Global Fastener News

1981 FIN – U.S. Recommends Reducing Surcharge on Japanese Fasteners

February 17
00:00 2012

April 1, 1981 FIN – The U.S. government is recommending a reduction in the surcharge on Japanese fasteners from 4% to 2.7%. The surcharge (on top of the 15% duty) was imposed on the basis of complaints that the Japanese government provided their domestic industry with bounties, special loans, subsidies and so forth to that amount.

The U.S. law providing for such surcharges also provided that they be reviewed annually.

The investigation covering conditions in the Japanese industry in 1979 has been completed and the recommendation for the reduction, published in the April 1 Federal Register, followed. The U. S. domestic industry will now have a chance to comment—attack the recommendation, if they wish—and final rulings are expected sometime in June.

The ruling by the Reagan administration, whatever it is, will only cover 1979 imports. If it is concluded that it was too much, people who paid the surcharge will get refunds. The surcharge from 1980 will not come up for review until next year.

Importers say that a ruling for the lower 1979 duty appears likely now and that this will probably lead to a similar lowering of the current surcharge. “When it’s made final,” Eric Cohn of Allied International, an importer, tells FIN, “they’ll probably take it off, but until you see the final ruling you can’t figure anything; it’s just more gobbledygook. I can’t figure it out and I’ve been working on it for 10 years. It’s not a big subject anyway.”

Another major importer from Japan, Dick Rech, president of Reynolds Fasteners, agrees that a ruling for a lower surcharge will probably lead to a removal now, but points out that during the couple of months that it will take to get a ruling the surcharge will continue to apply. “I don’t know that we’re not competitive now,” he says. “Imports were hurt to some degree, but look at the Department of Commerce figures and you will see that Japan still dominates the importation of fasteners to the U.S. But 4% is 4%.  ©1981/2012 Fastener Industry News

For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com

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