Don’t miss out on the LEVA-EU E-Bike Dealer Trip 2019 to China. Registrations close on Tuesday 10 September! In China, we well be welcomed by some very interesting leading component manufacturers in the E-Bike industry! This is the ultimate networking event for European E-Bike retailers and their suppliers who would like to get a better insight into the E-Bike industry, which is currently blooming.
We organize the LEVA-EU E-Bike Dealer Trip 2019 in cooperation with the Dutch information platform Nieuwsfiets.nu. Managing Director, Arnauld Hackmann, has a long experience in organizing study trips to the Far East. This trip to China is aimed at retailers and their suppliers and will include a number of impressive factory visits (e.g. Bafang, WorldPower, TailG, …) We will visit a variety of manufacturers of Ebike components as well as manufacturers of light, electric vehicles such as electric bikes, electric scooters, etc. The tour starts in beautiful Suzhou and moves on via Shenzhen to the final destination Hong Kong.
ACIENT TOWN | As we are in China, we must use the opportunity to visit some nice hot spots such as the city of Suzhou. Few cities in China are as famous for their luster and grandeur as Suzhou. The Italian merchant Marco Polo was the first European to visit this city many centuries ago. He described Suzhou with its many canals, hundreds of bridges and beautiful gardens and temples as an impressive and majestic city. Suzhou used to be the Chinese silk capital. Although, in recent decades, it has grown into a major city with a population of several millions in recent decades, the ancient town has been very well preserved.
METROPOLIS | As the ultimate metropolis, Hong Kong is of course a unique experience! For example, it has one of the most impressive skylines in the world, whilst also offering many places of natural beauty. Since the metropolis, with a population of 7 million, has its own government and legislation, it also gives a very different image of China than the rest of the People’s Republic.
DIVERSE CUISINE | During the trip we stay in comfortable 3 and 4 star hotels: Holiday Inn Express in Suzhou, Novotel Watergate in Shenzhen and the Royal Pacific and Towers in Hong Kong. These hotels have been carefully selected and you will be short of nothing. You will also be introduced to Asian cuisine, which is particularly varied. The factories, which we visit treat us to lunch or dinner and as a result we end up in the best restaurants. The evening hours are without exception cozy and sometimes continue until the small hours.
TAILOR MADE | In order to make the journey as smooth as possible, Arnauld Hackmann has from the start made grateful use of the expertise of ANKO Business Travel, which specializes in business trips. Should you have particular wishes, for example regarding traveling in a more luxurious class or extending your stay in Asia, ANKO can easily present you with tailor-made solutions.
The LEVA-EU Ebike Biztrip 2019 is only accessible to colleagues who work in the (electric) bicycle industry. Unfortunately, interested consumers are not allowed to join this inspiring business trip.
The first LEVA-EU E-Bike Dealer Trip to China is definitely on. More than half of the available seats are booked already, so if you are interested to join, you better register sooner rather than later.
Little by little the programme is also shaping up. We can now confirm factory visits to Bafang (motors) and Phylion (batteries) in Suzhou and to TAILG (LEVs), Dahon ((e)folding bikes) and Worldpower (batteries) in Shenzhen, whilst we are still talking to a few more factories.
The Trip will combine business with pleasure, offering sufficient time to explore and enjoy Chinese culture and cuisine in Suzhou and Hongkong. Also, the Trip is a unique opportunity to meet colleagues from different parts of Europe and exchange ideas with them on the e-bike business.
The LEVA-EU E-Bike Dealer Trip is also an excellent opportunity for distributors who want to incentivize their dealers. By engaging in this Trip together with their dealers, they will undoubtedly strengthen their relationship.
LEVA-EU organizes this E-Bike Dealer Trip 2019 in cooperation with the Dutch information platform Nieuwsfiets.nu. Managing Director, Arnauld Hackmann, has a long experience in organizing study trips to the Far East. Furthermore, the Trip takes place at a time when business is usually quiet, from 3rd till 10th November.
