News Article

City Cycle and Chin Haur Get Dumping Duty Exemption

Laws & Regulations

BRUSSELS, Belgium – The EU Council has lost two court cases against anti-circumvention measures. The Court of Justice of the European Union ruled that there was insufficient proof for the two companies carrying out transhipment operations. With that the City Cycle and Chin Haur bike export to Europe is no longer hit by the 48.5% ant-dumping duties.

City Cycle and Chin Haur Get Dumping Duty Exemption
The Court of Justice of the European Union ruled that there was insufficient proof for City Cycle and Chin Haur carrying out transhipment operations. – Photo EU

The Sri Lankan company City Cycle Industries and Chin Haur Indonesia of Taiwanese origin both challenged the extension of anti-dumping duties on Chinese imports. Due to alleged circumvention by transhipment operations the 48.5% anti-dumping duties bike was levied on the export from both companies to the EU markets.

Court of Justice of the European Union

In two cases before the General Court, a constituent court of the Court of Justice of the European Union, they applied for the annulment of Regulation 501/2013 extending the duties to Indonesia, Malaysia, Sri Lanka and Tunisia in their respect.

The procedure started in August 2013, shortly after publication of the Regulation objected to. The Court pronounced a verdict on 19 March of this year.

Both applicants claimed that the Court had annul the Regulation in as far as it concerned the applicants. Secondly, they claimed the Court had to order the Council to pay the costs. Both applicants instituted the case against the Council as the party who issued the contested Regulation.

Insufficient proof

In both cases the Council was supported by the European Commission. The request by European Bicycle Manufacturers Association (EBMA) to intervene in support of the Council was rejected but the subsequent request for an EBMA member to intervene was accepted.

Whereas City Cycle Industries put forward 5 pleas in support of their action, Chin Haur advanced three pleas. The Court rejected the largest part of these pleas but upheld that part in which the applicants argued that there was insufficient proof for the Council to conclude that they had been carrying out transhipment operations.

As a result, the Court ordered the Council to pay the costs incurred by City Cycle Industries and Chin Haur and to bear its own costs. The Commission and the EBMA member both also had to bear their own costs.

Next to City Cycle Industries three more companies from Sri Lanka are exempted from the anti-dumping duties. There are Asiabike Industrial Ltd, BSH Ventures (Private) Ltd and Samson Bikes (Pvt) Ltd.

From Indonesia there were also already exempted companies. These are: P.T. Insera Sena, PT Wijaya Indonesia Makmur Bicycle Industries (Wim Cycle) and P.T. Terang Dunia Internusa, (United Bike). Added to this list is now Chin Haur Indonesia.

Full text of both General Court judgments can be found here:

http://curia.europa.eu/juris/liste.jsf?language=en&td=ALL&num=T-412/13

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