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UNITED STATES TARIFF COMMISSION
MEN'S, WOMEN'S, CHILDREN'S AND INFANTS' SLIPPERS: FORMER WORKERS OF THE DOLLY NOVELTY SHOE CO. , INC. ,
CLIFTON, N. J.
Report to the President on Investigation No. TEA-W-229
Under Section 301(c)(2) of the Trade Expansion Act of 1962
TC Publication 666 Washington, D. C.
April 1974
UNITED STATES TARIFF COMMISSION
COMMISSIONERS
Catherine Bedell, Chairman Joseph 0. Parker, Vice Chairman Will E. Leonard, Jr. George M. Moore J. Banks Young Italo H. Ablondi
Kenneth R. Mason, Secretary to the Commission
Address all communications to
United States Tariff Commission
Washington, D. C. 20436
CONTENTS
Page
Report to the President- - -
Finding of the Commission Views of Chairman Bedell, Vice Chairman Parker
and Commissioners Moore and Ablondi Views of Commissioners Leonard and Young
Information obtained in the investigation: Description of articles under investigation U.S. tariff treatment:
Applicable TSUS items Rates of duty
U.S. consumption, production, and foreign trade Distribution of slippers by wholesale price range U.S. and foreign wage rates Data relating to Dolly Novelty Shoe Co., Inc.:
* * *
Statistical appendix
A-25
Appendix Tables
1. U.S. rates of duty applicable to footwear of the types provided for in specified TSUS items, July 1, 1934, and GATT concessions to Jan. 1, 1972
2. Certain footwear with uppers of rubber or plastics (item 700.55): U.S. rates of duty and imports for consumption, 1964-73
3. Rubber- or plastic-soled footwear with fabric uppers (item 700.60): U.S. rates of duty and imports for consumption, 1964-73
4. U.S. production of house slippers, by types, 1964-73
A-27
A-29
A-30 A-31
Note.--The whole of the Commission's report to the President may not be made public since it contains information that would result in the dis-closure of the operations of an individual concern. This publi shed report is the same as the report to the President, except that the abo ve-mentioned information has been omitted. Such omissions are indicated by asterisks.
1 2
3 6
A-1
A-3 A-5 A- 8 A-12 A-I3
REPORT TO THE PRESIDENT
U.S. Tariff Commission April 26, 1974
To the President:
In accordance with sections 301(f)(1) and (f)(3) of the Trade
Expansion Act of 1962 (19 U.S.C. 1901), the U.S. Tariff Commission
herein reports the results of investigation No. TEA-W-229 made
under section 301(c)(2) of the Act to determine whether, as a
result in major part of concessions granted under trade agreements,
articles like or directly competitive with slippers (of the types
provided for in items 700.35, 700.43, 1/ 700.55, 700.70, and 700.80
of the Tariff Schedules of the United States) produced by Dolly
Novelty Shoe Co., Inc., Clifton, New Jersey, are being imported in,1
the United States in such increased quantities as to cause, or
threaten to cause, the unemployment or underemployment of a sig-
nificant number or proportion of the workers of such firm or an
appropriate subdivision thereof.
The investigation was instituted on March 5, 1974, on the basis
of a petition for adjustment assistance filed under section 301(a)(2)
of the Act on behalf of the former workers of the firm.
Public notice of the investigation was published in the
Federal Register (39 F.R. 9585) on March 12, 1974. No public
hearing was requested and none was held.
1/ Although item numbers 700.35 and 700.43 of the Tariff Schedules of the United States were included in the notice of investigation, it was established during the course of the Commission's investigation that Dolly Novelty Shoe Co., Inc., did not produce articles of the types pro-vided for in those item numbers.
1
2
In the course of its investigation, the Commission obtained
information from the petitioners, officials and former customers
of Dolly Novelty Shoe Co., Inc., official government statistics,
and the Commission's files.
Finding of the Commission
On the basis of its investigation, the Commission unanimously
finds that articles like or directly competitive with slippers (of
the types provided for in items 700.55, 700.60, 1/ 700.70, and
700.80 of the Tariff Schedules of the United States) produced
by Dolly Novelty Shoe Co., Inc., Clifton, New Jersey, are not,
as a result in major part of concessions granted under trade agree-
ments, being imported into the United States in such increased quanti-
ties as to cause, or threaten to cause, unemployment or underemploy-
ment of a significant number or proportion of the workers of such
firm or an appropriate subdivision thereof.
