The Designated Authority in the Commerce Ministry has recommended the imposition of definitive anti-dumping duty on imported bus and truck radial tyres from China and Thailand, despite a chorus of protests from a group of user industries of tyre dealers, importers and traders.
In its final findings on a petition filed by the Automotive Tyre Manufacturers Association (ATMA), represented by the domestic manufacturing industry, the Authority described the product under probe as “new/ unused pneumatic radial tyres, with or without tubes and flaps of rubber, having nominal rim dia. code above 16” used in buses/lorries and trucks.
As in tube tyre product, tyre is used along with one tube and one flap in a vehicle and such a tyre, tube and flap are together sold as a ‘tyre set'.” It said tubeless radial tyres where tube and flap are not required are also within the ambit of this probe.
Dealers view
In their arguments against injury to the domestic industry, the imported radial tyre industry — of dealers, importers and traders — contended that the domestic industry failed to cater to the demand of the country with all three major manufacturers either producing small volumes or their expansion of plant capacities being under stabilisation. It said that in such a situation, the cost affiliated to the subject material is bound to escalate.
It quoted the ATMA Director-General's argument that “radialisation of truck and bus tyres is currently approximately 10 per cent, against 95 per cent in the case of passenger car tyres, and large number of truck/bus operators in India being one or two vehicle owners only, a large percentage of their vehicles being old and with outdated technology and condition of roads being poor and truckers' tendency to overload have together put paid the use of radial truck and bus tyres.”
User industries
Hence, the user industries charged the producers with “a dog in the manger” attitude of neither producing on their own nor allowing imports.
Stating that from the goods carriage operator's point of view the import of radial truck/bus tyres is unassailable both in terms of quality and price, they described the domestic tyre manufacturers claim that goods produced by them are like goods originating in or exported from China and Thailand as “sheer travesty of the fact”.
In a direct reference to the Authority's only mandate to look into the interests of the domestic industry, they said unfortunately the users of the product of these manufacturers are not blessed with similar institutional protection of their right to carry on their business “freely, optimally and profitably”. They said the Authority is better advised to see through the game of domestic tyre manufacturers to outprice the import of tyres through anti-dumping levy/restrictions and, thereby, by default condemn the domestic commercial vehicle operators to continue to suffer the oligopoly of domestic tyre makers who relish perpetrating their outdated technology at opportunistic price”.
Undeterred by such criticisms from the user industries, the Authority dismissed the issues raised by the responding “Federation/Association s as a repeat of what has been stated in earlier submissions” and argued that the Authority is required to carry out anti-dumping probe within the scope of anti-dumping rules. The Authority held that it weighed all parameters based upon the verified records, both of the domestic producers and responding exporters and found “conclusive evidence” that the import of subject goods from China and Thailand were taking place at dumped prices and thus caused material injury to the indigenous industry.
Accordingly, the Authority has recommended definitive anti-dumping duty on one set of tyre, tube and flap (TTF) at different rates to different Chinese manufacturers/exporters ranging from a low of $24.97, $25.68, $26.01, $30.79, $32.74, $34.81, $35.17, $37.21, $37.83, $39.66, $40.73 and $42.48, while any other manufacturer/exporter than the dozen mentioned in the probe has to pay an anti-dumping duty of $88.27 per set of TTF.
In the case of exporters from Thailand, the recommended definitive anti-dumping duty is $76.22 for the firm Michelin Siam Co Ltd (Thailand/Singapore) and the trading firm Michelin Asia Pacific Import-Export (HK) Ltd, while all other producers/exporters from Thailand have to pay $99.05 per TTF.
Where the import is of tyre, tube or flap individually or in combination, the amounts shall be computed by applying 90 per cent of the duty recommended on tyre, 7 per cent on tube, 3 per cent on flap, while it is 97 per cent of tyre and tube, 93 per cent on tyre and flap and 10 per cent on tube and flap.
Source : Business Line