The Directorate General of Foreign Trade (DGFT) had announced their decision to restrain the import of tyres so as to reduce the dependence on tyre imports and to boost the domestic manufacturing sectors.
Now the DGFT has further introduced a new clause in the Duty Free Import Authorisation (DFIA) scheme which do not allow the import of tyres under it. In the initial stages when the DGFT announced the curb on tyre imports, particular imports were allowed with zero duties for a time limit of three years, however, this does not remain the case anymore.
After this decision made in March, all tyre imports have been placed in the restricted category until the manufacturers have a special license to import them.
Automobile manufacturers were the first who received the special license from the DGFT after they received tons of requests. The reason why they received the license is because of lack of availability of tyres domestically in particular sizes suitable for their products.
Also See:DGFT Instates Watchdog Function Over Chinese Tyre Imports
Now all tyre imports have been stopped, except for auto-manufacturers and OEMs that have taken special permission from the government for the import of tyres as required to be fitted to production vehicles to be sold domestically, as well as for exports.
Overall, the decision taken to stop tyre imports is said to be a good move by the Government. The decision is said to restrain illegal imports that ultimately takes away the profit of the domestic manufacturers. Most tyre importers are hoping for the restrictions to ease up sooner rather than later so that they can legally import tyres into the country.
The restriction was instated after a deadly clash between India and China where more than 20 Indian Soldiers had been killed by Chinese soldiers.
Few months back, manufacturers such as Hyundai Motor India Ltd, Bajaj Auto Ltd , Eicher Motors Ltd, MG Motor India Pvt. Ltd, Honda Cars India Ltd, Mercedes-Benz India Pvt. Ltd, BMW Group India, Skoda Auto Volkswagen India Pvt. Ltd and Jaguar Land Rover India have applied for the license to import tyres from china.
