Weekly television digest (Jan-Dec 1963)

8-TELEVISION DIGEST NOVEMBER 11, 1963 port problem— if U. S. industry grabs it and grabs it fast— for these reasons: (1) This country is well ahead of Japan in integrated circuits. (2) Automatically produced molecular circuits should have such low labor content that foreign wage scales give importers no advantages. Integrated circuits themselves require no soldering, no hook-up, virtually no hand labor — except in hooking them together. Among products which would be made possible by integrated circuits would be such items as complete FM stereo receiver contained in pair of eyeglasses, powerful AM radio (except for speaker) built into ring, eventually (probably late this decade) pocket TV sets. Mighty Mo is here — and first profound changes in consumer equipment probably will begin to show up within 12 months. 'WINDFALL' TO PICTURE TUBE IMPORTERS? Quiet fight to rectify "mistake" which could cut import duties on foreign picture tubes from traditional 30% down to 6% has shifted from Tariff Commission to Congress. , Change in tariff schedules this summer has already slashed duties on picture tubes from 30% to 12%— as result of what EIA calls "staff error" within Tariff Commission. Further cut may be in store as result of Administration tariff reduction hearings scheduled to begin next month, since picture tubes are on list of items which are being considered for cuts of up to 50%. In this case, action isn't aimed at stemming low-priced competition from Japan— at least, immediately. Only major picture tube imports have been from Holland, whose mighty Philips combine has been shipping 23 -in. b&w tubes to this country all through 1963, most or all of them being purchased by Motorola (Vol. 3:15 p8, 32 pll). It appears that Philips (and its U. S. importer Amperex) has been beneficiary of 60% "windfall" tariff cut which took effect Aug. 31. Philips & Amperex officials were not available for comment last week. Here's history of situation: Under tariff simplification act of 1962, tariff schedules used since 1930 were updated & reclassified, although no changes in rates were supposed to have been made. In old schedules, there was no specific classification for picture tubes. New schedules, which went into effect last Aug. 31, contain "cathode ray tube" category, on which ad valorem tariff is listed as 12%. EIA maintains that picture tubes w'ere taxed under old schedule as articles whose chief value is represented by glass, with tariff of 30%— and in compiling new schedules Tariff Commission staff members erroneously considered picture tubes as items whose chief value is in electronic metal, which subjects them to only 12% duty. In response to formal inquiry by National Video, Rauland, Sylvania & Westinghouse, Customs Bureau July 18 advised that its practice then was to levy 30% duty on picture tubes, according to EIA's attorney Eugene L. Stewart. EIA group then petitioned Tariff Commission to correct rate of duty xmder new schedule, but was advised that timetable didn't permit Commission to go through the customary public notice, hearings, etc. in time to complete its work by mandatory Aug. 31 deadline. Only avenue left open was legislative. Eight bills have been introduced in House to change 12% figure in schedule to 30%— all by members (5 democrats, 3 republicans) of House Ways & Means Committee, which is in charge of tariff legislation. To back up its case, EIA has made studies showing that in principal picture -tube sizes, glass represents chief value. Although correcting legislation is considered to have excellent chance of passage, fact remains that picture tube import duty has been cut by 60% as of Aug. 31. Prospect of another cut is implicit in tariff hearings beginning next month. Industry hopes that in tariff cut hearings it will be working to defend base of 30%— not 12%. TV-RADIO PRODUCTION: EIA statistics for week ended Nov. 1 (44th week of 1963) excluding 11-in. < and smaller: | Oct. 26-Nov. 1 Preceding wk. 1962 wk. '63 cumulative '62 cumulative Black & white TV. . . 151,385 155,442 139,376 5,971,874 5,578,637 Total radio 457,514 480,090 455,235 15,350,477 16,140,367 Auto radio 208,768 202,856 183, 190 6,630,438 5,849, 172