India Restricting the Importation of Truck/Bus Radials

Imported bus and truck radial tyres have been categorised as a restricted item by India’s Director General of Foreign Trade (DGFT). News of this action was given in a DGFT notification dated November 24, 2008. Items restricted by the DGFT generally can only be imported into India via the obtaining of an appropriate license.

This measure was taken to curb the ballooning level of imported radials arriving from China and other locations, and local manufacturers appear eager to see this restriction extended; director general of India’s Automotive Tyre Manufacturers Association (ATMA) Rajiv Budhraja told the Economic Times newspaper that the organisation will be approaching the government to request the placing of bias truck and radial tyres and passenger car tyres onto the restricted list.

Truck and bus tyres account for 65 per cent of industry turnover in India. According to the Directorate-General of Commercial Intelligence and Statistics, in 2007/08, some 90 per cent of all bus and truck tyre imports into the country originated in China. The majority of these imports are illegal, stated Mr. Budhraja, who elaborated that many importers are falsely declaring the nature of their products to evade the payment of taxes. The Economic Times also reports that the local industry is concerned radial tyres will be falsely imported as bias tyres, thereby circumventing the restriction.

Mr. Budhraja added that a substantial percentage of imported passenger car tyres, particularly from China, are being dumped into India’s market at low prices. “Such imports result in long-term and irreversible damage to tyre companies and can be checked by inclusion of passenger car tyres in the restricted list,” he said.