NEW DELHI: Concerned over surge in imports particularly from China, India has slapped anti-dumping duty on several stainless steel products and radial tyres.
The anti-dumping duty is a WTO compatible remedy available to protect domestic industry against cheap imports. The Central Board of Excise and Customs has imposed anti-dumping duty of up to $2254.7 per tonne on steel products — used mainly for making durables like refrigerators and also in automobile and kitchenware industries. The tyre makers seemed pleased with the dumping duty of up to $99 per a set of bus and truck radial tyres (including tubeless) from China and Thailand, while the vehicles makers opposed the move saying it is "detrimental to the industry that is trying to come out of recession".
The CBEC in a notification said imports, which caused "material injury" to the domestic manufacture by way of shipping them at below "normal value" have come from China, Taiwan, the US, EU, South Korea, among others. Lianzhong Stainless Steel Corp and Shanxi Taigang Stainless Steel Co from China, South Korea's Posco, Outokumpu and AreclorMittal from Europe are main the exporters.
Reacting to the move, All-India Stainless Steel Industries Association president Vasant Kotabia said that the domestic user industry will write to the finance ministry opposing such a move as products of desired quality and speicification are not made locally. India runs a huge trade deficit with China. Its exports aggregated only $9.35 billion in 2008-09 against imports of $32.5 billion. The government is also likely to impose anti-dumping duty on anti-bacterial medicines like Penicillin variants and raw material used in producing anti-bacterial infection drugs.
Welcoming the duty on radial tyres, a JK Tyre official said "low quality and cheaper tyre import has to be controlled. This is a serious issue related to the safety and the long term interest of the industry. However, Eicher Trucks and Buses president Vinod Aggarwal said, "The anti-dumping duty on import of radial tyre will be detrimental to our industry that is trying to come out of recession.
Source : TOI