EU companies damaged by anti-dumping legislation meet with Commission
Last Call for LEVA-EU Standardization Workshop 27/02
Is your company under investigation by national customs or by OLAF?
Go with NieuwsFiets.nu to versatile Vietnam!
Second B2B Festival on its way
Invitation for Expert Participation: LEV and Circular Economy
Join the Ad Hoc Group in Opposing Extension Measures on E-Bikes from China
LEVA-EU Establishes Ad Hoc Group for EU Companies to Counter EU Commission’s Review of Measures against E-Cycles from China
LEVA-EU Gears Up to Counter European Commission’s Review of Trade Defence Measures against Electric Cycles from China
Author Archives: Annick Roetynck
About Annick Roetynck
Annick is the Manager of LEVA-EU, with decades of experience in two-wheeled and light electric mobility.-
EU companies damaged by anti-dumping legislation meet with Commission
Comments Off on EU companies damaged by anti-dumping legislation meet with CommissionOn 15 March, more than 40 participants, a mixture of company representatives and lawyers, signed up for the meeting with the EU Commission on the damaging effects on EU companies of anti-dumping (ADD) and anti-subsidy (ASD) measures against e-bikes from China. The meeting had been requested by LEVA-EU. In an exchange with three different Commission departments of DG Trade and DG Taxud, a long list of questions was presented. LEVA-EU Manager, Annick Roetynck, opened the meeting with a presentation of the different ADD and ASD issues that are damaging many EU companies.
LEVA-EU Manager, Annick Roetynck, opened with the ascertainment that ADD and ASD on e-bikes from China, in combination with related legislation has become an inextricable tangle. EU companies are no longer able to understand the legislation and apply it correctly. As a result, many companies come under attack with their very existence put at risk. Some companies have already gone bankrupt, some are on the brink of bankruptcy. Annick Roetynck concluded that the inextricable tangle causes legal uncertainty that poses very serious risks and threats to the whole EU e-bike industry. As a result, she requested the Commission for clarification of the legislation, for potential measures to provide legal certainty and for potential measures to improve legislation.
All Chinese components
One of the first issues on the table was the applicability of Article 13 of the Basic Regulation in court-cases involving national customs services. This Article stipulates among other things that if the Chinese parts in an EU assembly represent 60% or more of the total value of the components or if in the assembly less than 25% value is added, the assembly may be considered to be circumventing.
In several EU countries, national customs services have embarked on litigations partly based on this very article. In the past 5 years, LEVA-EU has always cautioned its members to comply with the 60/40 – 25% rule for fear of circumvention accusations and extension of the duties to essential e-bike components. It was therefore surprising, to say the least, to find the EBMA openly reassuring its members about the fact that the EU Commission itself had confirmed that the 60/40 rule or 25 % added value did not apply to e-bikes.
In the meeting, the Commission repeatedly emphasized that customs services have no legal right to invoke Article 13, for which the competence lies solely with the Commission. The Commission representatives also assured that they were prepared to raise the matter with national customs authorities, provided that companies and/or their lawyers addressed the Commission directly. With that, the Commission guaranteed absolute confidentiality.
One of the company managers in the meeting, who is subjected to a criminal court-case partly based on Article 13, reacted particularly emotionally when discussing this issue. He explained to the Commission, how all his life, he had done nothing but working hard for a third generation EU family business. His perception was that Europe was destroying not only his company but also him personally. He faces a fine of 60 million euro and 5 years in prison, a downright inhumane threat.
General Rule of Interpretation 2(a)
Unfortunately, the Commission’s assurances on Article 13, did not solve the problem since a representative of DG Taxud further complicated the issue by introducing the problem of the General Rule of Interpretation (GRI) 2(a), set out in Annex II to Council Regulation 2658/87. This Rule stipulates that the imports of parts may be considered as the import of a complete e-bike, which may prompt customs to categorize the parts under the HS-code for e-bikes instead of the codes for components. That categorization in turn, comes with ADD and ASD, if the components originate from China.