1/ Item number 700.60 of the Tariff Schedules of the United States (TSUS) was not included in the Commission's notice of investigation. During the course of the Commission's investigation, however, it was established that Dolly Novelty Shoe Co., Inc., produced slippers of the types provided for in item 700.60 of the TSUS. Although formal notice was not given of item 700.60, relevant information was obtained with respect to the firm's production and imports of like or directly competitive articles and was used to reach a decision on the merits.
Views of Chairman Bedell, Vice Chariman Parker and Commissioners Moore and Ablondi
Our determination in this investigation is in the negative because
the criteria established by section 301(c)(2) of the Trade Expansion
Act of 1962 (TEA) have not been met. Before an affirmative determina-
tion can be made, the Commission must find that each of the following
considerations has been satisfied.
(1) Articles like or directly competitive with those produced by the workers' firm are being imported in increased quantities;
(2) The increased imports are the result in major part of concessions granted under trade agreements;
(3) A significant number or proportion of the firm's workers are unemployed or underemployed, or threatened therewith; and,
(4) The increased imports resulting from trade-agreement concessions are the major factor in causing or threatening to cause the unemployment or under-employment of the workers.
In the instant case, we find that condition (4) has not been
satisfied; namely, increased imports resulting from trade-agreement
concessions of articles like or directly competitive with footwear
produced by the Dolly Novelty Shoe Co., Inc., Clifton, N.J. have
not been the major factor causing, or threatening to cause, the
unemployment or underemployment of the Dolly Novelty Shoe Co., Inc.,
workers. Our determination is based on the following considerations:
The Dolly Novelty Shoe Co., Inc., Clifton, N.J., ceased production
in February, 1973. It manufactured soft soled slippers for men, women,
children, and infants which it sold at prices ranging from $0.90 to
$2.35 per pair.
The Commission's investigation disclosed that the company had
become unprofitable for causes other than concession generated
increased imports and that the co-owners, who founded the business
in 1933, were not inclined to continue in business.
Several factors contributed to the firm's losses. Increases
in raw material costs in face of a declining market for the tradi-
tional' soft soled house slippers, the type made by the Dolly Novelty
Shoe Co., added to the losses.
The slipper market of today is considerably different than the
house slipper market of 25 years ago. Consumers no longer draw a
sharp line between slippers and shoes; the slipper is not confined
to indoor use. The emphasis is now upon leisure and consumers
generally want an easy relaxed casual look in footwear. For some
uses, shoes have come to represent slippers to many people and vice
versa. In other words, casual shoes have walked indoors to become
house slippers. Conversely, many slippers sold for indoor wear
have "walked out of the house, onto the patio, and onto city and
suburban streets."
With the blurring of the distinction between slippers and
casual footwear, the term "house slipper" has declined in populari-
ty since it does not convey to the consumer the conception of
slippers as leisure footwear. A variety of terms, e.g., furries,
paddies, wedgies, scuffs, moccasins, fluffies, barebacks, clogs, at
home footwear, espadrilles, slip-ons, and leisure shoes, are being
used to describe the footwear of the slipper market.
The use and styles of slippers have increased as a result of
new materials, technological developments in production, and new
fashions in wearing apparel.
The slippers produced by Dolly Novelty were the traditional
style house or bedroom slipper, that is, a loose fitting slip-on
not held to the foot by laces or straps and not intended for out-
door use. The market for consumption for this type of slipper has
progressively declined for a number of years. Despite the possi-
ble opportunities for increased sales in the more modern slipper
market, the firm stayed with its traditional styling and sales
declined.
Conclusion
On the basis of the foregoing, we conclude that imports were not
the major factor causing, or threatening to cause, the unemployment
or underemployment of the petitioning workers and therefore we have
made a negative determination.
