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Provisional Anti-Dumping Duties Apply to All Imported E-Bike Types

Laws & Regulations 2611

BRUSSELS, Belgium – The provisional anti-dumping duties announced yesterday on e-bikes imported from China are applicable to all e-bike categories; including L1 e-A and L1 e-B speed pedelecs as well as tricycles. In the European Commission’s 30-page document published in the EU Official Journal, almost all counter arguments brought forward by the Chinese industry and the e-bike Importers Collective since the May 3 EU regulation that made the e-bike import from China subject to registration, are rejected.

Provisional Anti-Dumping Duties Apply to All Imported E-Bike Types
Provisional anti-dumping duties on e-bikes imported from China are applicable to all e-bike categories; including L1 e-A and L1 e-B speed pedelecs.– Photo Bike Europe

The provisional anti-dumping duties announced yesterday are coming into force today and apply for a period of six months. By January 2019 the definitive anti-dumping must be announced by the European Commission.

The provisional anti-dumping duties apply to all e-bikes imported from China which have been subjected to registration since May 3. On the collection of the provisional anti-dumping duties the European Commission’s document says “The release (of the imported e-bikes, editor’s note) for free circulation in the Union of the product referred to in paragraph 1 shall be subject to the provision of a security deposit equivalent to the amount of the provisional duty.”

Once the definitive duties are in place collection starts. Depending of the decision by the European Commission, this could apply retroactively from the registration date of May 3 onward.

The provisional anti-dumping duties which have been set now also present a clear indication on how the definitive anti-dumping duties on e-bike imported from China will look like. These definitive anti-dumping duties must be announced by 20 January 2019 or earlier.

The European Commission has opted for the imposition of per company targeted provisional anti-dumping duties. The provisional dumping duties vary from 77.6% for the Bodo Vehicle Group, 27.5% for Giant Electric Vehicle (Kunshan), 21.8% for Jinhua Vision Industry and Yongkang Hulong Electric Vehicle and 83.6% for Suzhou Rununion Motivity to 37.0% for the majority (105) of Chinese e-bike exporters. All other Chinese e-bike exporters are hit by a 83.6% provisional anti-dumping duty.

Analogue country

With regard to one aspect of the investigation by the European Commission into the dumping of electric bicycles by the Chinese industry, the Commission meets the demands of China Chamber of Commerce for Imports and Exports of Machinery and Electronic Products (CCCME) and the Collective of European Importers of Electric Bicycles. This is the issue of the analogue country which in this case was Switzerland. However, hearing the arguments of CCCME and the Importers Collective stating that Switzerland with its high labour costs as well as high number of speed pedelecs sold annually, cannot be compared to the e-bike sales situation for Europe, the European Commission reached this conclusion: “The Commission therefore concluded at this stage that Switzerland is not an appropriate analogue country under Article 2(7)(a) of the basic Regulation.” Instead of Switzerland the European Commission based its case on prices (normal value) paid for e-bikes in the European Union. And by price comparisons the Commission concludes that price undercutting by the Chinese industry has been determined with undercutting margins ranging from 16.2% to 41%.

All e-bike categories

Furthermore, the CCCME argued that speed pedelecs should be excluded as they have significantly different characteristic and intended use. Here the European Commission comes to this conclusion: “Speed electric bicycles, L1e-A category electric bicycles and electric tricycles share the same basic physical characteristics and properties as well as end-uses with other types of electric cycles, and therefore cannot be excluded from the product scope of the investigation.”

Positive development of e-bike market

On the positive development of the e-bike market in Europe, where according to the Importers Collective and the CCCME Union producers benefit greatly, the Commission’s document says “The Union Industry was not able to fully benefit from the growth in consumption between 2014 and the investigation period. Indeed, consumption increased by 74%, and the Union industry only managed to increase their sales by 21%. As a consequence, Union industry lost significant market share (23 percentage points) during this period. The Union Industry had to reduce its production, sales, employment and capacity between 2016 and the investigation period due to dumped imports from the PRC. From the lost 23% market share of the Union Industry 18% went to Chinese imports having undercut Union industry’s prices by 16% to 43% in the investigation period.”

37% duty for 105 exporters

Apart from the five individually named companies the European Commission’s document, which is available for download on this page, also lists 105 Chinese exporting companies that have been hit by 37% provisional anti-dumping duties. All other Chinese e-bike exporters have been imposed with a duty of 83.6%. The EU document stipulates further “The rates of the provisional anti-dumping duty are applicable to the net, free-at-Union-frontier price, before duty”.

For more: https://www.bike-eu.com/anti-dumping

 

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