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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was withdrawn in late 1996 (31 FR 14470).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).
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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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