Follow : Anti-dumping duty, BJP, China, Competition, Custom duty, Foreign Trade Agreements, Government of India, IMM, import duty, Indian manufacturing sector, Injection moulding machine, NDA Government, plastic processing machinery, Plastic processing machinery manufacturers, Plastics Machine Manufacturers’ association of India, plastics processors, PMMAI, Skilled manpower, expects the Plastics Machine Manufacturers’ association of India (PMMAI) from the new NDA Government formed by BJP in India. PMMAI shares its expectations with mpponline, regarding the key steps to be taken by the new government with regards to competition from China.

Influx of Imports :
Our market attracted the attention of machinery manufacturers of Asia-Pacific rim mainly China. Prices of imported machinery from Far East remain unjustifiably lower and import duty being reduced from 12.5% to 7.5%, along with higher domestic taxes and duties. Upon representation from industry, Government of India imposed anti dumping duty on imports of machinery (manipulatively priced) from China in May 2009 that expired in May 2014. The new government needs to extend the anti dumping duty on Chinese Import of plastic processing machinery.

Duty reductions to 5% for Extrusion and ZERO for Injection Moulding Machine (IMM) in Foreign Trade Agreements (FTA) with South Korea and ASEAN have put domestic machinery at disadvantage on price. IMM imports below 1000 tonne from China were stopped by imposing anti dumping duty since May 2009. Now manufacturers from China are routing the machines through ASEAN. The biggest manufacturer of China has set up plant in Vietnam to find legitimate route to export machinery to India. This is detrimental to Indian manufacturing industry.

Domestic Disadvantage :
The Indian manufacturing sector has been growing hard way overcoming the high capital costs, inadequate infrastructure and scarcity of skilled manpower putting the Indian industry at disadvantage with respect to foreign companies.

Industry imports technology parts used in machine construction from Europe or Japan. These parts attract custom duty of 7.5% and upward. This adds to additional burden on material costs which should be reduced.

The industry meets the processors’ technology needs :
Plastic processing machinery manufacturers are building their machines following the design criterions and performance standards of best of the brands from Western Europe and North America for quality, productivity, energy efficiency and reliability.

Continued association with global technology leaders through JV or technology license agreement, machinery from domestic manufacturers has remained par with globally offered current technologies. Plastics processing involves in depth application engineering beyond machine deliverables for performance. Knowledge of application engineering is built through field experience and experimentations. Having acquired the application engineering knowledge from technology partners, Indian manufacturers support plastics processors to get best out of their equipment and investment. Machinery manufacturers do contribute to the growth of processing industry by providing them competitive edge through technology and training.
(Source Courtsey: Business Standard)