Comments Off on Last call for LEVA-EU meeting on dumping, Thursday 16 November in Brussels
The possible revision of the trade defence measures against e-bikes from China is the direct reason for LEVA-EU to convene a meeting on Thursday, 16 November in Brussels. The trade association for light electric vehicle businesses argues that a new period of 5 years of measures would continue to cause unprecedented damage to the electric bicycle sector in Europe. That is why LEVA-EU wants to discuss with the affected companies and their lawyers how the current immense problems can be tackled jointly and how a possible request for review can be jointly responded to.
The meeting is open to any company which currently is or has been affected by actions by customs and/or OLAF. Both LEVA-EU members and non-members are welcome. The companies and their lawyers can participate in the meeting free of charge, provided they first register with LEVA-EU manager, Annick Roetynck, annick@leva-eu.com, tel. +32 475 500 588.
The companies are invited to submit a short report of their case to LEVA-EU, which will allow to organize the consultation around a few “cases“. That consultation will be aimed at achieving a possible joint approach to all customs/OLAF actions as well as to the possible review of the dumping measures. The meeting is also intended to offer lawyers the opportunity to exchange ideas with colleagues about argumentation and defence in various cases.
The companies known to LEVA-EU as being under attack have been invited directly. All other companies and/or their lawyers are urged to register with LEVA-EU as soon as possible, upon which they will receive a direct invitation. All companies involved are also requested to pass on the invitation for this meeting to other companies that are under attack.
In the meantime, MLEX reports that “EU manufacturers” have effectively requested the Commission to extend the anti-dumping and countervailing duties on electric bikes from China for another 5 years. According to MLEX, “the companies asking for a review, argue that without import restrictions, there’s a risk Chinese rivals will resume distorted imports in Europe and hurt EU businesses.” The Commission is expected to decide by 19 January whether to open expiry reviews.
Comments Off on Join LEVA-EU for meeting on damage to EU e-bike companies by dumping measures
On 16 November 2023, LEVA-EU will be hosting a meeting in Brussels for EU e-bike companies who are being attacked by the customs, by OLAF or both, following the anti-dumping and countervailing measures against electric bikes from China. We have reports of companies in virtually all member states being threathened with duties, fines and even prison sentences for company managers, for alleged violation of the trade defence measures.
LEVA-EU invites all companies who are under attack as well as their lawyers to a meeting in Brussels on Thursday 16 November. The purpose of the meeting is two-fold. We want to consult with the companies on a plan of action to systematically raise the issues with the European Commission, Parliament, Olaf and customs services. Secondly, we want to enable the lawyers defending the attacked companies to exchange information and expertise to optimise their defence.
This week, LEVA-EU will send out direct invitations to those companies that have already contacted the association with respect to their problems with customs and/or OLAF. All other companies who have not been in touch with LEVA-EU yet, are invited to report to the organization by phone +32 475 500 588 or by email annick@leva-eu.com. The meeting is open to both LEVA-EU members and non-members.
Further information about the meeting of 16 November will follow but those interested in attending are invited to contact LEVA-EU Manager Annick Roetynck as soon as possible by phone, +32 475 500 588 or by mail, annick@leva-eu.com.
Before the Summer, the Commission has announced the expiry of the measures against electric bicycles from China in the Official Journal. LEVA-EU is anticipating a review and potential renewal of the measures. In the meantime, the Kafkaesque legislation and the multiple actions by national customs services and OLAF, cause unacceptable disruption and damage to many European companies. Ahead of the anticipated review, LEVA-EU called a while ago on all companies affected by the measures for evidence. The response was so overwhelming that LEVA-EU now decided to invite all affected parties to a meeting in Brussels on 16 November.
LEVA-EU’s call for evidence resulted in a tsunami of companies calling at LEVA-EU’s booth at Eurobike to report on their ordeal. The stories are harrowing and the measures customs are threatening with are such that they will simply destroy businesses. The actions are taking place across Europe as well as in countries outside Europe, including Taiwan, South Korea, Thailand, Turkey, … The allegations are very diverse: circumvention of dumping measures against electric bikes assembled outside the EU, circumvention through assembly in the EU, wrong application of rules of origin, wrong HS-classification, circumvention of anti-dumping duties on essential bicycle parts, wrong use of the Commission’s exemption, assembly without end-use authorisation, assembly of parts not within time limit or simply “fraud“. Entrepreneurs are threatened not only with overdue duties and staggering fines but worse, imprisonment. One of them has effectively been detained for several weeks.
