Tag Archive: anti dumping

  1. LEVA-EU warns 4 EU Commissioners: duties will have fatal impact on European SMEs

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    In anticipation of the deadline for provisional duties, on 20th July, LEVA-EU has warned 4 European Commissioners for the fatal impact of potential duties on a large number of SME’s in Europe. The letter was addressed to Trade Commissioner Malmström, Transport Commissioner Bulc, Climate Action and Energy Commissioner Cañete and to Elżbieta Bieńkowska, European Commissioner for Internal Market, Industry, Entrepreneurship and SMEs.

    In the letter, LEVA-EU Manager, Annick Roetynck invites the Commissioners to look beyond fearmongering rhetoric and consider the facts instead. She points out that so far the Commission has found no injury to the EU-industry whatsoever. She also explains that the difference between EU manufacturers and importers is a mere € 25 to € 35 for the assembly cost of parts, which are to a large extent sourced outside Europe. So-called manufacturers incur this € 25 to € 35 in Europe, whilst so-called importers pay the cost in China. Some “manufacturers”, who were previously importing bicycles from China have even moved assembly to Europe because it is cheaper.

    Finally, she warns that duties will limit the offer, increase the prices and stifle product development and innovation. Electric bikes will become a lot less attractive and consumers will be deterred and encouraged to stay with their unsustainable means of transport.

    Annick Roetynck concludes: “Europe is facing many challenges today, among which the fight against climate change is far from over, whilst a global trade war is looming. Therefore special attention should be paid to those sectors which allow to progress towards a cleaner and stronger Europe. Imposing duties on e-bike imports from China would be an enormous setback as it would deal a fatal blow to a large number of European importers’ businesses and seriously limit the uptake of this sustainable means of transport. It is for these reasons that the Collective of European Importers of Electric Bicycles would kindly ask you to reconsider the imposition of both provisional and definitive duties.

    Here, (EU industry performance indicators), is the non-confidential version of the Commission’s report on the performance indicators for the sample of EU-“manufacturers”

    Here, (letter Commissioners), is the original version of the letter sent to the four Commissioners.

    For further details, please contact LEVA-EU Manager, Annick Roetynck, email leva-eu@telenet.be, tel. +32 9 233 60 05

  2. European importers sue European Commission over registration of e-bike imports from China

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    On 10 July 2018, two European e-bike importers filed with the EU General Court an application for annulment of the Commission Regulation imposing the registration of imports of electric bicycles from China.

    Since 4 May 2018, by order of the European Commission, all new imports of electric bicycles from China must be registered with the competent custom authorities. While no duties are immediately applied during this registration, the process has created the risk of retroactive collection of anti-dumping/anti-subsidy duties at the end of the Commission investigations. This is having a “chilling effect” on the market.

    The Commission Registration Regulation states that the potential anti-dumping duties alone could be as high as 189% of the value of the imports. This de facto means for importers’ the cancellation of purchase orders, reduction in import volumes, loss of sales contracts with Union customers, while at the same time having their customer relations and reputation jeopardised, and potentially face compensation claims for breach of contract.

    The sheer scale of this potential liability has left the importers with no choice but to file an action to the General Court to annul the registration which in their opinion was enacted in breach of EU law.

    The importers assert that the Commission Registration Regulation lacks merit: first, the importers claim that all evidence collected by the Commission so far shows that the EU industry has not been injured since even the allegedly injured “EU industry” has managed to increase its sales and production in absolute terms.

    Second, the importers raised that the European Commission infringes their procedural rights, particularly the right of defense and the right to be provided by the European Commission with sound reasons for enacting the registration. The European Commission has not, unfortunately, explained to the importers how imports of electric bicycles could be injurious to the EU industry that is growing in sales, production volumes and profits.

    Speaking at Eurobike, Annick Roetynck, LEVA-EU Manager, stated: “Importers of electric bicycles are seeking the annulment of the registration regulation which was neither based on facts nor imposed with due process and is effectively causing a chilling effect for the importer’s businesses.”

