Comments Off on TRA finds scrapping e-bike tariffs could save UK £51m per year
Source TRA – The Trade Remedies Authority (TRA) has published its initial findings recommending that anti-dumping and anti-subsidy measures on electric bicycles (e-bikes) from China should be revoked.
Following the transition reviews of the measures, the TRA found that keeping them in place would not be in the economic interest of the UK. Revoking the measures could:
benefit the UK economy by an average of £51m per year;
save consumers an average of £260 per e-bike; and
result in an average of 31,000 more e-bikes being bought per year in the UK.
Sales of e-bikes in the UK reached an estimated £325 million in 2023, compared with £96 million in 2018, and are expected to grow further in the coming years. Although it is likely that dumping and subsidisation of Chinese e-bikes would likely recur if the measures were no longer applied and that the UK production industry would suffer some injury, it was found that this injury did not outweigh the benefits to the UK economy or consumers if the measures were revoked.
TRA Chief Executive Oliver Griffiths said: “We always assess the impact of a trade remedy measure on the UK economy. Our interim conclusion is that the benefits to UK bicycle producers from continuing the current measures on e-bikes would be significantly outweighed by harm to the rest of the economy. We project that removing the measures could save consumers around £260 per e-bike and could benefit the UK economy by around £51 million annually.“
Alternative options
Under the UK’s revised trade remedies regime, if the TRA finds that a measure is not in the economic interest of the UK, it offers the Secretary of State for Business and Trade alternative options to revoking the measures.
These alternative options included only applying the measures to folding e-bikes as UK producers are more heavily concentrated in this market. A period of consultation is now open for on all of the options presented, after which the TRA will make its final recommendation to the Secretary of State.
As part of these reviews, for the first time, the TRA conducted a consumer survey as part of its assessment of how measures on these imports would affect the overall UK economy. The survey targeted e-bike customers and helped the TRA assess consumer sensitivity to e-bike prices.
Businesses that may be affected by the reviews (such as importers or exporters of the products or UK producers of similar products) can now comment on the initial findings via the TRA’s online case platform. They can also stay up to date with developments in each case, which will be posted on the TRA’s public files.
Following Article 21 of the Basic Regulation, the EU Commission also has a legal duty to determine whether it’s in the interest of the whole EU Community. “(…) whether the Community interest calls for intervention shall be based on an appreciation of all the various interests as a whole, including the interests of the domestic industry and users and consumers; (…) Measures, as determined on the basis of the dumping and the injury found, may not be applied where the authorities, on the basis of all the information submitted, can clearly conclude that it is not in the Community interest to apply such measures.“
LEVA-EU has already raised the issue of Community interest with the Commission, given the enormous difficulties and damage caused by trade defense measures to EU companies and the wider implications for sustainable mobility and public health.
If the Commission would be willing to test the Community interest in this year’s reviews, with the same thoroughness as TRA applied in the Economic Interest Test, there is a very good chance that the measures will also prove to cause much more damage to the EU than the benefits they bring to those few EU manufacturers who continue to defend the measures through thick and thin.
. If the Commission would be willing to test the Community interest in this year’s reviews, with the same thoroughness as TRA applied in the Economic Interest Test, there is a very good chance that the measures will also prove to cause much more damage to the EU than the benefits they bring to those few EU manufacturers who continue to defend the measures through thick and thin.
Comments Off on LEVA-EU calls on EU assemblers for support to end dumping duties on bicycle parts
The anti-dumping measures on conventional bicycles from China are to expire on the 30th August 2024. The measures are now in their 31st year. In 1997, they were extended to essential bicycle components based on alleged circumvention. Those measures are now in their 27th year.
There is no doubt that EBMA has already or will very soon request the Commission to review the measures against conventional bikes with a view to continuing them for another 5 years. To gather the necessary support for their request, they visit bike assemblers up and down the continent, inviting them to co-sign the request for the review. In doing so, they will undoubtedly explain how it is necessary to continue the measures to avoid Europe being flooded with cheap Chinese bicycles, which would undoubtedly destroy European assemblers. They will add that the measures will allow production to be brought back to Europe and will create jobs.
The other half of the story
However, that is only half the story. LEVA-EU hereby invites all European assemblers to think carefully before explicitly expressing their support for EBMA’s request. After all, the other half of the story goes like this.
The anti-dumping measures against bicycles from China were expanded in 1997 to include essential bicycle parts. Anyone who assembles in Europe must be able to prove that no more than 59% of the value of their components comes from China or that at least 25% value is added in the assembly. Anyone who can prove this will receive an exemption from the European Commission, meaning that 48.5% duties will not be levied on bicycle frames, forks, gears, sprockets, brakes, wheels and handlebars from China.
