Global Fastener News

November 12, 1991 FIN – The Department of Commerce, in a ruling favoring Chinese lug nut producers, has set a precedent that mat have far reaching effects in increasing the importation of inexpensive Chinese-manufactured fasteners.

The Department of Commerce, has decided, for the first time, to permit the use of the very low Chinese-government-set steel price into the calculation of the cost of manufacture of Chinese-produced fasteners. Before this ruling, the cost of the input steel to the Chinese fastener manufacturer has always been calculated using a much higher ‘world market’ steel price.

This somewhat complicated ruling lowered the duty in recent dumping suit on Chinese lug nuts from 66% to 4%. Consolidated International Automotive Inc. of Los Angeles, California, which filed the original suit against the Chinese lug nut manufacturers, has stated that this ruling, if upheld, will take the teeth out of the anti-dumping law, permitting dumping at will by the Chinese, at prices much lower than those of U.S. Manufactured fasteners.

Consolidated is planning to appeal the ruling, claiming that the Chinese government unfairly subsidizes their steel producers.

Recent trade statistics, complied by the Department of Commerce, and monitored by the Industrial Fasteners Institute, indicate that imports of fasteners from China, by tonnage, have increased from 2.7% of all fasteners imported to the U.S. in 1985, to approximately 10% of all fasteners currently imported into the U.S.  ©1991/2011 Fastener Industry News

Editor’s Note:  Robert Mosbacher was Secretary of Commerce from January 31, 1989 to January 15, 1992 under President George H.W. Bush.