Provisional anti-dumping duties on e-bikes from China

By Implementing Regulation (EU) No 2018/1012, the European Commission has imposed provisional anti-dumping duties on e-bikes and pedelecs originating in China. Penal duties of up to 83.6% are now due. Under certain conditions, lower company-specific duties may also be levied. Operators concerned should be prepared and consider what measures they can take against the punitive duties.

Anti-dumping investigation on Chinese electric bicycles

We reported that an anti-dumping investigation on e-bikes from China has been under way since 20.10.2017 at the request of the European Bicycle Industry Federation (EBMA).

Since May 2018, imports of electric bicycles originating in China have been subject to customs registration. In this way, imports punitive duties can be set retrospectively for imports recorded by customs authorities.

An anti-subsidy investigation is also underway on these products. Therefore, in addition to anti-dumping duties, the impending imposition of additional countervailing duties.

Preliminary anti-dumping duties of up to 83,6 %

The European Commission follows the EBMA and expects Chinese e-bikes and pedelecs to be imported into the European Union at dumping prices.

On the basis of the Commission’s conclusions on dumping, injury, causation and Union interest, the Commission sets the following provisional anti-dumping duty rates to prevent further injury to the Union industry:

Corporate-specific duties only with commercial invoice

The application of the company specific duties for the above mentioned companies requires the presentation of a valid commercial invoice with the following declaration:

This declaration must be dated and signed by a responsible person with the name and function of the invoicing company.

measures concern different types of electric bicycles

The provisional anti-dumping duties apply to electric-assisted pedal bicycles originating in the People’s Republic of China. These are currently listed under the

• KN code 8711 6010 – Two-wheelers, tricycles and four-wheelers, with pedaling aid, with electric motor with a continuous output of 250 watts or less – and
• KN code ex 8711 6090 (TARIC code 8711 6090 10) – Pedal-assisted bicycles with electric motor

in a row.

The Commission clarifies that the Regulation covers different types of electric bicycles.

Also speed pedelecs and electric tricycles should be affected

In the course of the investigation, the CCCME interjected that speed pedelecs reaching a speed of over 25 km/h and a maximum of 45 km/h should be excluded from the circle of affected goods. The motors of standard electric bicycles would have a maximum output of 250 W, whereas speed pedelecs reached an output of 350 W to 500 W. Accordingly, from 1 January 2017 ordinary electric bicycles would be classified under CN code 8711 6010, whereas speed pedelecs would be classified under CN code 8711 6090.

The Commission did not follow suit. Since ordinary e-bikes and speed pedelecs would have the same material properties, both would have to be covered by the measures.

Other parties involved argued that electric tricycles should be excluded, as the investigation referred to “electric two-wheelers” according to the title of the announcement. The Commission took the view that it was not the title but the text of the Notice, which referred to “bicycles”, that was decisive. The Commission therefore considers that tricycles and even four-wheelers are also affected.

Switzerland rejected as analogue country for normal value

To check whether imports from China are dumped, normal value must first be established. To determine normal value, the Commission wrote to 27 manufacturers in a total of 9 countries. Only one Swiss producer had provided complete information, so Switzerland should be used as the analogue country for the determination of normal value.

However, various parties argued that Switzerland was unsuitable as an analogue country, particularly due to its high level of development, high production costs and technical differences to Chinese e-bikes.

As a result, the Commission was satisfied. In the absence of an adequate market economy third country, normal value was ultimately determined on the basis of the price paid or payable in the Union for similar products.
Preliminary dumping margin and impact of dumped imports

The Commission established a provisional dumping margin of between 34,6 % and 106,4 % for producers included in a sample. A provisional dumping margin of 51,0 % was established for producers not included in the sample but cooperating and mentioned in the Regulation. The provisional dumping margin of all other companies was 106,4 %.

The prices of dumped imports from the PRC undercut European prices with price undercutting ranges between 16.2% and 43.2%. During the period considered, the Union industry lost 23 percentage points of its market share in a market which had grown by 74%, while Chinese imports increased by 250% and their market share increased by 17 percentage points from 18% to 35%.

Final anti-dumping and countervailing duties on e-bikes expected

Once the investigation is closed, the European Commission is also expected to impose definitive anti-dumping duties. Whether and for which types of e-bikes and pedelecs the punitive tariffs are justified, will probably still have to be clarified by the European Court of Justice.

In addition, provisional and definitive countervailing duties may be imposed.

Importers should in any case already now check whether they are affected by the punitive tariffs and what they can do against them if necessary.

Dieser Artikel wurde am 24. July 2018 erstellt. Er wurde am 16. July 2020 aktualisiert. Die fachliche Zweitprüfung hat Rechtsanwalt Dr. Tristan Wegner durchgeführt.