The government today ruled out putting immediate restrictions to curb import of tyres from China, saying it is too early for such a step as imports increased only in May-June 2015.
The volume of import of tyres from China had actually come down during 2014-15 from a high of the previous two fiscals and has increased only in May 2015-16, Commerce and Industry Minister Nirmala Sitharaman said in a written reply in Lok Sabha.
"It will be too early to place an immediate restriction on the basis of the trend noticed in May-June 2015," she said.
The minister further said investigation on dumping of tyres from China has been referred to Directorate General of Anti-Dumping (DGAD) and Director General, Safeguards, for the examination of appropriate action.
She also said the Competition Commission of India (CCI) is investigating a case against certain tyre companies for alleged contravention of the Competition Commission Act, 2002.
"Moreover, increasing the customs duty on tyres beyond 10 per cent would not be desirable since the customs duty as per Foreign Trade Agreements (FTAs) are lower", Sitharaman said.
Citing information provided by Automotive Tyre Manufacturers' Association (ATMA), the minister said sale of only one category of Chinese tyre - truck/bus radial tyres- has peaked to 30 per cent of the replacement market.
