The commerce ministry's investigation arm DGTR has recommended continuation of antidumping duty of USD 613 per tonne on flat base steel wheels imported from China for five more years.
The duty is aimed at guarding domestic makers of the product from below-cost imports.
In its sunset review investigation on imports of the wheel, the Directorate General of Trade Remedies (DGTR) has concluded that the product is likely to enter the Indian market at dumped prices if the antidumping duties in force cease to operate.
The situation of domestic industry is likely to deteriorate if the existing anti-dumping duties are removed, it has said in a notification.
The deterioration in the performance of the domestic industry is likely because of dumped imports from China and "the anti-dumping duties are required to be extended," it said.
"The authority recommends continued imposition of antidumping duty for a period of five years," it added.
The finance ministry in December 2007 imposed the duty on imports of the product from China and again extended the duty in March 2013.
Following a complaint by the domestic industry, the DGTR carried out the sunset review investigation.
The final view for continuation of the duty will be taken by the finance ministry.
Anti-dumping duties are levied to provide a level playing field to the local industry by guarding against cheap below-cost imports.
Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime.
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.
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