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Date: 2013-08-01

Koyo and NSK Win Dumping Duty Review

NSK Ltd. (Japan) and JTEKT (Koyo; Japan) have won a significant victory in convincing the U.S. Court of International Trade to force the Department of Commerce to reconsider how it handles antidumping duty reviews.

At issue are so-called Sunset Reviews, conducted by the U.S. Department of Commerce. At the 1995 Uruguay Round of tariff negotiations, countries agreed to "sunset" or allow their antidumping duties and tariffs to expire every five years, rather than the previous system which allowed duties to remain in place indefinitely. Commerce's International Trade Commission conducts the sunset review investigations.

Import duties remain in place when an ITC investigation shows that rescinding them will harm the domestic industry.

Since 1988, the U.S. has had antidumping duties on ball bearings from China, France, Germany, Italy, Japan, Singapore and the United Kingdom under 731-TA decisions. Duties on ball bearings from China have since been rescinded.

The latest sunset review decision occurred in 2006, and the ITC determined the need to continue antidumping duties on those bearings to prevent "material injury of the domestic industry."

Koyo and NSK, joined by several other bearing manufacturers, went to the Court of International Trade and challenged the ITC's methodology in reaching that decision. In particular, they challenged the depth and rationale of the ITC's analysis in light of recent developments and reinterpretation of its own data.

The key success point in their argument came from challenging the ITC's findings based on another recent decision, Bratsk Aluminum Smelter v. United States. In Bratsk, the Federal Circuit court held
[w]here commodity products are at issue and fairly traded, price competitive, non- subject imports are in the market, the Commission must explain why the elimination of subject imports would benefit the domestic industry instead of resulting in the non-subject imports


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