In a boost to the domestic tyre industry, the government has imposed a countervailing duty (CVD) on large radial tyres imported from China, for a period of five years, according to a notification.

The notification said in the case of radial tyres used in buses and lorries/trucks imported from China, the designated authority “has come to the conclusion that imposition of definitive countervailing duty is required to offset subsidisation and injury and has recommended the imposition of definitive countervailing duty on the imports of the subject goods from China PR”.

“The countervailing duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the official gazette and shall be payable in Indian currency,” the notification added.

The CVD ranges from 9.55-17.57% of the value of the tyres, including costs, insurance and freight.

The countervailing duty follows the imposition of an anti-dumping duty on cast aluminium alloy wheels or alloy road wheels (ARW), used in motor vehicles, ranging from 12 inches to 24 inches in size and originating from China, South Korea, or Thailand.