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Expiry Review Indicates Anti-Dumping Duties on Chinese Bicycle Imports Will Continue

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It is very likely that next October the European Commission will decide in favour of continuing the anti-dumping duties on the import of Chinese bicycles. The outcome of the expiry review which

Expiry Review Indicates Anti-Dumping Duties on Chinese Bicycle Imports Will Continue

BRUSSELS, Belgium – It is very likely that next October the European Commission will decide in favour of continuing the anti-dumping duties on the import of Chinese bicycles. The outcome of the expiry review which was started in July 2010, makes it almost certain that again dumping duties will be enforced. The level of duties to be introduced is not yet known.

End of June European Commission’s DG Trade published the findings of the expiry review of the anti-dumping measures on Chinese bicycles in its general disclosure document. The Commission concludes that the anti-dumping measures on bicycles should be maintained.
 
The Commission has found price undercutting after deducting anti-dumping duties of 53%, which is the same level of undercutting as found during the 2005 interim review. The dumping margin however has decreased from 48.5% to more than 20%. Both in 1993 and in 2005, the duties were set on the basis of the dumping margin. The level of duties to be introduced for the next 3 years is not yet known.
 
The extension of measures following an expiry review would normally apply for 5 years, unless there are specific reasons for a shorter period. The Commission refers to the fact that the EU bicycle industry is largely using the exemption for imports of bicycle parts. This requires regular re-examination, and to allow for this the Commission proposes to limit the anti-dumping measures to 3 instead of 5 years.
 
The Commission is convinced that the existing anti-dumping measures have had a clear effect on the situation of the Union industry. The measures have allowed the EU industry to maintain a stable market share. Nevertheless, the Union production decreased and profit margin remained insufficient. The Commission concludes from this that any possibility for further growth and profits has been undermined by the price and volume pressure of dumped imports.
 
Taking the production capacity in China and the demand in the Union market into consideration, the Commission expects Chinese manufacturers to immediately increase their exports of bicycles to the Union, should the measures be repealed. Moreover, says the Commission, existing overcapacity gives the Chinese manufacturers the possibility to be present on the European market at very low prices.
 
The Commission has found that the EU industry is clearly in a fragile situation, as it is loss making. Almost all injury indicators relating to the financial performance of the Union producers – such as profitability, return on investments and cash-flow – deteriorated during the period considered. Consequently, the Commission cannot conclude that the situation of the Union industry is secure.
 
On this basis, the Commission concludes that the Union Industry, as a whole, remains in a vulnerable economic situation and has continued to suffer material injury within the meaning of the basic Regulation.
 
In total, 7 exporters/producers, around 100 Union producers and 4 importers provided the Commission with requested information within the time-limits set. Upon that, questionnaires were sent to the seven Chinese companies, three of which submitted replies. Of these three companies, only two reported exports of the product concerned to the EU during the investigation period: Oyama Bicycles and Tianjin Golden Wheel Bicycle (Group) Co. Ltd.
 
The 27 member states of the European Union imported 460,000 bicycles from China in 2010; down 4% on the 480,000 imported in 2009. As said, the final decision on again enforcing anti-dumping will be taken next October. The EU started levying dumping duties on bike imports from China in 1993.
 
 

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