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U.S. to Raise Duty on Japan Mobile Phones

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Associated Press

The U.S. International Trade Commission ruled 4 to 1 today that American businesses have been hurt by mobile telephones from Japan sold here at less than “fair value.”

Paula Stern, who chairs the commission, said imports from Japan had captured three-quarters of the American market.

Because of the finding, the U.S. government will impose a special “dumping duty” on the Japanese phones that will raise their price in this country to the price of comparable American mobile telephones.

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The only dissenter from the ruling was Susan Liebeler, vice chairman of the commission.

“Fair value” is generally considered to be the cost of production or sales price in the country exporting a product. Other elements are also taken into account in the calculation made by the Commerce Department, such as the sales price in third countries.

The duties are expected to range from about 3% to more than 100% of the units’ U.S. purchase price.

According to the commission, Japanese mobile telephones and sub-assemblies worth $88.1 million were sold in the United States in the first six months of this year. Sales of the corresponding U.S. products in this country were put at $40.2 million.

The complaint that charged the Japanese with dumping came from Motorola Inc., a leading U.S. electronics company.

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