Import Tariff Codes and Duty.
- Thread starter Kudoscycles
- Start date
Has anyone heard anything about the anti dumping tariff on electric bikes coming in from China? I heard today that a 48.5% ADT may be applied as early as June next year.
UPDATE
Two of our suppliers have confirmed that they have had official letters from the Chinese Government warning them of a very strong possibility that anti dumping tariffs will hit electric bikes bought from China after June of next year.
UPDATE
Two of our suppliers have confirmed that they have had official letters from the Chinese Government warning them of a very strong possibility that anti dumping tariffs will hit electric bikes bought from China after June of next year.
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D
Deleted member 4366
Guest
Oh well, time to visit India, Taiwan, Phillipines and Brazil. Should make a nice holiday. Let me know if you need any technical or SQA (supplier, not Scottish) assistance.
Thanks Dave!!! I've never been to India maybe a fact finding mission!! The truth of course labour in Romania etc is less expensive than many parts of China now.
There are a few of the suppliers we work with that are bringing manufacturing back to the EU. The costs are higher, but for the dealers / distributors its much better. Lead times are less, quantities are less, so risk is less. Less clearance stock etc etc.
Only problem is we might be outside the EU soon, so we might have to deal with the tariffs anyway
Only problem is we might be outside the EU soon, so we might have to deal with the tariffs anyway
What is an 'Anti-Dumping Duty'
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market. To protect local businesses and markets, many countries impose stiff duties on products they believe are being dumped in their national market.
Read more: Anti-Dumping Duty Definition | Investopedia http://www.investopedia.com/terms/a/anti-dumping-duty.asp#ixzz4R2YkcVKd
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Are you talking about bicycle parts Col?There are a few of the suppliers we work with that are bringing manufacturing back to the EU. The costs are higher, but for the dealers / distributors its much better. Lead times are less, quantities are less, so risk is less. Less clearance stock etc etc.
Only problem is we might be outside the EU soon, so we might have to deal with the tariffs anyway
If they put 48.5% Anti dumping duty on electric bikes from China to the EU (including the UK) that will pretty much kill off the UK electric bike industry.
Unless Brexit ends up that we are tariff free from China into the UK,but tariffs applied UK into EU.Assuming that the tariffs China to EU continue after Brexit,it could make the UK the smuggling capital of the world.
If we stay in the EU,I suppose we could start our own e-bike manufacturing industry,but we haven't proven much good at that so far. The other possibility is if we do a deal with the EU post Brexit like the Canada deal we could avoid the ADT by making more than 40% of the bike in the UK,thus complying with the country of origin rules. But it would be difficult to get up to 40% UK,when the obvious motors/frames/brakes/gears would all be Chinese imports.
With all the EN15194 difficulties and the small size of the U.K. E-bike market I think most traders will give up.
KudosDave
Unless Brexit ends up that we are tariff free from China into the UK,but tariffs applied UK into EU.Assuming that the tariffs China to EU continue after Brexit,it could make the UK the smuggling capital of the world.
If we stay in the EU,I suppose we could start our own e-bike manufacturing industry,but we haven't proven much good at that so far. The other possibility is if we do a deal with the EU post Brexit like the Canada deal we could avoid the ADT by making more than 40% of the bike in the UK,thus complying with the country of origin rules. But it would be difficult to get up to 40% UK,when the obvious motors/frames/brakes/gears would all be Chinese imports.
With all the EN15194 difficulties and the small size of the U.K. E-bike market I think most traders will give up.
KudosDave
ADT on electric bikes? that's nonsense.
There is no justification for impposing ADT on electric bikes where most of the value of the bike can be found in the electrical parts (motors, controllers, LCD, cabling) which have zero duty and Lithium batteries, 5% duty, mechanical bike, 48.5%. When averaging out duty on all the components, the EU arrived at 6% import duty for the whole electric bike.
There is no justification for impposing ADT on electric bikes where most of the value of the bike can be found in the electrical parts (motors, controllers, LCD, cabling) which have zero duty and Lithium batteries, 5% duty, mechanical bike, 48.5%. When averaging out duty on all the components, the EU arrived at 6% import duty for the whole electric bike.
