(1) The raising of customs duties on goods in which dunping 
has taken place, either by creating new duties or by establish- 
ing co-efficients of increase, fixed or variable. When goods 
which are being dumped are classified under the same tariff 
number as others which are not, the Government is authorized 

to sub-divide the tariff heading in order that the Increased 
duty may be applicable to dumped goods only. 

(2) The establishment of protective Quotas within the limits 
deemed necessary to defend national Interests. 

IS) Tu» prohibition of Import. 

An Increase In duty on files, certain ethylene derivatives and 
toothbru^es. Imposed In April 1934, (Decree dated April 24, 1934, 
pit^llfllwd In Oaceta de Madrid, April 26, 1934) was said to be for 
the purpose of correcting dumping. 

A decree dated May 23, 1934 (published in Gaceta de Madrid, 
May 25, 1934) provided that increased customs duties were not to be 
applied to goods manufactured in countries which, upon decision of 
the Government, were declared not to be dumping such goods: 

Article 1. Those countries which on the decision of the 
Government are declared not to be "dumping" in Spanish terri- 
tory the goods in question will be exempted from the lncre€ised 



- 63 - 



tariff duties which for purposes of antidumping were agreed 
upon as a result of paragraph 1 of Article 2 of the Decree 
published In the Madrid Gazette of March 13 and from any other 
increases of duties which may be made In the future under 
similar clrcunstances. 

Article 2. Such a declaration of exemption, so far as it 
refers to the application of tariff duties fixed for "antl- 
dtmplng" purposes, will be subject to t2ie consideration of 
the Intermlnlsterlal CoBmlsslon of Forel^ Trade, w^lch Is 
an Indispensable preliminary to obtaining the approval of 
the Oovemnent. 

Article 3. Goods v^lch are subject to an *antlduaplng" rate 
of Customs duty must. If they Intend to Justify their right 
to exclusion from "antidumping" treatment when they proceed 
frcm countries not affected by the bluest rates of duties, 
be accompanied by the corresponding certificate of origin. 
Unless this Is done, the hl^er rate of payment will be applied. 

Iftider the decree of May 23, 1934, a nuaber of exemptions from 
antidumping duties were granted* in 1934, on files suid rasps from 
Great Britain, France, Switzerland, the United States of America, 
Czechoslovakia, Austria, and Italy; on toothbrushes frcxn 
Czechoslovakia, France, the United Kingdom, Italy, Switzerland, and 
Japan; and on ethylene products from France, Italy and Switzerland. 



TURKEY 

The Treaty of Coinmerce and Navigation entered Into by Turkey 
with Japan, which was signed on October 11, 1930, ratifications 
exchanged on March 20, 1934, and finally came into force on April 19, 
1934, Included in its Protocol a provision to the effect that the 
treaty shall not be held to prevent the parties from taking anti- 
dumping measures.!/ 



f Measures to prevent bounty dumping in the Tariff Act of 1929, 
were covered In our 1934 report. 



APPENDIX 



EXUIfilT 1 

Excerpts from tlie U. S. Bsvt&ua Act ot Septcnber 8, 1916 

38 Stat. 798 



Title VIII. imralr Conpetltlon 

Sec. 800. That when used In this title the tezm "person* 
inelMies partnerships, corporaticns and associations. 

Sec. 801. That it shall be unlanrful for any person Importing 
or airaisting in Importing any articles from any foreign country into 
the Uhited States, ccnmonly and systematically to Import, sell, or 
cause to be imported or sold such articles within the Uhited States 
at a price sit>stantially less than the actual market value or whole- 
sale price of such articles*, at the time of exportation to the 
Uhited States, in the principal mazicets of the country of their pro- 
duction, or of other foreign countries to which they are conmonly 
exported, after adding to such market value or wholesale price, 
freight, duty, and other charges and expenses necessarily Incident 
to the importation and sale thereof In the Uhited States: Provided , 
That such act or acts be done with the Intent of destroying or Injur- 
ing an industry in the Uhited States, or of preventing the establish- 
ment of an industry in the Itoited States, or of restraining or 
monopolizing any part of trade and coomerce In such articles In the 
lAiited States. 

Any person who violates or combines or conspires with any other 
person to violate this section is guilty of a misdemeanor, and, on 
conviction thereof, shall be punished by a fine not exceeding $5,000, 
or Imprisonment not exceeding 1 year, or both. In the discretion of 
the court. 

Any person Injured In his business or property by reason of any 
violation of, or combination or conspiracy to violate, this section, 
may sue therefor In the district court of the United States for the 
district In which the defendant resides or Is found or has an agent, 
without respect to the amount In controversy, and shall recover 
threefold the damages sustained, and the cost of the suit. Including 
a reasonable attorney's fee. 

- 64 - 



- 66 - 



The foregoing provisions shall not be construed to deprive the 
proper State courts of Jurisdiction in actions for damages there- 
under. 

U.-60A 



EXHIBIT E 



Antidumping Provisions of the U. S. Emergency Tftrlff Act 

May 27, 

42 Stat 

Title II. AntldUB^lng 

Sec. 201. Dumping Investigation : (a) That vihenever the 
Secretary of the Treasury (hereinafter In this Act called the 
"Secretary"), after such Investigation as he deems necessary, finds 
that an Industry in the United States Is being or Is likely to be 
Injured, or is prevented frcM being established, by reason of the 
importation into the United States of a class or kind of foreign 
merchandise, and that merchandise of such class or kind is being 
sold or is likely to be sold in the United States or elsewhere at 
less than its fair value, then he shall make such finding public to 
the extent he deems necessary, together with a description of the 
clatjs or kind of merchandise to which it applies in such detail as 
may be necessaiy for the guidance of the appraising officers. 

(b) Whenever, in the case of any imported merchanaise of a 
class or kind as to which the Secretary has not so made public a 
finding, the appraiser or person acting as appraiser has reason to 
believe or suspect, from the Invoice or other papers or from infor- 
mation presented to him, that the purchase price is less, or that 
the exporter's sales price is less or likely to be less, than the 
foreign market value (or. In the absence of such value, than the 
cost of production) he shall forthwith, under regulations prescribed 
by the Secretary, notify the Secretary of such fact and withhold his 
appraisement report to the collector as to such merchandise until 
the further order of the Secretary, or until the Secretary has made 
public a finding as provided In subdivision (a) In regard to such 
merchandise. 

Sec. 202. Special dumping duty ; (a) That in the case of all 
Imported merchandise, whether dutiable or free of duty, of a class 
or kind as to v^lch the Secretary has made public a finding as pro- 
vided In section 201, and as to liilch the appraiser or person act- 
ing as appraiser has made no appraisement report to the collector 
before sucm finding has been so made public, if the purchase price 
or the exp(»*tw*8 sales price Is less than the foreign market value 
(or. In the absence of such value, than the cost of production) 
^re shall be levied, collected, and paid. In addition to the duties 
impeded thereon by law, a special dumping duty In an amount equal to 
8u^ difference. 




(b) If it is established to the satisfaction of the appraising 

officers that the amount of such difference between the purchase 
price and the foreign market value is wholly or partly due to the 
fact that the wholesale quantities, in which such or similar mer- 
chandise is sold or freely offered for sale to all purchasers for 
exportation to the United States in the ordinary course of trade, 
are greater than the wholesale quantities In which such or similar 
merchandise is sold or freely offered for sale to all purchasers In 
the principal markets of the country of exportation in the ordinary 
course of trade for home consumption (or, if not so sold or offered 
for sale for home consumption, then for exportation to countries 
other than the United States), then due allowance shall be made 
therefor in determining the foreign-market value for the purposes of 
this section. 

(c) If It is established to the satisfaction of the appraising 
officers that the amount of such difference between the exporter's 
sales price and the foreign-market value is wholly or partly due to 
the fact that the wholesale quantities, in which such or similar 
merchandise Is sold or freely offered for sale to all purchasers In 
the principal markets of the United States in the ordinary course of 
trade are greater than the vmolesale quantities In which sui^ or 
similar merchaiKilse Is sold or freely offered for sale to all pur- 
(diaeers in the principal markets of the country of exportation In 
the ordinary course of trade for home consimiptlon (or. If not so 
sold or of f ered for sale for. home consumption, then for exportation 
to countries otSier than the United States ) , then due allowance shall 
be made therefor in detemlnli^ the foreign-market valu» for the pur- 
poses of this sectltei. 

Sec. 205. Purchase price; That for the purposes of this title, 
the purchase price of Imported merchandise shall be the price at 
viftilch Such merchandise has been purchased or agreed to be purchased, 
prior to the time of exportation, by the person by v^om or for whose 
account the merchandise is imported, plus, when not Included in such 
price, the cost of all containers and coverings and all other costs, 
charges, and expenses incident to placing the merchandise in condi- 
tion, packed ready for shipment to the United States, less the 
amount. If any. Included In such price, attributable to any addi- 
tional costs, charges, and expenses, and United States Import duties, 
incident to bringing the merchandise from the place of shipment in 
the country of exportation to the place of delivery In the 
United States; and plus the amount. If not Included In such price, of 
any export tax Imposed by the country of exportation on the exporta- 
tion of the merchandise to the United States; and plus the amount of 
any Import duties Imposed by the country of exportation which have 
been rebated, or which have not been collected, by reason of the 
exportation of the merchandise to the United States; and plus the 
amount of any taxes imposed in the country of exportation upon the 
manufacturer, producer, or seller, in respect to the manufacture, 
production, or sale of the merchandise, which have been rebated, or 



- 68 - 



vrtilch l»ve not been collected, by reason of the exportation of the 
■erchandlse to the Uhlted States. 

Sec. a04. ExDorter^s sales price; That for the purpose of 
this title the exporter's sales price of imported Merchandise shall 
be the price at which such merchandise is sold or agreed to be sold 
m the United States, before or after the time of importation, by or 

for the account of the exporter, plus, when not included in suc^ 
price, the cost of all containers and coverings and aU other costs, 
charges, and expenses Incident to placing the merchandise in condi- 
tion packed ready for shipment to the United States, less (1> the 
amount. If any, Included In such price, attributed to any additional 
costs, charges, and expenses, and United States import duties, inci- 
dent to bringing the merchandise from the place of shipment in the 
country of exportation to the place of delivery In the Itoited States, 
(2) the amount of the commissions, if any, for selling in the 
United States the particular merchandise under consideration, (3) an 
amount equal to the expenses, if any, generally Incurred by or for 
the account of the exporter in the United States in selling Identical 
or substantially identical merchandise, and (4) the amount of any . 
export tax Imposed by the country of exportation on the exportation 
of the merchandise to the United States; and plus the amount of any 
import duties imposed by the country of exportation which have been 
rebated, or v^lch have not been collected, by reason of the exporta- 
tion of the merchandise to the United States; and plus the amount of 
'any taxes Imposed In the country of exportation upon the manufacturer, 
producer, or seller in respect of the manufacture, production, or sale 
of the merchandise, which have been rebated, or which have not been 
collected, by i^ason of the exportation of the merchandise to the 
Uhited States. 

^c. a06. Foreign market value; That for the purposes of this 
title the foreign max^et value of imported merchandise shall be the 
price, at the time of exportation of such merchandise to the 
Uhited States, at which such or similar merchandise is sold or freely 
offered for sale to all purcaiasers in the principal markets of the 
country from which. exported, in the usual wholesale quantities and in 
thB ordinary cotrse of trade for heme oonsww^tion (or, if not so soj.d 
or offered for sale for home consumption, Uien for exportation to 
countries other than the Uhited States), plus, when not Included in 
such price, the cost of aU ccmtainers and coverings and all other 
costs, charges, and expwises incid«[it to placing the mer<aiandise in 
condition packed ready for ahipoent to tJie Uhited States, except 
that in the case of merchandise purchased or agreed to be punaiased 
by the person by whcxn or for whose account the merchandise is 
imported, prior to the time of exportation, the foreign BW^et value 
shall be ascertained as of the date of such purchase or agreement to 
purchase. In the ascertainment of foreign martcet value for the pur- 
poses of this title no pretended sale or offer for sale* «ij "®J?r* 
or offer for sale Intended to establish a fictitious mamt. Shall 
be taken into account. 



