EBMA files an anti dumping complaint on chinese e-bikes.

[Wisper Bikes]

Seems incredible that any bikes on the water could be hit with a nearly 200% dumping tariff. That will put a lot of people out of business.

Fortunately we have just received a container and one missed the ship last night.

 

[Wisper Bikes]

Thinking it through I am sure this cannot be the case. I will do a bit of research.

 

[Wisper Bikes]

Just Posted on European Council Website.

On 4 December, the Council approved new rules to help protect the EU against unfair trade practices. They will enter into force by 20 December.

This new anti-dumping methodology will identify and redress cases where prices of imported products are artificially lowered due to state intervention.

Today we are strengthening our anti-dumping toolkit to provide a fair trade environment for EU producers. The new rules will be crucial in ensuring that all our trading partners are selling us their products at undistorted prices, and that fair market competition is respected.

Urve Palo, Estonian minister responsible for trade
The new legal framework removes the former distinction between market and non-market economies for calculating dumping while maintaining the same level of protection for producers. The Commission will now need to prove the existence of a "significant market distortion" between a product's sale price and its production cost. On that basis, it will be allowed to set a price for the product by referring for example to the price of the good in a country with a similar level of economic development or to relevant undistorted international costs and prices.

The Commission will also draft specific reports on countries or sectors describing distortions. In line with current practice, it will be for EU firms to file complaints, but they will be able to use the Commission’s reports to support their case.

Next steps
The text adopted on 15 November by the European Parliament and on 4 December by the Council will be signed in Strasbourg on 13 December. The publication in the Official Journal of the regulation is expected on 19 December. It will enter into force one day later.

Background
The Commission proposed targeted amendments to the anti-dumping methodology in November 2016. This specific adaptation to the regulation on trade defence instruments - which is also in the process of being reviewed - is formulated in a country-neutral way and in full compliance with the EU's WTO obligations.

I would suggest that the ADT decision on ebikes is still in the pot. This seems to be Bike Europe being a little ambiguous?

 

[Woosh]

Seems incredible that any bikes on the water could be hit with a nearly 200% dumping tariff. That will put a lot of people out of business.

200% anti dumping levy means Chinese e-bikes will sell for 3 times their current prices.
Chinese bikes are currently about 15%-20% cheaper than their EU produced counterparts.
Don't forget, the newly introduced anti-dumping framework is fairer than the old one.

 

[oldtom]

Just Posted on European Council Website.

On 4 December, the Council approved new rules to help protect the EU against unfair trade practices. They will enter into force by 20 December.

This new anti-dumping methodology will identify and redress cases where prices of imported products are artificially lowered due to state intervention.

I read through the accompanying material David but I'm not clear at all about the effect this will have. I'm guessing that it will affect only those ebike sellers across the EU who source their products from China but does it apply (if I'm correct) to bicycle parts for assembly by third parties within the EU?

Forgive me for being a bit thick about this but on the one hand, it sounds like the death knell for half the UK ebike industry while on the other hand, it perhaps means a simple adjustment to circumvent the purpose of the new legislation. I really have no idea.

Tom

 

[Woosh]

it sounds like the death knell for half the UK ebike industry

We are not there yet.
First step is for the Commision to announce that there is a case to apply corrective measures to protect EU jobs.
Second step is to tell the UK to start registration of all imports carrying e-bike HS code.
Third step is for the Commission to announce the level of anti dumping levy.
Prices will go up then, not before.
Suppliers like ourselves will activate the changes to our imports if and when step 2 (registration) is announced.
If anti-dumping is introduced for Chinese e-bikes, I expect to put up our UK assembled bike price by £75 on an average bike to cover the cost of assembly in the UK.
They will still be competitively priced.

 

[Wisper Bikes]

200% anti dumping levy means Chinese e-bikes will sell for 3 times their current prices.
Chinese bikes are currently about 15%-20% cheaper than their EU produced counterparts.
Don't forget, the newly introduced anti-dumping framework is fairer than the old one.

You would be surprised, we can buy at about the same price as in China. The big issue will be the anti circumvention measures that will no doubt follow swiftly.

 

[Wisper Bikes]

I read through the accompanying material David but I'm not clear at all about the effect this will have. I'm guessing that it will affect only those ebike sellers across the EU who source their products from China but does it apply (if I'm correct) to bicycle parts for assembly by third parties within the EU?

Forgive me for being a bit thick about this but on the one hand, it sounds like the death knell for half the UK ebike industry while on the other hand, it perhaps means a simple adjustment to circumvent the purpose of the new legislation. I really have no idea.

Tom

Hi Tom, unfortunately the measures will probably be applied to bicycle parts out of China too. This is the main reason we are fighting so hard.

