The center is likely to put all tire imports into a restricted category

Chennai: The government is considering a proposal to place all tire imports in the restricted category, from the current free category.

A March 17 communication from the DGFT said that the trade union ministry has initiated contributions from various industry associations and stakeholders to ensure that tire imports move to the restricted category. Tire companies have been pushing for import restrictions to control the influx of Chinese imports, particularly in the secondary market.

The CIM has wished to see a restriction on the importation of tires from the free to restricted category, said the letter from the deputy director general for foreign trade to the secretary DPIIT. India imports $ 25 million in automobiles, motorcycles, buses, and industrial/construction machines and vehicles. In the letter, the DGFT asks DPIIT to 'examine the matter', including the sectors where a restriction should be imposed, seeking input from the heavy industry department such as user industry and DOR, and to quickly make recommendations for DGFT can proceed with the matter.

China's tire imports in the April-January period grew 20% to 3.2 million units in fiscal year 20.

Currently, the DGFT does not have any information/representation of the national industry, the letter said. It also has no DPIIT proposal/comment so far. In order to make an informed decision, it is pertinent to know the objective position, including the national capacity of different types of tires and the level of impact that the national industry is suffering due to imports, the letter said.