Govt starts probe into dumping of Chinese auto part

New Delhi: Government has initiated a probe into alleged dumping of an automobile component - Axle for Trailers - by China in the domestic market.

The move is aimed at protecting domestic players in the automobile sector against cheap imports.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), an arm of the Commerce Ministry, has begun investigations into the matter.

In a notification, the DGAD has said it has found a sufficient prima facie evidence of dumping of the product from China. "...the authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry...to determine the existence, degree and effect of alleged dumping and to recommend the amount of antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry," it said.

The period of investigation is from April 2014 to June 2015 (15 months).

After the probe, DGAD, if needed, will recommend an anti-dumping duty and the Finance Ministry will impose it.

York Transport Equipment (India) has filed the application before the DGAD alleging dumping of the product on behalf of the domestic industry.

An 'Axle for Trailer' is essentially an assemblage of a beam/bar and other components such as brake drum, brake shoes, bearings which connect two wheels of a trailer and renders the functions as axle for the trailer.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap import of any product.

As a counter measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.