    The imposition of 189% anti-dumping duties would seriously affect affordable e-bikes, just as they are rising in popularity amongst EU consumers. E-bikes are becoming more frequently used by young people, commuters, seniors, and urban delivery services alike. At a time when the EU is struggling to reach its climate targets in transport and our cities are congested, Europe should work for sustainable mobility solutions rather than engage in unwarranted protectionist measures.

  3. LEVA-EU presentation at Eurobike: Anti-dumping duties on e-bikes injure importers

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    During a presentation at EuroBike, e-bike importers discussed the ongoing anti-dumping investigation opened by the European Commission in October 2017 which may result in the imposition of duties on imports from China.

    Importers expressed concerns that this investigation may deal a fatal blow to their businesses and the thousands jobs they represent. Indeed, duties as high as 189% on imports from China could kill off the affordable end of the market and severely restrict competition.

    What’s happening? Following a complaint brought by the European Bicycle Manufacturer’s Association (EBMA) on 8 September, the European Commission opened an investigation into imports of e-bikes from China on 20 October 2017. Since 4 May 2018, the European Commission imposed the registration of all new e-bike imports with the competent custom authorities. By 20 July 2018, Brussels will decide whether to impose provisional duties on e-bikes. A final decision on definitive duties is expected in January 2019. In the meantime, they may decide to collect duties retroactively from importers.

    Speaking at Eurobike, Annick Roetynck, LEVA-EU Manager, said: “The situation for importers is intolerable. Some importers have shipments waiting at sea. If they cannot be unloaded and sold, the importers lose their investments. If the Commission decides to collect duties retroactively, importers may lose their entire business. This is already punishment before a verdict was reached. The chaos and uncertainty created by this baseless procedure pose an existential threat to small businesses and the growing e-bike market in Europe.”

    Moreover, the case is completely opaque and riddled with procedural absurdities. First of all, complainants refuse to make public the export data on which they based their complaint, which goes against the importers’ due process rights. Second, the European Commission is using Switzerland (!) as a benchmark to analyse prices in its investigation. Having compared the production cost between Switzerland and China, the Commission alleges a dumping margin of 193% to 430%.

    Finally, the complainant failed to prove any injury to the European e-bike industry. As was maintained by LEVA-EU during various public hearings in front of the Commission, the profitability numbers of the EU producers in the sample have never been higher. Largely, that is because European e-bikes are leading the upper price segment of the market.

    In response to continued violations of their due process rights, today a lawsuit against the European Commission has been initiated. The official case was logged on Tuesday 10 July 2018. Annick Roetynck, LEVA-EU Manager, said: “An application for annulment with the General Court of the EU has been filed. We are seeking the annulment of the registration regulation, which was neither based on facts nor imposed with due process and is effectively causing a chilling effect for the importer’s businesses.”

    The imposition of 189% or higher dumping duties would seriously affect affordable e-bikes, just as they are rising in popularity. E-bikes are becoming more frequently used by young people, commuters, seniors and urban delivery services alike. At a time when the EU is struggling to reach its climate targets in transport and our cities are congested, Europe should work for sustainable mobility solutions rather than engage in unwarranted protectionist measures.

  4. LEVA-EU Dumping Information Meeting at Eurobike and Dumping Injury Survey

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    The Commission’s decision to register imports of e-bikes from China has caused great injury to the companies in the Collective of European Importers of Electric Bicycles and to many more SMEs throughout Europe. The uncertainty about potential retroactive collection of duties and the level of potential duties is causing enormous chaos.

    To provide clarification on the case, LEVA-EU organizes an information meeting on the dumping case at Eurobike open to all interested parties.

    LEVA-EU Manager, Annick Roetynck, will present an overview of what has happened so far and what is still to happen: the procedure, registration, retroactive collection, provisional duties, decision on final duties, … After the presentation, together with a few members of the Collective, she will answer all questions the participants may have.

    The information meeting is open to all interested parties but prior registration is required. Participation is free for LEVA-EU and Collective Members. For non-members to participate, they have to register and pay on this website: https://www.eventbrite.co.uk/e/leva-eu-information-meeting-dumping-case-e-bikes-china-tickets-46608013824.

