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China’s Bike Industry Lost Billions in euros Due to Anti-Dumping Duties

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The China Light Industry Information Center has calculated the cumulated losses for the country’s bicycle industry due to the European Union’s anti-dumping measures. During the 17 years that dumping duties are enforced on complete bicycles as well as parts imported from China, the losses

China’s Bike Industry Lost Billions in euros Due to Anti-Dumping Duties

HONGKONG, China – The China Light Industry Information Center has calculated the cumulated losses for the country’s bicycle industry due to the European Union’s anti-dumping measures. During the 17 years that dumping duties are enforced on complete bicycles as well as parts imported from China, the losses stand end of 2010 at a total of 5.1 billion euro.

China’s Light Industry Information Center revealed this at a meeting with dealers from Belgium and Holland. This meeting took place during last month’s study-trip organized by Bike Europe’s sister magazine ‘Tweewieler’ which targets the bike trade in the Benelux countries.

In 1993 the first anti-dumping measures were enforced by the European Union on all complete bicycles imported from China. At that time the dumping duty stood at 30.6%. That first term ended in September 1998.

After the introduction of anti-dumping duties on Chinese bikes, a number of exporters and importers tried to skirt the extra 30.6% levy for instance by shipping the bikes not fully assembled and declaring them as parts instead of bikes. To counter this abuse, in 1997 the European Commission issued Regulation 71/97, which extended the duty on bicycle imports to the imports of certain bicycle parts. These anti-circumvention measures are, next to the anti-dumping duties on complete bikes, also still in place. However, bicycle manufacturers based in Europe can apply for an exemption on the anti-circumvention measures.

The 30.6% anti-dumping were enforced up to July 2005. After the ending of this term a new dumping investigation was started. This investigation resulted in a five year dumping levy of 48.5% on bicycles as well as parts made in China. This term ended last July.

On July 13, 2010 the procedure to review the current anti-dumping measures was announced by the European Commission. Such a review is completed within 12 months to 15 months. During this period the current anti-dumping measures as well as the anti-circumvention measures remain in force.

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