amount of products processed in the United States from domestic milk. As mentioned earlier, the President on June 10, 1968, requested the Commission to make an investigation under section 22 of the Agricultural Adjustment Act, as amended, with respect to the articles listed on pages 1 and 2 herein. In conjunction with this request, the President proclaimed emergency quotas under section 22(b) on condensed or evaporated milk and cream; 1/ subsequently, on September 24, 1968, he proclaimed emergency quotas on "process" Edam and Gouda cheeses and certain Swiss or Emmenthaler, Gruyere-process, and certain "other" cheeses. 2 The emergency actions will continue in effect pending the Commission's report in the current investigation and Presidential action thereon. By virtue of these emergency proclamations and by virtue of previous Presidential proclamations, concerning "aged" Cheddar cheese and certain butterfat-sugar mixtures, most of the imports (in terms of milk equivalent) of the products that are the subject of the current investigation have been placed under section 22 quota restrictions for the time being, although Swiss or Emmenthaler cheeses, Gruyere-process cheese, and "other" cheeses priced for export to the United States at 47 cents or more per pound, as provided for in Presidential Proclamation No. 3870 (see appendix A), are quota-free. In terms of milk equivalent, the articles subject to this investigation (excluding butterfat-sugar mixtures provided for in item 182.92 1/ Presidential Proclamation No. 3856. 2/ Presidential Proclamation No. 3870. and "aged" Cheddar cheese, which were already under quota before the institution of the present investigation) accounted for nearly 20 percent of the total U.S. imports of dairy products in 1967. In the period July-December 1967 they accounted for nearly 40 percent of total U.S. imports of dairy products and in January-September 1968 they accounted for about 70 percent. Of the articles subject to this investigation (exclusive of butterfat-sugar mixtures provided for in item 182.92 and "aged" Cheddar cheese), Swiss and Emmenthaler cheese with eye formation and Gruyere-process cheese accounted for 51 percent of the imports in January-September 1968; imports under the provisions for certain "other" cheeses (items 117.75 (pt.) and 117.85) accounted for 27 percent of the total; and imports of process Edam and Gouda cheese accounted for 10 percent of the total. The remainder consisted of condensed and evaporated milk and cream, Italian-type cheese not in original loaves, chocolate products, and certain edible preparations. The following tabulation shows pertinent information on U.S. production, imports, exports, and import restrictions under section 22 with respect to the articles under consideration in this investigation. 1967 8 : 1967 1968 : : : pounds : Million: Million: Million: Million: Million : : pounds : pounds : pounds : pounds 1965 : : : 64.4: : .4 : : : : N.A. : : : .6: 38.4 : 95.9 : 128.6: 1.3: 2.1: 65.3 : .92.9 : : : : 2.1 : : 1966 : : 8 76.0 : .1: : : 1.3: 33.8 : 83 : : 1,242.2: 1,263.6: 1,304.1 : 9.2 : 18.1: 22.9: 2.7 : 2.9: 3.0 : 8 8 : Evaporated-------1,312,000 lbs. :The quota is based on the 1967 volume of imports. Other :None : : : 8 Condensed--------4,074,000 lbs. :The quota is based on the 1967 volume of imports. --------5,000 lbs. The quota is based on the 1967 volume of imports. Cheeses and substitutes for - cheese provided for in items 117.75 and 117.85 (except cheese not containing cows' milk, whey cheese, and except articles falling within the scope of other import quotas); if shipped otherwise than in pursuance to a purchase, or if having a purchase price under 47 cents per pound : :The allocation of the present quota on "aged" U.S. 8 : production of aged Cheddar cheese is estimated to have averaged about 100 million pounds : : Cheese and substitutes for cheese : : --3,151,000 lbs. : Remarks :Annual emergency quota established :The quota is based on the 1967 volume of imports. : on September 24, 1968, (TSUS item 950.10C): :Process Edam and Gouda cheeses are not produced : : 1964-67. Quota based on 1965-67 import volume. : original loaves; virtually all such loaves are : : cut into pieces or grated before being sold at 8 8 --17,501,000 lbs. : 1967 1967 1968 : Million: Million: Million: Million: Million: Cocoa, sweetened----: coatings----------; 8 : for, containing over 8 8 5.5 percent by weight : : of butterfat: .: 8 : 8 8 8 0: Chocolate crumb-: 1965 1966 : 8 8 Jan.-Sept. : : N.A. : 34.9: : : 8 M.A.: M.A. : 16.8: : :Annual emergency quotas established :The quotas are based on the 1967 volume of imports. items 950.10A and 950.108): : Swiss or Ementhaler cheese with : 8 : :None 8 8 : 8 eye formation; Gruyere-proc- Swiss or Ementhaler cheese 8 .8 : 8 .9 None 8 : --4,271,000 lbs. : Other than Swiss or Ementhaler : with eye formation : :Data shown for production of Gruyere-process 8 cheese do not include process Swiss cheese; : in recent years about half of the domestic : output of Swiss cheese has been processed. --3,289,000 lbs. : :Data are not available on the domestic production of chocolate products which contain over : : 5.5 percent of butterfat; it is known, however, 10 that most of the chocolate articles produced : in the United States contain less than 5.5 : : :The imported article in item 7 of the President's request with which the investigation is principally concerned is chocolate cruzb (TSUS : : item 156.30 (pt.)); the other items were included to preclude any "quota avoidance" of 2 : possible quotas on chocolate crumb. : :Annual quotas: Certain articles containing more than 45 percent of butterfat (TSUS Item 950.12)---------Zero : Certain articles containing over : 5.5 percent but not over 45 :The embargo on products containing more than 45 percent by weight of butterfat (TSUS item 950.13) percent butterfat became effective in August 1957; the quota on products containing over 5.5 percent butterfat became effective July 1, 1967 and was based on the volume of imports in 1961-65. With the exception of process Edam and Gouda cheese, Gruyereprocess cheese, and butterfat-sugar mixtures, imports have supplied a small share of domestic consumption of the articles under investigation. In the United States, natural Edam and Gouda cheeses are produced, but not further processed; Gruyere-process cheese is produced in small quantities, and butterfat-sugar mixtures, as such, are not produced at all. |
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