The Commission seemed genuinely surprised to find a lawyer confirming to the EBMA President in 2021 that: “the EU customs nomenclature does not define the parts needed in order to have the “essential character” of a complete electrical bicycle and there has not been any authoritative ruling by the European Courts on the question of the minimum parts needed together to consider that they have the essential character of an electrical bicycle.”
The Commission was however unable to provide further clarification on how to practically deal with GRI 2(a). The Commission representative stated: “The import of e-bike parts could be characterized as imports of complete e-bikes for customs’ clarification purposes in principle if they are imported in one or more containers presented to customs’ clearance on the same day. Nevertheless, it cannot be excluded that parts imported on different dates are considered complete e-bikes, if it is obvious from objective characteristics that they are related.” In other words, while one department of the Commission confirmed that assembling electric bicycles from 100% Chinese parts was legal for the moment, another department could not give a conclusive answer to the question of how these could be legally imported.
Import e-bike components ǂ import bike components
A few years ago, the Commission published an explanatory note for national customs services on the import of conventional bicycle parts, stating that an incomplete bicycle, whether or not assembled, is to be classified under heading 8712 for complete bicycles, if it consists of the frame, the fork and at least two of the essential bike components subject to ADD. It is not possible for the Commission to publish a similar explanatory note for e-bike components because custom services have not asked for this. In the meantime, some custom services in the EU apply the same explanatory note to e-bike components. In the meeting, the Commission confirmed that this is incorrect and declared themselves prepared to make a statement about this!
The last issue that was discussed in this meeting was the legal validity of the non-binding list rule for imports of e-bikes from outside the EU, issued by the Commission at the explicit request of the EBMA, aimed at actually refuting the change of tariff heading (CTH) for e-bikes imported from outside the EU.
In 2017, also at the request of EBMA, HS code 8711 was amended to “Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars” with a view to creating a specific HS code for electric cycles. With that, electric bikes came under the same rules of origin as motorcycles, one of which was CTH. According to the Commission, EBMA subsequently requested for a change of that rule of origin, because the rule for motorcycles was allegedly not suitable for electric bikes.
Since this change, if for instance a Taiwanese, Thai or Turkish assembler imports parts from China for the assembly of electric bicycles to be exported to the EU, that assembly does not qualify as “last substantial transformation” and must therefore be considered circumvention.
Many outstanding questions
So, EBMA requested the Commission in 2020 to close the so-called loophole by changing the rule of origin, upon which dozens of EU companies were attacked and literally and figuratively being presented with the bill. At the same time, EBMA reassured dozens of other EU companies that importing Chinese components for the assembly of e-bikes in the EU was not a legal issue.
According to the Commission, there’s no going back on this change of the non-binding list rule, because it was approved by the member states. All this still doesn’t provide a conclusive answer to the question of the legal validity of this non-binding list rule.
Furthermore, there are still many other outstanding questions about for instance OLAF’s working methods, the lack of insight into the investigations as well as the lack of redress for the European companies, that are subsequently charged by customs and dragged into legal cases that may last 5 to 10 years and cost the companies fortunes . Since at the end of this meeting, many questions remained unanswered, on behalf of the participants, LEVA-EU expressly requested a second meeting for further discussions. The classification of e-bike components and the discrimination of companies under end-use authorization as opposed to the exemption scheme are two more issues that still need to be discussed. Although some tentative steps towards improvement have been taken, this meeting has mainly shown that the legislation is an inextricable tangle that entrepreneurs simply cannot understand. A story to be continued.
Photo by Rocío Perera on Unsplash
-
Last Call for LEVA-EU Standardization Workshop 27/02
Comments Off on Last Call for LEVA-EU Standardization Workshop 27/02Tomorrow, Tuesday 27 February, LEVA-EU is presenting an exclusive workshop on standardization for light, electric vehicles, including EPACs, E-Cargocycles, E-Scooters, etc. This insightful event is co-organized with SBS and promises a deep dive into the realm of standardization, offering invaluable information.
The event will take place online only from 1 p.m. to 5 p.m.