    Also, on behalf of the Collective, LEVA-EU has launched a survey to measure the injury.

    Should the European Commission pursue the 189% duties as mentioned in the Registration Regulation, this will force many companies to close or to go bankrupt. The Registration Regulation is currently resulting in shortage of electric bike supplies, price increases and considerable losses.

    The Collective of European Importers of Electric Bicycles wants to show to the Commission how many companies are affected and to what extent the Registration Regulation has and still is causing damage.

    That is why LEVA-EU has, on behalf of the Collective, launched a short survey for importers, dealers or any other stakeholders in the electric bicycle business. Anybody affected by the anti-dumping proceeding in general, and the Registration Regulation in particular, is invited to help the Collective to show the European Commission the level of injury this is causing by completing a short survey low, which is available here:

    https://docs.google.com/forms/d/e/1FAIpQLScHPKIcIZ1ALr1Aq2uAJfY44eHd7pWQHDnYRy8S2GoHjEDqCQ/viewform?c=0&w=1

  5. Collective Members’ right to defence ignored

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    On Wednesday 13th June, the Collective of European Importers of Electric Bicycles had a second hearing with the European Commission. At this hearing, they showed a European Parliament video that goes against their right to defence.

    This hearing was aimed at discussing the lack of response from the Commission on the Collective’s submissions so far. Furthermore, the Collective pointed out that certain elements of the proceedings go against the importers’ right of defence.

    Eleven of the 21 companies in the Collective travelled to Brussels to participate in the hearing. Each of them gave a detailed and sometimes very personal account of how the registration decision has injured their company in various ways.

    The Registration Regulation has caused enormous chaos and has forced importers to take a variety of measures to try and protect themselves against a potential retroactive collection of 189% duties. However, all these measures are causing injury to their companies.

    The Collective Members believe it is utterly unfair to have to endure, what they consider punishments, whilst not yet been “found guilty”.  One importer concluded: “We are hit by the results of the trial before the trial is completed. That is not the correct  procedure.

    During the hearing, the Collective showed the Commission a video produced by the European Parliament. The video is meant to clarify why anti-dumping legislation needs some changes. However, the issue is being introduced by referring to the electric bicycle case. This is a transcript of the introduction: “Electric bikes are powering their way across Europe. Increasingly popular, the bikes are also at the centre of an international trade dispute. At the heart of the matter is dumping; a practice that involves foreign companies selling their state-subsidized products at below market price. In this case, Chinese made electric bikes are being sold cheap in Europe, which the EU believes threatens businesses and jobs.

    This video is implying that the European Parliament has made up its mind about an ongoing proceeding. This is to, put it mildly, totally unacceptable and totally goes against  the Collective’s right of defence. Obviously, the Collective will take the necessary legal actions. However, this video shows that, in this alleged dumping case, political considerations seem to carry more weight than a fair and just assessment of facts.

    The Collective is considering further measures to have their right of defence respected.

    The full video is here:   http://www.europarl.europa.eu/news/en/headlines/economy/20180530STO04606/anti-dumping-measures-addressing-unfair-trading-practices

  6. LEVA-EU Information Meeting on Dumping Case at Eurobike

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    LEVA-EU is fighting, together with a group of European importers, against the anti-dumping proceeding concerning electric bicycles from China. The whole European LEV-business will suffer if anti-dumping duties are to be applied. A large number of companies will be forced out of business, the offer will shrink, prices will increase and consumers will be turned away from electric bicycles. Reduced competition will adversely affect research and development.

    This case has been the single most important topic of conversation in the electric bike business this year and will be the topic of conversation at Eurobike. With that, a lot of rumours, fake news and alternative facts are going around, causing even more disruption.

    LEVA-EU organizes an information meeting on the dumping case at Eurobike to tell the correct story, from our side of the fence of course. The information meeting is open to all interested parties.

    LEVA-EU Manager, Annick Roetynck, will present an overviewof what has happened so far and what is still to happen: the procedure, registration, retroactive collection, provisional duties, decision on final duties, … After the presentation, together with a few members of the Collective, she will answer all questions the participants may have.