6
Views of Commissioners Leonard and Young
Our determination in the instant case is negative because one
of the statutory criteria has not been met, i.e., that the increase
in imports of footwear like or directly competitive with that pro-
duced by Dolly Novelty Shoe Co., Clifton, N.J., is the result in
major part of concessions granted under trade agreements. Our
reasoning in support of this determination is set forth in state-
ments of our views in earlier Commission investigations under the
Trade Expansion Act. 1/
1/ Commissioners Leonard's views are given in Nonrubber Footwear: Report to the President on Investigation No. TEA-I-18 . . TC Publication 359, 1971, pp. 31-47, and Commissioner Young's views are given in Women's Dress and Casual Shoes: Duchess Footwear Corp. . . .: Report to the President On Firm Investigation No. TEA-F-39 and Worker Investigation No. TEA-W-139 . . TC Publica- tion - 491, 1972, pp. 11-25.
A-1
INFORMATION OBTAINED IN THE INVESTIGATION
Description of Articles Under Investigation
Dolly Novelty Shoe Co., Inc., Clifton, N.J., which ceased pro-
duction in February 1973, produced men's, women's, children's, and
infants' soft-soled slippers. The slippers had uppers of vinyl or
fabric; the soles were made of vinyl or composition material. Dolly
Novelty also formerly produced slippers with leather uppers, but because
of increases in leather prices in recent years, the firm discontinued
the production of leather slippers about 1970. Women's slippers
accounted for about 50 percent of the total output; men's slippers,
for about 30 percent; and children's and infants' slippers, for the
remainder. In recent years the bulk of the slippers produced by Dolly
Novelty were sold at retail prices ranging from $0.99 to $3.99 a pair.
The slippers produced by Dolly Novelty were the traditional style
house or bedroom slippers, that is, loose-fitting slip-ons not held
to the foot by laces or straps and not intended for outdoor use. The
slippers were constructed primarily by the soft-sole method, in which
the upper and outsole are stitched together while inside out. The cement
process was also used by Dolly Novelty, but to a much lesser degree.
The cement process of slipper or shoe construction involves holding the
outsole in place by means of an adhesive without stitching or tacking
in the bottom assembly. Most domestic and imported slippers similar
to the types once produced by Dolly Novelty are made by the soft-sole
or cement method of construction.
A-2
The slipper market of today is considerably broader than the house-
slipper market of 25 years ago. Consumers no longer draw a sharp
line between slippers and shoes; the slipper is not confined to indoor
use. The emphasis is now upon leisure, and consumers generally want an
easy, relaxed, casual look in footwear. For some uses, to many people
shoes have come to represent slippers and vice versa. In other words,
casual shoes have walked indoors to become house slippers. Conversely,
many slippers sold for indoor wear have walked out of the house, onto the
patio, and onto city and suburban streets.
With the blurring of the distinction between slippers and casual
footwear, the term "house slipper" has ieclined in popularity, since
it does not convey to the consumer the conception of slippers as leisure
footwear. A variety of terms, e.g., "furries," "paddies," "wedgies,"
"scuffs," "moccasins," "fluffies," "barebacks," "clogs," "at-home foot-
wear," "espadrilles," "slip-ons," and "leisure shoes," are being used
to describe the footwear of the slipper market.
The uses and styles of slippers have increased as a result of
new materials, technological developments in production, and new
fashions in wearing apparel. Simultaneously, consumer interest in a
wide variety of footwear (as well as clothing) has increased, reflecting
the changing age structure of the population, increasing per capita
income, and a greater amount of time for leisure activities.
A-3
U.S. Tariff Treatment
Applicable TSUS items
In the Tariff Schedules of the United States (TSUS) the term "slippers"
(item 700.32) is defined as "footwear of the slip-on type without laces,
buckles, zippers, or other closures, the heel of which is of underwedge
construction, and (1) having a leather upper permanently trimmed with
a real or imitation fur collar, or (2) having a leather upper and a
split leather tread sole (including heel) held together by a blown
sponge-rubber midsole created and simultaneously vulcanized thereto."
