BRUSSELS, Belgium – The EU Customs authorities are investigating the duty free export status of Bangladesh, Indonesia and Cambodia for bikes. EU Customs already declared the status for Cambodia invalid.
The end of April published 2009 financial report from Tandem Group Plc discloses the current investigations by the Customs authorities. It also reports on the fact that the duty free export status for Cambodia is declared invalid. The duty free export status for Bangladesh, Indonesia and Cambodia (among others) is related to Generalised System of Preferences (GSP). This EU system is granting trade benefits to underdeveloped countries.
Tandem Group Plc operates renowned bike brands in the UK like Falcon, Claud Butler and Dawes. The company is a manufacturer and distributor of sports and leisure products and owns subsidiaries like Tandem Group Cycles Ltd, Falcon Cycles, Dawes Cycles and MV Sports Group.
Tandem Group’s financial report states on the Customs investigations: “A number of European bicycle companies have received notification from the EU Customs authorities that Generalised System of Preferences (GSP) forms issued by the Cambodian government between 2007 and 2009 were invalid.
“The impact of this is that the alleged (import, ed) duty (of 14%, ed) should have been paid at the full rate rather than the zero rate charged at the time of the importation. We understand that those companies affected are appealing against the notification. Although we have purchased a significant number of bicycles from Cambodia we have not received any notice to this effect. If we receive such notice, it is the Board's intention to vigorously defend and appeal against it as we believe there is no liability and strongly consider that we have acted properly and in good faith at all times.
“We have, however, received notification from HM Revenue & Customs affirming their intention to seek confirmation from the authorities in Indonesia and Bangladesh that bicycles purchased from these countries and admitted to the United Kingdom at a preferential rate of Customs duty were manufactured there in accordance with the rules of origin.
“Once again we consider that we have acted in good faith in respect of these imports, in all cases having received preference certificates which have been issued by the proper authority in each exporting country. Over the last three years we have benefited from a reduction in duty of approximately GBP 3 million (€ 3.5 mn) through GSP forms issued by foreign governments.”
For more information:
Click here for more on the Generalised System of Preferences (GSP)
Click here for more on the GSP import duty rates
Click here for more on GSP and the Rules of Origin
Click here for more on the Tandem Group Plc 2009 financial report
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