Path: utzoo!attcan!uunet!seismo!sundc!pitstop!sun!coherent!dplatt
From: dplatt@coherent.com (Dave Platt)
Newsgroups: comp.sys.mac
Subject: Commerce dept. to levy duties on 3.5" floppies
Summary: Just thought you'd want to know...
Message-ID: <12166@coherent.com>
Date: 18 Oct 88 20:33:18 GMT
Distribution: comp
Organization: Coherent Thought Inc., Palo Alto CA
Lines: 38

This week's issue of MacWeek reports that the U.S. Commerce
Department's Import Administration has voted to impose duties on
Japanese-manufactured 3.5" microdisks, ruling that these disks and
their coated media "are being, or are likely to be, sold in the United
States at less than fair value."  The ruling was made in response to a
complaint filed in February by Verbatim, a subsidiary of Eastman
Kodak.

Importers of these disks will be required to post bond on these disks,
to cover import duties that may be imposed at a later date.  The
federal agency set preliminary "estimated dumping margins", which run
from 26.39% for Hitachi-Maxell disks to 44.84% for Sony disks.  Actual
duty rates will be set in December.

The effect of these duties on the retail price of 3.5" microdisks isn't
certain yet.  Large OEM customers may be looking at an increase of $.30
to $.40 per disk;  wholesale prices for these disks have been in the
$1/disk range lately.

Y'all might want to consider stocking up on diskettes before the price
increases work their way down to the retail level.  I bought 50 Sony
diskettes yesterday;  the sales-rep at ComputerWare said that they
purchased several months' worth of diskettes in anticipation of this
ruling, and will probably have to raise their prices when the current
stock is exhausted.

Of course, it's entirely possible that the U.S. manufacturers of 3.5"
microdisks (3M and Verbatim, and perhaps others?) will _not_ raise
their wholesale prices when the Japanese disk prices are increased, and
will seek to gain market-share rather than emphasizing short-term
profit.  Stranger things have happened.  Sometimes.   And, if you
believe that, I have a bridge you might be interested in buying!

-- 
Dave Platt                                             VOICE: (415) 493-8805
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