India may impose anti-dumping duty of up to $452.33 per tonne on a certain variety of Chinese pneumatic radial tyres to guard domestic players from cheap imports.
The commerce ministry's investigation arm - Directorate General of Anti-dumping and Allied Duties (DGAD) - has concluded in its final findings that domestic companies have suffered material injury due to the dumped imports of these tyres from China.
Automotive Tyre Manufacturers' Association (ATMA) had filed an application on behalf of Apollo Tyres, J K Tyre Industries and Ceat Ltd for initiation of anti-dumping investigation and imposition of the duty concerning imports of 'new/unused pneumatic radial tyres with or without tubes and/or flap of rubber having nominal rim dia code above 16" used in buses and lorries/trucks' from China.
The recommended duty ranges between $277.53 per tonne and $452.33 per tonne. While the DGAD suggests the duty, the finance ministry imposes it.
It has recommended "imposition of definitive anti-dumping duties on the imports" of these tyres from China, the DGAD has said in a notification.
Imports of these tyres increased to 52,092 tonnes in July 2014 - June 2015 from 4,146 tonnes in 2012-13.
The DGAD has noted that imports of the product "increased significantly" in absolute terms throughout the injury period.
Share of China in total imports of the product in India increased sharply to 81.52 per cent during July 2014 - June 2015 from 16.03 per cent in 2012-13.
"...There has been a significant increase in dumped imports, both in absolute terms and in relation to production and consumption in India. Imports are undercutting the domestic prices to a significant degree," it added.
Countries impose anti-dumping duties to guard domestic industry from surge in below-cost imports.
India has imposed similar duties on import of several other products, including steel, fabrics and chemicals from different countries, including China.
Anti-dumping steps are taken to ensure fair trade and provide a level-playing field to the domestic industry.
They are not a measure to restrict import or cause an unjustified increase in cost of products.