United States International Trade Commission

Last updated
International Trade Commission
U.S. International Trade Commission.png
Agency overview
FormedSeptember 8, 1916
Preceding agency
  • U.S. Tariff Commission
JurisdictionInternational Trade Issues
Headquarters Washington, D.C.
Employees402 (civilian career employees as of September 30, 2017) [1]
Agency executive
  • David S. Johanson, Chairman
Website www.usitc.gov
Footnotes
[2]

The United States International Trade Commission (USITC or I.T.C. [3] ) is an agency of the United States federal government that advises the legislative and executive branches on matters of trade. It is an independent, bipartisan[ which? ][ clarification needed ] entity that analyzes trade issues such as tariffs and competitiveness and publishes reports. As a quasi-judicial entity, the USITC investigates the impact of imports on U.S. industries, and directs actions against unfair trade practices, such as subsidies; dumping; and intellectual property infringement, including copyright infringement. [4]

Contents

Background and statutory authority

The USITC was established by the U.S. Congress on September 8, 1916, as the U.S. Tariff Commission. [5] In 1974, the name was changed to the U.S. International Trade Commission by section 171 of the Trade Act of 1974. [6] Statutory authority for the USITC's responsibilities is provided by the following legislation:

Mission

USITC, Washington, DC USITC building.jpg
USITC, Washington, DC

The U.S. International Trade Commission seeks to:

  1. Administer U.S. trade remedy laws within its mandate in a fair and objective manner;
  2. Provide the President, Office of the United States Trade Representative, and Congress with independent, quality analysis, information, and support on matters of tariffs and international trade and competitiveness; and
  3. Maintain the Harmonized Tariff Schedule of the United States.

In so doing, the Commission serves the public by implementing U.S. law and contributing to the development and implementation of sound and informed U.S. trade policy.

The USITC's five operations are:

  1. Import Injury Investigations
  2. Intellectual Property-Based Import Investigations
  3. Research Program
  4. Trade Information Services
  5. Trade Policy Support

Commissioners

The president nominates and the U.S. Senate confirms the six commissioners who make up the USITC. The president and the secretary of state sign the formal commission.

Commissioners' terms are nine years, or, when filling a vacated seat, for the remainder of a term. Their terms are staggered to end 18 months apart. Commissioners may not be reappointed at the start of a new term unless they have served less than five years, although commissioners stay on past the end of their term until their successor is appointed and confirmed. No more than three of the commissioners may be of the same political party.

The chairman's term is for two years, and successive chairmen may not be of the same political party. Only a commissioner with more than one year of service may be designated chairman. [7]

The commissioners are: [8]

MemberPositionStateEntered officeTerm expiresPartyOriginally appointed by
David S. Johanson ChairTexasDecember 8, 2011December 16, 2018Republican Barack Obama
Rhonda K. SchmidtleinCommissionerMissouriApril 28, 2014December 16, 2021Democratic Barack Obama
Jason Kearns CommissionerColoradoApril 2, 2018December 16, 2024Democratic Donald Trump
Amy A. KarpelCommissionerWashingtonAugust 26, 2019June 16, 2023Democratic Donald Trump
VacantCommissionerJune 16, 2026
VacantCommissionerJune 16, 2029

Hearings

Although the USITC is not a court, its administrative law judges conduct trial-type official administrative hearings. If a Section 337 Tariff Act complaint has at least three votes from its six Commissioners, an official investigative hearing will be assigned to an administrative law judge. Several dozen new USITC investigations are filed every year. [3] Judicial review is normally exercised by the United States Court of Appeals for the Federal Circuit. [9] After the parties have had the opportunity to conduct fact and expert discovery to develop their respective legal positions, the ALJ (administrative law judge) holds a formal, evidentiary hearing, or trial. There is no jury. About three months after considering the arguments of the parties, the ALJ renders an initial determination (ID). The full ITC reviews and may adopt, modify or reverse the ALJ's initial determination. The ITC's final determination is usually issued about four months after the ALJ's ID. [10] The USITC can impose exclusion orders that keep violating products from entering the United States. [11] Exclusion orders are those in which disallow products from entering the United States for sale. [12] While the Administrative Law Judges make determinations, the final decision of relief (i.e. exclusion from import) is made by the President of the United States. [13] Should a party disagree with the decision, appeals may be made to the U.S. Court of Appeals for the Federal Circuit. [11]

