Canada Eases Dumping Duties On Chinese Bikes

Canada Eases Dumping Duties On Chinese Bikes OTTAWA, Canada (December 19) - The Canadian government eased the minimum price of bicycles imported from China and Taiwan, under which a dumping duty will be charged. From now on Canada will not impose duties on bicycles with a FOB wholesale price above CAD 225 (€ 141) and frames priced above CAD 50 (€ 32). Previously, Canada's International Trade Tribunal charged dumping duties on complete bikes that cost up to CAD $325 (€ 205) and on frames priced up to CAD100 (€ 64). Canada imposed the dumping duties in 1992 and extended them in 1997. The trade regulation applies to all bicycles with 16-inch or larger wheels. Actual dumping duties vary among manufacturers according to differences between products' established normal value and export price, but theoretically can range as high as 64%. Procycle, Raleigh and Victoria Precision are the three major domestic producers of bicycles in Canada while there are also several smaller producers such as Devinci and Norco Products Ltd. "In 2001 the members of the Canadian Bicycle Manufacturers' Association (CBMA) accounted for over 95% of the production of bikes in Canada with wheel diameters of 16 inch and greater that were sold at a suggested retail price of CAD 800 (€ 500) or less," says the report of Canada's International Trade Tribunal. 97% of the bikes in Canada is sold through mass merchants, such as Canadian Tire and Zellers at prices below CAD 400 (€ 250). The latter follow closely Wal-Mart's bike pricing policy. The Canadian International Trade Tribunal blamed Canadian bike producers of selling their products to mass merchants at low prices themselves. In Canada roughly 1.5 million bikes have been sold in 2002. According to the report of the Canadian International Trade Tribunal, China's bicycle industry continues to be the largest in the world. "At present, it consists of over 1,000 plants that manufacture bicycles, components and accessories. About 450 plants are dedicated to the manufacture of whole bicycles. The current production capacity of these plants is estimated to be 70 million units per year. China exported approximately 23 million bicycles in 1999, the latest year for which figures are available." (FN)