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

[Wisper Bikes]

The Light Electric Vehicle Association EU are putting in a very comprehensive case against Anti Dumping today. They believe, as we all do that is is completely unjust and simply three or four big players trying to get a strangle hold on the market.

The case LEVA-EU on behalf of European importers are putting is very comprehensive and has a strong chance of winning the day. Bafang and the Chinese Chamber of Commerce have also put in strong arguments asking questions that quite frankly cannot be answered.

All we need now is as many voices against this travesty as possible. We could still win the day.

After today no other testaments or protests will be considered.

As far as I can ascertain only five EBike manufacturers / importers in the UK have supported LEVA in their action.

Axis
B Spoke
E Bikes Direct
EMU
Wisper

Does everyone realise that if this goes ahead, there will be an immediate call for anti circumvention to come into place. If this happens, motors batteries and most parts will only be allowed into the UK and other EU members with the anti dumping levy applied. This will put an estimated 50% onto the price of ebike parts, kits and full electric bikes coming in from China. This will in turn only have one consequence, it will certainly drive up the price of ALL electric bikes.

Fortunately we have our new Taiwanese eMTB range to fall back on but many ebike distributors and retail companies in the UK will be wiped out.

If you are a business that relies on Chinese ebike parts or complete bikes to keep in business, today is the last chance to make your voice heard.

If you have any commercial interest in saving this sector of the eBike market place please contact:

Annick Roetynck
Light Electric Vehicle Association of Europe
leva-eu@telenet.be

Annick will send you the forms for your signature immediately.

She needs your signature today.

 

[Woosh]

David,

Under normal circumstance, we would have had no hesitation to sign up to show our solidarity. However, after reading the complaint document, we are a little divided on this issue, so we will abstain this time.

Best wishes,

Tony

 

[Wisper Bikes]

Wow!

What is it exactly that bothers you? You have one chance.

When you say "this time" Tony, if we lose do you think there will be a next time?

Woosh is one of the businesses that will have to close. Many here love your bikes, it would be such a shame.

 

[Woosh]

David,

I read very carefully the arguments put forward by the complainants.
They have about 30% of unused capacity at the moment, although the market is growing at an accelerated pace.
Competition from China puts EU manufacturers into a corner. China has the capacity and the technology to wipe them out completely within a generation.
The EU will have to consider if ADD needs to be applied to stop the EU manufacturers to be wiped out.
As I explained some time ago, I have looked at the cost of assembling in the UK and put it at £75 per bike. We can transit to assembling in the UK economically if the EU slaps 10% ADD on Chinese bikes.

 

[Wisper Bikes]

Thanks to FreeGo who have just joined in!

 

[Wisper Bikes]

Hi Tony,

Just a couple of points that may be of relevance.

1. The earliest date that the Tariffs could be imposed is 20th December 2017, in about three weeks.

2. If the first part goes through on whole ebikes, the second application, on circumvention, which will include all ebikes parts made in China will follow very quickly.

All the best, David

 

[Wisper Bikes]

We are set up to make bikes in Spain or Portugal now at a few weeks notice, it the restriction on parts that is seriously worrying me.

 

[Woosh]

Hi Tony,

Just a couple of points that may be of relevance.

1. The earliest date that the Tariffs could be imposed is 20th December 2017, in about three weeks.

2. If the first part goes through on whole ebikes, the second application, on circumvention, which will include all ebikes parts made in China will follow very quickly.

All the best, David

it does not matter, really.
but even so, 1) could well drag on for ages with representations on both sides. From the Chinese side, e-bikes should be on the green product list and there will be plenty of producers willing to supply their audited accounts to be excluded from ADD. 2) I doubt that circumvention will amount to much. At the moment, batteries come under HS code 8507600090 at 2.7%, there is no reason for that to be changed because we can assemble batteries for not far off the Chinese price, motor wheels come under HS code 8714999089, it's not mid mount motor, unlikely to be hit by ADD.

 

[Wisper Bikes]

Thanks to Volt, who have also joined in!

 

[Wisper Bikes]

it does not matter, really.
but even so, 1) could well drag on for ages with representations on both sides. From the Chinese side, e-bikes should be on the green product list and there will be plenty of producers willing to supply their audited accounts to be excluded from ADD. 2) I doubt that circumvention will amount to much. At the moment, batteries come under HS code 8507600090 at 2.7%, there is no reason for that to be changed because we can assemble batteries for not far off the Chinese price, motor wheels come under HS code 8714999089, it's not mid mount motor, unlikely to be hit by ADD.

Well lets all sit back, touch wood and keep our fingers crossed!

 

[Wisper Bikes]

Thanks to Oxygen for joining the fight!

 

[Wisper Bikes]

Off to Barcelona this morning, to have a look at a new bike builder...... Just in case!

 

[Woosh]

Off to Barcelona this morning, to have a look at a new bike builder...... Just in case!

it's not so bad, is it?

 

[Wisper Bikes]

You may well have a point.

I am sitting in my room overlooking the sea and thinking maybe I could handle this. I would still be on the plane to China right now and for the next 6 hours!

