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

Tariff history.

The earliest mention of synthetic resins in the tariff laws of the United States was the provision in group III of the Emergency Tariff Act of 1916 for a duty of 30 percent ad valorem and 5 cents per pound on synthetic phenolic resins. None of the non-coal-tar synthetic resins were specifically mentioned prior to the Tariff Act of 1930.

The Tariff Act of 1922 (par. 28) provided for synthetic phenolic resin and all resinlike products, solid, semisolid or liquid, prepared from phenol, cresol, phthalic anhydride, coumarone, indene, or from any other article or material provided for in paragraph 27 or 1549. The rate of duty was 60 percent ad valorem based on American selling price or United States value and 7 cents per pound, with a provision that the ad valorem rate should be reduced to 45 percent 2 years after the passage of the act.

The Tariff Commission made two investigations of synthetic resins under section 316 of the act of 1922. The first was undertaken April 16, 1926, upon complaints of several domestic manufacturers, of unfair methods of competition and unfair acts in the importation and sale of synthetic phenolic resin, Form C, and articles made wholly or in part therefrom, in infringement of the patent rights of the Bakelite Corporation. Following the investigation, the Commission recommended on May 25, 1927, that this material (as described under United States Patents No. 942,809 and 1,424,738) be excluded from entry into the United States. Importers appealed from the findings of the Commission to the Court of Customs Appeals, and the judicial proceedings were ended on October 13, 1930, by denial of a writ of certiorari for the Supreme Court of the United States to review the judgment of the Court of Customs and Patent Appeals. The latter court had held, among other things, that there was substantial evidence in support of each finding of the Commission. On November 26, 1930, the Treasury Department issued an order prohibiting the importation of synthetic phenolic resin, Form C, with certain exceptions. (T. D. 44411.)

The second investigation by the Tariff Commission was instituted on December 23, 1927, also under section 316 of the act of 1922. It concerned unfair methods of competition and unfair acts in the importation into the United States of laminated products of paper or other materials and insoluble, infusible condensation products of phenols and formaldehyde. The Commission recommended to the President that, until March 4, 1929, inclusive, certain products covered by United States Letters Patent Nos. 1,018,385, 1,019,406, and 1,037,719 be excluded from entry into the United States. These products were laminated cloth, paper or the like, combined with insoluble, infusible condensation products of phenols and formaldehyde. The order of the President prohibiting the importation was contained in T. D. 42801 issued June 11, 1928.

Under the Tariff Act of 1930, practically no changes were made in the provisions of paragraph 28 that concern coal-tar synthetic resins. Paragraph 2 was extended to include, among other things, the resins (polymers) of certain organic compounds. The only commercial products covered by this provision are the vinyl resins. The rate of duty was 30 percent ad valorem on foreign value and 6 cents per pound. Under the trade agreement with Canada, the duty on vinyl acetate, polymerized or unpolymerized, and on synthetic resins made in chief value therefrom was reduced to 15 percent ad valorem and 3 cents per pound (effective Jan. 1, 1936).

The Tariff Act of 1930 contains a provision, in paragraph 11, for synthetic gums and resins not specially provided for, 4 cents per pound and 30 percent ad valorem on foreign value.