Anti-Dumping Duty on e-bikes from China
Huge additional duties on imports of electric bikes (e-bikes) from China has massive effects on importers
Posted by
shippo.co.uk
op 2 Augustus, 2018
As of 18th July 2018 all e-bike categories (including pedelecs and tricycles) bought from China are subject to anti-dumping duties (ADD) of 83.6% unless your supplier has been allocated a reduced rate by the EU.
This new measure from the European Union has been put in place following complaints from the European Bicycle Manufacturers Association. They alleged that the import of e-bikes from China, at a greatly reduced cost to that considered the market rate for buying e-bikes within the EU, would have drastic effects on European manufacturers.
The Regulation
When buying e-bikes from China you”ll be hit by anti-dumping duties of up to 83.6% in addition to the standard import duty rating of 6%.
These are the tariff codes that are affected:
8711601000
8711609010
Products imported from some Chinese suppliers specified in the report from the EU have been allocated lower percentages of anti-dumping duty percentages. To check whether your supplier‘s products (or potential supplier‘s products) are on
the list to receive a reduced level of ADD you can check the linked regulation from the European Union (Scroll to the bottom, to the table in section 8. FINAL PROVISIONS, which along with the ANNEX, lists the suppliers).
Calculating The New Costs
As these costs are going to hit importer‘s bottom line pretty hard it‘s important to get the calculations right.
First you‘ll need to establish the cost of your goods, the cost for the shipping, the duty rate and the anti-dumping duty percentage. Let‘s assume you‘re buying your e-bikes for €2000, the shipping cost is €500, the UK duty rating is 6% and the anti-dumping rate is at the worst case scenario of 83.6%.
Here‘s how you‘d establish an estimate of your costs :
First find the UK duty cost:
UK Duty = UK Duty Rating x (Purchase Cost + Freight Cost)
UK Duty = 6% of (€2000 + €500)
UK Duty = €150
Next establish your anti-dumping duty (ADD) costs
ADD = Anti-Dumping Rating x (Purchase Cost + Freight Cost)
ADD = 83.6% of (€2000 + €500)
ADD = €2090
The final cost from HMRC (Her Majesty‘s Revenue and Customens) will be the import VAT:
Import VAT = 20% of (Purchase Cost + Freight Cost + UK Duty + Anti-Dumping Duty)
Import VAT = 20% of (€2000 + €500 + €150 + €2090)= Total €4740
Import VAT = €948
So your costs to buy and import these goods would be:
Purchase Cost : €2000
Freight Cost : €500
UK Duty : €150
Anti-Dumping Duty : €2090
Import VAT : €948
Total Cost : €5688
Importers Forced To Rethink
The cost to buy and import e-bikes from China has been pretty cheap over the past few years as no more than normal market forces put pressure on the cost to importers. Unfortunately, as the EU have decided, this cut price way of buying e-bikes could have a damming effect on EU manufacturers and they‘ve stepped in to stop it. Naturally, existing importers will be very disappointed as the cost to buy and import these products has doubled overnight. This will force them into rethinking their businesses and product offering.
This move by the EU to artificially increase the price to import a product, in a lot of peoples‘ opinion, will be seen as unfair. We‘ve spoken to importers who feel that preventing the requirement for EU manufacturers to either improve their offering to set themselves apart with a better quality product or to become more competitive themselves is counterproductive to businesses.
Whatever your view, this will have a major effect on anyone importing e-bikes from China.
Download the full EU document with all details on the e-bike dumping duties:
Official Journal European Union E Bike Dumping Case