ITC, in big blow to US laptop makers, tacks steep duties on Japanese screens
Article Abstract:
The International Trade Commission (ITC) has ruled that low Japanese pricing of active-matrix liquid crystal display (LCD) computer screens constitutes dumping, and the ITC will impose a 62.67 percent anti-dumping duty. The cost of a screen generally represents about 30 percent of the cost of a laptop computer. The ruling does not cover passive-matrix LCD screens which are currently the more widely used type of screen. Active-matrix screens are expected to become the standard type used in color portable computers. Ovonics Imaging Systems Inc is expected to reap the greatest benefit from the ruling since it is the only US manufacturer of active-matrix displays. IBM and Apple have vowed to move operations offshore if the duties are imposed. Analysts say that the ruling may hurt US manufacturers of laptops more than Japanese manufacturers of screens because the Japanese also make laptop computers and can move more deeply into the US market while US computer makers must deal with the higher screen costs.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Japan firms face charge of dumping high-tech screens
Article Abstract:
US manufacturers of electronic flat-panel display screens have filed an anti-dumping complaint against a number of Japanese competitors in a last gasp effort for the survival of the US industry. The complaint alleges that certain Japanese companies are selling advanced, electronic display screens in the US at far less than their production costs or home market prices. The Japanese companies could be subject to penalty duties ranging from 71 percent to 318 percent of their current US prices if the complaint is upheld. The Japanese companies are likely to base their defense on the principle of forward-pricing, which can justify some initial below-cost sales if the producers intend to recover costs over the product's life. The US Commerce Department requires that costs be recovered within a year.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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