When ADD and ASD were levied on electric bicycles in 2018, this had a major impact on the duties on essential bicycle parts. European assemblers who use essential bicycle parts for electric bicycles could also receive an exemption if they proved that they used the parts for electric and not for regular bicycles. Please note that the Commission has not (yet) extended the rights to essential bicycle parts for the European assembly of electric bicycles. Many European assemblers make electric bicycles of which the value of the components amounts to more than 59%. In some cases, the electric bicycles even consist of 100% Chinese components. The European assembly sector cannot do without these Chinese components because the availability of parts outside China is too limited to meet full demand.
To circumvent or not to circumvent, that is the question.
The EBMA’s request to the Commission to extend the duties on bikes to essential bicycle components, came almost immediately after the imposition of the duties on bikes, alleging massive circumvention by China. In the case of electric bicycles however, EBMA misses no opportunity to assure European assemblers that they can use as many Chinese parts as they want. And so, companies are happily assembling in a way that, according to the law, can very easily give rise to anti-circumvention measures.
It is bizarre, to say the least, that while the European Commission responded to EBMA’s request without hesitation for conventional bicycles, the same Commission now simply ignores the situation, even though they could initiate an investigation at their own initiative. After all, why would the Chinese, accused of massive circumvention for conventional bikes, not resort to the same solution for electric bicycles.
LEVA-EU calls on all assemblers in the EU to treat the EBMA reassurances with utmost caution. In reality, not everyone who assembles in Europe appears to be safe, as EBMA pretends. While the Commission is not currently interested in possible circumvention, some assemblers have indeed been attacked, more specifically by customs services. They determine that insufficient value is added in the assembly, upon which they categorize the import of parts as the import of a complete electric bicycle to which anti-dumping and anti-circumvention duties apply. With this alleged circumvention, the company is committing a criminal offense for which not only arrears are charged, but also extremely heavy fines and possible prison sentences. It will take 5 to 10 years to reach a conclusion in the case. During that period, given the extremely serious threat, it is impossible for the company to grow even if it is ultimately acquitted.
Pushing businesses straight into the abyss
So, when you sign certain EBMA requests to the Commission, which are allegedly intended against China and for Europe, keep in mind that this will not necessarily protect you from customs actions that may push your business straight into the abyss. As mentioned, LEVA-EU has no position on the dumping measures against conventional bicycles. As for the extension of the measures to essential bicycle parts, we say loud and clear: in the interests of European assemblers, these measures must be terminated as quickly as possible. No European company benefits from a legal restriction on the use of Chinese parts, nor from a very complex and expensive administration to enforce that restriction.
LEVA-EU strongly hopes that European assemblers will consider this call and will no longer support EBMA requests that result in the continuation of the additional measures on essential bicycle parts from China.
There is another important reason to terminate the duties on essential bicycle parts. That legislation makes it virtually impossible for new electric bicycle assemblers to enter the market. To obtain a Commission exemption or end-use approval, they must first pay 48.5% anti-dumping duties on essential bicycle parts from China. This is completely unacceptable because legally there are no anti-dumping duties on essential bicycle parts for electric bicycles.
Which start-up can afford to include an additional cost of 48.5%, that serves no purpose and even has no legal basis, in their business plan? And to get rid of that 48.5%, which is not reimbursed in the case of end-use authorizations, they must provide significant guarantees!
This makes EBMA’s claim that anti-dumping measures against electric bicycles from China are necessary to reshore production and to create jobs an outright lie. You may think that it is a good thing for your company if it is difficult for new companies to enter the market. Restriction of competition inevitably results in a reduced, thus less attractive offer and higher prices that ultimately leads consumers to quit. That response will eventually affect all remaining companies, including yours.
LEVA-EU acknowledges that this is a complex matter and remain therefore at the disposal of anyone seeking further clarification: annick@leva-eu.com, tel. +32 475 500 588.
Comments Off on Join the Ad Hoc Group in Opposing Extension Measures on E-Bikes from China
Is 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.
Comments Off on LEVA-EU Establishes Ad Hoc Group for EU Companies to Counter EU Commission’s Review of Measures against E-Cycles from China
Last 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.
Comments Off on LEVA-EU Gears Up to Counter European Commission’s Review of Trade Defence Measures against Electric Cycles from China
In 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.
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 Meeting on the devastating anti-dumping measures against e-bikes
The anti-dumping measures against electric bicycles from China do not create the level playing field, that EBMA and the European Commission claim to aspire to. The measures prove to rather create a minefield, where many bomb craters threaten to appear soon.
On 2 May 2023, the European Commission has given notice that, unless a review is initiated, the anti-dumping measures against e-bike imports from China will expire on 19 January 2024. LEVA-EU considers it virtually impossible that EBMA will forego this opportunity for another five years of dumping measures. LEVA-EU fears that this will be the death sentence for many European companies. That is why the professional association is convening a meeting on 16 November in Brussels for all companies under attack.