In recent years only about 10 percent of the output of the domestic
house-slipper industry (SIC product code 3142) has consisted of leather
slippers of the types provided for in TSUS item 700.32. Currently,
the great bulk of the domestic output of slippers consists of types of
footwear described in various other TSUS items, e.g., 700.35, 700.43,
700.45, 700.55, and 700.60. The first three of these items (as well
as item 700.32) provide for leather footwear; as indicated previously,
Dolly Novelty Shoe Co., Inc., discontinued producing slippers with
uppers of leather about 1970. Imported slippers that most closely
resemble those produced by Dolly Novelty during the last few years
of the firm's operations enter predominantly under TSUS items 700.55.
and 700.60.
1/ Leather slippers made by the turn process are entered under TSUS item 700.20,and certain slippers with uppers of fibers are entered under items 700.66 to 700.80. However, imports of such slippers are believed to be small.
A-4
TSUS item 700.55 provides for various types of footwear of rubber
or plastics, including soft-sole footwear, the type of slippers produced
by Dolly Novelty. Imports under this item consist predominantly of
shoes, sandals, and other casual footwear with uppers of supported
vinyl that are produced one width to a length for sale at self-service
counters in variety stores, so-called discount stores, and department-
store basements. Folding slippers, scuffs, and other inexpensive
slippers account for a significant part of the total annual imports
under this item; such slippers generally retail at $2 to $3 per pair.
TSUS.item 700.60 provides for various types of footwear of fibers
and rubber or plastics. The footwear admitted under item 700.60 is
subject to valuation for duty purposes on the basis of the American selling
price (ASP) of the "like or similar" domestic footwear. If there is no
"like or similar" domestic footwear, the imports admitted under this
item are subject to valuation under the regular valuation provisions
of the U.S. tariff schedules. Nearly all of the imports entered under
TSUS item 700.60 and valued by the U.S. Customs Service on the ASP
basis have consisted of footwear with uppers of fibers (canvas) and soles
of rubber or plastics in the traditional styles of sneakers. The
imported footwear admitted under item 700.60 for which the Customs
Service has found no "like or similar" domestic product has included
a large volume of slippers, scuffs, sandals, and other types of
inexpensive casual footwear, as well as some sneakers. The slippers
entered under TSUS item 700.60, which have fabric uppers with rubber or
plastic soles, have generally retailed for less than $3 per pair.
Imports entered under TSUS items 700.35, 700.43, and 700.45
A-5
consist of leather footwear in a wide range of styles, types, and prices.
Produced principally by the cement process, these imports range in
style from sandals and more sturdy types made in limited sizes for
sale at self-service counters to high-fashion types made in the same
detailed sizes and sold in the same outlets as domestic leather shoes.
The footwear admitted under TSUS item 700.35 is for men, youths, and
boys; and that under TSUS items 700.43 and 700.45 is for women, misses,
children, and infants. Item 700.43 provides for footwear having a
foreign (export) value not over $2.50 per pair; item 700.45, for more
expensive footwear. Although exact data are not available, it is
believed that imports of leather slippers entered under these three
item numbers have been small.
Rates of duty
The original schedules of the Tariff Act of 1930 did not specifically
provide for the types of footwear of rubber or plastics that now
constitute the bulk of the imports admitted under TSUS item 700.55. Prior
to the effective date of the TSUS, imports of such footwear, which were
dutiable under various provisions of the Tariff Act, were classified
principally--
(1) By similitude, at the rate of 20 percent ad valorem applicable to leather footwear provided for in paragraph 1530(e). 1/
(2) Under paragraph 1537(b) as articles in chief value of rubber, at the trade-agreement rate of 12.5 percent ad valorem, where the soles were of india rubber and constituted the chief value of the footwear in question.
(3) Under paragraph 1539(b) at the reduced rate of 21 cents per pound plus 17 percent ad valorem where the footwear was in chief value of a product having a synthetic resin as the chief binding agent.
1/ The principal kinds of footwear with vinyl uppers now being imported (i.e., those with soles of vinyl or other plastics) would have been duti-able by virtue of the similitude provision at a rate of 20 percent ad valorem.
A-6
(4) In the early 1960's increasing quantities of plastic folding slippers of types now included in item 700.55 were dutiable under paragraph 1530(e), by similitude to leather slippers for housewear, at 10 percent ad valorem (a trade-agreement rate).
