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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A94-31632

## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** December 23, 1994

## Text

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.

-----------------------------------------------------------------------

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-31632. Public record. Not legal advice.