The Hindu Business Line : Provisional dumping duty on truck-bus tyres mooted

Heavy weight
The duty burden is heavier on tyres from Thailand.
Imports from China previously attracted duty and CVD totalling 37.1 per cent

Kolkata , Aug. 5

The Directorate-General of Anti-Dumping and Allied Duties under the Union Commerce Ministry has recommended imposition of provisional anti-dumping duty on import of cross-ply truck-bus tyres from China and Thailand. The duty burden is heavier on tyres from Thailand.

In its preliminary findings announced on July 31, the anti-dumping authority has found that the imports were causing injury to the domestic tyre industry, during the 14-month enquiry period from June 2004, and issued fresh set of reference prices for such imports. The enquiry was launched based on complaints from the tyre industry in late 2005.

Hike in duty

While the fiat does not quantify the percentage of duty, Mr S.P. Singh, Convenor of All-India Tyre Dealers' Federation (AITDF) and one of the challengers of tyre industry's plea, said that the incidence was up to 71 per cent. The new prices would be effective from September.

Truck-bus tyre imports from China were previously attracting import duty and CVD totalling 37.1 per cent. The Automotive Tyre Manufacturers Association (ATMA) officials were not available for comment on the issue. Apollo Tyres, one of the largest tyre manufacturers in the country, had sought time to comment on the recommendation.

According to the new set of reference prices issued, a Chinese truck-bus tyre inclusive of tube and flap would now cost the Indian customer $99.3. "The new landed price would be $11 more than the existing price," Mr Singh said, adding that considering the recent appreciation of the dollar, Chinese imports would now cost over Rs 1,000 for a pair.

Higher prices

According to him, since Chinese imports constitute 90 per cent of the total imports (amounting to about 11,000 per month during the period of inquiry), anti-dumping levy would bring imports to a grinding halt.

Criticising the steps taken by the anti-dumping authorities, Mr Singh said it would encourage domestic tyre manufacturers to dictate terms in the market. "A pair of truck tyres, which were costing Rs 20,700 in January this year now costs Rs 25,400. In July, when rubber prices were softening before coming down from its peak of Rs 111 a kg to Rs 90, tyre prices were increased by eight per cent," he said.

"We will soon approach the proper forum seeking a reversal of the measures recommended by the anti-dumping authorities," he said.

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