69 - 



Sec. 206. CoBt of production; That for the purposes of this 
title the cost of producticm of Imported merchandise shall be the 
sum of — 

(1) The cost of materials of , and of fabrication, manipula- 
tion, or other process employed in manufacturing or producing, iden- 
tical or substantially identical merchandise, at a time preceding 
the date of shipment of the particular merchandise under considera- 
tion which would ordinarily pezmit the manufacture or production of 
the particular merchandise under consideration in the usual course 
of business; 

(2) The usual general expenses (not less than 10 per centum 
of suc^.cost) in the case of identical or substantially identical 
merchandise; 

(3) The cost of all containers and coverings, and all other 
costs, charges, and expenses incident to placing the particular mer- 
chandise under consideration in condition, packed ready for shipment 
to the United States; and 

(4) An addition for profit (not less than 8 per centum of the 
sum of the amounts found under paragraphs (1) and (2) equal to the 
profit which is ordinarily added, in the case of merchandise of the 
same general character as the particular merchandise under considera- 
tion, by manufacturers or producers in the country of manufacture or 
production who are engaged in the same general trade as the manu- 
facturer or producer of the particular merchandise under considera- 
tion. 

Sec. 207. Exporter : That for the purposes of this title the 
exporter of imported merchandise shall be the person by whom or for 

Whose ^account the merchandise is Imported into the United States: 

(1) If such person is the agent or principal of the exporter, 
manufacturer, or producer; or 

(2) If such person owns or controls, directly or indirectly, 
through stock ownership or control or otherwise, any interest in 
the business of the exporter, manufacturer, or producer; <»r 

(3) If the exporter, manufacturer, or producer owns or con* 
trols, directly or Indirectly, through stock ownership or control 
or otherwise, any interest in any business conducted by 8u<^ person; 
or 

• 

(4) . If any person or per^ns, jointly or severally, directly 
or indirectly, Uurouc^ stock ownership or control or otherwise, own 
or control in the aggregate 20 per centum or more of the voting 
power or control in the business carried on by the person by whom or 
for whose account the merchandise is imported into the Uhited States, 



- 70 - 



and also 20 per centum or more of such power or control In the busi- 
ness of the exporter, manufacturer, or producer. 

Sec. 208. Oaths and bonds on entry : That In the case of all 
Imported merchandise, whether dutiable or free of duty, of a class 
or kind as to which the Secretary has made public a finding as pro- 
vided In section 201 and delivery of \Milch has not been made by the 
collector before such finding has been so made public, unless the 
person by whom or for whose account such merchandise Is Imported 
makes oath before the collector, under regulations prescribed by the 
Secretary, that he Is not an exporter, or unless such person declares 
under oath at the time of entry, under regulations prescribed by the 
Secretary, the exporter *s sales price of such merchandise. It shall 
be unlawful for the collector to deliver the merchandise until such 
person has made oath before the collector, under regulations pre- 
scribed by the Secretary, that the merchandise has not been sold or 
agreed to be sold by such person, and has given bond to the collec- 
tor, under regulations prescribed by the Secretary, with sureties 
approved by the collector, in an amount equal to the estimated value 
of the merchandise, conditioned: (1) That he will report to the 
collector the eiqporter's sales price of the merchandise within thirty 
days after such merchandise has been sold or agreed to be sold in the 
Utolted States; (Z) that he will pay on donand from the collector the 
asount of special dunplng duty. If any. Imposed by this title upon 
such merchandise, and (3) that he will furnish to the collector such 
information as may be in his possession and as may be necessary for 
the ascertainment of sw^ duty, and win keep sudi records as to the 
sale of such nerchandlse as the Secretary may by regulation pre- 
sorlbe. 

Sec. 209. Duties of appraisers ! That In the case of all 
Imported Mrchandlse, vbether dutiable or free of duty, of a class 
or kind as to which the Secretary has made pi^llc a finding as pro- 
vided m section 201, and as to which the appraiser or person act- 
ing as appraiser has made no appraisement report to the collector 
before such finding has been so made pit)llc. It shall be th^ duty of 
each appraiser or person acting as appraiser, by all reasonable ways 
and means to ascertain, estimate, and appraise (any Invoice or affi- 
davit thereto or statement of cost of production to the contrary 
notwithstanding) and report to the collector the foreign market value 
or the cost of production, as the case may be, the purchase price, 
and the exporter's sales price, and any other facts which the 
Secretary may deem necessary for the purposes of this title. 

Sec. 210. Appeals and protests: That for the purposes of this 
title the determination of the appraiser or person acting as 
appraiser as to the foreign market value or the cost of production, 
as the case may be, the purchase price, and the exporter's sales 
price, and the action of the collector In assessing special dumping 
duty, shall have the same force and effect and be subject to the 
same right of appeal and protest, under the same conditions and 



- 71 - 



subject to the same limitations; and the general appraisers, the 
Board of General Appraisers, and the Court of Customs Appeals shall 
have the same Jurisdiction, powers, and duties in connection with 
such appeals and protests as in the case of appeals and protests 
relating to customs duties under existing law. 

Sec. 211. Drawbacks: That the special dumping duty imposed by 
this title shall be treated in all respects as regular customs 
duties within the meaning of all laws relating to the drawback of 
cuBtoBS duties. 



Sec. 212. Short title; That this title may be cited as the 
"Antldunplng Act of 1981." 



EXHIBIT 3 



Excerpts from the U. S. Tariff Act of June 17, 1930 

46 Stat. 590 

Bftc. 303. Countervailing duties: Whenever any country, 
dependency, colony, province, or other political subdivision of 
government, person, partnership, association, cartel, or corporation 
shall pay or bestow, directly or Indirectly, any bounty or grant 
upon the manufacture or production or export of any article or mer- 
chandise manufactured or produced In such country, dependency, 
colony, province, or other political subdivision of government, and 
such article or merchandise Is dutiable under the provisions of this 
Act, then upon the Importation of any such article or merchandise 
Into the United States, whether the same shall be Imported directly 
trm the coimtry of production or otherwise, and \Miether such article 
or nerdiandlse Is Imported in the same condition as when exported 
from the countiy of production or has been changed In condition by 
remanufacture or otSierwlse, there shall be levied and paid, in all 
such cases. In addition to the duties otherwise Imposed by this Act, 
an additional duty equal to the net amount of such bounty or grant, 
hovtever the saoM be paid or bestowed. The Secretary of the Treasury 
shall from tliae to time ascertain and determine, or estimate, the 
net amount of each such bounty or grant, and shall declare the net 
amount so detemlned or estimated. The Secretary of the Treasury 
sball make all regulatl(ms he may deem necessary for the Identifica- 
tion of such articles and merchandise and for the assessment and 
collection of such additional duties. 

♦ ♦ ♦ • ♦ 

Sec. 307. ConylctHMlde goods- importation prohibited; All 
goods, wares, articles, and merchandise mined, produced, or manu- 
factured wholly or In part In any foreign country by convict laHor 
or/and forced labor or/and Indentured labor under penal sanctions 

shall not be entitled to entry at any of the ports of the 
United States, and the Importation thereof Is hereby prohibited, and 
the Secretary of the Treasury Is authorized and directed to pre- 
scribe such regulations as may be necessary for the enforcement of 
this provision. The provisions of this section relating to goods, 
wares, articles, and merchandise mined, produced, or manufactured by 
forced labor or/and Indentured labor, shall take effect on 
January 1, 1932; but In no case shall such provision be applicable 
to goods, wares, articles, or merchandise so mined, produced, or 
manufactured which are not mined, produced, or manufactured In such 
quantities In the United States as to meet the consumptive demands 
of the United States. 



- 73 - 

"Forced labor", as herein used, shall mean all work or service 
which Is exacted from any person under the menace of any penalty for 
Its nonperfonaance and for which the worker does not offer himself 
voluntarily. 

• * • • 

Part II. Ifolted States Tariff Connlsslon 

Sec. 330. Organization of the Qonmlsslon: • * * 
« * « • 

_^8toc. 332. Investlgatlcms. 

(a) Investigations and Reports. -It ahall be the duty of the 
CQomlsslon to Investigate the administration and fiscal and Indus- 
trial effects of the customs laws of this country now in force or 
which may be hereafter enacted, the relations between the rates of 
duty on raw materials and finished or partly finished products, the 
effects of ad valorem and specific duties and of compound specific 
and ad valorem duties, all questions relative to the arrangement 

of schedules and classification oiT articles In the several schedules 
of the customs law, and In general, to Investigate the operation of 
customs laws. Including their relation to the Federal revenues, 
their effect upon the Industries and labor of the country, and to j 
submit reports of Its Investigations as hereafter provided. 

(b) Investigations of Tariff Relations. -The commission shall 
have power to investigate the tariff relations between the 

United States and foreign countries, commercial treaties, preferen- 
tial provisions, economic alliances, the effect of export bounties 
and preferential transportation rates, the volume of importations 
compared with domestic production and consumption, and conditions, 
causes, and effects relating to competition of foreign Industries 
with those of the United States, Including dumping and cost of pro- 
duction. 

(c) Investigation of Paris Economy Pact. -The commission shall 
have power to Investigate the Paris Economy Pact and similar organi- 
zations and arrangements In Europe. 

(d) Information for President and Congress. -In or(ter that the 
President and the Congress may secure Information and assistance. 
It shall be the duty of taie conilsslcm to- 

(1) Ascertain converslcm costs and costs of production In 
the principal growing, producing, or manufacturing baiters of 
the Uhltfd States of articles of the United States, mhemwr In 
the opinion of the comilsslon It Is practicable: 



-Ti- 
le) Ascertain conversion costs and costs of production In 
the principal growing, producing, or manufacturing centers of 
foreign countries of articles Imported Into the United States, 
vdienerer In tlie opinion of tlie ccomlsslon sudi eomrerslon costs 
or costs of production are necessary for conqparlson with eon- 
rerslon coats or costs of production in the Uhltad States and 
can he reasonahly ascertained; 

(3) Select and describe articles which are r^resentatlTe 
of the classes or kinds of articles Imported into the 

Uhlted States and itileh are similar to or conparahle with articles 
of the Uhlted States; select and describe articles of the 
Uhlted States similar to or comparable with such Imported articles 
and obtain and file samples of curtlcles so selected, vftieneTer the 
ccnmlsslon deems It advisable; 

(4) Ascertain import costs of such representative articles 
80 sale c ted; 

(5) Ascertain the grower's, producer's, or manufacturer's 
selling prices in the principal growing, producing, or manufac- 
turing centers of the United States of the articles of the 
United States so selected; and 

(6) Ascertain all other facts which will show the differ- 
ences in or which affect competition between articles of the 
United States and imported articles In the principal markets 
of the United States. 

(e) Definitions. -When used In this subdivision and in sub- 
division (d) — 

(1) The term "article" includes any ccamiodlty, whether 
grown, produced, fabricated, manipulated,, or manufactured; 

(2) The term "import cost" means the price at which an 
article is freely offered for sale in the ordinary course of 
trade in the usual wholesale quantities for exportation to 
the Uhlted States pliio, v^en not Included In such price, all 
necessary expenses, exclusive of customs duties, of bringing 
sui^ Iworted article to the United States. 

♦ • • ♦ • 

Sec. 384. Cooperation with other agencies. 

Ihe commission shall In appropriate matters act In conjunction 
and cooperation with the Treasury Department, the Department of 
Ooomerce, the Federal Trade Gkmnlssion, or any other departments, or 
iwtopendent establlshaents of the Goveriment, and such depart3nents 
and li^ependent establishments of the Gk)vernment shall cooperate 



78 



fully with the comlsslon for the purposes of aiding and assisting 
m Its work, and, when directed by the President, siiall fumi^ to 
the conmlssion, on Its request, all records, papers, and inf ozma- 
tioii in tlieir possession relating to any of the sti>Jects of investi- 
gation by the commission and shall detail, frcm time to time, such 
officials and employees to said conaiseion as he uy direct. 

