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

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