Anyone importing bicycle parts from China for the purpose of assembling bicycles will have to pay anti-dumping duty on them. However, companies have the option of obtaining an exemption from the anti-dumping duty.
However, the conditions for an exemption from the anti-dumping duty are strict and the procedure is highly regulated. Bicycle assemblers in particular should be aware of a few things when importing bicycle parts from China.
Anti-dumping duty on essential bicycle parts
Bicycles have been subject to anti-dumping duties for several decades if they originate in China.
As early as 1997, the European Commission adopted a regulation imposing anti-dumping duties on imports of essential bicycle parts from China.
The aim was to prevent circumvention of the anti-dumping duty by simply importing disassembled bicycles.
To this end, an anti-dumping duty is also imposed on so-called “essential bicycle parts” from China. These include:
What are essential bicycle parts?
- Frames, painted or anodised or polished and/or lacquered (CN code ex 8714 91 10)
- Painted or anodised or polished and/or lacquered front forks (CN code ex 8714 91 30)
- Derailleur gears (CN code 8714 99 50)
- Crank Mechanisms (CN code 8714 96 30)
- Freewheel sprockets (CN code 8714 93 90), whether or not put up in sets
- Other brakes (CN code 8714 94 30)
- Brake levers (CN code ex 8714 94 90), whether or not presented in sets
- Complete wheels with or without inner tubes, tyres and sprockets (CN code ex 8714 99 90)
- Handlebars (CN code 8714 99 10), whether or not fitted with a stem, brake and/or gear lever
Therefore, anyone who imports for example bicycle frames, forks, handlebars or gears from China for bicycle assembly will have to pay anti-dumping duty.
EU exemption from anti-dumping duty for bicycle assemblers
When anti-dumping duties were imposed on essential bicycle parts, the European Commission was authorised to exempt bicycle assemblers from anti-dumping duties.
- The exemption must be granted whenever the anti-dumping duty is not circumvented. The exemption from anti-dumping duties is in principle available to companies that assemble bicycles.
- Companies can therefore apply to the European Commission to be exempted from anti-dumping duties on imports of essential bicycle parts.
However, this request is subject to strict conditions of admissibility. The Commission will also carry out an on-the-spot verification. This will verify whether the assembly of bicycles circumvents the anti-dumping rules in force and whether the value limits set by European law are respected.
The company’s accounts must also show the transactions clearly at all times.
If a bicycle assembler’s application is rejected, the company will be subject to a 12-month ban on new applications.
Companies should therefore make sure when they submit an exemption application to the EU Commission that it is really justified.
In this context, it can also be a problem if bicycles are manufactured for other manufacturers (OEM production).
It can also be problematic if other companies supply parts and the import process is not controlled by the company itself.
Less than 300 bicycle parts per month
Small assemblers using less than 300 bicycle parts per month can also benefit from an exemption. This is less formal than the procedure at the European Commission.
This exemption for small assemblers in the bicycle sector is granted by the main national customs offices.
There are, however, some conditions which are laid down in the authorisations for anti-dumping duty exemption.
Again, it must be ensured that the conditions in the customs authorisation are not violated.
Otherwise, in the worst case scenario, the authorisation could be revoked and a significant amount of anti-dumping duty could be paid.
Save customs duties on imports of bicycle parts
Companies that import bicycle parts and use them to assemble bicycles should make sure that they can obtain an exemption from anti-dumping duties either from the European Commission or from the relevant main customs office.
Competitive prices for bicycle assembly can often only be achieved if these opportunities are exploited.
If you have any questions because you are assembling essential bicycle parts from China and are seeking an exemption from anti-dumping duty, we would be happy to assist you.
We can check whether your application has been submitted to the EU Commission or the main customs office and, if necessary, work with you to optimise the process so that you can easily claim exemption from the anti-dumping duty.
Dieser Artikel wurde am 22. September 2020 erstellt. Die fachliche Zweitprüfung hat Rechtsanwalt Dr. Tristan Wegner durchgeführt.