• • • • 

Sec. 336.1/ 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 Act intended, the 
commission (l) upon request of the President, or (2) upon resolu- 
tlcm 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 

rof any domestic article and of any like or similar foreign article. 
In the course of the investigation the commission shall hold hear- 
ings and give reasonable public notice thereof, and shall afford 
reasonable opportimity for parties interested to be present, to pro- 
duce evidence, and to be heard at such hearings. The commission is 
authorized to adopt such reasonable procedure and rules and regula- 
tions as it deems necessary to execute its functions under this sec- 
tion. 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 vrtien produced in the 
principal competing country, the conmission 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 
statute. 

(b) Qiange to American selling price. -If the comiisslon finds 
upon any such Irarestlgaticwi that such differences can not be 
equalized by proceeding as hereinbefore provided, it shall so state 
in Its report to the President and shall specify therein such ad 
valorem rates of duty based upon the Jmerlcan selling price (as 
defined in section 402 (g)) of the dcmestlc article, as it finds 
shown by the investigation to be necessary to equalize such 

h see Sec. 2, Trade Agreements Act, 1934, which states that Sec. 
336 of the Act of 1930 shall not apply to any article with 
respect to the Importation of which, a foreign trade agre^aent 
has been ccmcluded. 



- 76 - 

dlf f erencjes . In no case shall the total decrease of such rates of 
duty exceed 50 per centum of the rates expressly fixed by statute, 
and no such rate shall he Increased. 

(c) Proclamation by the President. -The President shall by proc- 
lamation approve the rates of duty and chemges in classification and 
In basis of value 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 ccntission to be necess€iry to 
equalize such differences in costs of production. 

(d) Effective date of rates and Changes. -Conmencing thirty days 
after the date of any presidmtial proclamation of approval the 
increased or d.ecreased rates of duty and changes in classification 
or in basis of value specified in the i^ort of the ccramlsslon shall 
take effect* 

(e) Ascertainment of differences in costs of production. -in 
sseertaining under this section the differences in costs of produc- 
tion, the ccamissiCHi 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) trans- 
portation 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 supple- 
mental thereto, the weighted average of the Invoice prices or 
values for a representative period and/or the average whole- 
sale 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 maiicets of 
the United States for the article; (C) other relevant factors 
that constitute an advantage or disadvantage in ccmpetition, 
including advantages granted to the foreign producers by a 
government, person, partnership, corporation, or association 
in a foreign country. 



- 77 - 



Sec. 337. Unfair practices in import trade. 

(a) lAifair methods of ccmpetiticm declared unlavfful. -Unfair 
methods of competition and unfair acts in the iii5)ortation of 
articles Into the Uhited States, or in the sale by the omer, 
importer, consignee, or agent of eitiier, the effect or tendency of 
ftiich is to destroy or substantially injure an industry, efficiently 
and economically operated, in the Iftiited States, or to prevent the 
establislmient of such an industry, or to restrain or monopolize 
trade and commerce in the Itoited States, are hereby declared unlaw- 
ful, and when found by the President to exist shall be dealt with, 
in addition to any other provisions of law, as hereinafter provided. 

(b) Investigations of violations by commission. -To assist the 
PresidOlt in making any decisions under this section the commission 
is hereby authorized to investigate any alleged violation hereof on 
complaint under oath or upon its initiative. 

(c) Hearings and review. -The commission shall make such investl 
gatlon under and in accordance with such rules as it may promulgate 
and give such notice and afford such hearing, and when deemed proper 
by the conmlssion such rehearing, with opportunity to offer evidence 
oral or written, as it may deem sufficient for a full presentation 
of the facts Involved in such investigation. The testimony in every 
such Investigation shall be reduced to writing, and a transcript 
thereof with the findings and recommendation of the commission shall 
be the official record of the proceedings and findings in the case, 
and in any case where the findings in such investigation show a 
violation of this section, a copy of the findings shall be promptly 
mailed or delivered to the importer or consignee of such articles. 
Such findings, if supported by evidence, shall be conclusive, except 
that a rehearing may be granted by the commission and except that, 
within such time after said findings are made and In such manner as 
appeals may be taken from decisions of the United States Customs 
Court, an appeal may be taken from said findings upon a question or 
questions of law only to the United States Court of Customs and 
Patent Appeals by the Importer or consignee of such articles. If it 
shall be shown to the satisfaction of said court that further evi- 
dence should be taken, and that there were reasonable grounds for 
the failure to adduce su<ai evidence in the proceedings before the 
commission, said court may order such additional evidence to be 
taken before the ccnmisslon in such manner and upon sucai terns aad 
conditions as to the court may seem proper. The ccmmilssion may 
modify its findings as to the facts or make new findings by reason 
Of additional evidence, wdiich. If supported by evidence, shall be 
COTiclusive as to the facts except that within such time and in such 
manner an appeal may be taken as aforesaid upon a cjuestlon or ques- 
tiOTs of law only. The Judgm^it of said court shall be final. 



78 - 



(d) Transmission of findings to President .-The final findings 
of the ccxmnlsslon shall be transmitted with the record to the 
President. 

(e) Exclusion of articles frcm entry. -Whenever the existence of 
any such unfair method or act shall be established to the satisfac- 
tion of the President he shall direct that the articles concerned in 
such unfair methods or acts, Imported by any person violating the 
provisions of this Act, shall be excluded from entry Into the 
United States, and upon Infonnatlon of such action by the President, 
the Secretary of the Treasury shall, through the proper officers, 
refuse such entry. The decision of the President shall be conclu- 
sive. 

• • • • • 

Sec. 338. Discrimination by foreign countries, 

(a) Additional duties. -The President when he finds that the 
public interest will be served thereby shall by proolaniatlon specify 
and declare new or additional duties as hereinafter provided upon 
articles wholly or in part ttie growth or product of, or imported in 
a vessel of, any foreign country whenever he shall find as a fact 

such country* 

(1) Biposas, directly or indirectly, upon the disposition 
in or transportation in transit through or reexportation frcB 
such countiy of any article wholly or in part the growth, or 
product of the Iftilted States any unreasonable charge, exaction, 
regulation, or lliftltatlon which is not equally enforced iQKm 
the like articles of every foreign countxy; or 

(2) Discriminates in fact against the connerce of the 
Uhlted States, directly or indirectly, by law or a<tailnlstra- 
tlve regulation or practice, by or in respect to any customs, 
tonncLge, or port duty, fee, charge, exaction, classification, 
regulation, condition, restriction, or prohibition, in such 
manner as to place tha comerce of the Iftilted States at a 
disadvantage ccaapared with the coomerce of any foreign country. 

(b) Exclusion from Importation. -If at any time the President 
shall find It to be a fact that any foreign country has not only 
discriminated against the commerce of the United States, as afore- 
said, but has, after the Issuance of a proclamation as authorized 
In subdivision (a) of this section, maintained, or Increased Its 
said discriminations against the commerce of the United States, the 
President Is hereby authorized. If he deems It consistent with the 
Interests of the United States, to Issue a further proclamation 
directing that such products of said country or such articles 
Imported In Its vessels as he shall deem consistent with the public 
interests shall be excluded from Importation into the United States. 



- 79 - 

(c) Application of proclamation.-Any prodaaatlon Issued bar tlia 
President under the authority of this section ahall, if he deems It 
consistent with the interests of the Uhlted States, extend to the 
wiiole of any tareim country or may be confined to any sil>dlvi8lmi 
or subdivisions thereof;, and the President ^all, vtienever he deems 
the pulAlc Interests require, suspend, revoke, supplement, or amid 
my suOi proclamation. 

(d) Duties to offset conmercial dlsadvantagesv-^enever the 
President shall find as a fact that any foreign country places any 
burden or disadvantage upon t^e commerce of the IMlted States by any 
of Uie unequal Impositions or discriminations aforesaid, he shall, 
wAien he finds that the public Interest will be served thereby, by 
proclanation specify and declare such new or additional rate or rates 
of duty as he shall detemine will offset such burden or disadvantage, 
not to exceed 50 per centum ad valorem or its equivalent, on any 
products of, or on articles imported in a vessel of, such foreign 
country; and thirty days after the date of such proclamation there 
shall be levied, collected, and paid upon the articles enumerated in 
such proclamation v\dien Imported Into the United States from such 
foreign country such new or additional rate or rates of duty; or, 

in case of articles declared subject to exclusion from Importation 
into the United States under the provisions of subdivision (b) of 
this section, such articles shall be excluded from Importation. 

(e) Duties to offset benefits to third country. -Whenever the 
President shall find as a fact that any foreign countiy Imposes any 
unequal imposition or discrimination as aforesaid upon the coiimierce 
of the United States, or that any benefits accrue or are likely to 
accrue to any industry in any foreign country by reason of any such 
imposition or discrimination imposed by any foreign country other 
than the foreign country in which such industry is located, and 
whenever the President shall determine that any new or additional 
rate or rates of duty or any prohibition hereinbefore provided for 
do not effectively remove such imposition or discrLnination and that 
any benefits from any such imposition or discrimination accrue or 
are likely to accrue to any industry in any foreign country, he 
shall, when he finds that the public interest will be served thereby, 
by proclamation specify and declare such new or additional rate or 
rates of duty upon the articles wholly or in part the growth or prod- 
uct of any such industry as he shall detennlne will offset such 
benefits, not to exceed 50 per centum ad valorem or its equlvadent, 
upon importation from any foreign country into the United States of 
such articles; and on and after thirty days after the date of any 
such proclamation such new or additional rate or rates of duty so 
specified and declared In such proclamation shall be levied, 
collected, and paid upon such articles. 

(f ) Forfeiture of articles. -All articles imported contrary to 
the provisions of this section shall be forfeited to the 

lAiited States and shall be liable to be seized, prosecuted, and 



- 80 - 

eondwiid In llkB nanner and unlor the same regulations, restrlc- 
tians, and proTislons as may from time to time be established for 
tHe reemzy, collection, distribution, and remission of for- 
feitures to the Itoited States by the several revenue laws. Whenever 
the provisions of this Act filial 1 be applicable to importations into 
ttm Iftiited States of articles vtiolly or in part the groirth or prod- 
uct of any foreign country, they shall be appllcalAe thereto whether 
such articles are imported directly or indirectly* 

(g) Ascertainment by coonlsslon of discriminations. -It shall 

be the duty of the ccramlsslon to ascertain and at all times to be 
Infonned whether any of the discriminations against the conmerce of 
the United States enumerated in subdivisions (a), (b), and (e) of 
this section are practiced by any country; and If and when such dis- 
criminatory acts are disclosed, It shall be the duty of the com- 
mission to bring the matter to the attention of the President, 
together with reconmendatlons. 

(h) Rules and regulations of Secretary of Treasury . -The 
Secretary of the Treasury with the approval of the President shall 
make such rules and regulations as are necessary for the execution 
of such proclamations as the President may Issue In accordance with 
the provisions of this sectlcxi. 

(1) Definition. -When used in this section, 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), within which separate tariff 
rates or separate regulations of commerce are enforced. 

IX-68S 



81 



EXHIBIT 4 

Excerpts from the U. S. Agricultural Adjustment Act of 19331/ 
as amended In 1935§/ further amended by the Soil 
Conservation and Domestic Allotment Act of 1936^/ and 
aff Imed by the Agricultural Marketing Agreement Act of 1937^ 



Imports 

Sec. 22. (a) Whenever the President has reason to believe that 
any one or more articles are being Imported into the United States 
under such condltlcHis and in sufficient quantities as to render or 
tend to render Ineffective or materially interfere with any program 
or operation undertaken, or to reduce substantially the amount of 
any product processed in the United States from any commodity sub- 
ject to and with respect to which any program is in operation, under 
this title or The Soil Conservation and Domestic Allotment Act, as 
amended, he shall cause an immediate investigation to be made by the 
United States Tariff Commission, which shall give precedence to 
Investigations under this section to determine such facts. Such 
investigation shall be made after due notice and opportunity for 
hearing to interested parties and shall be conducted subject to such 
regulations as the President shall specify. 