The Trip is almost all-inclusive: flights (A’Dam – Hongkong), all transport in China, hotels, meals, … The trip to and from Amsterdam is the only thing participants have to arrange for themselves. The LEVA-EU E-Bike Dealer Trip is very competitively priced at € 2,175 per person, staying in a double room. LEVA-EU members enjoy a 10% discount. The Trip qualifies as a tax deductible cost.
Partnering for green mobility with ‘Splendid Hunan’
On March 28th, Manager of the European Light Electric Vehicle Association (LEVA-EU) Annick Roetynck was honoured to attend the conference and meet with the delegation, which included Governor of Hunan Province, Mr Xu Dazhe, and Ms. Chen Wen, Minister and First Staff Member, Embassy of China in the UK.
LEVA-EU recently attended the Hunan Culture & Tourism Promotion Conference in Dusseldorf, Germany, and there signed a memorandum of cooperation with the Hunan Culture and Tourism Department on the introduction of tourism equipment and the development of tourism products.
At the London event, Annick Roetynck said,
“I want to express that we are very proud to have the opportunity to cooperate with Hunan, to introduce the brand of electric bicycle that Hunan wants to develop in the Chinese market, and to introduce the professional information and operational experience of European electric bicycle tourism to Hunan, to help the development of Hunan’s electric bicycle tourism sector. We believe that Hunan’s tourism market has great potential to attract European tourists, using electric bicycles to explore the beautiful scenery of Hunan”
Hunan, along with many regions in China, is committed to pursuing green technology and progressing green infrastructure. The applications for Light Electric Vehicles in the region, particularly in tourism, are vast. We look forward to the exciting developments to come from this partnership.
In our campaign against dumping duties on electric bicycles from China, one of our main arguments was that a very large part of components come from China. Both importers who had their e-bikes assembled in China and so-called European manufacturers often had no other option but to buy from China because there is simply no production elsewhere.
Remarkably enough, this was confirmed by the European Commission itself when on 20 December 2018, they published Regulation No 1387/2013 suspending import duties on a number of products. The list includes frames, front forks, pedals, handlebars and saddles. The Commission explained that this duty suspension was necessary “to ensure a sufficient and uninterrupted supply of (…) products which are unavailable in the Union and thereby avoid any disturbances in the market for those products.”
It is utterly discouraging, one DG taking measures on the basis of one thing and another DG taking measures on the basis of exactly the opposite.
As a result of the dumping duties, many companies are still working on an alternative for the assembly of electric bicycles in China. LEVA-EU has published a briefing for its members explaining what the legal options are both in and outside the EU. LEVA-EU also has a specific briefing on the above-mentioned suspension of duties.
Many companies are still looking for assembly capacity in or outside the EU and for component suppliers outside China. Any company that has assembly capacity available or is able to supply electric bike components from outside China is invited to contact LEVA-EU. Please provide us with full company details and with detailed information on your activities. All proposals will be carefully scrutinized before passing them on to potentially interested companies.
Please send an email with the required information to Annick Roetynck, LEVA-EU Manager, email annick@leva-eu.com
Have the anti-dumping duties on e-bikes from China disrupted your supply chain? Are you still struggling with finding an alternative in our outside the EU? Do you get lost in the Commission’s legalese on anti-dumping, anti-circumvention, rules of origin, etc? LEVA-EU’s briefing on the dumping case holds all the answers.
The LEVA-EU briefing on the consequences of the imposition of definitive anti-dumping measures has all the necessary details on various legal solutions to continue to assemble and/or import electric bicycles.
In the briefing we explain the following issues:
the scope of the measures
the applied rates
the application date and which provisional duties customs may and may not be collected
how and how not to continue import of e-bikes from China
how to organize legal assembly in or outside Europe
how to legally import components for electric bicycles without paying any duties at all, no anti-dumping duties, no anti-circumvention duties and no regular import duties
For further details on the briefing please contact LEVA-EU Manager, Annick Roetynck, email annick@leva-eu.com, tel. +32 9 233 60 05
The imposition of duties on electric bicycles from China has left many companies, both in Europe and in China, with a myriad of questions and problems as to how to continue their business. That is why LEVA-EU has published a comprehensive briefing on the case in an attempt to answer all these questions.
