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UNITED STATES TARIFF COMMISSION
DRAWN OR BLOWN FLAT GLASS (SHEET GLASS)
Report to the President on Investigation No. TEA-IA-4 Under Section 351(d)(2) of the Trade Expansion Act of 1962
7C, iCati on 1 58
Washington, D.C.
;Tune 965
UNMD ST ATES TARFF COMM;MOR
Ben Dorfman, Chalrman
Dan 3-1, Fenn, Jr" Vfce Chafrmar,
Joseph E. Talbot
Glenn W. Sutton
james W. CullIton
7.'onn N. Bent, Secretary
.i:ddress alI ocm7unicat1ons to United States Tariff Commission
Was:aington, D.C. 20436
CONTENTS
Page
introdnotion---------------------------------------- 1 Probable economic effect of reduction or termination of
increases in duty on sheet glass------ ..... 3 Statement of Commissioners Dorfman, Fenn, and Culliton 8 Statement of Commissioners Talbot and Sutton -- - 9
Information obtained in the investigation: Description and uses------------------------------- ..... 12 U.S. tariff treatment-- 14 u.s. oonsumption-------------------------------------- ..... 16
Thin sheet glass--------------------- 17 Window glass----------_....._- 17 Heavy sheet glass- .•■■••1•■■•••■••■ •••■•••■■•11.1•04■•■••••••••....1.1.■■■■.....m....11■ 1••■ 18
U.S. 19
U.S. production and shipments-----------•---- 20 Thin sheet 22 Window glass--------.-------------------------------------. 22 Heavy sheet 22
U.S. producers' inventories- - 23 U.S. imports 23
Imports by kinds 26 Imports by souroes__-_------------------------------------- 27
Prices: Prices of domestic glass— - - ------- 27
Prices of imported glass 29 Comparisons of prices of domestic and West European
glass 30 Employment in U.S. establishments 31 Profit-and-loss experience of domestic producers-- -- - 33 Appendix A. Tables 36 Appendix B. * (See note below)
Tables
1.--Sheet glass weighing over 4 ounces per square foot: U.S. rates of duty provided in the Tariff Schedules of the United States (TSUS), effective Aug. 31, 1963 --- - 37
Note. - -The whole of the Commission's report to the President may not be made public since it contains certain information that would result in the disclosure of the operations of individual concerns. This published report is the same as the report to the President, except that the above-mentioned information has been omitted. Such omissions are indicated by asterisks.
ii
Tables--Continued
Page
2.- -Sheet glass weighing over 4 ounces per square foot: Average ad valorem equivalents of U.S. specific rates of duty imposed on sheet glass entitled to most-favored-nation tariff treatment, imported during 1961, 1963, and 1964----- 39
3.- -Sheet glass: Indexes of U.S. producerst shipments of sheet glass, apparent U.S. consumption of sheet glass, and selected U.S. business indicators, 1955-64 40
4.--Sheet glass: Shipments by U.S. producers, U.S. exports of domestic merchandise, U.S. imports for consumption, and apparent U.S. consumption, 195-6h---------------
5. —Sheet glass: Shipments by U.S. producers, and U.S. imports for consumption by thickness (weight per square foot) and by kinds, 1955-64
6.--U.S. producerst inventories of sheet glass, as of Dec. 31 of 1954-64
7.-•Sheet glass: U.S, imp.orts for consumption, entered at most- favored-nation rates of duty, by tariff provisions, 1955-64
8. --Sheet glass: U.S. imports for consumption, by principal sources, 1955-64
9. --Employment in U.S. establishments in which sheet glass was produced, 1955-64--
10.--Single-strength sheet glass: Tariff Commission indexes of prices of glass produced in the United States and delivered to direct-factory buyers in certain U.S. cities, and price indexes reported by the Bureau of Labor Statistics, 1957-59 base period to May 1, 1965------ -------- ----------- 48
11. - -Delivered prices of representative sizes of domestic and West European sheet glass to direct factory-buyers in New York City on selected dates, 1960-65 --- 49
12. - -Sheet glass: Profit-and-loss experience of 6 domestic producers on their sheet glass operations in 1955-63 -
•rtl..14=4
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REPORT TO THE PRESIDENT
U.S. Tariff Commission June 11, 1965
To the President:
This report is made pursuant to section 351(d)(2) of the Trade
Expansion Act of 1962 (76 Stat. 900), 2/ which provides that--
Upon request of the President or upon its own motion, the Tariff Commission shall advise the President of its judgment as to the probable economic effect on the industry concerned of the reduction or termination of the increase in, or imposition of, any duty or other import restriction pursuant to this section or section 7 of the Trade Agreements Extension Act of 1951.
Introduction
Following an escape-clause investigation by the Tariff Commission
under section 7 of the Trade Agreements Extension Act of 1951, as
amended, 2/— the President proclaimed increased rates of duty on sheet
glass. 2/11/ Initially, the increased duties were to become effective
after the close of business on April 18, 1962; 'the President, however,
1/ This report is also submitted as the Commission's annual report on sheet glass for the purpose of sec. 351(d)(1) of the act.
2/ U.S. Tariff Commission, Cylinder, Crown, and Sheet Glass: Report to the President on Escape-Clause Investigation No. 7-101. . T.C. Publication 17, 1961 (processed) and U.S. Tariff Commission, Cylinder , Crown and Sheet Glass: Report in Response to the President's Request for Information Supplemental to the Report on Escape-Clause Investiga-tion No. 7-101. . ., T.C. Publication 48, 1962 (processed).
3/ The term "sheet glass" is used in this report to identify the imported glass covered by the Commission's investigation. Such glass is currently identified as "drawn or blown flat glass" in the Tariff Schedules of the United States (TSUS), which became effective on Aug. 31, 1963; it was previously identified as "cylinder, crown, and sheet glass" by title I of the Tariff Act of 1930.
4/ Proclamation No. 3455 of March 19, 1962; 3 CFR, 1962 Supp., p. 35.
1
2
deferred the effective date of the increased duties until the close of
business on June 17, 1962. 1/
Since June 1962, when the duties were increased, the Commission
has maintained a continuing review of developments with respect to
sheet glass. In connection with this review the Commission has made
one annual report to the President pursuant to section 351(d)(1) of
the Trade Expansion Act of 1962.. V
On March 30, 1964, the President requested the Tariff Commission
to advise him of its judgment as to the probable economic effect of
the reduction or termination of the increases in duties on sheet glass.
On the same date the Commission instituted its investigation to pre-
pare such advice. A hearing in connection with the investigation was
held on June 30 and July 1, 1964, at which all interested parties were
given opportunity to be present, to produce evidence, and to be heard.
The Commission also obtained information used in this report from its
files, from other agencies of the U.S. Government, from correspondence,
from field conferences with U.S. producersand representatives of
foreign producers, and from responses to questionnaires sent to U.S.
producers.
1/ Proclamation No. 3458 of March 27, 1962; 3 CFR, 1962 Supp., p. 40. 2/ Cylinder, Crown, and Sheet Glass: Report to the President
(No. TEA-IR-7-63) Under Section 351(d)(1) of the Trade Expansion Act of 1962, T.C. Publication 110, 1963 (processed).
3
Probable Economic Effect of Reduction or Termination of Increases in Duty
on Sheet Glass
The factors which affect the sheet glass industry, the subject
of this investigation, are, to a large extent, the same as those
associated with the generic product, flat glass. Sheet glass is one of
two major flat glass classifications; the other is plate glass. Float
glass, a new product of minor but growing importance, is still under-
going technological and marketing development. Neither float nor
plate glass is officially under investigation.
The demand for all flat glass is in major part a derived demand:
some 70 percent of the total is typically derived from building con-
struction and automobile manufacture. The remainder is used for
replacement, mirrors, and numerous miscellaneous products.