All the best, David

 

[Kudoscycles]

You may well have a point.

I am sitting in my room overlooking the sea and thinking maybe I could handle this. I would still be on the plane to China right now and for the next 6 hours!

All the best, David

David,good luck with the e-bike build facility....don't forget we all had a bad time with the e-bikes built elsewhere in Spain,not in Barcelona,the builder was well known to you....at the end we realised they were actually built in Shanghai.
The EBMA have been very clever in leaving the implementation date open but also 3 months retrospective,It makes ordering bikes from China so risky,I thought the first possible date was April 2018,3 months before July 2018 but you say it could be December 2017. The thought of possibly being hit by a 74% duty incl vat has put me off buying any more bikes. I have enough stock to last 12 months if they trickle out,by then this Brexit stupidity and anti dumping duty thing should have a conclusion,good or bad.
I had my boat in Barcelona for a few years,loved the city....there is a restaurant named 'La Gavina' opposite Marina Port Vell,great for seafood paella,everyone eats late.
Apologies for not joining in with this battle but I have a big project elsewhere that is occupying my time,fortunately it is low tariff so not affected by the EU protectionism....I am still a Remainer but I must say the EU is showing that it only looks after their club,just can't imagine what we are going to come out of Brexit with.
Good luck.
KudosDave

 

[Wisper Bikes]

Latest news as our group of ebike importers takes on the might of the big producers in Europe.

Bike Europe Headline Today

E-Bike Importers Unify and Submit Comments to EU on EBMA’s Dumping Complaint
Laws & Regulations 1803

GAND, Belgium – Currently 21 importers of electric bicycles from 7 EU member states (the number is still growing) have joined forces in the “Collective of European Importers of Electric Bicycles”. Last Sunday, this Collective has submitted their Preliminary Comments to the European Commission on the EBMA Complaint and the EU anti-dumping Proceeding concerning imports of electric bicycles originating in the People’s Republic of China.

http://www.bike-eu.com/laws-regulations/nieuws/2017/11/e-bike-importers-unify-and-submit-comments-to-eu-on-ebmas-dumping-complaint-10132133

 

[Woosh]

you can find the counter argument in this submission of the Collective of European Importers:

http://bike-eu.com.s3-eu-central-1.amazonaws.com/app/uploads/2017/11/Submission-Collective-European-Importers.pdf

 

[Wisper Bikes]

Hey we may not be strong enough to beat this but at least we tried. It’s a bit “David and Goliath”!

Thanks to all the brands who have got behind the action. It was a lot of cash to outlay, especially at this time of year, to join in and help with the fighting fund. All much appreciated.

If we can keep the price of Ebikes down in the U.K. it will have been worthwhile.

All the best, David

 

[Wisper Bikes]

WHY LEVA-EU ASSISTS THE COLLECTIVE OF EUROPEAN IMPORTERS IN AD643
Posted on November 30, 2017 by AR - EU in European organisations, European Rules and Regulations, LEV market

The Collective of European Importers of Electric Bicycles has requested LEVA-EU to assist them in their defence in AD643 against e-bikes from China. Upon careful consideration, LEVA-EU has decided to accept this task for the following reasons.

LEVA-EU is open to any party wanting to join in on the promotion of LEVs, including electric bicycles in Europe. LEVA-EU welcomes manufacturers, importers, exporters, distributors, dealers, … alike, provided they share LEVA-EU’s belief in LEVs and agree to work together to grow the market.

Having read the complaint, LEVA-EU has concluded that this initiative is not aimed at growing the market. It is an attempt to ensure a bigger piece of the market for some parties. For that purpose, the popular and currently well-used tactic of “us” against “them” is put in position. AD643 is meant to be read as a battle of European manufacturers against Chinese manufacturers. So, their assumption is: if you are European, you know which camp to support, because that is the camp that provides economic growth, jobs, etc. What’s more, they believe that as a European you should fight against the Chinese manufacturers. They believe their sole purpose is to kill off the European manufacturers, take all production to China and leave Europe with, yet another, economic and industrial wasteland.

Golden opportunity

LEVA-EU rather believes that there is a golden opportunity, which is far more real than the risks outlined by European manufacturers, but which unfortunately remains largely untapped.

Perhaps in 1993 the world was effectively still that simple. But today, 24 years later, the world has changed beyond imagination. The old demarcation separating “us” from “them” has become meaningless. European manufacturers are importing components from outside Europe on an unprecedented scale. Some are, in addition to their own assembly, also importing complete electric bicycles. Globalization and Internet have yielded so much more than just some opportunistic imports of crappy e-bikes. There are new entrepreneurs coming into the business, who are developing innovative and disruptive ideas and business models. They no longer abide by the traditional supply chains but work on principles, which are driven by developments and technologies based on new concepts such as mobility as a service. They shop around the world for components and assembly, whilst devising business models that include leasing, sharing, conventional sales which combine points of sales, Internet, home delivery, … They are flexible, open-minded and very aware that they are working with a golden opportunity in the framework of issues such as mobility, transport, air quality, public health, etc.

