activities such as the compilation of directories and the publishing It is estimated that the domestic industry totaled 3,000 establishments with over 75,000 employees in 1968. According to Bureau of Census data for year 1963 (the latest available year with detailed information), there were 2,630 periodical printing and publishing establishments in the industry. About 85 percent of these establishments employed fewer than 20 persons. Most publishing is done by less than a dozen large firms located primarily in New York, Philadelphia, and Chicago. Nearly 60 percent of the total value of periodical industry shipments in 1963 was derived from firms located in New York State. Bureau of Census data on the periodical publishing activities of nonprofit organizations (religious, educational, social, charitable, etc.) have been included to the extent where employees of such organizations were covered under the Social Security System. U.S. production Domestic production of the periodicals considered herein increased each year during 1964-68, with total product receipts reaching an estimated $3.1 billion in 1968. Bureau of the Census data indicate that in 1968 advertising recepits, a substantial portion of which came from national advertisers, accounted for about two-thirds of total revenue of periodical publishing, and receipts from circulation accounted for the remainder. For each type of periodical, the shares of advertising receipts of total revenue varies considerably, as follows: Farm journals, 87 percent; business publications, 77 percent; and consumer magazines, 58 percent. The fastest growing segment of the periodical industry is business magazines. Over 3,000 U.S. publications of national and international business interests are currently being produced by some 300 domestic publishers. U.S. exports The value of U.S. exports of periodicals increased from about $54 million in 1964 to $78 million in 1968; total U.S. export sales during this period, however, ranged from only 2.5 to 3.1 percent of U.S. periodical publishers' receipts. May 1969 Exports of periodicals, which exceeded imports almost fourteenfold in 1968, go to over 100 countries; Canada is the principal export market, accounting for some 60 percent of total U.S. export sales (table 2). The United Kingdom, Mexico, and Australia each purchased at least $2 million of U.S. periodicals during 1964-68; Venezuela accounted for $1 to $2 million of U.S. exports during this period. U.S. interest in the international periodical market is quite sizable, with several large U.S. publishers having production and other subsidiary arrangements abroad. In 1968, U.S. publishers directed about 125 periodicals specifically to overseas markets; such editions are usually produced outside the United States. U.S. imports The value of U.S. imports of periodicals decreased from $4.5 million in 1964 to $3.4 million in 1966, then rose to $5.7 million in 1968 (table 3). Such imports, however, represent only a fraction of 1 percent of total U.S. circulation or apparent consumption. During recent years the ranking foreign suppliers of periodicals were Canada, the United Kingdom, France, Japan, Italy, and West Germany. In 1968, Mexico (heretofore an insignificant supplier) was the principal source of imports, amounting in value to $1.6 million. Table 1.--Periodicals: U.S. production, imports for consumption, exports of domestic merchandise, and apparent consumption, 1964-68 1 Publishers' receipts of primary products. 2/ Not strictly comparable with years 1965-68, due to classification changes. 3/ Estimated. Not strictly comparable with years 1964-66, due to classification changes. Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted. May 1969 Table 2.--Periodicals: U.S. exports of domestic merchandise, by principal markets, 1964-68 (In thousands of dollars) 25 1/ Not strictly comparable with years 1965-68 due to classification changes. Source: Compiled from official statistics of the U.S. Department of Commerce. Note.--Because of rounding, figures may not add to the totals shown. May 1969 1 PERIODICALS Table 3.--Periodicals: U.S. imports for consumption, by principal sources, 1964-68 Source: Compiled from official statistics of the U.S. Department of Commerce. Note.--Because of rounding, figures may not add to the totals shown. May 1969 TSUS Commodity Tourist literature---. item 270.70 Note.--For the statutory description, see the Tariff Schedules of the United States Annotated (TSUSA-1969). U.S. trade position Domestic consumption of tourist literature concerning foreign places, travel, and facilities is supplied almost entirely by imports, which averaged $2.6 million annually during 1967-68. U.S. exports of such literature, if any, are negligible. Comment The printed matter herein considered consists of tourist and other literature, containing geographic, historical, hotel, institutional, timetable, travel, or similar information that features places, travel facilities, or educational opportunities outside the customs territory of the United States. This literature (which may be of any language and printed by any process) is in such forms as books, magazines, brochures, folders, and leaflets; also included are such items as posters, schedules, photographs, coupons, and maps, providing they include, as an essential feature, a supplementary written text or message. The bulk of this type of literature is distributed free by travel agencies to tourists, travelers, or other persons interested in scheduling or planning travel abroad. Some literature, however, especially books and magazines, is intended solely for commercial outlets through subscriptions and over-the-counter sales. Tourist literature is free of duty under item 270.70 of the TSUS. This provision was amended, as of February 1, 1967, by Public Law 89-651 and Presidential Proclamation 3754, which implemented the United Nations' Agreement on the Importation of Educational, Scientific, and Cultural Materials (commonly referred to as the Florence Agreement). The duty-free status for item 270.70 was bound as a concession under the General Agreement on Tariffs and Trade (GATT) in the sixth (Kennedy) round of negotiations. The Florence Agreement, which is designed to promote freer exchange of ideas and knowledge across national boundaries, makes provision under item 270.70 for the free importation of information concerning foreign institutions and educational opportunities. May 1969 |