HONGKONG, China – The China Light Industry Information Center has calculated the cumulated losses for the country’s bicycle industry due to the European Union’s anti-dumping measures. During the 17 years that dumping duties are enforced on complete bicycles as well as parts imported from China, the losses stand end of 2010 at a total of 5.1 billion euro.
China’s Light Industry Information Center revealed this at a meeting with dealers from Belgium and Holland. This meeting took place during last month’s study-trip organized by Bike Europe’s sister magazine ‘Tweewieler’ which targets the bike trade in the Benelux countries.
In 1993 the first anti-dumping measures were enforced by the European Union on all complete bicycles imported from China. At that time the dumping duty stood at 30.6%. That first term ended in September 1998.
After the introduction of anti-dumping duties on Chinese bikes, a number of exporters and importers tried to skirt the extra 30.6% levy for instance by shipping the bikes not fully assembled and declaring them as parts instead of bikes. To counter this abuse, in 1997 the European Commission issued Regulation 71/97, which extended the duty on bicycle imports to the imports of certain bicycle parts. These anti-circumvention measures are, next to the anti-dumping duties on complete bikes, also still in place. However, bicycle manufacturers based in Europe can apply for an exemption on the anti-circumvention measures.
The 30.6% anti-dumping were enforced up to July 2005. After the ending of this term a new dumping investigation was started. This investigation resulted in a five year dumping levy of 48.5% on bicycles as well as parts made in China. This term ended last July.
On July 13, 2010 the procedure to review the current anti-dumping measures was announced by the European Commission. Such a review is completed within 12 months to 15 months. During this period the current anti-dumping measures as well as the anti-circumvention measures remain in force.