Domestic Clothespin Industry Letter to the Speaker of the House and the President of the Senate Transmitting a Report.

Dear Mr. Speaker: (Dear Mr. President:)

In accordance with section 203(b)(1) of the Trade Act of 1974, enclosed is a report to the Congress setting forth my decision to provide import relief on wood and plastic clothespins in the form of a price-bracketed quota.

Sincerely,

JIMMY CARTER

IMPORT RELIEF ACTION

CLOTHESPINS

As required under section 203(b)(2) of the Trade Act of 1974, I am transmitting this report to Congress setting forth the action I will take with respect to wood and plastic clothespins covered by the affirmative finding on December 12, 1978 of the U.S. International Trade Commission (USITC) under section 201 (d) (1) of the Trade Act.

After considering all relevant aspects of the case, including those considerations set forth in section 202(c) of the Trade Act of 1974, I have decided to authorize import relief which is a variation on the relief recommended by the USITC. Within 15 days, I will issue a Presidential Proclamation authorizing the imposition of a three-year, global quota on wooden and plastic spring clothespins (TSUS 790.05) with a dutiable value of not more than $1.70 per gross. The quota, administered quarterly on a pro rata basis, will be 'broken down as follows:

During the course of each year, as it becomes apparent that the quota for any price bracket will not be filled for the year, then the remainder of the allocation may be reapportioned among the other brackets whose quotas have been filled.

Yearly quota allocation

Category (gross)

Valued not over 80 cents per gross------------------------ 500, 000

Valued over 80 cents per gross but

not over $1.35 per gross---------------------------------- 600, 000

Valued over $1.35 per gross but not

over $1.70 per gross-------------------------------------- 900, 000

Total ---------------------------------------------- 2, 000, 000

The relief option I have authorized is slightly less restrictive than the USITC recommended action though it will be effective in limiting imports. The USITC quota was overly restrictive with respect to lowest price producers and too generous with higher price clothespins which are not currently traded in significant volumes. The remedy I have chosen also would have a less distortive impact on the imports of additional suppliers, who have not participated in the surge in imports and should enable domestic producers to expand their capacity utilization rates to more efficient operating levels.