US Dept. of Commerce launches Anti-Dumping investigation against India.
The US department of commerce has launched the investigations into anti- dumping of tyres from Sri Lanka, China & India in a certain category that might be harming the domestic industry in US. This will mark the first time that anti-dumping investigations have been launched into the tyres coming to the US from India, while Chinese tyres have faced a similar investigation in the past.
The US Department of Commerce said in a statement that the investigations will cover certain pneumatic OTR tyres & off-highway tyres used in places such as agricultural fields, forests, construction sites, factory & warehouse interiors, airport tarmacs, ports and harbors, mines, quarries, gravel yards & steel mills.
The investigations against China will cover only OTR tyres that are mounted to wheels or rims as Department of Commerce currently has antidumping & countervailing duties (CVD) orders on new pneumatic off-the-road tyres from China that have been in place since September 2008. Countervailing is when a foreign government provides financial subsidies to a company for the manufacturing of products and ties those subsidies to export performance.
For India & Sri Lanka, the scope of these new investigations not only covers the same scope of merchandise as the ongoing orders against China, but it also covers tyres whether or not they are mounted to wheels or rims.
Reputed International Trade Attorney Dharmendra N Choudhary stated that, “Going forward, the Indian producers & exporters of PCR tyres & light truck tyres as well as TBR tyres could likely face anti-dumping & countervailing duty investigation in USA, should they succeed in significantly increasing their market share.” He also added that, “Indian OTR tyre exporters would need to stay within 10 per cent combined anti-dumping and countervailing duty rate based on the fact that in the last concluded AD proceeding on Chinese OTR tyres, the AD duty rate on top Chinese exporters was only 11.34 per cent and the CVD rates on leading Chinese OTR tyre exporters were generally in low single digits.”
In its statement, the US Department of Commerce said if ITC determines that there is a reasonable indication that imports of certain new pneumatic off-the-road tyres from China, India &/or Sri Lanka materially injure, or threaten material injury to the domestic off road tyre industry, the investigations will continue, & the Department of Commerce will be scheduled to make its preliminary CVD determinations in April & its preliminary AD determinations in June 2016.