“There is substantial increase in imports of subject goods from subject country in absolute terms as well as in relation to production and consumption in India as compared to the previous years…The Domestic Industry has suffered material injury… caused by the dumped imports,” DGTR said in a notification.
DGTR has recommended that the anti-dumping duty be levied for five years but the final call to impose it lies with the finance ministry.
The government had in June restricted the imports of tyres to prevent dumping of cheap imports into the country – a bulk of which came from China and Thailand. These included tyres for cars, motorcycles, bicycles, buses and lorries.
“The shifting of tyre into restricted category only adds licensing requirement and it is no ban on tyres. This will not impact the volume and price of imports,” domestic industry said in its submission,” domestic industry said, according to the notification.
Thailand has already raised the issue at the World Trade Organization alleging that its tyre exports to India fell 31% in July and 43% in August due to the restrictions.
“The exports of product under consideration in the month of July, August and September 2020 have been reduced to zero,” other interested parties were quoted in the notification.
As per the notification, domestic industry highlighted that the earlier trade remedies were to address dumped imports originating from China and had no relation to the dumped imports from new source -Thailand.
Domestic industry said its market share should have increased looking at antidumping duties and counter-vailing duty imposed on imports from China, but to the contrary it has declined and highlighted that China has made a huge investment for truck and bus radial tyres in Thailand.