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

[Woosh]

Be careful. Registration of e-bikes has already started, as of 1st May 2018.

I did not receive any notification from C&E yet.

 

[Wisper Bikes]

Nor me. But it has 100% happened. We are challenging it now. We have said that this could put SME importers out of business, which of course is what the EBMA want. What ever the outcome, they have played a very neat game, completely messing up the industry and driving prices up. We will be adding £100.00 to our retail prices next month as we start to make the bikes in Kent.

 

[Wisper Bikes]

Anti-dumping measures: “A modern way of addressing unfair trading practices”

30-05-2018 - 14:05

Protecting workers and businesses against unfair competition
The EU could impose higher tariffs on unfairly cheap imports from non-EU countries, under new rules adopted by MEPs on Wednesday 30 May. We talked to Christofer Fjellner, the MEP in charge.

The Swedish EPP member is responsible for steering the legislation, which will help the EU combat dumped and subsided imports more effectively, through Parliament. The new law should help to make investigations into anti-dumping cases shorter, while a helpdesk for SMEs will also be set up. We asked Fjellner to tell us more about the new legislation.

Globally there has been a trend towards more trade protection recently. What difference will the new rules make?

One of my personal objectives was that while we update our trade defence instruments, we don’t make them protectionist. And I think we have succeeded in that. We have a new, more modern way of addressing unfair trading practices without being protectionist.

In the negotiations with the Council, Parliament managed to secure a helpdesk for SMEs. Why is it needed and what will it do?

It will help small and medium companies file complaints against unfair trading practices. Today we see that big companies, mostly multinationals, mainly use anti-dumping rules to try to stop competition from dumped or subsidised goods. No matter how one views these instruments, we in the Parliament think it important that everybody has equal access to them. Therefore, it was important to establish assistance to SMEs to help them understand and use these complicated instruments.

Is it becoming more difficult for the EU to strike the right balance between promoting free trade and protecting its own companies?

The struggle between free trade and protectionism has gone on for centuries in Europe and globally. Right now, globally protectionism seems to have the upper hand, but I think we have reasons to be proud in Europe that we haven’t taken that route. We have been able to stand firm behind rule-based trade and an open trading system. It becomes more difficult when others like the US now don’t play by the rules. I think we have done a good job so far, but the struggle will continue, probably for another couple of centuries.

None the wiser!

All the best, David

 

[Woosh]

Christofer Fjellner, the MEP in charge

more waffles.
If he wanted to do something positive, he would have intervened.
let's see how much ADD they are going to slap on e-bikes.
I reckon the real battle is on the anti-circumvention measures.

 

[flecc]

We talked to Christofer Fjellner, the MEP in charge.

He appears to be trying to convince that the EU ensures anti-dumping measures aren't used to stifle competition.

I wonder if he knows the old adage, "If it walks like a duck, swims like a duck and looks like a duck", it probably is a duck.
.

 

[shemozzle999]

I wonder if this was considered by the Commission as part of the impact assessment as it effects many disadvantaged users of ebikes i.e.

http://ec.europa.eu/social/main.jsp?catId=1202

Businesses will benefit from:

common rules on accessibility in the EU leading to costs reduction

 

[KTM Bike Industries UK]

Just so you know its not being targeted at Chinese eBikes... its something the whole bike industry has been dealing with for years.

This from yesterday.

http://www.bike-eu.com/laws-regulations/nieuws/2018/06/eu-starts-review-anti-dumping-measures-regular-bicycle-imports-china-10133846

 

[Woosh]

Just so you know its not being targeted at Chinese eBikes... its something the whole bike industry has been dealing with for years.

This from yesterday.

http://www.bike-eu.com/laws-regulations/nieuws/2018/06/eu-starts-review-anti-dumping-measures-regular-bicycle-imports-china-10133846

I disagree.
The anti-dumping action benefits very few (Accell, Pon, Prophete, Bosch) and hurt tens of millions of consumers.
the fact that EU production is concentrated in just a few very large companies speaks volume.
The current 6% duty on e-bikes is already fair, it takes into account that electronics is the major component cost in an e-bike whose duty is between 0% and 3% against the 48.5% ADD on regular bikes.

 

[KTM Bike Industries UK]

I disagree.
The anti-dumping action benefits very few (Accell, Pon, Prophete, Bosch) and hurt tens of millions of consumers.
the fact that EU production is concentrated in just a few very large companies speaks volume.
The current 6% duty on e-bikes is already fair, it takes into account that electronics is the major component cost in an e-bike whose duty is between 0% and 3% against the 48.5% ADD on regular bikes.

You're looking at the wrong thing. Does it hurt Brompton, Orange, Cotic, or any of the host of smaller Uk based bicycle brands who benefit from not having to compete with the Chinese?

The industries you mention have set up to work in the anti dumping environment.... all the big brands you mention assemble inside the EU, rather than import complete bikes from China, because of the duty.

If the duty wasn't there, all these big business and employers would simply build in the far east and ship into the EU, saving end consumers a few quid but removing all the benefits employment and tax having these industries inside the EU brings.

I think, the duty should be the same on eBikes and normal bikes. If pedelecs are classed as bicycles, they should be taxed as bicycles. I'm not saying I think the current tax is fair, or correct etc etc. I'm just saying it has to be consistent.

 

[Wisper Bikes]

I disagree.
The anti-dumping action benefits very few (Accell, Pon, Prophete, Bosch) and hurt tens of millions of consumers.
the fact that EU production is concentrated in just a few very large companies speaks volume.

I am in complete agreement with Woosh, as I have previously said, this action is purely about the big players (most of whom are late comers to the ebike market) wanting to get rid of competing SMEs before we are any threat to them.

