Brazil’s Ministry of Development, Industry and Foreign Trade has announced the imposition of an anti-dumping duty on bicycle tyres imported from Vietnam. This was reported by the national English daily Vietnam News.
Brazil launched an anti-dumping investigation on the import of bicycle tyres from Vietnam following a request by the Brazilian enterprise Industrial Levorin SA in September 2012. The Brazilian bike market stands at an annual volume of about 5 million units.
Imported Vietnamese bicycle tyres accounted for more than 18.5% of Brazil’s market in 2011. Vietnam became the second largest exporter of tyres to the South American market in 2011, next to China, with total revenue of 3.8 million US dollar, or a year-on-year increase of 34%.
Kenda Rubber (Vietnam)
An anti-dumping duty of 0.59 US dollar per kilogram has been imposed on Kenda Rubber (Vietnam) Company Ltd, while a duty of 2.80 US dollar per kilogram has been imposed on Link Fortune Tyre Tube Company Ltd, Vietnam and the other exporters. The duty will be applicable for five years.
Bicycle tyres imported from China and India are also facing an anti-dumping duty in Brazil. After an investigation which lasted from April 2011 to March 2012, an anti-dumping case against bike tyres exported to Brazil was filed in September 2012.
Recent statistics showed that the average price of tyres imported from India and China shifted between 3.50 and 1.81 US dollar per kilogram, while those imported from Vietnam was sold at 2.86 US dollar per kilogram in Brazil.
The anti-dumping tax levied on Vietnamese tyres is lower than similar tyres from India and China. Previously, the industry had primarily served domestic market, but since 2010 it has enjoyed strong growth and helped Vietnam secure a firm foothold in the international market.