In both automobiles and buildings the cost of glass is so small
a part of the total costs (and changes in the price of glass are so
insignificant compared with total costs) that consumption is determined
by activities in the primary industries and is not highly responsive to
changes in price.
In the short run, therefore, the pricing of glass depends more
upon market conditions and marketing strategy than upon cost or cost
variations. Furthermore, the strategy is determined by a relatively
small number of domestic producers and importers or foreign producers.
Plate and float glass (which account for somewhat more than half
of the value but less than half of the quantity of the consumption of
flat glass) are largely responsive to the demand for automobiles, in
which about half of the total consumption of such glass is used. Sheet
glass (which conversely accounts for less than half of the value but
more than half of the quantity of the consumption of flat glass is
largely responsive to building construction, which uses about two-thirds
of the total consumption of such glass.
In 1964 seven firms, operating 14 plants, accounted for virtually
all the production of sheet glass in the United States; they employed,
on the average, 7,300 workers in the manufacture of sheet glass; and
their aggregate sales of the product were valued at more than $100
million. Of the 14 plants, 4 were located in West Virginia, 2 each
in Pennsylvania and Oklahoma, and 1 each in Ohio, Illinois, Indiana,
Tennessee, Louisiana, and Arkansas. The 6 plants in Appalachia
usually employ about half the total number of workers in the industry;
4 of these plants, as well as the 2 plants in Oklahoma, are located in
areas of persistent unemployment; the 6 installations in such areas
together employ about half of the industry's work force. The major
domestic producers of flat glass produce both plate and sheet glass;
three of them are licensed to produce float glass (two are now in
production). Only three firms produce sheet glass exclusively. Most
managements, therefore, are aware of and affected by the production
and marketing conditions of flat glass in general, as well as of
5
sheet glass specifically, and have some influence over the types of
glass to be produced and the competition among them. Sheet glass
accounts for less than one-fifth of the total value of sales for each
of the two dominant companies, which produce about two-thirds of such
glass.
Glass production is not an in-and-out industry. It requires
technical know-how, large capital, extensive marketing capacity, And
continuous operation of furnaces. The larger companies are better
able than the smaller ones to adjust production to demand, especially
by balancing drawing operations to the larger number of furnaces.
Even so, producers' inventories of sheet glass at the end of 1964
were at a high level--11 percent of annual sales as against 4 percent .
in 1955.
In the past decade and a half the major characteristic of the
apparent consumption of sheet glass has been wide fluctuations caused
not only by changes in demand of the consuming industries but also by
recurring labor difficulties. The peak consumption in 1959, for
example, was in part the result of pent-up demand following a work
stoppage in the domestic industry which caused consumption in 1958
to reach a record low for recent years. The slow and erratic upward
movement of apparent consumption of sheet glass as a whole has been a
composite of a downward movement in apparent consumption of window
glass and a somewhat stronger upward movement in apparent consumption
of heavy sheet glass. Apparent consumption in 1962-64 was high and
it demonstrated an upward movement but, even so, the 1964 figure did
not surpass the 1959 peak.
It is also significant that domestic shipments of sheet glass do
not reflect even the gradual increase of total consumption. As a
matter of fact, there has been no discernible trend.
With the demand situation since 1962 leading to a strengthening
of prices, the increase in duty was taken as an opportunity to raise
prices. Both domestic and foreign prices were increased. The traditional
price differential favorable to imports (at or near port cities) was
generally maintained although it was reduced somewhat. 1/
The higher
prices increased profits of domestic producers as volume rose. Imports,
although down in 1963, were higher in 1962 and 1964 than in any pre-
ceding ceding year except 1959; — in 1962 and 1964 they roughly maintained
the percentage of the market that they had achieved prior to the
increase in duties. Even though the duty was increased more on heavy
sheet glass than on window glass, the ratio of imports to apparent
consumption continued to be greater for the former than for window
glass.
The productive capacity of the domestic sheet glass industry has
increased in all but 2 years since 1955. Yet, percentage of use has
1/ This is the general situation but, as pointed out in the body of this report, there were variations by type of product. For instance, the duty on certain heavy sheet glass was raised far more than that on other types, and the price differential became less favorable to imports. Even so, imports of such glass increased both absolutely and as a per-centage of the market.
2/ Imports in 1962 were artificially high as a result of anticipated duty increases; they were unusually low in 1963 because of the high level of importers' inventories, which had been built up before the duty increase.
7
been lower in recent years than it was in 1955-56. Investment in
plant has increased output per man-hour has gone up, and total man-
hours have decreased. The overall figures, however, obscure varying
levels of activity within the industry. In 1964 some plants and
furnaces operated even above normal expected capacity; while others--
especially those of smaller companies and some of the older ones
located principally in depressed areas--were either shut down or .
operating at low rates.
Although competition from imported sheet glass has typically been
greatest near the coast, changed pricing practices implemented by the
foreign manufacturers after the duties were increased have tended to
concentrate competition in and near port cities to an even greater
extent.
Even with a high level of general prosperity--which tends to
bolster the demand for glass in building construction and for replace-
ment (and in automobiles, which are a less important market for sheet
than for plate glass)--the Commission does not foresee large and
sustained increases in the demand for sheet glass or in domestic
shipments. No doubt the demand will continue to be subjected to con-
tinued wide fluctuations. Meanwhile, technological developments
affecting relative costs, quality, and prices of sheet, plate, and
float glass, seem to deter the expansion of the market for sheet glass
that might be expected from a growing economy.
8
Statement of Commissioners Dorfman, Fenn, and Culliton
Restoration of the concession rates of duty would probably have
only a slight effect on the domestic sheet glass industry in the present
and the immediately foreseeable future, aside from some slight impact
of the kind which can usually be expected from tariff reductions, such
as: Some increased pressure on older plants and smaller companies;
somewhat softer prices and pressure against higher prices; a tendency
for imports to increase because o some additional price advantage in
marginal markets and additional marketing flexibility for the importers
both geographically and in terms of added sales effOrt; some lessening
of confidence of the domestic industry; and a tendency, by making
competition more severe, to concentrate domestic production in the
stronger and more modern•establishments where output per man-hour may
be expected to rise. Unless there is a change from the past pattern
of wide fluctuations in domestic shipments, these general tendencies
may be expected to ease during times of rising d.emand and to strengthen
considerably in periods of downswing. In this connection we note the
recent reduction in the prices of imported sheet glass.
The task of predicting the probable economic effect of a restora-
tion of the concessions on this industry is complicated by the
consideration that the increased duties have been imposed only recently
(1962). Furthermore, the first full year of their operation (1963) was
distorted by a number of extraneous factors. This difficulty is
9
meaningful for the managers in the industry, just as it is for the
Government, because they have to make their business decisions in
view of the brevity of the period of added protection and the scheduled
expiration date (1967) for the duty increases. They would probably
interpret a decrease now as indicating a less favorable set of
conditions thrust upon them earlier than they had expected and
definitely earlier than they had hoped (presumably they will make,
every effort to have the duty increases extended beyond 1967).
Statement of Commissioners Talbot and Sutton
The following factors are important when considering the probable
economic effects on the sheet glass industry of a duty reduction:
1. All signs indicate that this is not going to be an industry with great growth and will probably be a static or declining one.
2. Consumption is highly dependent on demand derived from the building-construction and automobile industries, with the result that consumption is subject to the sharp cyclical fluctuations which have characterized those industries.
3. Sheet glass supplied by the principal foreign producers is generally recognized as being comparable in quality to domestically produced sheet glass. The focal point of competition in the sheet glass industry is price, and one of the key determinants of the price of foreign sheet glass is the duty. A termination of the increases in duties would result in duty reductions equivalent to 4-20 percent of the present duty-paid prices of most imported sheet glass.
