The Directorate General of Trade Remedies (DGTR), an investigative body under the commerce ministry, has launched an inquiry into the necessity of extending the anti-dumping duty on aluminium alloy wheels imported from China. This move comes in response to grievances raised by the domestic industry.

Companies such as Kosei Minda Aluminium Company, Maxion Wheels Aluminium India, Minda Kosei Aluminium Wheel, and Steel Strips Wheels have jointly submitted an application representing the domestic industry. Their request calls for a sunset review investigation, aiming to continue the imposition of anti-dumping duties on imports of 'aluminium alloy road wheels' from China.

DGTR, in an official notification, stated that the applicants have provided initial evidence indicating the dumping of these products from China, despite the existing anti-dumping duties in place. The notification states, "The authority hereby initiates sunset review investigation to examine whether the expiry of existing anti-dumping duties against China is likely to lead to continuation or recurrence of dumping and consequent injury to the domestic industry."

Typically, anti-dumping duties are enforced on a product for five years, unless the government decides otherwise. DGTR holds the authority to assess the need for continued imposition of the duty before the end of this five-year period. The duty on these aluminium alloy wheels was initially imposed in May 2015 and was subsequently extended in 2019 and 2022. The current duties are set to expire on April 8, 2024.

The primary purpose of these duties is to ensure equitable trade practices, establishing a level playing field for domestic producers in comparison to their foreign counterparts.

In a separate notification, DGTR has also recommended imposing a similar duty on imports of "Viscose rayon filament yarn" from China for duration of five years. This recommendation follows an investigation initiated by the directorate, prompted by a complaint filed by the Association of Man-Made Fibre Industry and Crasim Industries.

Source: Business Standard