After Two Five-Year Extension and One Anti Circumvention Action, Alloy Steel based High Strength Axle Trailers from China Hit by Another Five Years of Anti-dumping Duty – Pune based Singapore Co. York Transport Claims Injury – Heavy Transport Equipment to Suffer

The Directorate General of Trade Remedies (DGTR) has recommended the continuation of anti-dumping duties on imports of "Axle for Trailers" originating in or exported from China PR for an additional five years.

Background and Scope

· Investigation Type: This is the second sunset review investigation regarding anti-dumping duties initially imposed in 2016 and extended in 2021.

· Product Under Consideration (PUC): "Axle for Trailers" classified under tariff item 8716 90 10, including variants in Semi Knocked Down (SKD) or Completely Knocked Down (CKD) conditions. Drive axles for trucks and prime movers are explicitly excluded.

· Domestic Industry: M/s York Transport Equipment (India) Pvt. Ltd. filed the application and was verified as an eligible domestic industry constituent representing a major proportion of Indian production.

· Timeline Evaluated: The Period of Investigation (POI) spans from October 1, 2024, to September 30, 2025, with an injury analysis covering FY 2022-23 to the POI.

Dumping and Injury Findings

· Continued Dumping: Even with duties in place, Chinese imports continued to enter the Indian market at dumped, positive margins above de minimis levels during the POI.

· Price Undercutting: In the absence of anti-dumping duties, Chinese imports materially undercut domestic selling prices and entered below the domestic industry's cost of sales.

· Current Domestic Status: Due to the existing remedial measures, the domestic industry improved its performance parameters (production, sales, and capacity utilisation) and remained profitable.

Likelihood of Recurrence

· Surplus Chinese Capacity: Four major Chinese manufacturers maintain massive unutilised production capacities, totaling several times the entire Indian demand.

· Export-Oriented Incentives: The sole cooperating exporter, Guangdong Fuwa, has substantial spare capacity and sells to third countries at prices consistently lower than its exports to India, creating a strong commercial incentive to redirect volumes to India if duties expire.

· Vulnerability: Expiry of the protection would immediately subject domestic manufacturers to severe price depression or loss of sales volumes, reversing their recent financial recovery.

Final Recommendations

· Duty Extension: The DGTR recommends continuing definitive anti-dumping duties at the existing producer-specific rates for another five (5) years.

· Duty Rates:

o Guangdong Fuwa Heavy Industries Co., Ltd.: USD 0.16 per kg.

o All other Chinese producers/exports: USD 0.31 per kg.

[DGTR Final Findings Case No. AD(SSR)-02/2026 dated 22 October, 2026]