The LEVA-EU briefing has detailed information on all legal solutions to contine assembly/import of electric bicycles. The briefing also has full details on the import of Chinese components for the assembly in Europe. It appears that many national customs services are not correctly informed. They often impose 48.5% anti-circumvention duties on bicycle components destined for the assembly of electric bicycles. This is unjust and therefore the briefing contains a full explanation on how to address this issue with national customs services.
But the briefing has a lot more information on aspects such as the scope, detailed rates, application dates, etc. As more questions arise, LEVA-EU will continue to update this briefing. LEVA-EU is also collecting information from its members on those customs services that do apply the correct procedures for the import of components, with a view of presenting those services which continue to apply the anti-circumvention duties with best practice.
For further details on the briefing please contact LEVA-EU Manager, Annick Roetynck, email annick@leva-eu.com, tel. +32 9 233 60 05
This week, Bike Europe published a White Paper that allegedly contains “all you need to know on EUs anti-dumping measures on e-bikes imported from China”. I have carefully read the White Paper and my conclusion is that there is not that much to know, except for: come to Europe, have your e-bikes made here and all your problems will be solved.
The main article in the White Paper sketches 5 “illegal and legal scenarios to avoid anti-dumping duties on e-bikes from China”. To be precise, the article contains 4 illegal scenarios, whilst scenario 5 is an undisguised advertisement for setting up shop in Europe. Bike Europe declares that whilst there are only 70 European producers of e-bikes so far (the Commission only found 37), there are 250 bicycle producers eagerly awaiting e-bike orders. From this, it appears that the 25-year old dumping duties on conventional bikes still do not have the desired result, if these 250 producers all have unused production capacity available for the production of e-bikes.
Go to Bulgaria
Bike Europe continues the advertisement with the announcement that it is now even cheaper to have them made in for instance Romania and Bulgaria, then in China. With this statement, the authors of the White Paper seem to be forgetting that one of the reasons why Chinese exporters and European importers are hit with antidumping duties is because the value of their bikes is lower than the normal value of EU produced e-bikes.
The authors continue with their undisguised advertisement and even switch into a political gear, just in case we forget how bad China is: “For Chinese, Taiwanese or companies coming from other Asian countries, there are no closed doors in Europe. There are no barriers to overcome in terms of for instance the obligation to partner with a European company; contrary to EU companies that want to produce in China. Investing in production in Europe brings not only an escape on the e-bike antidumping duties, but also shorter supply chains and being close to market; all elements for establishing a futureproof business.”
Never in my wildest dreams had I ever thought that Bike Europe would join EBMA in their popular tactic of “us” against “them”. The whole anti-dumping case is meant to be read as a battle of European manufacturers against Chinese manufacturers, (words I wrote more than a year ago) and that is exactly what Bike Europe is propagating.
Importers’ ordeal ignored
It is absolutely baffling to me to find that this White Paper even goes as far as justifying the mandate of the EBMA, whilst not paying the slightest attention to the ordeal that an estimated 150 European SMEs are going through due to this unjust, unfair and unfounded case. All these European SMEs, who had their e-bikes assembled in China, had to turn their businesses upside down and inside out overnight. Bike Europe does not have the slightest attention for any of those SME’s whose managers literally had nightmares over laying off staff, not honouring contracts, even potentially going bankrupt, just because one signature from someone in Brussels, had them convicted and punished for cheating.
I was on my way to the Belgian (e)bike exhibition, Velofollies, when the news was announced about the Commission’s final decision. I did not meet one person who cheered over the news, not a single one! The person I remember best is the owner of a small company, designing, specifying and marketing their e-bikes here, but having them assembled in China. It had taken them years to organize their relationships with Chinese suppliers. For all these years, he and his wife had done nothing but work. When he heard the news about the duties, he hung his head in absolute sadness and said: “So, we have worked for nothing last year.” Following Bike Europe’s logic, he has just been stupid, because he’d been bothering with the Chinese whilst the Bulgarians and the Romanians could have done a cheaper job for him.
