E-bike is selling well. The number of imports from China has increased dramatically.
According to data from the first three quarters of Eurostat 2017, the number of E-bike electric bicycles imported from China has soared. From January to September 2017, the number of imports to the EU market exceeded 550,000 – 551,222. Become the biggest source. As of the third quarter of 2017, the number of E-bikes exported from China to the EU has exceeded 27% compared to the full year of 2016. Sources of other EU import E-bikes include Taiwan, Vietnam, Switzerland, and Thailand.
E-bike sales in various EU countries have performed strongly. For example, Belgium’s E-bike sales are far ahead of other models, and its market share accounts for 45%. However, the hot sale of E-bike has put tremendous pressure on other types of bicycles. This is also reflected in the import data of the EU. The sales of high-priced leisure bicycles, road bikes and mountain bikes have fallen sharply.
In addition to anti-dumping, the EU will also conduct countervailing investigations.
The number of E-bikes exported by China to the EU is huge, but companies are now facing high EU taxation and various types of investigations. The European Commission announced in the official journal of the European Union “Notice on the anti-dumping procedure for electric bicycles imported from China”. In addition to the previously announced anti-dumping investigations, the countervailing investigations were also carried out in parallel. Both investigations will end at the same time in January 2019. However, according to the statutory schedule of the European Commission’s anti-dumping investigation, the temporary anti-dumping duties will be imposed according to the investigation findings within 9 months, which means that the E-bike anti-dumping tax measures may be on the road in July 2018.
Bicycle manufacturing is moving to Southeast Asia: Cambodia is eye-catching
What is worth studying in the EU’s import data is the difference in imports. Imports of conventional bicycles (non-E-bikes) in the EU have fallen by nearly 5%, and the number of high-quality, high-priced bicycles imported from Taiwan has dropped significantly (represented by products from well-known brands such as Giant, Merida, Ideal Ai, and Axman). ). Data show that in the first three quarters of 2017, imports from Taiwan to the EU fell by 23%, and Cambodia also surpassed Taiwan to become the largest supplier of conventional bicycles in the European Union. To this end, there has been a voice in the industry that “bicycle manufacturing is moving to Southeast Asia”, especially those that benefit from the EU’s Generalized Tariff System (GSP). Cambodia is the main beneficiary of the GSP, and the data imported by the Eurostat from the country in the first nine months of 2017 showed a very stable status compared to the same period in 2016. The number of imports from Cambodia exceeded 1 million, down only 0.5%. It is also worth noting that imports from Bangladesh are in full compliance with the development of Cambodia, with a total of approximately 535,000 conventional bicycles, which fell by less than 1% in the first nine months of 2017 and remained stable. In the past, Bangladesh ranked third among the top five bicycle importers in the EU, but it was surpassed by the Philippines in the first nine months of 2017. The EU’s imports from the country increased significantly, from 485,000 to 603,000, an increase of 24%.
The fifth largest bicycle region in the European Union is ranked in mainland China. Although the bicycles imported from mainland China are subject to an anti-dumping duty of 48.5% by the European Union, the import volume has increased by 39% to 446,000.
Regarding the manufacturing transfer, we have also noticed from the actions of some manufacturers. The Philippines was eligible for the GSP at the end of 2014, and at the same time, Shimano also opened a bicycle parts manufacturing facility in Luzon, Philippines. The plant covers an area of 106,000 square meters and requires an investment of 25 million euros. In addition, Taiwanese trader Jumbo Brico Associated Co. Ltd. has also established two factories, Procycle Industrial Inc, in the Philippines. Another major manufacturer is Collie Cycle Inc., a subsidiary of Taiwanese trader Dumar International. However, Collie Cycle was convicted in June 2015 for circumventing anti-dumping regulations on Chinese imported bicycles. Therefore, goods currently exported to EU member states are subject to a 48.5% anti-dumping duty. Some manufacturers that have set up factories in mainland China have also set their sights on Southeast Asia. Brands such as SR SUNTOUR, Aideshi and Kailu Shi have corresponding factories in Southeast Asia.
GSP tax-free import qualification
This GSP system is an import tax concession for countries that are economically backward (especially those that do not have an export industry). Cambodia, the Philippines and Bangladesh are all major countries for exporting bicycles to Europe. These three countries even enjoy the most import concessions because they are eligible for GSP treatment. This means that the EU does not impose import duties when importing conventional bicycles from Cambodia, the Philippines and Bangladesh. Bicycles imported by these three countries are not subject to the EU’s 14% import tariffs and are imported from 28 member states and are therefore tax-free.