In a significant move that will benefit hundreds of domestic producers of rubber goods, including tyres, the Finance Ministry has decided not to impose anti-dumping duty on imports of carbon black (used in rubber applications) from China and Russia.
The move is expected to bring down the cost of imports of carbon black for tyre makers and small and medium-sized rubber goods manufacturers, while reducing the protection levels for domestic makers of carbon black such as Philips Carbon, Birla Carbon and Himadri Speciality, industry sources said. It remains to be seen if consumers will benefit as much would depend on the rubber good producers passing it on to the customers, they added.
By this decision, the Revenue Department has turned down the recommendation of the Designated Authority in Commerce Ministry (Directorate General of Trade Remedies), which had, on December 22 last year, recommended the continuation of anti-dumping duty on this product for the next five years. The recommendation was made under the final findings of the Sunset Review investigations. For carbon black imports from China, the recommended anti-dumping duty was $494 per tonne. In the case of carbon black imports from Russia, the recommended anti-dumping duty was $36.17 per tonne.
The validity of the earlier imposed anti-dumping duty expired on December 31.
Carbon black is an important raw material used as a reinforcing filler in the manufacture of tyres and other rubber products. In plastics, paints and inks, carbon black is used as a colour pigment.
The sunset review investigation did not cover carbon black used in non-rubber applications such as inks in copiers and computer printer cartridges, paints, crayons and polishes.
‘Right move’
Reacting to the move, Vikram Makkar, President - All India Rubber Industries Association (AIRIA), said removal of the anti-dumping duty on carbon black is a step in the right direction. The non-tyre rubber industry is highly vulnerable to supply disruptions and a fair pricing of these essential raw materials is key to the growth of the industry. “This move stands in favour of the domestic players as far as the Indian rubber goods industry is concerned,” Makkar said.
Rohit Kr. Singh, Director-General, AlRIA, said: “At a time when there is shortage of carbon black supply for the non-tyre rubber product manufacturing industry, the omission (non-continuation) of anti-dumping duty on the imports of ‘carbon black’ used in rubber applications by the Government comes as a major relief for the MSMEs and the sector at large”.