Union producers had time until 19 October to submit a written request for a review. This request had to contain sufficient evidence that the expiry of the measures would be likely to result in a continuation or recurrence of dumping and injury. Should the Commission decide to review the measures, importers, exporters, representatives of the exporting country and Union producers will then have an opportunity to respond to the review request.
Today, there is no information (yet) as to whether EBMA has requested a review. Neither EBMA nor the Commission have communicated about this so far. The chance EBMA has not requested a review seems to be non-existent.
A possible revision of the dumping measures is the direct reason for LEVA-EU to convene a meeting on Thursday, 16 November in Brussels. 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 is currently 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 and to a 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 that LEVA-EU knows have been attacked will be 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.
Import statistics seem to give little reason to further restrict imports of electric bikes from China by extending the anti-dumping measures for another 5 years. Import numbers have decimated and, according to Bike Europe, in general the entry-level and mid-range market is doing particularly poorly. Between January and July 2023, imports from China shrank by more than a quarter to just 88,000 units. So, one could conclude that the measures are having an effect and could be lifted.
However, it is particularly unlikely that EBMA will stop here. There are currently so many actions against European companies accused of circumventing anti-dumping measures that EBMA may have little choice but to argue that systematic circumvention is taking place. Continuation of the measures would appear to be the logical way forward in the fight against that alleged circumvention.
Moreover, over the past 4 years and 9 months, EBMA has very systematically developed a discourse on bringing production back to Europe. In the recently published European Declaration on Cycling, the European Commission lists as an action point: “creating conditions to increase the European production of a broad range of bicycles (including e-bikes, speed pedelecs, and bikes for people with disabilities) and their components, including access to materials, equipment and maintenance of a global level playing field through existing EU trade defence instruments;” Herewith, the Commission itself is, as it were, already announcing the extension of the measures even before the investigation has actually taken place.
In February this year, the European Parliament had called for that Declaration in a resolution, which also states: “(The Parliament) calls on the Commission and the Member States to support the production of ‘Made in Europe’ bicycles and components, thereby stimulating the competitiveness of EU industry, by bridging the investment gap, maintaining a global level playing field and stimulating supply chain reshoring and security, and by encouraging high-quality jobs, creating cycling clusters and enhancing industry-related vocational training;”
The European Parliament even jubilantly announced that the current workforce in the “EU cycling ecosystem” could grow from 1 million to 2 million by 2030. Although dumping measures are not legally meant to create jobs, EBMA will obviously not fail to argue that dumping measures are still needed for at least another five years to “bring back” production here and to get people here to work. The fact that things are not quite flourishing for among others the Accell Group, one of EBMA’s major/leading members, may well only strengthen the argument for protecting European industry from the so-called great Chinese danger.
Reality, however, is somewhat different. In EBMA’s story of threats from the Far East, protection of union producers, reshoring production, job creation, … an essential element is missing. While EBMA works so hard to protect and to make some European companies prosper, the survival of innumerable other European companies is under serious threat. They are under attack and being accused of circumvention, fraud, even crimes that can lead to prison sentences. If all the fines and penalties hanging over their heads are to be collected and enforced, these companies will perish. The jobs they have created will disappear. They will no longer pay taxes and social security. Their European suppliers and distributors will suffer as well. Overall supply will shrink, prices will go up and electric bikes will become less attractive to the European citizen.
The past 4 years and 9 months have led to anything but a level playing field. The production of ‘Made in Europe’ bicycles and components is anything but at a level that could meet demand. The very, very worst thing is that a company in Europe cannot legally start the production of electric bicycles and/or components without first having to pay dumping duties for months, if not years, and then being hit with unfair guarantees. As long as the European Commission and Parliament continue to ignore this deplorable disorder, any reference from the Commission or Parliament to a level playing field sounds particularly false. Both Commission and Parliament speak with such ease about a level playing field and about 1 million jobs that will double in 6 years. Who will measure the playing field during that time to check whether it is level? Who will count the number of jobs in the “EU Cycling ecosystem” in that period? And who will be held accountable if the goals are not achieved?
In a 2020-report on Trade Defence Instruments (TDI), the European Court of Auditors (ECA) found that the TDI had “a clearly positive impact for the e-bike sector. Without the measures, production in Europe would probably have ceased. Furthermore, TDI measures on normal bikes and bike parts have been vital in enabling EU bike producers to invest in and develop their e-bike production.” This ECA-conclusion was not based on any research but “on publicly available information and interviews with stakeholders.” With that the ECA made an explicit reference to an EBMA-study, not exactly an objective source. LEVA-EU herewith invites the ECA to do its homework again, this time based on proper research instead of interviews with biased stakeholders. LEVA-EU is confident that the ECA will no longer be able to find that the TDI had a clearly positive impact for the e-bike sector. As for the Commission, LEVA-EU hopes that, in case of a review, they will conduct a very thorough investigation and they will think very carefully about a new five-year term.
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 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.
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