Production Sharing: Use of U.S. Components and Materials in Foreign Assembly211 Operations, 1994-1997. (U.S. Imports Under Production-Sharing Provisions of 211 Harmonized Tariff Schedule Chapter 98). Investigation No. 332-237

摘要

The U.S. International Trade Commission (USITC) reports annually on U.S. import211u001etrends under the production-sharing provisions of the Harmonized Tariff Schedule 211u001e(HTS). The current report focuses on developments in 1997 related to the use of 211u001eU.S.-made components in foreign assembly plants and places these developments in 211u001ethe context of trends over the past four years. Imports that incorporate U.S.-211u001emade components can enter the United States either free of duty (for certain 211u001eapparel) or at reduced duties under the production-sharing provisions (PSP) of 211u001eChapter 98 of the HTS. Rationalization of production through the use of 211u001eproduction-sharing operations has become an increasingly integral part of global 211u001eefforts to reduce manufacturing costs. U.S. firms typically invest in production-211u001esharing facilities to reduce labor costs and to improve competitiveness in U.S. 211u001eand third-country markets. These firms usually retain product development and 211u001edesign, capital-intensive manufacturing, and marketing-related activities in the 211u001eUnited States, while shifting labor-intensive assembly to countries with lower 211u001elabor costs. Some firms have penetrated foreign markets by establishing local 211u001eassembly operations when trade barriers or high transportation costs inhibit 211u001edirect exports of finished products from the United States.