L. Even after the duties were increased, imports retained approximately the same share of the market that they
10
had before the "escape action." This demonstrates the ability of the foreign manufacturers to compete in the U.S. market notwithstanding duties the ad valorem equivalents of which ranged from 18 to 54 percent of the foreign value in 1964.
5. Six plants accounting for more than half the U.S. production of sheet glass and a like share of employ-ment in the sheet glass industry are in the heart of Appalachia. Two other plants are located in areas of substantial and persistent unemployment.
6. The U.S. producers inventories of sheet glass were at an all-time high at the close of 1964 (table 6).
7. There have been several indications of a softening of prices of sheet glass, particularly those of imported glass, during the past several months:
(a) Late in 1964 the U.S. producers increased their terms-of-payment discount from 1 percent to 2 percent; early in 1965 the foreign manufacturers responded by increasing their maximum terms-of-payment discount from 3 percent to 5 percent.
(b) Certain foreign manufacturers and at least 1 domestic manufacturer increased discounts on sheet glass shipped in extra-large containers.
(c) Some foreign manufacturers announced (in May 1965) a reduction in their prices for 18-ounce and 24-ounce glass
8. Shipments by U.S. producers in 1963 and 1964 were lower than those in any of the years 1955, 1956, and 1959.
Given the foregoing one could expect that a reduction in duty
would--
1. Ekert a downward pressure on sheet glass prices;
11
2. Lead to an increase in the share of consumption supplied by imports;
3. Contribute toward a decline in employment and profits; and
Ii.. Idle productive facilities.
Furthermore, one could expect that the actual repercussions would go
beyond those which a narrowly focused price analysis would indicate. A
less favorable price position of domestic versus foreign sheet glass
reduces the opportunities of domestic producers to make the most of
strong demand situations and to provide a defense against weak demand
situations.
12
Information Obtained in the Investigation
Description and uses
The imported product covered by this report is sheet glass weigh-
ing over 4 ounces per square foot. Such glass is currently identified
in the TSUS as "drawn or blown flat glass." It was identified under
the Tariff Act of 1930 as "cylinder, crown, and sheet glass." 1/
Sheet glass is one of the four principal types of flat glass.
The other three types, imports of which are not covered by the present
investigation, are described briefly below:
Rolled glass is a translucent type of flat glass (sometimes containing a wire netting) which has irregularities impressed on its surfaces by the rollers used to form the glass. It is generally used in applications where transparency is un- necessary or .objectionable„ but where light is needed, as in skylights, factory windows, and office partitions.
Plate glass is rolled glass which has been ground and polished. The grinding and polishing make the glass transparent and render its surfaces virtually plane and parallel, thereby eliminating the dis- tortion which is found, in various degrees, in sheet glass. Because of the virtual absence of distortion and the expense involved in grinding and polishing the glass, plate glass commands a considerably higher price than sheet glass. It is used chiefly in automobile windshields; it is also used in auto sidelights and in glazing large openings such as those in store display windows and curtain wall construction.
/ . Float glass 2 — is a relatively new type of transparent flat glass with virtually plane and parallel
1/ Cylinder and crown glass are made by hand production methods, which are now virtually obsolete. 2/ The technique of manufacturing float glass was developed by a
British firm - -Pilkington Bros., Ltd.
13
surfaces comparable to those of plate glass. The parallel surfaces of float glass, however, are achieved by floating a layer of molten glass over molten metal rather than by physical grinding and polishing. 1/ Float glass has thus far been used .primarily in auto side windows, but it is also being used in auto windshields, in mirrors, and for general glazing purposes.
Sheet glass is a transparent flat-glass product made by machine
drawing, and having a smooth fire-polished surface. New building con-
struction accounts for about 65 percent of the total U.S. consumption
of sheet glass, and automobile production accounts for about 15 percent;
the other 20 percent is accounted for by replacement glazing and by the.
manufacture of mirrors and other products.
Within the sheet-glass-product classification there are three
major subclassifications, based on the thickness of the glass. The
respective products and their uses (generally different) are as
follows:
(1) Thin sheet glass (sheet glass weighing not over 16 ounces per square foot) is used in -miscellaneous applications such as microscope-slide glass, photo-graphic dry plates, picture glass, and small mirrors.
(2) Window glass (sheet glass weighing over 16 ounces but not over 28 ounces per square foot) 2/ is used chiefly for glazing windows, doors, and storm sash in residential construction. It is also used in making laminated glass (safety glass consisting of sheets of glass with a plastic interlayer), pinball machine covers, and double-glazed insulating units.
1/ Float glass was first produced in commercial quantities in 1959 and was first imported into the United States in 1960. Two U.S. float- glass-production facilities began operation in 1964; two such facilities are now under construction, and plans have been announced for the con-struction of two others. 2/ Window glass is frequently further divided into two subclassifica-
tions: Single-strength glass (weighing 18 or 19 ounces per square foot) and double-strength glass (weighing 24 or 26 ounces) per square foot.
14
(3) Heavy sheet glass (sheet glass weighing over 28 ounces per square foot) is used to glaze large openings such as glass patio doors and the fixed glass panels frequently found adjacent to them. Heavy sheet glass is often tempered (specially toughened) and, in that form, used extensively in the side and rear windows of many automobiles.
U.S. tariff treatment
In June 1962 the President increased the rates of duty on sheet
glass dutiable under paragraph 219 of the Tariff Act of 1930, except
such glass weighing not over 4 ounces per square foot. 1/ The trade-
agreement rates of duty in effect immediately preceding the effective
date of the President's proclamation, as well as the escape-action/
rates that came into effect under that proclamation, are shown below
(in cents per pound):
Duties immediately Increased duties Sheet glass weighing over 4 preceding resulting from
ounces per square foot and escape action escape action measuring in square inches---
Not over 384 0.7 1.3 Over 384 and not over 864 .9• 1.6 Over 864 and not over 2400- 1.1 1.9 Over 2400: Weighing not over 28
ounces per square foot- 1.4 2.4 Weighing over 28 ounces
per square foot 1.4 3.5
1/ Sheet glass weighing not over 4 ounces per square foot is commonly known as ribbon glass. Such glass accounts for only an insignificant portion of total imports, production, and consumption of sheet glass. No data on ribbon glass are included in this report.
3/ The term "escape action" as used in this report is the action taken by the President to increase the rates of duty on sheet glass pursuant to the escape-clause procedure.
15
On August 31, 1963, the Tariff Schedules of the United States
(TSUS) replaced titles I and II in the Tariff Act of 1930. The class-
ifications for sheet glass in the TSUS differ in form from those
formerly in effect. 1/
The average ad valorem equivalents of the increased specific rates
of duty - -based on imports subject thereto in 1963--ranged from 18
percent to 57 percent (table 2). Almost one-fifth of the 1963 imports
entered at rates of duty equivalent to less than 20 percent ad valorem;
about three-fifths, at rates equivalent to about 30 percent ad valorem;
and more than one-fifth, at rates equivalent to more than 55 percent ad
valorem.
On most sizes of sheet glass, the average ad valorem equivalents
of the increased rates of duty were nearly double those of the trade-
agreement rates based on similar imports in 1961. The average ad
valorem equivalent of the increased rate of duty on glass measuring
over 2,400 square inches and weighing over 28 ounces per square foot,
however, was more than three times that of the trade..agreement rate.
This marked increase is attributable largely to the increase in the
1/ Tariff treatment for sheet glass subject to the escape-action rates of duty was formerly provided for under par. 219 of the Tariff Act of 1930 (with an additional duty if colored or processed imposed under par. 224); it is currently provided for under items 542.11 to 542.98 and item 544.17 of the TSUS. The escape-action rates of duty are provided for in items 923.11 to 924.00 of the TSUS appendix. Certain size brackets were modified slightly under the TSUS to bring the tariff provisions into closer conformity with trade practices; however, only an insignificant quantity of sheet glass was subject to altered rates of duty. The tariff classifications in the TSUS pertain-ing to the sheet glass subject to the escape action and the pertinent rates of duty which became effective Aug. 31, 1963, are shown in table 1.