(b) If, on the basis of such investigation and report to him of 
findings and recommendations made In connection therewith, the 
President finds the existence of such facts, he shall by proclamaticm 
impose such limitations on the total qimntltles of any article or 
articles whidi may be imported as he finds and declares ^ovm by suchr 
investigation to be necessaiy to prescribe in order that the entiy of 
such article or articles will not render or tend to render ineff^- 
tive or materially interfere with any program or operation underUOcen, 
or will not reduce substantially the amount of any product processed 
in the Iftiited States from any coniodity subject to and with respect 
to whl(di any program is in operation, under this title or the Soil 
Conservation and Domestic Allotment Act, as amended: Provided, That 
no limitation shall be Imposed on the total quantity of any article 
which may be Imported from any country which reduces such pemlsslble 
total quantity to less than 60 per centum of the average annual quan- 
tity of such article whl<^ was Imported frcM such country during the 
period from July 1, 1928, to June 30, 1933, both dates inclusive. 

T. Sec. 22, Public 10, 73d Cong., May 12, 1933. 

2. Sec. 31, Pift)llc 320, 74th Cong., August 24, 1935. 

3. Sec. "5, Public 461, 74th Cong., February 29, 1936. 

4. public 137, 75th Cong., June 3, 1937. 



* 



- 82 



(c) MO import restriction proclaiined by the President under 
this secticn nor any revocation, suspension, or modification tMreof 
flhaU become effectiYB until fifteen days after the date of such 
proclamation, revocation, suspension, or modification. 

(d) Any decision of the President as to facts indar this sec- 
tion shall be final. 

(e) After Investigation, report, finding, and declaration in 
the manner provided In the case of a proclamation Issued pursuant 
to subsection (b) of this section, any proclamation or provision 
of such proclamatlOTi may be suspended by the President whenever he 
finds that the circumstances requiring the proclamation or provi- 
sion thereof no longer exist, or may be modified by the President 
v^ienever he finds that changed circumstances require such modifica- 
tion to carry out the purposes of this section. 



- 83 - 



Executive Order Prescribing Regulations Gki?emii« Investigations 

unOtr Sec. 2Z of the Agricultural Adjustment Act, as ameaied. 

Uo^mber 23, 1935. 

By virtue of and pursuant to the authority vested in me by the 
Agricultural Adjustment Act of iMay 12, 1933 (48 Stat. 31), as 
amended by section 31 of the act of August 24, 1935, Public, No. 320 
(74th Cong.), I hereby prescribe the following regulations governing 
investigations to be made under sectlcm 22 of the said act. as 
amended: 

I. The Secretary of Agriculture, proceeding upon his own motion 
or upon a request from any interested party, is hereby empowered to 
make such preliminary investigations with reference to matters 
within the scope of section 22 of the said act, as amended, as he 
may deem advisable. 

II. The Secretary of Agriculture Is hereby authorized to pre- 
scribe the manner in which requests for action under the said section- 
22 shall be submitted by Interested parties. 

III. With reference to any preliminary investigation provided 
for in paragraph I of this order, the Secretary of Agriculture shall 
secure such inf onnation from interested parties as he may deem to be 
desirable and, on the basis of the infomation so obtained and such 
other information as may be available, shall detemlne whether the 
showing made or the facts disclosed warrant further Investigation 
The Secretary of Agriculture shall thereupon make his re<KHiMnda-* 
tions to the President in order that. In the light of such recamm- 
dations, the President may direct that no further action be taken, 
or may cause the United States Tariff Ccmiiiission to meOce an inw- 
dlate investigation as provided for in the said section 22. 

IV. When so directed by the President, the United States 
Tariff Commission shall make an imnediate investigation and shall 
give precedence thereto. Such investigati<ais shall be govenied bv 
the following regulations: 

(1) Public nQtlce.-(a> Notice of the hearing in every such 
Investigation shall be given by posting a copy of the notice or 
announcement thereof at the principal office of the Commission in 
Washington, D. C, and at its office in New Yoric City, a copy of ' 
the notice will also be sent to press associations, to trade and 
similar organizations of producers, and to importers known to the 
Commission to have an interest in the subject matter of the investi- 
gation. 

U-OM 



- 84 - 



(2) Hearings. -(a) Hearings shall be conducted by one or more 
Conmls si oners or such member or members of the staff as the 
Coirmlsslon shall designate. The Agricultural Adjustment 
Administrator may have a representative or representatives at each 
hearing, who shall have the privilege of examining witnesses. 

(b) Any Interested person may appear at the hearing, either in 
person or by representative, and produce evidence relevant and 
material to the matter or matters involved in the investigation. 

(c) Witnesses shall be sworn. No documentary evidence, except 
such as is legally subject to Judicial notice, shall be accepted 
unless verified \»der oath by the person offering it as a true state- 
ment of the facts contained therein. 

(d) Evidence, oral or written, siJbmltted in hearings, shall, 
UP<m the order of the Conmlsslon, be subject to verification from 
the books, papers, and records of the parties Interested and from 
may other available sources. 

(e) All hearings shall be stenogregphically reported. Copies 
of tim traiwcrlpt of the minutes of such hearings may be purchased 
from the official reporter. 

(f ) ThB CcBialsslon may continue any hearings or order such 
rehearing as It may deem necessary for a full presentation of the 
facts involved in any investigation. 

(3) Confidential infonnatian .-(a) If witnesses desire to sub- 
mit confidential Information which the Comnlsslon considers to be 
of that character, the Conmisslon shall accept such submission and 
respect its confidential character. 

(b) The Camnlsslon shall make such investigation in addition 
to the hearing as it deems to be necessary for a full disclosure 
and presentation of the facts. In such Investigation the Cocmlsslon 
may invoke all the powers granted to it under part Z, title III, of 
the Tariff Act of 1930. 

(4) Reports. -(a) After the completion of Its Investigation the 
Tariff Commission shall make flndlrigs of fact, which shall include a 
statement of the steps taken In the Investigation, and it shall 
transmit to the President a report of such findings and its recom- 
mendations based thereon, together with a transcript of the evidence 
submitted at the hearing, and It shall also transmit a copy of such 
report to the Secretary of Agriculture. 



- 85 - 



EXHIBIT 5 
U. S. Trade Agreements Act 
Public No. 216, 73d Congress 
June IZ , 1934 



Be it enacted by the Senat e and House of Representatives of the 
United States of America in Coni gress assaabled. That th» Tarltf Act 

qX ia flMBdfd fry at the mn of title iii the foiioiting! 

Bart III • Promotl<m of Foreign Trade 

Sec. 350. (a) For the purpose of expanding foreign markets for 
the products of the Uhlted States (as a means of assisting In the 
present emergmcy In restoring the American standard of living. In 
overcoming domestic uneoplo^nt and the present economic depres- 
sion. In Increasing the purchasing power of the American public, and 
In establishing and maintaining a better relationship among various 
branchBS of American agriculture, industry, mining, and commerce) 
by regulating the admission of foreign goods into the United States 
In accordance with the characteristics and needs of various branches 
of American production so that foreign markets will be made avail- 
able to those branches of American production which require and are 
capable of developing such outlets by affording corresponding market 
opportunities for foreign products In the United States, the 
President, whenever he finds as a fact that any existing duties or 
other Import restrictions of the United States or any foreign coun- 
try are unduly burdening and restricting the foreign trade of the 
United States and that the purpose above declared will be promoted 
by the means hereinafter specified, is authorized from time to time - 

(1) To enter Into foreign trade agre^ents with foreign govern- 
ments or instrumentalities thereof; and 

(2) To proclaim such modifications of existing duties and other 
Import restrictions, or such additional Import restrictions, or such 
continuance, and for such minimum periods, of existing custcms or 
excise treatment of any article covered by foreign trade agresMnts, 
as are required or appropriate to carry out any foreign trade agree- 
ment that the President has entered into hereunder. No procIamtl<m. 
shall be made Increasing or decreasing by more than 50 per oentia 
any existing rate of duty or transferring any article between the 
dutiable and free lists. The proclaimed duties and other ttiport 
restrictions shall apply to articles the growth, produce, or manu- 
facture of all foreign com tries, vtoether imported directly, op 
Indirectly; Provided, That the President may suspend the application 
^t^sf growth, produce, or manufacture of any country 



- 86 



because of its discriminatory treatment of American coonerce or 
l>ecau8e of other acts or policies utilch in his opinion tend to 
defeat the purposes set forth In this sectl(m; and the proclaimed 
duties and other Import restrictions shall be In effect from and 
after su^ time as Is specified In t2ie proclamation. The President 
may at suiy time temlnate any such proclamation In vidiole or In part. 

(b) Nothing m this section Shan be construed to prevent the 
application, with respect to rates of duty established under this 
section pursuant to agreements with comtrles other than Cuba, of 
the provisions of the treaty of comnerclal reciprocity concluded 
between the United States and the Republic of Cuba on December 11, 
1908, or to preclude giving effect to an exclusive agreenent with 
Cuba concluded under this section, modifying the existing preferen- 
tial custcms treatment of any article the growth, produce, or manu- 
facture of Cuba: Provided . That the duties payable on such an 
article shall In no case be increased or decreased by more than 50 
per centum of the duties now payable thereon. 

(c) As used In this section, the tenn "duties and other Import 
restrictions" Includes (1) rate and form of Import duties and 
classification of articles, and (2) limitations, prohibitions, 
charges, and exactions other than duties, imposed on Importation or 
imposed for the regulation of imports. 

Sec. 2 (a) Subparagraph (d) of paragraph 369, the last sentence 
of paragraph 1402, and the provisos to paragraphs 371, 401, 1650, 
1687, and 1803 (1) of the Tariff Act of 1930 are repealed. The pro- 
visions of sections 336 and 516 (b) of the Tariff Act of 1930 shall 
not apply to any article with respect to the Importation of which 
into the United States a foreign-trade agreement has been concluded 
pursuant to this act, or to any provision of any such agreement. The 
third paragraph of section 311 of the Tariff Act of 1930 shall apply 
to any agreement concluded pursuant to this Act to the extent only 
that such agreement assures to the United States a rate of duty on 
wheat flour produced in the United States which Is preferential In 
reqpect to the lowest rate of duty imposed by the country with which 
such agreement has been concluded on like flour produced in any other 
country; and upon the withdrawal of wheat flour from bonded manu- 
facturing warehouses for exportation to the country with v^lch such 
agreement has been concluded, there shall be levied, collected, and 
paid on the Imported wheat used, a duty equal to the amount of such 
assured preference. 

(b) £very foreign trade agreement concluded pursuant to this 
act flhall be subject to teimlnatlon, upon due notice to the foreign 
eovenwnt concerned, at the end of not more than three years from 
^e date on whl<^ the agreiement comes into force, and. If not then 
terminated, ehall be subject to termination thereafter upon not more 
than slxaonttis* notice. 



- 87 - 



(c) The authority of the President to enter Into foreign trade 
agreements under section 1 of this Act shall temlnate on the 
expiration of three years from the date of the enactment of this 
Act. 

Sec. 3. Nothing m this Act shall be construed to give any 
authority to cancel or reduce, in any manner, any of the indebted- 
ness of any foreign country to laie Iftilted States. 

Sec. 4. Before any foreign trade agreement Is concluded with 
any foreign government or instnmentallty thereof under the pro- 
visions of this Act, reasonable public notice of the intention to 
negotiate an agreement wltti such government or instrumentality 
Shall be given in order that any interested person may have an 
opportunity to present his views to the President, or to such 
agency as the President may designate, under such rules and regula- 
tions as the President may prescribe; and before concluding such 
agreonent the President shall seek information and advice with 
respect thereto trm the Iftilted states Tariff Commission, the 
Departments of state. Agriculture, and Commerce, and from such other 
sources as he may deem ^proprlate. 



Joint Resolution to Extend the Authority of the President 
under Section 350 of the Tariff Act of 1930, as amended 

March 1, 1937 

Resolved by the Senate and House of Representatives of th P 
anted States of America In Cong; ress assembi . That the period 
during which the President is authorized to enter Into foreign- 
trade agreements under section 350 of the Tariff Act of 1930 as 
amended by the act (Public No. 316, 73d Cong.) approved June'l2. 
1934, as hereby extended for a further period of ' 3 years fit» 
June 12, 1937. 

