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EU Commission Makes E-Bike Import from China Subject to Registration

Laws & Regulations

BRUSSELS, Belgium – Today, by publication in the European Union’s Official Journal, the EU Commission is making imports of electric bicycles originating in the People’s Republic of China subject to registration. The EU Commission is not yet imposing provisional anti-dumping measures. But they are likely to follow as the today published EU document seems to agree to all allegations made by the EU industry.

EU Commission Makes E-Bike Import from China Subject to Registration
Provisional anti-dumping measures are likely to follow as today’s published EU document seems to agree to all allegations made by EU industry. – Photo Bike Europe

With today’s publication the EU is making e-bikes subject to registration that are originating in the Peoples Republic of China (PRC) which are “falling within CN codes 8711 60 10 and ex 8711 60 90 (TARIC code 8711 60 90 10).”

Grounds for registration

The EU document says on the grounds for registration “The Commission has at its disposal sufficient evidence that imports of the product concerned from the PRC are being dumped. The evidence of dumping is based on a comparison of the normal value thus established with the export price (at ex-works level) of the product concerned when sold for export to the Union. As a whole, and given the extent of the alleged dumping margins ranging from 193 % to 430 %, this evidence provides sufficient support at this stage that the exporting producers practice dumping.”

The EU document also stipulates that “The complaint also provided sufficient evidence of alleged injury showing a steep decline of the market share of the Union Industry from 42,5 % in 2014 to 28,6 % in the period used for the complaint, depressed and declining levels of profitability from 3,4 % of turnover in 2014 to 2,1 % in the period used for the complaint as well as underselling calculations ranging from 153 % to 206 %. The Commission thus concluded that the first criterion for registration was met with respect to the dumping part of the request.”

Verdict on data use

As for the discussion on the data use by EBMA to support its case, the EU document says “In its analysis, the Commission therefore considered that the Chinese customs’ export data provided sufficient prima facie evidence of imports into the Union with a two-month delay for shipment. To determine the amount of imports during the investigation period (i.e. 1 October 2016 – 30 September 2017), the Commission thus used the Chinese export data between August 2016 and July 2017. The volume of exports from the PRC to the Union increased by 82 % in the period from November 2017 to February 2018 when compared to the period from November 2016 to February 2017. In addition, the average monthly volume of exports from the PRC to the Union in the period from November 2017 to February 2018 was 64 % higher than the average monthly volume of imports to the Union during the investigation period. The Commission considered that these figures provided evidence of a substantial increase in imports.”

The EU also goes along with the allegations made by EBMA on subsidies provided by the Chinese government to e-bike exporting companies. The document says on that “The available evidence at this stage shows that the exports of the product concerned are benefiting from countervailable subsidies. Furthermore, the Commission has at its disposal sufficient evidence that the exporting producers’ subsidy practices are causing material injury to the Union industry. At this stage of the investigation is not yet possible to estimate the amount of subsidisation. The allegations in the complaint requesting the initiation of an anti-subsidy investigation estimate the injury elimination level to represent 189 % for the product concerned. The amount of possible future liability is set at the level of the injury elimination level estimated on the basis of the anti-subsidy complaint, namely 189 % ad valorem on the CIF import value of the product concerned.”

The EU document ends with “Registration shall expire nine months following the date of entry into force of this Regulation. All interested parties are invited to make their views known in writing, to provide supporting evidence or to request to be heard within 21 days from the date of publication of this Regulation. This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.”

For more see the EU document placed on this page below:

CELEX_32018R0671_EN_TXT

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