FROM 10Q: In February 1997, Micron Technology, Inc. filed an antidumping petition with the
United States International Trade Commission ("ITC") and United States
Department of Commerce ("DOC"), alleging that static random access memories
("SRAMs") fabricated in Taiwan were being sold in the United States at less than
fair value, and that the United States industry producing SRAMs was materially
injured or threatened with material injury by reason of imports of SRAMs
fabricated in Taiwan. After a final affirmative DOC determination of dumping and
a final affirmative ITC determination of injury, DOC issued an antidumping duty
order in April 1998. Under that order, the Company's imports into the United
States on or after approximately April 16,1998 of SRAMs fabricated in Taiwan are
subject to a cash deposit in the amount of 50.15% (the "Antidumping Margin") of
the entered value of such SRAMs. (The Company posted a bond in the amount of
59.06% (the preliminary margin) with respect to its importation, between
approximately October 1997 and April 1998, of SRAMs fabricated in Taiwan.) In
May 1998, the Company and others filed an appeal in the United States Court of
International Trade (the "CIT"), challenging the determination by the ITC that
imports of Taiwan-fabricated SRAMs were causing material injury to the U.S.
industry. On June 30, 1999 the CIT issued a decision remanding the ITC's
affirmative material injury determination to the ITC for reconsideration. The
ITC's remand determination reaffirmed its original determination and is
currently being considered by the CIT. The decision of the CIT can be further
appealed to the Court of Appeals for the Federal Circuit. The Company cannot
predict either the timing or the eventual results of the appeal. Until a final
judgment is entered in the appeal, no final duties will be assessed on the
Company's entries of SRAMs from Taiwan covered by the DOC antidumping duty
order. If the appeal is successful, the antidumping order will be terminated and
cash deposits will be refunded with interest. If the appeal is unsuccessful, the
Company's entries of Taiwan-fabricated SRAMs from October 1, 1997 through March
31, 1999 will be liquidated at the deposit rate in effect at the time of entry.
On subsequent entries of Taiwan-fabricated SRAMs, the Company will continue to
make cash deposits in the amount of 50.15% of the entered value. In April 2000,
the Company will have an opportunity to request a review of its sales of
Taiwan-fabricated SRAMs from April 1, 1999 through March 31, 2000 (the "Review
Period"). If it does so, the amount of antidumping duties, if any, owed on
imports from April 1999 through March 2000 will remain undetermined until the
conclusion of the review in early 2001. If the DOC found, based upon analysis of
the Company's sales during the Review Period, that antidumping duties either
should not be imposed or should be imposed at a lower rate than the Antidumping
Margin, the difference between the cash deposits made by the Company, and the
deposits that would have been made had the lower rate (or no rate, as the case
may be) been in effect, would be returned to the Company, plus interest. If, on
the other hand, the DOC found that higher margins were appropriate, the Company
would have to pay difference between the cash deposits paid by the Company and
the deposits that would have been made had the higher rate been in effect. A
material portion of the SRAMs designed and sold by the Company are fabricated in
Taiwan, and the cash deposit requirement and possibility of assessment of
antidumping duties could materially adversely affect the Company's ability to
sell Taiwan-fabricated SRAMs in the United States and have a material adverse
effect on the Company's operating results and financial condition. At December
31, 1999, the Company had posted a bond secured by a letter of credit in the
amount of approximately $1.7 million and made cash deposits in the amount of
$1.7 million relating to the Company's importation of Taiwan-manufactured SRAMs.
Click on the following hyperlink to view this filing:
freeedgar.com |
