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Ice Hockey Sticks from Finland

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Ice Hockey Sticks from Finland ICE HOCKEY STICKS FROM FINLAND Determination of No Injury in Investigation No. AA1921-177 Under the Antidumping Act, 1921, as Amended Together With the Information Obtained in the Investigation USITC PUBLICATION 871 MARCH 1978 United States International Trade Commission I Washington, D.C. 20436 UNITED STATES INTERNATIONAL TRADE COMMISSION - COMMISSIONERS Daniel Minchew, Chairman Joseph 0. Parker, Vice Chairman George M. Moore Catherine Bedell Italo H. Ablondi Bill Alberger Kenneth R. Mason, Secretary to the Commission This report was prepared principally by Thomas J. King, Investigator John M. MacHatton, Supervisory Investigator Address all communications to Office of the Sec reta~y United States International Trade Commission Washington, D. C. 20436 FOR RELEASE CONTACT: Hal Sundstrom March 28, 1978 (202) 523-0161 USITC 78-035 COMMISSION RULES ON ICE HOCKEY STICKS FROM FINLAND Finds No Injury In Sales ·At Less Than Fair Value The United States International Trade Commission today reported to the Secretary of the Treasury its unanimous determination that it found no injury as a result of the less than fair value sales of ice hockey sticks from Finland withtn the meaning of the Antidumping Act, 1921, as amended. Since the Commission found no injury to U;S. in­ dustry present, no dumping duties will be imposed by the Treasury Department. Concurring in the determination were Chairman Daniel Minchew, Vice Chairman Joseph 0. Parker, and Commissioners George M. Moore, Catherine Bedell, Italo H. Ablondi, and Bill Al berger. The Commission's investigation was initiated January 5, 1978, following the filin~ of a complaint with the Department of the Treasury by the Northland Group of Chaska, Minn. The product is a hooked, wooden stick used in amateur and pro­ fessional ice hockey. It is approximately 53 inches in length a~d has a blade about 14 inches long. It is used to hit, maneuver, or block a rubber disk known as a puck. more COMMISSION RULES ON ICE HOCKEY STICKS FROM FINLAND 2 Only three companies produce ice hockey sticks in the U.S. They are the ~orthland Group, Christian Brothers, Inc., and Koho Sporting Goods, Inc. A fourth firm, Adirondak Industries, Inc., produced sticks during parts of 1974 and 1975. Production and -shipments of domestically produced ice hockey sticks both fell .sharply after 1974, but increased substantially in 1977. Apparent U.S. consumption fell from 3.6 million sticks in 1974 to 1 .8 million in 1976. Consumption increased in 1977 to 2.1 million ·sticks, valued at $9.l million, but was still 4~ percent below the 1974 level. Domestic shipments of imports from Finland fell to 290,00d sticks in 1976, but rose 'to 306,000 s~icks, valued at $1.8 million, in 1977. Finland's share of apparent U.S. consumption increased to 16 petcent in 1975 and 1976, and then fell to 14.9 percent in 1977. U.S. imports of ice hockey sticks from all sources dropped from 2.6 million sticks in 1974 to 1 .1 million sticks in 1976, and increased slightly to 1 .2 million sticks tn 1977. The 1977 level of imports was 56 percent below the 1974 level. The Commission's report, Ice Hockey Sticks From Finland (USITC Publication 871), contains the views of the Commissioners and in­ formation developed in the investigation (No. AA1921-177). Copies may be obtained by calling (262) 523-5178 or from the Office of the Secretary, 701 E Street NW., Washinefton, D.C. 20436. oOo i C 0 N T E N T S Determination of injury------------------------------------------------­ 1 Statement of reasons for the negative determination of Chairman Daniel Minchew, and Commissioners George M. Moore, Catherine Bedell, Italo H. Ablondi, and Bill Alberger----------------------------------­ 3 Additional views of Chairman Daniel Minchew----------------------------~ 9 Statement of reasons for the negative determination of Vice Chairman Joseph O. Parker------------------------------------------------------ 13 Information obtained in the investigation: Summary-------------------------------------------------------------­ A-1 In troduc t ion--------------------------------------------------------- A-3 The product: Description and uses--------------------------------------------­ A-4 U.S. tariff treatment-------------------------------------------­ A-5 Nature and extent of sales at less than fair value------------------­ A-5 The domestic industry---------~------------------------------------~- A-6 The U.S. market------------------------------------------------------ A-8 Channels of distribution: Domestic--------------------------------------------------------­ A-8 Imports---------------------------------------------------------­ A-9 U.S. consumption----------------------------------------------------­ A-9 