Chinese tyre duty raise recommended

A trade regulations body has recommended raising duties on imported Chinese tyres to safeguard the UK tyre retreading industry.

The Trade Remedies Authority (TRA) has today (27 August 2024) published its initial findings on two transition reviews into anti-dumping and countervailing measures on bus and lorry tyres imported from China. The organisation is an independent UK body that investigates whether new trade remedy measures are needed to counter unfair trading practices and unforeseen surges of imports.

The TRA reports the UK’s tyre retreading industry competes with imported new tyres from the Asian country. It recommends raising the duties paid by the majority of Chinese tyre exporters in order to protect the UK’s tyre retreading industry.

The TRA cites figures from the British Tyre Manufacturers’ Association, which states the UK’s retreading industry is estimated to contribute around £230 million to the UK economy each year and supports 5,500 UK jobs.

The TRA has assessed evidence that historically, many of the tyres imported into the UK from China have been lower quality, single-use tyres which are less likely to be retreadable. If the measures were removed, it says it is likely that imports of these lower quality tyres would increase and cause injury to UK industry. This would also be detrimental to the environment as fewer of these tyres would be recycled through the retreading process.

Based on evidence provided, the TRA has recommended that the new combined anti-dumping and countervailing duty rates range from £10.03 per tyre to £110.11 per tyre. The Hankook Group, which participated in the transition review, would pay £10.03 per tyre in duties, while those exporters that did not cooperate would pay the residual rate of £110.11 per tyre.

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 by 17 September 2024.