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Portable Electric Typewriters from Singapore

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Portable Electric Typewriters from Singapore Portable Electric Typewriters From Singapore Investigation No. 731-TA-515 (Final) Publication 2681 September 1993 U.S. International Trade Commission Washington, DC 20436 , U.S. International Trade Com1nission COMMISSIONERS ·Don· E. Newquist, Chairman Peter S. Watson, Vice Chairman David B. Rohr Anne E. Brunsdale Carol T. Crawford Janet A~ Nuzum · Robert· A. Rogowsky . · Director of Operations Staffassigned: Jim McCl~e. Investigator W. Scott Baker, Industry Analyst · Michael Anderson, Economist John Ascienzo, Accountant Rhond3 Hughes, Attorney Robert Eninger, Supervisory Inve8tigator J\ddress all communications to · Secretary to the Commission · United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 Portable Electric Typewriters From Singapore · Publication 2681 September 1993 CONTENTS Determination............ 1 Views of Commissioners Rohr and Nuzum................................... 3 Views of Commissioners Brunsdale and Crawford........................... 19 Dissenting views of Chairman Newquist................................... 41 Dissenting views of Vice-Chairman Watson................................ 57 Information obtained in the investigation............................... I-1 Introduction.......................................................... I-3 Background. I - 3 Instant investigation............................................... I-3 Previous and related investigations................................. I-5 Nature and extent of sales at LTFV........ .. ... .. .. I-7 The products.......... I-8 The manufacturing process. I -14 Design of the printed-circuit board ............................... I-14 Manufacture of parts and subassemblies ............................ I-14 Final assembly and testing........................................ I-15 U.S. tariff treatment. 1-15 Apparent U.S. consumption ............................................... l -15 PETs............................ I-16 PETs\PEWPs. 1-16 U.S. producers.................... 1-17 BIUSA............................................................... I-17 Smith Corona........................................................ I-17 Nakajima............................................................ 1-20 Canon............................................................... 1-20 U.S. importers........................................................ 1-20 Smith Corona. l - 20 Olivetti USA........................................................ I-21 AT&T................................................................ I-21 Other importers...... I-21 Channels of distribution.............. I-22 Consideration of material injury to an industry in the United States.. I-22 U.S. production, capacity, and capacity utilization ................. I-25 PETs............... I-25 PETs/PEWPs......... I-25 U.S. producers' shipments. I- 26 PETs..... I-26 PETs/PEWPs. I-26 U.S. producers' inventories. 1-26 PETs...... I-26 PETs/PEWPs........................... I-27 U.S. producers' employment and wages ................................ I-27 PETs................................ I-27 PETs/PEWPs........................................... I-28 Financial experience of U.S. producers .............................. 1-29 Overall establishment operations.................................. I-29 PET operations............ I-29 PEWP operations................................................... 1-30 Operations on PETs/PEWPs.......................................... 1-31 ii CONTENTS Information obtained in the investigation--Continued Consideration of material injury to an industry in the United States--Continued Investment in productive facilities and return on assets ......... I-32 Capital expenditures ............................................. I-32 Research and development expenses ................................ I-33 Capital and investment ........................................... I-33 Nature of U.S. production operations--Costs and Sources .......... I-33 Consideration of the question of threat of material injury ........... I-34 U.S. importers• inventories ........................................ I-35 Ability of foreign producers to generate exports and availability of export markets other than the United States ..... I-36 Consideration of the causal relationship between imports of the subject merchandise and the alleged material injury .......... I-37 Imports ............................................................ I-37 Market penetration by imports ...................................... I-38 Prices ............ ·................................................. I-39 Market characteristics ........................................... I-39 Purchaser information ............................................ I-41 Questionnaire price data ......................................... I-43 U.S. producers• and importers• prices .......................... I-44 National retail chains ....................................... I-44 Mass merchandisers ........................................... I-45 Department stores ............................................ I-45 Catalog stores ................................................ I-45 Electronic discount stores ................................... I-46 Office equipment dealers ..................................... I-46 Office superstores ........................................... I-47 Other purchasers ............................................. I-47 Purchaser price data ........................................... I-47 National retail chains ....................................... I-47 Kass merchandisers ........................................... I-48 Catalog stores ............................................... I-48 Electronic discount stores ................................... I-48 Other purchasers ............................................. 1-49 Exchange rates ..................................................... I-49 Lost sales ......................................................... I-51 Lost revenues ...................................................... I-51 Appendices A. Fecieral Re1ister notices.of the Commission and Commerce and Public Hearing witness lilst...................................... A-1 B. Summary tables on PETs, PEWPs, and PETs/PEWPs combined.............. B-1 C. Comments received from U.S. producers on the impact of imports of PETs from Singapore on their growth, investment, ability to raise capital, and development and production efforts.......... C-1 D. U.S. production operations--Costs and sources....................... D-1 E. Average unit value selling prices for U.S.-produced and Singaporean PETs. • . E-1 F. Smith Corona's price competition allegations........................ F-1 iii CONTENTS Tables 1. PETs and PEWPs: Selected features, by product, 1992 product lines ... I-10 2. PETs/PEWPs: U.S. shipments of domestic product, U.S.shipments of imports, and apparent U.S. consU11ption, by products, 1988-92 ...... I-16 3. PETs/PEWPs: U.S. producers• capacity, production, and capacity utilization, by products and by firms, 1988-92 ..................... I-25 4. PETs/PEWPs: U.S. producers' U.S. shipments, by products and by firms, 1988-92.................................................. I-26 5. PETs/PEWPs: End-of-period inventories held by U.S. producers, by products and by firms, 1988-92 .................................. I-27 6. Average number of production and related workers producing PETs/PEWPs, hours worked, wages and total compensation paid to such employees, and hourly wages, productivity and unit production costs, by products and by firms, 1988-92 ........... I-28 7. Income-and-loss experience of U.S. producers on the overall operations of their establishments wherein PETs and PEWPs are produced, fiscal years 1988-92 ...................................... I-29 8. Income-and-loss experience of U.S. producers on their PET operations fiscal years 1988-92 ................................................ I-30 9. Income-and-loss experience of U.S. producers on their PET operations by firms, fiscal years 1988-92 . I -30 10. Income-and-loss experience of U.S. producers on their PEWP operations, fiscal years 1988-92 ................................... I-31 11. Income-and-loss experience of U.S. producers on their PEWP operations, by firms, fiscal years 1988-92 ......................... I-31 12. Income-and-loss experience of U.S. producers on their combined PET/PEWP operations, fiscal years 1988-92 .......................... I-31 13. Income-and-loss experience of U.S. producers on their combined PET/PEWP operations, by firms, fiscal years 1988-92 ................ I-32 14. Value of assets and return on assets of U.S. producers' establishments wherein all PETs and PEWPs are produced, fiscal years 1988-92 ...................................................... I-32 15. Capital expenditures by U.S. producers of PETs/PEWPs, fiscal years 1988-92.............................................. I-32 16. Research and development expenses by U.S. producers of P~Ts/ PEWPs, by products, fiscal years 1988-92 ................. , ........ I-33 17. PETs/PEWPs: End-of-period inventories of U.S. importers, by products and by sources, 1988-92 ............................... I-36 18. PETs: Singapore's production, capacity, end-of-period inventories, home-market shipments, and exports to the United States and to all other countries, 1988-92 ........................ I-37 19. PETs/PEWPs: U.S. imports, by products and by sources, 1988-92 ...... I-38 20. PETs/PEWPs: U.S. producers•
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