Anti-dumping duty on synthetic rubber coming soon – Industry News

The Directorate General of Commercial Remedies (DGTR), at the request of Reliance Sibur Elastomers, has recommended the imposition of a provisional anti-dumping duty on imports of isobutylene-isoprene rubber (IIR) or butyl rubber from China, Saudi Arabia, Russia, Singapore and the US. (RSEPL), the sole manufacturer of the product in India.

The proposed duties on imports of intellectual property rights from the five countries that caused injury to the Indian producer range from $319 to $647 per tonne, depending on the country the product comes from. The highest duty is levied on butyl rubber imported from Saudi Arabia, while the lowest is on the product from China. The DGTR investigation found that the injury margin due to dumping is 15 to 60%, which is significant and hurts the domestic industry.

It is expected that the Central Board for Indirect Taxes and Customs will soon provide information about the levies.

IIR is obtained from the cracking of petroleum refineries and is used in the production of tires, seals, vibration control equipment, waterproofing materials and industrial rubber products. It is also used in membranes, gaskets, wire and cable insulation, liners, O-rings, seals, weather stripping and bottle closures.

DGTR had initiated an investigation into the complaint of dumping of the product from these countries in June 2023 at the request of RESPL, which is majority owned by Reliance Industries Ltd (RIL).

The investigation sought responses from exporters and importers of the product and from the main user industry: the tire manufacturers such as Ceat and MRF and Automotive Tire Manufacturers Association (ATMA).

The RIL group company had started commercial production of IIR in March 2022 and in its submissions before the investigating authority, argued that the price of the synthetic rubber is lower than the selling price of the domestic industry, forcing it to incur losses.

It says lower prices of imported products are forcing it to keep prices low, operate production facilities below capacity and sometimes even close factories. The country has also been forced to sell its production abroad at a loss due to price pressure on the local market. The claims were accepted by the DGTR points and a provisional anti-dumping duty was recommended.

The import of the product in 2021-2022 was 29808 tonnes and RSEPL has also said that its production capacity can meet local demand.

The notice about the tax is issued by the Ministry of Finance of the Ministry of Finance. In the meantime, the DGTR has sought public comment on its findings and held a public hearing before issuing its final findings.