Commerce Ministry eases import restrictions on pneumatic tyres

In June 2020, the Centre had imposed curbs on the imports of certain pneumatic tyres to promote domestic manufacturing. (Representative image)

More than three years after the Government placed certain types of pneumatic tyres under import restrictions, the Commerce Ministry has released fresh guidelines for tyre manufacturers committing to invest in India in brownfield or greenfield projects.

In June 2020, the Centre imposed curbs on the imports of certain new pneumatic tyres used in motor cars, buses, lorries, and motorcycles to promote domestic manufacturing.

"Import policy of new pneumatic tyres...is amended from free to restricted," the Directorate General of Foreign Trade (DGFT) stated in a notification.

Once the goods were put under the restricted category, importers had to acquire a license or permission from the DGFT for imports.

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However, as the Indian tyre industry has been witnessing a rise in the demand for the production of tyres for export and domestic sales, the Ministry of Commerce has decided to amend the restrictions.

According to Automotive Tyre Manufacturers' Association (ATMA) Chairman Satish Sharma, earlier this year in March, the export of tyres from India was expected to rise by 15 percent in the ongoing fiscal year. “Tyre exports from India went up by 50 per cent last year, and we are likely to close the ongoing financial year with nearly 15 percent growth,” he said.

The ministry stated in a notification: “The increasing ownership of vehicles aids the tyre industry. There is also a surge in demand for tyres for trucks and buses owing to rising mobility and industrialization. Research and Development (R&D) and the launch of advanced and eco-friendly tyres also aid the market growth for tyres.”

It added: “Presently, import authorizations for new pneumatic tyres have been placed under the ‘restricted category’ in terms of Notification No. 12/2015-2000 dated 12-06-2020 issued by the DGFT, and hence, the importers have to apply for an Import License for tyres covered under the aforesaid notification.”

But, considering the “overall growth of the tyre industry,” the Ministry of Commerce and Industry has proposed fresh guidelines for tyre manufacturers committing to invest in India in brownfield or greenfield projects for manufacturing tyres falling under the restricted list.