Investigation too complicated
This very statement about Bulgaria and Romania currently being cheaper than China also proves that Bike Europe does not understand what a dumping case is. It is a trade defence instrument, to defend European trade against illegal trade practices from outside Europe. Dumping is an illegal trade practice, anti-dumping measures are not to be abused as a political tool to protect European economy and European employment. To implement anti-dumping measures, there must be sufficient proof of dumping and of injury to the EU Industry and a causal link between the two. In the past year, Bike Europe has never bothered to really investigate the case, let alone to actually ask those companies that were allegedly injured how that injury manifested itself. Whenever I suggested such investigation, I got told the case was too complicated.
However, the case does not appear to be too complicated for Bike Europe to conclude, with EBMA, that the best solution is to produce in Europe. Unfortunately, the White Paper does lack a few details. Just to mention one: it does not explain how to cope with the import of parts from China. The White Paper does have a story about SKD and CKD but says absolutely nothing about the enormous problems and chaos resulting from the fact that customs all over Europe are unaware of the fact that bicycle parts are exempted from 48.5% anti-circumvention duty if used for the assembly of electric bicycles. The White Paper says something about circumvention but circumvents the issue of who will be able to deal with anti-circumvention on component parts for electric bicycles. It is much more interested in warning against illegal transhipments.
LEVA-EU is working on these issues and providing its members with the necessary information and advice. LEVA-EU is also considering the next steps in this case because anti-circumvention on components for e-bikes will have an even more detrimental impact on the European e-bike sector. LEVA-EU does not believe in the Europeans against the Chinese, LEVA-EU believes in people: in Europe, in China, in Vietnam, in Malaysia, …. This world needs solidarity, mutual respect and cooperation, it certainly does not need yet another blame game.
No less than 60 European SMEs from 13 different EU member states have sent a motivated request to Trade Commissioner Malmström. In the letter, the importing companies explain why the Commissioner should review the Commission’s intention to impose up to 79.3% duties on import of electric bicycles from China. The 60 companies label this plan as “an extremely severe punishment for unsubstantiated dumping allegations”.
The request of the 60 SMEs is being supported by another 27 European companies that are active in the E-bike sector but don’t import electric bicycles from China. They are European producers of components, accessories, LEVs other than e-bikes, but also distributors, dealers, service providers, … All 87 European signatories together employ 1,419 people. The letter has received further support from non-European companies active in the e-bike sector as well as from Chinese e-bike assemblers. The signatories’ list holds a total of 176 names but is confidential.
Unsubstantiated dumping allegations
Dumping measures must always be founded upon three pillars: dumping on the EU market, injury to the EU producers and a causal link between the two. The most important argument for this request to Commissioner Malmström is the fact that the Commission has been unable to establish injury. On the contrary, the Commission itself has established economic performance indicators, which show that the EU producers are fit and healthy[i]:
Sales volume: + 21%
Production volume: + 29%
Production capacity: + 35%
Employment: + 40%
Labour costs: -10%
Profitability: + 25%
Investments: + 77%
Return on investment: + 103%
The only extremely weak argument for the Commission to claim injury is the fact that the industry profitability was 3.4% in the investigation period (Sept. ’16 – Sept. ’17), whilst the Commission feels it should be 4.3% as it was in 2015.
Abuse of TDI
The 60 importers conclude that the Commission intends to impose duties up to 79.3% in order to allow the EU industry (31 companies according to the Commission) to increase its profits by a meagre 0.9% (percentage of sales turnover) at the expense of an estimated 150 European SMEs. According to the letter writers, this calls into question the whole economic efficacy of imposing such duties, resulting in extremely high costs and a huge impact on both Union importers and consumers, whilst the benefit to the Union Industry is outright marginal.
The group warns the Commissioner that final duties will have an immensely negative effect on the whole European e-bike sector. Therefore, they call upon her to reconsider the proposed measures, which will only be for the benefit of a handful of EU companies “who are abusing a trade defence instrument to disturb the market and upset competition”.