It has occurred to me that a simple motor and tiny battery fitted to a good quality normal Chinese bike may be a cost effective way of avoiding the current ADT on normal bikes.
Say a £1000 Carbon Frame,top gears,top spec bike would save £420 per bike if imported as an e-bike.
Cannot be bothered myself, but if any importer did that, the EU would be tempted to make all bikes 48.5 % duty.
It would be a big boost to the EU bike assembling industry,especially if using Bosch motors/batteries which would make it easier to achieve the 60% origin rule.
I wouldn't be surprised if the EU hit the imported e-bikes with a 48.5 % ADT,it would mean that the German and Dutch e-bike assemblers would have a virtual monopoly,the death of the £1000 e-bike,we would all have to get used to £2000 e-bikes. The sale of normal bikes is going through a bad patch and e-bikes are becoming more important for German bike assemblers revenue.
It would be a good way for the EU to punish us for Brexit and give us a taster of what we can expect post Brexit.
KudosDave
Say a £1000 Carbon Frame,top gears,top spec bike would save £420 per bike if imported as an e-bike.
Cannot be bothered myself, but if any importer did that, the EU would be tempted to make all bikes 48.5 % duty.
It would be a big boost to the EU bike assembling industry,especially if using Bosch motors/batteries which would make it easier to achieve the 60% origin rule.
I wouldn't be surprised if the EU hit the imported e-bikes with a 48.5 % ADT,it would mean that the German and Dutch e-bike assemblers would have a virtual monopoly,the death of the £1000 e-bike,we would all have to get used to £2000 e-bikes. The sale of normal bikes is going through a bad patch and e-bikes are becoming more important for German bike assemblers revenue.
It would be a good way for the EU to punish us for Brexit and give us a taster of what we can expect post Brexit.
KudosDave
the 45.8% anti dumping duty against Chinese bicycles is supposed to end in 2018 but the EU may put in place a system to extend it a bit longer. Not about e-bikes though.
http://www.bike-eu.com/laws-regulations/nieuws/2016/11/eu-to-change-anti-dumping-rules-new-term-for-china-made-bikes-10128140
http://www.bike-eu.com/laws-regulations/nieuws/2016/11/eu-to-change-anti-dumping-rules-new-term-for-china-made-bikes-10128140
D
Deleted member 4366
Guest
I know a guy who ordered a complete kit recently. He didn't have to pay any duty. Go for it!
Another thing. BMSBattery have a new shipping system. I think it involves their European warehouse. I recently ordered a rack and battery plus some other stuff, and they gave me the option to pay $30 up front to get the stuff duty free. I took that option.
D
Deleted member 4366
Guest
Nearly all bicycles originate in China - even the high-end branded ones. There's no anti-dumping tax from Taiwan, so these Chinese companies have facilities there, and the bikes are shipped from there to avoid the ADT.
As I said before, China isn't the only cheap source of electric bikes.
http://www.evfuture.com/products/electric_bicycles/
£253 for this one:
http://www.evfuture.com/products/view/?product_id=60
As I said before, China isn't the only cheap source of electric bikes.
http://www.evfuture.com/products/electric_bicycles/
£253 for this one:
http://www.evfuture.com/products/view/?product_id=60
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Sorry to be pedantic but the maths aren't quite correct.
Import duty is 6% and VAT is 20%. That doesn't make 26%. It makes 27.2% as the VAT is added on top of the duty. Just like it is on fuel.
Import duty is 6% and VAT is 20%. That doesn't make 26%. It makes 27.2% as the VAT is added on top of the duty. Just like it is on fuel.
Yes, I know of a couple of european factories that now supply OEM components to big bike brands that previously bought from FarEast.
Bought a BBSHD from AliExpress in the 11-11 sale for £434 and when it came the UPS guy said I had to pay the charges straight away.
I expected about £100 which would still make it £200 cheaper than an ebay one with the DCP 14 lcd.
Surprised when he asked for £35.52,that was £24.52 import vat and £11 for them.
When I unpacked the invoice it turned out that the nice chinese chappy had put the value down as $100.
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