PART 202—INVESTIGATIONS OF COSTS OF PRODUCTION Authority: Sec. 335, 72 Stat. 680; 19 U.S.C. 1335. Source: 27 FR 12120, Dec. 7, 1962, unless otherwise noted. § 202.1 Applicability of part. This part 202 applies specifically to investigations under section 366 of the Tariff Act (19 U.S.C. 1336). 1 1 § 202.2 Applications. (a) Who may file. (b) Requirements for applications. (1) A clear statement that they are requests for investigations for the purposes of section 336; (2) The name or description of the article concerning which an investigation is sought; (3) A reference to the tariff provision or provisions applicable to such article; and (4) A statement indicating whether an increase or a decrease in the rate of duty is sought. (c) Supporting information. (1) Comparability of the domestic and foreign articles and the degree of competition between them. (2) Trend in recent years of (i) domestic production, (ii) domestic sales, (iii) imports, (iv) costs of production, and (v) prices. (3) Evidence of difference between domestic and foreign costs of production of the articles involved. (4) Areas of greatest competition between the imported and domestic products and the principal market or markets in the United States. (5) Other relevant factors that constitute, in the opinion of the applicant, an advantage or disadvantage in competition, and any other information which the applicant believes the Commission should consider. § 202.3 Preliminary inquiry. Upon the receipt of an application properly filed, the Commission will make a preliminary inquiry for the purpose of determining whether there is good and sufficient reason for a full investigation. If such determination is in the affirmative, a full investigation will be instituted. § 202.4 Public hearing. A public hearing will be held in connection with each full investigation to which this part 202 relates. § 202.5 Type of information to be developed at hearing. Without excluding other factors, but with a view to assisting parties interested to present information necessary for the formulation of findings required by the statute, the Commission will expect attention in the hearing to be concentrated upon facts relating to: (a) The degree of competition between the foreign and domestic articles in the markets of the United States. (b) The degree of likeness or similarity between grades, classes, and price groups of the American product and the imported article. (c) Costs of production and importation. Statements of average cost of production, domestic and, so far as known, foreign, may be submitted subject to verification and review in the Commission's investigation. Such statements should include not only the direct costs for materials and labor, commonly termed prime cost, but also indirect costs such as indirect labor, overhead factory expenses, fixed charges, the portion of general and administrative expense chargeable to manufacture, imputed interest on investment equity, and transportation to markets. For the foreign product the expenses (other than duties) incident to importation are also important. Any information which may be available bearing on the general levels of domestic and foreign costs of production, the differentials between particular elements of domestic and foreign costs, and the extent to which invoice or wholesale prices are reliable evidence of foreign costs, will be pertinent. (d) Other significant advantages or disadvantages in competition. § 202.6 Reports. After the completion of its investigation, the Commission will incorporate its findings in a report, and the report will be transmitted to the President.