The government has started an investigation on whether to extend anti-dumping duties imposed on front axle beam and steering knuckles imported from China, following a petition by auto component major Bharat Forge.
"Having satisfied itself on the basis of the positive prima facie evidence submitted by the domestic industry substantiating the need for a review, the authority (DGAD) hereby initiates a sunset review," a notification of the Commerce and Industry Ministry said.
A sunset review probe is mandatory to determine whether or not the expiry of the anti-dumping duty would likely lead to continuance of dumping and hurt the Indian component makers.
The restrictive duty was imposed on front axle beam and steering knuckles meant for heavy and medium commercial vehicles from China in April 2010 ranging between USD 0.35 per kg to USD 1.11 per kg.
The Ministry clarified that the ambit and scope the present investigation is restricted to imports of 'front axle beam and steering knuckles' meant for heavy and medium commercial vehicles' originating in or exported from China only and the entire axle assemble is not part of the probe.
It further said period of investigation will be April 2013 to March 2014, while Director General of Anti-Dumping (DGAD) would make analysis based on audited accounts for the financial years 2010-11, 2011-12 and 2012-13.
The Ministry has given the interested parties 40 days time, starting from June 13 to submit their comments.
Earlier this year, Bharat Forge had asked the government to continue imposing anti-dumping duties on the auto component imported from China for another five years.
"Domestic industry considers the cessation of anti- dumping duties is likely to lead to continuation or recurrence of dumping and injury," the company said in a letter to Directorate of Anti-Dumping, Commerce and Industry Ministry.
The company in its letter also sought extension of the present anti-dumping duties during the course of investigation.
Countries initiate anti-dumping probes to check if the domestic industry has been hurt because of a surge in below- cost imports.
As a counter-measure, they impose duties under the multilateral WTO regime.
