The Directorate General of Trade Remedies (DGTR) has recommended anti-dumping duty of up to 82% on imports of ‘wheel loader’, a common use machinery in infrastructure and mining sectors, from China.
The recommendation came after a year-long investigation into the complaints of injury by domestic manufacturers. The complaint was led by JCB India, which is a subsidiary of J C Bamford Excavators of UK.
Imports are coming at prices below the domestic sales price injuring domestic industry, the order of the DGTR read.
The investigation found price undercutting of 40-50% which has resulted in negative growth in the industry on all parameters, it added.
The anti-dumping duty, when notified by the Department of Revenue, will be imposed on ‘wheel loaders’ of less than 7000 kg capacity and even on imports of semi knocked down kits. Completely knocked down kits have been excluded from the duties as this could end up anti-dumping duties being imposed on parts too.
Chinese exporters that were included in the investigation include local arms of Volva, Caterpillar, Liebherr and a few other Chinese manufacturers.
The duties recommended by DGTR would vary from company to company. The order of the DGTR mentions the companies by name. While US-based Caterpillar’s exports from China to India would be subject to 18.84% duty. Imports by one of Volvo’s India subsidiaries from China’s Shandong Lingong Construction Company will attract the duty of 34.74%. On other exporters from China duties are higher.
Domestic industry produces loaders of up to 5583 kg capacity. Wheel loaders are used in mining, shipping, construction and whenever earth and other material has to be moved and loaded.
Apart from JCB, L&T Construction & Mining Machinery, Tata Hitachi, Eimco Elecon (India) , and BEML Ltd are other domestic manufacturers of wheel loaders.