Wrong enemy

Companies that keep clinging to old industrial adages are missing out on this golden opportunity. They have a quality product that sells well, and the objective is to stretch this success to a maximum. However, today, the world is moving too fast for such conservatism.

With all due respect, Europe does not need any conferences on and initiatives about bringing production back to the old continent. Europe needs conferences and initiatives on R&D, on innovating business models, on how to push LEV uptake, on how to encourage/help start-ups, on how to cooperate with the scientific/academic world, on setting up alliances with cities and citizens’ organizations, … And should that result in the conclusion that it may be useful to start up production in Europe, fine. But not defying all economic reality by bringing back production just out of nostalgia.

Ironically, in trying to preserve their position, these companies attack the wrong enemy. Importers, overseas producers, new companies applying new business models, … they are not the enemy.

Growing the market

Whilst the European industry files anti-dumping complaints and works hard to keep existing measures in place, an ever growing peloton of cities in Europe limits, sometimes even pushes combustion engine vehicles out. Every congestion charge, every low emission zone, every SUMP is a gift to the LEV-business. New markets are being opened, for free, every day all over Europe. But instead of tapping on that ever growing potential, a dumping complaint is filed, which prevents all parties in the sector to work on that potential.

Dumping cases are so time-consuming that hardly any time is left to do the work that really needs doing. LEVA-EU is trying to do that: work for better technical regulations, ask for attention in policies relevant to LEVAs, in European subsidy programmes, work to inform companies on the rules and on the market, ….

Our ultimate objective is to prove how counter-productive it is to use trade defence instruments for purposes other than what they are really meant for. If LEVA-EU can achieve that by supporting companies going against this counterproductive initiative, then we improve chances to get the whole sector around the table and start a serious discussion about how to grow the market for all instead of making only some pieces of the cake bigger.

Annick Roetynck,
LEVA-EU Manager

Here, here!

All the best, David

 

[Wisper Bikes]

Importers Warn of E-Bike Shortages in Dumping Case
Laws & Regulations 1762

GENT, Belgium – The “Collective of European Importers of Electric Bicycles” is warning of considerable damage to the whole European electric bicycle business which could result from the current and anticipated proceedings against the import of e-bikes originating in China. The Importers Collective further explains that warning in a press release that was issued yesterday.

Warning of e-bike drive system shortages resulting from anti-circumvention measures. – Photo Bike Europe
21 importers from 7 EU member states have joined forces for their defence in the anti-dumping proceeding on electric bikes from China. On 26 November, the Collective of European Importers of Electric Bicycles has sent preliminary comments to the European Commission to counterargue the European Bicycle Manufacturers’ Association (EBMA) complaint. Bike Europe reported on that last Tuesday.

Importers Collective’s press release
Yesterday, the Collective issued a press release on their actions against the dumping complaint, which EBMA filed with the European Commission and which resulted in Brussels starting an anti-dumping proceeding on e-bike imports from China. The Importers Collective’s press release is in full available for download.

Download the press-release of the Collective of European Importers of Electric Bicycles

‘Anti-circumvention complaint in the making’
In their press release the Importers Collective states that next to potential anti-dumping duties, they expect more to come, more specifically anti-circumvention. As for the reasoning behind this, the press release states “The (EBMA) complaint holds 19 references to Bosch and 17 to Bafang. Whilst extensive references are made to Bosch to make the case for dumping, Bafang is accused at length of among other things subsidization without any evidence being produced. Apart from the fact that subsidization allegations do not belong in an anti-dumping complaint, this argument strengthens the Collective’s impression that this complaint is an anti-circumvention complaint in the making.”

Warning for e-bike drive system shortages
The press release continues on this issue with “The Collective warns that should anti-dumping duties be followed by anti-circumvention measures, then the whole European electric bicycles business, including the European producers of electric bicycles will sustain very considerable damage. The production of components for electric bicycles in Europe is by no means at a level to supply the demand that would result from anti-circumvention measures. The consequences of such shortage would be incalculable. Reduction of competition may well further deteriorate into the creation of monopolies.”

Anti-circumvention duties
The Importers Collective’s warning is related to the fact that should the anti-dumping duties be followed by anti-circumvention measures, this will result in a huge drop in the import into the EU of made in China drive systems. This would be the likely result should the import of made in China e-bike components made subject to the same anti-dumping duties as (potentially) to be enforced on complete e-bikes imported from China.

Similar measures as for conventional bikes
Currently such measures are enforced on the import of made in China components for conventional bicycles. The same 48.5% anti-dumping duty is levied on for instance made in China frames & forks for bicycles as on the import of complete bikes imported from China. However, bicycle producers in the European Union and who, for that purpose, import for instance frames and forks made in China, may apply for an exemption on the anti-circumvention duties.

This exemption rule is massively being used by EU bicycle makers. There is however one basic condition for this exemption. The condition is that China made components may not constitute more than 59% of the total value of all parts of the assembled bike. When taking into consideration the value of made in China drive systems, it will become extremely difficult, if not impossible to produce e-bikes in Europe whilst limiting the use of Chinese components to 59%. The remaining 41% components value do not necessarily have to be European parts. They may be sourced anywhere else in the world.