Legal Definitions - International Trade Commission

The International Trade Commission (ITC) is an independent agency of the United States government responsible for investigating and making determinations on trade-related issues. Its primary role is to assess whether American industries are being harmed by imports and to enforce certain trade laws, particularly those related to unfair trade practices or intellectual property infringement by imported products. The ITC provides expert analysis and recommendations to the President and Congress on trade policy and potential remedies.

Here are some examples of how the International Trade Commission operates:

• Scenario: Protecting Domestic Manufacturers from Unfair Pricing

  A major American manufacturer of specialized industrial valves files a complaint with the ITC, alleging that similar valves imported from a particular foreign country are being "dumped" into the U.S. market. "Dumping" means these imported valves are sold at prices significantly below their production cost or their price in their home market, making it impossible for the U.S. company to compete fairly. The ITC would then launch an investigation to determine if dumping is indeed occurring and if it is causing material injury to the domestic industry. If both are found to be true, the ITC could recommend that the U.S. government impose anti-dumping duties (a special type of tariff) on those imported valves to level the playing field.

• Scenario: Enforcing Intellectual Property Rights at the Border

  A U.S.-based pharmaceutical company discovers that generic versions of its patented drug are being manufactured abroad and imported into the United States without permission. The company files a complaint with the ITC, requesting an investigation into the alleged patent infringement by these imported products. The ITC has the authority to investigate such claims under Section 337 of the Tariff Act of 1930. If the ITC finds that the imported drugs do indeed infringe on the U.S. company's patent, it can issue an exclusion order, which would prevent those infringing products from entering the U.S. market.

• Scenario: Assessing the Impact of Increased Imports

  Following a global economic shift, there is a sudden and significant increase in the import of certain types of agricultural produce, such as fresh berries, into the United States. Domestic berry farmers and their industry associations express concern that this surge in imports, even if not unfairly traded, is causing serious injury to their businesses, threatening their livelihoods and the stability of the domestic supply. The President or Congress might request the ITC to conduct a "safeguard" investigation. The ITC would then analyze data on production, sales, prices, and employment to determine if the increased imports are indeed a substantial cause of serious injury or threat of serious injury to the U.S. domestic industry. Based on its findings, the ITC could recommend temporary relief measures, such as tariffs or quotas, to allow the domestic industry time to adjust.