Chinese Tire Makers Slapped With 210% Dumping Charges
Off road tires for big trucks and various industrial/commercial vehicles are in big demand, so much so that Chinese tire manufacturers have been sending their goods to the US for quite some time now. However, with 15 million tires imported in 2006 (80% from China) the strain on domestic production has been widespread. 
In response to the increased competition, one tire manufacturer (Titan Tire) and the United Steelworkers union have filed separate court cases in a bid to seek relief.
At issue have been the prices of many Chinese tires which domestic producers contend are unfairly low and constitute dumping. Dumping is a practice where a company produces goods that are sold cheaper than they are in its home market or where prices are set below the cost of production. In the case of some of the Chinese tire manufacturers extremely low wages and overhead costs might also be blamed for giving these companies an unfair advantage.
The maximum anti-dumping duty rate for manufacturers is a whopping 210.48% with an additional countervailing duty of up to 14% on their imports. The Commerce Department had put preliminary anti-dumping duties in place earlier which resulted in 13.7 million imports in 2007, a drop of 1.3 million tires from 2006. However, with a global shortage of big tires (up to 12 feet in diameter) demand is outpacing production and Chinese companies have been keeping pace.
The People’s Republic of China has protested the final ruling by the Commerce Department which found some manufacturers having their preliminary duty charges reduced or dropped with most paying 9.48%, which is actually down from the 24.75% preliminary rate. The Commerce Department has yet to identify which manufacturers will pay the full anti-dumping duty, but the US International Trade Commission could reduce the duties if the tire imports have not materially harmed US producers.
(Source: Forbes, Reuters)
Comments
5 Comments on Chinese Tire Makers Slapped With 210% Dumping Charges
-
Best Trucks on
Sat, 12th Jul 2008 9:37 am
-
HID colors on
Sun, 13th Jul 2008 3:58 am
-
car loan articles on
Wed, 16th Jul 2008 9:58 am
They need to slap some teriffs on Chinese imports already.
China will eventually overtake the US economy entirely and we will be at the mercy of ‘Made in China’. Hopefully the economy will bounce back and we will be able to compete with china again.
HID colorss last blog post..How to adjust HID headlights
Wow! this is a hefty fine. I wonder if they are making thing cheaply why can’t they sell it at a cheap price?
Trackbacks
-
Custom Search