16
specific rate of duty (since the escape-action rate was 2-1/2 times
the trade-agreement rate). To a lesser extent, it resulted from a
decline in the average unit value of the glass. The average ad valorem
equivalents declined slightly in 1964 owing to the increase in foreign
unit value resulting from price increases which occurred during the
summer of 1963 and early in 1964.
Before the increased rates of duty were imposed in June 1962 )
all glass dutiable under paragraph 219 that was the product of Com-
munist countries 1/ was dutiable at the full rates in the Tariff Act
of 1930, as amended. After the imposition of the escape-action rates,
all such glass from Communist countries continued to be dutiable at
the full rates except glass measuring over 2,400 square inches and
weighing over 28 ounces per square foot. Since the escape-action
rate for this glass is higher than the previously applicable full
rate, the escape-action rate applies to imports from Communist
countries as well as to imports dutiable at most-favored-nation (N 'N)
rates..
U.S. consumption
In 1955-64 the apparent U.S. consumption of sheet glass moved
irregularly upward. The consumption of sheet glass increased at a
slower rate than either gross national product or the Federal Reserve
index of industrial production. This lag is largely attributable to
1/ The term "Communist countries" as used in this report refers to those countries designated as Communist dominated or controlled pur-suant to secs. 231 and 257(e) of the Trade Expansion Act of 1962.
17
the sluggishness in building construction, the principal consuming
industry, in the United States (table 3).
The apparent consumption of sheet glass in each of the years 1962
through 1964-1.9 to 2.0 billion pounds--was appreciably higher than in
either 1960 or 1961 and was exceeded only by that in the peak year,
1959 (table 4). The substantial increase in the consumption of sheet
glass in 1962 reflected the concurrent large increases in residential
construction and automobile production, whereas the more modest
advances in such consumption in 1963 and 1964 reflected a slowdown in
the rate of expansion in those consuming industries (particularly in
1964).
Thin sheet glass.--The annual consumption of thin sheet glass
has increased almost steadily since 1955, but such consumption still
accounts for only a small part (less than 4 percent) of the total
consumption of sheet glass.
Window glass.--The apparent annual consumption of window glass
amounted to 1.1 to 1.2 billion pounds during the 1960-64 period. Window
glass has accounted for about three-fifths of the total quantity of
sheet glass entering consumption in recent years, although its share
declined from 66 percent in 1960 to 58 percent in 1964. Before 1962,
changes in the apprent annual consumption of window glass were usually
closely related. to changes in the level of home construction and auto-
mobile production. After reaching a peak of 1.5 billion pounds in 1959,
18
the consumption of window glass declined with the slackened pace of
those industries in 1960 and 1961. Although activity in those
industries was substantially greater during 1962-64 than in the immed-
iately preceding years, the consumption of window glass remained
stable. Two factors appear to have accounted for this stability:
(1) Tempered glass (made from a single piece of heavy sheet glass)
has largely replaced laminated glass (made from two pieces of window
glass) for use in the side windows of automobiles, and (2) larger
openings, which require the use of heavier glass (e.g., sliding glass
doors and picture windows), have been used increasingly in both
residential and commercial buildings.
Heavy sheet glass. - -The apparent consumption of heavy sheet glass
has increased in almost every year since 1955. Such consumption during
1963 and 1964 --0.8 billion pounds annually- -was appreciably greater
than the annual average during the period 1955-64. The increase in
annual consumption is attributable not only to - the displacement of
window glass by heavy sheet glass, as cited above, but also to the
economic growth of the consuming industries. In 1964, heavy sheet
glass constituted 38 percent (by weight) of total U.S. consumption
of sheet glass.
19
U.S. producers
Virtually all of the U.S. production of sheet glass is accounted
for. by 7 firms in 14 establishments. 2/
Sheet glass accounts for all
of the output of 11 of these establishments and nearly all of the
output of 2 of them, but only a small part of the output of 1 of them.
Of the 7 firms discussed above, 4 firms conduct multiproduct operations
(preponderantly in establishments other than those producing sheet
glass), and the other 3 firms produCe only sheet glass; 3-/ 3 of the
7 firms accounted for more than 85 percent (based on weight) of the
U.S. producers' shipments of sheet glass in 1964.
Of the 14 establishments producing sheet glass, 4 are located
in West Virginia, 2 each in Pennsylvania and Oklahoma, and 1 -each in
Ohio, Illinois, Indiana, Tennessee, Louisiana, and Arkansas. 2/
1/ The number of firms and the number of establishments shown above are each 3 less than the numbers indicated in previous reports. This difference results from two circumstances. First, insignificant quantities of special types of sheet glass are produced by 2 firms at 2 establishments. These firms and establishments are not included in the count above, but were included in earlier reports. Data on the sheet glass operations of these firms, however, are included in the appropriate sections of this report (i.e., production and shipments). Second, the rates of duty on sheet glass weighing less than 4 ounces per square foot were not modified by the escape action. Therefore, data with respect to such glass (and the firm and establishment which produce it) are not included in this report.
2/ One of these three firms recently began fabricating a small portion of the sheet glass which it produces.
3/ In April 1965, one producing firm announced plans for building a sheet glass plant in California.
20
U.S. production and shipments
Although production of sheet glass did not increase during the
period 1955-64, the productive capacity of the industry has been
increased in all but 2 years since 1955. Two new plants have begun
production (one each in 1957 and 1959).and a new continuous furnace
has been added (in 1961). Many factories have installed new drawing
machines with greater capacity and have modernized other production
facilities.
Data on the U.S. production of sheet glass, together with indexes
of the U.S. producers' capacity to produce sheet glass and of the
trend of the utilization of that capacity are shown for the years 1955-64
in the following tabulation (1957-59=100):
• : Index of • Capacity :
•
Production : Actual : capacity index 2.1 : index production :utilization 2/
Million : • . : pounds
1955-------- ------ : 89 : 119 : 1,572 : 133 1956-- : 93 : 125 : 1,661 : 134 1957 : 98 : 96 :
1, 118; : 9 7
1958 : 98 : 82 : 83 1959- : 103 : 123 : 1,627 : 119
1960 : 105 : 97 : 1,288 : 93 1961 : 109 : 93 : 1,233 : 85 1962 110 : 113 : 1,503 : 103 1963
:
: 114 : 115 . . 1,519 : 100 1964 : laiL : 117 : 1,554 : 103
1/ This index of theoretical: capacity is based on the output that
woad have been achieved if all installed tanks and drawing machines available for use each year had been in operation continuously (24 hours per day) throughout the year. 2/ The ratio of production to theoretical capacity was 54 percent in
1977-59, or 100 for the purpose of this index.
Year
21
Information available to the Commission on the extent of idle
facilities relates to the number of idle continuous furnaces. The
domestic producers of sheet glass indicated that 22 of their 33 con-
tinuous furnaces were in operation on May 20, 1965. The 22 furnaces
accounted for approximately two-thirds of total capacity. It
appears that most of the 11 furnaces which were not in operation were
"down" primarily for lack of orders. 1/
Variations in annual production of sheet glass have corresponded
closely with changes in U.S. producers 1 annual shipments (including
intracompany transfers); changes in the latter have'closely reflected
changes in annual consumption. Fluctuations in annual shipments have
also reflected fluctuations in new building construction and automobile
production (particularly the former). Shipments rose each year from
1960 (when they amounted to 1.3 billion pounds) through 1963 (when
they amounted to 1.6 billion pounds), then declined slightly to 1.5
billion pounds in 1964. Shipments during 1963 -and 1964 were almost
as great as in the preceding peak years of 1955, 1956, and 1959
(table 4). Since 1957 the share of annual consumption supplied by
1/ It is often impossible to ascribe definitively the cause of furnace downtime (e.g., a labor dispute may coincide with a lack of orders or with an essential periodic rebuilding of a furnace).
