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

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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

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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.

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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.

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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.

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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.

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(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

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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.

*

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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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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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