The Hindu Business Line : Higher dumping duty on tyres from China, Thailand proposed

New Delhi, July 4 The Designated Authority in the Commerce Ministry has recommended the definitive dumping duty on tyre, tube and flaps from China and Thailand at a higher level than it did so in the case of provisional dumping duty.

In its recommendations to the Finance Ministry, the Directorate-General of Anti-Dumping & Allied Duties has recommended that the duty on tyre, tube and flaps be set at $135.65. This is far higher than the provisional duty imposed in October 2006 which was $99.3 in the case of imports from China and $121.03 in the case of imports from Thailand.

definitive duty

The Authority has recommended that the definitive duty on import of only tyres at $121.67, $10.06 for only tubes and in case of import of only flaps, at $3.92. These definitive duty rates are the same for imports from China and Thailand.

The domestic tyre industry has been seeking relief from the dumping of bias (non-radial) truck and bus tyres from China and Thailand. The imports from China for the period between April and December, 2006 was close to 5.5 lakh units as against the total imports of just over 3 lakh units for the whole financial year 2005-06.

Tyre industry has been concerned over the rise in imports, since the import prices of truck and bus tyres from China are lower than raw material costs in India and because of this a lot of dumping happens in India.

The industry expects the final notification from the Finance Ministry in the next one-and-a-half months. However, the final notification can be appealed before the Customs, Excise and Service Tax Appellate or before any High Court in the country.

There are generally two ways that the import duty is fixed, one is a fixed duty and the other a reference price which is inclusive of the imported price and customs duty.

“Reference price is good especially where there is undervaluation done on the goods that are imported,” an industry official said.

Once the final notification is issued then there would be no effect even if the customs duty is reduced in the Budget or even if concessions are offered under the regional trade agreements to the two countries.

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