Participation in the workshop is free for LEVA-EU and for SBS Members. Non-members pay € 175 for one participant, € 325 for 2 and € 450 for three. Participants must register in advance here: https://rb.gy/aq6s9p.
Upon registration (members) and payment (non-members), we will send you an invitation with a online link to the workshop shortly before the start of the meeting.
The agenda is as follows:
1. Short presentation LEVA-EU and SBS
2. What are standards?
3. Why European/international standards?
4. How is a standard being made?
5. How is a standard structured?
6. What’s the procedure to make and vote standards?
7. Why and how participate?
8. What’s the relation between standards and legislation?
9. What is (the use of) harmonizing standards?
10. How is a standard applied/used?
11. Which standards, relevant for light electric vehicles are currently being drafted?
12. What are the relevant published standards?
-
Is your company under investigation by national customs or by OLAF?
Comments Off on Is your company under investigation by national customs or by OLAF?Are you one of the many companies in the European Union that encounters problems with the assembly of ebikes in the EU or with the import of ebikes from outside the EU and outside China? Are the national customs services investigating your company or, worse, accusing your company of infringing anti-dumping legislation?
Your problems are directly caused by the anti-dumping and anti-subsidy measures against e-bikes from China. It’s an extremely complicated matter, which we can explain to you. We may also be able to assist you in tackling your problems.
If you want to find out more, please contact us. We will explain the cause of your problems and we will propose how we can tackle those problems together. The measures against China are not about dumping cheap Chinese ebikes in the European Union, they are about hurting companies in the EU.Are you one of those companies? Get in touch with LEVA-EU: annick@leva-eu.com, tel.+32 475 500 588 and we will set up an online meeting.
If you wish, we can guarantee you complete confidentiality.
You may also wish to read: https://leva-eu.com/leva-eu-establishes-ad-hoc-group-to-counter-commission-review-measures-against-e-cycles-china/Photo by Anja Bauermann on Unsplash
-
Go with NieuwsFiets.nu to versatile Vietnam!
Comments Off on Go with NieuwsFiets.nu to versatile Vietnam!HO CHI MINH/ HO TRAM (VN) – Registration for the NieuwsFiets.nu DealerReis 2024 is open! The destination is completely new: Vietnam. First, a variety of manufacturers in the bicycle industry will be visited, then the relaxing ending will take place in a comfortable beach resort.
This is the ultimate networking event for bicycle retailers from the Netherlands and Belgium, who want to take a unique look behind the scenes of the Vietnamese bicycle industry. The NieuwsFiets.nu Dealer Trip 2024 is an educational business trip to Vietnam, together with fellow retailers, which consists of a strong line up of factory visits, including Motinova (e-bike motors), Velo (saddles), Starite International (producer of New Looxs, among others). bicycle bags) and Astro Tech (frames). Here you will gain professional knowledge that will come in very handy once you return to the store. The tour starts in Ho Chi Minh City and will end in a luxury beach resort in Ho Tram, on the coast of Vietnam.
Registration for the NieuwsFiets.nu DealerTrip is open!
The NieuwsFiets.nu DealerTrip 2024 will take place from November 10 to 18 and is only open to colleagues working in the bicycle industry. Unfortunately, interested consumers cannot join this inspiring business trip. Participation in the NieuwsFiets.nu DealerTrip 2024 costs € 2,750 (per person) for a stay in a single room and € 2,400 (per person) for a stay in a double room.
Entrepreneurs who want to end the year 2024 with a unique trade event should book as soon as possible, because the number of places is limited.
You can register your interest in the trip here: https://nieuwsfiets.nu/nieuwsfiets-dealerreis/aanmelden/
-
Second B2B Festival on its way
Comments Off on Second B2B Festival on its wayNieuwsFiets Media & Events is organizing the B2B FESTIVAL for the second time on Sunday 25 and Monday 26 February 2024 in the Brabanthallen in Den Bosch. This is just before the 2024 cycling season starts, but also a moment when we are cautiously looking ahead to 2025. In short, doubly good timing for an extra networking moment between the trade and industry in the Netherlands and Belgium.
