83.6% Anti-Dumping Tariff on Chinese E-bike. Where the Market will go?

[Wisper Bikes]

It's unbelievable, tax on tax on tax!

It does not make me want to leave the EU, just try and control the accesses of the EBMA and their protectionism racket, it's the EBMA that have done this to you, not the EU.

This is what we have been fighting and continue to fight on your behalf along with the rest of the European E bike import industry,

 

[anotherkiwi]

The EU would work better if we shut down lobbying offices in Brussels! We are copying the US model and it will lead to the same end result...

I am pretty sure that tax on tax is illegal if you check the appropriate sites?

 

[Woosh]

I am pretty sure that tax on tax is illegal if you check the appropriate sites?

do you want to argue with HMRC?

TBH, I was unlucky because the MSC Maersk Zoe got bumped off Felixstowe 10 days ago.
Anyway, I placed a new order today for the next lot of bikes in parts to be re-assembled in Southend.
Ideally, I'd like to partner with an European bike manufacturers, buy their last season stock and convert them to e-bikes.

 

[anotherkiwi]

Apparently Intersport was having problems keeping up with demand.

I have seen this up close and it isn't too bad, just needs a decent hydraulic front brake and a NCX/favorite saddle:

 

[flecc]

I am pretty sure that tax on tax is illegal if you check the appropriate sites?

The UK certainly has a long established principle of no double taxation, but no law against it that I know of. It's dependant on the Treasury and Chancellors avoiding it.
.

 

[Wander]

Tax on tax happens all the time.

Think VAT on fuel, after Petroleum Revenue Tax.

Or Stamp Duty on commercial leases rent calculated on the VAT inclusive rent.

Or several other examples.

 

[tommie]

And of course on top of all that the EU`s tax on the incoming Third Party ebike insurance scheme !!

 

[flecc]

And of course on top of all that the EU`s tax on the incoming Third Party ebike insurance scheme !!

That insurance won't happen, but in any case it's the UK who impose the tax on all insurances, introduced by Kenneth Clarke when Chancellor in 1993 at 2.5%.

Successive Chancellors have increased it by stages ever since, Philip Hammond last time to 12%, almost five times the original.

Once again, the EU wrongly blamed for UK actions.
.

 

[Kudoscycles]

I just paid anti dumping duty this morning.
You pay normal duty and VAT, they are under A00 on the C88 form.
Then you pay 37% AD levy, + 20% VAT on the levy, they are B00 on the C88 form.
If your e-bike costs £500, you pay:
A00: £30 duty, £106 VAT
B00: £185 duty, £37 VAT
Total duty: £215
Total VAT: £143
Total taxes: £358

So the bike arrives at my shop costing me already £858. How much do you think I should sell it for to pay my staff?

The UK will remit 80% of duty to the EU, that is £172 on your bike, or 34.5% of your purchase.

Does it make you want to leave the EU/Customs Union/Single Market? I wonder.

You reclaim the vat,but I respect that you have to cash flow it until the next reclaim period. I feel for you,it was a risk continuing with orders and you were unlucky.
Many of the Chinese builders have already set up European assembly operations,we just need for these to settle down and maybe that is the system for the future.
I am content to let my bikes go out slowly and stock will last until an obvious resolution is forthcoming.
KudosDave

 

[Wisper Bikes]

do you want to argue with HMRC?

TBH, I was unlucky because the MSC Maersk Zoe got bumped off Felixstowe 10 days ago.
Anyway, I placed a new order today for the next lot of bikes in parts to be re-assembled in Southend.
Ideally, I'd like to partner with an European bike manufacturers, buy their last season stock and convert them to e-bikes.

Hi Woosh, please be careful, I have recently had an email from HMRC saying it does not matter if the bikes are bought in KD or PKD they will still consider them as ebikes and they will still apply the 37% ADT deposit.

All the best, David

 

[Woosh]

I thought it may come to that but as I ship in batteries and wheels separately with my kits, I don't think HMRC could argue it's a CKD or PKD bike.

 

[Wisper Bikes]

What's the best email for you? Ill send the documents. The danger you will enter and what I understand to be the case is that if you are not charged the 37% eBike deposit you will be charged the 48.5% full ADT on bike parts.

 

[Woosh]

What's the best email for you?

thank you kindly. Email: support@wooshbikes.co.uk - Andy and me have access to the same mailbox.

 

[Woosh]

Rules for SKD and PKD:

QUOTE:

In brief, for what concerns the classification rules held applicable to imports of components for vehicles assembly (Chapter 87), GIR n. 2 (a) can apply if components are simultaneously presented to customs for clearance.
The definition of the terms simultaneously presented to customs for clearance hasn’t been the object of an official interpretation. But GIR n. 2 (a) shouldn’t be applied to split consignments of vehicle components (Cap. 87) which are not presented to customs clearance at the same time. This possibility is indeed not covered, in the EU, by a specific provision neither in the Notes to the Section XVII of the customs Tariff nor in the notes to chapter 87.
For what concerns the possibility to consider the split consignments as an abusive practice, it should be noted that the latter should not apply to the extent that the importer is able to demonstrate the existence of valid non-fiscal reasons, not negligible, underpinning the decision to split the consignments.

 

[Kudoscycles]

You have to admit that the EU have done a good job of forcing the prices up to levels where the European builders can now earn big profits on bikes.
We in the U.K. are particularly adversely affected because we don’t have a bike industry of our own.....all bikes sold are imported from somewhere,whether it be China or Europe.
We do need our own bike industry and then do a Trump and put 37% tariff on all EU to U.K. bike exports,that will stitch up the German and Italian bike assemblers. We won’t,of course,because unlike the EU we are not that good at this trade war stuff,HMRC and our government are only good at abiding by the rules not bending them to our advantage.
KudosDave

 

[Woosh]

I put up my prices £100 per bike (that's enough to cover extra shipping and re-assembly cost) after the 37% anti dumping levy was collected.
Early indication is that results to about 10% lost sales, mainly on the Rio MTB, due to too much competitive products already in the channels.

 

[tommie]

You have to admit that the EU have done a good job of forcing the prices up to levels where the European builders can now earn big profits on bikes.

Only if there are enough gullible slobs out there that are willing to pay premium prices for what is in reality cheap chinese tat.

 

[Julie]

Gullible slobs. Wow

 

[Kudoscycles]

As if the anti-dumping duty wasnt bad enough....now since Liam Fox opened his big gob about no-deal brexit, the pound is falling again against the US dollar....this will push up the price of chinese e-bikes and therefore the anti-dumping duty will be more.
Obviously this will also push up the prices of all dollar sourced product,just at the time when the shops will be ordering christmas stock,another hit on the ever suffering high street.
KudosDave

 

[Kudoscycles]

I am surprised that any e-bike importers want to carry on...its not an easy product to sell,the anti-dumping duty and low pound,it is bulky to ship and store,the difficulty of shipping lithium batteries and that most UK customers want to buy as cheaply as possible-the threshold point seems to be £1000.00.
I would not be surprised if a lot of importers just give up.
KudosDave