03-4460. Certain Steel Wire Garment Hangers From China

Determination

On the basis of information developed in the subject investigation, the United States International Trade Commission determines, pursuant to section 421(b)(1) of the Trade Act of 1974,^[1] that certain steel wire garment hangers ^[2] from the People's Republic of China are being imported into the United States in such increased quantities or under such conditions as to cause market disruption to the domestic producers of like or directly competitive products.

Recommendations on Proposed Remedies

Chairman Deanna Tanner Okun, Vice Chairman Jennifer A. Hillman, and Commissioner Marcia E. Miller propose that the President impose a duty, in addition to the current rate of duty, for a three-year period, on imports of the subject steel wire garment hangers from China as follows: 25 percent ad valorem in the first year, 20 percent ad valorem in the second year, and 15 percent ad valorem in the third year of relief. They further recommend that, if applications are filed, the President direct the U.S. Department of Commerce and the U.S. Department of Labor to provide expedited consideration of trade adjustment assistance for firms and/or workers affected by the subject imports.

Commissioner Lynn M. Bragg proposes that the President impose a duty, in addition to the current rate of duty, for a two-year period, on imports of the subject steel wire garment hangers from China as follows: 20 percent ad valorem in the first year, and 15 percent ad valorem in the second year of relief.

Commissioner Stephen Koplan proposes that the President impose a duty of 30 percent ad valorem, in addition to the current rate of duty, for a three-year period, on imports of the subject steel wire garment hangers from China. He further recommends that, if applications are filed, the President direct the U.S. Department of Commerce and the U.S. Department of Labor to provide expedited consideration of trade adjustment assistance for firms and/or workers affected by the subject imports.

The Commissioners each find that the respective actions that they propose are necessary to remedy the market disruption found to exist.

Background

Following receipt of a petition filed on November 27, 2002, on behalf of CHC Industries, Inc.; M&B Metal Products Co., Inc.; and United Wire Hanger Corp., the Commission instituted investigation No. TA-421-2, Certain Steel Wire Garment Hangers From China, under section 421 of the Trade Act of 1974 to determine whether certain steel wire garment hangers from China are being imported into the United States in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products.

Notice of the institution of the Commission's investigation and of the scheduling of a public hearing to be held in connection therewith was given by posting a copy of the notice on the Commission's website (www.usitc.gov) and by publishing the notice in the Federal Register of December 6, 2002 (67 FR 72700). The hearing was held on January 9, 2003, in Washington, DC; all persons who requested the opportunity were permitted to appear in person or by counsel.

The views of the Commission are contained in USITC Publication 3575 (February 2003), entitled Certain Steel Wire Garment Hangers from China: Investigation No. TA-421-2.

By order of the Commission.

Issued: February 20, 2003.

Marilyn R. Abbott,

Secretary to the Commission.

Footnotes

1.  19 U.S.C. 2451(b)(1).

2.  For purposes of this investigation, certain steel wire garment hangers consist of garment hangers, fabricated from steel wire in gauges from 9 to 17, inclusive (3.77 to 1.37 millimeters, inclusive), whether or not galvanized or painted, whether or not coated with latex or epoxy or other similar gripping materials, and whether or not fashioned with paper covers or capes (with or without printing) and/or nonslip features such as saddles, tubes, or struts. After fabrication, such hangers are in lengths from 7 to 20 inches, inclusive (177.8 to 508 millimeters, inclusive), and the hanger's length or bottom bar is composed of steel wire and/or saddles, tubes or struts. The product may also be identified by its commercial designation, referring to the shape and/or style of the hanger or the garment for which it is intended, including but not limited to shirt, suit, strut, and caped hangers. Specifically excluded are wooden, plastic, aluminum, and other garment hangers that are covered under separate subheadings of the HTS. The products subject to this investigation are classified in subheading 7326.20.00 of the HTS and reported under statistical reporting number 7326.20.0020. Although the HTS subheading is provided for convenience and Customs purposes, the written description of the merchandise is dispositive.