Governing is looking ahead, accordint to a well-known Dutch saying. This is more true than ever, especially in these times, because anyone who adopts a wait-and-see attitude now risks falling behind. That is why a networking opportunity between the trade and industry in the spring is incredibly relevant. Listening to and inspired by signals from the market, the initiative was therefore taken to organize the B2B FESTIVAL, with the aim of combining the useful with the pleasant in an accessible manner and in a casual festival atmosphere.
Manufacturers and importers will be given every opportunity to present themselves to the Dutch and Belgian specialist trade, which will receive a particularly hospitable welcome. Trad visitors enjoy free entrance, free parking and catering at the food trucks present is also free of charge for our guests. Sunday will end with a musically supported Happy Hour XXL, where you can enjoy informal drinks from 5:00 PM while enjoying Drinks & Bites.
A 2-day format was deliberately chosen, because Tuesday is a quiet day for many events. The festival doors are open on Sunday from 10:00 AM to 5:00 PM and Monday from 10:00 AM to 5:00 PM.
-
Invitation for Expert Participation: LEV and Circular Economy
Comments Off on Invitation for Expert Participation: LEV and Circular EconomyCompanies in the light electric vehicle (LEV) industry are facing increasing challenges as the importance of sustainability grows. Expert knowledge from manufacturing, sharing or disposal is essential to understand the complex interrelationships of a circular economy for LEVs and thus enable future-proof strategic planning. The Laboratory for Sustainability in Technology at the Bochum University of Applied Sciences under the direction of Prof. Dr.-Ing. Semih Severengiz invites you to actively participate in the development of the scenario study:
What could a circular economy in the LEV sector look like in 2035?
Once completed, this analysis will not only be relevant to your company but will also provide valuable insights for the industry as a whole.
Your expertise is essential. We would appreciate your help in reviewing the identified drivers and influencers. Please complete and return the attached survey. Further instructions can be found in the the following document: https://shorturl.at/knIV7. We kindly ask you to complete the survey by 23 February 2024.
You are also welcome to share this survey with employees in your organisation.
Further information: The survey is part of the Pilot4CircuLEV research project. The aim of the project is to analyse and develop a pilot factory for sustainable end-of-life strategies for light electric vehicles (LEVs) in the context of a resource-efficient circular economy. The project is funded by the German Federal Ministry of Education and Research. More information about the project is available at https://www.hochschule-bochum.de/en/sustainable-technologies-lab/pilot4circulev/.
Photo by Matt Seymour on Unsplash
-
Join the Ad Hoc Group in Opposing Extension Measures on E-Bikes from China
Comments Off on Join the Ad Hoc Group in Opposing Extension Measures on E-Bikes from ChinaIs your company involved in any of the following:
- Importing electric bicycles, electric cargo bikes, or speed pedelecs from China and paying duties?
- Importing electric bikes, electric cargocycles, or speed pedelecs from a non-EU country OTHER THAN China?
- Importing components from China for the assembly of electric bikes, electric cargocycles, or speed pedelecs within the EU?
Is your company facing:
- Investigation by national customs services and/or OLAF?
- Accusations of circumventing measures against China?
- Legal action for circumventing measures against China?
- Sentencing or acquittal for circumventing measures against China?
If so, we strongly recommend that you become a part of the Ad Hoc Group established by LEVA-EU to collectively oppose the potential extension of these measures.
What will the Ad Hoc Group do?
- Request recognition from the European Commission as an interested party.
- Submit joint comments on the Commission’s review.
- Seek a hearing from the European Commission, allowing companies to express their views.
- Provide assistance from a specialized lawyer.
- Communicate the group’s activities to the press and on social media.
- Lobby other influential entities on this matter.
How to Participate?
- A modest contribution, based on the number of employees in your company, is required for participation in the Ad Hoc Group.
- Participation can be kept confidential.
- LEVA-EU membership is not a prerequisite for joining the Ad Hoc Group.
- LEVA-EU members receive a discount on the contribution.
Meeting Details:
- The Ad Hoc Group will conduct multiple meetings, with the first scheduled for February 15, both in-person in Brussels and online.
