Ideal Shifts to China for Dumping Duty Exemption
PHILADELPHIA, USA – Ideal Bike Corporation is shifting its production destined for the EU markets from Taiwan to China. With that the company is to benefit from the 48.5% dumping duty exemption it was granted last June. Ideal produces for, among others, Advanced Sports International (ASI) that markets the brands Breezer, Fuji, Kestrel, Oval Concepts and SE.
ASI President and CEO Patrick J. Cunnane says that Ideal’s production shift to China as well as to Ideal’s Poland facility, “Brings big benefits to ASI customers with more competitive prices, reduced logistics fees, and shortened lead times. We expect that this is to help us double our European business over the next three years.”
Since 2001 – the year ASI’s strategic partnership with Taichung based bike maker Ideal was announced – the US supplier was able to expand its sales from 35,000 (2001) to 300,000 units (2012). Also the average sales price was more than doubled during these years, according to Cunnane. ASI’s and Ideal have a close partnership as the Taiwanese producer is a minority ASI shareholder since 2004.
On June 4, 2013, the outcome of the anti-dumping interim review on bikes imported from China into the Europeran Union was announced. The European Commission decided to maintain the dumping measures with 48.5% anti-dumping duty to be levied on complete bikes imported from China. However, to anyone’s surprise three Chinese companies were exempted from the 48.5% dumping duty: Zhejiang Baoguilai Vehicle Co. Ltd.: 19.2% duty; Oyama Bicycles (Taicang) Co. Ltd.: 0% duty and Ideal (Dongguan) Bike Co., Ltd.: 0% duty.
Ideal’s exemption: big stir in Taiwan
The fact that the Taiwan’s number 3 bike maker was exempted created a big stir in Taiwan as Ideal Bike Corp. is now able to export dumping duty free to Europe from its facilities in China. It prompts Ideal Bike Corp. President Andy Lee to state, “We are in a unique position among bicycle manufacturers to be able to ship directly from China into the EU without incurring any excess duty, and we are passing these savings on to our customers.” Those customers are, next to Advanced Sports International, Ridley and BMC as well as others.
In addition to the production shift from Taiwan to China, Ideal is also moving the assembly of some ASI models to Ideal Europe in Kutno, Poland (near Warsaw). Ideal Europe was founded as a wholly owned subsidiary of Ideal Bike Corporation in March 1999. Ideal Bike Co. Ltd. Dongguan in China was opened in 2006. Ideal Europe is focused on the production of electric bikes.