The Hindu Business Line : Ministry for removing dumping duty on ball bearings

THE Designated Authority in the Commerce Ministry has recommended the withdrawal of provisional anti-dumping duty imposed by it on imported ball bearings from China, Poland, Russia and Romania on grounds that "though subject goods have been exported to India from subject countries below their normal value resulting in dumping, the domestic industry has however not suffered material injury as a result of the dumped imports".

In its final findings, the Authority said that following a written petition filed by Ball and Roller Baring Manufacturers' Association of India through its members viz, FAG Bearings India Ltd, Vadodara, NRB Bearings Ltd, Mumbai, SKF Bearings India Ltd, Mumbai, National Engineering Industries Ltd, Jaipur and Tata Iron and Steel Company Ltd (bearing division), Khargapur, representing the domestic industry alleging dumping of ball bearings and parts and components thereof (up to 50 mm bore diameter), the Authority noted preliminary findings and recommended provisional anti-dumping duty. The period of investigation (POI) was from January 1, 2001 to March 31, 2002.

However, subsequently when disclosure statement was sought from importers and other user industries affected by the anti-dumping duty, a public hearing was organised by the Authority on July 15, 2003. Based on the interface with user industries and exporters' submissions, the Authority came out with comments on its preliminary findings.

It has been held in the preliminary findings that the imports of subject goods from subject countries have increased from 23.25 lakh pieces during 1998-99 to 479.23 lakh pieces during the period of probe, an increase of more than 1600 per cent. But the import volume by itself is not a sign of injury unless the same is analysed in the context of the total market share of the domestic industry.

Besides, the production of subject ball bearings had gone up which does not show any injury to the domestic industry. This is further corroborated by the fact that the capacity utilisation of subject bearings had gone up during the period of probe, indicating no injury to the domestic industry.

The domestic industry's sales in volume and value terms have gone up during POI and thus there is no injury on sales, the Authority said, adding that the closing stock had come down during the period of probe for all types of ball bearings and hence there is no injury.

The Authority said that in its preliminary findings, it was held that return on capital employed has declined from 4.88 during 2000-01 to 4.49 during the period of probe. But, it has gone up from 1.83 during 1998-99 to 4.49 during the period of probe.

The trend shows a continuous upward movement and there is no basis to assume that injury, if any, has been caused due to the alleged dumping, the Authority categorically noted.

It further noted that the effect of the dumped imports on the domestic industry is to be seen in terms of its performance as regards the product under consideration as a whole i.e., ball bearings above 88 mm to 50 mm as per the anti-dumping rules.

The impact of the dumped imports on the domestic industry cannot be seen with reference to a limited segment of the product under consideration. The domestic industry has shown improved performance in respect of higher production, higher capacity utilisation, improved sales performance, improved profitability, reduced inventory and improved productivity with regard to the product as described for the purpose of this probe

``Price undercutting and price under-selling per se in respect of some of the models of ball bearings covered by the product under consideration may not signify overall injury suffered by the domestic industry in respect of product under consideration,'' the Authority noted.

As the decline in the market share of the domestic industry in demand of subject goods is not considered a significant indicator of injury when the overall demand is burgeoning, the Authority concludes that based on the available evidence, the domestic industry has not suffered material injury. Hence, it is considered necessary to withdraw the anti-dumping duties recommended provisionally on May 6, 2003 on imports of ball bearings above 8 mm and up to 50 mm diameter from exporting countries of China, Poland, Romania and Russia.

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