Warnings from EBMA

PARIS, France (November 15) – Brian Montgomery, Chairman of the European Bicycle Manufacturers’ Association is warning Chinese, Taiwanese, and Vietnamese bike exporters. He said to Bike Europe that he is learning every day about new tricks from these exporters to avoid the dumping duties. Montgomery expressed his warnings in view of recent initiatives by the Taiwan Bicycle Exporters Association that in October began issuing its own Certificate of Origins, documents stating that more than 40% of the bicycles are in fact manufactured in Taiwan. Montgomery said: “That the TBEA wants to do something to prevent the circumvention of the anti-dumping duties is in itself recommendable. However if something serious is not done it’s likely that there will be an unfortunate ending.” He added: “We need something more substantial than these unofficial Certificates of Origin which the Customs will not recognise. We need official action and quick because we get more and more reports on bikes being shipped from China to Taiwan and then re-shipped to Europe with false certificates of origin. A recent scam is the use of double packaging. The export box with the bike is labelled ‘Made in Taiwan’ but it is put in a cheap carton marked ‘Made in China’ and this outer carton is thrown away in Taiwan before the bikes are sent to Europe.” About other tricks from Chinese, Taiwanese, and Vietnamese bike exporters to avoid the dumping duties, he said: “Next to reports on heavy under-invoicing or dumping duty absorption by manufacturers or exporters; the current trend on the imports of bikes into the EU from China is against all logic. During the first half of 2005, the EU-25 imported 4.9 million bikes from China which is about the same as during the first half of 2004. But the most peculiar thing is, is that the prices for the imported Chinese bikes are dropping. Average value of a China made bicycle imported into the EU was in 2004 about € 35; during the first half of 2005 this dropped to € 25. With all the price hikes for raw material; steel, aluminium, rubber and so on, one expect prices to go up and not down! And prices for Taiwan made bikes did go up. However, not for the ones made in China which is a strong indication of under-invoicing.” “On Vietnam,” the EBMA Chairman continued: “The dumping duty absorption by the bike maker or exporter is starting to get quoted. This means that they include the duty or part of the duty in their cost-calculations for a bike. This is illegal. These tricks are now reaching such a level, that we are in deep discussion with the European Commission to find solutions.” More on this is in the November edition of Bike Europe; publication date November 18, 2005.