Synthetic resins and their raw materials / A survey of the types and uses of synthetic resins, the organization of the industry, and the trade in resins and raw materials, with particular references to factors essential to tariff consideration. Under the general provisions of section 332, title III, part II, Tariff act of 1930.

by United States Tariff Commission

FOOTNOTES

[1] A glossary of technical terms is included in [appendix F.] p. [160] of this report. There are, however, certain fundamental terms which it would be advisable to have clearly in mind at this point.

[2] Shellac is a substance secreted by lac insects feeding on certain types of hardwood trees.

[3] Journal of the Society of Chemical industry, 1901. Vol. 20, p. 1075.

[4] Current sales prices in the United States average between 7 and 10 cents per pound and any imports would be dutiable under the provisions of par. 28 of the Tariff Act of 1930 at 45 percent ad valorem based on American selling price plus 7 cents per pound. Based on an American selling price of 7 cents per pound, the import duty would be slightly more than 10 cents per pound, while on an American selling price of 10 cents per pound the duty would be 11.5 cents per pound.

[5] Zelov, Victor I. Automatic Molding, Pt. 2, Advantages and limitations. Modern Plastics, v. 15, No. 2, p. 206; October 1937.

[6] For texts and interpretation of exclusion orders see Treasury Decisions 41512; 41895; 44411; 44491; 44776; and 44977.

[7] American selling price is defined in section 402, (g) as: “The American selling price of any article manufactured or produced in the United States shall be the price, including the cost of all containers and coverings of whatever nature and all other costs, charges, and expenses incident to placing the merchandise in condition packed ready for delivery, at which such article is freely offered for sale to all purchasers in the principal market of the United States, in the ordinary course of trade and in the usual wholesale quantities in such market, or the price that the manufacturer, producer, or owner would have received or was willing to receive for such merchandise when sold in the ordinary course of trade and in the usual wholesale quantities, at the time of exportation of the imported article.”

[8] United States value is defined in section 402, (e) as: “The United States value of imported merchandise shall be the price at which such or similar imported merchandise is freely offered for sale, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of exportation of the imported merchandise, in the usual wholesale quantities and in the ordinary course of trade, with allowance made for duty, cost of transportation and insurance, and other necessary expenses from the place of shipment to the place of delivery, a commission not exceeding 6 per centum, if any has been paid or contracted to be paid on goods secured otherwise than by purchase, or profits not to exceed 8 per centum and a reasonable allowance for general expenses, not to exceed 8 per centum on purchased goods.”

[9] The reclassifications read:

Par. 2. “Vinyl acetate, polymerized or unpolymerized, and synthetic resins made in chief value therefrom, not specially provided for.”

Par. 11. “Synthetic resins made in chief value from vinyl acetate, not specially provided for.”

[10] See sections on import under each resin.

[11] Reduced May 23, 1934, from 25 cents per pound and 30 percent by Presidential proclamation under Section 336 of the Tariff Act of 1930.

[12] Based on the total sales in 1937 reported to the Tariff Commission; sales in dollars dived by quantity (net resin content).

[13] The new consumption-restriction regulations are—

Exterior use on plaster, brick, stone, and cement:

1. Surfaces already painted with oil paint may be repainted with oil paints, without restrictions;

2. Surfaces calcimined may be painted with paints containing not more than 15 percent oil;

3. Unpainted surfaces may be painted only with paints free of oil.

Exterior use on wood:

Linseed oil paint may be used for the first coat, and succeeding coats may contain up to 70 percent oil.

Exterior and interior use on metal:

Oil paints may be used without restriction.

Interior use on plaster, brick, stone, and cement:

1. Surfaces already painted with oil paint may only be repainted with paint containing not more than 15 percent oil.

2. Unpainted surfaces must be painted with paint free of oil.

Interior use on wood, to be cleaned with soap and soda:

El Varnish and oil varnish may be used for the first coat followed by paint containing up to 70 percent oil.

Interior use on wood, not cleaned with soap and soda:

As above, except that succeeding coats may contain not more than 40 percent oil.

[14] Acknowledgment: Most of the information about the industry in Great Britain was submitted by Norman Inwood of the staff of the American consulate general at London, England.

[15] Acknowledgment: Information obtained on the synthetic resin industry in France was furnished by Addison E. Southard, American consul general at Paris.

[16] Acknowledgment: Much of the information on the Japanese synthetic resin industry included herein was furnished by Carl H. Boehringer, Assistant Trade Commissioner at Tokyo at the request of the U.S. Tariff Commission.

