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USITC Recommends Higher Duties on Imports of Hangers from China
President must make final decision on whether to impose tariffs

Washington -- Five U.S. International Trade Commission (USITC) commissioners have recommended that President Bush impose additional duties on U.S. imports of wire garment hangers from China.

The commissioners' recommendations, announced at a February 5 meeting, varied somewhat. President Bush will make the final decision about whether to impose any tariffs at all and what the level should be.

In January the commissioners made their decision in the first phase of the case filed under Section 421 of U.S. trade law, a provision of the legislation implementing the bilateral agreement related to China's accession to the World Trade Organization.

They decided then that the imports were causing or threatening market disruption for domestic producers who were thus eligible to receive temporary import relief.

In the second phase, on possible remedies, three of the commissioners -- Deanna Okun, Jennifer Hillman and Marcia Miller -- proposed that the president impose additional duties of 25 percent in the first year, 20 percent in the second and 15 percent in the third.

Commissioner Lynn Bragg recommended imposition of additional duties of 20 percent in the first year and 15 percent in the second.

Commissioner Stephen Koplan recommended imposition of additional 30-percent duties for three years.

Earlier in January the president decided in the first case filed under Section 421 against providing any relief for domestic producers of certain electromechanical devices called pedestal actuators, ignoring commissioners' recommendations.


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