BRUSSELS, Belgium – Earlier than expected the results of the EU review on the 48.5% anti-circumvention duties on certain bicycle parts imported from China, have been published by the EU. According to the EU Basic Regulation, the investigation had to be completed before 28 February, 2008 but the European Commission already sent its advice to the EU Council. The investigation found that:
Currently no circumvention is taking place. However there is also a likelihood of recurrence of circumvention should the anti-circumvention measure be removed. Therefore the European Commission advices in its final report that the measure should be maintained.
The European Commission’s grounds for the review were as follows: since the introduction of the measures, a large number of companies based in the Community have requested and obtained exemption. Furthermore, the current number of parties asking for an exemption is significant. At the same time there are no apparent indications of circumvention practices by companies having been granted an exemption.
Industry: “absolutely delighted”
Chairman of the European Bicycle Manufacturers’ Association Brian Montgomery commented on the outcome of the review of the anti-circumvention duties: “We are absolutely delighted with it, but still have to be cautious as it is not completely official yet. We are waiting for the final stand of the European Council on it, and the whole issue will become legal as soon as it has been published in the Official Journal of the European Union.
But looking back at the review, we can say that we managed to convince the European Commission about the impact of a drop of the anti-circumvention duties on the European industry, including the European bike parts makers, united in COLIPED. It goes without saying that everybody involved in the intensive lobby directed at the Commission which included among others, COLIPED Chairman Moreno Fioravanti, ANCMA, Tous a Vélo and ZIV directors Nigrelli, Huré and Neuberger, are extremely satisfied with how it all worked out. And especially on the fact that this is also a sign of recognition of the European bike industry.”
Procedures of investigation
During the review investigation period the relevant trends were examined. In total 158 companies involved in bike assembling completed a sampling form. Eight out of these 158 companies were selected to send in a sample. In addition the EU Commission sought an verified the information necessary by visiting Planet Fun in France and Decathlon Italia, F.Lli Masciaghi and Denver in Italy.
After the evaluation the EU Commission concluded that the average portion of the Chinese parts was 37%. This is far below the 60% threshold.
For more information on Anti-Circumvention Duties, click here
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