History

As part of a large group of legislation passed during the Progressive Era in the early 1900s, U.S. Congress established the United States Tariff Commission in 1916, which had a purpose to apply scientific principles to the study of tariffs and to assist in recommending appropriate tariff levels. [14] Frank Taussig, then an Economics professor at Harvard University, was named the U.S. Tariff Commission's very first chairman. [14] The first offices of the U.S. Tariff Commission were located at 1322 New York Avenue, Washington D.C. [14] Also in 1921, the U.S. Tariff Commission moved to the Old Post Office Building at 7th and E Street NW. [14]

Effective January 1, 1975, the U.S. Tariff Commission was renamed the U.S. International Trade Commission. [14] The USITC had a number of new responsibilities under the Trade Act of 1974, and commission procedures under Section 337 of Tariff Act of 1930 were greatly changed, and Section 337 proceedings brought before Administrative Law Judges had to now conform with the Administrative Procedure Act. [14] Section 337 decisions were also made final, instead of advisory (although subject to presidential disapproval due to policy reasons), and the USITC was also authorized to issue cease and desist orders in addition to exclusion orders. [14]

In 1988, the USITC moved its quarters from the Old Post Office Building to the building it remains in to this day, 500 E Street SW. [14]

Past commissioners of the USITC include:

On January 4, 1985, a USITC decision in favor of Duracell was overturned by President Ronald Reagan. The case involved the import of alkaline batteries in competition with Duracell, the American manufacturer that developed them. [15]

On August 3, 2013, President Barack Obama overturned the commission's decision in investigation No. 337-TA-794 that would have banned Apple Inc. from importing several of its older products. [16]

In January 2015, details from the Sony Pictures Entertainment hack revealed the MPAA's lobbying of the USITC to mandate US ISPs either at the internet transit level or consumer level internet service provider, implement IP address blocking against pirate websites as well as linking websites. [17]

In January 2016, it became known that the commission was charged with investigating the likely impact of the TPP on the U.S. economy and specific industries. It will calculate the estimated impact on gross domestic product, exports and imports, employment opportunities, and U.S. consumers. [18]

In January 2018, in a surprise decision, the commission unanimously overturned a 292% trade tariff that had been imposed on the aircraft manufacturer Bombardier Aerospace. [19] [20]

See also

Related Research Articles

<span class="mw-page-title-main">Trade Expansion Act</span> 1962 US law on tariffs

The Trade Expansion Act of 1962 is an American trade law.

<span class="mw-page-title-main">Federal Trade Commission</span> United States government agency

The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust law enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.

In the United States government, independent agencies are agencies that exist outside the federal executive departments and the Executive Office of the President. In a narrower sense, the term refers only to those independent agencies that, while considered part of the executive branch, have regulatory or rulemaking authority and are insulated from presidential control, usually because the president's power to dismiss the agency head or a member is limited.

<span class="mw-page-title-main">Canada–United States softwood lumber dispute</span> Trade dispute between Canada and the United States

The Canada–U.S. softwood lumber dispute is one of the largest and most enduring trade disputes between both nations. This conflict arose in 1982 and its effects are still seen today. British Columbia, the major Canadian exporter of softwood lumber to the United States, was most affected, reporting losses of 9,494 direct and indirect jobs between 2004 and 2009.

On March 5, 2002, U.S. President George W. Bush placed tariffs on imported steel. The tariffs took effect March 20 and were lifted by Bush on December 4, 2003. Research shows that the tariffs were a net positive, reviving many previously shuttered steel factories.

<span class="mw-page-title-main">United States Customs Service</span> U.S. federal government agency from 1789 to 2003

The United States Customs Service was a federal law enforcement agency of the U.S. federal government. Established on July 31, 1789, it collected import tariffs, performed other selected border security duties, as well as conducted criminal investigations.

