Sunset review investigation of countervailing duty on imports of new pneumatic radial tyres for buses and lorries

Directorate General of Trade Remedies, Ministry of Commerce & Industry, Government of India with Case No.

CVD-SSR- 13/2023 has issued an initiation notification for a sunset review investigation of countervailing duty concerning imports of new pneumatic radial tyres for buses and lories.

Here are the highlights on what has been initiated, why, and who all should be concerned.

Automotive Tyres Manufacturers Association ("AIMA") has filed an application on behalf of the domestic producers namely Apollo Tyres Limited, J.K.

Tyre Industries Limited and MRF Limited (hereinafter collectively referred to as "applicants") before the Designated Authority (hereinafter referred to as the "Authority") under the provisions of the Customs Tariff Act 1975, as amended from time to time (hereinafter also referred ro as the "Act") and the customs Tariff (identification, Assessment and collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 thereof,, as amended from time to time (hereinafter also referred to as the "CVD Rules" or "Rules") for the initiation of a sunset review investigation of countervailing duties concerning imports of "new pneumatic radial tyres for buses and lorries" (hereinafter referred to as the "subject goods" or "product under consideration") originating in or exported from China PR (hereinafter referred to as the "subject country").

In terms of Section 9 (6) of the Act and Rule 24 (3) of the CVD Rules, the countervailing duties imposed shall. unless revoked earlier, cease to have effect on expiry of five years from the date of such imposition, and the Authority is required to review whether the expiry of the said countervailing duty is likely to lead to continuation or recurrence of subsidisation and injury to the domestic industry.

In accordance with the same, the Authority is required to review, on the basis of duly substantiated request made by or on behalf of the domestic industry as to whether there is a need for the continued imposition of the countervailing duty, and whether the expiry of the duty is likely to lead to continuation or recurrence of subsidisation and injury.

In terms of Article l3 of the Agreement on Subsidies and Countervailing Measures, pre initiation consultations were held with the officials of the Government of China on 15th December, 2023.

The Government of China has alleged that the evidence provided in the application regarding subsidy programs is insufficient.

The Authority notes that Article I 1.2 of the Agreement on Subsidies and Countervailing Measures provides that "the application shall contain such information as is reasonably available to the applicant".

The Authority considers that the existence ofall alleged programs, their countervailability and extent of benefit therein are required to be analysed through an investigation as per the relevant rules.

The original anti-subsidy investigation was initiated by the Authority on 27th March 2018.

The Authority recommended the imposition of definitive anti-subsidy duties on the imports ofthe subject goods from the subject countries vide final finding no' 6/8/2018-DGAD dated 25th March 2019.

The definitive measures were imposed by the Ministry of Finance vide Customs Notification No. l/2019-Customs (CVD), dated 24th June 2019.