In the TSUS a rate of 12.5 percent ad valorem was established for if em
700.55 as the trade-agreement rate to replace the wide range of rates pre-
viously applicable to the various types of footwear provided for in this
item. 1/ The current rate on footwear entered under item 700.55 is 6 per-
cent ad valorem, reflecting the final stage of a five-stage Kennedy
Round concession.
Canvas footwear (tennis shoes and sneakers), which is provided for
in item 700.60, was originally dutiable at the rate of 35 percent ad valorem
under paragraph 1530(e). Effective March 3, 1933 (T.D. 46158), the basis
for assessing the statutory rate was changed from foreign (export) value
to the "American selling price" (as defined in sec. 402(g) of the 1930 act)
of like or similar articles produced in the United States. Pursuant to a
concession granted under the General Agreement on Tariffs and Trade
(GATT), the rate of duty on canvas footwear was reduced to 20 percent of
the American selling price, effective September 10 ? 1955; the rate of duty
is the same at the present time. Footwear entered under item 700.60 that is
not like or similar to domestic articles, and therefore not subject to
ASP valuation, is dutiable at 20 percent of the export value. 2/ Such
footwear includes a substantial quantity of inexpensive slippers.
1/ The col. 2 rate of duty for item'700.55 is 35 percent. 2/ Rubber-soled fabric-upper footwear is on the "final list" published
by the Secretary of the Treasury pursuant to sec. 6(a), Public Law 927 (84th Cong., 2d sess.) (T.D. 54521). Such footwear is therefore subject to valuation under sec. 402(a), Tariff Act of 1930, as amended. Gen-erally speaking, in the absence of an ASP valuation, the valuation would be based' on the export value.
A-7
The rate of duty originally applicable under paragraph 1530(e) of
the 1930 Tariff Act to leather footwear of the types now included in TSUS
items 700.32, 700.35, 700.43, and 700.45 was 20 percent ad valorem. From
1930 until January 1, 1948, the effective date of the earliest concessions
granted by the United States under the GATT, only one tariff concession was
granted on these types of footwear; effective January 30, 1943, the rate on
the footwear for men, youths, and boys (now in item 700.35) was reduced
from 20 percent to 10 percent pursuant to a bilateral agreement with
Mexico„ which was terminated effective December 31, 1950. The 10-percent
rate was restored, however ' effective June 6, 1951, pursuant to a GATT con-
cession. Currently, the footwear admitted under item 700.35 is dutiable
at 8.5 percent ad valorem, the rate reflecting the final reduction pursuant
to a three-stage Kennedy Round concession.
On women's, misses', children's, and infants' leather footwear of the
types now provided for in TSUS items 700.43 and 700.45, the rate of duty
remained at 20 percent ad valorem until January 1, 1968, when the first
stage of the five-stage Kennedy Round concessions granted under the GATT
became effective. These concessions provided for annual reductions of
1 percentage point in the rate applicable to such footwear valued not over
$2.50 per pair. The corresponding reductions in the rate applicable to
the more expensive footwear were 2 percentage points, The current rate
for item 700.43 is 15 percent, and that for item 700.45.is 10 percent.
The rate of duty on leather slippers entered under TSUS item 700.32
was reduced to 10 percent ad valorem pursuant to a concession granted by
the United States in the GATT, effective January 1, 1948. As a result of
a concession granted in the Kennedy Round of negotiations under the GATT,
A-8
the rate was further reduced in five annual stages to the current 5
percent ad valorem.
The current rates of duty on slippers and other footwear with
fabric uppers, dutiable under items 700.66 to 700.80, range from 7 per-
cent to 15 percent ad valorem. Table 1 in the appendix shows the
reduction in rates of duty resulting from trade-agreement concessions
granted under the GATT for footwear of the types now dutiable under
specified TSUS items, including 700.32, 700.35, 700.43, 700.45, 700.55,
700.60, and 700.66 to 700.80. Tables 2 and 3 show U.S. rates of duty and
imports admitted under the two principal TSUS items--700.55 and 700.60--
that provide for slippers of the types formerly produced by Dolly
Novelty Shoe Co., Inc.
