| "We have recommended raising the anti-dumping import duty on tyre imports to the finance ministry," an official at the directorate, an arm of the commerce ministry, told today. |
| The country, at present, levies anti-dumping duty of $99 a tyre. |
| The finance ministry would take a final call on the issue. As per industry estimates, tyre imports have shot up to 68,000 a month during April-June, the first quarter of the current financial year, from 11,000 tyres a month in 2004. |
| The market share of imported tyres during the June quarter has increased to 8 per cent from 1.2 per cent. |
| The directorate had initiated probe after the Automotive Tyre Manufacturers Association had filed a complaint alleging dumping of new or unused pneumatic diagonal ply or cross ply non radial bias tyres, tubes and flaps by Thailand and China. |
| In October, the finance ministry had imposed a provisional anti-dumping duty on non-radial truck and bus tyres, tubes and flaps imported from these countries. |
| Provisional duty had been imposed through the reference price route to discourage under-valuation. |
| Automotive Tyre Manufacturers Association Director General D Ravindran said the move is aimed at checking under-invoiced imports. |
| "This will check rampant import by Chinese and Thai tyre companies, which manufacture at very low prices," he said. |
| The additional anti-dumping duty would boost domestic tyre companies that were being threatened by imports. |
| The automobile industry has been increasingly eyeing imported tyres for new commercial vehicles. |
| Commercial vehicle majors Tata Motors, Ashok Leyland and Eicher Motors are in dialogue with Chinese companies for sourcing components, including tyres. |
| Auto companies are being forced to import tyres as domestic manufacturers do not make radial tyres for commercial vehicles. |
| Radial tyres have cheaper cost of maintenance and offer better mileage. |
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