No Provisional Anti-Subsidy Measures for Chinese E-Bike Exporters
BRUSSELS, Belgium – Last Friday, an important deadline expired in the anti-dumping case regarding the import of e-bikes from China. 21 September was the last day on which the European Commission could proclaim provisional anti-subsidy duties against Chinese e-bike exporters. The fact that this did not take place does not mean that no anti-subsidy measures can be imposed.
On 21 December 2017 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 is running parallel with the anti-dumping investigation which were announced earlier; on 20 October 2017.
Both notices of the initiation of investigations by the EU are available for download on this page.
Deadline for provisional measures
Statutory time schedules set by the EU for both investigations provide for the possibility of imposing provisional measurers which “Latest date for entry into force of provisional measures is 9 months from initiation,” says the EU. As said, on 21 December 2017 the investigation on subsidized export of made in China e-bikes was started meaning that 9 months later, on 21 September 2018 provisional measures had to be announced.
LEVA-EU in tweet
On why the European Commission didn’t announce them, contrary to the provisional anti-dumping measures on e-bikes imported from China, the Light Electric Vehicle Association (LEVA-EU) who is representing the Collective of European Importers of Electric Bicycles, said in a 24 September tweet “No provisional countervailing measures in anti-subsidy case against import of e-bikes China! Commission refers to complexity of the case and number of interested parties.”
Bike Europe asked Moreno Fioravanti, Secretary General of the European Bicycle Manufacturers Association (EBMA) on a reaction to the news on the anti-subsidy measures, He says “It would be a mistake to read too much into the lack of provisional anti-subsidy measures. Indeed, the general practice of the Commission is not to impose provisional anti-subsidy measures in parallel Anti-Dumping and Anti-Subsidy proceedings where the provisional Anti-Dumping measures are already limited by the injury margin, as in the present case. There are certainly no indications that the Commission is not finding substantial subsidies.”
Investigations conclude January 2019
As said the anti-subsidy investigation is running 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. Before that date (ultimately on 19 January) the European Commission must report on its findings and must announce if it is imposing definitive anti-dumping duties as well as anti-subsidy duties.