TRA recommends increasing duties on bus and lorry tyres
The Trade Remedies Authority (TRA) has today (27 August 2024) published its initial findings on two transition reviews into anti-dumping and countervailing measures on lorry and bus tyres imported from China. In its initial findings, the TRA has recommended raising the duties paid by the majority of Chinese tyre exporters in order to protect the UK’s tyre retreading industry, which competes with imported new tyres from injury.
According to the British Tyre Manufacturers’ Association, the UK’s retreading industry is estimated to contribute around £230 million to the UK economy each year and supports 5,500 UK jobs.
The TRA has assessed evidence that historically, many of the tyres imported into the UK from China have been lower quality, “single-use” tyres which are less likely to be retreadable. If the measures were removed, it is likely that imports of these lower quality tyres would increase and cause injury to UK industry. This would also be detrimental to the environment as fewer of these tyres would be recycled through the retreading process.
Based on evidence provided, the TRA has recommended that the new combined anti-dumping and countervailing duty rates range from £10.03 per tyre to £110.11 per tyre.
The Hankook Group, which participated in the transition review, would pay £10.03 per tyre in duties, while those exporters that did not cooperate would pay the residual rate of £110.11 per tyre.
Businesses that may be affected by these reviews are invited to comment on the TRA’s initial findings via the TRA’s online case platform by 17 September 2024.
You can follow all new case developments on the TRA’s public file.
Notes to editors:
• The tyres investigated during these reviews are pneumatic rubber tyres, new or retreaded, and used for buses or lorries, with a load index exceeding 121.
• The Trade Remedies Authority is the independent UK body that investigates whether new trade remedy measures are needed to counter unfair trading practices and unforeseen surges of imports.
• The TRA is an arm’s length body of the Department for Business and Trade.
• Trade remedy investigations were carried out by the EU Commission on the UK’s behalf until the UK left the EU. EU trade remedy measures of interest to UK producers were carried across into UK law when the UK left the EU and the TRA is currently reviewing each one to assess whether it is suitable for UK needs.
• Anti-dumping duties allow a country or union to act against goods which are being sold at less than their normal value – this is defined as the price for ‘like goods’ sold in the exporter’s home market.
• Countervailing, or subsidy duties, counteract imports being subsidised by their place of origin that cause material injury to a domestic industry.
Kaynak: Evrim
