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  Business   In Other News  27 Jun 2019  No duty gains to tyre firms

No duty gains to tyre firms

THE ASIAN AGE. | RITWIK MUKHERJEE
Published : Jun 27, 2019, 1:44 am IST
Updated : Jun 27, 2019, 1:44 am IST

Now experts at ICRA felt that this duty imposition will not have significant impact on tyre demand for domestic tyre manufacturers.

This is because domestic TBR demand is currently not met by Chinese tyre imports, as was the case in the past.
 This is because domestic TBR demand is currently not met by Chinese tyre imports, as was the case in the past.

Kolkata: The recent imposition of countervailing duty (CVD) on import of new Chinese Truck and Bus radial (TBR, including tubeless) may not yield any significant dividend for Indian tyre makers, simply because domestic TBR demand is currently not met by Chinese imports, feel experts. Interestingly, the Centre on June 24, imposed CVD on import of new Chinese TBR for a period of five years with effect from June 24.

CVD in the range of 9.12 per cent - 17.57 per cent is levied on imported TBR tyres originating from China and exported through any country (including China), and TBR tyres exported from China irrespective of the place of origin. In September 2017, the Centre had re-imposed anti-dumping duty (ADD) on import of Chinese TBR tyres for five years, ranging between $245.35 and $452.33 per tonne (or) 9-15 per cent.

 

Now experts at ICRA felt that this duty imposition will not have significant impact on tyre demand for domestic tyre manufacturers. This is because domestic TBR demand is currently not met by Chinese tyre imports, as was the case in the past. Also, the existing ADD will be deducted from the currently imposed CVD to arrive at the final duty. Only if the CVD is more than the ADD in force, the differential will be collected as CVD.

Tags: icra, chinese tbr