Proposal for a COUNCIL IMPLEMENTING REGULATION imposing a definitive anti-dumping duty on imports of bicycles originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Council Regulation (EC) No 1225/2009
Date: 2011-09-07
Institutions: European Commission
Subjects: China, anti-dumping measure, import (EU), originating product, two-wheeled vehicle

EUROPEAN COMMISSION 

Brussels, 7.9.2011 
COM(2011) 544 final 

2011/0234 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING REGULATION 

imposing a definitive anti-dumping duty on imports of bicycles originating in the 
People's Republic of China following an expiry review pursuant to Article 11(2) of 
Council Regulation (EC) No 1225/2009 

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EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  1225/2009  of 
30 November 2009 on protection against dumped imports from countries not members 
of the European Community (‘the basic Regulation’), in the expiry review proceeding 
concerning the anti-dumping duty in force in respect of 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 (EEC) no 2474/931 the Council imposed a definitive anti-dumping duty 
of  30,6%  on  imports  of  bicycles  originating  in  the  People's  Republic  of  China. 
Following  an  anti-circumvention  investigation  pursuant  to  Article  13  of  the  basic 
Regulation, this duty was extended by Council Regulation (EC) No 71/972 to imports 
of certain bicycles parts originating in the People's Republic of China (PRC). 

Following  an  expiry  review  pursuant  to  Article  11  (2)  of  the  basic  Regulation,  the 
Council,  by  Regulation  (EC)  No  1524/20003,  decided  that  the  above  mentioned 
measures should be maintained. 

Following  an  interim  review  pursuant  to  Article  11  (3)  of  the  basic  Regulation,  the 
Council,  by  Regulation  (EC)  No  1095/20054,  decided  to  increase  the  anti-dumping 
duty in force to 48,5%. 

Consistency with other policies and objectives of the Union 

Not applicable. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

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

1 
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3 
4 

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 

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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 provide for a general impact assessment but contains an 
exhaustive list of conditions that have to be assessed. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

On  13  July  2010,  the  Commission  announced  by  a  notice,  published  in  the  Official 
Journal of the European Union, the initiation of an expiry review of the anti-dumping 
measures applicable to imports of bicycles originating in the PRC. 

The  review  was  initiated  following  a  substantiated  request  lodged  by  the  European 
Bicycles  Manufacturers  Association  (EBMA)  on  behalf  of  Union  producers 
representing a major proportion, in this case more than 25% of the Union production of 
bicycles.  

The review investigation found continuing dumping of the product concerned, which, 
should  anti-dumping  measures  be  lifted,  would  result  in  the  continuation  of  injury  to 
the Union industry. It was further established that the continuation of measures was not 
against the interest of the Union.  

Therefore,  it  is  suggested  that  the  Council  adopts  the  attached  proposal  for  a 
Regulation in order to prolong the existing measures, which should be published in the 
Official Journal of the European Union by 12 October 2011 at the latest.  

Legal basis 

Council  Regulation  (EC)  No  1225/2009  of  30  November  2009  on  protection  against 
dumped imports from countries not members of the European Community. 

Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  European  Union.  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 

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scope for national decision. 

Indication of how financial and administrative burden falling upon the Union, 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 for the following reason: 

The basic Regulation does not provide for alternative options. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2011/0234 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING REGULATION 

imposing a definitive anti-dumping duty on imports of bicycles originating in the 
People's Republic of China following an expiry review pursuant to Article 11(2) of 
Council Regulation (EC) No 1225/2009 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection 
against dumped imports from countries not members of the European Community5 (‘the basic 
Regulation’), and in particular Articles 9(4) and 11 paragraphs (2), (5) and (6) thereof, 

Having  regard  to  the  proposal  submitted  by  the  European  Commission  ('Commission')  after 
consulting the Advisory Committee, 

Whereas: 

1. 

(1) 

A. 

