There are a few of the suppliers we work with that are bringing manufacturing back to the EU. The costs are higher, but for the dealers / distributors its much better. Lead times are less, quantities are less, so risk is less. Less clearance stock etc etc.

 

Only problem is we might be outside the EU soon, so we might have to deal with the tariffs anyway

Has anyone heard anything about the anti dumping tariff on electric bikes coming in from China? I heard today that a 48.5% ADT may be applied as early as June next year.

 

UPDATE

 

Two of our suppliers have confirmed that they have had official letters from the Chinese Government warning them of a very strong possibility that anti dumping tariffs will hit electric bikes bought from China after June of next year.

 

Can you explain what this is?

Can you explain what this is?

 

What is an 'Anti-Dumping Duty'

An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market. To protect local businesses and markets, many countries impose stiff duties on products they believe are being dumped in their national market.

 

 

Read more: Anti-Dumping Duty Definition | Investopedia http://www.investopedia.com/terms/a/anti-dumping-duty.asp#ixzz4R2YkcVKd

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I have written to the BAGB and have had a response. They don't know of any such danger.

There are a few of the suppliers we work with that are bringing manufacturing back to the EU. The costs are higher, but for the dealers / distributors its much better. Lead times are less, quantities are less, so risk is less. Less clearance stock etc etc.

 

Only problem is we might be outside the EU soon, so we might have to deal with the tariffs anyway

 

Are you talking about bicycle parts Col?

I was thinking about buying a BBSHD unit from EM3ev in China but after reading this i`m having doubts about it.

If they put 48.5% Anti dumping duty on electric bikes from China to the EU (including the UK) that will pretty much kill off the UK electric bike industry.

Unless Brexit ends up that we are tariff free from China into the UK,but tariffs applied UK into EU.Assuming that the tariffs China to EU continue after Brexit,it could make the UK the smuggling capital of the world.

If we stay in the EU,I suppose we could start our own e-bike manufacturing industry,but we haven't proven much good at that so far. The other possibility is if we do a deal with the EU post Brexit like the Canada deal we could avoid the ADT by making more than 40% of the bike in the UK,thus complying with the country of origin rules. But it would be difficult to get up to 40% UK,when the obvious motors/frames/brakes/gears would all be Chinese imports.

With all the EN15194 difficulties and the small size of the U.K. E-bike market I think most traders will give up.

KudosDave

ADT on electric bikes? that's nonsense.

There is no justification for impposing ADT on electric bikes where most of the value of the bike can be found in the electrical parts (motors, controllers, LCD, cabling) which have zero duty and Lithium batteries, 5% duty, mechanical bike, 48.5%. When averaging out duty on all the components, the EU arrived at 6% import duty for the whole electric bike.

It has occurred to me that a simple motor and tiny battery fitted to a good quality normal Chinese bike may be a cost effective way of avoiding the current ADT on normal bikes.

Say a £1000 Carbon Frame,top gears,top spec bike would save £420 per bike if imported as an e-bike.

Cannot be bothered myself, but if any importer did that, the EU would be tempted to make all bikes 48.5 % duty.

It would be a big boost to the EU bike assembling industry,especially if using Bosch motors/batteries which would make it easier to achieve the 60% origin rule.

I wouldn't be surprised if the EU hit the imported e-bikes with a 48.5 % ADT,it would mean that the German and Dutch e-bike assemblers would have a virtual monopoly,the death of the £1000 e-bike,we would all have to get used to £2000 e-bikes. The sale of normal bikes is going through a bad patch and e-bikes are becoming more important for German bike assemblers revenue.

It would be a good way for the EU to punish us for Brexit and give us a taster of what we can expect post Brexit.

KudosDave

the 45.8% anti dumping duty against Chinese bicycles is supposed to end in 2018 but the EU may put in place a system to extend it a bit longer. Not about e-bikes though.

 

http://www.bike-eu.com/laws-regulations/nieuws/2016/11/eu-to-change-anti-dumping-rules-new-term-for-china-made-bikes-10128140

I was thinking about buying a BBSHD unit from EM3ev in China but after reading this i`m having doubts about it.

I know a guy who ordered a complete kit recently. He didn't have to pay any duty. Go for it!

 

Another thing. BMSBattery have a new shipping system. I think it involves their European warehouse. I recently ordered a rack and battery plus some other stuff, and they gave me the option to pay $30 up front to get the stuff duty free. I took that option.