22
domestic shipments has been relatively stable, ranging from 75 to 80
percent; it averaged 77 percent during that period. In 1963, the
first full year after the duty was increased under the escape clause,
domestic producers supplied 80 percent of apparent consumption; they
supplied 76 percent in 1964.
Thin sheet glass.--Domestic shipments of thin sheet glass (glass
weighing not over 16 ounces per square foot) supplied less than half
of the annual consumption of such glass in each year of the last decade.
Window glass.--Domestic shipments supplied 75 percent or more of
the annual consumption of window glass in each of the last 10 years
(from col. 4, table 5). Before 1960, year-to-year changes in such
shipments closely reflected fluctuations in activity of the major
consuming industries (building construction and automobile
production). U.S. producers' annual shipments of window glass during
1962-64 (when they averaged 911 million pounds) were greater than
those during 1960-61. The increased shipments reflected primarily
the substantially increased activity in building construction; the
share of the U.S. market for window glass supplied by domestic producers
in 1962-64 also increased over that in the earlier period.
Heavy sheet glass.--U.S. producers supplied 74 percent or more
of annual consumption of heavy sheet glass in each of the last 10
years (col. 7, table 5). With the rising demand for such glass,
shipments by domestic producers increased each year from 1959 to 1963;
in 1964, however, they were somewhat smaller than in 1963.
23
U.S. producers' inventories
During 1955-64, yearend inventories of sheet glass held by the
U.S. producers ranged from )4 to 12 percent of their annual shipments.
Such inventories were at a record high of 164 million pounds at the
end of 1964 (table 6).
U.S. imports
Sheet glass dutiable at MFN rates constitutes the preponderant
part of the sheet glass imported into the United States. Although
imports from Communist-dominated countries at full rates of duty have
been small, they have increased substantially, though irregularly, in
recent years. Most of the sheet glass dutiable at MFN rates is com-
parable in quality to U.S.-produced sheet glass. Most of that imported
from Communist-dominated countries, on the other hand, is inferior in
quality.
In 8 of the past 10 years, MFN imports varied with the apparent
consumption of sheet glass. The following' series of indexes indicate
the moderate upward trend of apparent consumption and the more pronounced
upward trend of imports at
Year
MFN rates in 1955-64:
Index (1957-59=100) of--
MFN imports Apparent consumption
1955 72 111 1956 94 115 1957 64 89 1958 88 86 1959 148 126
1960 118 101 1961 106 99 1962 131 115 1963 11)4. 118 1964 135 121
211.
The volume of imports clearly responded to the peak level of building
construction in 1959, its subsequent decline in 1960 and 1961, and its
upturn in 1962. The higher imports in 1962 were also attributable in
part to efforts by importers to enter as much glass as possible prior
to the increase in the rates of duty. In 1963, however, MFN imports
were 13 percent below those in 1962, notwithstanding the continued
increase in the consumption of sheet glass. The decline was attribut-
able to various factors, including the increase in the duties, the
high level of inventories in the hands of importers at the end of
1962, the dock strike on the U.S. Atlantic and Gulf Coasts during
January 1963, and, to some extent, the revised FHA standards, which
became effective in April 1963. 1/ In 1964, MFN imports were 18 percent
above those in 1963, reflecting the increased demand and, to some
extent, threatened shortages of domestically produced glass attributable
(in part) to the prolonged strike at the Fourco Glass Co.
Measurement of the extent to which trade-agreement concessions
were responsible for the greatly increased imports of sheet
glass during the middle and late 1950's is not possible. The major
concessions became effective in 1948 and 1951, and the smaller, 3-stage
concessions became effective in 1956-58. The greatest absolute
1/ Implementation of the revised FHA property standards requires that glass installed in FHA-financed homes meet designated standards of thickness for certain size lights of glass. These standards, if rigidly enforced, would preclude the use of the less expensive 18- and 24-ounce window glass, which has been available only from the foreign producers, in favor of the use of 19- and 26-ounce window glass, which is available from both domestic and foreign producers.
increases in MFN imports were from 1954 to 1955 and from 1958 to 1959;
both 1955 and 1959 were characterized by high U.S. consumption and
shortages of domestically produced glass. It appears that the increased
MFN imports resulted from a combination of factors, including the
periodic shortages of domestically produced glass, the desire by some
purchasers of sheet glass to have both foreign and domestic sources of
supply, and the price advantage of the imported glass. 1/
The escape action has not had a substantial effect on the share
of the market supplied by MFN imports. Although the share of con-
sumption supplied by such imports in 1963 (19 percent) was somewhat
lower than it was in the 4-year period 1959-62, when it ranged from
21 to 24 percent, the smaller share is attributable to several factors
(cited earlier in this section) besides the increase in duties. The
share of apparent U.S. consumption of sheet glass supplied by imports
dutiable at MFN rates in 1964 (22 percent) was about the same as in
the 1959-62 period.
The quantity of sheet glass imported from Communist countries (at
full rates of duty) has increased in most of the years since 1954•
Such imports reached a peak of 36 million pounds in 1962, declined
sharply to 17 million pounds in 1963, and then increased to 32 million
pounds in 1964 (table 4). The smaller volume of imports in 1963 is
attributable to a variety of causes, including the excessive inven-
tories held by the principal importer of such glass, the termination
1/ For a more detailed discussion of factors affecting the trend of imports, see the Tariff Commission escape-clause report on sheet glass (cited in footnote 2, p. 1), pp. 27-29.
26
of the exclusive contract formerly held by that importer for the
importation of glass from the U.S.S.R., and the dumping investigations--
instituted by the U.S. Treasury Department in 1963 --concerning window
glass from Czechoslovakia and the U.S.S.R.
Imports by kinds.--Imports at MFN rates supplied the major share
of thin sheet glass consumed each year in the past decade. Imports of
such glass, which were successively higher in most of the last 10 years,
reached a peak of 52 million pounds in 1964 (table 5).
Imports of window glass at MFN rates were successively lower in
each of the years 1960-63, notwithstanding the slightly larger consump-
tion of such glass in 1962 and 1963 than in 1960 and 1961. Such imports
were somewhat higher in 1964 than in 1963.
Imports of heavy sheet glass were the highest on record in 1964,
when they anounted to 166 million pounds (table 7). Imports of the
larger sizes of heavy sheet glass (over 15 square feet in area) in
1962 and 1963 were much greater than in the previous peak year, 1959.
The larger sizes of heavy sheet glass, moreover, were subject to by
far the highest escape-action duty (equivalent, on the average, to 57
percent ad valorem in 1963). The substantial increase in imports of
the large sizes of heavy sheet glass notwithstanding the greatly
increased duty on such glass is attributable primarily to the greatly
1 The Treasury Department determined that window glass from both the U.S.S.R. and Czechoslovakia was being sold in the United States at "less than fair value." The Tariff Commission reported its determina-tions on Sept. 29, 1964, and Nov. 16, 1964, with regard to imports of window glass from the U.S.S.R. and Czechoslovakia, respectively, "That an industry in the United. States is not being, and is not likely to be, injured, or prevented from being established, by reason of the impor-tation of window glass...sold at less than fair value..."
27
increased demand for such glass, which arose from the expanded use of
heavy sheet glass in patio doors and picture windows.
The ratio of window glass to heavy sheet glass is roughly the
same for imports at full rates of duty as for imports at MFN rates.
Annual imports of colored and specially processed sheet glass
have remained small during the last several years (table 5).
Imports by sources. --In 1964, sheet glass was imported at MFN
rates from 27 countries. West European countries and Japan were the
sources of most imports, but other countries (e.g., Israel, Taiwan,
and South Korea) have supplied substantial quantities in recent years.
