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MOTORINDIA
l
May 2012
AITDF plea against anti-dumping
duty on tyres
The All India Tyre Dealers’
Federation (AITDF) has ap-
pealed 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 exploit-
ing the domestic consumers. Un-
fortunately, 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has not withdrawn the notification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 in-
discriminate 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 control-
ling 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 with-
drawal of the relevant customs noti-
fication 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 em-
boldened the domestic tyre majors
to post hefty price hikes despite a
steep drop in prices of natural rub-
ber. 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 is-
sue necessary directions to the De-
partment of Revenue, Ministry of
Finance, to withdraw the notifica-
tion.
The latest notification extend-
ing anti-dumping duty on import of
non-radial truck/bus tyres should be
suspended as the five years of im-
position of anti-dumping duty has
outlived its requirement. High tyre
prices are leading to increase in the
truck freight cost, adding to infla-
tionary pressures.
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tyres