Nearly all bicycles originate in China - even the high-end branded ones. There's no anti-dumping tax from Taiwan, so these Chinese companies have facilities there, and the bikes are shipped from there to avoid the ADT.

 

As I said before, China isn't the only cheap source of electric bikes.

 

http://www.evfuture.com/products/electric_bicycles/

 

£253 for this one:

http://www.evfuture.com/products/view/?product_id=60

Sorry to be pedantic but the maths aren't quite correct.

 

Import duty is 6% and VAT is 20%. That doesn't make 26%. It makes 27.2% as the VAT is added on top of the duty. Just like it is on fuel.

Are you talking about bicycle parts Col?

 

Yes, I know of a couple of european factories that now supply OEM components to big bike brands that previously bought from FarEast.

I know a guy who ordered a complete kit recently. He didn't have to pay any duty. Go for it!

.

 

 

Bought a BBSHD from AliExpress in the 11-11 sale for £434 and when it came the UPS guy said I had to pay the charges straight away.

I expected about £100 which would still make it £200 cheaper than an ebay one with the DCP 14 lcd.

Surprised when he asked for £35.52,that was £24.52 import vat and £11 for them.

When I unpacked the invoice it turned out that the nice chinese chappy had put the value down as $100.

Em3ev is in HongKong. Stuff from there still seems to slip through the net.

Em3ev is in HongKong. Stuff from there still seems to slip through the net.

My motor came from Hong Kong too via Japan,Kentucky,Alaksa and Germany.

ADT on electric bikes? that's nonsense.

There is no justification for impposing ADT on electric bikes where most of the value of the bike can be found in the electrical parts (motors, controllers, LCD, cabling) which have zero duty and Lithium batteries, 5% duty, mechanical bike, 48.5%. When averaging out duty on all the components, the EU arrived at 6% import duty for the whole electric bike.

 

Hi Hatti,

 

I would love to think you were correct. However on Friday FreeGo confirmed that they had the same news from their manufacturer. I received this from our partners over the weekend after sending the response from the BA.

 

Hi David

Thanks for the info.

Trust me, it will happen in 6-7 month even if I don't want to believe that.

I have confirmed with Lawyer, they told me we will have less then 10% chance it will not happen.

 

I still think it may be a storm in a tea cup, however the Chinese factories I know are all saying the same thing. I am not being alarmist, just letting others share the information I am getting. We all need to work as a team.

 

All the best, David

The latest, this morning is it could be a lower ADT, around 30%. But still on all bikes delivered into the EU after the end of June 2017.

Hi David,

 

Hatti does not post much, Tony does the posting here from now on.

Thanks Tony, Just spoken to another big manufacturer, they are moving production for Europe to Bulgaria. They already have a plant and this news is pushing them to speed up the process of moving ebike production. Interestingly the prices will about remain the same as FOB Shenzhen.

 

All the best, David

...another big manufacturer, they are moving production for Europe to Bulgaria.... They already have a plant... the prices will about remain the same as FOB Shenzhen.

Does this really help the UK e-bike resellers when we're (supposed to be) leaving the EU at some point shortly... and that'll likely introduce a whole new raft of European import/export tariffs (albeit hopefully lower than these protectionist Chicken Taxes)? It may be after Brexit that better/lower/non-protectionist tariffs can be negotiated direct with China for both e-bikes and normal bikes imported into the UK... Isn't one of the benefits of leaving the EU the ability to negotiate trade direct with China where the EU has singularly failed? Isn't it mostly the Germans and Dutch keen on these e-bike protectionist duties rather than the UK... why should we be penalised? Just throwing these thoughts out there...

Hi CycleBuddy

 

I am sure you are correct, this whole situation has reared its ugly head due to pressure from European manufacturers who no doubt argue if Pedelecs are treated as motor less cycles under law, why should they not fall under the same tariffs.

 

I am afraid if this does happen by August as suggested Brexit will not help.

 

I will continue to post any news have, it would be useful to hear from other manufacturers if they hear anything along the same lines.

 

Regards, David

We have not heard any news from our suppliers regarding change of tariff.

China is expecting to be recognized as a market economy from 2017 by WTO, it will be a lot more difficult to impose anti dumping on Chinese imports from now on.

The 48.5% anti-dumping on bicycles will be reviewed in 2018. We'll know a lot more at the end of 2017, we expect it will be phased out.

Hi Tony,

 

Let's keep our fingers crossed.

 

Would you or Hatti like to see the official document in Mandarin, sent by our main partner in China.

 

If you PM me with your email address, I would be happy to share in confidence.

 

All the best, David