Government probes dumping of Chinese tyres

Government has initiated a probe into dumping of certain radial tyres from China that are used in buses, lorries and trucks and may end up imposing duty on them to protect the domestic industry.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has found "sufficient prima facie evidence" of dumping of these tyres from China.

Automotive Tyre Manufacturers' Association has filed application on behalf of domestic players -- J K Tyre Industries Ltd, Ceat Ltd and Apollo Tyres Ltd -- for initiation of an anti-dumping investigation and imposition of the duty on the imports.

The DGAD has initiated the investigation on imports of "new/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having nominal rim dia code above 16" used in buses and lorries/trucks" originating in or exported from China.

"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry...to determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti-dumping duty which, if levied, would be adequate to remove the injury to the domestic industry," DGAD said in a notification.

The period of investigation covers July 2014 to June 2015 (12 months). It would also cover the period of 2012-13, 2013-14 and 2014-15.

Countries start anti-dumping probes to determine whether their domestic industries have been hurt because of a surge in below-cost imports. As a counter measure, they impose duties under the multilateral regime of WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

India has already imposed anti-dumping duty on several products, to tackle cheap imports from some countries, including China.