Proposal for a Council Regulation terminating the partial interim review of the anti-dumping measures applicable to imports of bicycles originating in the People’s Republic of China
Date: 2005-10-14
Institutions: European Commission
Subjects: China, anti-dumping legislation, anti-dumping measure, import, originating product, two-wheeled vehicle

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.10.2005 
COM(2005) 495 final 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of the anti-dumping measures applicable to 
imports of bicycles originating in the People’s Republic of China  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of 
22 December 1995 on protection against dumped imports from countries not members of the 
European Community, as last amended by Council Regulation (EC) No 461/2004 of 8 March 
2004 ("the basic Regulation") in the proceeding concerning imports of bicycles originating in 
the People’s Republic of China (PRC). 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and is the 
result  of  an  investigation  which  was  carried  out  in  line  with  the  substantive  and  procedural 
requirements laid out in the basic Regulation. 

•  Existing provisions in the area of the proposal 

By Regulation (EC) No 1095/2005 definitive anti-dumping duties against imports of bicycles 
originating in the PRC were amended. The current rate of duty applicable to the net, free-at-
Community-frontier price, before duty, is 48,5%. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested parties concerned by the proceeding have already had the possibility to defend their 
interests during the investigation, in line with the provisions of the basic Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The basic Regulation does not foresee a general impact assessment but contains an exhaustive 
list of conditions that have to be assessed. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

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On 19 February 2005, the Commission initiated a partial interim review limited in scope to 
the examination of dumping as far as the applicant (Giant China Co., Ltd.) is concerned. 

The Commission investigated all claims put forward by the applicant and the circumstances 
which could have changed significantly since the imposition of the original measures. 

The investigation revealed that the criteria to grant market economy status (‘MES’) were not 
met by the applicant. It was also established that the applicant did not fulfil the requirements 
to  have  an  individual  anti-dumping  duty  in  accordance  with  Article  9(5)  of  the  basic 
Regulation. On this basis it is considered that the circumstances with regard to dumping have 
not changed significantly compared to the situation prevailing during the investigation period 
used in the investigation which lead to the amendment of the original measures. Therefore, it 
is  concluded  that  the  partial  interim  review  of  the  anti-dumping  measures  applicable  to 
imports into the Community of bicycles originating in the PRC should be terminated without 
amending the measures in force. 

It  is  therefore  proposed  that  the  Council  adopt  the  attached  proposal  for  a  Regulation 
terminating the partial interim review, which should be published in the Official Journal. 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against  dumped 
imports from countries not members of the European Community, as last amended by Council 
Regulation (EC) No 461/2004 of 8 March 2004.  

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Community.  The  subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reasons. 

The form of action is described in the above-mentioned basic Regulation and leaves no scope 
for national decision. 

Indication of how financial and administrative burden falling upon the Community, national 
governments,  regional  and  local  authorities,  economic  operators  and  citizens  is  minimized 
and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate because the basic Regulation does not foresee alternative 
options. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of the anti-dumping measures applicable to 
imports of bicycles originating in the People’s Republic of China  

THE COUNCIL OF THE EUROPEAN UNION  

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection 
against  dumped  imports  from  countries  not  members  of  the  European  Community1  (‘basic 
Regulation’), and in particular Article 11(3) thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consulting  the  Advisory 
Committee, 

WHEREAS: 

A. PROCEDURE 

1. Measures in force 

On  9  September  1993,  the  Council,  by  Regulation  (EEC)  No  2474/932  imposed  a 
definitive  anti-dumping  duty  of  30,6%  on  imports  of  bicycles  originating  in  the 
People’s  Republic  of  China  (‘the  PRC’),  (‘the  original  measures’).  On  18  January 
1997,  following  an  anti-circumvention  investigation,  this  duty  was  extended  by 
Council Regulation (EC) No 71/973 to imports of certain bicycle parts originating in 
the PRC. 

On  14  July  2000,  following  an  expiry  review  pursuant  to  Article  11(2)  of  the  basic 
Regulation, the Council, by Regulation (EC) No 1524/20004, decided that the above-
mentioned measures should be maintained.  

On  14  July  2005,  following  an  interim  review  pursuant  to  Article  11(3)  of  the  basic 
Regulation  (‘the  previous  investigation’),  the  Council  by  Regulation  (EC)  No 
1095/20055,  amended  the  definitive  anti-dumping  duty  on  imports  of  bicycles 
originating  in  the  PRC.  The  amended  rate  of  the  duty  applicable  to  the  net,  free-at-

OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  461/2004,  OJ  L  77, 
13.3.2004, p.12. 
OJ L 228, 9.9.1993, p. 1. 
OJ L 16, 18.1.1997, p. 55. 
OJ L 175, 14.7.2000, p. 39. 
OJ L 183, 14.7.2005, p. 1.  

(1) 

(2) 

(3) 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Community-frontier price, before duty, is 48,5% for imports of bicycles originating in 
the PRC.  

2. Current investigation 

The Commission received a request lodged by Giant China Co., Ltd. (‘the applicant’) 
for a partial interim review pursuant to Article 11(3) of the basic Regulation. 

