Local bicycles industries suffered by China products
Author(s): City Air NewsA meeting of the Anti Dumping Duty Committee being held in registered office of UCPMA, Ludhiana on Tuesday. Ludhiana, September 9, 2014: The meeting of the Anti Dumping Duty Committee was held in registered office...
Ludhiana, September 9, 2014: The meeting of the Anti Dumping Duty Committee was held in registered office of United Cycle and Parts Manufacturers Association (UCPMA), Ludhiana. In today’s time the Bicycle industries is facing severe problem due to china products (bicycle as well as bicycle parts) importing in India, the meeting observed. Due to China’s product the domestic market of India is not in proper form of business. During the last year import from China for bicycle and bicycle parts has increased from Rs.300 crore to Rs.1600 crore where as export from India has reduce from Rs.1400 crore to Rs.900 crore.
So from the above figure of import from China one can easily imagine what will be the condition of domestic market, the meeting further observed. Local industry are been shutting down and they also depend on China’s product.
Almost 40% of the bicycle industries are being closed and 10% industries are in very bad shape. The major spare parts in which the local market disturbed are hubcon, basket, chain, crank, complete break cables, steel balls, levers, bicycle pump, padel exle, seat, spoke, complete end bicycles/Complete High end bicycles.
Who are the persons those who are hampering the local market? Those manufacturing industries and persons who are leaving in coastal areas are importing the material from china at very cheap prices by under billing and stealing of excise duty and then selling further in the domestic market at very cheap prices. It is said that the rate of Chinese material which the importers are bringing to the local market through under billing and stealing of excise duty is less than the scarp price of Indian market. In this condition how will the domestic industries will survive? It is one type of cancer which has to be stopped immediately otherwise the local market will be adversely affected.
“Now we come to the other side of the consequences relating to government”, said those attended the meeting. The persons (agent) who are importing the material from china by under invoice/half billing naturally there is a big loss of revenue for the Indian govt. also. When they are bringing the materials through the above way then naturally they have to pay less duty as a result they save large amount of money from the duty which should go the Indian govt. legally. In order to improvise this government should increase the duty on bicycle and bicycle parts from 30% to 50%.
The agents/traders are using the benefits of SAFTA which the govt. had made for the benefits of manufacturers. In this way the agents are saving lot of money which should legally go to the Indian govt. if the govt. is not getting the revenue then it is great loss Indian govt. also. The duty on bicycle and bicycle parts as on now is 30%. Thus the importers are saving up to 25% by using SAFTA process. Which directly hits the Indian market and also the revenue for the government is reducing.
This type of performance by agent gives more criminal offences like hawala etc.
The meeting opined that in order to protect this type import the government should use safe card duty, anti dumping duty. The government should impose a base price for each raw material like steel Rs.150 per k.g for hard/tempered/electroplating painting etc., Rs. 100 per k.g on EN series / alloy steel / steel balls, Rs. 80 per k.g for M.S and all the material mention above should be by weight only. The government must look in to this matter very seriously. They should monitor the under invoice of those material which are being imported from china very carefully.
The meeting further resolved that in order to save the Indian market of bicycle and spare parts the government should take the action very seriously specially for those persons and traders who are importing the material from china by under billing or SAFTA. Already 30% to 40% of cycle industry is forced to close down due to China market. If these things continue then naturally the total local industries will demolish. With the coming of new government at the Centre, the meeting hoped that the government will listen to their words sincerely and try to do every possible way to save the MSME.
“We the members of UCPMA request all the importers to please cooperate with us by not importing the material in any illegal way. For the small benefits don’t play with the local industries. Please save the local market by discussing with local manufacturers above the problems and their solutions. In this way if you concentrate on local market both will be the benefitted”, the meeting observed. The meeting was attended among others by Charanjit S. Vishivkarma (President), Inderjit Singh Navyug (Sr. Vice President), Pardeep Wadhawan (Secretary), Ajit Kumar( Prop. Secretary), Rajesh Bansal (Convener for anti dumping duty), Harinder Singh Deol(Co- Convener), Mukesh Airi(Co- Convener).
Readers may send their news/views/feedback to us: