New Delhi, In a ruling in favour of the domestic tyre companies, the Commerce Ministry has put imports of radial bus and truck tyres under ? restricted list?. This would compel tyre dealers who are importing radial tyres for commercial vehicles to obtain a licence from the Government unlike earlier when they were allowed to import freely.
The Government?s decision hopes to give respite to tyre companies, which were wrestling with increasing imports at a time when the domestic demand was also slowing down.
Imports high
According to estimates from the Automobile Tyre Manufacturers Association, tyre imports in the first half of the fiscal surpassed last year?s annual figures.
During April-September, radial tyre imports touched 15.31 lakh units compared with 13.28 lakh units in the entire period of the last fiscal. Of this, 12.42 lakh units were imported from China in the first half of the year compared with 11.92 lakh units shipped in from China in the last fiscal.
Regulation
?This will regulate imports of spurious tyres as many of the tyres are being brought into the country without being paid the exact duty,? said Mr Arun Bajoria, President, JK Tyres.
Similarly, Mr Koshy Varghese, Executive Vice-President, MRF Ltd, said, ?the tyre industry had sought anti-dumping duty on truck and bus radial tyres to get a level playing field as many of these productions are under-invoiced. This was also to prevent sub-standard product from flowing in to the domestic market.?
Currently, anti-dumping duty is being imposed on Chinese bias tyres.
?With imports from radial tyres also growing in a substantial amount, the industry had sought a similar duty on such tyres as well,? added Mr Varghese.
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