U.-MS 



- 88 - 



EXHIBIT 6 

Australian Customs Tariff (Industries Fresenratlcm) Act of 1921 

as amended In 1922, 1933, and 1936i/ 



1. Short title : This Act may be cited as the Customs Tariff 
Clndustries Preservation) Act, 1921, 1922. 

2. Incorporation: The Customs Act, 1901-1920, shall be incor- 
porated and read €ls one with this Act. 

3. Definitions ; In this Act, except where otherwise clearly 
Intended - 

■Ballast rates" means qpeclal rates chargeable on any goods 
shipped as ballast or stiffening for any vessel, and being lower than 

the rates ctiargealile on those goods when carried as ordinary cargo; 

"Si;ft)8ldlzed ship" means any ship to the master, owners, agents, 
or charterers of which there Is paid any Government or other subsidy, 
bonus, or boimty (not being payment for the actual carriage of mail 
■atter at rates which the Minister considers to be fair and reason- 
able) which will pemlt of goods being carried at a rate of freight 
lower than would be the case If such subsidy, bonus, or bounty were 
not paid; 

■Tlie export price" of goods eacported to Australia means the 
price at which the goods are sold by the exporter to the importer In 
Australia (including the free-on-board charges In the comtry of 
eiQX)rt); 

•The fair market value" of goods means the fair market value 
of ttm goods, or of goods of the same class or kind, sold in the 
country of export In relation to which the expression is used, for 
hone couBUttptlon In the usual and ordinary course of trade plus free- 
on-board caiarges In that country, but not IncliKiliig any excise duties 
payable In that country; 

"The tariff* means the customs tariff In force for the time 

being; and 

"The Tariff Board" or "the Board" means the Tarlf Board 
appointed under the Tariff Board Act, 19^1. 



1. Law No. 28 of 1921, No. 20 of 1922, No. 30 Of 1933, and No. 82 
ofj.936. 



> 



)^ - 89 - 

4. Dumping dutv : (1) If the Minister is satisfied, after 
enquiry and report by the Tariff Board, that goods' exported to 
^ Australia, which are of a class or kind produced or manufactured In 
r Australia, have been or are being sold to an importer In Australia 

at an export price which is less than the fair market value of the 
goods at the time of shipment, and that detriment may taisreby result 
to an Australian industry, the Minister may pil)llsh a notice In tte 
f Qa^ette specifying the goods as to whl(^ he Is so satisfied. 

(2) Upon th» pil)llcatlon of the notice tbere shall be charged, 
collected, and paid to the use^ of the King for the purposes of the 
CoBKOimrealth, oir those goods Imported Into Australia a special duty 
(In this section referred to as the "dumping duty"). 

(3) The amount of the dumping duty In each case shall be the 
sum which represents the difference between the fair market value of 

f the goods at the time of shipment and the export price: 

Provided. That wdiere the Importer satisfies the Minister that 
he purchased the goods within six months prior to the time of ship- 
ment and that after the date of purchase and prior to the date of 
Shipment, the fair market value of the goods had increased, the fair 
market value to be taken for the purposes of tljis section shall be 
the fair market value at the date of purchase. 

^ (4) The regulations may provide for the exemption of the follow- 

Jl Ing goods from the dumping duty: 

(a) Any goods or class of goods In respect of which the 
Minister is satisfied after report by the Tariff Board that the goods 
or classes of goods are not made in Australia in substantial quanti- 
ties and offered for sale to all purchasers on equal terms under like 
conditions having regard to the custom and usage of trade; 

(b) Any goods in respect of which the difference between thB 
fair market value and the export price does not exceed 5 per cent of 
the fair market value; 

(c) Any goods In respect of which the difference between the 
fair market value and the export price does not exceed 10 per cent of 
the fair market value. If the Minister is satisfied, after report by 
the Tariff Board, that the exemption would not be detrimental to any 
Australian Industry; and 

« 

(d) Goods, being articles of merchandise, for use bona fide as 
samples for the sale of similar goods. 

5. Dumping below cost duty: (1) If the mnlster Is satisfied, 
after enquiry and report by the Tariff Board, that goods produced or 
manufactured outside Australia have been or are being sold to an 
importer In Australia at an export price which is- less than a 

LL-M5 



- 90 - 

reasonable price, and that detriment may thereby result to an 
Aistrallan industryi the MlnlBtermay publish a notice in the 
Oasette specifying ttoe goods as to which he is so satisfied. 

(2) Upon the pii)lication of the notice there ^all be charged, 
collected, and paid to tl» use of the King, for the purposes of the 
Connomealth, on those goods imported into Australia, a special duty 
(in this section referred to as "the dunping below cost duty"). 

(3) The amount of the dunping below cost duty in each case shall 
be the sum v*ilch represents the difference betwemi a reasonable price 
of the goods at the time of shipment and the export price of the 
goods. 

(4) In this section "a reasonable price" means such a price as 

represents the cost of production of the goodr, plus such addition, 
not exceeding 20 per centum, as Is determined by the Minister after 
enquiry and report by the Tariff Board, plus free on board charges. 

(5) In the absence of satisfactory evidence as to the cost of 
production the Minister may, after report by the Tariff Board, fix 
such amount as he thinks fit as the cost of production, and the 
amount so fixed shall, for the purposes of this section, be deemed 
to be the cost of production. 

6. Provisions In case of goods on consignment : (1) If the 
Minister Is satisfied, after enquiry and report by the Tariff Board, 
that goods have been or are being consigned to Australia for sale, 
and tlBt they may be sold at less than a reasonable selling price, 
and that detriment may thereby result to an Australian Industry, the 
Minister may publish a notice in the Gazette specifying the goods as 
to whidi he is so satisfied. 

(2) Upon the publication of the notice In the Gazette there 
shall be charged, coUected, and paid to the use of the King, for the 
purposes of the Comnonwealth, <m those goods imported into Australia, 
a special duty (in this section referred to as "the dumping consign- 
ssnt dut^*). 

(3) the amount of the dtaping conslgiment duty in each case 
flhall be the sua which represents the difference between the whole- 
sale selling price in Australia and a reasonable selling price. 

(4) In this section "a reasonable selling price" means the 
price ascertaiMd upon the following basis, namely: To the fair 
maxicet value of thB goods there shall be added the freight, insurance, 
landing, and other charges together with the amount of duty payable 
under the CuBtoms Tariff, together with such addition, not exeeeding 
15 per centui on the aggregate of all the items mentioned, as is 
determined by the Minister after enq:uiry and report by the Tariff 
Board. 



- 91 - 

(5) If the evidence of the fair laailcet value is, in the optoioc 
of the Minister, insufficient, the Minister may, for the purpopes of 
the last preceding subsection, substitute in lieu thereof the ascer* 
tained cost of production plus sush addition, not exceeding 20 per 
oentin of such cost, as is detemined by the Minister after mquiry 
and report by the Tariff Board, or, if the cost of production is not 
ascertainable , the cost of production estimated frcna such informa- 
tion as is available, plus such addition, not exceeding 25 per centum 
of such estimated cost, as is detemined by the Minister after 
enquiry and report by the Tariff Boeurd. 

7. DuBPing freight duty: (1) If the Minister Is satisfied, after 
enquiry and report by the Tariff Board, that any goods exported to 
Australia, of a class or kind produced or manufactured In Australia, 
have been or- are being carried - 

(a) In subsidized ships at rates of freight lower than the 
noimal rate of freight; ori/ 

(b) at ballast rates of freight, being rates lower than the 
normal rate of freight; ori/ 

(c) freight free; 

or that, by reason of any circumstance. Including the granting of 
rebates, refunds, or other allowances, the amount or the net amount 
of freight paid or payable on goods exported to Australia, of a class 
or kind produced or manufactured In Australia, Is lower than the 
amount of freight which would have been or would be payable at the 
nomal rate of freight, and that In any such case detriment may 
thereby result to an Australian Industry, the Minister may public 
a notice In the Qazette specifying the goods as to which he is so 
satisfied;!/ 

(2) Upon the publication of the notice, there shall be charged, 
collected and paid to the use of the King, for the purposes of the 
Conmon/vealth, on those goods imported into Australia a special duty 
(in this section referred to as "the dimping freight duty*). 

(3) The doBping freight <hity shall be:^ 

(a) In the case of goods vihich have been or are being carried 
frei^t free - the amount Which would have bemi or would be payable 
as freight on those goods if they had been or were carried at the 
noznal rate of freight; and 

(b) In the case of any other goods - such amount as, in the 
opinion of thd Minister, is equal to the simi by which the freight 

1. as anended, 1936. 



- 92 - 

vAilch would haTd been or would be payable on those goods if tbey bad 
been or were cairrted at the noraal rate of f relgfit exceeds the 
freli^t or tlie net freight paid or payable on those goods. 

(4) Tim nornal rate ot frelglit In respect of any goods to which 
taiis sectimi applies shall, for the purposes of this section, be 
sui^ as is dAtemined by the Minister, but not exceeding the higHest 
rate of freight payable, at the date of shimmit of those goods, on 
similar goods <^krried by general cargo T^sels which, in the opinion 
of t^e Minister, trade regularly with Australia. 

(5) If any dispute arises as to the rate of freight in respect 
of any goods, or the amount of any rebate, refund or other allowance 

in respect of freight on goods to which this section applies, that 
rate or that amount shall, for purposes of sub-section (3) of this 
section, be such rate or amount as the Minister detemines. 

8. Dumping exchange duty; !/ (l) If the Minister is satisfied, 
after enquiry and report by the Tariff Board, that the exchange 
value of the currency of the country of origin of any goods has 
depreciated In relation to Australian currency, and that by reason 

of such depreciation goods have been or are being sold to an Importer 
In Australia at prices which will be detrimental to an Australian 
Industry, the Minister may publish a notice in the "Gazette" specify- 
ing the country as to the exchange value of v^lch he Is so satisfied, 
and the goods originated In that country to which in his opinion the 
provisicMis of this section should apply. 

(2) Upon the publication of the notice, there shall be charged, 
collected and paid to the use of the King, for the purposes of the 
Commonwealth, on all goods specified In the notice and produced or 
manufactured In the country specified therein, a special duty ascer- 
tained as follows: 

(a) From the nominal par value In sterling of a unit of the 
currency of the country of origin of the goods there shall be 
deducted the value in Australian currency of the same unit at the 
date of exportation of the goods; 

(b) The amount ascertained under the last preceding paragraph 
shall be divided by the value in Australian currency of a unit of 
t^ie cwrmcy of the country of origin of the goods at the date of 
exportation of the goods; and 

(c) Tha figure ascertained under the last preceding paragraph 
^11 be miatiplied by the value of the goods assessed in accordance 
with tim CiBtoiiiffl Act, 1901-30. 



1. as amended, 1933. 



93 - 



9. Dumping preference dutv: (1) If the Minister is satisfied, 
after enquiry and r^ort by the Tariff Board, that, by reason of the 
depreciation in exchange value of the currency of the country of 
origin or export of any goods, in omqparison with t^e currency of the 
IMited Kingdom, goods esqported to Australia, which have been pro- 
duced or manufactured in any country other than the Iftiited Kingdom, 
and are of a class or Icind produced or manufactured in the 

lAiited Kingdom, have been or are being sold to an importer in 
Australia at an export price vmich is Uss than the fair maiket value 
of goods of like (toracter or quality made in the United Kingdom, 
when sold for heme consunption therein in the usual anl ordiimy 
trade course, plus the ordinary free-on-board (barges therein (in 
this section referred to as "the fair market value in the 
Uhited Kingdom"), the Minister may publish a notice in the "Gazette" 
specifying the goods as to which he is so satisfied. 

(2) Upon the publication of the notice, there shall be charged, 
collected, and paid to the use of the King, for the purposes of the 
CoBmonwealth, on those goods Imported into Australia, a special duty 
(in this section referred to as "the dumping preference duty"). 

(3) The amount of the dumping preference duty In each case shall 
be the sum which represents the difference between the fair market 
value in the United Kingdom and the export price. 

(4) Notwithstanding anything contained in the Customs Act 
1901-20, the value for duty under that Act of goods dutiable under 
this section shall be the value ascertained In accordance with the 
Act plus the duuping preference duty imposed under this section. 