Belgium, the principal supplier, accounted for 35 percent of the sheet
glass imported during the period 1955-6i4 and 31 percent of that
imported in 1964 (table 8). Japan has become an increasingly important
supplier; the share of the total imports coming from that country
increased from an average of 12 percent during 1955-62 to 17 percent
during 1963-64. Other important sources include West Germany, the
United Kingdom, and France. The U.S.S.R. and Czechoslovakia have
been the chief suppliers of the small amounts of sheet glass imported
at full rates of duty.
Prices
Prices of domestic glass.--The "net prices" paid by concerns
purchasing domestic sheet glass directly from the producers--i.e.,
the delivered cost of the glass to those concerns--were materially
2 8
greater in 1964 than in 1959. 11 "Net prices" had been reduced sharply
early in 1960 (through a change in pricing practices), but were increased
several times thereafter.
Early in 1960, without changing their list prices or discounts,
the producers shifted from -,quoting prices on a freight-equalized basis
to a delivered-price basis, thereby reducing the delivered cost of
domestic sheet glass to users at virtually all destinations. 'The change
to a delivered-price basis reduced the U.S. producers' average net
realization on sales by about 7 percent (and thus, on the average, reduced
"net prices" by that percentage). The savings to direct-factory buyers
located in or near seaboard cities were generally greater than for
buyers located elsewhere. 2/
In the summer of 1960, U.S. producers increased their delivered
prices by about 5 percent; they increased them by another 5 percent in
the spring of 1962, and by 5 to 9 percent (depending on the type of
packing) in the summer of 1963 (table 10). Through 1963 the prices of
/ domestic sheet glass in all important thicknesses — were increased
about proportionately. Early in 1964, however, the prices of single-
strength glass were increased by 5 percent, while the prices of
y Prices in effect in 1959 were virtually identical with those in effect in 1957 and 1958.
2/ Under the freight-equalization system, producers paid freight in excess of that from the domestic supplier nearest the purchaser. Under the delivered-price system, all freight from the producer to the pur-chaser is absorbed by the producer. For further information, see the Commission's escape-clause report on sheet glass (cited in footnote 2 p. 1) and the Commission's report of Sept. 27, 1963, under sec. 351(d)(1) with respect to sheet glass (cited in footnote 2, p. 2).
3/ Seaboard buyers are generally located farther from domestic plants than are inland buyers.
!..t! E.g., single-strength, double-strength, and heavy.
29
double-strength and heavy-sheet glass were not changed. Late in 1964
one of the major domestic producers increased its prices only on heavy
sheet glass in sizes over 25 square feet. Early in 1965 other domestic
producers followed suit.
Notwithstanding the price increases noted above, because of the
effect of the change to a delivered-price basis, the "net prices" of
sheet glass to buyers in most major inland cities did not exceed their
1959 peak until the spring of 1962, and those to buyers in seaboard
cities did not exceed their 1959 peak until the summer of 1963. Price
data on sheet glass published by the U.S. Bureau of Labor Statistics
(BLS) indicate that average prices prevailing late in 1963 were about
11 percent higher than those prevailing late in 1959 before the
change in the method of pricing) (table 10). 1/ After the 5-percent
price increase early in 1964 on single-strength glass, the average prices
of sheet glass of that thickness were about 16 percent higher than those
in 1959. For most categories of domestic sheet glass, net prices on May 1,
1965, were little different than on May 1, 1964 (see footnote 2, table 11).
Prices of imported glass.- -Since the President proclaimed the
increased rates of duty, foreign manufacturers (in addition to revert-
ing to ex-dock prices) have increased their prices on certain categories
of sheet glass 2/— on three occasions and their prices on all other
1/ The Bureau of Labor Statistics national price indexes do not coin-cide with the Tariff Commission's indexes for selected cities because the BIS data reflect the composite price effect of the shift from freight-equalized prices to delivered prices, as reported by the domestic producers, whereas the Commission's indexes reflect the averages based on shipments by the U.S. producers to selected U.S. cities. If May 1, 1960, had been used as a base, the two series of index numbers would have been virtually identical on all subsequent dates. 52/ Single-strength window glass and heavy. sheet glass measuring over 2 square feet in area.
30
sheet glass on two occasions, 1/— In May 1965, however, several foreign
manufacturers announced a small reduction in the price of certain
thicknesses of sheet glass. * * * Changes in the prices of West
European sheet glass to purchasers in the more important U.S. port
cities have been about proportional to changes in the delivered
prices of U.S.-produced sheet glass in such cities (table 11). The
delivered prices of Japanese sheet glass have increased to a greater
extent than delivered prices of West European sheet glass; the U.S.
prices of Japanese glass are now generally about equal to those of
West European glass.
Comparisons of prices of domestic and West European glass..--The
delivered prices of two representative categories of domestically
produced and imported sheet glass in New York City are shown in
table 11. The price comparisons shown are typical of those in most
coastal cities (where the competition between domestic and imported
glass is most intense). The price differential diminishes as the
distance , inland from port cities increases. In most inland locations
the delivered price of domestic glass is lower than that of imported
glass.
1/ In 1962, after the President proclaimed the increased rates of duty, foreign manufacturers changed their method of quoting prices from a delivered to an ex-.dock (duty-paid) basis. For most glass, the combined cost of customs brokerage, loading, and trucking is equivalent to roughly 5 percent of the total delivered cost in seaboard cities.
31
For single-strength glass (the most important thickness of windaw.
glass), the duty-paid delivered cost of the West European glass was
almost 8 percent lower than the delivered price of the domestic glass
for about 2 years prior to the escape action. Since the escape
action, the price differential, in favor of West European single-
strength glass at New York City has generally been between 5 and 7
percent (table 11).
For heavy sheet glass, the delivered price of the West European
glass was about 9 percent lower than the delivered price of the
domestic glass for about 2 years prior to the escape action. Since
the escape action, the price differential has generally been between
4 and 6 percent.
Employment in U.S. establishments
Changes since 1955 in the average annual employment in the U.S.
establishments producing sheet glass have reflected changes in the
annual production of sheet glass except in'1963 and 1964. Employment
in the production of sheet glass declined from 16.14 million man-hours
in 1959 to a low of 12.8 million man-hours in 1961 (table 9). It rose
substantially with the upturn in production to 15.0 million man-hours
in 1962, but declined to 14.5 and 114.3 million man-hours in 1963 and
19614, respectively, although production increased slightly in each
of those years. The average number of production and related workers
employed in making sheet glass during 1955-614 ranged from 8,1461 in
32
1956 to 6,420 in 1961. Indexes of the U.S. production of sheet glass,
of man-hours worked in the production of sheet glass, f and of output
per man-hour, for the years 1955-64 are shown in the following tabulation
(1957-59=100):
Year Production Man-hours Output per man-hour
1955-- - ----- 119 116 103 1956 -- --- 125 121 1°4 1957 96 97 99 1958 82 86 95 1959 - - 123 117 106
1960 97 97 101 1961 93 92 102 1962 113 107 106 1963 115 104 111 1964 117 102 115
The decline in employment (in terms of man-hours) after 1962,
accompanied by an increase in production, reflects a significant
increase in output per man-hour, which is attributable to improvements,
in technology coincident with the highest levels of production since .
1959.
Produpts other than sheet glass are produced in 3 of the 14 -
establishments currently producing sheet glass. In 2 of the 3 estab-
lishments only a small number of workers produce other products; in
the other establishment the number of workers producing other products.
accounted for the preponderant share of the total employment in the
1/ Percentage changes in the average number of production and related wciikers engaged in the production of sheet glass were virtually identical. with changes in man-hours.