PROCEDURE 

MEASURES IN FORCE 

By Regulation (EEC) no 2474/936 the Council imposed a definitive anti-dumping duty 
of  30,6%  on  imports  of  bicycles  originating  in  the  People's  Republic  of  China  (the 
"original  measures").  Following  an  anti-circumvention  investigation  in  accordance 
with Article 13 of the basic Regulation, this duty was extended by Council Regulation 
(EC)  No  71/977  to  imports  of  certain  bicycles  parts  originating  in  the  People's 
Republic  of  China  ("PRC").  In  addition,  it  was  decided  to  create  an  'exemption 
scheme'  on  the  basis  of  Article  13(2)  of  the  basic  Regulation.  The  details  of  the 
scheme  were  provided  for  in  Commission  Regulation  (EC)  No  88/978.  In  order  to 
receive an exemption from the extended duty, bicycle producers in the Union have to 
respect the conditions of Article 13.2 of the basic Regulation, namely to respect a ratio 
of  less  than  60%  of  Chinese  bicycle  parts  in  their  operation  or  the  addition  of  more 
than  25%  value  to  all  parts  brought  into  the  operation.  To  date,  more  than  250 
exemptions have been granted. 

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8 

OJ L 343, 22.12.2009, p. 51. 
OJ L 228, 9.9.1993, p. 1 
OJ L 16, 18.1.1997, p. 55 
OJ L 17, 21.2.1997, p. 17 

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(2) 

(3) 

2. 

(4) 

(5) 

(6) 

3. 

(7) 

(8) 

(9) 

Following  an  expiry  review  pursuant  to  Article  11(2)  of  the  basic  Regulation,  the 
Council,  by  Regulation  (EC)  No  1524/20009,  decided  that  the  above  mentioned 
measures should be maintained. 

Following  an  interim  review  pursuant  to  Article  11(3)  of  the  basic  Regulation  (the 
"previous investigation"), the Council, by Regulation (EC) No 1095/200510, decided to 
increase the anti-dumping duty in force to 48,5%.  

PRESENT INVESTIGATION  

On  13  July  2010,  the  Commission  announced  by  a  notice  (‘Notice  of  initiation’)11, 
published  in  the  Official  Journal  of  the  European  Union,  the  initiation  of  an  expiry 
review of the anti-dumping measures applicable to imports of bicycles originating in 
the PRC. 

The  review  was  initiated  following  a  substantiated  request  lodged  by  the  European 
Bicycles  Manufacturers  Association  (EBMA,  the  "applicant")  on  behalf  of  Union 
producers representing a major proportion, in this case more than 25%, of the Union 
production of bicycles. 

The request was based on the grounds that the expiry of the measures would be likely 
to result in a continuation of dumping and recurrence of injury to the Union industry. 

PARTIES CONCERNED BY THE INVESTIGATION 

The  Commission  officially  advised  the  applicant,  the  Union  producers  mentioned  in 
the request, any other known Union producers, the exporting producers, importers as 
well as the associations known to be concerned and the authorities of the PRC, of the 
initiation of the investigation. 

Interested parties were given an opportunity to make their views known in writing and 
to request a hearing within the time-limits set in the notice of initiation. 

A number of Union producers represented by the applicant, other cooperating Union 
producers,  exporting  producers,  importers,  and  user  associations  made  their  views 
known.  

(10)  All interested parties who so requested and showed that there were particular reasons 

why they should be heard were granted a hearing. 

4. 

SAMPLING 

(11) 

In  view  of  the  large  number  of  exporting  producers,  Union  producers  and  importers 
involved  in  the  investigation,  sampling  was  envisaged  in  the  notice  of  initiation,  in 
accordance with Article 17 of the basic Regulation. 