U.S. Consumption, Production, and Foreign Trade
Official data with respect to U.S. consumption of slippers are not
available. Data on production and exports by the domestic house-slipper
industry (SIC code 3142) are available, but U.S. imports of such slippers
are not separately reported in official statistics. Imports of the
restrictive category of leather slippers entered under TSUS item 700.32
are small, and imports of slippers entered under other TSUS item numbers
account for an unknown portion of the total annual imports admitted
under such item numbers.
U.S. production of slippers increased without interruption from
79 million pairs in 1964 to 105 million pairs in 1968, declined to 96
million pairs in 1970, and again increased, to 98 million pairs
A-9
in 1971 and 1972 to an estimated 99 million pairs in 1973. Women's slippers
account for about two-thirds of the total domestic output; only about
a tenth of the total corresponds to the types of leather slippers imported
under TSUS item 700.32 (table 4). The graph on the following page shows
that total annual production of slippers was fairly stable during the
1969-73 period. 1/
U.S. exports of house slippers have been quite small in recent years,
averaging about 220,000 pairs annually during 1969-73. Such exports were
equivalent to 0.2 percent of annual production in each of these
years.
As stated previously, imports of leather slippers entered under TSUS
item 700.32 are small; such imports declined without interruption from
357,000 pairs in 1969 to 85,000 pairs in 1973. Imports of leather slip-
pers entered under items 700.35, 700.43, and 700.45 are believed to
account for a very small portion of the total annual imports admitted
under each of these item numbers.
Annual imports of soft-sole footwear (similar to the slippers pro-
duced by Dolly Novelty) entered under TSUSA item 700.5523 averaged about
1.6 million pairs in 1969-73. Such footwear had an average dutiable
value of $1.19 per pair in 1973. In contrast to the imports of other foot-
wear admitted under TSUS item 700.55, those of soft-sole footwear have not
increased in the last decade (table 2). 2/ It should be noted, however,
1/ Monthly production of slippers generally peaks during October and reaches its low point in December. Except in July, which appears to be a vacation month, production usually increases regularly during January-October.
2/ Imports of "other" footwear shown in table 2 increased at an average
annual rate of almost 16 percent during 1964-73.
Million pairs
Total
WM 101 512 193
A-10
U.S. production of house slippers, by types, 1964-73.
Source: Official statistics of the U.S. Department of Commerce.
A-11
that item 700.55 includes imports of other inexpensive slippers of
plastics (but without soft soles). According to a customs officer in
New York City, slippers (of all types) account for an estimated 5 to 10
percent of the total imports admitted under this item number.
Slippers with uppers of fabrics and not dutiable on the ASP basis
of valuation are believed to account for a significant part of the total
annual imports entered under TSUS item 700.60. According to the same
customs officer in New York, slippers (including scuffs, espadrilles,.
and the like) account for an estimated 40 to 45 percent of the total imports
admitted under item 700.60. Total imports of footwear entered under
item 700.60 have more than doubled in the last decade, rising from 29 mil-
lion pairs in 1964 to 66 million pairs in 1973. As shown in table 3,
almost all of the increase occurred in footwear not subject to ASP valua-
tion. Non-ASP footwear entered under item 700.60 had an average unit
value of $1.00 in 1973.
*
A-12
Distribution of Slippers by Wholesale Price Range
Women's slippers accounted for about 50 percent of Dolly Novelty's total
production; men's slippers, for about 30 percent; and children's and
infants' slippers, for the remainder. As shown in the following table,
about 85 percent of domestic production of slippers in 1972 was sold at
the wholesale price of $3 or less per pair.
House slippers: Distribution of domestic production, by manufacturer's selling price, 1972
(In percentages) :Women, misses,
•
Total : Men, youths : children, •
: and boys : infants, and babies
Manufacturer's selling price 1/
• $1.00 or less : 4.9 : 2/ 5.7 $1.01 to $2.00 : 45.7 : - 20.5 : 51.9 $2.01 to $3.00 : 34.2 : 54.7 : 29.6 $3.01 to $4.00 : 9.5 : 7.7 : 12.8 $4.01 to $5.00 : 3.4 : 6.9 : 3/ $5.01 to $6.00 : 1.1 : 4.4 : 3/ $6.01 to $7.00 : .8 : 3.9 : 3/ $7.01 or more : .4 : 1.9 : T/
1/ The retail selling price is generally about twice the manufacturer's selling price.
