The All India Tyre Dealers’ Federation (AITDF) has appealed to the Government to discontinue the levy of anti-dumping margin on import of non-radial truck/bus tyres as the import has in no way been causing any material loss to the domestic tyre industry.
In a press release, AITDF has said the Customs, Excise & Service Tax Appellate Tribunal on August 2, 2011, set aside the levy of anti-dumping duty on import of truck/bus radial tyres from China and Thailand by citing that their import in no way was causing any material injury to the domestic industry, and instead its levy was unduly exploiting the domestic consumers. Unfortunately, despite repeated pleas to the Ministry, the Government has not withdrawn the notification No.12/2010 on anti-dumping duty imposed on import of radial truck/bus tyres. No doubt, the domestic tyre industry again has been unduly favoured at the expense of the road transport industry and tyre dealers. Hence, taking advantage of this, tyre majors have been announcing indiscriminate and unwarranted price hikes during the past several years.
This is nothing but a clear-cut case of double standards being adopted by the Anti-Dumping Authority in favouring big corporates controlling the domestic tyre industry and punishing the hapless 5.6 million bus and truck operators and stifling the competitive strength of 12,000 domestic tyre dealers in the country.
The press note further states that the earlier representations for withdrawal of the relevant customs notification to facilitate imports without anti-dumping duty have all along been ignored.
The lack of action on the part of the Department of Revenue has emboldened the domestic tyre majors to post hefty price hikes despite a steep drop in prices of natural rubber. The domestic tyre trade and road transport industry have been exposed to arbitrary hike in prices of truck/bus radial tyres and are deprived of superior quality truck/bus radials which could be imported from China and Thailand.
AITDF has once again requested the Government to intervene and issue necessary directions to the Department of Revenue, Ministry of Finance, to withdraw the notification.
The latest notification extending anti-dumping duty on import of non-radial truck/bus tyres should be suspended as the five years of imposition of anti-dumping duty has outlived its requirement. High tyre prices are leading to increase in the truck freight cost, adding to inflationary pressures.