<span class="mw-page-title-main">U.S. Customs and Border Protection</span> American federal law enforcement agency

United States Customs and Border Protection (CBP) is the largest federal law enforcement agency of the United States Department of Homeland Security. It is the country's primary border control organization, charged with regulating and facilitating international trade, collecting import duties, as well as enforcing U.S. regulations, including trade, customs and immigration. CBP is one of the largest law enforcement agencies in the United States. It has a workforce of more than 45,600 federal agents and officers. It is headquartered in Washington, D.C.

<span class="mw-page-title-main">United States Court of International Trade</span> US court dealing with international trade and customs law

The United States Court of International Trade is a U.S. federal court that adjudicates civil actions arising out of U.S. customs and international trade laws. Seated in New York City, it exercises broad jurisdiction over most trade-related matters, and is permitted to hear and decide cases anywhere in the country, as well as abroad.

An administrative law judge (ALJ) in the United States is a judge and trier of fact who both presides over trials and adjudicates claims or disputes involving administrative law. ALJs can administer oaths, take testimony, rule on questions of evidence, and make factual and legal determinations.

<span class="mw-page-title-main">Federal Mine Safety and Health Review Commission</span>

The Federal Mine Safety and Health Review Commission is an independent adjudicative agency of the United States government that provides administrative trial and appellate review of legal disputes arising under the Federal Mine Safety and Health Amendments Act, or Mine Act, of 1977.

The United States is considered to have the most favorable legal regime for inventors and patent owners in the world. Under United States law, a patent is a right granted to the inventor of a (1) process, machine, article of manufacture, or composition of matter, (2) that is new, useful, and non-obvious. A patent is the right to exclude others, for a limited time from profiting of a patented technology without the consent of the patent-holder. Specifically, it is the right to exclude others from: making, using, selling, offering for sale, importing, inducing others to infringe, applying for an FDA approval, and/or offering a product specially adapted for practice of the patent.

<span class="mw-page-title-main">Motorola Solutions</span> American data communications and telecommunications equipment provider

Motorola Solutions, Inc. is an American video equipment, telecommunications equipment, software, systems and services provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.

<span class="mw-page-title-main">MStar</span>

MStar Semiconductor, Inc. was a Taiwanese fabless semiconductor company specializing in mixed-mode integrated circuit technologies, based in Hsinchu Hsien. MStar made hardware for multimedia and wireless communications, in the form of display ICs and mixed-mode ASIC/IPs, in addition to chip sets for GSM mobile handsets. MStar employed approx. 1300 in more than 10 branches worldwide. The company's revenue was around US$1067 million in 2010. The growth has been substantial, their revenue in 2005 was US$175 million. MStar is listed on the Taiwan Stock Exchange under the code 3697.

<span class="mw-page-title-main">Dean A. Pinkert</span> American trade lawyer

Dean Arthur Pinkert is an American trade lawyer.

<span class="mw-page-title-main">Suniva</span> US manufacturer of photovoltaic solar cells

Suniva is a 100% American owned, U.S. based manufacturer of high-efficiency crystalline silicon photovoltaic (PV) solar cells. Headquartered in metropolitan Atlanta, with a state of the art cell manufacturing facility in Georgia, Suniva had sold its PV products globally.

Motorola Mobility v. Apple Inc. was one of a series of lawsuits between technology companies Motorola Mobility and Apple Inc. In the year before Apple and Samsung began suing each other on most continents, and while Apple and High Tech Computer Corp. (HTC) were already embroiled in a patent fight, Motorola Mobility and Apple started a period of intense patent litigation. The Motorola-Apple patent imbroglio commenced with claims and cross-claims between the companies for patent infringement, and encompassed multiple venues in multiple countries as each party sought friendly forums for litigating its respective claims; the fight also included administrative law rulings as well as United States International Trade Commission (ITC) and European Commission involvement. In April 2012, the controversy centered on whether a FRAND license to a components manufacturer carries over to an equipment manufacturer incorporating the component into equipment, an issue not addressed in the Supreme Court's default analysis using the exhaustion doctrine in Quanta v. LG Electronics. In June 2012, appellate judge Richard Posner dismissed the U.S. case with prejudice and the parties appealed the decision a month later.

