[Federal Register Volume 59, Number 246 (Friday, December 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31632]


[[Page Unknown]]

[Federal Register: December 23, 1994]


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DEPARTMENT OF COMMERCE
[A-580-803]

 

Certain Small Business Telephone Systems and Subassemblies 
Thereof From Korea; Preliminary Results of Antidumping Duty 
Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of Preliminary Results of Antidumping Duty 
Administrative Review.

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SUMMARY: In response to a request from an importer, TT Systems Corp. 
(TT Systems), the Department of Commerce (the Department) is conducting 
an administrative review of the antidumping duty order on certain small 
business telephone systems and subassemblies thereof (SBTS) from Korea. 
The review covers one manufacturer/exporter of this merchandise to the 
United States, SsangBangWool International, Inc. (SBW). The review 
period is February 1, 1993 through January 31, 1994.
    Based on our review of these exports, we preliminarily find dumping 
margins. If these preliminary results are adopted in our final results 
of administrative review, we will instruct U.S. Customs to assess 
antidumping duties equal to the difference between the United States 
price (USP) and the foreign market value (FMV).
    Interested parties are invited to comment on these preliminary 
results.

EFFECTIVE DATE: December 23, 1994.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Michael Rill, Office 
of Antidumping Compliance, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230, telephone: (202) 482-
3477 or 482-4023, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 17, 1994, the Department published in the Federal 
Register a notice of ``Opportunity to Request an Administrative 
Review'' (57 FR 3740) of this antidumping duty order for the period 
February 1, 1993, through January 31, 1994 (57 FR 3740). We received a 
timely request for review from TT Systems.
    On March 14, 1994, we published in the Federal Register a notice of 
initiation of this administrative review (59 FR 11768).

Scope of the Review

    Imports covered by this review are shipments of SBTS, currently 
classifiable under Harmonized Tariff Schedule item numbers 
8517.30.2000, 8517.30.2500, 8517.30.3000, 8517.10.0020, 8517.10.0040, 
8517.10.0050, 8517.10.0070, 8517.10.0080, 8517.90.1000, 8517.90.1500, 
8517.90.3000, 8518.30.1000, 8504.40.0004, 8504.40.0008, 8504.40.0010, 
8517.81.0010, 8517.81.0020, 8517.90.4000, and 8504.40.0015.
    Certain SBTS are telephone systems, whether complete or incomplete, 
assembled or unassembled, with intercom or internal calling capability 
and total non-blocking port capacities of between two and 256 ports, 
and discrete subassemblies designed for use in such systems. A 
subassembly is ``designed'' for use in a small business telephone 
system if it functions to its full capability only when operated as 
part of a small business telephone system. These subassemblies are 
defined as follows:
    (1) Telephone sets and consoles, consisting of proprietary, corded 
telephone sets or consoles. A console has the ability to perform 
certain functions including: Answer all lines in the system; monitor 
the status of other phone sets; and transfer calls. The term 
``telephone sets and consoles'' is defined to include any combination 
of two or more of the following items, when imported or shipped in the 
same container, with or without additional apparatus: housing; hand 
set; cord (line or hand set); power supply; telephone set circuit 
cards; console circuit cards.
    (2) Control and switching equipment, whether denominated as a key 
service unit, control unit, or cabinet/switch. ``Control and switching 
equipment'' is defined to include the units described in the preceding 
sentence which consist of one or more circuit cards or modules 
(including backplane circuit cards) and one or more of the following 
items, when imported or shipped in the same container as the circuit 
cards or modules, with or without additional apparatus: connectors to 
accept circuit cards or modules; building wiring.
    (3) Circuit cards and modules, including power supplies. These may 
be incorporated into control and switching equipment or telephone sets 
and consoles, or they may be imported or shipped separately. A power 
supply converts or divides input power of not more than 2400 watts into 
output power of not more than 1800 watts supplying DC power of 
approximately 5 volts, 24 volts, and 48 volts, as well as 90 volt AC 
ringing capability.
    The following merchandise has been excluded from this order: (1) 
Nonproprietary industry-standard (``tip/ring'') telephone sets and 
other subassemblies that are not specifically designed for use in a 
covered system, even though a system may be adapted to use such 
nonproprietary equipment to provide some system functions; (2) 
telephone answering machines or facsimile machines integrated with 
telephone sets; and (3) adjunct software used on external data 
processing equipment.

