Tyre industry seeks anti-dumping duty on Chinese radials
The Department of Industrial Policy and Promotion (DIPP) is studying the possibility of an import duty cut on radial tyres for commercial vehicles.business Updated: Jun 06, 2008 20:43 IST
The Department of Industrial Policy and Promotion (DIPP) is studying the possibility of an import duty cut on radial tyres for commercial vehicles. Although the passenger car market mostly deals in radials, commercial vehicles largely run on cross-ply tyres due to lack of radial production in the country. Radials attract an import duty of 14 per cent and an additional 14.5 per cent countervailing duty (CVD).
There was some ground for a duty cut because of the inadequate availability of radials, but the government would have to ensure against any dumping from China, a DIPP official told Hindustan Times. "Radial tyre imports have gone up substantially, but there is no denying that it is the future (of tyres)," said the official who spoke on condition of anonymity.
Last month the Prime Minister's Office had asked the DIPP to look into tyre pricing issues after charges of unjustified price hikes and cartelisation were levelled against the industry. DIPP Secretary Ajay Shankar on Monday met tyre dealers under the aegis of All India Tyre Dealers to discuss pricing issues. Tyre imports were also deliberated upon during the meeting.
While tyre dealers have been asking for a reduction in import duties on commercial vehicle radials because of a shortage in the domestic market, the manufacturers, on the other hand, have been lobbying for the imposition of anti-dumping duties on them.