LEVA-EU has been working relentlessly to explain all legislation pertaining to this e-bike case. In meetings with the European Commission, we have explained the many aberrations an discrimination in the rules, the net result of which being that it’s virtually impossible to start-up a new e-bike business in Europe, while many existing businesses are under threat due to unfair rules. Ahead of the review, we will continue to do so. To this end, we are in the process of drawing up an inventory of as many cases as possible of European companies that are being investigated by customs and/or OLAF.
Comments Off on LEVA-EU calls for evidence of damage to EU e-bike companies by dumping measures
The Commission has announced the expiry of the measures against electric bicycles from China in the Official Journal. LEVA-EU is anticipating a review and potential renewal of the measures. In the meantime, the Kafkaesque legislation and the multiple actions by national customs services and OLAF, cause unacceptable disruption and damage to many European companies. Ahead of the review, LEVA-EU calls on all companies affected by the measures for evidence.
In the EU Official Journal of 2 May, the European Commission has published a notice of the impending expiry of the anti-dumping and countervailing measures against electric bicycles from China. This notice only results from normal procedural rules. The deadline for the current measures is 19 January 2024. Article 11.2 of the basic Dumping Regulation stipulates: “A definitive anti-dumping measure shall expire five years from its imposition (…), unless it is determined in a review that the expiry would be likely to lead to a continuation or recurrence of dumping and injury. Such an expiry review shall be initiated on the initiative of the Commission, or upon a request made by or on behalf of Union producers, and the measure shall remain in force pending the outcome of that review.”
It seems a foregone conclusion that EBMA will request a review. However, the main question is what arguments the organisation will use to extend the measures for another five years.
In the past 4.5 years, EBMA has developed a surging discours on bringing industry back to Europe and especially on the large number of jobs that will come with it. The whole campaign culminated in a European Parliament Motion for a resolution on developing an EU cycling strategy which, very triumphantly announced that “the EU cycling ecosystem can scale up to 2 million jobs by 2030”.
Much, of course, depends on the definition of the ‘EU cycling ecosystem”, but the fact is that we are still very far from those targeted two million jobs. In a report on employment in the (e)bike business, CONEBI concluded that there were 155,00 jobs in 2021. Incidentally, it appears that the violins in the (e)bike business are not quite tuned in unison. In their 2022 market report, the German (e)bike industry association stated: “The ZIV anticipate no large-scale relocation of production (reshoring) to Europe at the current time. However, it does expect production in The EU to grow in importance.”
And, contrary to what EBMA might claim, the anti-dumping measures are all but helpful to achieve the objective of 2 million jobs, since they are a major obstacle in starting up new companies, whilst causing extensive damage to existing companies in the European Union.
EBMA shouts so loudly that the measures are absolutely necessary for “reshoring for better sustainability, more EU green jobs and EU investments/innovation”, that everyone, including the EU authorities seem to forget what dumping is really about. It is of course not about reshoring, green jobs nor about investments or innovation. The WTO defines dumping as “in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country.” Another important element of dumping is the injury it causes to the EU-industry. And here lies the crux of the matter: what is the European ebike industry? In the end, everyone does the same thing: buying parts and assembling them into electric bikes. The net result of the measures against China however is that one part of the European ebike “industry” proffers from the measures, while another part is getting severely injured.
The anti-dumping measures on electric bicycles from China have nothing to do with “a situation of international price discrimination“. They prove to be a huge barrier for those European companies that have had to find an alternative to assembly in China and equally for all those trying to start a new e-bike business in Europe since the introduction of the measures.
As for assembly in Europe, anti-dumping measures have become completely intertwined with the extension of anti-dumping measures on bicycle parts from China. Furthermore, the Commission has created a highly discriminatory legal distinction between companies that assemble both conventional and electric bicycles and those that assemble electric bikes only. Furthermore, the Commission has recently made it quite a bit more difficult to obtain an exemption for assembly of conventional and electric bicycles. The entire legislation is so complex that no manufacturer can be assumed to understand the rules on their own. Start-ups are forced to pay anti-dumping duties on electric bike components for quite a while, before obtaining the necessary authorization to be released from duties on components. Who can afford this?
However, after having paid duties on e-bike components, which according to Sabine Weyand, Director General of DG Trade are not subject to anti-dumping duties, they are then subject to extensive financial guarantees. In addition, shortly after introducing dumping duties on e-bikes from China, the European Commission also changed the rules of origin for imports of electric bikes from non-preferential origin countries overnight.
