WRITTEN QUESTION E-2843/97 by Klaus-Heiner Lehne (PPE) to the Commission (11 September 1997)

Subject: Anti-dumping Regulation as applicable to bicycle parts from China

Council Regulation (EC) No 71/97 ((OJ L 16, 18.1.1997, p. 55. )) and Commission Regulation (EC) No 88/97 ((OJ L 17, 21.1.1997, p. 17. )) extended the original duty on bicycles from the People's Republic of China to imports of bicycle parts. Although the Commission's investigation concerned only imports of complete, pre-assembled bicycle parts (sets), the circumvention duty was also levied on individual bicycle parts. As a result of that, European importers of bicycle parts from the People's Republic of China are covered by the circumvention regulation, even though their operations do not constitute circumvention and were not part of the Commission's investigation.

While the Commission provides for an exemption of assembly operations from the circumvention duty, importers of bicycle parts are referred to the national customs authorities' end-use procedure. In practice, the end-use procedure has proved to be totally unsuitable in that it restricts the free movement of goods in the Community and results in the European supply industry losing substantial market shares.

While anti-dumping measures are supposed to protect European firms, the present measures have the opposite effect, i.e. they are ruining small and medium-sized suppliers in Europe.

1. When will the Commission amend the relevant Regulations so that they only cover those firms whose operations do constitute circumvention?

2. What is the Commission's view of the situation of European firms which import bicycle parts from the People's Republic of China and have already lost substantial market shares?

Answer given by Sir Leon Brittan on behalf of the Commission (28 October 1997)

Pursuant to Article 1 of Regulation (EC) No 703/96 ((OJ L 98, 19.4.1996. )), the investigation into alleged circumvention which resulted in the adoption of Regulations (EC) Nos 71/97 ((OJ L 16, 18.1.1997. )) and 88/97 ((OJ L 17, 21. 1.1997. )) concerned bicycle parts falling within codes CN 8717 91 10 to 8714 99 90 and was not confined to assemblies. This procedure was open not only to assemblers but also (and indeed chiefly) to the importers concerned, only one of whom took an active part in the investigation within the time limit set by Regulation (EC) No 703/96. When it was established that the anti-dumping duty on imports of bicycles originating in the People's Republic of China was being circumvented by imports of bicycle parts, the Community brought in Regulation (EC) No 71/97 to extend it to the main parts of bicycles with the same origin. Regulation (EC) No 88/97 put in place extensive exemptions for imports which did not constitute circumvention. As circumvention, according to Article 13 of [Regulation (EC) No 384/96 ((OJ L 56, 6.3.1996. ))] can only be established in the case of undertakings which assemble or manufacture bicycles, any exemption from the extended anti-dumping duty can be granted to manufacturers only for imports intended for their own use. An exemption can be granted to other operators only when the bicycle parts are used by assemblers who do not circumvent the anti-dumping duty. Surveillance for this purpose is carried out under the (highly effective) end-use customs procedure. By this means goods can be kept under surveillance until they are released for free circulation and, even in this case, collection of the anti-dumping duty can be waived. Movement between Member States takes place on the T5 control copy.

Because this is the first procedure under which an anti-dumping duty has been imposed under Article 13 of the Basic Regulation on imports into the Community of parts of the same goods, with the exemption system described, it is of particular benefit to analyse and evaluate the aim and effectiveness of this measure. The importers and subcontractors concerned have already been able to inform the Commission of their comments and it would also like to hear the views of other interested parties. The aim is to be able to evaluate statistics and take into account the Member States' experience.

1. A decision on the need, if any, to amend Regulations (EC) No 71/97 and 88/97 can only be reached when that analysis is concluded.

2. Since the analysis is not yet complete it is not possible at this stage to take a view on the situation of importers of bicycle parts (market shares and their possible losses and their causes).