Anti-Dumping Duty Imposed On Import Of Bus/Truck Tyres From China

India has imposed anti-dumping duty on import of certain type of radial tyres used in buses and trucks to protect domestic manufacturers from below cost shipments from China for five years. The anti-dumping duty has been imposed in the range of USD 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.

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The levy follows recommendation for the same by Directorate General of Anti-dumping and Allied Duties (DGAD). Earlier, Automotive Tyre Manufacturers' Association (ATMA) had filed an application on behalf of the domestic producers -- Apollo Tyres, J K Tyre Industries and CEAT, had approached DGAD for investigations in dumping of tyres. 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 the subject country "below normal value".

Indian tyre manufacturer JK Tyre & Industries Ltd lauded the Government's decision to impose anti-dumping duty for five years, on truck and bus radial tyres from China, a move that is expected ease the burden on the domestic market by creating a level-playing field. The decision, based on the recommendations of the DGAD, will impose Anti-Dumping Duty in the range of $245.35 - $452.33 per tonne on the import of a certain type of tyres in the heavy vehicle segment.

Vikram Malhotra, Marketing Director, JK Tyre & Industries Ltd, said, "The Anti-Dumping Duty will address concerns related to unabated dumping of cheap low-grade Chinese tyres in the Indian market and will boost the industry. Our Chairman Raghupati Singhania has been leading the charge for an anti-dumping duty for years now, as it gives a much-needed impetus for the Indian tyre industry. A check on the import of cheap Chinese pneumatic truck/bus radial tyres will guard domestic players by creating an enabling market that will motivate Indian tyre manufacturers to deliver to their customers quality tyres in and outside India."

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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 steps are taken to ensure fair trade and provide a level-playing field to the domestic industry.

Certain factors, including slow demand, low prices and abundant availability of raw material in China led to dumping of these products in markets like India. Currently, almost 80 per cent of the imports are at concessional duties, which are threatening large investments made by domestic tyre manufacturers, causing material injury to the domestic industry.

The new anti-dumping bridges a huge gap by placing a balanced check mechanism on low-quality and cheaper tyre imports, which were a serious, issue that was challenging the long-term interests of the Indian tyre industry.