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AD Cash Deposits Again Required for Ball Bearings from Japan and United Kingdom

Wednesday, December 11, 2013
STR Advisory

The International Trade Administration is reinstating its antidumping duty orders on ball bearings and parts thereof from Japan and the United Kingdom as of Nov. 29, 2013. As a result, the ITA will instruct U.S. Customs and Border Protection to resume the collection of cash deposits for estimated AD duties at the rates in effect on July 15, 2011, the date on which the collection of cash deposits was discontinued when the orders were revoked.

The ITA is also resuming its administrative reviews of these orders for the periods May 1, 2009, through April 30, 2010, and May 1, 2010, through April 30, 2011. At the time the orders were revoked the ITA had issued the preliminary results of the 2009/2010 review and had just initiated the 2010/2011 review. The ITA therefore intends to issue the final results of the 2009/2010 review by approximately April 11, 2014 (120 days after Dec. 12), and to issue the preliminary results of the 2010/2011 review by approximately Sept. 5 (245 days after Dec. 12). The ITA also intends to provide, in May 2014, an opportunity for interested parties to request administrative reviews of these orders for the periods May 1, 2011, through April 30, 2012, and May 1, 2012, through April 30, 2013. Each of these reviews will determine the amount of AD duties to be assessed on subject merchandise entered or withdrawn from warehouse for consumption during the relevant period, and new AD cash deposit rates are likely to be established as well.

The reinstatement of these orders follows a protracted legal battle that saw two reversals of the International Trade Commission’s sunset review determination in 2006 that the revocation of these orders would be likely to lead to the continuation or recurrence of material injury to an industry in the U.S. within a reasonably foreseeable time. The Court of International Trade ultimately reinstated that determination Nov. 18 on orders from the Court of Appeals for the Federal Circuit.

The products covered by the orders include all antifriction bearings that employ balls as the rolling element. Imports of these products are classified under the following categories: antifriction balls, ball bearings with integral shafts, ball bearings (including radial ball bearings) and parts thereof, and housed or mounted ball bearing units and parts thereof. Imports of these products are classified under HTSUS subheadings 3926.90.45, 4016.93.10, 4016.93.50, 6909.19.50.10, 8414.90.41. 75, 8431.20.00, 8431.39.00.1 0, 8482.10.10, 8482.10.50, 8482.80.00, 8482.91.00, 8482.99.05, 8482.99.35, 8482.99.25.80, 8482.99.65.95, 8483.20.40, 8483.20.80, 8483.30.40, 8483.30.80, 8483.50.90, 8483.90.20, 8483.90.30, 8483.90.70, 8708.50.50, 8708.60.50, 8708.60.80, 8708.93.30, 8708.93.60.00, 8708.99.06, 8708.99.31.00, 8708.99.40.00, 8708.99.49.60, 8708.99.58, 8708.99.80.15, 8708.99.80.80, 8803.10.00, 8803.20.00, 8803.30.00, 8803.90.30, 8803.90.90, 8708.30.50.90, 8708.40.75.70, 8708.40.75.80, 8708.50.79.00, 8708.50.89.00, 8708.50.91.50, 8708.50.99.00, 8708.70.60.60, 8708.80.65.90, 8708.93.75.00, 8708.94.75, 8708.95.20.00, 8708.99.55.00, 8708.99.68, and 8708.99.81.80.

The size or precision grade of a bearing does not influence whether the bearing is covered. The orders cover all the subject bearings and parts thereof (inner race, outer race, cage, rollers, balls, seals, shields, etc.) outlined above with certain limitations. With regard to finished parts, all such parts are included in the scope of the orders. For unfinished parts, such parts are included if they have been heat-treated or if heat treatment is not required to be performed on the part. Thus, the only unfinished parts that are not covered by the orders are those that will be subject to heat treatment after importation. The ultimate application of a bearing also does not influence whether the bearing is covered by the orders. Bearings designed for highly specialized applications are not excluded. Any of the subject bearings, regardless of whether they may ultimately be utilized in aircraft, automobiles or other equipment, are within the scope of the orders.

For more information contact Kristen Smith at (202) 730-4965 or Mark Ludwikowski at (202) 730-4967.

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