ATMA seeks customs duty relief on key raw materials to tide over West Asia war impact

The tyre manufacturers body has made a representation to the government seeking temporary customs duty exemption on key inputs, including polyesternylon tyre cord fabric, bead wire, steel tyre cord, carbon black, processing oils, and petrochemical-based chemicals, the Automotive Tyre Manufacturers Association ATMA said in a statement.

Automotive Tyre Manufacturers Association on Wednesday said it has asked the government to extend policy support, including customs duty relief on critical raw materials, to mitigate supply chain uncertainties arising from the ongoing West Asia crisis. The tyre manufacturers' body has made a representation to the government seeking temporary customs duty exemption on key inputs, including polyester/nylon tyre cord fabric, bead wire, steel tyre cord, carbon black, processing oils, and petrochemical-based chemicals, the Automotive Tyre Manufacturers Association (ATMA) said in a statement. ''ATMA appreciated the recent decision to grant temporary customs duty exemption on select raw materials such as synthetic rubber and certain resins until June 30, 2026,'' it said. The government's action was a timely and supportive step for the industry, ATMA added. However, several other key inputs - including polyester/nylon tyre cord fabric, bead wire, steel tyre cord, carbon black, processing oils and petrochemical-based chemicals - continue to attract significant import duties despite ongoing price volatility and supply constraints, it said. ''We appreciate the government's timely support. However, given continued global uncertainties, extending duty relief to other critical raw materials is essential to maintain production stability and cost competitiveness,'' ATMA Chairman Arun Mammen said. Stating that the crude-linked inputs account for nearly 60-70 per cent of total raw material costs in tyre manufacturing, ATMA said with crude prices remaining volatile and key shipping routes such as the Strait of Hormuz and the Suez Canal under stress, the industry is facing rising input costs, shipment delays and higher freight and insurance charges. ATMA said it also raised concerns regarding supply constraints of bead wire, a critical component for tyre safety, with domestic manufacturers facing pressure due to shortages of industrial gas and LPG. The association also sought a temporary exemption from Quality Control Order (QCO) requirements for bead wire imports to ensure continuity in tyre production, it added. It also emphasised the need for refineries to sustain supplies of rubber process oils, SBPS (special boiling point spirit) and furnace oil, while aligning future refinery output towards other high-value materials. Stating that tyre production is critical to the mobility ecosystem, supporting transportation of essential goods, agricultural produce, and movement of people, ATMA said that any disruption in raw material availability could impact tyre supplies, including farm tyres, affecting agriculture and logistics.