News Article

EBMA Urges EU To Register Imports as China Made E-Bikes Are ‘Stockpiled’

Laws & Regulations

BRUSSELS, Belgium – On January 31 the European Bicycle Manufacturers Association (EBMA) mailed a letter in which it urged the European Commission to urgently start the registration of e-bike imports from China. EBMA argues that “Chinese exporters will entirely undermine the remedial effect of (potential provisional) measures by stockpiling massive volumes of EPACs (e-bikes) in the EU.”

EBMA Urges EU To Register Imports as China Made E-Bikes Are ‘Stockpiled’
Source: EU Commission

Already in EBMA’s dumping complaint on e-bikes imported from China, which was lodged on 7 September 2017 and on which the association reported through a press release about one month later, it said “The European Commission must stop China dumping e-bikes and immediately register imports so anti-dumping duties can be applied retroactively.” In its January 31, 2018 letter EBMA repeats that request and is arguing that there’s an “Alarming trend clearly indicating that Chinese EPAC producers and their importers are stockpiling e-bikes for the 2018 season.”

The EU manufacturers’ Association also emphasized in its late January letter that “Allowing stockpiling would undermine the remedial effect of potential provisional anti-dumping duties.”

Provisional anti-dumping duties

Such provisional anti-dumping duties could already be in place next July. The statutory time schedule for dumping investigations carried out by the European Commission provides for the imposition of a provisional anti-dumping duty by then. Of course this is depending on the investigators’ findings. Fears for such a provisional duty is pushing e-bike imports from China to new highs, stated EBMA that substantiates these claims by comparing 2017 with 2016 export statistics obtained from Chinese customs.

83% export growth

These statistics show that e-bike export from China grew by 83% in 2017 compared to 2016. A total of close to 793,000 e-bikes were exported to the European Union’s 28 member states; up 83% on the 434,000 total of 2016.

Detailing further on the China customs’ export statistics EBMA stated in its late January 2018 letter ”In July and December 2017, exports of EPACs from China spiked by over 140% and 143%, respectively as compared to July and December 2016. This trend is highly worrying, as these developments since the Investigations Periods of the Ant-dumping and Anti-Subsidy complaints and the initial and updated requests for registration clearly indicate that Chinese EPAC producers and their importers are stockpiling e-bikes for the 2018 season.”

Furthermore EBMA argued that “Already low average prices decreased by 8%, despite the fact that the percentage of mid-engine e-MTBs strongly increased in the product mix of Chinese EPACs exports. Normally, these e-bikes should be significantly higher priced than e-city bikes with hub engines, which were the main EPAC types exported by Chinese producers to the EU at the beginning of the period under investigation.”

2018 and 2019 selling seasons

Another argument brought forward by EBMA in the named letter says “By the time the provisional anti-dumping measures would be imposed, a large part of the 2018 season would already be over and the piled up stocks would be more than sufficient to sell Chinese EPACs throughout the remainder of the 2018 season and possibly part of the 2019 season free of AD duties. This would severely harm EU EPAC producers. Registration is therefore urgently needed to protect the EU industry from having to compete another season with unfairly priced dumped and subsidised imports, and consequently continuing to lose market share in 2018 at the same pace as in 2017.

“In sum, there is a clear and urgent need for registration of imports and registration would not disproportionally disadvantage EU importers, as they have clearly been alerted about the Chinese exporting producers’ unfair trade practices (and to the extent they continue to stockpile, they have consciously assumed the related commercial risks). Accordingly, EBMA respectfully requests that the Commission give instructions to the customs authorities of the EU Member States to register EPAC imports from China as soon as possible.”

Comment on this article