Government to Impose Countervailing duty on Chinese Tyres

by Editor News

The Automotive Tyre Manufacturers’ Association had filed a petition on behalf of domestic manufacturers to impose a duty on Chinese Tyres and imports from other nations as well.


The Commerce Ministry has suggested that there should be an imposition of a countervailing duty on Chinese tyres that are imported for buses and lorries. This step has been taken by the Government to prevent local players from importing products that are subsidised by the neighbouring nation. The ministry’s Directorate General of Trade Remedies (DGTR) stated that that imposing countervailing duty is required to counterbalance subsidisation.

In a notification, the DGTR said, “The authority considers it necessary to recommend imposition of a definitive countervailing duty on the imports of the subject goods (New Pneumatic Tyres for Buses and Lorries) from China.”

It said since the item as of now draws anti-dumping duty from China, the amount of countervailing duty to be forced will be calculated as the difference between the quantum of indicated countervailing and anti-dumping duty payable. The finance ministry will finally decide whether to impose duty or not.

The Automotive Tyre Manufacturers’ Association had filed a petition on behalf of domestic manufacturers to impose a duty on Chinese Tyres and imports from other nations as well. The Directorate started probing after looking at the complaints from ATMA. The DGTR said the domestic industry has complained that China is giving subsidies to the makers and exporters of these tires.

As per the request of the Automotive Tyre Manufacturers’ Association, China is giving subsidies under various types of programmes that include tax incentives, grants, equity support, preferential lending, export financing and export credit.

Imports of these tires from China expanded to 81,896 ton in 2016-17 from 30,665 ton in 2014-15.

To fight against wrong trade subsidies provided by exporting nations like China, these duties will prove to be effective. Countervailing duty is a nation explicit duty which will help to protect the domestic business.

India has officially forced countervailing duty as well as anti-dumping duties on different sorts of items from China, with which India has a big trade deficiency.

The deficit in trade with China expanded to USD 63.12 billion of every 2017-18 from USD 51.11 billion out of 2016-17.



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