U.S. production------------------------------------------------------ A-10 U.S. producers' domestic shipments----------------------------------­ A-11 U.S. producers' export shipments------------------------------------­ A-11 U.S. producers' inventories-----------------------------------------­ A-12 U.S. imports and domestic shipments of imports: U.S. imports from all sources-----------------------------------­ A-12 Domestic shipments of U.S. imports from all sources-------------­ A-13 LTFV imports from Finland---------------------------------------­ A-14 Domes tic shipments of LTFV imports from Finland-----------------­ A-15 Domestic shipments of U.S. produced and imported ice hockey sticks by Koho---------------------------------------------:---- A-19 Employment------------------....,----...:--------.--------------------------- A-21 Profit-and-loss experience of U.S. producers----.--------------------- A-22 Prices--------------------------------------------------------------- A-22 Evidence of lost sales----------------------------------------------- A-24 Pro shops and sporting goods stores------------------------------ A-25 Professional ice hockey teams---------------------:._ ______________ A-25 Chain stores-----------------------------------------------------·A-25 Other factors-------------------~------------------------------------ A-26 ii Contents--Continued Appendix A.--Statistical tables------------------------------------------- A-27 Appendix B.--Letter of advice from H. C. Stockel!, Acting General Counsel, U.S. Department of the Treasury, to the Chairman of the U.S. International Trade Commission, December 23, 1977----------------------- A-49 Appendix C.--U.S. International Trade Commission Notice of Investigation and Hearing----------------------------------------------- A-51 Appendix D.--Department of the Treasury Antidumping Proceeding Notice for ice hockey sticks from Finland (42 F.R. 14798), March 16, 1977------ A-55 Appendix E.--Department of the Treasury Notice of Withholding of Appraisement (42 F.R. 47190), September 22, 1977------------------------ A-57 Appendix F.--Department of the Treasury Notice of Determination of Sales at Less than Fair Value (42 F.R. 65345), December 30, 1977-------- A-59 Appendix G.--Letter from Robert H. Mundheim, General Counsel of the Treasury to the Chairman, Unitefr States International Trade Commission, March 6, 1978----------------------------------------------- A-61 Appendix H.--Probable economic effects of tariff changes under title I and title V of the Trade Act of 1974 for Trade Agreement Digest No. 70135 -------------------------------------------------------------- A-67 Tables 1. Ice hockey sticks: U.S. producers' domestic shipments, importers' domestic shipments, and apparent U.S. consumption, 1973-77--------- A-28 2. Ice hockey sticks: U.S. production and total annual plant capacity, hvJ f1rm~--- , 1Q71-77--------------------------------------------------- A-29 3. Ice hockey sticks: U.S. producers' domestic shipments, by firms, 1973-77------------------------------------------------------------ A-30 4. Ice hockey sticks: U.S. producers' shipments by value brackets and by firms, 1973-77-------------------------------------------------·- A-31 5. Ice hockey sticks: U.S. exports,- by firms, 1973-77------------------ A-32 6. Ice hockey sticks: U.S. producers' inventories, as of December 31 of 1973-77--------------------------------------------------------- A-33 7. Ice hockey sticks and all hockey equipment imported under TSUS item 734.80: U.S. imports for consumption, by sources, 1973-77--------- A-34 8. Ice hockey sticks: U.S. imports for consumption, by sources, 1973-77-----------------------------------------------------------~ A-35 9. Ice hockey sticks: Domestic shipments of U.S. imports, by sources, 1973-77------------------------------------------------------------ A-36 10. Ice hockey sticks: U.S. imports by type, value bracket, and firms, 1973-77----------------------------------------------------- A-37 iii Contents--Continued ll. Ice hockey sticks: U.S. imports from Finland, by firms, 1973-77----- A-38 12. Ice hockey sticks: Domestic shipments of U.S. imports from Finland, by firms, 1973-77----------------------------------------- A-39 13. Profit-and-loss experience of domestic producers of ice hockey sticks on all operations, 1973-77------- --------------------------- A-40 14. Net operating profit or (loss), original value, and book value of owned or leased fixed assets of the establishments in which ice hockey sticks are produced, 1973-77-------------------------------- A-41 15. Capital expenditures and research and development expenses incurred in connection with the production of ice hockey sticks, 1973-77---- A-42 16. Ice hockey sticks: Net delivered prices paid by sporting goods stores and pro shops for
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