Product description – Cast aluminium Alloy Wheels or Aluminium Alloy Road Wheels (“ARW”) used in Motor Vehicles whether or not attached with accessories, of a size in diameter ranging from 12 inches to 24 inches. ARW meant for two-wheelers are excluded from the scope of the product under consideration.

HS Codes – 8708 70.

Country Involved – China.

Applicants – Kosei Minda Aluminium Company Private Limited, Maxion Wheels Aluminium India Private Limited, Minda Kosei Aluminium Wheel Private Limited and Steel Strips Wheels Limited.

Date of Initiation – 30^th September 2023

Period of investigation – 1^st April 2022 to 31^st March 2023.

Injury Period – 2019-20, 2020-21, 2021-22 and 2022-23.

Past investigations involving the product –

1. Anti-dumping duty on imports of ARW from China, South Korea and Thailand were recommended vide Notification No. 14/7/2012-DGAD, dated 9^th September 2014. These were levied by the Ministry of Finance vide Customs Notification No.21/2015- Customs (ADD) dated 22^nd May 2015.
2. The duties were continued vide Notification No.17/2019 – Customs (ADD) dated 9^th April 2019, based on the recommendations made pursuant to first sunset review vide notification no. 7/31/2018-DGTR dated 29^th March 2019.
3. The Authority initiated a mid-term review of the anti-dumping duty and pursuantly recommended enhancement of anti-dumping duty levied on certain exporters vide notification No.7/12/2021-DGTR dated 30^th  August 2022. The same was implemented vide Customs notification No.30/2022- Customs (ADD) dated 28^th November 2022.

Key Findings –

1. The scope of product under consideration includes ARW supplied to OEMs and after-market. The imports have majorly been made in the aftermarket requiring adjustments to packing cost in order to enable fair comparison between goods sold in the after-market and to the OEMs.
2. The demand for the subject goods has increased in India which is largely being catered to by the Indian industry.
3. The Indian industry has benefitted due to fair competition in India as it is catering to almost entirety of the demand in India and has recently started exporting the subject goods to other countries.
4. The volume of imports in India has declined and was limited due to the anti-dumping duty in force.
5. Dumping has continued in India and the dumping margin is positive.
6. Even though the duty was in force, subject imports were undercutting the prices of the domestic industry and were priced below the cost of sales of the domestic industry.
7. The imports were primarily in the Aftermarket segment which entails a higher cost of production. In case of cessation of anti-dumping duty and imports by the OEMs, the landed price is likely to be lower which will lead to a higher price undercutting, cost undercutting and dumping margin.
8. There is likelihood of dumping and consequent injury in the event of cessation of the anti-dumping duty which is evident from the fact that there is continued dumping in India, the producers in the subject country have surplus underutilised capacities, exports from the subject country are at dumped and injurious prices to other countries and India is a price attractive market.
9. The cost of production in the subject country is lower due to distortion of raw material prices. Aluminium prices are controlled by the government and the raw material is available to the producers of the subject goods at prices below the price prevailing globally.
10. The continuation of duty would be in public interest, since the demand has increased in India and none of the users have participated to oppose continuation of anti-dumping duty, the impact of continuation of duty will be only 0.27% of the cost of mid-ranged cars, there is enough inter se competition in India to maintain fair prices, the producers of the subject goods have passed on the price reduction to the downstream industry and there are sufficient capacity in the county to cater to domestic demand.