[Federal Register Volume 62, Number 190 (Wednesday, October 1, 1997)]
[Notices]
[Pages 51487-51488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26022]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-383]


Certain Hardware Logic Emulation Systems and Components Thereof; 
Notice of Commission Determination Granting Complainant's Petition to 
Modify the Amount of Respondents' Temporary Relief Bond

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Commission has determined to 
grant complainant's petition to modify respondents' temporary relief 
bond in the above-captioned investigation. Respondents' temporary 
relief bond for all entries made since issuance of temporary relief in 
this investigation remains at 43 percent of the entered value of the 
subject imported articles if entered value equals transaction value as 
defined in applicable U.S. Customs Service regulations. Respondents' 
temporary relief bond for all entries made since issuance of temporary 
relief in this investigation is increased to 180 percent of the entered 
value of the subject imported articles if entered value does not equal 
transaction value as defined in applicable U.S. Customs Service 
regulations.

FOR FURTHER INFORMATION CONTACT: Jay H. Reiziss, Esq., Office of the 
General Counsel, U.S. International Trade Commission, telephone 202-
205-3116.

SUPPLEMENTARY INFORMATION: This investigation and temporary relief 
proceedings were instituted on March 8, 1996, based upon a complaint 
and motion for temporary relief filed on January 26, 1996, by Quickturn 
Design Systems, Inc. (``Quickturn''). 61 Fed. Reg. 9486 (March 8, 
1996). The respondents are Mentor Graphics Corporation of Wilsonville, 
Oregon (``Mentor'') and Meta Systems of Saclay, France (``Meta'') 
(collectively ``respondents''). The products at issue are hardware 
logic emulation systems that are used in the semiconductor 
manufacturing industry to test

[[Page 51488]]

electronic circuit designs for semiconductor devices.
    After an eleven-day evidentiary hearing, the presiding 
administrative law judge (``ALJ'') issued an initial determination 
granting Quickturn's motion for temporary relief and a recommended 
determination (``TEO RD'') regarding the appropriate remedy and bonding 
during the pendency of the permanent relief phase of the investigation. 
In his TEO RD, the ALJ recommended to the Commission that respondents' 
temporary relief bond (``TEO bond'') be determined based on the erosion 
in sales price that Quickturn was likely to suffer as a result of 
importations during the investigation. The Commission determined that 
the appropriate respondents' TEO bond should protect Quickturn against 
both sales price erosion and other losses of gross revenues that would 
reduce its research and development budget. Commission TEO Opinion at 
19-21. The Commission imposed a bond of 43 percent of entered value on 
respondents' emulation systems, of which 25 percent was to compensate 
Quickturn for price erosion and 18 percent was to compensate for lost 
gross revenues that would otherwise be used for research and 
development. Commission TEO Opinion at 19-21.
    On June 9, 1997, Quickturn petitioned the Commission pursuant to 
rule 210.76 for an increase in respondents' TEO bond rate from 43 
percent of entered value of the subject emulation systems to 180 
percent of entered value in view of the entered values that respondents 
have declared to the U.S. Customs Service. Quickturn argued that 
evidence gathered in the permanent relief phase of the investigation 
revealed that the TEO bond rate established in the temporary relief 
phase (43 percent of entered value) is inadequate to protect Quickturn 
from injury, as required by section 337. On June 19, 1997, respondents 
and the Commission investigative attorneys (``IAs'') filed responses to 
that petition. The IAs supported the petition and respondents opposed 
it.
    On July 22, 1997, the Commission determined to rule on Quickturn's 
petition to modify the TEO bond rate after receiving the ALJ's 
recommended determination on remedy and bonding in the permanent phase 
of the investigation. On August 1, 1997, the ALJ issued his recommended 
determination.
    A Commission opinion in support of its determination will be issued 
shortly.
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930, 19 U.S.C. Sec. 1337, and Commission rule 210.76, 19 
CFR Sec. 210.76.
    Copies of all nonconfidential documents filed in connection with 
this investigation are, or will be, available for inspection during 
official business hours (8:45 a.m. to 5:15 p.m.) in the Office of the 
Secretary, U.S. International Trade Commission, 500 E Street SW., 
Washington, D.C. 20436, telephone 202-205-2000. Hearing-impaired 
persons are advised that information on this matter can be obtained by 
contacting the Commission's TDD terminal on 202-205-1810.

    Issued: September 24, 1997.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-26022 Filed 9-30-97; 8:45 am]
BILLING CODE 7020-02-P