NORTH CAROLINA JOURNAL OF INTERNATIONAL LAW Volume 9 Number 3 Article 5 Summer 1984 Section 103 of the Revenue Act of 1971 and the Houdaille Case: A New Trade Remedy Patrick F. Macrory J. Kenneth I. Juster Follow this and additional works at: https://scholarship.law.unc.edu/ncilj Part of the Commercial Law Commons, and the International Law Commons Recommended Citation Patrick F. Macrory J. & Kenneth I. Juster, Section 103 of the Revenue Act of 1971 and the Houdaille Case: A New Trade Remedy, 9 N.C. J. INT'L L. 413 (1983). Available at: https://scholarship.law.unc.edu/ncilj/vol9/iss3/5 This Article is brought to you for free and open access by Carolina Law Scholarship Repository. It has been accepted for inclusion in North Carolina Journal of International Law by an authorized editor of Carolina Law Scholarship Repository. For more information, please contact
[email protected]. Section 103 of the Revenue Act of 1971 and the Houdaille Case: A New Trade Remedy?* by Patrick F. J. Macrory** and Kenneth I. Juster*** On May 3, 1982, Houdaille Industries, Inc. (Houdaille), a U.S. machine tool manufacturer, filed a petition with the U.S. Government requesting that the President suspend indefinitely the investment tax credit available to purchasers of numerically controlled machining cen- ters and punching machines imported from Japan.' The petition was based on Section 103 of the Revenue Act of 1971, which gives the Presi- dent authority to deny application of the investment tax credit on im- ported articles when the government of the exporting country "engages in discriminatory or other acts (including tolerance of international car- tels) or policies unjustifiably restricting United States commerce."'2 The petition alleged that the Government of Japan had for many years fos- tered a cartel among Japanese machine tool manufacturers, which had given them an unfair advantage in competing with American manufac- turers in the U.S.