- If the Commission grants a hearing, it will be held in-person in Brussels; all other meetings will be accessible online.
How to Join?
- For more information or to join the Ad Hoc Group, please call LEVA-EU Manager Annick Roetynck on +32 475 500 588 or mail annick@leva-eu.com.
- Are you already determined to join the group? Complete and return the Ad Hoc Group Participation Form to annick@leva-eu.com.
Your involvement will make a difference in challenging the extension of the measures affecting the European electric cycle industry.
-
LEVA-EU Establishes Ad Hoc Group for EU Companies to Counter EU Commission’s Review of Measures against E-Cycles from China
Comments Off on LEVA-EU Establishes Ad Hoc Group for EU Companies to Counter EU Commission’s Review of Measures against E-Cycles from ChinaLast week, the European Commission announced the review of the trade defence measures against electric cycles from China. The review has been requested by EBMA, who wants the measures to be extended for another 5 years. However, over the past 5 years, LEVA-EU has collected numerous testimonies from European companies that have suffered serious damage due to the measures. Some have even gone bankrupt.
It may be in the interest of a small minority of EU companies to continue the measures, but for the majority it is a constant threat and a major obstacle. In response to this, LEVA-EU is taking decisive action by establishing an ad hoc group to unite with affected companies and jointly challenge the potential extension of the trade defense measures. This collaborative effort aims to represent the interests of the broader industry and address the concerns of companies that have experienced adverse effects of the measures.
LEVA-EU will apply for the ad hoc group to be granted interested party status, which will allow the group to comment on the requested review and also request a hearing with the Commission. In all this, the group will also be supported by a specialized lawyer. LEVA-EU will further support the companies in the ad hoc group with lobbying and communication on the matter.
The more companies join the group, the greater the chance that opposition to the measures will be taken into account. LEVA-EU therefore warmly calls on all companies that are damaged in some way by the measures or that oppose the measures, to register for the ad hoc group. A first meeting of the group is planned for Thursday, 15 February, in Brussels. The group is open to all companies, regardless of whether they are members of LEVA-EU. You can register by expressing your interest in a simple email to LEVA-EU manager Annick Roetynck, annick@leva-eu.com. If you wish, you can also call her for further information: +32 475 500 588
It has long been clear that the focus of the EBMA is less on preventing dumping and injury recurrence, than on fostering protectionism, primarily led by a few large groups within the EU. All this is happening under the guise that the trade defence measures will result in return of production to Europe, which in turn will result in the creation of millions (sic) of jobs. Both EBMA and the Commission are of course wisely silent about the fact that trade defence legislation, by its nature, is not designed with the goal of reshoring industries nor fostering job creation. Let alone that they care at all about the jobs that have already disappeared in the EU due to the measures.
The current measures disproportionately impact mainly smaller entrepreneurs, who inadvertently fall victim to the immense complexity of the legislation. That complexity is partly due to the interweaving between the measures against the electric cycles with the measures on essential bicycle components. LEVA-EU also raises concerns about EBMA not shying away from providing companies with incorrect legal information, which raises serious questions about integrity.
A potential 5-year extension of the trade defence measures is predicted to exacerbate the challenges faced by many more European companies, leading to reduced supply, which will in turn lead to significant job losses in the retail sector. It will also lead to increased prices, and a stifling of innovation. LEVA-EU emphasizes that the measures primarily serve the interest of a few large groups, who are merely interested in safeguarding their big cash cow, i.e. the electric bicycle with pedal assistance up to 25 km/h and 250W.
The consequences extend beyond the financial burden on European citizens, to include countless European companies that are now or will soon come under fire. Moreover, the measures prevent many more European companies to enter the market, since a new company in the EU cannot start up unless it pays anti-dumping duties for an indefinite period, without any prospect of any refund.