    To ensure that your questions get answered at this meeting, we encourage you to send them in advance to leva-eu@telenet.be.

    As the meeting takes place over lunch time, a modest lunch will be offered to the participants.

    The information meeting is open to all interested parties but prior registration is required, click The information meeting is open to all interested parties but prior registration is required: https://www.eventbrite.co.uk/e/leva-eu-information-meeting-dumping-case-e-bikes-china-tickets-46608013824. Please bring your ticket with you.

  7. Urgent appeal to importers confronted with registration deposit and/or 48.5% on components!

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    LEVA-EU is receiving information about importers throughout Europe being confronted with a 189% deposit to be paid for their electric bicycles from China to be released.

    We are also receive growing evidence of customs and forwarders stating that bicycle components for electric bicycles (i.e. frames, forks, derailleur, handlebars, etc.) are subject to 48.5% anti-circumvention duties. 

    This is an urgent appeal for those importers:
    – 
    who have written evidence of requests for deposits
    – who have statements that bicycle components for electric bicycles are subject to 48.5% anti-circumvention duty
    – who have effectively paid 48.5% anticircumvention duties on bike parts used for electric bikes

    to get in touch with LEVA-EU as soon as possible.

    Annick Roetynck, LEVA-EU Manager
    leva-eu@telenet.be

  8. Collective’s Response to Registration: Registration Regulation Causes Irreparable Damage to Eu Importers

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    The Collective of European Importers of Electric Bikes expressed a burning protest against the Commission’s decision to register imports. The group denounces the fact that the Registration Regulation causes severe injury to the European importers and seriously jeopardizes the future of the affected companies. While there is still no conclusive evidence for the accusation that imports are injuring the EU industry, the Regulation threatens importers with the possible retroactive collection of sky-high dumping duties. This threat hangs like a sword of Damocles over the head of a very large number of European SMEs.

    Today, the Collective has submitted its official response on the Registration Regulation to the European Commission. In the document, the Collective fiercely criticizes the Commission’s arguments. A first essential point of criticism is that the Commission has based the registration decision entirely on the complaints of the EBMA and on Chinese statistics, obtained in a way that is, to say the least, very doubtful.

    No injury to EU producers

    The Collective argues that the investigation has been going on for six months, enough time for the Commission to test the EBMA complaints against reality and come to provisional findings, for example on the injury to the European industry. As for this, it is a fact that the Commission does have useful information as a result of the verification visits carried out at Accell, Derby Cycle, Eurosport, Gazelle and Prophete. After these investigations, the non-confidential findings were made public. These clearly show that, for all companies, profitability for the product concerned improved significantly in 2015, 2016 and during the investigation period. (See the table below)

    23. Profitability of the Product in Question 2014 2015 2016 IP
    Accell Group EUR 100 191 182 67
    Derby Cycle Holding GmbH EUR 100 163 228 197
    Eurosport DHS SA EUR 100 344 867 1,895
    Koninklijke Gazelle NV EUR 100 431 236 332
    Prophete GmbH & Co. KG EUR 100 68 81 118

    Source: Sampled EU Producers Questionnaire Replies

    These findings go totally against EBMA’s allegations about the injury to European industry as a result of Chinese imports. In defence, the Collective asks the Commission, and this for the third time, to confirm the accuracy of the damage indicators that have been established by verifying the sampled producers. The Collective adds that this information shows no injury for EU producers whatsoever, but crucially improving trends in terms of turnover, sales volumes and profitability.

    Appalling messages

    A second essential point of criticism is that the European Commission systematically ignores all argumentation of the Collective. That is in conflict of the article in the dumping legislation that explicitly requires the Commission, as far as registration is concerned, to give importers the opportunity to comment. The Collective states that the right to comment is purposeless, if the Commission can simply completely ignore the Collective in the way that it has done, without explaining why their argumentations and the evidence provided has not been sufficient persuasive to the Commission.