[17] These figures are based on an average naphthalene content of coal tar of slightly less than 10 percent. The total amount contained would, of course, not be recovered even under ideal market conditions as to price and demand.

[18] Par. 1651. Coal-tar products: ... naphthalene which after the removal of all the water present has a solidifying point less than 79° C. ... (Free).

[19] Par. 27. Coal-tar products:

(a) (1), (5) ... naphthalene which after the removal of all water present has a solidifying point of 79° C. or above; all the foregoing products in this paragraph whether obtained, derived, or manufactured from coal tar or other sources; ... 40 percent ad valorem and 7 cents per pound.

(c) The ad valorem rates provided in this paragraph shall be based upon the American selling price (as defined in subdivision (g) of section 402, title IV), of any similar competitive article manufactured or produced in the United States. If there is no similar competitive article manufactured or produced in the United States then the ad valorem rate shall be based upon the United States value, as defined in subdivision (e) of section 402, title IV.

(d) For the purposes of this paragraph any coal-tar product provided for in this act shall be considered similar to or competitive with any imported coal-tar product which accomplishes results substantially equal to those accomplished by the domestic product when used in substantially the same manner.

[20] Upon American selling price or United States value.

[21] The relevant provisions of this act are as follows:

Par. 27 (b) ... phenol, carbolic acid which on being subjected to distillation yields in the portion distilling below one hundred and ninety degrees centigrade a quantity of tar acids equal to or more than 5 per centum of the original distillate, ..., and any mixture of any of the foregoing products with any of the products provided for in paragraph 1651, 20 per centum ad valorem and 3½ cents per pound.

(c) The ad valorem rates provided in this paragraph shall be based upon the American selling price (as defined in subdivision (g) of section 402, title IV), of any similar competitive article manufactured or produced in the United States. If there is no similar competitive article manufactured or produced in the United States then the ad valorem rate shall be based upon the United States value, as defined in subdivision (e) of section 402, title IV.

(d) For the purposes of this paragraph any coal-tar product provided for in this Act shall be considered similar to or competitive with any imported coal-tar product which accomplishes results substantially equal to those accomplished by the domestic product when used in substantially the same manner.

[22] In 1923 the unit value of domestic sales was 27 cents per pound and the duty on imports (computed specific rate per pound) was 16 cents; in 1925 the corresponding figures were 21 and 16 cents, respectively.

[23] Par. 1651. Coal-tar products: ..., all mixtures of any of these distillates and any of the foregoing pitches, and all other materials or products found naturally in coal tar, whether produced or obtained from coal tar or other source, and not specially provided for in pars. 27 or 28....

[24] Par. 27 (a) (2). Coal-tar products: All distillates (except those provided for in sub-paragraph (b)) of coal tar, blast-furnace tar, oil-gas tar, and water-gas tar, ..., which on being subjected to distillation yield in the portion distilling below two hundred and fifteen degrees centigrade a quantity of tar acids equal to or more than 75 per centum of the original distillate.

[25] Par. 27 (b). Metacresol having a purity of 90 per centum or more, orthocresol having a purity of 90 per centum or more, paracresol having a purity of 90 per centum or more, ... and any mixture of any of the foregoing products with any of the products provided for in paragraph 1651, ...

Par. 27 (c). The ad valorem rates provided in this paragraph shall be based upon the American selling price (as defined in subdivision (g) of section 402, title IV), of any similar competitive article manufactured or produced in the United States. If there is no similar competitive article manufactured or produced in the United States then the ad valorem rate shall be based upon the United States value, as defined in subdivision (e) of section 402, title IV.

Par. 27 (d). For the purposes of this paragraph any coal-tar product provided for in this Act shall be considered similar to or competitive with any imported coal-tar product which accomplishes results substantially equal to those accomplished by the domestic product when used in substantially the same manner.

[26] Par. 27 (b). ... cresylic acid which upon being subjected to distillation yields in the portion distilling below two hundred and fifteen degrees centigrade a quantity of tar acids equal to or more than 75 per centum of the original distillate....

[27] Some of the makers of these products do not care to be identified with their manufacture.

[28] Some of the makers of these products are not listed because they do not care to be so identified.

[29] Based on pp. 321-4, Modern Plastics, October 1937.

[30] Source: Peele’s Mining Engineers’ Handbook, Ed. 1, p. 2209.