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United States International Trade Commission

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Not to be confused with Federal Trade Commission.
International Trade Commission
Agency overview
FormedSeptember 8, 1916
Preceding agency
  • U.S. Tariff Commission
JurisdictionInternational Trade Issues
HeadquartersWashington, D.C.
Employees402 (civilian career employees as of September 30, 2017)[1]
Agency executive
  • Amy A. Karpel, Chair
Websitewww.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 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]

Background and statutory authority

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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

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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

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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]

Current commissioners

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The current commissioners as of September 24, 2024:[8]

Position Name State Entered office Term expires Party Originally appointed by
Chair Amy A. Karpel Washington August 26, 2019 June 16, 2023 Democratic Donald Trump
Commissioner David S. Johanson Texas December 8, 2011 December 16, 2018 Republican Barack Obama
Commissioner Rhonda K. Schmidtlein Missouri April 28, 2014 December 16, 2021 Democratic Barack Obama
Commissioner Jason Kearns Colorado April 2, 2018 December 16, 2024 Democratic Donald Trump
Commissioner Vacant June 16, 2026
Commissioner Vacant June 16, 2029

Nominations

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President Biden has nominated the following to fill seats on the commission. They await Senate confirmation.[9]

Position Name State Party Term expiration Replacing
Commissioner William Patrick J. Kimmitt Virginia Republican June 16, 2029 F. Scott Kieff

Hearings

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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.[10] 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.[11] The USITC can impose exclusion orders that keep violating products from entering the United States.[12] Exclusion orders are those in which disallow products from entering the United States for sale.[13] 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.[14] Should a party disagree with the decision, appeals may be made to the U.S. Court of Appeals for the Federal Circuit.[12]

History

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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.[15] Frank Taussig, then an Economics professor at Harvard University, was named the U.S. Tariff Commission's very first chairman.[15] The first offices of the U.S. Tariff Commission were located at 1322 New York Avenue, Washington D.C.[15] Also in 1921, the U.S. Tariff Commission moved to the Old Post Office Building at 7th and E Street NW.[15]

Effective January 1, 1975, the U.S. Tariff Commission was renamed the U.S. International Trade Commission.[15] 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.[15] 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.[15]

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.[15]

Past commissioners of the USITC include:

  • Paula Stern (D-TN, sworn in October, 1978, for a term expiring in February 1987)
  • Daniel R. Pearson (R–MN; sworn on August 8, 2003, for a term expiring on June 16, 2011)
  • Shara L. Aranoff (D–MD; sworn on September 6, 2005, for a term expiring on December 16, 2012)
  • Dean A. Pinkert (D–VA; sworn on February 26, 2007, for a term expiring on December 16, 2015)

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.[16]

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.[17]

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.[18]

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.[19]

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.[20][21]

See also

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References

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  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. ^ a b "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. ^ "Commissioner Bios". USITC.gov. U.S. International Trade Commission. Retrieved September 24, 2024.
  9. ^ "Quick Search International Trade Commission". Congress.gov. Library of Congress. Retrieved September 24, 2024.
  10. ^ "US International Trade Commission Section 337 Investigations: Answers to Frequently Asked Questions" (PDF). 2009. {{cite journal}}: Cite journal requires |journal= (help)
  11. ^ Blakeslee, Merritt. "A Survivor's Guide to Section 337 Investigations and ITC General Exclusion Orders". Recycling Times Magazine Issue 75.
  12. ^ a b "Understanding Investigations Of Intellectual Property Infringement And Other Unfair Practices In Import Trade (Section 337) | USITC". www.usitc.gov. Retrieved 2019-11-06.
  13. ^ "govinfo". www.govinfo.gov. Retrieved 2019-11-06.
  14. ^ "About Import Injury Investigations | USITC". www.usitc.gov. Retrieved 2019-11-06.
  15. ^ a b c d e f g h USITC History, https://www.usitc.gov/flash/dynamic_timeline.htm
  16. ^ Hartman, Carl (January 28, 1985). "Court Asked to Overturn Reagan Ruling". Associated Press. Retrieved 2013-08-11.
  17. ^ O'Brien, Chris (August 3, 2013). "White House overrules ITC trade ban on Apple iPhones, iPads". Los Angeles Times. Retrieved 2013-08-11.
  18. ^ Brandom, Russell (2 January 2015). "The MPAA has a new plan to stop copyright violations at the border". Retrieved 4 January 2015.
  19. ^ JULIE HIRSCHFELD DAVIS President Obama May Require Federal Contractors to List Campaign Gifts The Washington Post, January 19, 2016, retrieved 14 January 2016
  20. ^ Tovey, Alan (26 January 2018). "Bombardier gains shock trade victory in the US, overturning 292% trade tariffs on UK-built planes". The Telegraph.
  21. ^ "Bombardier wins trade dispute in US". BBC News. 2018. Retrieved 2018-04-13.
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