    The Collective is utterly dismayed by the message that the Commission has sent out with this registration. The Collective is particularly appalled by the dumping rates mentioned in the Regulation because they strike fear into the hearts of EU importers faced with potentially gigantic duties. And the Collective warns the Commission that most importers will be forced to close their business if such high duties would be collected retroactively.

    The Collective further notes: “As for the indicative dumping duty rates of 189%, the Commission is fully aware that in no previous anti-dumping investigation has dumping duties even close to this rate ever been imposed by the EU on any imports from any non-EU country. Yet this is the figure that importers have to work with when managing the risks of carrying on their business. Factoring in such an enormous cost renders continued business unfeasible if almost double of the import value of the bicycles will have to be paid in early 2019. It is therefore highly regrettable that the Commission made such a statement of an excessively high potential duty rate being retroactively imposed.

    Dubious data source

    A third, important point of criticism is the fact that the European Commission continues to rely on the use of Chinese export data and to confidentiality for the source of that data. In the Regulation, the Commission mentions two reasons for keeping the data confidential. First, disclosure would breach copyright and, second, the source is known and public against payment.

    In the complaint itself, EBMA did not ask for confidentiality for the source. That was only claimed afterwards for reasons, which, to date remain undecipherable. In the meantime, the Collective has researched the availability of the data and found that the necessary data to a 10 digit level (as used by EBMA) cannot be provided because they are not publicly released by the Chinese authorities.  This is consistent with the official statement from the Chinese customs authorities (available online on government’s websites: see point 0.1.3 in http://www.customs.gov.cn/publish/portal0/tab70498/info772783.htm) that export data is available only up to 8 digit level. All this goes against the Collective’s right of defence because the Commission is determining import volumes based on data, which the Collective is unable to verify.

    Irreparable damage

    The Collective concludes: “The Collective and its members are concerned by the lack of objectivity demonstrated by the Commission in the Registration Regulation and worst still, the consequences of its apparent endorsement of the extreme claims made in its two complaints.

    The damage caused by the statements made in the Registration Regulation to EU importers is irreparable. They will never be able to recoup the lost sales volumes and revenues in the 2018 season caused by the excessive, disproportionate and unwarranted element of risk that has to be managed as a consequence of the signals sent out to the market in the Registration Regulation.

    Finally, the Collective has requested for another hearing to further explain their concerns regarding both registration and the lack of injury and causation. A the same time, the Collective is contacting the Hearing Officer to also arrange a hearing with this service should the Commission continue to decline the Collective’s requests for the additional information and clarifications set out in the submission.

    For further details, please contact Annick Roetynck, LEVA-EU Manager, leva-eu@telenet.be, tel. +32 9 233 60 05.

  9. Commission confirms registration of e-bike imports from China

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    Today, 3th May, the Commission has confirmed that as of 4th May, EU customs’ authorities will start to register the import of cycles, with pedal assistance, with an auxiliary electric motor, currently falling within CN codes 8711 60 10 and ex 8711 60 90 (TARIC code 8711 60 90 10) and originating in the People’s Republic of China.

    This does not mean that there are duties applicable yet and it does not implicate the certainty that duties will become applicable.

    It only means that retroactive collection of duties is made possible. However for that to happen, the Commission will need to decide for provisional duties. The deadline for a decision on provisional duties is 20th July. But, for provisional duties to result in retroactive collection, the Commission needs to decide on definitive duties. That decision is expected around January 2019.

    In any case, retroactive collection would only be allowed for imports registered from 4 May 2018 onwards.

    Should provisional duties be imposed, then these will not be payable immediately but they shall be secured by a guarantee. At this moment in time, it is still impossible to make any prognosis as to the potential imposition of definitive duties nor on the level of such duties.

    The Collective together with their lawyers will be thoroughly analysing the Regulation and submit comments to the Commission within the procedural deadline of 21 days.

    On behalf of the Collective, LEVA-EU Manager Annick Roetynck stated: “Although this is a setback, it affects in no way our determination to continue to fight for the Collective.

    For further details, please contact Annick Roetynck, email leva-eu@telenet.be, tel. +32 475 500 588.

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