2/ Combined with higher price line to avoid disclosing the operations of individual companies.
3/ Combined with lower price line to avoid disclosing the operations of individual compainies.
Source: U.S. Bureau of the Census, Footwear Production by Manufac-turers' Selling Price, 1972.
A-13
U.S. and Foreign Wage Rates
The table on the following page shows the average hourly earnings and
the estimated compensation per hour received by shoe workers in eight
countries in 1970, 1971, and 1972. While of some use in comparing the labor
costs of the shoe industries in the various countries listed, the table
has several shortcomings that make such comparisons inexact. First, in
only the United States, Italy, and Hong Kong is the industry definition
limited exclusively to footwear. In the other countries the industry classi-
fications are more encompassing. Second, as footnote 1 to the table
indicates, published hourly earnings in the various countries differ in
composition. Third, total compensation for workers includes varying factors
in the eight countries.
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Data Relating to Dolly Novelty Shoe Co., Inc.
A-24
* * * * * * *
A- 2 5
STATISTICAL APPENDIX
A-27
Table 1.--U.S. rates of duty applicable to footwear of the types provided for in specified TSUS items, July 1, 1934, and GATT concessions to Jan. 1, 1972
• • • •
Rate of duty
TSUS item No.
Abbreviated description • July 1, : : 1934 1/ :
GATT concessions 2/
Rate Effective dates
: Percent : Percent : : ad val. : ad val. :
: Leather footwear (except footwear • with uppers of fibers):
700.15 : Moccasins 20
700.20 :
•
Turn or turned : 10 3/
700.32 : Slippers : 20
• • • •
10 : Jan. 1, 1948.
: May 30, 1950-Dec. 31, 1967.
4 : Jan. 1, 1968-Dec. 31, 1969.
3 : Jan. 1, 1970-Dec. 31, 1971. 2.5 : Jan. 1, 1972.
10 :
▪
Jan. 1, 1948-Dec. 31, 1967.
9 : Jan. 1-Dec.' 31, 1968.
8 : Jan. 1-Dec. 31, 19694
7 : Jan. 1-Dec. 31, 1970.
6 : Jan. 1-Dec. 31, 1971.
5 : Jan. 1, 1972.
10 : June 6, 1951-Dec. 31, 1967. 9.5 : Jan. 1-Dec. 31, 1968.
9 : Jan. 1, 1969-Dec. 31, 1970. 8.5 : Jan. 1, 1971.
•
700.35 :
"Other" footwear (including cement process):
For men, youths, and boys : 20
• 700.43 :
For other persons: • Valued not over $2.50 per pair---: 20
• • • • • •
19 18 17 16 15
Jan. Jan. Jan. Jan. Jan.
1-Dec. 31, 1968. 1-Dec. 31, 1969. 1-Dec. 31, 1970. 1-Dec. 31, 1971. 1, 1972.
700.45 : Valued over $2.50 per pair
: 20 18 16 14 12 10
Jan. 1-Dec. 31, 1968. Jan. 1-Dec. 31, 1969. Jan. 1-Dec. 31, 1970. Jan. 1-Dec. 31, 1971 Jan. 1, 1972.
700.55 : Footwear having uppers of which over 90 percent of the exterior surface area is rubber or plastics (includ-ing supported vinyl)
700.60 Other footwear with uppers of fabrics and soles of rubber or plastics.
Princi-pally 20 4/
! 35 6/
5/ 12.5 11 10 8.5 7 6
6/ 20
Aug. 31, 1963-Dec. 31, 1967. Jan. 1-Dec. 31, 1968. Jan. 1-Dec. 31, 1969. Jan. 1-Dec. 31, 1970. Jan, 1-Dec. 31, 1971. Jan. 1, 1972.
Sept. 10, 1955.
Footwear with uppers of fibers: With soles of leather:
7/ 700.66 : Valued not over $2.50 per pair : 35 20 19 18 17 16 15
• : Apr. : Jan. : Jan. : Jan. Jan.
: Jan.
21, 1948-Dec. 31, 1967. 1-Dec. 31, 1968. 1-Dec. 31, 1969. 1-Dec. 31, 1970. 1-Dec. 31, 1971. 1, 1972.
