India Seeks Anti-dumping Duty on Chinese Bicycle Imports

On Aug. 29, 2011, The bicycle industry has demanded imposition of anti-dumping duty on imports of bicycle items from China, saying growing shipments from that country has hit the local production.

"We have urged the Union Ministry of Commerce to take effective steps like imposing anti-dumping duty on import of bicycle and parts from China as it has hit the local bicycle manufacturing hard," Federation of Punjab Small Industries Associations, President, Badish K Jindal said on Aug. 30, 2011.

Jindal informed that after showing data relating to export and import of bicycles, the association has also got assurance from MSME Secretary to set up a committee in Punjab for preparing a case of imposition of anti-dumping duty on bicycle parts.

Pointing out derailing of bicycle exports and sudden shoot up in import, Jindal said export of bicycle and its parts have shrunk to Rs 650 crore in 2010-11 against shipments of Rs 1,200 crore in 2008-09.

Similarly, import of bicycle from China has shot up from Rs 300 crore in 2008-09 to Rs 1,600 crore till last fiscal, severely impacting the domestic production of bicycle items.

"As per sensitive items data of May 2011 of Ministry of Commerce, the import of bicycle parts has increased considerably," he said.

According to data, bicycle items, including wheels, import gone up to 1572 per cent, chain to 81.5 per cent, hub, 569 per cent among major items sourced from China.

He informed that Europe has already levied 48.5 per cent import duty on bicycles and parts from China while Canada has also imposed duty on particular items from China.

As a result of unchecked import of bicycle parts, manufacturers of kids bikes, spoke, steel balls, hub cone, free wheel, air pump etc have suffered maximum damage to their business, he said.

There are around 5,000 bicycle makers in Ludhiana with established brands like Hero Cycles, Avon, Hi bird, among many others.