The duties paid by the majority of Chinese tyre exporters will be increased if the Government acts on a recommendation by the Trades Remedies Authority (TRA) to protect the UK’s tyre retreading industry, which competes with imported new tyres.
Following the UK’s decision to leave the European Union, the TRA was set up to oversee work previously done by the European Commission with regard to protecting against imports which are subsidised by foreign governments to the point where they harm UK suppliers.
The TRA has noted that many of the tyres imported into the UK from China have been lower quality, “single-use” tyres which are less likely to be retreadable. According to the British Tyre Manufacturers’ Association, the UK’s retreading industry is estimated to contribute around £230 million to the UK economy each year and supports 5500 UK jobs.
Under Regulations (EU) 2018/1579 and 2018/1690, the EU imposed anti-dumping and anti-subsidy measures applying to certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries.
The TRA has examined whether those measures should be maintained, removed or increased and has recommended that the new combined anti-dumping and countervailing duty rates should range from £10.03 to £110.11 per tyre.
The Hankook Group, which participated in the transition review, would pay the lower duty rate while those exporters that did not co-operate would pay the higher.
Businesses that may be affected by these reviews are invited to comment on the TRA’s initial findings via the TRA’s online case platform (https://www.trade-remedies.service.gov.uk/accounts/login) by 17 September 2024.
Full details of the TRA proposals to the Secretary of State can be found HERE.