See footnotes at end of table.
A-28
Table 1.--U.S. rates of duty applicable to footwear of the types provided for in specified TSUS items, July I, 1934, and GATT concessions to Jan. 1, 1972--Continued
TSUS item No.
•
• •
Rate of duty
ikbbreviated description • •
: July 1, : : 1934 1/ :
GATT concessions 2/
Rate Effective dates
: Percent : Percent : ad val. : ad val. :
• • •
7/ 700.68
• • • •
700.70 :
• • • • • •
700.75 : • • • • • •
700.80 :
Footwear with uppers of fibers--Con-tinued
With soles of leather--Continued
Valued over $2.50 per pair : 35
• • • •
With'soles of other material: With uppers of vegetable fibers : 35
With soles and uppers of wool : 35 .felt.
• • • • •
Other : 35
• •
• •
• •
• •
20 18 16 14 12 10 :
17.5 : 16.5 : 15.5 : 15 : 13 : 12 : 10 : 9 : 7.5 :
17.5 : 15.5 : 14 : 12.5 : 11 : 9.5 : 8 : 7 :
25 : 22 : 20 : 17 : 15 :
12.5 :
Apr. 21, 1948-Dec. 31, 1967. Jan. 1-Dec. 31, 1968. Jan. 1-Dec. 31, 1969. Jan. 1-Dec. 31, 1970. Jan. 1-Dec. 31, 1971. Jan. 1, 1972.
Jan. 1, 1950-June 29, 1956. June 30, 1956-June 29, 1957. June 30, 1957-June 29, 1958. June 30, 1958-Dec. 31, 1967. Jan. 1-Dec. 31, 1968. Jan. 1-Dec. 31, 1969. Jan. 1-Dec. 31, 1970. Jan. 1-Dec. 31, 1971. Jan. 1, 1972.
June 6, 1951-June 30, 1962. July 1, 1962-June 30, 1963. July 1, 1963-Dec. 31, 1967. Jan. 1-Dec. 31, 1968. Jan. 1-Dec. 31, 1969. Jan. 1-Dec. 31, 1970. Jan. 1-Dec. 31, 1971. Jan. 1, 1972
Sept. 10, 1955-Dec. 31, 1967. Jan. 1-Dec. 31, 1968. Jan. 1-Dec. 31, 1969. Jan. 1-Dec. 31, 1970. Jan. 1-Dec. 31, 1971. Jan. 1, 1972.
1/ Except as noted, the rate on July 1, 1934, was the same as the original rate in the Tariff Act of 1930,-- effective June 18, 1930. 2/ For concessions granted in the Kennedy Round, effective Jan. 1, 1968, the table shows staged
rates scheduled to become effective up to and including Jan. 1, 1972. 3/ Effective Jan 1., 1932, the statutory rate of 20 percent ad valorem was reduced to 10 percent ad
valorem, pursuant to sec.-336 of the Tariff Act of 1930. 4/ Supported vinyl was not used for shoe uppers until the late 1940's or early 1950's. When footwear
with supported-vinyl uppers (with soles other than india rubber) was imported during the 1950's and early 1960's, it was generally dutiable, by virtue of the similitude provisions of par. 1559, at the rate provided for "similar" leather footwear in par. 1530(e), principally 20 percent ad valorem. The col. 2 rate for item 700.55 is 35 percent.
5/ The trade-agreement rate established in the TSUS, effective Aug. 31, 1963, under authority of the Tariff Classification Act of 1962 (Public Law 87-456), to replace the wide range of rates previously applicable to the various types of footwear provided for in this item. 6/ Effective Mar. 3, 1933, the basis for assessing the ad valorem rate of duty was changed from
foreignjexpiort) value to the_"American selling price"-nf the "like or similar" domestic product (T.D. 4'6158).
7/ Effective Jan. 1, 1968, new items 700.66 and 700.68 replaced item 700.65.
Note.--Pursuant to Presidential Proclamation No. 4074, effective from Aug. 16 to Dec. 19, 1971, the rates of duty on most imported products were increased by the temporary imposition of an additional duty of 10 percent ad valorem or less, as provided for in new subpt. C to pt. 2 of the appendix to the TSUS.
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