In the meantime, both national customs authorities and OLAF are constantly investigating companies, electric bike imports and assembling facilities in and outside Europe. The companies involved usually have no idea what they are suspected/accused of, nor are they given any information about the progress of the case. Some, meanwhile, have been waiting for news for three years and live with the threat of fines that may push them into bankruptcy, sometimes even imprisonment!
LEVA-EU has been working relentlessly to explain all legislation pertaining to this e-bike case. In meetings with the European Commission, we have explained the many aberrations an discrimination in the rules, the net result of which being that it’s virtually impossible to start-up a new e-bike business in Europe, while many existing businesses are under threat due to unfair rules. Ahead of the review, we will continue to do so. To this end, we want to draw up an inventory of as many cases as possible of European companies that are being investigated by customs and/or OLAF.
So, are you or have you been investigated by customs and/or OLAF and are you or have you been accused of for instance:
Buying from a European supplier who is suspected of circumventing anti-dumping duties on electric bicycles from China
Not paying anti-dumping duties on bike components for e-bike assembly
Using incorrect HS codes to avoid anti-circumvention duties on bicycle components
Assembling in the EU or buying from an assembler without an exemption or end-use authorization
Illegal application of rules of origin for e-bikes that are produced outside the EU and China
We kindly request you to report your problems to LEVA-EU. We guarantee absolute confidentiality. Cases may be reported to LEVA-EU Manager Annick Roetynck by phone, +32 475 500 588 or by mail, annick@leva-eu.com. Alternatively, you can also book an appointment at the forthcoming Eurobike, here: https://calendly.com/annick_leva-eu/eurobike-meeting
Comments Off on Greenway completes move into new Taizhou HQ
The LEVA-EU member, who produces battery packs for use in LEV projects, has moved into a new state-of-the-art headquarters.
The new property, based in Taizhou, China, has a footprint of 23,000 square meters, with a total construction area of 100,000 square meters and a workshop area of approximately 64,000 square meters. Alongside existing key staff, the HQ will contain Greenways’ new R&D and Innovation centre, ensuring the company’s lithium-ion battery products are of the highest quality.
Johnson Electric announces the acquisition of an 80% stake in LEVA-EU member Pendix GmbH, a well-established technology-driven market player in the e-bike industry. Based in Zwickau, Germany, Pendix designs, manufactures, and brings complete electric cargo bikes and electric drives for bicycles to market. Pendix’s offering combines leading innovation with an extremely high level of product reliability.
“By welcoming Pendix as part of Johnson Electric Group, we are expanding our e-mobility offering and entering the e-bike market. With Johnson Electric’s industrial scale and global reach together with Pendix’s expertise in the e-bike sector, we are positioning ourselves into a fast-growing and innovative industry,” said Dr. Patrick Wang, Chairman and CEO of Johnson Electric.
“Our engineering center in Dresden, Germany, is in close proximity to Zwickau. This will enable close collaboration with the highly skilled Pendix team. We’re excited about expanding into the e-bike sector, and by doing so we hope to create a more sustainable future for personal mobility,” added Austin Wang, Senior Vice President of Johnson Electric.
All Pendix founders, who started the company in 2013, will remain shareholders of Pendix and continue in their active management roles to lead the business growth plans.
“We are extremely pleased to join such a reputable company as Johnson Electric and are convinced that our common passions for innovation and engineering perfection together with a strong cultural fit are a great foundation for reaching the next level of success,” commented Thomas Herzog, co-founder and CEO of Pendix GmbH.
Comments Off on EU Court annuls anti-dumping & anti-subsidy Regulations for Giant
End of April, the EU General Court has ruled that the anti-dumping and anti-subsidy Regulations on imports of electric bicycles from China must be annulled in so far as it concerns the applicant, i.e. Giant.
The judgment is clear and simple. The Commission has made a methodological error in the determination of price undercutting which cannot be overcome. This error invalidates the causal link between the alleged dumped imports and the injury to the EU industry. As a result, the Court has annulled both the anti-dumping and anti-subsidy Regulations for Giant.
More importantly, the Court has stated that the methodological error has a bearing on the calculation of price undercutting established in respect of the other sampled exporting producers. In other words, the Regulations are in theory not only invalid for Giant but for all parties involved. However, only Giant took the case to Court and, therefore, the Court can only rule for Giant.
This judgment proves how shaky the Commission’s evidence in this case was. And because the evidence was so shaky, the Court had no trouble in overturning it.
