1530(e), by similitude to leather slippers for housewear, at 10 percent ad valorem (a trade-agreement rate).

In the TSUS, which became effective on August 31, 1963, the wide range of rates previously applicable to the types of footwear provided for an item 700.55 was replaced by a rate of 12.5 percent ad valorem in column 1, which (as indicated earlier) is, under authority of the TCA, a trade-agreement rate. The corresponding column-2 rate, which represents the July 1, 1934, rate (i.e., the pre-trade-agreement) 1/ is 35 percent ad valorem. Currently the column-1 rate for item 700.55 is 8.5 percent ad valorem, reflecting the third stage of a Kennedy Round concession, which is becoming effective in five annual stages. The first stage of this concession (11 percent) became effective on January 1, 1968, and the final stage (6 percent) will become effective on January 1, 1972.

A tabular summary of the foregoing discussion of the U.S. tariff treatment, under the Tariff Act of 1930, of protective footwear (now TSUS items 700.51, 700.52, and 700.53), canvas footwear (item 700.60), and the other types of footwear mentioned in the petitions to which this investigation is responsive (items 700.35, 700.43, 700.45, and 700.55)

is presented in table 1.

U.S. Consumption

Protective footwear

Official data are not available on U.S. consumption of protective footwear of rubber or plastics. Moreover, the available data relating to domestic producers' shipments and to U.S. imports are not strictly comparable. Even if comparable data on domestic shipments and imports were available, apparent consumption computed from aggregates relating to such a wide range of products as firemen's boots, hip boots, and chest waders for hunting and fishing, various types of footwear for special industrial uses, rainwear, snow boots, and fashion boots have limited significance, particularly when the product mix has changed significantly during the period under review.

As indicated below in the sections on U.S. production and imports, about 50 percent of domestic producers' shipments of waterproof footwear consisted in 1968 of protective footwear made of PVC (compared with 20 to 25 percent in 1964), whereas only 3 percent of the imports were of such footwear in 1969. How much of the domestic producers' shipments has consisted of waterproof footwear of types not included in the imports admitted under TSUS items 700.51 to 700.53 is not known. Annual shipments of such footwear with waterproof fabric uppers, which totaled some 3 to 4 million pairs during the 1930's, have probably declined to less than a million pairs in recent years. Imports of footwear with waterproof fabric uppers are believed to have been negligible in recent years.

consumption of protective footwear ranged from 41 to 51 million pairs

in 1964-69, as shown in the following tabulation (in millions of pairs):

1/ Estimated; see section on production.

/Shipments plus imports. In 1969, U.S. exports of protective footwear of rubber amounted to an estimated 60,000 pairs.

Canvas footwear

Apparent U.S. consumption of canvas footwear increased from about 120 million pairs in 1960 to 201 million pairs in 1965. Trade sources reported that a number of factors in addition to the rise in population caused the sales boom of canvas shoes in this period--the "economy' of such shoes, their washable qualities, and the rising need for shoes designed for sports and leisure-time activities. Since 1965, however, there has been a noticeable shift, especially among teenagers and women, from canvas footwear to thong and strap sandals and to various styles of nonrubber footwear for street wear and some leisure activities. 1/

1 In connection with this shift in the retail trade, it may be noted that the sales of the footwear divisions of both Uniroyal, Inc. and B.F. Goodrich Co. include, in addition to canvas footwear, sandals

11

Accordingly, apparent consumption of canvas footwear despite the rise

in population, declined to 171 million pairs in 1969 as shown in the

Data reported by the Census Bureau (SIC Code No. 3021); does not include production in Puerto Rico.

2/ Estimated by the Tariff Commission.

3/ Production plus imports plus shipments from Puerto Rico of footwear produced there. U.S. exports of canvas shoes amounted to about 300,000 pairs in 1968.

4/Preliminary estimate.

U.S. Producers

In the United States the facilities for producing protective footwear of rubber have long been commonly associated with the facilities for producing rubber-soled footwear with fabric uppers. In the Census of Manufactures, for example, the so-called rubber-footwear industry includes the establishments that are "primarily engaged in manufacturing all-rubber footwear, waterproof fabric-upper footwear, and other fabricupper footwear having rubber soles vulcanized to the uppers". 1/ According to the 1967 Census of Manufactures, there were 64 establishments in this industry in 1967 (not including those in Puerto Rico),

Definition of industry No. 3021 in the Standard Industrial

compared with 53 in 1963. These establishments had a total employment of 29,500 persons in 1967, of which 26,000 were production workers. The corresponding employment figures for 1963 were 29,100 and 26,000, In 1967, 54 establishments employed 20 persons or more. About 70 percent of the production workers were employed in plants situated in northeastern States.

respectively.

It is believed that in 1967 protective footwear was produced in about 15 of the establishments, and canvas footwear in about 50 of them. About a third of the rubber footwear establishments produced a wide range of products of rubber and plastics; they were located principally in New England.

Not included in the above figures are the "rubber footwear" establishments in Puerto Rico, which are owned principally by large U.S. rubber companies. In 1967, the latest year for which official data are available, six firms owned 14 plants in Puerto Rico in which canvas footwear was produced. It is believed that protective footwear (or parts thereof) is produced in only a few Puerto Rican plants. About 90 percent of the Puerto Rican output (nearly all canvas footwear)