U.S. to Levy 'Dumping' Duties on Phones : Trade: The decision means duties of more than 100% will be charged on some small-business phone systems imported from Japan and Taiwan. The result may be higher customer prices or fewer imports or both.

U.S. to Levy ‘Dumping’ Duties on Phones : Trade: The decision means duties of more than 100% will be charged on some small-business phone systems imported from Japan and Taiwan. The result may be higher customer prices or fewer imports or both.

L.A. Times Archives

Nov. 21, 1989 12 AM PT

From Associated Press

WASHINGTON —

The U.S. International Trade Commission in a split decision ruled Monday that small business telephone systems imported from Japan and Taiwan cause harm to American Telephone & Telegraph Co. and smaller domestic U.S. manufacturers.

The decision opened the way for U.S. Customs starting next month to start collecting “dumping” duties of more than 100% from importers of one Taiwan maker and several Japanese makers.

That is expected to result in either higher U.S. customer prices or fewer imports, or a combination of both.

The six-member commission voted 3-3 on an anti-dumping petition filed by two U.S. makers, AT&T; and Comdial Corp. of Charlottesville, Va. The tie vote means acceptance of their claims.

The Commerce Department, which earlier ruled that office phone systems with from two to 256 lines were being “dumped” in this country, will instruct U.S. Customs in the first part of December to start depositing higher duties, officials said.

The decision in a similar case involving imported South Korean telephone equipment was postponed for 60 days at the request of the Korean manufacturers, they reported.

The “dumping margin” on Japanese imports, to be reflected in higher duties, was fixed by Commerce at 179% for products of Matsushita Electric, 137% for those of Toshiba Electric and 158% for all others.

The margin on Nitsukoi products from Taiwan was set for 130%, while the Commerce Department found no “dumping margin” for other Taiwanese brands.

U.S. small business telephone systems are made mostly in the states of Louisiana, Texas, Virginia, Mississippi and Colorado, the ITC said.

AT&T; welcomed the commission decision, declaring in a statement that “we are confident that all U.S. manufacturers can be very successful in this market once unlawful pricing ends.”

It added that the decision will enable AT&T; to “continue to be able to bring its innovative strength to this marketplace and bring new, even more innovative solutions to small business customer needs.”