LEVA-EU is currently seeking legal advice on the wider implications of this judgment. The Anti-Dumping and Anti-Subsidy Regulations in question continue to have a very negative impact on European companies. Partly because of the intertwining with the anti-circumvention rules on bicycle parts, it is nearly impossible to start up a new e-bike business in the EU. At the same time, life is also continually made difficult for e-bike importers and assemblers outside Europe and China.
The court has exposed part of the injustice. Hopefully, this verdict will lead to the elimination of all other trade barriers resulting from these two fundamentally flawed EU regulations.
In February, the European Public Prosecutor’s Office (EPPO) has communicated on two cases of alleged circumvention of the anti-dumping duties on electric bicycles from China.
One case is situated in Naples, where companies allegedly imported dissassembled e-bikes from China and declared them as e-bike parts and spare parts, instead of e-bikes. The companies are also accused of evading VAT by using Turkey as country of origin and Turkish shell companies.
The second case is situated in Palermo, Sicily. A company there is accused of importing e-bikes from China and falsely declaring Malaysia as country of origin. This case was initiated following a report by the European Anti-Fraud Office (OLAF).
Investigations into both cases are ongoing.
If you have any questions on how to import components and e-bikes from outside the European Union or on how to import components, with a view to assembling in the EU, please contact LEVA-EU Manager, Annick Roetynck, annick@leva-eu.com. We have an exhaustive briefing with full details on how to avoid circumvention and how to work legally both in and outside the EU.
Global electric vehicle usage continues to rise, and with it, potential battery waste. Changes to legislation in China provide a case study for other countries wishing to alter the life cycle of their batteries.
China is the world’s single largest early adopter of electric vehicles. Alongside this wave of new technology are new challenges, including an enormous quantity of batteries that must be reused or recycled. Over the last 6 months, China has seen a series of new directives that act to build upon existing battery reuse and recycling schemes, industry, and infrastructure. The success of these initiatives over the coming months and years will provide crucial insight into how other countries can improve battery usage and secure a more environmentally conscious future for electric vehicles.
During 2021, 3.3 million new energy vehicles (NEVs) were sold in China; these include purely battery, hybrid, plug-in hybrid, and hydrogen fuel cell vehicles. This number does not account for the millions of electric bikes and mopeds additionally sold during the period. The Ministry of Industry and Information Technology (MIIT) now aims to ensure greater environmental protection, improved resource utilization, and healthy NEV development through new directives. The battery recycling market in China is estimated to reach 3.59 billion euros by 2025.
Battery reuse – a sustainable ladder
After an operating period of 4-6 years, electric vehicle batteries operate at a capacity below 80%, becoming unfit for the original intended use. Here the second life ‘ladder’ utilized by China comes into action, moving batteries into slower electric vehicles, and eventually, stationary energy storage units. The policy is referred to as ‘most urgent use first’, with older batteries descending the ladder as their performance degrades.
Battery recycling – the ins and outs
At present, there are 47 whitelisted battery recycling companies in China, with two firms – Brunp and GEM representing 50% of official operation. Operating unofficially, a plethora of smaller businesses offering cheaper rates also exist, though may operate in a wasteful, or harmful way.
However, while there is seemingly plenty of activity, only 30-40% of battery materials are estimated to be recycled. The relatively new industry is still finding its footing. In an ideal scenario, once all aspects are streamlined, there is a possibility for 80% of components in many battery types to be recycled.
New directives to kickstart a recycling revolution (2018-2021)
China’s first regulations in 2018 made automakers responsible for the recycling of batteries in their vehicles and promoted an ‘internet + recycling’ business model, facilitating the flow of second-life batteries.
2021’s 5-year plan sees a renewed focus on the electric transport industry in all aspects and lays the foundation for a complete battery recycling system by 2025, representing a more circular battery economy. For region-specific initiatives and specific directives, click here.
On 17 February 2021, LEVA EU launches its official Chinese Wechat (the primary social media platform in China) account, with the goal of bridging the information gap and sharing LEVA EU updates with Chinese contacts.
“We have been cooperating and working with our Chinese members and partners very activelyfrom the start of our association“, LEVA EU Manager Annick Roetynck says, “but with the help of this Wechat account, we hope to bring our relationship and communication even closer. We know a lot of our European members also use this tool when working with their Chinese partners, and we hope they can share the channel with their Chinese network, who can surely benefit from the information we will publish.“
LEVA EU China Affairs Director, Dennis Hu, explains “the Wechat account will share related information on a monthly basis, with a mission to create a closer and deeper connection between Chinese associates and members, and the European market.” He added the invitation, “Please do follow our account and we hope to interact with you all soon!“
You may scan and follow LEVA EU’s Wechat account as below.
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