CBIC extends ADD on Aluminium Road Wheels imported from China PR

Introduction: The Ministry of Finance, Department of Revenue, has announced the extension of the anti-dumping duty (ADD) on Aluminium Road Wheels imported from China PR. This move comes following a review initiated to address dumping concerns and protect domestic industries. The notification, No. 07/2024-Customs (ADD) dated March 15, 2024, outlines the rationale and implications of this decision.

Detailed Analysis: The designated authority initiated a review based on sub-section (5) of section 9A of the Customs Tariff Act, 1975, and rule 23 of the Customs Tariff (Identification, Assessment, and Collection of Anti-dumping Duty on Dumped Articles) Rules, 1995. The review focused on the continuation of ADD on imports of Cast Aluminium Alloy Wheels or Alloy Road Wheels (ARWs) used in Motor Vehicles from China PR.

The final findings indicated several key points:

1. Continuation of Dumping: The subject goods were found to be exported to India at prices below the normal value, leading to dumping.

2. Injury to Domestic Industry: Dumped imports were identified as causing injury to the domestic industry, raising concerns about its sustainability.

3. Likelihood of Continued Dumping: There is a perceived risk of ongoing dumping and subsequent injury to the Indian industry if the existing ADD is ceased at this stage.

Based on these findings, the designated authority recommended the continued imposition of ADD on imports of the subject goods from China PR to mitigate the harm to domestic industries.

The Ministry of Finance, exercising its powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975, has imposed an ADD on the specified goods originating from China PR. The duty rates vary depending on the producer and country of export, as outlined in the notification.

The ADD imposed under this notification will be effective for a period of five years, unless revoked, superseded, or amended earlier. It will be payable in Indian currency, with the applicable rate of exchange determined by the Ministry of Finance.

Conclusion: The extension of ADD on Aluminium Road Wheels from China PR reflects the government’s commitment to fair trade practices and safeguarding domestic industries. By addressing dumping concerns and providing a protective mechanism, this decision aims to create a level playing field for domestic producers while promoting sustainable economic growth. However, stakeholders should closely monitor the implementation and impact of these measures to ensure their effectiveness in fostering a conducive trade environment.

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MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 07/2024-Customs (ADD) | dated: 15th March, 2024

G.S.R. 209(E).—Whereas, the designated authority, vide notification number 7/13/2023-DGTR, dated the 30^th September, 2023, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 30^th September, 2023, had initiated the review in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), and read with rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, in the matter of continuation of anti-dumping duty on imports of “Cast Aluminium Alloy Wheels or Alloy Road Wheels (ARW) used in Motor Vehicles, whether or not attached with their accessories, of a size in diameters ranging from 12 inches to 24 inches” (hereinafter referred to as the subject goods) falling under sub-heading 8708 70 of the First Schedule to the Customs Tariff Act, originating in or exported from China PR (hereinafter referred to as the subject country), imposed vide notification of the Government of India, Ministry of Finance (Department of Revenue), number 17/2019-Customs (ADD), dated the 9^th April, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 296(E), dated the 9^th April, 2019;

And whereas, in the matter of review of anti-dumping duty on imports of the subject goods, originating in or exported from the subject country, the designated authority in its final findings, published vide notification number 7/13/2023-DGTR, dated the 6^th January, 2024, published in the Gazette of India, Extraordinary, Part-I, Section 1, dated the 6^th January, 2024, has come to the conclusion that-

(i) the subject goods continue to be exported to India at prices below the normal value, resulting into dumping of the subject goods;

(ii) dumped imports from subject country are causing injury to the domestic industry;

(iii) there is likelihood of continuation of dumping and consequent injury to the Indian industry in the event of cessation of the existing anti-dumping duties at this stage,

and has recommended continued imposition of the anti-dumping duty on imports of the subject goods, originating in or exported from the subject country, in order to remove injury to the domestic industry.

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975 read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 and in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue), number 17/2019-Customs (ADD), dated the 9^th April, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 296(E), dated the 9^th April, 2019, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under sub-heading of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the country as specified in the corresponding entry in column (4), exported from the country as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6), and imported into India, an anti-dumping duty at the rate equal to the amount as indicated in the corresponding entry in column (7), in the unit as specified in the corresponding entry in column (8) of the said Table, namely :-

TABLE

*Cast Aluminium Alloy Wheels or Aluminium Alloy Road Wheels (ARWs) used in Motor Vehicles, whether or not attached with accessories, of a size in diameter ranging from 12 inches to 24 inches. ARWs other than 12 inches to 24 inches in diameter and ARWs meant for two-wheelers are out of this product scope.

2. The anti-dumping duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.

Explanation.- For the purposes of this notification, rate of exchange applicable for the purpose of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Customs Act.

[F. No. CBIC-190354/36/2024-TRU Section-CBEC]
VIKRAM VIJAY WANERE, Under Secy.