China, South Korea dumping tyres in Indian markets: ATMA

MUMBAI (Commodity Online) : Automotive Tyre Manufacturers Association (ATMA) of India has pointed out dumping of tyres in the Indian market by China and South Korea.
It is estimated that Chinese and South Korean rubber imports account for 70% of India’s tyre imports with various bilateral agreements nullifying the import duty of 10% and coming over with a basic customs duty tag of 8.6%, reported Financial Express.
With respect to imports of truck and bus tyres for 2009-10, the rate of imports has gone up by 35% for 2010-11, when calculated on annualized basis. Import of passenger car tyres has gone up by 40% for the same period.
Also, the industry has asked for duty-free imports of 2 lakh tons of natural rubber which is a projected deficit for 2011-12. As the Union Budget approaches, the association has also demanded duty-free imports of almost all raw materials like butyl rubber, styrene butadiene rubber (SBR), ethylene propylene non-conjugated diene rubber (EPDM), PBR, steel tyre cord, polyester tyre cord, nylon tyre cord and rubber chemicals.
In fact, cost of raw material is responsible for 70% of the production cost and about 62% of tyre industry turnover.

(Source: http://www.commodityonline.com/news/China-South-Korea-dumping-tyres-in-Indian-markets-ATMA-36761-3-1.html)