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Bike Industry Hit by Fastener Anti-Dumping Duty
[2009-01-14 16:11:37]
The European Union is about to publish the implementation of a new anti-dumping duty. Last January 6th, the European Commission has sent a final proposal to levy a 85% anti-dumping duty on iron or steel 'fasteners' (screws and bolts) originating in China.
Although screws and bolts make up only a small part of the total costs of a complete bike, the impact of this new dumping duty can not be neglected. As a result, the European bike producers are confronted with a forced increase of the cost price. It is not yet clear if this new duty will affect the retail prices of bikes.
Bike Europe asked the bike industry dumping expert Brian Montgomery, Chairman of the European Bicycle Manufacturers' Association, for further details on this matter. He said: "Reading the various articles on this matter in which a diplomat is quoted, it says this dumping case passed the European Union Dumping Committee recently."
"There 14 member states voted in favour of the application of a dumping duty, 12 member states voted against it while there was one country that sustained from voting. Because of the close vote in the Dumping Commission it is hard to predict what the European Council will decide."
January 6, 2009 the European Commission has sent a proposal for 'Imposing a definitive anti-dumping duty on imports of certain iron or steel fasteners originating in the People's Republic of China' to the European Council. The European Council is the main decision-making body of the European Union.
Montgomery continues: "Because of that close vote the Council could decide to return the case to the Dumping Commission for reconsideration. It also depends on the political pressure being applied by China on this matter that is no small deal for China. The country exported in 2007 for euro 575 million in fasteners to Europe."
After a decision has been made by the European Council, it will be handed back to the European Commission who in this case will formally announce the application of the dumping duty. Normally about two days later it will be published in the Official Journal of the European Union and with that goes into force; also for running orders which have not yet been cleared by customs.
Although screws and bolts make up only a small part of the total costs of a complete bike, the impact of this new dumping duty can not be neglected. As a result, the European bike producers are confronted with a forced increase of the cost price. It is not yet clear if this new duty will affect the retail prices of bikes.
Bike Europe asked the bike industry dumping expert Brian Montgomery, Chairman of the European Bicycle Manufacturers' Association, for further details on this matter. He said: "Reading the various articles on this matter in which a diplomat is quoted, it says this dumping case passed the European Union Dumping Committee recently."
"There 14 member states voted in favour of the application of a dumping duty, 12 member states voted against it while there was one country that sustained from voting. Because of the close vote in the Dumping Commission it is hard to predict what the European Council will decide."
January 6, 2009 the European Commission has sent a proposal for 'Imposing a definitive anti-dumping duty on imports of certain iron or steel fasteners originating in the People's Republic of China' to the European Council. The European Council is the main decision-making body of the European Union.
Montgomery continues: "Because of that close vote the Council could decide to return the case to the Dumping Commission for reconsideration. It also depends on the political pressure being applied by China on this matter that is no small deal for China. The country exported in 2007 for euro 575 million in fasteners to Europe."
After a decision has been made by the European Council, it will be handed back to the European Commission who in this case will formally announce the application of the dumping duty. Normally about two days later it will be published in the Official Journal of the European Union and with that goes into force; also for running orders which have not yet been cleared by customs.
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