33
establishment. Employment in the production of other products (includ-
ing processed sheet glass) in terms of both the average number of
workers and the man-hours worked has increased significantly since
1957. The proportion of total man-hours worked in the 14 establish-
ments that was accounted for by the production of the other products
increased from 3 percent in 1955 to 22 percent in each of the years
1962-61L. The greater share of production consisting of other products
in recent years is attributable primarily to the beginning of operation
(in 1957) of a large establishment in which both sheet and plate glass
are produced and further processed and to the initiation of tempering
operations at two other establishments.
Profit-and-loss experience of domestic producers
Profit-and-loss data were received from six firms, 1/ which
produce sheet glass in 13 establishments (table 12). 3./ These six
firms accounted for more than nine-tenths of the domestic production
of sheet glass in each of the years 1955-64.
The aggregate net sales (including intracompany transfers)*-* * of
sheet glass by the six firms increased in value from * * *
71 The only firm producing substantial quantities of sheet glass which did not submit profit-and-loss data was the Ford Motor Co. Ford's production is predominantly captive.
1/ In 1961 and 1962 each of the 13 establishments produced only un-processed sheet glass. In 1963, 11 of the establishments produced only unprocessed sheet glass, and 2 establishments produced small quantities of tempered sheet glass also.
314
$107.4 million in 1961 to $122.0 million in 1962, and to $130.9 million
in 1963. Such sales reached new peaks in each of the years 1963 and
1964.
The six firms reported a small aggregate net loss on their sheet
glass operations in 1960, small aggregate net profits in 1961 and
1962, and substantially improved aggregate net profits in 1963.
Profit-and-loss data submitted by the four firms for which 1964 data
are available indicate a further improvement in aggregate net profits
in that year. .1/ It should be noted, however, that the two firms for
which 1964 data are not available were closed by a strike for almost
6 months. * * * It appears that the four reporting firms benefited
to some extent from the suspended operations of the nonreporting firms.
The six firms reported a net loss * * * in 1960; they had net
profits of $1.3 million (equal to 1.3 percent of sales) in 1961, $3.3
million (equal to 2.7 percent of sales) in 1962, and $12.4 million
(equal to 9.5 percent of sales) in 1963. The 1.961 and 1962 net
operating profits (and the corresponding profit ratios) were far smaller
than those in any of the years 1955-59. The net operating profit (and
the corresponding profit ratio) in 1963 was appreciably larger than
that in 1958, but substantially smaller than in each of the years 1955,
1956, and 1959. The aggregate net operating profit in 1963 was
appreciably larger than that in 1957, but the ratio of net operating
1/ Two of the six firms operate on an accounting year ended June 30. Data for these concerns for the accounting year ended June 30, 1964, are shown in table 12 under 1963, and data for the accounting year ended June 30, 1963, are shown under 1962, and so forth. Therefore, the data for 1964 are not shown in table 12.
35
profits to net sales was about the same in both years. Four of the
six firms sustained net operating losses in 1960, three firms sustained
losses in 1961, and two firms sustained losses in 1962; all six firms
realized net operating profits in 1963, and three of the four firms
which reported data for 1964 realized profits in that year.
The aggregate operating loss in 1960 and the low aggregate
profits in 1961 and 1962 reflected in large part the change by the
producers from a freight-equalized-price basis to a delivered-price
basis. In the two years 1961-62, for example, freight prepaid by the
6 producers was equivalent to 6.6 percent of their gross sales
* * * ; comparable data are not available for earlier years, but
the corresponding ratios in 1959 and earlier years would have been
far smaller. The operating loss in 1960 also reflected a very sub-
stantial decline in shipments in that year. The moderate improvement
in profits in each of the years 1961 and 1962 was attributable in
part to the price increases in mid-1960 and early 1962 (table 10);
an additional factor in 1962 was the increased volume of shipments
(table 4). The substantial improvement in aggregate profits in 1963
reflected further increases in both shipments and prices.
36
SHEET GLASS
Appendix A
37
Table 1.--Sheet glass weighing over 4 ounces per square foot: U.S. rates of duty provided in the Tariff Schedules of the United States (TSUS), effective Aug. 31, 1963 1/
(In cents per pound and percent ad valorem)
: TSUS appendix 2/' : TSUS
item Article Item
: Glass (including blown or drawn glass, but ex- : eluding cast or rolled glass and excluding pressed or molded glass) (whether or not con-: taining wire netting), in rectangles, not .
• ground, not polished and not otherwise • • processed, weighing over 4 oz. per sq. Pt., : provided for in TSUS items 542.11-.98, . inclusive:
. Ordinary glass: • Weighing over 4 oz. but not over 12 oz. :
• • per sq. ft.: .
923.11 : Measuring not over 40 united inches--: 542.11
923.13 : Measuring over 40 united inches : 542.13
. Weighing over 12 oz. but not over 16 oz. : • per sq. ft.: .
923.21 : Measuring not over 40 united inches : 542.21
923.23 : Measuring over 40 but not over 60 . united inches 542.23
923.25 : Measuring over 60 united inches - Weighing over 16 oz. but not over 28 oz. :
: per sq. ft.:
: 542.25
923.31 : Measuring not over 40 united inches : 542.31
923.33 : Measuring over 40 but not over 60 . : 542.33 united inches
923.35 : Measuring over 60 but not over 100 : united inches • 542.35
: 542.37
923.37 : Measuring over 100 united inches Weighing over 28 oz. per sq. ft.:
923.42. : Not over 2-2/3 sq. ft. in area : 542.42
923.44 • Over 2-2/3 but not over 7 sq. ft. in : 542* area
923.46 : Over 7 but not over 15 sq. ft. in area • 542.46
923.48 : Over 15 but not over 16-2/3 sq. ft: in i area
542.48
923.49 : Over 16-2/3 sq. ft. in area : 542.48 :
• . • . : Statutory : : rate 3/ :
, Trade- agreement rate 4/
. .
1 :
Escape-action • rate 5/
•
• • •
•• ;
• : : 1.50 : 1.90 . : : . 2.10 . : 2.40
2.50 : . • : 1.50 1 : 1.90 . : 2.40 : 2.80
: 1.50
: 1.90
; 2.40 • . : 2.80 : 2.80
•
: :
:
:
•• : • • • •• • : • : • • : :
• .
.
.
: : : . . :
0.70 .20
1.00
1.10 1.20
.70
.90
1.10 1.40
.70
.90
1.10
1.40 1.40
: •
•
:
: :
:
:
: :
:
:
1.30 1.60
1.30
1.60 1.90
1.30
1.60
1.90 2.40
1.30
1.60
1.90
2.40 3.50
See footnotes at end of table.
38
Table 1.--Sheet glass weighing over 4 ounces per square foot: U.S. rates of duty provided in the Tariff Schedules of the United States (TSUS), effective Aug. 31, 1963 1/--Continued
(In cents per pound and percent ad valorem) . • .
. : TSUS appendix 2/ _ : TSUS : StatutorY : Trade- : Esca e- p
item : rate 3/ : agreement : action . . - . rate 4/ t rate 5/
: Glass (including blown or drawn glass, of * * :
: provided for in TSUS items 542.11-.98, :
: inclusive:--Continued : . : • Colored or special glass: • . :
923.57 ; *Weighing over h oz. but not over 12 oz. : t. per sq. ft. : 542.57 : 4.00 : 1.70 t . 2.20
923.67 : Weighing over 12 oz. but not over 16 oz. : . . per sq. ft. : 542.67 : 13.00 ; 6.00 9.00 ..