(12) 

In  order  to  enable  the  Commission  to  decide  whether  sampling  would  be  necessary 
and, if so, to select a sample, exporting producers and representatives acting on their 

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11 

OJ L 175, 14.7.2000, p. 39 
OJ L 183, 14.7.2005, p. 1 
OJ C 188, 13.7.2010, p. 5 

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behalf, Union producers and importers were requested to make themselves known and 
to  provide  information  as  specified  in  the  notice  of  initiation.  The  Commission  also 
contacted  known  associations  of  exporting  producers  and  the  relevant  authorities  of 
the PRC. These parties raised no objections to the use of sampling. 

(13) 

In total, 7 exporters/producers, around 100 Union producers and 4 importers provided 
the requested information within the time-limits set.  

(14)  Given  that  only  seven  Chinese  producers  replied  to  the  sampling  information 
requested  in  the  notice  of  initiation,  it  was  decided  not  to  apply  sampling. 
Questionnaires  were  sent  to  these  seven  companies,  only  three  of  which  submitted 
replies. Of these three companies, only two reported exports of the product concerned 
to the Union during the RIP. 

(15)  As for the Union producers, in accordance with Article 17(1) of the basic Regulation, 
the sample was selected after consultation with the relevant association and with their 
consent  on  the  basis  of  the  largest  representative  volume  of  sales  and  production 
within the Union. As a result, eight Union producers were selected in the sample. The 
Commission  sent  questionnaires  to  the  eight  companies  selected,  which  submitted 
complete replies. 

(16)  Given the limited number of importers who replied and indicated their willingness to 
cooperate  (4  importers),  it  was  decided  that  sampling  was  not  necessary  as  regard 
importers. The Commission sent questionnaires to the 4 importers. Subsequently, only 
one  importer  sent  a  reply  to  the  questionnaire,  but  this  reply  was  incomplete  as  the 
importer was involved in the process of closing down its operations. 

(17)  The  Commission  sought  and  verified  all  information  it  deemed  necessary  for  the 
purpose of determining of the likelihood of continuation or recurrence of dumping and 
injury and the Union interest. Information submitted by the following companies was 
verified on spot: 

(a) 

Producers in the Union 

– 

– 

– 

– 

– 

– 

– 

– 

Accell Group N.V., Heerenveen, The Netherlands, 

Decathlon S.A., Villeneuve d'Ascq, France, 

Cycleurope Industries S.A.S., Romilly sur Seine, France, 

Denver S.R.L., Dronero, Italy, 

Derby Cycle Werke GmbH, Cloppenburg, Germany, 

MIFA Mitteldeutsche Fahrradwerke AG, Sangerhausen, Germany, 

Sprick Rowery Sp.zo.o., Świebodzin, Poland and Sprick Cycle GmbH, 
Gütersloh, Germany, 

UAB Baltik Vairas and UAB Baltic Bicycle Trade, Šiauliai, Lithuania, 
and Pantherwerke AG and Onyx Cycle GmbH, Löhne, Germany.  

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(b) 

Exporting producers in the PRC 

– 

– 

Oyama Bicycles (Taicang) Co., China, 

Tianjin Golden Wheel Bicycle (Group) Co. Ltd., China. 

(18)  The investigation of dumping and injury covered the period from 1 April 2009 to 31 
March 2010 (the "review investigation period" or "RIP"). The examination of trends in 
the context of the analysis of injury covered the period from January 2007 to the end 
of the RIP (the "period considered"). 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(19)  The product concerned is the same as that covered by Regulation (EC) No 1524/2000 
as  amended  by  regulation  (EC)  No  1095/2005,  namely  bicycles  and  other  cycles 
(including delivery tricycles, but excluding unicycles), not motorised, currently falling 
within CN codes ex 8712 00 10, 8712 00 30 and ex 8712 00 80. 

(20)  As  in  the  previous  investigation,  the  bicycles  were  classified  in  the  following 

categories: 

– 

– 

– 

– 

(A) ATB (al-terrain bicycles including mountain bicycles 24″ or 26″), 

(B) trekking/city/hybrid/VTC/touring bicycles 26″ or 28″, 

(C) junior action (BMX) and children's bicycles 16″ or 20″, 

(D) other bicycles/cycles (excluding unicycles). 