10. Dumped materials duty; (1) If the Minister Is satisfied, 
after enquiry and report by the Tariff Board, that goods have been 
or axe being sold to an Importer in Australia, which were manufac- 
tured vy^olly or In part from material supplied from any country 
whose currency has depreciated by comparison with the currency of the 
country to which the material was supplied, and that the manufactured 
goods have been or are being sold to an importer In Australia at a 
price below the price at which the same goods could have been manu- 
factured in the country of manufacture if made from material of such 
country of manufacture, and allowing for a rearonable profit, the 
Minister may publish a notice in Gazette specifying the goods as 
to whi(^ he is 80 satisfied. 

(2) Upon the publicaticm of the notice there shall be charged, 
collected, and paid to the use of the King, for the purposes of the 
Conmonwealth, on those goods imported into Australia, a special duty 
(in this section referred to as "Uie dumped materials duty"). 

(3) 1!he amount of the dumped materials duty shall be the sun 
which repr^ents the difference between the price at which ttie goods 
were or are being sold to Australia, and the price representing what 



94 - 



would have been the fair market value of the same goods If the goods 
had been manufactured wholly in the countxy of export f ran materials 
of that country. 

11. Evasliai of duty under sections 9 and 10 by consignment : If 
the Minister Is satisfied, after enquiry and report by the Tariff 
Board that the duty Imposed by either of the last three preceding 
sections Is likely to be evaded by the conslgnmBnt of goods to 
Australia for sale, he may direct that there shall be payable on any 
goods specified by him, by notice published In the Gazette, which 
have been consigned to Australia for sale, a duty In an amount vtilch 
will. In his opinion, assure that the goods will not be sold In 
Australia at less than a reasonable selling price as defined In sec- 
tion VI, and duty In that amount shall thereupon be charged, col- 
lected, and paid to the King, for the purposes of the Commonwealth, 
on such goods. 

12. Duties to be collected separately ; The various .duties imposed 
by this Act shall be separately charged, notwithstanding that more 
duties than one may apply to any particular goods: 

Provided. That where duty has been Imposed, under section 8 and 
section 9 of this Act, upon any particular goods, duty shall be 
Imposed iqpon those goods under the other of those sections. 

12A.i/ Notwithstanding anything contained In this Act or the 
Customs Act 1901-1935, where any amount of duty payable under section 
four, five or seven of this Act Is calculated In any currency other 
than Australian currency, the equivalent amount In Australian currency 
of the amount so calculated shall be ascertained according to a fair 
rate of exchange, to be declared In case of doubt by the Minister, and 
the amount In Australian currency so ascertained shall be the amount 
of duty to be paid. 

13. Power to specify goods : The powers given by this Act to the 
Minister to publish notices specifying goods shall extend to the pub- 
lication of notices specifying goods of any particular class or kind 
or to any particular shipment of goods or to goods exported by any 
particular exporter or to goods specified In such other manner as the 
Minister thinks fit, and. If the notice so provides, to all or any 
goods entered for heme consumption on or before the date of issue of 
the notice as well as to goods entered for hone consumptlm %ttmr 
that date* 

14. Power to revoke notices: (1) Any notice published In pur- 
suance of this Act may be revoked at any time If the Minister Is 
satisfied that the conditions vAilch occasioned the pii>llcatlon of the 
notice no longer exist, and that It Is desirable that the notice 
should be revoked. 



1. Sec. 124 added In 1936. 



95 - 



(2) Upon the revocation of the notice, the duties charged In 
consequence of the publication of the notice stall no longer be 
collected. 

15. Special duties to be additional to ordinary duties; The 
special duties payable under this Act shall be In addition to suc^ 
other duties (if any) as are payBa)le under ttie tariff. 

Special d uties mav be collected by post entry ! Where at 
the time of the entry for home consunptlon of any goods dutiable 
under this Act, the duty payable under this Act was not paid, the 
Collector may at any time call upon the ln«)orter to pay the duty, and 
the Importer shall pay the duty accordingly. 

17. Regulations: The Gfovernor General may make regulations, not 
Inconsistent with this Act, for carrying out or giving effect to this 
Act. 



- 96 - 



EXHIBIT 7 

intldUBping ProvlsKnss of the Canadian CubIxms Tarirf Act 
as amended In 1934, 1936 and 19371/ 



Section 6. (1) In the case of articles exported to Canada of a 
tlAm or kind made or produced In Canada, if the export or actual 
selling price to an Importer in Canada is less than the fair market 
ynlm of tr» sane article when sold for home consumption In the usual 
and ordinary course in the country whence exported to Canada at the 
tiM of Its exportation to Canada, or Is less than the fair market 
value or value for duty thereof as determined under the provisions of 
section thlrty-slx of the Customs Act or Is less than the value for 
duty thereof as determined by the Minister under the provisions of 
paragraphs (a) and (e) of section forty-one of the Custcms Act , or Is 
less than the fair market value thereof as fixed under the provisions 
of section forty-three of the Customs Act , there shall, m addition 
to the duties otherwise established, be levied, collected and paid 
on such article, on Its Importation Into Canada, a special or dumping 
duty, equal to the difference between the said selling price of the 
article for export and the said fair market value thereof or value 
for duty thereof; and such special or dumping duty shall be levied 
collected and paid on such article although It Is not otherwise ' 
dutiable . 

Provided that v*ien n Is established that any articles though 
of a class or kind made or produced In Canada are not offered tor sale 
to the ordinary agencies of wholesale or retail distribution or are 
not offered to all purchasers on equal terns under like conditions, 
having regard to the custom and usage of trade, such articles may be 
ex«npted f rem special or dmplng duty. 

Provided that the said special duty shall not exceed fifty per 
centum ad valorem In any case, and the folloi»li« goods shall be 
exompt from suCh special duty, namely:- 

Gtoods of a class subject to duty under the Excise Act. 

(2) Excise duties or excise taxes shall be disregarded In esti- 
mating the market value of goods for the purposes of special duty 
v*ien the goods are entitled to entry under the British Preferential 
Tariff, Interaedlate Tariff, or any tariff more favourable than the 
Oeneral Tariff. 



1. Act of July 3, 1934, Geo. V. Chapt. 48. 

Act of June 23, 1936, 1 Bdw. VIII. Chapt. 31. 
Act of April 10, 1937, 1 Geo. VI. ©lapt. 24. 



- 97 - 



i-r. r^J^^ Governor In Council, whenever It Is deemed expedient 
to do so, may order that Import, excise or other dutl?ra^?^taies 

lliuTln "V "^^'^ ^ disregarded In e^lSln? ?Se Se{ 

value for the purpose of special duty of goods of any kind l^o^ed 
into Canada from, any specified country. ^ ^^^d imported 

m esuiti^^tL'^^^^S!.^^ ^"^^ ^'^^ s^^ll t)e disregarded 
in estimating the market value of wines for the purposes of sDeciai 

ylll^ f . ^^"^^ ""^^^ favourable than the General Tariff and are 
bottled m bond in tiie United Kingdom and imported dLTtLmr^! 

h«iH it^ "Export price* or "selling price" m this section shall be 
held to mean and Include the exporter's price for the goods exoiu 

^ce'eSorSST" 'J?^'^ ^'^^^ ^^^^^ Shipment VrS fhe piace 
wwnce axporteii directly to Canada. 

MlnlaSr tLtK^J"^^ ^^^^""^ *° satisfaction of the 
SSiS ?or "^^"^ °^ ^^^^^1 by this section pro- 

wlttJufLS ^J^^ evaded by the shipment of goods on conslgmaenr 

*° Shipment, the Hlnlster may m any case or 
o^<^^.^^ authorize such action as is deemed necessa^^^o ^nlct 

Deen sold to an importer m Canada prior to their shipment to CanadaT 

».«<- im, II " appears to the satisfaction of the miilstar 

ttatany person owning or controlling or interested In a busSnS^Jn 
Canada and also m any other country, or any person carrylneln a 
business m any other country and owning or controlltogT^Si^ted 

to import goods for further manufacture or assembling or tlr naS 
and While complying with the legal requlranents on LSrtatloTS!' 

T.tL°^ m the f om as^SJeToJ M 

further processed, assembled or manufactured, at mIms be^«, t*.!^ 
duty paid value thereof as entered at Custo^'pJSs S JncJStoe^ll 

dSeltly^^o^cSadf °f f'.T ^"^^"^"^ the pUc^'^J^SS'e^Sd 

c^sts Lr,,n,^^'^f; including sales, distribution and a*rerti8?nr^ 
costs, and plus, if any, the cost of processing, asseabllne «• 

oflutl "f""^^°^': in Canada, the Mlnlstef^y^nSiih^ goods 
Of such Class or kind were and are on Importation subject toan ^ 
tlonal special or dumping duty not exceeding fifty Mr cent »SS 

theS!' " coSStS 

SeloUeaiJ deficiency paid upon the amZa of 

sarv in! '^^ "mister may make su<ai regulations as are deemed neces- 
enforJ^'enr''^ Prwlsions of this section and ?^ its 



(9) (a) llotiflthitaiidli« ttie pxwlslons of any othar law, the 
Qovernor In Council nay> tTm time to tlaa and as occaalon requlrea, 
ordar and direct, 8iA>ject to such exceptions as may be made, intoat a 
smil be the rate of exchange fixed for any currency in coBputlng 
the value for duty of goods Imported into Canada from any place or 
country the currency of micii is depreciated, and in case a sim in 
Canadian currency less than ttie Invoice value of the goods in the 
currency of the place or country of export, coaputed at ttie rate of ^ 
exchange so ordered, be paid for the goods, the actual selling price 
of the goods to the Importer shall be regarded as less than the fair 
market value of the goods when sold for home consimptlon, and the pro- 
visions of this section shall apply and special or dumping duty ^all 
apply eqiBl to the difference between the value of the invoice com- 
puted at the current rate of exchange or at the average current rate 
from time to time fixed by order of the Governor In Council, and the 
value of such Invoice, computed at the rate of exchange for duty so 
ordered as aforesaid, or may be less than such difference as the 
Governor In Council may from time to time order and direct; and the 
Governor m Council may order and direct that In all cases of sales 
or consignments of goods Imported Into Canada, where the Importer 
owns, controls or Is Interested In the business of the exporter, or 
the exporter owns, controls or Is Interested In the business of the 
Importer, or the Importer and exporter operate under a controlling 
or holding company, notwithstanding the expressed terns of the sale 
or consignment, the transaction shall be regarded as a sale and the 
actual selling price to the purchaser In Canada shall be taken to be 
tlie "mlxm of the goods in the currency of the place or country of 
export c<m¥erted into Canadian currency at the current rate of 
exchange, or at the average current rate from time to time fixed by 
order of tliB (Governor in Council, €uad shall be regarded as less than 
the fair market value of the goods when sold for heme consumption, 
and tarn provisions of this section shall apply and special or dumping 
duty lOiall be deemed to apply equal to the difference between the 
value of the invoice coqmted at the current rate of exchange or at 
taie average current rate froa time to time fixed by order of the 
Ooteimr in Council, and the value of such invoice computed at the 
rate of exdiai^e for duty so ordered as aforesaid, or may be less 
than siKh difference as the Oovemor In Council may frcm time to time 
order and direct. 

(b) Any Order in Council made hereunder may be varied, extended 
or revoked at any time by the Qovemor in Council. 

(c) This subsection shall be deemed to have had effect from and 
after the first day of Septaaaber 19^1. 1931, c. 30, s. 6; 1933, 
c. 37, s. 1. 

(10) For the purposes of this Act articles shall not be deaaed 
to be of a class or kind made or produced In Canada unless so made or 
produced In substantial quantities; and the Governor In Council nay 
by Order In Council provide that such quantities, to be substantia , 



4 



- 99 - 

shall be sufficient to supply a certain percentage of the normal 
Canadian consumption and may in such Order fix such percentage. 

(11) (a) Notwithstanding the provisions of any other law, the 
Governor in Council may, from time to time and as occasion requires, 
and without having regard to the requirements of sectlOTi fifty-five 
of the Customs Act, order and direct, subject to such exceptions as 
may be made, what shall be the rate of exchange fixed for any 
currency In computing the value for duty of goods imported into 
Canada from any place or country, the currency of which is appre- 
ciated in terns of the Canadian dollar. 

