News Article

EU Announces Start of Anti-Subsidy Proceeding on E-Bike Imports from China

Laws & Regulations

BRUSSELS, Belgium – Today the European Commission announced in the Official Journal of the European Union a “Notice of initiation of an anti-subsidy proceeding concerning imports of electric bicycles originating in the People’s Republic of China.” This investigation into illegal subsidy schemes will run parallel with the anti-dumping investigation announced earlier.

EU Announces Start of Anti-Subsidy Proceeding on E-Bike Imports from China
EU anti-subsidy investigation runs parallel with anti-dumping investigation. Both end on 20th January, 2019. – Photo EBMA

The European Commission is starting the anti-subsidy investigation after receiving a complaint that was lodged on 8 November 2017 by the European Bicycle Manufacturers Association (EBMA) on behalf of EU producers representing more than 25 % of the total Union production of electric bicycles.

‘Sufficient evidence’

According to the EU Notice “The complaint includes sufficient evidence that the producers of the product under investigation from the country concerned have benefitted from a number of subsidies granted by the Government of the People’s Republic of China.”
The EU Notice lists the alleged subsidies as direct transfers of funds, government revenue forgone or not collected, and government provision of goods or services for less than adequate remuneration.

It is further said in the EU Notice “The complaint contained evidence, for example, of various grants as subsidies for environmental protection and subsidies for technology, innovation and development; provision of loans and credit lines provided by State-owned banks and other financial institutions at preferential terms, and provision of export credits and export guarantees and insurance by State-owned banks and other financial institutions; income tax reductions and exemptions, import tariff rebates and VAT exemptions and rebates; and government provision of land and energy for less than adequate remuneration.”

The Notice further stipulates that the Commission “prepared a memorandum on sufficiency of evidence containing the Commission’s assessment on all the evidence at its disposal and on the basis of which the Commission initiates the investigation. This memorandum can be found in the file for inspection by interested parties.”

Investigations conclude January 2019

As said this new anti-subsidy investigation will run parallel to the one on anti-dumping. According to EU rules an anti-subsidy investigation lasts 13 months. The anti-dumping investigation must conclude after 15 months. This means that both end on 20th January, 2019. However, the statutory time schedule for dumping investigations carried out by the European Commission provides for the imposition of a provisional anti-dumping duty within nine months depending on the investigators’ finding. This means that an e-bike dumping duty could already be in place by July 2018.

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