Such or Similar Comparisons

    Pursuant to section 771 (16) (C) of the Tariff Act of 1930 (the 
Tariff Act), we established four categories of such or similar 
merchandise consisting of: (a) Control and switching equipment; (b) 
circuit cards and modules; (c) telephones sets and consoles; and (d) 
complete small business telephone systems (systems). However, for all 
U.S. sales, there were contemporaneous home market sales of identical 
merchandise to use as the basis for FMV.

United States Price

    In calculating USP, because all sales were made directly to 
unrelated parties prior to importation in the United States, the 
Department used purchase price for all sales made by SBW, in accordance 
with section 772(b) of the Tariff Act. We made adjustments, where 
applicable, for Korean and U.S. brokerage and handling charges, Korean 
and U.S. inland freight, containerization expenses, wharfage expense, 
and U.S. duties in accordance with section 772(d) of the Tariff Act.
    When comparisons were made to home market sales to which a value-
added tax (VAT) was added or in which a VAT was included, we made an 
addition to USP for the VAT not collected or rebated on export in 
accordance with section 772(d)(1)(C) of the Tariff Act and our 
practice, as set forth in Silicomanganese from Venezuela; Preliminary 
Determination of Sales at Less Than Fair Value, 59 FR 31204 (June 17, 
1994) (Silicomanganese).

Foreign Market Value

    In order to determine whether there were sufficient sales of SBTS 
in the home market to serve as the basis for calculating FMV, we 
compared the volume of home market sales to the volume of third country 
sales for the relevant such or similar category, in accordance with 
section 773(a)(1) of the Tariff Act, and found that the home market was 
viable.
    In calculating FMV, the Department used packed, delivered prices to 
unrelated customers in the home market, in accordance with section 773 
of the Tariff Act. We deducted home market packing costs, inland 
freight and imputed credit costs from the FMV and added U.S. packing 
costs and U.S. credit. We also adjusted the amount of Korean VAT 
included in FMV in accordance with our decision in Silicomanganese.

Preliminary Results of Review

    As a result of this review, we preliminarily determine that the 
following margin exists for the period February 1, 1993 through January 
31, 1994:

------------------------------------------------------------------------
                                                                 Margin 
                    Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
SsangBangWool International, Inc. (SBW)......................       2.86
------------------------------------------------------------------------

    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. Individual 
differences between USP and FMV may vary from the percentage stated 
above. Upon completion of this review, the Department will issue 
appraisement instructions concerning the respondent directly to the 
Customs Service.
    Furthermore, the following deposit requirements will be effective 
for all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided for by section 
751(a)(1) of the Tariff Act: (1) The cash deposit rate for the reviewed 
firm will be that firm's rate established in the final results of this 
administrative review; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recent period; (3) if 
the exporter is not a firm covered in this review, a prior review, or 
the original less-than-fair-value (LTFV) investigation, but the 
manufacturer is, the cash deposit rate will be the rate established for 
the most recent period for the manufacturer of the merchandise; and (4) 
if neither the exporter nor the manufacturer is a firm covered in this 
or any previous review conducted by the Department, the cash deposit 
rate will be 13.90%, the all other rate established in the LTFV 
investigation.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.
    Interested parties may request disclosure within five days of the 
date of publication of this notice and may request a hearing within 10 
days of the date of publication. A hearing, if requested, will be held 
as early as convenient for the parties but not later than 44 days after 
the date of publication or the first workday thereafter. Case briefs or 
other written comments from interested parties may be submitted not 
later than 30 days after the date of publication of this notice. 
Rebuttal briefs and rebuttal comments, limited to issues raised in the 
case briefs, may be filed not later than 37 days after the date of 
publication. The Department will publish the final results of this 
administrative review, including the results of its analysis of issues 
raised in any such written comments.
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 353.26 to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 
353.22.

    Dated: December 16, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-31632 Filed 12-22-94; 8:45 am]
BILLING CODE 3510-DS-P