(b) In cases wtoere, under the power granted by this subsection, 
the Governor in Council shall have fixed the rate of exchange for any 
currency in ccaaputing the value for duty of goods imported into 
Canada, special or dunping duty shall not apply when the export or 
actual selling price is equal to or greater than the value for duty 
so computed and where the same is less than the value for duty so 
computed, special or dumping duty applicable shall not be greater 
than the difference between the said export or actual selling price 
and the value for duty so ccmputed. 



- 100 - 



General Regulations under Section 6 of the Customs Tariff!/ 



1. Order In Council P.O. 1618, 2nd July 1936 (Memorandum D No. 33 
Supplement B). Articles shall not be deemed to be of a class or 
kind made or produced In Canada unless a quantity sufficient to 
supply ten per centum of the nonnal Canadian consumption of such 
article Is so made or produced. 

£• Bona fide samples aOaltted without special duty. 

Articles of merchandise for use bona fide as samples for sale 
of similar goods are to be admitted without special duty (subject, 
however, to ordinary duties as heretofore). 

3. A)dvance In market value after purchase of goods by Importer not 

subject to special duty. 

The amoimt of any advance In the market value of goods between 
the time of their purchase by the Importer and the date of their 
eiqportatlon to Canada shall not be subject to special or dumping 
duty, provided the purchase agreement firmly establishes the price 
and quantity, and final shipment Is made within a period In accord- 
ance with usual heme market practice, and further provided that the 
actual date of purchase Is established to the satisfaction of the 
Collector by contracts or other sufficient docmentary evidence pro- 
duced for his Inspection and attested to. 

Iftider this regulation, increases In the rate of exchange between 
the date of purchase and date of shipment may be considered as 
effecting an advance in tSie market value of goods. 

Note. -In respect of goods subject to an ad valorem duty, the 
ordlnaiy duty stoall be collected on the fair market value 
of the goods at the time and at the exchange rate on the 
date of their direct|ttMMki<m to Canada under the pro- 
visions of the Oustc3|^^H 

4. Caah discounts. 

Special or dunqping duty will not apply on account of the allow- 
ance to the purchaser in Canada of a ca^ discount similar in per- 
centage and teniis with that allowed generally, by the exporter on 
heme mai^et sales. 

1. Memorandum, Department of National Revenue, Canada (Customs 
*" Division), Ottawa, August 18, 1937, Series D. No. 87. 



- 101 - 



Note. -The Customs Act makes no provision for deduction of a 
cash discount for ordinary duty purposes. The fair hone 
market value shown on Invoices requires to be that on usual 
credit terms, and the cash discount which may be taken for 
cash settlement should be shown in accordance with hone 
market practice only as terms with details €is to percentage 
and time limitation. Where, through inadvertence, a caeh 
discount Is shown deducted on invoices, an imdertaklng win 
be required from the importer that same will not be taken 
unless earned by settlement in accordance with such teras. 

5. Freight allowances. 

Where goods are sold generally in the home market of the 
exporter at a oomaon delivered price (freight prepaid or allowed) to 
all destinations in a prescribed territory in itiich the place of 
direct shipnmt to Canada is located, a similar allowance may be 
granted to the purchaser in Canada without rendering importations 
liable to special duty. Such allowance may not exceed the actual 
carriage charges to destination In Canada. 

Note. -This allowance is not allowable for ordinary duty pur- 
poses, am should therefore be deducted as such only in the 
selling price column on Invoices but not deducted .vhen 
.detemining and showing the fair market value In principal 
markets of the oountiy of export and at the place of direct 
ehipment to Canada. 

6. Deferred quantity allowances. 

Deferred allowances granted generally in the home maricet on the 
basis of quantity purchased, when similarly granted to purchasers in 
Canada, will not subject Importations to special duty. 

Note. -Such allowances not shown and allowed and deducted on 
home market Invoices may not be allowed for ordinary duty 
purposes. 

Invoices to be consistent with the certificate thereon should 
bear a notation that the selling price is subject to a deferred 
quantity allowance as allowed generally In the heme market. 

7. Job lots, seconds, etc. 

Special or dumping duty Is not applicable to bona fide Job lots, 
remnants, seconds or defective goods and used or second-hand goods, 
the values of which have been appraised, where the selling price to 
the purchaser In Canada Is not less than the price as sold for heme 
consumption under like conditions. 



3IT 8 



Antidumping Provisions of the Southern Bhodesian 
Customs and Excise Amendment Act 
May 18, 19371/ 



6. (1) Whenever, after investigation and report by a board or 
person instructed to do so by the Minister of Finance, the Governor 
18. satisfied that goods which are of a class or kind produced or 
manufactured In the Colony have been or are being exported to the 
Colcmy - 

(a) at an export price which Is less than the domestic value 
thereof as defined in section 10 of this Act plus the extra 
chax98 referred to therein when applicable; or 

(b) at a rate of freight lower than the rate prevailing at 
the date of ^Ipient for those dasees of goods usually rated 
for shipping purposes on the same basis, or at ballast rates 
of freight, or freight free, or that by reason of the granting 
of rebate, refunds, or other allowances the net amount of 
freight payable is lower than that prevailing at the date of 
^ipment; or 

(c) that a bounty has been or will be granted in respect 
of such goods in the cotmtry in urtiich they were produced 

or mnufactured or frcm which they were exported by way of a 
bonus, rebate, svlbsidy or otherwise, wtoether granted by a 
Oovemment or other authority or person; # 

and is further of opinion that detriment may frcm one or more of the 
above causes result to an industry within the Colony and that it 
would be In the public interest to Impose in respect of such goods a 
dunplng duty, the Governor may by proclamaticm in the Ocmtte notify 
the class of goods and declare that one or more of the duiplng duties 
enumerated In sub-section (2) of this section, and set forth in such 
proclamation, shall be levied upon goods of such class on inqportation 
Into the Colony frcm a country or countries named in the proclamation; 
and from and after the date of publication of such proclamation in 
the Gazette such dumping duty or duties shall, in addition to any 
other duties payable thereon, be charged, levied, collected and paid 

li Act No. 17, May 18, 1937, (The same provisions were found in 

Sec. 6 of the Customs and Excise Amendment Act of 1935, published 
m the Oovemmait Gazette, Miay 10, 1935. ) 

LL-M5 



-log- 
on goods so notified on importaticm into the Colony from the coun- 
tries named: Provided that - 

(i) no dunping duty or duties cftiall be imposed in respect 
of goods shipped or railed to the Colony from the country 
named in the proclamation prior to the date of piblication 
thereof in ttie Gazette; and 

(ii) suidi duty, or mliere there is more than one fom of 
dumping, the total of such duties, shall not exceed one-half 
of the value of the goods for the purposes of duty as deter- 
mined under section 10 of this Act. 

(2) The dumping duties vrtiich may be Imposed In terns of sub- 
section (1) shall be the following :- 

(a) "ordinary" dumping duty which shall be the difference 
between the export price and the domestic value as defined 
in section 10 of this Act plus the extra charges referred to 
therein when applicable. Provided that such difference Is 
greater than five per centum of the export price. 

(b) "freight" dumping duty which shall be the difference 
between the net freight paid or to be paid and the freight 
which would have been payable at the rate prevailing at the 
date of shipment for those classes of goods usiBlly rated 
for shipping purposes on the saine basis. 

Provided that such duty shall not apply to goods of which 
the value for duty purposes, added to the marine Insurance 
and freight charges, exceeds ten pounds per ton of 2,240 lbs.; 

(c) "bounty" dumping duty which shall be the amount of the 
bounty referred to in paragraph (c) of sub-section (1) of this 
section. 

(3) Whenever after Investigation and report by a Board or per- 
son Instructed to do so by the Minister of Finance the Minister is 
satisfied that the exchange value of the currency of the country of 
origin or export of goods exported into the Colony, is depreciated 
In relation to Southern Rhodeslan currency and is of opinion that by 
reason of such depreciation goods of a class or icind manufactured or 
produced In the Colony are being Imported into the Colony at prices 
which are detrimental to an industry in the Colony and is further of 
opinion that it would be In the public interest to Impose, in respect 
of such goods, a dumping duty, the Minister shall from time to time 
determine the rate at which the currency of such country shall be 
computed in terns of Southern Rhodeslan currency for the purposes of 
assessing the dunping duty referred to in sub-section (4) of this 
section and he shall thereupon notify in the Gazette the rate so 



- 104 - 

determined and the class or kind of goods to which such duty shall 
apply. 

(4) If after the Issue of such notification any person Imports 
from such country Into the Colony any goods of a class or kind so 
notified, there shall be charged, levied, collected and paid on such 
goods on their Importation Into the Colony, In addition to the duties 
otherwise prescribed, an exchange dumping duty equal to the differ- 
ence between the cost free on board at the port of shipment of such 
goods to the Importer In Southern Rhodes Ian currency on the one hand 
and such cost, expressed In the currency of the country of origin or 
export of such goods computed In terns of Southern Rhodeslan currency 
at the rate determined by the Minister under sub-section (3) of this 
section, on the other hand. 

Provided that the dumping duties levied under this section on 
any goods shall collectively not exceed one-half of the value of such 
goods for purposes of duty as detezmlned under section (10) of this 

Act. 



- 105 - 



EXHIBIT 9 



Antidumping Provisions of the South African 
Customs Tariff and Excise Duties Amendment Act, 1925 
as amended In 1931, 1933, 1934, 1936 and 1937i/ 



Chapter 2 
15. Imposition of dumping duty: 

(1) Whenever after Investigation and report by the Board of 
Trade and Industries, the Minister Is satisfied that goods ivhl6h are 
of a class or kind produced or manufactured In the Ifclon have heeii 
or are being or are likely to be exported to ttie Uhlon - 

(a) At an export price which Is less than the domBstlc valus 
thereof plus the extra cost of packing and packages for export, 
carriage to the port of shipment, and all other expenses Inci- 
daitai to placing the goods on board ship ready for exportation 
to the lAilon; 

(b) S/ 
(0)2/ 

(d) That they are being sold or offered for sale at a port of 
entry or at any other place in the Union in the usual and 
ordinary course of trade for an amount which Is less than the 
donestlc value thereof plus the extra cost of packing and 
packages for export. Inland carriage, sea freight. Insurance 
and all charges to that port or place, including landing trans- 
portation and delivery charges and any duty (other than a dumping 
duty) payable under this Act or any amendment thereof; or 

(e) That a bounty has been or will be granted In respect of such 
goods In the country In which they were produced or manufactured 
or from v\^lch they were exported, by way of a bonus, rebate, sub- 
sidy or othemlse, whether granted by a Government or other 
authority or person; and Is further of opinion that detriment may 
from one or more of the above causes result to an Industry within 

1. Law No. 36 of 1925, No. 49 of 1931, No. 27 of 1932, No. 40 of 
1934, No. 25 of 1936, and No. 52 of 1937. 

2. Sub-section (b) In re exchange dumping repealed by Act of 1931. 

3. Sub-section (c) In re freight dumping repealed by Act of 1936." 



- 106 - 



the Union, and that It would be In the public Interest to Impose 
In respect of such goods a dumping duty, the Governor General may 
by proclamation In the Gazette notify the class of goods and 
declare that one or more of the dumping duties enumerated In sub- 
section (2), and set forth In such proclamation, shall be levied 
upon goods of such class on importation Into the Union from a 
country or countries named In the proclamation; and from and 
after the date of pvtollcatlon of such proclamation In the Gazette 
such dumping duty or duties shall. In addition to any other duties 
payable thereon, be charged, levied, collected and paid on goods 
so notified m importation into the Union from the countries 
rmmdt 

(1) No dumping duty or duties shall be Imposed in terms of 
this sub-sectlcn in respect of goods shipped to the Union 
from the countxy nfimed in the proclamation prior to the date 
of pid^lication thereof in the Gazette , and 

(ii) Such duty, or wAiere there is more than one form of 
(tmplngf the total of such duties in terns of this sub-section, 
shall not exceed one-half of the value Of the goods for duty 
purposes, as defined in section 14 of this Act. 