Final judgment
On 18 December, the EU member state representatives in the Trade Defence Instruments Committee will meet to give their final judgment on the Commission’s proposal. The 60 SMEs have sent the same request to their respective representatives in the TDI Committee. The decision of the Committee on final measures comes under the examination procedure. This means that the committee’s opinion is delivered by a qualified majority (55% of member states representing at least 65% of EU population). All aspects of this Committee’s meetings are confidential.
This letter marks the final effort of the Collective of European Importers of Electric Bicycles supported by LEVA-EU to fight the Commission’s proposal for the imposition of dumping duties. The Collective will now await the Commission’s final decision, announced for January 2019, upon which they will confer on potential further actions.
[i] PP 14-16 of the AD643 General Disclosure Document
Last week’s General Disclosure Document outlines duties of up to 79.3% ad valorem for e-bikes imported from China. The move will threaten further development of clean mobility, lead to supply shortages and price increases, and destroy the livelihood of dozens of European importing SMEs.
The Commission’s draft decision (GDD) constitutes the preamble to definitive duties due before the end of the year. LEVA-EU and the Collective of European Importers of Electric Bicycles have systematically decried this unfair and absurd case rigged with several
fundamental inconsistencies:
There is no proof of injury, and the threat of injury does not justify the imposition of duties. The Commission examined the EU industry performance in the period 2014-2017, finding +28% production volume, +34% production capacity, +20% sales volumes, +40% employment for the EU industry (GDD pp. 14-16). The loss of market share is the only argument the Commission would have, but this
argument is based on allegedly illegally obtained Chinese statistics.
The Commission will hit dozens of European SMEs for the minimal profit increase of European manufacturers. The only reason why the Commission is imposing the duties is because the European e-bike industry had a profitability of 3.4% in 2017, instead of 4.3%, which is a target profit randomly decided on by the Commission (GDD Recital 165). What’s more, the Commission openly states (GDD Recital 141) its willingness to sacrifice what they call “small importers” for this purpose.
There is a wilful misinterpretation of survey data by the Commission. An online survey conducted by LEVA-EU showed that the proceedings were causing EU importers considerable damage. LEVA-EU collected further and more detailed information on this damage from 14 European importers in the Collective. From all this, LEVA-EU estimated that the ongoing proceedings alone had caused the European importers €90 to €100 million unanticipated costs on top of the provisional duties. This was presented to the Commission at a hearing, but in the GDD the Commission published a completely false report on these surveys. This allowed the
Commission to come to the distorted conclusion that adverse effects on importers would be mitigated by the availability of e-bikes from other markets (GDD Recital 138), a fundamentally flawed conclusion.
LEVA-EU Manager Annick Roetynck stated: “We strongly condemn the Commission’s findings. This case was started because EU “manufacturers” are unable to cope with changing distribution patterns and growing competition. They are only looking to close the market, and the Commission is helping them even though there is no dumping and clearly no injury to European manufacturers. If the Commission goes ahead with the proposed duties, this will exacerbate the damage already done to European importers and mark the start of dark days for the whole European electric bicycle sector, EU climate targets, and for all EU citizens who are using or intend to use an electric bike.”
Campaign success
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Member profile
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ACIENT TOWN | As we are in China, we must use the opportunity to visit some nice hot spots such as the city of Suzhou. Few cities in China are as famous for their luster and grandeur as Suzhou. The Italian merchant Marco Polo was the first European to visit this city many centuries ago. He described Suzhou with its many canals, hundreds of bridges and beautiful gardens and temples as an impressive and majestic city. Suzhou used to be the Chinese silk capital. Although, in recent decades, it has grown into a major city with a population of several millions in recent decades, the ancient town has been very well preserved.
METROPOLIS | As the ultimate metropolis, Hong Kong is of course a unique experience! For example, it has one of the most impressive skylines in the world, whilst also offering many places of natural beauty. Since the metropolis, with a population of 7 million, has its own government and legislation, it also gives a very different image of China than the rest of the People’s Republic.
