China Dumping

MAARSSEN, The Netherlands (October 10) - There are rumors going round that the European Union will soon lift anti-dumping tariffs on complete bicycles imported from China. During last months' IFMA Show in Cologne these rumors were already heard and Bike Europe received numerous e-mails from readers with questions about this matter in the weeks thereafter. A publication in the September edition of Japan's Cycle Press contributed to these rumors. Our colleagues say that: "The anti-dumping tariffs against China may be lifted next spring." The article continues with: "Chinese manufacturers are already viewing the complete lifting of the tariffs as an established fact and are planning to immediately embark on capturing the European market." Where Cycle Press found the facts to confirm this news, remains fully unclear. The September 2002 publication only points at the fact that anti-dumping measures imposed on bicycle makers in Indonesia, Malaysia and Thailand have been abolished by the EU last May. Cycle Press continues: "While anti-dumping tariffs remain solely on bikes and parts of Chinese origin, since February six items including frames and forks have been conditionally exempted from the tariffs." This news, like the rest of the article, is way besides the point, not to say completely wrong. The original EU anti-dumping Regulation no. 2474/93 applied only to bicycles but was extended to the following bicycle parts by Regulation no. 71/97: - painted or anodized or polished and/or lacquered bicycle frames (CN 87149110) - painted or anodized or polished and/or lacquered bicycle front forks (CN 87149130) - derailleur gears (CN 87149950) - crank-gear (CN 87149630) - free-wheel sprocket-wheels (CN 87149390) - brakes other than coaster brakes and hub brakes (CN 87149430) - brake levers (CN 87149490) - complete wheels with or without tubes, tyres and sprockets (CN 87149990) - handlebars (CN87149910) whether or not presented with a stem, brake and/or gear levers attached. In 2000 the European Commission extended the anti-dumping measures for a five-year period. The duty has been fixed on 30.6% for the entire Chinese industry and not for individual companies. This means that in 2004 the dumping measures will come up for review by the European Commission who will decide in 2005 about a possible lift or an extension of the tariffs. In view of the present situation in the EU bicycle industry it is more likely that the European Commission will in 2005 decide for an extension rather than lifting the tariffs. With the US and Japan as examples for what China can bring about once trade barriers have been lifted it goes without saying that the European industry will put up a huge fight for an extension. (JO)