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The eBearing News
June 30, 2003


India Hits Imported Ball Bearings
With High Dumping Duties
copyright © 2003 eBearing Inc.

The Government of India, Ministry of Finance, Department of Revenue, has issued a preliminary determination that ball bearings from four countries are being sold into India at unfairly low prices. In response, it has slapped those imports -- from China, Russia, Poland and Romania -- with extremely high anti-dumping duties under the Customs Tariff Act.

In September 2002, eBearing reported that the Directorate General of Antidumping and Allied Duties (DGAD) had launched a formal investigation into dumping of ball bearings from the Peoples Republic of China, Poland, Russia, and Romania.

• article: India investigates ball bearing dumping allegations

The investigation was in response to a complaint filed by the 12-member Ball and Roller Bearing Manufacturers Association of India.

The DGAD performed an initial investigation and found in favor of the complaint, that there was sufficient evidence dumping was taking place, warranting a full investigation by the Commerce Ministry. The matter was then referred to the Commerce Ministry for a full investigation and determination, if necessary, of the proper anti-dumping duties or penalties.

Now the report has been received and India has responded by imposing extremely high provisional dumping duties on those particular ball bearings, as per the table below.

The provisional duties are in place through December 3, 2003; if the final assessed rates are higher, importers will have to pay the difference retroactively to June 4, 2003.

Commodity high-volume ball bearings which normally sell for pennies have been hit with rates which essentially price them out of the market. For example, a 6201 from China now carries anti-dumping duty of USD $0.442, while other Chinese ball bearings can carry an "all other" rate as high as $0.477. Affected ball bearings originating in or shipped from Russia carry a universal $0.522, Poland $0.461, and Romania, $0.432.

Significantly, the anti-dumping duties also apply to bearings which are shipped from those particular countries, regardless of the bearings' country of origin. This attempt to deal with so-called "pass-through" shipments answers a secondary problem often created by the imposition of duties -- for example, U.S. producers long complained that exporters circumvented U.S. duties on bearings from certain countries, simply by bringing them into the U.S. via Canada or Mexico. In India, imports account for just over 29% of the Rs 2,300 crore bearing market.

In the application of these duties, China has obviously been singled out as the prominent trouble spot. Indian bearing companies have complained for years that China is the source for virtually all of the low-quality and counterfeit bearings that have been coming into their country illegally. Further straining trade tensions, India has so far initiated more than 50 anti-dumping investigations into all types of goods from China.

eBearing interviewed one importer in India who strongly approves of the anti-dumping duties, but adds this caution: "Without proper and increased customs vigilance, these duties will cause smuggling and grey market sales to explode." In fact, India today reported the average selling price of ball bearings in the country recently fell by more than 1% -- despite efforts by the domestic manufacturers to raise or stabilize prices.

The official findings are:
  • ball bearings have been exported to India from the Peoples Republic of China, Poland, Russia and Romania below the normal value, resulting in dumping;
  • the domestic industry has suffered material injury;
  • the material injury has been caused by the dumped imports from the Peoples Republic of China, Poland, Russia, and Romania.
The notification further states, "...the designated authority has considered it necessary to impose anti-dumping duty, provisionally, pending final determination, on all imports of the subject goods originating in or exported from People Republic of China, Poland, Russia and Romania:"

Details of the preliminary duty schedule, in U.S. Dollars, effective through December 3, 2003:

Goods Specification Country of Origin Country of Export Producer Exporter Rate
Ball bearings; bore size over 8mm up to 50mm 6201 P.R. China Any country other than Russia, Poland and Romania M/s Ningbo Teke Bearing Co. Ltd., P.R. China M/s Huanchi Bearing Group Ltd., P.R. China and M/s Ningbo Huanchi Import and Export Co. Ltd., P.R. China $ 0.442 each
Ball bearings; bore size over 8mm up to 50mm 6202 P.R. China Any country other than Russia, Poland and Romania M/s Ningbo Teke Bearing Co. Ltd., P.R. China M/s Huanchi Bearing Group Ltd., P.R. China and M/s Ningbo Huanchi Import and Export Co. Ltd., P.R. China $ 0.391 each
Ball bearings; bore size over 8mm up to 50mm 6203 P.R. China Any country other than Russia, Poland and Romania M/s Ningbo Teke Bearing Co. Ltd., P.R. China M/s Huanchi Bearing Group Ltd., P.R. China and M/s Ningbo Huanchi Import and Export Co. Ltd., P.R. China $ 0.354 each
Ball bearings; bore size over 8mm up to 50mm 6204 P.R. China Any country other than Russia, Poland and Romania M/s Ningbo Teke Bearing Co. Ltd., P.R. China M/s Huanchi Bearing Group Ltd., P.R. China and M/s Ningbo Huanchi Import and Export Co. Ltd., P.R. China $ 0.381 each
Ball bearings; bore size over 8mm up to 50mm All types other than 6201, 6202, 6203 and 6204 P.R. China Any country other than Russia, Poland and Romania M/s Ningbo Teke Bearing Co. Ltd., P.R. China M/s Huanchi Bearing Group Ltd., P.R. China and M/s Ningbo Huanchi Import and Export Co. Ltd., P.R. China $ 0.414 each
Ball bearings; bore size over 8mm up to 50mm All types P.R. China Any country other than Russia, Poland and Romania Any producer other than M/s Ningbo Teke Bearing Co. Ltd., P.R. China Any exporter other than M/s Huanchi Bearing Group Ltd., P.R. China and M/s Ningbo Huanchi Import and Export Co. Ltd., P.R. China $ 0.477 each
Ball bearings; bore size over 8mm up to 50mm All types Any country other than Russia, Poland and Romania P.R. China Any producer Any exporter $ 0.477 each
Ball bearings; bore size over 8mm up to 50mm All types Any country Russia Any producer Any exporter $ 0.522 each
Ball bearings; bore size over 8mm up to 50mm All types Russia Any country other than P.R. China, Poland and Romania Any producer Any exporter $ 0.522 each
Ball bearings; bore size over 8mm up to 50mm All types Any country other than P.R. China, Russia and Romania Poland Any producer Any exporter $ 0.461 each
Ball bearings; bore size over 8mm up to 50mm All types Poland Any country other than P.R. China, Russia and Romania Any producer Any exporter $ 0.461 each
Ball bearings; bore size over 8mm up to 50mm All types Any country other than P.R. China, Russia and Poland Romania Any producer Any exporter $ 0.432 each
Ball bearings; bore size over 8mm up to 50mm All types Romania Any country other than P.R. China, Russia and Romania Any producer Any exporter $ 0.432 each








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- by Bruce A. Carr
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Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.