Govt may free truck, bus radial imports for OEMs .

New Delhi, April 8 The Government may allow truck and bus makers to freely import radial tyres, which are currently on the ‘restricted list'.

In November 2008, all truck/bus radial tyre imports were put on the restricted list as a measure to protect the domestic tyre industry against alleged ‘dumping' from China. Goods on the ‘restricted list' are importable only against a licence from the Commerce Ministry. More recently, on February 19, an anti-dumping duty on imports from China and Thailand was imposed.

According to industry sources, a meeting was called by the Department of Industrial Policy and Promotion in the Ministry on Thursday to discuss the anti-dumping duty on radial truck and bus tyres, besides restrictions on their imports. The inclusion of tyres in the Negative List under the proposed free trade agreement with Malaysia was also on the agenda.

Anti-dumping duty

At the meeting, user industries sought lifting of the anti-dumping duty and the removal of tyres from the restricted list. The Automotive Tyre Manufacturers' Association (ATMA), however, pushed for these to remain, while agreeing to some relaxations given to Original Equipment Manufacturers (OEMs), sources told Business Line.

They added that the officials at the meeting were “fairly responsive” on the freeing up of imports for OEMs, though no commitments were made. “The Ministry has asked all parties to give written submissions by Monday,” they said.

ATMA officials said, “The duties had been levied after thorough investigation by the Government. We see no reasons for another review. We're in favour of hassle-free licence agreements for OEMs, but not freeing imports for trade purposes.”

Tyre Shortage

A shortage of tyres in the commercial vehicle industry since January has led to a drop in production by 10-20 per cent for Ashok Leyland and Tata Motors. To cover up the shortfall OEMs such as Ashok Leyland have been looking to import, but getting a licence from the Government has proved elusive.

“Ashok Leyland had applied for a licence to import radial tyres in November last year. Out of the 20,000 unit import request, the Government has granted approval for only 5,000 units. However, it has still not given the licence,” sources said.

Source : Business Line