The Finance Ministry has imposed definitive anti-dumping duty on nylon tyre cord fabric (NTCF) imports from China.

The anti dumping duty — which ranges from $0.52 a kg to $1.10 a kg —will be valid for a period of five years.

The move by the Revenue Department follows the Designated Authority in the Commerce Ministry recommending imposition of anti-dumping duty on NTCF imports from China. NTCF finds application in different kinds of automotive tyres such as bus and truck tyres, two-wheeler tyres, light commercial vehicle tyres and cycle tyres.

The application, seeking sunset review of anti-dumping duty imposed on imports of NTCF from China, was filed by the Association of Synthetic Fibre Industry on behalf of two of its member companies — SRF Ltd and Century Enka Ltd.

The domestic tyre industry is resorting to imports of NTCF due to demand-supply mismatch. The annual estimated domestic NTCF production stood at about 84,000 tonnes when domestic consumption is about 1,26,000 tonnes.

The Automotive Tyre Manufacturers’ Association (ATMA) has been making a case for reducing basic customs duty on NTCF from 10 per cent to 5 per cent. This should be done especially when the domestic capacity/production is insufficient to meet the domestic demand, it said.

Currently, NTCF imports into India attract basic customs duty of 10 per cent.

The latest move to extend anti-dumping duty for five more years will increase cost of NTCF imports for domestic tyre makers, say tyre industry observers.

This is not the first time that NTCF imports from China are facing anti-dumping action. Ever since 2003, there has been anti-dumping action/investigation against NTCF imports from China.