Japan Ruled to Be ‘Dumping’ Cellular Phones

Japanese electronics firms, which account for more than half of the U.S. market for cellular mobile telephones, have been “dumping” surplus phones and phone parts in the United States for as little as half of their price in Japanese markets, the Commerce Department ruled Friday.

The issue now goes to the U.S. International Trade Commission, which will decide whether American cellular phone makers have been injured by the cut-rate sales and whether tariffs or other steps are needed to remedy the damage.

The Commerce Department decision upholds an unfair competition charge by Schaumburg, Ill.-based Motorola, the leading U.S. maker of the new car telephones and a frequent critic of Japanese trade policies in telecommunications.

$150 Million in Imports

The department required Japanese firms to post cash or bonds roughly equaling the differences between their discount U.S. sales and their Japanese value until the extent of injury is determined.

Last year, cellular phone imports totaled $150 million, the department said.