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K.R. Srivats

New Delhi , Nov. 5

THE domestic tyre industry has urged the Union Government to allow its companies to bring non-duty paid tubes and flaps into their respective factories and package them with the tyres for export purposes. Tyre exports from the country in the last fiscal stood at Rs 1,250 crore.

The Rs 12,000-crore industry has submitted to the Finance Ministry that there is no specific provision under the Central Excise Rules to remove tyres, tubes from one plant without payment of duty and bring the same to another plant for stuffing in the container, as required by the foreign buyers for eventual export.

The Automotive Tyre Manufacturers' Association (ATMA) has highlighted in its pre-budget memorandum for Union Budget 2004-05 that there are some tyre companies, which do not have the facility to produce tubes and flaps in their factories. It has been pointed out that the foreign buyers importing tyres from India desire that the tyres be fitted with tubes and flaps in a set.

The industry has suggested that the non-duty paid tubes and flaps can be obtained under a bond and can be exported along with tyres manufactured by the companies.

"All goods would move under bond and the tyre companies would take full responsibility to complete the export to the satisfaction of jurisdictional excise authorities. Non-duty paid tubes and flaps obtained for exports would be stored separately and proper account of the same would be kept," says the pre-budget memorandum of ATMA.

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