Dumping duty mooted on CV parts from China

The Commerce Ministry has recommended imposition of preliminary anti-dumping duty on imported 'Front axle beam and steering knuckles (also known as axle arm or stub axle) meant for heavy and medium commercial vehicles' from China.

Following a petition filed by Bharat Forge Ltd, Pune, on behalf of the domestic industry, the Designated Authority in the anti-dumping cell said FAB is a safety critical item as it carries the load of the vehicle and also keeps the steering in place.

FAB is used in medium and heavy commercial vehicles to carry the front weight of the vehicle, the horizontal and vertical loads on bumpy roads and to act as a cushion through spring leaves for a comfortable ride. Steering knuckles are a very critical component, as it controls the steering of the vehicle.

Any breakage or damage of steering knuckles would affect the steering of the vehicle, leading to loss of control that might cause an accident.

Probe restricted to imports

While admitting the subject goods for probe, the Authority clarified that the ambit and scope of its investigation is restricted to imports of 'front axle beam and steering knuckles meant for heavy and medium commercial vehicles' originating in or exported from China only and the entire axle assembly is not a part of the scope of investigation.

Investigation was carried out beginning from April 1, 2008 to September 30, 2008 and the injury analysis, however, covered the fiscal years 2005-06, 2006-07, and 2007-08 and the period of probe of six months of the first half of the last fiscal.

The Authority held that various parameters pertaining to domestic industry collectively and cumulatively establish that the domestic industry has suffered material injury.

Stating that figures available from the Society of Indian Automobile Manufacturers (SIAM) confirmed a decline in the country's commercial vehicle production during the period under investigation, the Authority has found that within the available demand, "the domestic industry has lost its market share, thus establishing that the sales volumes of the domestic industry have declined because of dumping and decline in demand."

In its finding, the Authority said since the applicant is a multi-product company with significant domestic and export markets and since the dumping commenced only recently, employment and wages of the domestic industry have not been impacted so far. But, the productivity has plummeted in line with the decline in production. Hence, it has recommended a provisional anti-dumping duty of $0.50 a kg on the Chinese firm Hubei Tri-ring Auto Axle Co Ltd and any other Chinese exporter of front axle beam for medium and heavy commercial vehicle from China.

In the case of steering knuckles, the recommended anti-dumping duty on the Chinese firm Hubei Tri-ring Forging Co Ltd is $0.63 a kg, while any other exporter from China of the axle arm or stub axle is to fork out an anti-dumping duty of $0.69 a kg.

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