Last year the European Union had the dubious honour of commemorating 30 years (!) of anti-dumping measures against conventional bicycles from China. This “milestone” prompts questions about the effectiveness of European trade defence measures and the resilience of the “Union Industry”. The measures against electric bicycles will never last 30 years, because by then the electric bicycle sector will simply have been wiped off the map, thanks to the so-called “Union Industry” and EBMA. That is precisely why it is important that at least someone tries to provide some resistance. Five more years of trade defence measures on electric cycles from China will never foster an environment conducive to fair competition, innovation and sustainable growth of the sector in Europe.
Annick Roetynck,
LEVA-EU ManagerBelow are the links to relevant Commission publications in the Official Journal:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400802
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400798 -
LEVA-EU Gears Up to Counter European Commission’s Review of Trade Defence Measures against Electric Cycles from China
Comments Off on LEVA-EU Gears Up to Counter European Commission’s Review of Trade Defence Measures against Electric Cycles from ChinaIn a widely anticipated move, the European Commission has officially granted EBMA’s request to review the trade defence measures against electric cycles from China, with a view to an extension of 5 years. The basis for this request is, entirely as expected, the fact that the expiry of the measures would be likely to result in continuation of dumping and recurrence of injury to the Union Industry. LEVA-EU is gearing to respond. The organization warns for the potential impact of 5 more years of measures on European companies and is mobilizing efforts to address the serious concerns arising from the potential extension.
The European Bicycle Manufacturers Association’s (EBMA) request for an extension comes from only one faction of the so-called Union Industry. Another segment of that Industry, along with numerous European companies assembling electric cycles outside both Europe and China, are already experiencing significant adverse effects from the existing measures. Some businesses have already effectively succumbed to these measures, which demonstrates the tangible and widespread damage inflicted upon the industry.
In response, LEVA-EU plans to establish an ad hoc group for companies that are assembling their electric cycles within the EU or outside the EU and China, and are suffering substantial harm from the measures. It has long been clear that the focus of the EBMA is less on preventing dumping and injury recurrence, than on fostering protectionism, primarily led by a few large groups within the EU.
All this is happening under the guise that the trade defence measures will result in return of production to Europe, which in turn will result in the creation of millions (sic) of jobs. Both EBMA and the Commission are of course wisely silent about the fact that trade defence legislation, by its nature, is not designed with the goal of reshoring industries nor fostering job creation. Let alone that they care at all about the jobs that have already disappeared in the EU due to the measures.
The current measures disproportionately impact mainly smaller entrepreneurs, who inadvertently fall victim to the immense complexity of the legislation. That complexity is partly due to the interweaving between the measures against the electric cycles with the measures on essential bicycle components. LEVA-EU also raises concerns about EBMA not shying away from providing companies with incorrect legal information, which raises serious questions about integrity.
A potential 5-year extension of the trade defence measures is predicted to exacerbate the challenges faced by many more European companies, leading to reduced supply, which will in turn lead to significant job losses in the retail sector. It will also lead to increased prices, and a stifling of innovation. LEVA-EU emphasizes that the measures primarily serve the interest of a few large groups, who are merely interested in safeguarding their big cash cow, i.e. the electric bicycle with pedal assistance up to 25 km/h and 250W.
The consequences extend beyond the financial burden on European citizens, to include countless European companies that are now or will soon come under fire. Moreover, the measures prevent many more European companies to enter the market, since a new company in the EU cannot start up unless it pays anti-dumping duties for an indefinite period, without any prospect of any refund.
Last year the European Union had the dubious honour of commemorating 30 years (!) of anti-dumping measures against conventional bicycles from China. This “milestone” prompts questions about the effectiveness of European trade defence measures and the resilience of the “Union Industry”. The measures against electric bicycles will never last 30 years, because by then the electric bicycle sector will simply have been wiped off the map, thanks to the so-called “Union Industry” and EBMA. That is precisely why it is important that at least someone tries to provide some resistance. Five more years of trade defence measures on electric cycles from China will never foster an environment conducive to fair competition, innovation and sustainable growth of the sector in Europe.
Annick Roetynck,
LEVA-EU ManagerBelow are the links to relevant Commission publications in the Official Journal:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400802
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400798
Campaign success
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Member profile
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.