The Central Board of Indirect Taxes and Customs (CBIC) has recently taken a significant step in safeguarding the interests of the domestic industry by imposing anti-dumping duty on aluminium road wheels imported from China. This move comes as a response to concerns regarding unfair trade practices that were negatively impacting the domestic market.
Background and Initiation of Review
The decision to impose anti-dumping duty stems from a thorough review initiated by the designated authority. Through notification number 7/13/2023-DGTR dated 30th September, 2023, published in the Gazette of India, Extraordinary, the review was conducted under sub-section (5) of section 9A of the Customs Tariff Act, 1975, and rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.
This review specifically focused on the continuation of anti-dumping duty on imports of “Cast Aluminium Alloy Wheels or Alloy Road Wheels (ARW) used in Motor Vehicles, whether or not attached with their accessories, of a size in diameters ranging from 12 inches to 24 inches” (subject goods) falling under sub-heading 8708 70 of the First Schedule to the Customs Tariff Act, originating from China PR.
Findings and Conclusions
Following meticulous assessment, the designated authority, in its final findings published via notification number 7/13/2023-DGTR dated 6th January, 2024, reached several conclusions:
- The subject goods continued to be exported to India at prices below the normal value, indicating dumping practices.
- Dumped imports from China were causing injury to the domestic industry.
- There existed a likelihood of continuation of dumping and consequent injury to the Indian industry if the existing anti-dumping duties were discontinued.
Imposition of Anti-Dumping Duty
Based on these findings, the designated authority recommended the continuation of anti-dumping duty on imports of the subject goods to mitigate injury to the domestic industry. Consequently, exercising powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975, read with rules 18, 20, and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government has imposed an anti-dumping duty on the subject goods.
Applicability and Duration of Duty
This duty is applicable to goods falling under specified sub-headings, originating from and exported by producers as specified in the corresponding entries of the Table, at rates indicated therein. The anti-dumping duty prescribed in this notification will remain in effect for a period of five years, unless revoked, superseded, or amended earlier, starting from the date of publication in the Official Gazette. It’s important to note that payment of this duty shall be made in Indian currency, as stipulated by the regulations.
The imposition of anti-dumping duty on aluminium road wheels imported from China highlights the commitment of regulatory authorities to foster fair trade practices and protect the interests of the domestic industry. This measure not only addresses the immediate challenges posed by dumping but also aims to create a level playing field for all stakeholders involved in the import and manufacturing of such goods.