EU Issues Expiry Notice on Anti-Dumping of Bicycle Imports from China
BRUSSELS, Belgium – Last week, on 5 September, the European Commission issued a notice of the impending expiry of the anti-dumping measures against the import of bicycles from the People’s Republic of China. These measures are to expire on 6 June 2018. This notice also calls for “Union producers to lodge a written request for a review.” The anti-dumping duties have for decades protected the European bicycle sector from a flood of ultra-cheap bicycles from China.
The expiry notice says “The Commission gives notice that, unless a review is initiated the anti-dumping measures will expire on 6 June 2018.”
EU overhauling anti-dumping regulation
The expiry notice and the call for a review by bicycle producers operating within the EU’s 28 member states comes at a time of uncertainty on how dumping by China is to be determined. This has to do with the fact that currently the EU’ is overhauling its anti-dumping regulation.
The proposed dumping regulation change notably provides for the removal of China from the EU’s list of ‘non market economy’ countries. Under the European Commission’s proposal, it would be allowed, whenever it has established that prices are distorted due to state intervention, to construct normal value based on costs of production and sale reflecting undistorted international prices, costs or benchmarks.
Anti-dumping will not end by June 2018
Whether the new method for calculating dumping on imports of bicycles from China means that the 48.5% anti-dumping duty now in place for China made bikes exported to the European Union will for another five year term end, or will not end by June 2018 is too early to tell. However, as it stands now they will not end by June 6, 2018. This will be caused by the request for a review by bicycle producers based in the European Union.
EBMA to lodge review request
Before the end of the current five year term of the anti-dumping measures by June 2018 it is expected that the European Bicycle Manufacturers’ Association (EBMA) will lodge a requests to the European Commission for an dumping review. The investigation involved in such a review will take up a legally fixed term of 9 months. With that the end of the current 48.5% anti-dumping rate on bikes imported from China is expected for March 2019.
By the way, the anti-dumping duty does not apply to the import from China of electric bikes on which a 6% import tax is levied. The regular import tax for bicycles from China as well as other countries is 14%.