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Dumping Duty Exempted Oyama Set Sights On Europe

Sales & Trends

TAICING, China – That Oyama Bicycle from China is exempted from the 48.5% dumping duty proves to be a very powerful sales tool. “We are currently taking full advantage of this to obtain a firm foot-hold on the European market,” says Oyama’s sales manager for Europe Richard Chang.

Dumping Duty Exempted Oyama Set Sights On Europe
“For the years ahead our unique selling point over other Chinese manufacturers is the privilege of the 0% anti-dumping duty,” says European sales manager Richard Chang of Oyama Bicycle. – Photo Bike Europe

Oyama Bicycles as well as Ideal Bike, both operating facilities in China, are exempted from the anti-dumping duties on bicycles made in China which are imported into the EU (see the related article in this newsletter). The Oyama factory is based in Taicing, just north of Shanghai.

Production relocation

“We do notice the effect of the European Commission’s decision to change the local content regulation on Cambordia’s duty free export to Europe which came into force on January 1st of 2014 as part of the country’s application to obtain the GSP Plus status,” furthers Richard Chang. With that he refers to a quota system that is now applied to the GSP+ status for Cambodia made bikes that are exported to Europe and that are equipped with parts from Malaysia and Shimano Singapore which are no longer considered to be local content since January 1st of 2014. Also Vietnam’s riot outbreak last May caused a lot of concern among European customers who started to look for save and secure production locations.

New production facility

“In the past 8 months we got serious interests from dozens of major European players for production up to model year 2016,” confirms Richard Chang. “We have set our export target to Europe for MY 2016 on 200,000 units. However to satisfy more customers’ demands, we will relocate our facility to Huai An, to the north of Jiangsu province. This new factory will have a capacity of 2 million bikes per year.”

“For the years ahead our unique selling point over other Chinese manufacturers is the privilege of the 0% anti-dumping duty. When the European Commission decides in 2018 not to extend the anti-dumping duty on bicycle made in China, which we strongly doubt, we have created a firm foot-hold on the European market.”

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