Anti-Dumping Duty on Truck, Bus Radial Tyres in the Offing

The Commerce Ministry is planning to impose anti-dumping duty on import of truck and bus radial tyres with a view to guard domestic rubber players from cheap imports from China, Parliament was informed today.

"As per information received from Rubber Board, Ministry of Commerce & Industry, imposition of anti-dumping duty on import of truck and bus radial tyres is under process with Directorate General of Anti-Dumping and Allied Duties(DGAD)," MoS for MSME Haribhai Parthibhai Chaudhary said in a written reply in Lok Sabha.

He was replying to a query whether cheap imports from China were hurting domestic rubber MSME sector.

Chaudhary further said as per the information available from the board, rubber products including tyres enter India from China at a reduced duty, 8.6 per cent, under Asia Pacific Trade Agreement as compared to the basic duty of 10 per cent, causing surge in import from the neighbouring country.

Major rubber products imported from China are under HS Code 4011 (new pneumatic tyres) and HS Code 4016 (other articles of vulcanised rubber). Most of the products under HS 4016 are products manufactured by micro, small and medium enterprises (MSMEs).

However, the minister informed that as per Directorate General of Safeguards (Central Board of Excise & Customs) "no study or investigation has been carried out to assess the impact of cheap products of rubber on India's MSME sector".

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.

Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.