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Why Dumping Duties for Four More Countries?

Laws & Regulations

AMSTERDAM, the Netherlands – The European Union’s decision to extend the anti-dumping duties on bicycles to four more countries: Indonesia, Malaysia, Sri Lanka, & Tunisia raises questions on what motivated this measure?

Why Dumping Duties for Four More Countries?
The DG Trade of the European Commission started the investigation on circumvention after receiving complaints that bicycles originating from China were transshipped via Indonesia, Malaysia, Sri Lanka and Tunisia. – Photo Bike Europe

From June 5 an anti-dumping duty of 48.5% is levied on bicycles imported into the European Union originating from Indonesia, Malaysia, Sri Lanka and Tunisia. Seven companies based in these countries are exempted from this duty. These are:

From Indonesia:

  • P.T. Insera Sena
  • PT Wijaya Indonesia Makmur Bicycle Industries (Wim Cycle),
  • P.T. Terang Dunia Internusa, (United Bike)

From Sri Lanka:

  • Asiabike Industrial Limited
  • BSH Ventures (Private) Limited
  • Samson Bikes (Pvt) Limited

From Tunisia:

  • Euro Cycles SA

The DG Trade of the European Commission started the investigation on circumvention after receiving complaints that bicycles originating from China were transshipped via Indonesia, Malaysia, Sri Lanka and Tunisia.

Stable market share

However, import statistics of Eurostat show a relatively stable market share of bicycles imported via those four countries. In 2010 a total of 2,163,550 bicycles were shipped to the European Union from Indonesia, Malaysia, Sri Lanka and Tunisia together. This represented a market share of 23.1%. In 2011 this number declined to 2,087,873 units (or 24.6%) and in 2012 to 2,009,589 units (or 26.4%).

These statistics show that the decision to impose anti-dumping duties was, at first sight, not based on an excessive growth of imported bikes. But when examining the Implementing Regulation No 501/2013 of 29 May 2013, it shows that much more has been taken into account. DG trade surveyed the export flow of the Chinese bicycle industry to these countries during 10-year period; starting in 2004.

‘Change in the pattern of trade’

Examining these figures lead DG Trade to the conclusion: “The overall decrease of the exports from the People Republic of China to the Union and the parallel increase of exports from Indonesia, Malaysia, Sri Lanka and Tunisia to the Union and the increase of exports from the PRC to Indonesia, Malaysia, Sri Lanka and Tunisia after the increase of the anti-dumping measures in July 2005 constitutes a change in the pattern of trade between the countries concerned, on the one hand, and the Union, on the other hand, within the meaning of Article 13(1) of the basic Regulation.”

Next to that DG Trade’s investigation could not establish assembly operations with regard to specific companies. Also there were producers/exporters that didn’t came forward and cooperated in the investigation. With that DG trade concluded that it attributed to transhipment practices.

Regulation No 501/2013

For more on the reasons behind the European Commission’s decision to extend the 48.5% anti-dumping duties to Indonesia, Malaysia, Sri Lanka and Tunisia (except for the 7 named companies) see the PDF LexUriServ 501-2013 on this page.

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