Government revokes anti-dumping duty on Nylon Tyre Cord Fabric
Union Government has revoked anti-dumping duty on Nylon Tyre Cord Fabric imported from China.
The Central Board of Indirect Taxes and Customs (CBIC) in a notification on Thursday said, "the Central Government revokes the anti-dumping duty imposed on "Nylon Tyre Cord Fabric (NTCF)", falling under chapter 59 of the First Schedule to the said Act, originating in or exported from People's Republic of China, and imported into India"
The duty was first imposed on such imports on June 12, 2015. CBIC did not provide any reason for discontinuing the duty. Nylon tyre cord fabric is used in tyres to give them strength and flexibility.
The Directorate General of Trade Remedies (DGTR) had in October recommended extending the duty of $520- 1100 per MT on the product for five years on grounds that there was a likelihood that the dumping will continue and hurt local industry if ceased at this time.
What is Dumping?
In the context of international trade, dumping is a kind of injuring pricing. It occurs when manufacturers export a product to another country at a price below the normal price with an injuring effect. It is generally done to increase its market share in a foreign market by driving out competition and thereby create a monopoly situation where the exporter will be able to unilaterally dictate the price and quality of the product.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.
The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and Vietnam are members of the Geneva-based organisation, which deals with global trade norms.