Bosch in particular are very worried about the way Bafang are growing and their entrance to the high quality mid motor market. Rather than compete on a level playing field they are using their considerable power within the EU to put obstacles in any competitors way.

The fight goes on.

 

[Woosh]

I'm just saying it has to be consistent.

they are taxed as bicycle and electronics and it is consistent at the time the EU set it up. The 6% rate is weighted against the average value of various components. It's not a favour given to e-bikes against regular bikes.
There is no market distortion: companies producing e-bikes in the EU make more money year after year on e-bikes as the market grows. The complainers simply wanted to rid themselves of the competition, mainly at the low end of the market, and to force the average price up to increase their profit.
Who is losing out? the consumers who cannot afford buying their poncy bikes.

 

[Wisper Bikes]

If we add the Brexit complication to the discussion, what happens to UK builders when tariffs between the UK and EU kick in? The only solution I can see is build in Taiwan and ship to Europe and UK from there. What a mess!

 

[KTM Bike Industries UK]

they are taxed as bicycle and electronics and it is consistent at the time the EU set it up. The 6% rate is weighted against the average value of various components. It's not a favour given to e-bikes against regular bikes.
There is no market distortion: companies producing e-bikes in the EU make more money year after year on e-bikes as the market grows. The complainers simply wanted to rid themselves of the competition, mainly at the low end of the market, and to force the average price up to increase their profit.
Who is losing out? the consumers who cannot afford buying their poncy bikes.

Yes, but by that logic, you'd tax a normal bike at the component rate wouldn't you.

Which you don't. You either import it as compoents, at the lower rate, or import it built at the higher rate. Which means you employ people in the EU to build it and you can advertise a "made in .... " product.

So now that some of the components happen to be electric, also bear in mind some of the components on normal bikes are electric. If you're importing complete bikes, you need to pay the complete tariff.

 

[Wisper Bikes]

Just read this...." Jeremy Corbyn has committed his party to retaining the main elements of Britain's relationship with the European Union after Brexit in a significant policy shift announced yesterday." Maybe Jeremy has found the golden General Election ticket. If so we wont need to worry about losing our European Market.

Just a thought, how will all the big European brands cope if there is a hard Brexit? Will they back out of the UK?

 

[Woosh]

what would you think if your company is threatened with the theoretical 189% anti-dumping duty? even if you take it with a pinch of salt, you would be irresponsible not to worry about this potential threat.
Would you place more orders? no, you can't unless you have Elon Musk as your backer.
So until the dust settles, a few members of the EBMA will laugh their head off silly.

 

[Woosh]

Yes, but by that logic, you'd tax a normal bike at the component rate wouldn't you.

Which you don't. You either import it as compoents, at the lower rate, or import it built at the higher rate. Which means you employ people in the EU to build it and you can advertise a "made in .... " product.

So now that some of the components happen to be electric, also bear in mind some of the components on normal bikes are electric. If you're importing complete bikes, you need to pay the complete tariff.

the point I made is that when the EU determined the 6% duty rate on e-bike, it was and still is a fair rate, taken into account all the main ingredients of an e-bike. The anti-dumping duty on regular bikes is in place since 1993, 25 years ago. If there is a distortion, then the EU will simply adjust the 6% to may be 7%, not the anti-dumping weapon.
Anti-dumping is a weapon, make no mistake about it, it is not used to re-adjust the market but to re-organise the market in favour of some domestic producers. Its use is profoundly political and easily corrupted by pressure groups.

 

[KTM Bike Industries UK]

what would you think if your company is threatened with the theoretical 189% anti-dumping duty? even if you take it with a pinch of salt, you would be irresponsible not to worry about this potential threat.
Would you place more orders? no, you can't unless you have Elon Musk as your backer.
So until the dust settles, a few members of the EBMA will laugh their head off silly.

Its not trying to stop you selling bikes is it? Hasn't Wisper already given the solution? Import in component form, offer UK made bikes... employ more people in the UK and add about £100.00 to the RRP. This is what the solution is, its what all the bicycle brands have evolved to do and I'm sure it's what the current raft of Chinese eBike brands will do. Don't forget it will allow you to put a Made in the UK sticker on all your bikes and you'll be employing more Brits in the UK as an industry, isn't that a good thing?

 

[KTM Bike Industries UK]

Just a thought, how will all the big European brands cope if there is a hard Brexit? Will they back out of the UK?

They won't back out... UK customers will just pay more for the products they want. Only the UK customers loose out. The UK market isn't big enough to suddenly create UK only brands even if it were possible.

 

[Woosh]

Its not trying to stop you selling bikes is it?

After stocks in the pipelines are sold, it will stop a lot of small companies selling Chinese e-bikes.
The first problem is the continuation of existing products.
You can't just ask another factory in Taiwan to make the same bikes you got from China.
You will have to line up a whole new infrastructure, marketing, spares, manuals and support.
If you want to assemble in the UK, you need to have quality control as high as it is currently in Chinese factories. Before you laugh your head off at the mention of 'QC' and Chinese factories - I sell and fit kits for a long time, I have statistics to back it up. There is no way I can achieve that level of QC in under 5 years. Assembling in the UK is very much like fitting a conversion kit, but unlike selling a kit, if the customer has a QC problem, you are going to be punished just as dearly as you would with a factory build bike delivered in a double 7-ply carton. You will make a loss.

 

[KTM Bike Industries UK]

and I should point out, I'm not saying I'm in favour of dumping duties.

Our bikes would be a load cheaper if we could build them in the far east and ship into the EU and avoid the duty too.

But would the Austrian Government benefit from all the income generated from the factory, all the staff spending their money in the local economy etc etc. Would the small saving in RRP be worth the loss of all these big bike brands around the EU? Trek, Giant etc etc all have assembly lines in the EU for one reason, and thats to avoid the ADD. If its removed the whole industry moves to the far east.