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U.S. Dumping Investigation
Into Ball Bearings from China




NOTE:
On April 3, 2003, the ITC unanimously found no damage to the U.S. ball bearing industry, eliminated the duties and ended the investigation.


History

Until recently, trade groups and individual companies tended to rely on Section 232 complaints to address what they contend are unfairly priced import products.

Section 232 investigations are conducted under the authority of the Trade Expansion Act of 1962, as amended (9 U.S.C. 1862). The purpose of the investigation is to determine the effect of imports on the national security. Investigations may be initiated based on an application from an interested party, a request from the head of any department or agency, or may be self-initiated by the Secretary of Commerce.

If the Secretary finds that imports threaten to impair the national security, the President has 90 days to determine whether he agrees with the Secretary’s findings, and to determine whether to use his statutory authority to "adjust imports."



• October 16, 1964: the AFBMA (American Bearing Manufacturers Association) petitioned the U.S. Department of Commerce under Section 232 that antifriction bearings and parts were a danger to national security (29 FR 14553). The petition was withdrawn in late 1996 (31 FR 14470).

• January 31, 1969: the AFBMA petitioned the U.S. Department of Commerce under Section 232 that imports of miniature and instrument precision ball bearings was a national security threat and should be curtailed (34 FR 2162). and instrument precision ball bearings was a national security threat and should be curtailed. In the investigation concluded May 1971, the imports did not threaten to impair national security (36 FR 8537).

• July 17, 1987: the AFBMA (then Antifriction Bearing Manufacturers Association) petitioned the U.S. Department of Commerce under Section 232 that imports of antifriction bearings threatened national security and should be curtailed (52 FR 28857). In November 1988, the ITC determined imports did not impair national security (54 FR 1974).



On February 13, 2002, the American Bearing Manufacturers Association (ABMA) petitioned the U.S. International Trade Commission (ITC), requesting an investigation into alleged dumping of ball bearings and parts from the People's Republic of China (formally, a Section 731 complaint). The ABMA claims ball bearings from China are being sold in the United States at unfairly low prices, threatening the survival of the domestic ball bearing industry.

ABMA President, David Rohn, indicated to eBearing the ABMA's executive board made the decision to file the complaint. He said the group's position is that the U.S. market is being overrun with unfairly priced ball bearings from China; he noted, for example, that the number of ball bearings brought into the U.S. from China each year recently jumped from 323 million to 411 million.

The ABMA press release:
As discussed in the petition, the volume of Chinese ball bearings and parts imported into the United States is significant and increasing, having reached record levels in each of the past four years. These imports are being sold at unfair prices, with dumping margins on many sales well in excess of 100 percent. As a direct result of these aggressive and unfair pricing practices, Chinese ball bearing producers have captured an increasing share of the U.S. market. Domestic manufacturers have lost significant sales and have suffered serious price erosion. U.S. ball bearing production has dropped, and capacity utilization, wages and employment, profits, and investment have all been affected adversely. In short, the unfair pricing tactics of Chinese producers have materially injured the U.S. ball bearing industry and threaten even greater injury in the future.

"Our member companies are among the most advanced and efficient in the world," said David Rohn, the ABMA's President. "They are able to compete with anyone, including the Chinese, provided that competition takes place on a level playing field. We are seeking through this antidumping action to achieve fair trade by eliminating unfair pricing."

Last year, the market for ball bearings and parts in the United States exceeded $2 billion. The federal government has found that a vibrant domestic ball bearing industry is of strategic importance to U.S. national defense and, more generally, to a strong national industrial base. If the unfair Chinese imports continue unabated, the ability of the U.S. ball bearing industry to fulfill these strategic roles will be undermined.
Asked about possible action regarding Chinese tapered roller bearings in the U.S. market, Mr. Rohn said the Board's decision at this time was to file the petition only in reference to ball bearings.


The complaint was initially successful and preliminary rounds of duties were levied on ball bearings from Chinese manufacturers.


On April 3, 2003, the ITC unanimously found no damage to the U.S. ball bearing industry, eliminated the duties and ended the investigation.



Resources

February 18, 2002: initial article on eBearing.com

February 25, 2002: follow-up article on eBearing.com

February 21, 2002: Federal Register notice vol. 67, No. 35 pages 8039-8040
the announcement of the investigation


October 3, 2002: preliminary affirmative determination article

Printer-friendly table of preliminary duty margins and deposit requirements, by company

October 7, 2002: industry reactions to the dumping decision

October 15, 2002: Federal Register notice vol. 67, No. 199 pages 63609-63616
the final dumping decisions and a detailed description of the investigation


October 23, 2002: Federal Register notice vol. 67, No. 205 pages 65142-65143
the scheduling announcement for the final phase of the investigation


November 14, 2002: the preliminary duty and deposit schedule is dramatically amended

March 11, 2003: the final duty and deposit schedules are announced

April 4, 2003: ITC votes 4-0 to end the investigation, finding no injury to U.S. industry



The Duty and Deposit Schedule

Printer-friendly version of the duty schedule



Consolidated Public ITC investigation records

ITC public record of the investigation on EDIS II

How to use the new EDIS II database

step 1 : click on the link above
step 2 : click the link marked Public Access in the left column
step 3 : on the Welcome to EDIS screen, click the link marked Search/Retrieval
step 4 : on the EDIS Search/Retrieval form, find the field marked Investigation #
step 5 : type in the investigation number, in this case: 731-989
step 6 : go to the bottom of the screen and click the Search button



ITC Contact Information

Fred Ruggles
Office of Investigations, U.S. International Trade Commission
500 E Street SW
Washington DC 20436

phone 202-205-3187


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