: Weighing over 16 oz. but not over 28 oz. : . 1 • per sq.ft.: . : t
923.71 : Measuring not over 40 united inches--: 542.71 : 1.50 + 5% : 0.70 4 2.5% : 1.30 + 2.5%
923.73 : Measuring over 40 but not over 60 : . . . united inches - : 542.73 • 1.90 + 5% • 0.90 + 2.5% : 1.60 + 2.5%
923.75 : Measuring over 60 but not over• 90 : . . united inches-- ----- __________ ----- : 542.75 : 2.40 + 5% s 1.10 + 2.5% : 1.90 + 2.5%
923.77 : Measuring over 90 united inches : 542.77 : 2.80 + 5% : 1.40 4. 2.5% ! 2 , 40 4 2.5% Weighing over 28 oz. per sq. ft.: . , . $ $
923.92 : Not over 2-2/3 sq. ft. in area : 542.92 : 1.50 + 5% s 0.70 + 2.5% $ 1,30 4- 2.5%
923.94 : Over 2-2/3 but not over 7 sq. ft. in : . : s area-- -------------- : 542.94. 1.90 + 5% : 0.90 + 2.5% s 1.60 4- 2.5%
923.96 : Over 7 but not over 15 sq. ft. in . . . : area • 542.96 : 2.40 + 5% • 1.10 + 2.5% • 1.90 + 2.5%•
923.98 : Over 15 but not over 16-2/3 sq. ft. in : . . . area : 542.98 : 2.80 + 5% : 1.40 + 2.5% : 2.4¢ + 2.5%
923.99 : Over 16-2/3 sq. ft. in area --: 542.98 : 2.80 + 5% : 1.40 + 2.5% : 3.50 + 2.5%
: . . . . 924.00 : Glass, cut to other than rectangular shape, and:
: glass, whether in rectangles or cut to other : than rectangular shape, subjected to pro- : cessing, all the foregoing glass provided for: : in TSUS item 544.17 if drawn or blown and not: : : containing wire netting and not surface . : . ' : ground or polished : 544.17 : 60% ; 15% 22.5%
. :•
1/ The rates of duty provided in the TSUS and the TSUS appendix were placed in effect by Presidential Proclamation N. 3548.
2/ TSUS rates of duty and descriptions of articles that were the subject of Presidential proclamations under the escape-clause procedure are shown in the TSUS appendix.
3/ Rates of duty currently applied pursuant to sections 231 and 257(e) of the Trade Expansion Act of 1992 to the products of countries or areas designated as Communist dominated or controlled, except the rates on TSUS appendix items 923.49 and 923.99. The applicable rates on these two items are the higher escape-action rates. .4/ The most recent rates of duty placed in effect as a result of a concession granted under the'General
Ageement on Tariffs and Trade, as modified by proclamation of the TSUS. The rates provided in the con- cession were in effect until June 17, 1962.
Temporary rates of duty placed in effect June 17, 1962, by Presidential Proclamation No. 3455 under -th escape-clause procedure, as modified by proclamation of the TSUS.
Item : Article
39
Table 2.--Sheet glass weighing over 4 ounces per square foot: Average ad valorem equivalents of U.S. specific rates of duty 1/ imposed on sheet glass entitled to most-favored-nation tariff treatment, imported during 1961, 1963, and 1964
Average ad valorem equivalents Description
1961 2/ ; 1963 2/ ; 1964
1 Percent :
•
Percent : Percent
Sheet glass weighing not over 28 ounces per t square foot and measuring in united inches--
•
•
Not over 8.3 : 17 .6 18.3 Over 40 but not over 60---------- -------1 13.3 : 27 .8 26.2 Over 60 but not over 100----- ------ 14.6 : 29.3 : 27.2 Over 17.1 t 31.2 30.6
Sheet glass weighing over 28 ounces per square foot and measuring in square feet-- •
•
Not over . 11.4 t 25.2 22.9 Over 2-2/3 but not over 7 -- - '12.1 t 25.4 : 25.1 Over 7 but not over 14.3 : 27.9 : 27.0' Over 15 3/ ----: 17.2 3 56.9 53.6'
1/ The ad valorem equivalents shown here do not include the 22 percent ad valorem additional rate of duty applicable to sheet glass when bent, beveled' colored, etc. 2/ Under the Tariff Act of 1930 the determination of the applicable rates
of duty to imports of sheet glass was based on the surface area of the glass (in square inches). Under the TSUS the determination of the applicable rate of duty for glass weighing not over 28 ounces per square foot is based on the dimensional measurements of the glass (i.e., united inches; the term united inches refers to the sum of the length plus the width) whereas the determination of the applicable rate of duty for glass weighing over 28 ounces per square foot continues to be based on the surface area of the glass (now reported in square feet). Under the TSUS the surface area brackets for the heavier glass were modified slightly to bring the tariff provisions more closely into conformity with existing trade practices. -
In calculating the equivalents for the provisions shown above for 1961 and for the January-August portion of 1963 the following allocations were used:
Sheet glass Not over 28 ounces per
square foot (united inches)
Not over 40 Over 40 but not over 60
Over 60 but not over 100
Over 100
weighing-- Over 28 ounces per
square foot (square feet)
Not over 2-2/3 Over 2-2/3 but not
over 7 Over 7 but not over 15
Over 15
Sheet glass (all weights)
(square inches)
Not over 384 Over 384 but not
over 864 Over 864 but not
over 2400 Over 2400
3/ The glass used in computing these ad valorem equivalents consisted preponderantly of glass measuring over 16-2/3 square feet (2,400 square inches) in area and dutiable at 3.5 cents per pound; however, a small quantity of glass measuring between 15 square feet (2,160 square inches) and 16-2/3 square feet in area and dutiable at 2.4 cents per pound was also included. The inclusion of the glass, in the latter bracket did not materially affect the ad valorem equivalents shown.
Source: Compiled from official statistics of the U.S. Department of Commerce.
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123.6 145.2 102.1 1192 .6 1 :1 164.4
1! 33.3:: 76.0
115.9 141.1 97.7 152.7 124.8
155.6
Table 6.--U.S. producers' inventories of sheet glass, as of Dec. 31 of 1954-64 1/
Clear : Total
(In millions of pounds)
Date : Colored
Dec. 31-- t 1954 -------------: 3.9
3.9 3.4 8.8 6.3 7.7 4.1 4.4 6.9 7.6 8.8
: : : : : : : : : • .
1955 .---........---------.........: 1956. : 1957------- ------ ....--: 1958------------- ....... ---: 1959.-- ..... ---------------: 1960 - -- ...... ---- : 1961-----------------------: 1962 ........ __________: 1963_______________________ :
_ 1964 ___________: .
1/ Includes only inventories of glass inspected for defects and cut to the size in which it is intended to be sold; does not include inven-tories of glass intended to be recut before shipment.
Source:. Compiled from data submitted to the U.S. Tariff Commission by U.S. producers.
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0 TA • 0 0
k ‘0.1) 0(..' I -I a) a) 4-1 0,10,J - ri H 14 44 0 V r 4-3 .0 H sr
0 ( tH
0 .14 4-3 02 Qt ta •P 0.) al '0 .• iii 0
til li 11 ril 1 424 1,1 0 ON 0 a)
V) Pl A 04 cel $1 6 0)
0 1 Pi
Ill ........e-10) -Pcd .....,8 PI .42(1) 0
7 a '-e---il Oil ;1
g g MI 1
CI)0 44 Gra PI:o. n
4 C-I ct-1 43
50
Table 1g.—Sheet Glass: Profit-and-loss experience of '6. domestic producers on their sheet glass operations for 1955-1963
Year
• : Net sales and intracompany transfers
Net operating profit or (loss)
before income taxes
Ratio of net operating profit or (loss) to net
sales
1955
1956
1,000 dollars 1,000 dollars Percent.
23.3 .
20.1
128,901 t
126,810 :
30,056 :
25 0 502
1957 - 104,290 : 10,007 9.6
1958 94,822 : 6,349 t 6.7
1959 - 2 128,371 17,276 13.4
1960 1/ • 1/ • 1/
1961 107,390 : 1,346 : 1. 3
1962 121,962 : 3,265 : 2.7
1963 130,938 : 12,417 t 9.5
1/ Publication of 1960 data would disclose individual company operations.
Source: Compiled from information submitted to.the U.S. Tariff Commission by the domestic producers.
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