India has imposed anti-dumping duty on the import of a certain type of radial tyres used in trucks and buses in a bid to protect domestic tyre manufacturers from below-cost shipments from China for five years.
The anti-dumping duty has been imposed in the range of US$ 245.35-452.33 per tonne, said a notification issued by the Central Board Excise and Customs (CBEC). The duty has been slapped on ‘new/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having nominal rim dia code above 16 (inch)’ used in buses and lorries/trucks.
The levy follows a recommendation for the same by the Directorate General of Anti-dumping and Allied Duties (DGAD). Earlier, the Automotive Tyre Manufacturers' Association (ATMA) had filed an application on behalf of domestic tyre producers. It is understood that Apollo Tyres, J K Tyre Industries and Ceat had approached DGAD for investigations regarding dumping of tyres in India, as per a PTI report.
In its recommendation, the DGAD had said the domestic industry has suffered material injury on account of the imports from China. It found that the tyres have been exported to India from China ‘below normal value’.
The anti-dumping duty will come as a shot in the arm for domestic tyre manufacturers who have been under pressure from sales of lower-priced Chinese-made TBRs.
Last month, Onkar S Kanwar, chairman, Apollo Tyres, had said: "The recommendation by the Directorate General of Anti Dumping (DGAD) in India to impose anti-dumping duty on truck-bus radials from China has vindicated our stand on the same, and which, once implemented, would be a boost for us in India."
Countries impose anti-dumping duties to guard domestic industry from surge in below-cost imports. India has also imposed similar duties on import of several other products including steel, fabrics and chemicals from different countries including China. Anti-dumping measures are essentially taken to ensure fair trade and provide a level-playing field to the domestic industry and are not a means to restrict import or cause an unjustified increase in cost of products.