All the best, David

 

[Kudoscycles]

200% ,that is being spiteful....actually it doesn't matter what the percentage is above say 50%,after that it kills off imported e-bikes from China.
To manufacture in the UK and avoid the duty I think you have to input more than 59% locally,that is difficult bearing in mind most of us would buy frames,gears,battery and motor from China,not sure if labour can be included in that 59%?
This was inevitable,I have been involved in now 3 anti-dumping actions and despite the defenders putting up a good case the outcome was the EU put on duty and bigger than was anticipated.
Maybe Brexit will overcome ,if May decides to cancel these anti-dumping duties,will make cross border NI to Ireland bicycle sales....which is of course why the EU want 'regulatory alignment' to ensure that cheap product doesn't ship to the UK from Asia,duty free.
It will make current stock bikes quite valuable until stocks run out.
KudosDave

 

[KTM Bike Industries UK]

Hi Tom, unfortunately the measures will probably be applied to bicycle parts out of China too. This is the main reason we are fighting so hard.

All the best, David

Bicycle parts already covered, its why bicycle brands have been importing parts / frames from the far east and turning them into bikes inside the EU for years.

This is the reason the bicycle brands are in Europe currently, its just the eBike industry is about 15 years behind.

 

[Woosh]

To manufacture in the UK and avoid the duty I think you have to input more than 59% locally,that is difficult bearing in mind most of us would buy frames,gears,battery and motor from China,not sure if labour can be included in that 59%?

KTM has pointed out that bikes and bike parts are already covered.
Batteries can't be hit by anti-dumping, motors can't be hit by anti-dumping.
So the kits are pretty much safe from anti-dumping.
You buy the bikes and bolt the kits to them.
What's there to worry about?

 

[Wisper Bikes]

That's correct Dave, the bike needs to be 59% European made to build here. We will bring batteries in from a Polish supplier we've been dealing with for a few years now and that way we may be in a position to comply. Electric bike buildiers in China are currently inundated with orders, hoping to get bikes in before the ADT kicks in. Most order books are now full and closed, that also applied to parts suppliers.

I agree there is not much of a chance that sense will prevail in this case.

All the best, David

 

[Kudoscycles]

KTM has pointed out that bikes and bike parts are already covered.
Batteries can't be hit by anti-dumping, motors can't be hit by anti-dumping.
So the kits are pretty much safe from anti-dumping.
You buy the bikes and bolt the kits to them.
What's there to worry about?

Why are batteries and motors exempt?
Anyway,you are forgetting that non electric bikes are already subject to 54% duty.....I suppose you could down value the bikes value to avoid high duty cost ,bit messy.
KudosDave

 

[Woosh]

Anyway,you are forgetting that non electric bikes are already subject to 54% duty....

only the dirt cheap supermarket bikes for kiddies are imported from China, most quality bikes suitable for e-bike conversion are made elsewhere: Taiwan, Philippines, Morocco, Tunisia, Cambodia, Vietnam etc.
Really, you sound like project fear allover again.

 

[Woosh]

Why are batteries and motors exempt?

there are no anti dumping complaints on Lithium batteries and BLDC motors.

 

[Wisper Bikes]

I think you will find motors and batteries will be included. That's why Bosch were one of the instigators.

 

[Woosh]

I think you will find motors and batteries will be included. That's why Bosch were one of the instigators.

I disagree. If it was, they would have made the arguments specifically for e-bike components.
Project fear I think.

 

[KTM Bike Industries UK]

I think you will find motors and batteries will be included. That's why Bosch were one of the instigators.

I'm not sure what makes you think Bosch were involved, nothing I've seen indicates they were.

This came from the bike brands who currently pay on all the normal bicycles they bring in, and have invested in EU factories to get round it.

All they are looking for I suspect is a level playing field.

If eBike brands build them in the EU they'll have no issues.

I don't think the motors / batteries will be effected (well any more / less than normal cycle components). Shimano have a huge / growing interest in the eBike market and I don't think they manufacture in the EU do they? So they might (worst case) be subject to the same duty that all normal cycling components are subject to (which is less than complete bikes).

 

[Kudoscycles]

only the dirt cheap supermarket bikes for kiddies are imported from China, most quality bikes suitable for e-bike conversion are made elsewhere: Taiwan, Philippines, Morocco, Tunisia, Cambodia, Vietnam etc.
Really, you sound like project fear allover again.

I have learnt in life never to be a pioneer,better to wait until someone else makes a success or failure then copy or modify.Look forward to being a spectator whilst others experiment,hehe.
One of my Chinese suppliers makes some beautiful bicycles with specs equal to the best of the Italian brands,they are cheaper but not especially so and when the 54 % duty is added not really competitive so I avoided buying them.
Project Fear was an awful programme...if the public were told that the other side of the big red bus had minus £50 billion written on it,the vote may have been entirely different.
KudosDave

 

[Izzyekerslike]

it is a pretty futile exercise from the EBMA - in a few years, Bosch may have to go back to making washing machines and fridges.

Along with a huge quantity of poor quality unreliable car parts!