Antidumping duty likely on Chinese, Korean, Thai alloy wheels.

NEW DELHI: Government is likely to impose anti-dumping duty on a certain type of aluminium alloy auto wheels imported from China, Thailand and Korea, to protect domestic players from below-cost imports.

In its preliminary findings, the Directorate General of Anti-dumping and Allied Duties (DGAD) has recommended imposition of duty ranging between USD 1.18 and USD 2.15 per kg on imports of cast aluminium alloy wheels from the three countries, the Commerce Ministry said in a notification.

It further said the import duty has been suggested for alloy wheels of diameters ranging from 12 inches to 24 inches.

The restrictive duty is recommended by the Commerce Ministry, while the Finance Ministry imposes it.

The Directorate's recommendation comes on the basis of its findings that the product has been exported to India from these countries "below its normal value, thus resulting in dumping of the product".

"...imposition of anti-dumping measures would remove the unfair advantages gained by dumping practices, would prevent the decline of the domestic industry and help maintain availability of wider choice to the consumers of the goods," it added.

However, it said that the imposition of the duties might affect the price levels of the products manufactured using cast aluminium alloy wheels.

The DGAD, which is under the Commerce Ministry, has initiated the investigations in December 2012. The period of investigation for the purpose was from July 2011 to June 2012.

"Authority considers it necessary and recommends imposition of provisional anti-dumping duty," it said.

Import of the wheels from China, Korea and Thailand increased to 12,497 tonnes (during July 2011 to June 2012) from 3,066 tonnes in 2009-10. The imports stood at 4,719 tonnes in 2010-11 and 12,039 tonnes in 2011-12.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below- cost imports.

As a counter-measure, they impose duties under the multilateral WTO regime.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Source : economictimes.indiatimes.com