The Commerce Ministry has launched an investigation into imports of radial tyres from Thailand to decide on imposition of anti-dumping duty on the product to discourage below-cost shipments.

The Automotive Tyre Manufacturers Association has filed an application before the directorate on behalf of the domestic industry alleging dumping of radial tyres from Thailand.

According to a notification of the Directorate general of Trade Remedies (DGTR), the association has requested for imposition of anti-dumping duties on the imports.

The commerce ministry's investigation arm DGTR has initiated anti-dumping probe on imports of "new pneumatic radial tyres of rubber for buses and lorries, with or without tubes and/or flaps" originating or exported from Thailand, the notification said.

It said that the authority has prima facie found that there is sufficient evidence of dumping of tyres from Thailand.

"The Authority therefore initiates an investigation to determine the existence, degree and effect of alleged dumping, and consequent injury to the domestic industry," it said.

If established that dumping has caused material injury to domestic industry, the directorate would recommend the amount of anti-dumping duty.

The period of investigation is April, 2018-June, 2019 (15 months). It would also look at the data of 2015-18.

Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.

As a counter measure, they impose duties under the multilateral regime of the World Trade Organization. The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.

Source: Businessinsider