DGTR Initiates Dumping Probe Against U.S. and China Over Key Tyre Rubber

The Directorate General of Trade Remedies (DGTR) has initiated a probe concerning the import of Halo-Isobutene-Isoprene Rubber (HIIR), more commonly known in the industry as Halobutyl Rubber. This specialized substance which includes both Bromobutyl Rubber (BIIR) and Chlorobutyl Rubber (CIIR) is essential for manufacturing inner tubes for everything from passenger cars and bicycles to heavy-duty trucks and agricultural equipment.

The investigation targets imports originating in or exported from three key global suppliers: China, Singapore, and the United States of America (USA). 

The Core of the Complaint
The domestic industry, the sole producer of this rubber in the country, Reliance Sibur Elastomers Private Limited filed the application claiming that foreign exporters are “dumping” the product. Dumping, in trade terms, means selling goods in a foreign market at a price below their fair market value or production cost. 

The applicant alleges that this practice has caused significant injury to the local industry. As a result, the domestic producer is asking the government to impose anti-dumping duties on the subject goods imported from these countries. 

Impact on Automotive Sectors
For the vast global automotive supply chain, Halobutyl Rubber is indispensable. Because of its superior characteristics, achieved through the halogenation of Isoprene groups, it is prized for its ability to reduce air leakage. This makes it vital for the production of inner tubes in various categories of tyres.