The request was based on the prima facie evidence, provided by the applicant, that the 
circumstances on the basis of which measures were established have changed and that 
these  changes  are  of  lasting  nature.  The  applicant  alleged,  inter  alia,  that  the 
circumstances  with  regard  to  market  economy  status  (‘MES’)  had  changed 
significantly. In particular, the applicant claimed that it now fulfilled the requirements 
to  be  granted  MES  pursuant  to  Article  2(7)(b)  of  the  basic  Regulation.  Furthermore, 
the applicant provided evidence showing that a comparison of normal value based on 
its  own  cost/domestic  prices  and  its  export  prices  to  the  enlarged  European  Union, 
would lead to a dumping margin significantly below the level of the current measure. 
Accordingly, the applicant alleged that the continued imposition of the measure at its 
current level was no longer necessary to offset dumping. 

The Commission, after consulting the Advisory Committee, initiated on 19 February 
2005  by  a  notice  published  in  the  Official  Journal  of  the  European  Union6  a  partial 
interim review limited in scope to the examination of whether the applicant operated 
under market economy conditions as defined in Article 2(7)(c) of the basic Regulation 
or alternatively whether the applicant fulfilled the requirements to have an individual 
duty in accordance with Article 9(5) of the basic Regulation.  

The Commission sent a questionnaire and a claim form for MES pursuant to Article 
2(7) of the basic Regulation to the applicant.  

The  investigation  covered  the  period  from  1  January  2004  to  31  December  2004 
(hereinafter referred to as ‘investigation period’ or ‘IP’). 

3. Parties concerned by the investigation 

The Commission officially advised the exporting producer, the representatives of the 
exporting  country  and  the  Community  producers  of  the  initiation  of  the  review. 
Interested parties were given the opportunity to make their views known in writing, to 
submit information and to provide supporting evidence and to request a hearing within 
the time limit set out in the notice of initiation. All interested parties who so requested 
and showed that there were reasons why they should be heard were granted a hearing. 

B. PRODUCT CONCERNED 

(10)  The  product  concerned  is  the  same  as  that  covered  by  the  original  and  previous 
investigations,  namely  bicycles  and  other  cycles  (including  delivery  tricycles),  not 
motorised, currently classifiable within CN codes 8712 00 10, 8712 00 30 and 8712 00 
80  (product  concerned).  No  evidence  was  found  suggesting  that  circumstances  with 

6 

OJ C 44, 19.2.2005, p. 24. 

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regard to the product concerned had significantly changed since the imposition of the 
measures.  

C. RESULT OF THE INVESTIGATION 

1. Market Economy Status (MES) 

(11) 

(12) 

In  the  framework  of  the  investigation  which  was  concluded  by  Council  Regulation 
1095/2005,  it  was  established  that  all  the  Chinese  exporting  producers  applying  for 
MES  did  not  meet  the  criteria  set  in  Article  2(7)(c)  of  the  basic  Regulation,  for  the 
reasons  set  out  in  recitals  (31)  to  (33)  of  the  said  Regulation.  The  applicant  was 
amongst the companies denied MES within the framework of that investigation. 

In  view  of  the  fact  that  findings  regarding  the  MES  claims  of  the  previous 
investigation  remain  valid  also  for  the  year  2004,  i.e.  the  IP  of  the  current 
investigation,  it  was  decided,  after  consulting  the  Advisory  Committee,  not  to  grant 
MES  to  the  applicant,  since  it  did  not  meet  the  criteria  set  in  Article  2(7)(c)  of  the 
basic Regulation.  

2. Individual treatment (IT) 

(13) 

In the framework of the previous investigation it was also concluded that the Chinese 
exporting producers having applied for IT did not meet the necessary requirements for 
individual treatment as set out in Article 9(5) of the basic Regulation for the reasons 
set out in recitals (45) to (47) of Regulation 1095/2005. 

(14)  The  applicant  was  amongst  the  companies  that  did  not  meet  the  necessary 
requirements  for  individual  treatment  in  the  framework  of  the  previous  investigation 
and  the  findings  of  that  investigation  remain  valid  also  for  the  IP  of  the  current 
investigation. In this respect, it was established, that all PRC exporting producers were 
subject to significant State control with regard to determining their export prices and 
quantities  of  the  product  concerned  as  explained  in  recital  (13)  above.  It  was, 
therefore, concluded that the applicant does not meet the requirements for individual 
treatment in the framework of the current investigation. 

3. Conclusion 

(15)  Given the above, neither MES nor IT could be granted to the applicant. On this basis, 
it  is  considered  that,  in  the  case  of  the  applicant,  the  circumstances  with  regard  to 
dumping  have  not  changed  significantly  compared  to  the  situation  prevailing  during 
the investigation period used in the investigation which led to the amended measures. 
Therefore, it is concluded that the partial interim review of the anti-dumping measures 
applicable  to  imports  into  the  Community  of  bicycles  originating  in  the  People’s 
Republic of China should be terminated without amending the measures in force. 

HAS ADOPTED THIS REGULATION: 

The partial interim review of the anti-dumping duty on imports of bicycles originating 

1. 
in the People’s Republic of China is hereby terminated. 

Article 1 

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2. 
The  definitive  anti-dumping  duty  imposed  by  Regulation  (EC)  No  1524/2000  of  10 
July  2000,  as  last  amended  by  Regulation  (EC)  No  1095/2005  of  12  July  2005,  shall  be 
maintained. 

Article 2 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President] 

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