(2) The dumping duties which may be imposed in terns of sub- 
section (1) shall be the following: 

(a) "Ordinary" dumping duty, which shall be the difference 
between the export price and the domestic value plus the extra 
cost of packing and packages for export, carriage to the port 
of shipment, and all other expenses incidental to placing the 
goods on board ship ready for exportation to the Union: 
Provided , That such difference Is greater than 5 per centum of 
the export price; Provided, further, that In respect of any 
particular class or kind of goods the ordinary dumping duty 
may be limited to a percentage of the value for duty purposes, 
or alternatively to a specific rate per unit of quantity, 
volume or weight, such percentage of alternative specific rate 
to be determined by the Governor General and notified by him by 
proclamation in the Gazette. 

(I))!/ 

(d) "Sales" dimping duty, which shall be the difference between the 
selling price in the Uhion and the dcmestic value plus the expenses 
and charges set forth in paragraph (d) of sub-section (1); 

1. Sub-section (b) In re exchange dumping, repealed by Act of 1931. 

2. Sub-section (c) In re freight dumping, repealed by Act of 1936. 



- 107 - 



i 
f 



(e) "Bounty" dunping duty, which shall be the amount of the 
bounty referred to in paragraph (e) of sub-section (1). 

(3) 1/ Whenever after investigation and report by the Board of 
Trade and Industries the Minister is satisfied that the exchangis 
value of the currency of the country of origin or export of goods 
imported into the IMon, is depreciated in relation to Uhion 
currency and is of the opinion that by reason of such depreciaticm 
goods of a class or kind manufactured or produced in the Uhion are 
being imported into the Uhion at prices which are detriamtal to an 
industry in the Ifaion and is further of the opinion that it would 
be in the pijblic interest to impose, in respect of such goods, a 
dunping duty, the Minister shall from time to time detemine the 
rate at which the currency of such comtry shall be computed in terms 
of Iftiion currency for the purposes of assessing the dmping duty 
referred to in siib-section (4) and he shall thereupon notify in the 
Gazette the rate so detemined and the class or kind of goods to 
which such duty shall apply. 

(4) 2/ If after the Issue of such notification any person Imports 
from such country Into the Union any goods of a class or kind so 
notified, there shall be charged, levied, collected and paid on such 
goods on their Importation Into the Union In addition to the duties 
otherwise prescribed, an exchange dumping duty equal to the differ- 
ence between the cost free on board at the port of shipment of such 
goods to the Importer In Union currency on the one hand and such 
cost, expressed In the currency of the country of origin or export 

of such goods computed In terns of Union currency at the rate deter- 
mined by the Minister under sub-section (3) on the other hand. 

Provided, 3/ that the Minister may in his discretion in respect 
of any particular class or kind of goods, limit such dumping duty to 
a percentage of the aforesaid difference or alternatively to a 
specific rate per unit of quantity, volume or weight, such percent- 
age or alternative specific rate to be detemined by the Minister and 
notified by htm in the Gazette. 

(5) 1/ In the case of goods exported to the Uhicm on consigEB^nt 
account, or for which nominal prices are charged or for which no 
charge is made, the cost free on board at the port of ^pMit shall 
for the purposes of sub-section (4) be taken to be the price free on 
board at which similar goods are ordinarily sold for export, or, if 
there be no such price, then the value of such goods as detemined 
for purposes of duty in terns of section fourteen. 



1. Added by JLet of 1631. 

2. Added by Act of 1931. 

3. Added by Act of 1936. 

4. Added by Act of 1932. 



106 



(6) 1/ Mtmnvmr aftor IxnrestlgatKxi and r^rt tho Botrd of 
Trad© and Industries the Minister Is satisfied - 

(a) that goods which are of a class or kind produced or nanu- 
factured In the Union have been or are being or are likely to 

be exported to the Union from a particular country or port of 
shipment at a rate of freight or at freight charges less than 
the rate of freight certified by the South African Shipping 
Board as being the nonnal freight rate chargeable on that class 
or kind of goods from that country or port; 

(b) that such reduction Is exceptional in character; 

(c) that detriment to an Industry wimn the Union may result 
from such reduction; and 

(d) that It would be In the public Interest to Impose a freight 
danplng duty In respect of such goods, 

the Minister may from time to time determine the minimum rate of 
freight which shall be applicable to goods of that class or kind 
shipped from that country or port to any of the several ports of 
discharge In the Union or to any of the several ports In Africa 
at which goods are discharged for removal overland to the Union; and 
he shall thereupon notify the same In the Gazette: provided that the 
minimum rate so determined and notified shall In no case exceed the 
noraal freight rate as certified In terns of paragraph (a). 

(7) 2/ If after the issue of such notification any person Imports 
Into the Union any goods of a class or kind to which In terms thereof 
any such mlnlmim rate Is applicable, there shall. If such goods have 
been shipped frcm any such country or port to any such port of dls- 
chBtrge at a rate of freight or freight charges less than the minimum 
rate so determined and notified In respect of goods of that class or 
kind shipped trcm that country or port to that port of discharge, be 
(diarged, levied, collected and paid on such goods on their Importa- 
tlcm Into the Iftilon, In addition to the duties otherwise prescribed, 
a freight dumping duty equal to the difference between the rate of 
frelglit or freight Charges actually paid and the mlnlmim rate of 
frelgSit so determined and notified. 

(8) ^/ A duBplng duty Imposed under this section shall not apply 
to goods a<l&ltted Into the Itolon under rebate of customs duties In 
terns of section two, unless In the case of a duaplng duty Imposed 
under sub*sectlon (1), the Gk)rrernor General by proclamation has 
declared, or. In the case of a dmplng duty Imposed under sul)-sectlon 
(4) or (7) the Minister has notified In the Qasette that the dumping 
duty shall apply to such goods. 

1. Added by Act of 1936. ' 

2. Added by Act of 1936. 



r 



- 109 - 

16. Special Duaplng Duties on Wheat and Flour. 

17. Period during v*ilch Fomer Duties Remain Effective. 

18. Indemnity for Non-Collection of Dumping Duty on Certain 
Hour. 

•*«•*•«««««» 

19. Definitions: In this Chapter, unless inconsistent with 
tae context - . 

■export price" means the price free on board at which goods 
are sold by the exporter to the Importer In the Union; and 
In the case of goods on consignment account or for which no 
charge is made, one-half of the value of the goods as deter- 
mined for purposes of duty In terns of section fourteen; 

"domestic value"!/ means the domestic value as defined In 
section fourteen, less any drawback of duty granted by the 
Government of the exporting country In respect of the goods 
In question on their exportation; but In the application of 
the definition to paragraph (a) of sub-section (1) and 
. paragraph (a) of sub-section (2) of section fifteen for the 
words "time of exportation" there shall be substituted the 
words "date of purchase thereof by the lagjorter," except In 
the case of goods exported to the Iftilon on conslgnmt 
account or for whlQH no charge is made; 

"ballast rates" means special rates chargeable on any goods 
shipped as ballast or stlffailng for any vessel, and being 
lower than the rates cn^rgeable on those goods imen carried 
as ordinary cargo. 

Special DiiQ>ing Duty <m Flour 



Special Customs Duty on Wheaten Flour and Meal^^ 



1. Definition of "domestic value" amended by Act of 1936. 

|. Sec. 2 of the Act of 1926. This duty Is not now In operation. 

3. Sec. 2 Of the Act of 1931. Foxauxua. 



- no - 

Special Customa Duties on Wheat, Wheatwi Flour and 
Wheaten Meal.i/ 



Special Custcms Duty on Oats*^ 

Subject to the exemptions, and to any suspensions, rebates, and 
conditions permitted or provided for by the principal Act, there 
shall be charged, levied, collected and paid on oats In the grain on 
importation Into the Union, In addition to the duties set out In the 
First Schedule to that Act, as amended by this Act, a special customs 
duty per cental equal to the amount by which seven shillings exceeds 
the cost per cental to the Importer at the port of Importation In the 
mion, which shall Include the cost of packing, packages, landing 
Charges, dock dues and the duties otherwise payable thereon: Provided 
that the cost of such oats per cental to the Importer, free on board 
at the port of shlpient, or if the oats have been Imported overland 
free on railway truck or other vehicle at the place of despatch, 
8^11 be taken to be a sum not greater than the ordinary market price 
for export per cental at the time of purchase expressed In Union 
currency, of similar oats free on board at the port of shipment, or 
free m railway trwk or other vehicle at the place of despatch (as 
ttm ease may be. ) 

Special Duties on Iron and Steel Products.^ 

(1) WheneTer, after report by the Board of Trade and Industries, 
the mnlster is satisfied that iron and steel products of any par- 
ticular class or kind manufactured In the Union have been or are 
being or are likely to be exported to the Union at a prl ce that would 
cause detriment to the Iron and steel Industry In the Union, and is 
further of the opinion that it would be in the piDlic interest to 
levy in respect of such goods a special duty, the Minister may, from 
time to time diieimlne in respect of that particular class or kind of 
Iron and steel products, a price on board ahlp at any of the several 
ports of discharge in the UHlon, or at any of the several ports in 
Africa at i^ich goods are discharged for removal overland to the 
Union, below whlCh price that class or kind of goods shall not be 
imported into the Vnlom through that port; and he shall thereupon 
notify the same in the Gazette: Provided that the price so deter- 
mined and notified shall be an amount which, in the opinion of the 
Minister, based up<wi a report made by ttos Board of Trade and 
Industries, does not exceed the fair average price on the world's 
markets, plus normal Insurance and freight charges to the port of 
discharge. 



1. Sec. 3 of the Act of 1931. 

2. Sec. 8 of the Act of 1934. 

3. Sec. 9 of the Act of 1936, as amended by the Act of 1987. 



- Ill - 



(2) If, after the issue of su<m notification, any person Imports 
Into the Ifalon any goods of a class or kind, to which m terns 
thereof such price is applicable, at a c.i.f. price which is less 
than the price so determined and notified, in respect of the port of 
dlwdiaxtse of such goods, there shall be charged, levied, collected 
and paid on such goods on importation into the Union, in addition to 
any other duties payable thereon, a special duty, equal to the differ- 
ence between the said c.i.f. price and the price so aetemlned and 
notified. 

(3) If, after the Issue of such notification any goods of a 
class or kind to which in terns thereof such price Is applicable, 
are sold or offered for sale by the Importer or any other person's© 
determined and notified plus landing, transportation and delivery 
charges and the duties payable under the principal Act and this Act 
there shall be charged, levied, collected and paid on such goods In' 
respect of their sale, a special sales duty which shall be equal to 
the difference between the selling price and the price so determined 
and notified plus the charges and duty mentioned In this sub-section, 
and which shall be payable by the person so selling such goods or 
offering such goods for sale: Provided that the Minister may, if he 
Is satisfied that the goods have deteriorated In quality or value 
after Importation, reduce. In respect of such goods, the price so 
determined, and notified, and the special sales duty up<m such goods 
shall thereupon be charged, levied, collected and paid accordingly. 

(4) For the purposes of this section, "c.i.f. price* shall mean 
the price paid by the Importer for the goods on board ship at the 
port of discharge Including Insurance and freight charges, or the 
export price as defined In section nineteen of the principal Act 
together with Insurance and freight charges paid or to be paid for 
conveyance of t he goods to the port of discharge. 

(5) No special duty or special sales duty shall be payable under 
this section In respect of goods which were mpped to ttie Uhlon on 
or before the twenty-second day of May, 1936, or ^Ith the 
Commissioner of Customs Is satisfied were purchased or ordered before 
that date for shipment to the Uhlon in order that they may be u^ 

In the fulfilment of contracts entered into before the twenty-second 
of May, 1936, for the erection of buildups or constructional works. 

(6) The Minister shall, in the course of each ordinary sesslcm 
of Parliament, lay tqson the Tftblies of both Houses of Parliament a 
report showing the prices charged by producers In the Ifalon for the 
classes and kinds of iron and steel products in reject of imich a 
price has been determined and notified in temis of this section, and 
the prices charged for those classes and kinds of goods by producers 
In the principal comtries from irtiich bvucH goods are exported to the 
Union. : . . .... . . . . 



COLUMBIA UNIVERSITY UBRARIES 




I 




0041437128 



I 





r.ii1irriwSi>- 



JUL I1 1940