News Article

Anti-Dumping Duty Extended to Three More Countries

Laws & Regulations

BRUSSELS, Belgium – The European Commission imposed anti-dumping duties on the import of bicycles from Cambodia, Pakistan and the Philippines. Only three Cambodian companies, including A&J, Smart Tech and Speedtech Industrial as well as Procycle Industrial from the Philippines are excluded.

Anti-Dumping Duty Extended to Three More Countries
European Commission imposed anti-dumping duties on import of bicycles from Cambodia, Pakistan and the Philippines with the exemption of individual companies. – Photo Bike Europe

The new regulation is applicable from May 18, 2015 and is an extension of the anti-dumping duty imposed mentioned Council Regulation (EU) No 502/2013 on imports of bicycles originating in the People’s Republic of China to imports of bicycles consigned from Cambodia, Pakistan and the Philippines.

It is not relevant whether these bicycles are declared as originating in Cambodia, Pakistan and the Philippines or not. The anti-dumping duty applicable amounts 48.5%.

Bicycle factories on roller-skates

The Commission’s investigation revealed that the assembly of bicycles can easily be set-up and closed within a short period of time. According to the Commission this was shown by a pattern of moving the assembly operations from one country to another as soon as the Commission initiated an anti-circumvention investigation.

It was further established that some of the companies subject to this investigation were related to companies already subject to measures, or exported to the Union market via the same unrelated trading company. This was one of the reasons that the Commission concluded that the existing measures are being undermined in terms of quantities and prices.

Pakistan starts export to Europe

During the investigation period from 1 January 2011 till 31 Augustus 2014 the Commission reported some remarkable variations in the quantities of bicycles imported from China, Cambodia, Pakistan, the Philippines, Indonesia, Malaysia, Sri Lanka and Tunisia into the Union. The export from Cambodia increased from 493,874 units in 2011 to 1,382,474 between September 2013 and August 2014.

Also the Philippines grew their export to the EU substantially from an estimated 470,000 in 2011 to 910,000 between September 2013 and August 2014. The biggest plus came from Pakistan. One company in this country started to export bicycles to the EU in 2013 and between September 2013 and August 2014 it shipped 190,000 units.

Abandoned production

As part of the investigation the European Commission performed on-spot verifications in the factories. On one location they even found that the production ceased after their first visit. “When the Commission came back for a second visit the frames were abandoned in the chemical treatment area and the electricity was shut down in the painting department while the frames were not completely painted, without any apparent justification. To the contrary, such discontinuation of the production could have a significant impact on the quality of the finished frames, which is not in line with an economically rational production process,” reports the Commission.

On request of EBMA

The investigation concerning the possible circumvention of anti-dumping measures on imports of bicycles originating in the People’s Republic of China by means of transhipments via, and assembly operations in, Cambodia, the Philippines and Pakistan was announced last September. The European Commission started this procedure after it received a request from the European Bicycle Manufacturers Association (EBMA) on behalf of fifteen Union producers of bicycles.

The companies that are NOT exempted from the anti-dumping duty are from Cambodia: Asia Leader International (Cambodia) Co. Ltd. and Opaltech (Cambodia) Co. Ltd. From the Philippines is NOT exempted: Collie Cycle Inc. From Pakistan is NOT exempted: Great Cycle Pvt.

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