The Hindu Business Line : Ceramic tile makers seek protection from Chinese imports

THE induction of China into the Bangkok Agreement, meant to promote free trade among South East Asian countries, has posed a problem for the domestic ceramics industry, which has already witnessed a negative growth in exports and a drastic fall in production in the 2003-04 fiscal.

The Indian Council of Ceramics Tiles and Sanitary Ware (ICCTSW) fears that the situation may worsen further unless the Finance Minister takes steps to protect the interests of the industry.

Exports showed a negative growth of nine per cent in 2003-04 against 47 per cent growth in 2002-03 and 13 per cent growth in 2001-02.

Similarly, growth in production was restricted to 14 per cent compared to about 23 per cent in the 2002-03 fiscal.

In view of this, it has urged the Centre to transfer ceramic tiles to Group II of the Bangkok Agreement, attracting 15 per cent basic customs duty, as an interim measure to provide relief to domestic manufacturersalready affected by the customs duty of 10 per cent enjoyed by China since its induction into the Bangkok Agreement. Also, imported tiles should conform to BIS standards.

The council feels that the Government's next step should be to impose a ban on exports of critical and high-value raw materials like zircon sand and zirflour (used in the manufacture of value-added products) to avoid the exhaustion the reserves of these minor minerals.

While stressing the need for a correction in the existing anomaly in customs duty on raw materials and finished tiles, the council has stated that the maximum retail price (MRP) abatement for excise duty assessable value needs to be revised from 45 per cent currently to 50 per cent so that the items can reach remote locations of the country at competitive prices.

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