U.S. Moves to Impose Duties on NEC, Fujitsu

WASHINGTON —  The U.S. Commerce Department on Thursday said two Japanese companies--NEC Corp. and Fujitsu Ltd.--were dumping supercomputers in the U.S. market, and it was moving closer to imposing hefty duties on the imports.

The duties go into effect if the International Trade Commission finds that U.S. industry is being hurt by the dumping or if products are selling at less than fair value. A commission decision is expected within 45 days. Last September, the ITC made a preliminary finding of injury.

In its final ruling on the case, brought by Silicon Graphics Co.’s Cray Research division, the department set anti-dumping duties of 454% against NEC and 173.08% against Fujitsu.

The Commerce Department issued its final ruling after the Court of International Trade ruled late Wednesday that the anti-dumping proceeding was being conducted in compliance with the rules and procedures of U.S. anti-dumping laws.

NEC had filed a lawsuit in federal court in New York charging that the department was conducting an unfair and biased proceeding. It sought appointment of an independent official to conduct the investigation.

NEC officials in Japan said the trade court action may cause the company to review its supercomputer strategy for the U.S.

Silicon Graphics officials said they were pleased by the decisions.

“The findings announced today by the U.S. Department of Commerce confirm what we contended in the anti-dumping complaint we filed in July 1996,” said John Sullivan, general counsel for Silicon Graphics. “We are pleased to have been vindicated by the Commerce Department’s decision. Dumping is not an acceptable way of doing business in the U.S. market, nor in any other market.”

A Commerce Department spokesman said the duties were set so high because NEC refused to participate in the investigation and Fujitsu pulled out after a preliminary ruling in favor of Cray earlier this year.

Shares in Silicon Graphics rose 31 cents to close at $27.38 on the New York Stock Exchange. NEC shares fell $1.25 American depositary receipts to $66.88, and Fujitsu shares fell $1 ADRs to $69.