|
|
|
|
|
The eBearing News
December 7, 2004
Timken Announces 2004 CDSOA Payout
copyright © 2004 eBearing Inc.
The Timken Company (USA) said it has received notification from the U.S. Department
of Customs and Border Protection that its 2004 payout under the Continued Dumping and Subsidy
Offset Act of 2000 (CDSOA or Byrd Amendment) will be made in December.
Timken will receive $65.7 million, covering this year's payout
related to Timken, Torrington, and Timken's Miniature Precision Bearings operations.
• article: U.S. bearing industry 2004 CDSOA claims outlined
A Timken spokesman told eBearing none of the CDSOA payout for this year involves Kilian bearing,
which Timken recently sold to Genstar Capital LP.
• article: Timken divests Kilian to Genstar
Of the $65.7 million, however, Timken will net only $39.7 million -- $33.2 million for Timken and
MPB claims, and $6.5 million for Torrington-related claims.
The entire Torrington-related portion of the payout is actually $32.5 million. But as part of its 2003 acquisition
of Torrington from Ingersoll-Rand, Timken agreed to kick back 80% of all 2003 and 2004 Torrington-related CDSOA
payouts. For 2004, Timken receives $32.5 million, sends $26.0 million to
Ingersoll-Rand, and keeps $6.5 million.
The highly controversial CDSOA modifies the Tariff Act of 1930 and instructs Customs to
put all antidumping tariffs it collects into special accounts, one for each case.
Previously, that money went directly into the general Treasury. At the end of the fiscal
year, the money collected in those case-by-case accounts is then paid out directly to
the companies successfully participating in each tariff case.
2004 is likely to be the last year for payouts under the CDSOA. Repeatedly ruled illegal by
the World Trade Organization, extensive trade sanctions are now scheduled to take effect against
U.S. goods, including bearings, unless Congress repeals the Act. Repeal is expected in 2005.
• eBearing's Legislation section dedicated to the CDSOA
This is Timken's fourth payout under the CDSOA.
In 2001, Timken received $31 million.
• 2001 article: Timken receives $31 million CDSOA payout
In 2002, Timken received $54 million, but later had to refund $2.8 million due to a calculation error by Customs.
• 2002 article: Timken receives $54 million CDSOA payout
In 2003, Timken received $68.3 million, and netted $7.7 million for Torrington-related claims after
paying Ingersoll-Rand $35 million.
• 2003 article: Timken receives $70.0 million CDSOA payout for Timken claims
• 2004 article: Timken receives $7.7 million CDSOA payout for Torrington claims
Since 2001, Timken has received over $200 million in CDSOA payouts, making it far and away the legislation's largest
beneficiary.
|
|
|
printer-friendly version
|
|
- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
|
|
eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
|
|
|
|
|
| |
eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
|
|
|
