Panel for 36 per cent hike on tyre anti-dumping duty

The directorate general of anti-dumping and allied duties has recommended raising the anti-dumping duty on truck and bus tyres by 36 per cent to $135 a tyre to check rampant imports from China and Thailand.

"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.