New Delhi: The commerce ministry's investigation arm DGTR has recommended for continuation of anti-dumping duty on Chinese steel wheels for five more years with a view to guarding domestic players against cheap imports. In a notification, the Directorate General of Trade Remedies (DGTR) has said that continuation of the existing duties on the imports of Flat Base Steel Wheels from China would address and mitigate the likelihood of injury to the domestic players.
"The authority considers it necessary to recommend the continued imposition of existing definitive anti-dumping for another period of five years...," the DGTR has said. The directorate has recommended USD 613 per tonne duty on the product. The finance ministry takes the final decision to impose this duty. The product is used in tubed tyre applications in commercial vehicles.
In its probe, the DGTR has concluded that there is likelihood of continuation/recurrence of dumping and injury to the domestic industry if the existing duties are not continued. Wheels India Ltd (Wheels India) and Steel Strips Wheels Ltd (Steel Strips) in their application to the DGTR had alleged likelihood of continuation or recurrence of the dumping and had requested for initiating sunset review investigation for continuation of antidumping duties in force. The revenue department had imposed the duty on September 13, 2018, for five years.
In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping impacts price of that product in the importing country, hitting margins and profits of manufacturing firms.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India. In its probe, the directorate has to conclude whether the imported products are impacting domestic industries.