Importers Warn of E-Bike Shortages in Dumping Case
GENT, Belgium – The “Collective of European Importers of Electric Bicycles” is warning of considerable damage to the whole European electric bicycle business which could result from the current and anticipated proceedings against the import of e-bikes originating in China. The Importers Collective further explains that warning in a press release that was issued yesterday.
21 importers from 7 EU member states have joined forces for their defence in the anti-dumping proceeding on electric bikes from China. On 26 November, the Collective of European Importers of Electric Bicycles has sent preliminary comments to the European Commission to counterargue the European Bicycle Manufacturers’ Association (EBMA) complaint. Bike Europe reported on that last Tuesday.
Importers Collective’s press release
Yesterday, the Collective issued a press release on their actions against the dumping complaint, which EBMA filed with the European Commission and which resulted in Brussels starting an anti-dumping proceeding on e-bike imports from China. The Importers Collective’s press release is in full available for download.
‘Anti-circumvention complaint in the making’
In their press release the Importers Collective states that next to potential anti-dumping duties, they expect more to come, more specifically anti-circumvention. As for the reasoning behind this, the press release states “The (EBMA) complaint holds 19 references to Bosch and 17 to Bafang. Whilst extensive references are made to Bosch to make the case for dumping, Bafang is accused at length of among other things subsidization without any evidence being produced. Apart from the fact that subsidization allegations do not belong in an anti-dumping complaint, this argument strengthens the Collective’s impression that this complaint is an anti-circumvention complaint in the making.”
Warning for e-bike drive system shortages
The press release continues on this issue with “The Collective warns that should anti-dumping duties be followed by anti-circumvention measures, then the whole European electric bicycles business, including the European producers of electric bicycles will sustain very considerable damage. The production of components for electric bicycles in Europe is by no means at a level to supply the demand that would result from anti-circumvention measures. The consequences of such shortage would be incalculable. Reduction of competition may well further deteriorate into the creation of monopolies.”
The Importers Collective’s warning is related to the fact that should the anti-dumping duties be followed by anti-circumvention measures, this will result in a huge drop in the import into the EU of made in China drive systems. This would be the likely result should the import of made in China e-bike components made subject to the same anti-dumping duties as (potentially) to be enforced on complete e-bikes imported from China.
Similar measures as for conventional bikes
Currently such measures are enforced on the import of made in China components for conventional bicycles. The same 48.5% anti-dumping duty is levied on for instance made in China frames & forks for bicycles as on the import of complete bikes imported from China. However, bicycle producers in the European Union and who, for that purpose, import for instance frames and forks made in China, may apply for an exemption on the anti-circumvention duties.
This exemption rule is massively being used by EU bicycle makers. There is however one basic condition for this exemption. The condition is that China made components may not constitute more than 59% of the total value of all parts of the assembled bike. When taking into consideration the value of made in China drive systems, it will become extremely difficult, if not impossible to produce e-bikes in Europe whilst limiting the use of Chinese components to 59%. The remaining 41% components value do not necessarily have to be European parts. They may be sourced anywhere else in the world.