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EU Reviews Bike Dumping by China

Industry- & Retail Organizations

After on March 19th, 2010 the notice of the impending expiry of anti-dumping measures on the bicycles and parts imported from China and Vietnam into the European Union has been published in the Official Journal of the European Union; the European Commission published on July 13 the Notice of Initiation of an Expiry Review.

After on March 19th, 2010 the notice of the impending expiry of anti-dumping measures on the bicycles and parts imported from China and Vietnam into the European Union has been published in the Official Journal of the European Union; the European Commission published on July 13 the ‘Notice of Initiation of an Expiry Review’. This is the first step in the procedure to review the current anti-dumping measures which expired July 15, 2010.

The published document states: “The request (for an expiry review – ed.) was lodged on 13 April 2010 by the European Bicycle Manufacturers Association (EBMA) on behalf of producers representing a major proportion, in this case more than 25 %, of the total Union production of bicycles.”

Urgent letter

It took the European Commission’s Directorate-General for Trade over three months to take further action on that request as DG Trade mailed on July 5 an urgent letter to individual bike manufacturers as well as industry associations in Europe. The letter included a questionnaire with which the Directorate-General for Trade wanted: “To assess whether a formal expiry review investigation concerning imports into the EU of bicycles originating in the People’s Republic of China may be initiated. EU law requires the Commission to verify whether the EU producers presenting a complaint are sufficiently representative,” said this official letter. It letter urged the bike producers in Europe to return the completed questionnaires in only two days.

The published ‘Notice of Initiation of an Expiry Review’ further states, “The request is based on the grounds that the expiry of the measures would be likely to result in a continuation of dumping and recurrence of injury to the Union industry.” For the complete ‘Notice of Initiation of an Expiry Review’ document, click here.

Normally an expiry review is completed within 12 months, but they may take up to 15 months. If it takes the European Commission 15 months to decide for a withdrawal or continuation of the anti-dumping measures, the dumping duties of 48.5% on bikes imported from China will remain in force up to January 1, 2012. An expiry review can result only in the repeal or continuation of the duties in force. If measures are maintained, they will normally remain in force for another five years. An expiry review cannot lead to a change in the level or form of the duties; these can only be changed by an interim review.

 

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