Government Probes Dumping Of Chinese Radial Tyres

At last, the government has ordered an investigation into the dumping of certain China-made radial tyres. These Truck and Bus Radials (TBR), in a short span of time, have emerged as a potent threat to the tyre manufacturers in the country besides their customary competitors. There are all chances that the government may impose duty on such TBRs with the aim of protecting and encouraging the domestic tyre industry.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) said in a statement that they have discovered “sufficient prima facie evidence” with regards to the dumping of Chinese tyres in India. The DGAD came into action after the Automotive Tyre Manufacturers’ Association (ATMA) filed an application on behalf of the leading domestic players for the instigation of an anti-dumping probe and, to tighten the noose over the imports, imposition of the duty. JK Tyre Industries Ltd., Ceat Ltd., and Apollo Tyres Ltd. were the tyre makers that notified ATMA to take necessary proceedings forward.

DGAD has set-off the import investigation on the new/unused pneumatic radial tyres with or without tubes used in trucks/lorries and buses that possess nominal rim diameter code greater than 16-inch. This also includes tubeless tyres or flap of rubber manufactured or exported from the dragon land. The authority will probe into the alleged dumping and will study the subsequent harm to the domestic manufacturing. It will also determine its existence and degree of effect on the domestic industry by the alleged dumping. Alongside, it will also suggest the extent of anti-dumping duty which, if charged, would be sufficient enough to eliminate the damage that it causes to the domestic industry, DGAD stated in a remark. The probe will cover the period from July 2014 to June 2015 (12 months), 2012-13 and 2013-14.

This is to be noted that initiating an investigation on anti-dumping activities is a routine measure for any country to find out whether the pour of below cost import is taking a toll on their home-grown industries. And, if found, they are entitled for the imposition of duties under multilateral system of the World Trade Organisation (WTO). In order to deal with the cheap import of various products from some countries, the anti-dumping duties have already been enforced by India, with China on top of the list.