Indian authority recommends heavy tariffs for halobutyl rubber imports

New Delhi – India’s commerce ministry has recommended heavy duties on the imports of halobutyl rubber (HIIR) from Japan, Russia, Singapore, the UK and the US.

The country launched an investigation into the imports of HIIR in October 2023, following a petition by Reliance Sibur Elastomers (RSE).

In its determination 30 Dec 2024, the directorate general of trade remedies (DGTR) of the commerce ministry said it was of the view that anti-dumping duties were required "to offset dumping and injury to the local industry."

The authority noted “very significant dumping” of the product in India, ranging between 10% to 70 % for various subject countries.

Recommending the ‘lesser margin of dumping’ for duty rates, the DGTR called for duties ranging between $215/tonne and $1,487/tonne on imports, depending on the producing company and the country of exports or origin (see table).

DGTR added that it took into account the eligibility of the petitioner to be treated as a “domestic industry” due to its links with a foreign producer who has also export HIIR to the Indian market.

“The authority considered various factors such as the objective & intent of the discretion provided… showing lack of collusion or collective action by applicant and Russian producer,” it added.

RSE, was therefore, eligible to constitute domestic industry for the purpose of the investigation.

According to the DGTR document, RSE is the sole supplier of HIIR in India and started production of the material in February 2021, with commercial production achieved on 31 March 2023.

“Significant investment has been made by the applicant to establish a separate plant for manufacturing HIIR,” said DGTR, adding that the RSE was unable to reach its projected performance due to dumping.

“It is essential to provide a level playing field to the domestic industry in order to keep such investments viable,” it added.

The product under consideration is halobutyl rubber, including bromobutyl rubber (BIIR) and chlorobutyl rubber (CIIR).

The rubber is produced through halogenation of isoprene groups of IIR and is commonly used to manufacture tire inner liners, hoses, seals, membranes, tank linings and conveyor belts.