Gamevice, Inc. is a Simi Valley, California based tablet and tablet peripherals manufacturer specializing in gaming products.

<span class="mw-page-title-main">CSeries dumping petition by Boeing</span>

On 28 April 2016, Bombardier Aerospace recorded a firm order from Delta Air Lines for 75 CSeries CS100s plus 50 options. On 27 April 2017, Boeing filed a petition for dumping them at $19.6m each, below their $33.2m production cost. On the same day, Bombardier and the Canadian Federal Government rejected the claim, vowing to mount a "vigorous defence".

Lucia v. Securities and Exchange Commission, 585 U.S. ___ (2018), was a decision by the Supreme Court of the United States on the status of administrative law judges of the Securities and Exchange Commission. The Court held that they are considered inferior officers of the United States and so are subject to the Appointments Clause and must be appointed through the President or other delegated officer of the United States, rather than hired. As "inferior" officers, their appointments are not subject to the Senate's advice and consent role.

Brooms manufactured from broomcorn became specifically subject to an increase in US import tariffs in 1996. In response to the US action, chief exporter of broomcorn brooms Mexico requested dispute settlement from an arbitration tribunal of NAFTA, which eventually decided in Mexico's favor. It was one of only three cases to be decided under the provisions of Chapter 20 of NAFTA.

References

  1. "U.S. International Trade Commission Employment - September 2017". FedScope - Federal Human Resources Data (Database). Washington, D.C.: United States Office of Personnel Management . Retrieved 27 January 2018.
  2. "About the USITC". U.S. International Trade Commission. Retrieved 2013-08-11.
  3. 1 2 "New I.T.C. Investigations – Sec 337". Docket Alarm, Inc.
  4. "Recent Decisions from the United States International Trade Commission". Docket Alarm, Inc. USITC. Retrieved 10 April 2014.
  5. 39 Stat. 795
  6. "19 U.S.C. § 2231 - U.S. Code Title 19. Customs Duties § 2231 - FindLaw" . Retrieved 12 April 2017.
  7. "19 U.S.C. § 1330 - U.S. Code Title 19. Customs Duties § 1330 - FindLaw" . Retrieved 12 April 2017.
  8. "USITC Commissioners | USITC".
  9. "US International Trade Commission Section 337 Investigations: Answers to Frequently Asked Questions" (PDF). 2009.{{cite journal}}: Cite journal requires |journal= (help)
  10. Blakeslee, Merritt. "A Survivor's Guide to Section 337 Investigations and ITC General Exclusion Orders". Recycling Times Magazine Issue 75.
  11. 1 2 "Understanding Investigations Of Intellectual Property Infringement And Other Unfair Practices In Import Trade (Section 337) | USITC". www.usitc.gov. Retrieved 2019-11-06.
  12. "govinfo". www.govinfo.gov. Retrieved 2019-11-06.
  13. "About Import Injury Investigations | USITC". www.usitc.gov. Retrieved 2019-11-06.
  14. 1 2 3 4 5 6 7 8 USITC History, https://www.usitc.gov/flash/dynamic_timeline.htm
  15. Hartman, Carl (January 28, 1985). "Court Asked to Overturn Reagan Ruling". Associated Press . Retrieved 2013-08-11.
  16. O'Brien, Chris (August 3, 2013). "White House overrules ITC trade ban on Apple iPhones, iPads". Los Angeles Times . Retrieved 2013-08-11.
  17. Brandom, Russell (2 January 2015). "The MPAA has a new plan to stop copyright violations at the border" . Retrieved 4 January 2015.
  18. JULIE HIRSCHFELD DAVIS President Obama May Require Federal Contractors to List Campaign Gifts The Washington Post, January 19, 2016, retrieved 14 January 2016
  19. Tovey, Alan (26 January 2018). "Bombardier gains shock trade victory in the US, overturning 292% trade tariffs on UK-built planes". The Telegraph.
  20. "Bombardier wins trade dispute in US". BBC News. 2018. Retrieved 2018-04-13.