Dumping duty goes on tyres from China, Thailand 11 Aug 2011

Dumping duty goes on tyres from China, Thailand 11 Aug 2011



New Delhi, Aug. 10: Truck and bus tyres imported from China and Thailand have been rid of additional Customs levies.
In a major relief to user industries, a three-member Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside the levy of definitive anti-dumping duty on truck/bus radial tyres and tubes imported from China and Thailand.
The appeal against the anti-dumping duty, clamped in January 2010, was filed by Bridgestone Tyre India, Tata Motors Ltd and a few others while the respondents included the Designated Authority in the Commerce Ministry and the Department of Revenue.
The All India Tyre Dealers' Federation (AITDF) and others were listed as interested parties. The original petition seeking the anti-dumping duty was filed by the Automotive Tyre Manufacturers (ATMA) with the Customs notification issued on February 19, 2010 based on the Designated Authority's earlier recommendations were set aside by the Appellate Tribunal early this month.
The AITDF hailed the Tribunal decision. In a statement issued here, it said that ever since the anti-dumping duty of $32 to $90 per tyre was clamped, import of truck/bus radials had crashed in the replacement market that relies heavily on Chinese and Thai products.
Domestic tyre prices had soared in the last 18 months, rising a hefty 21 per cent since January, though natural rubber prices had come down significantly from the peak of Rs 240 a kg to Rs 207 now.
The Federation hoped that in the coming weeks the import of truck/bus radials would gain traction to revert to the pre-anti-dumping duty levels. ATMA expects a pair of truck/bus radial tyres and tubes to be cheaper by Rs 4,000-6,000 depending on the brand.
However, sources, associated with the original petitioner that sought the levy of an anti-dumping duty on such imports were of the view that the Appellate Tribunal's order can be challenged in the Supreme Court. If they succeeded in securing a stay then the Revenue Department may not be able to revoke the anti-dumping duty until the stay is vacated.
Equally, importers of radial tyres can file a caveat in the apex court not to quash the Appellate Tribunal order in the interest of user industries and customers who would see tyre prices coming down by 15-20 per cent, once the anti-dumping duty is abolished.
‘Prestige issue'
The AITDF Convenor, Mr S. P. Singh, told Business Line that he has already written to the Ministers for Finance, and Commerce and Industry as also to the Designated Authority in the Commerce Ministry imploring them not to take the setting aside of the anti-dumping duty as ‘a prestige issue' because this would help break the oligopolistic and market-cornering move of the domestic tyre manufacturers and provide them an easy opportunity to jack up domestic prices frequently and unjustifiably.
Road transport industry
He said the domestic road transport industry would benefit immensely if the Tribunal order were implemented by reducing its operating costs and thereby help lowering the truck freight.
He said that already both the Competition Commission of India and the Tariff Commission have been seized of the complaints by the AITDF of concentration of market among the five top tyre companies resulting in anti-competitive behaviour and how this had led to market distortions.
Their verdict would hopefully provide the much-needed relief to radial tyre users in the country, he said.