Kochi:Lower import duty on tires leads to increased shipments. Automotive Tire Manufacturers Association (ATMA) He said this poses a threat to the domestic tire industry. The tire industry has ample capacity and has recently invested Rs. 2,600 crore in greenfield projects and expansions to accommodate the growing capacity of the automobile industry.

Imported tires account for about 20% of the domestic truck lunch tire market, ATMA said. New capacity for these tires has come up, calling for an increase in import duty on tires to make them comparable to natural rubber.

More than 60% of tires are imported from China at an average unit price of $106, which is lower than raw material prices, ATMA quoted International Trade Advisory Services as saying.

In its pre-budget submission, ATMA said that under various trade agreements, import tariffs are 20% for natural rubber and 5% or even zero for tires.

Dr. Raghupatiapatiitipatipa Singhania, ATMA, said, “For the successful implementation of the Make in India program, it is very important that the tariffs levied on imports of finished products are at least higher than those levied on raw materials.”

Tires can be imported into India at preferential tariffs, but there is no corresponding preferential tariff for natural rubber as it falls under the negative list of most trade agreements. The ATMA has demanded that the tariff on tires be increased from 10 percent to 20 percent of the basic rate and that imports of tires be put on the negative list of trade agreements and all rubber on the negative list.

Raw materials whose domestic production is not sufficient for domestic consumption should have their tariffs reduced as imports are unavoidable to meet the needs of the domestic industry, ATMA said. This includes raw materials such as nylon cord fabric, rubber additives, steel cord, polyester cord, polybutadiene rubber, etc.