(21)  All  types  of  bicycles  as  defined  above  have  the  same  basic  physical  and  technical 
characteristics.  Furthermore,  they  are  sold  through  similar  distribution  channels  such 
as specialised retailers, sport chains and mass merchandisers on the Union market. The 
basic application and use of bicycles being identical, they are largely interchangeable 
and models from different categories therefore compete with each other. On this basis, 
it was concluded that all the categories form one single product.  

(22)  The investigation also showed that bicycles produced and sold by the Union industry 
on  the  Union  market,  those  produced  and  sold  on  the  analogue  country  market  and 
those  imported  into  the  Union  market  originating  in  the  PRC  have  the  same  basic 
physical and technical characteristics and the same basic uses.  

(23)  After disclosure, one party alleged that there was little or no competition between the 
Chinese bicycles and the bicycles produced in the Union market. However, there was 
no information in the file that could have supported such claim and no documentary 
evidence was submitted in support to this claim. In this context, it is also noted that as 
mentioned  below  in  recital  (26),  the  cooperation  of  the  Chinese  exporting  producers 
was  very  low  and  they  provided  very  limited  information  concerning  the  products 
produced  and  sold  by  the  Chinese  producers  to  the  Union  market.  Therefore,  and  in 
the absence of any more reliable information, the claim was rejected.  

(24)  Bicycles  produced  and  sold  by  the  Union  industry  on  the  Union  market,  those 
produced and sold on the analogue country market and those imported into the Union 

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market  originating  in  the  PRC  are,  therefore,  considered  to  be  alike  within  the 
meaning of Article 1(4) of the basic Regulation. 

LIKELIHOOD OF A CONTINUATION OR A RECURRENCE OF DUMPING 

PRELIMINARY REMARKS 

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  it  was  examined  whether 
dumping  was  likely  to  continue  or  recur  upon  a  possible  expiry  of  the  measures  in 
force. 

C. 

1. 

(25) 

(26)  The  level  of  cooperation  in  this  proceeding  was  very  low  since  its  initiation.  As 
indicated in recital (14), only three Chinese producers submitted questionnaire replies 
and  were  willing  to  cooperate  initially.  Of  these  three  companies,  only  two  reported 
exports  of  the  product  concerned  to  the  Union  during  the  RIP,  representing  together 
less than 10% of the total exports of the product concerned to the Union. 

(27)  Verification visits were carried out at the premises of the two companies with exports 
sales to the Union. However, for one of them, it was not possible to verify information 
given  in  the  questionnaire  reply  as  the  company  failed  to  provide  documents  that 
would  substantiate  the  data  which  it  had  submitted.  The  other  company  cooperated 
satisfactorily, but its exports to the Union during the RIP represent less than 5% of the 
total exports of the product concerned from the PRC to the Union.  

(28)  On  the  basis  of  the  above,  the  Chinese  authorities  and  the  three  companies  were 
notified of the possibility that Article 18 of the basic Regulation might be applied due 
to  a  low  level  of  cooperation  by  the  exporting  producers  and  were  given  an 
opportunity  to  present  their  comments.  The  Commission  did  not  receive  any 
comments  in  response  to  this  communication.  Consequently,  conclusions  regarding 
the  likelihood  of  continuation  or  recurrence  of  dumping  below  are  based  on  facts 
available in accordance with Article 18 of the basic Regulation, namely trade statistics 
and submissions by interested parties, including the request.  

2. 

DUMPING OF CHINESE IMPORTS DURING THE RIP 

2.1. 

Analogue country 

(29) 

In the notice of initiation, it was envisaged to use Mexico as an analogue country for 
the purpose of establishing a normal value for the PRC. Interested parties were invited 
to comment on the appropriateness of this choice.  

(30)  One  party  commented  on  the  appropriateness  of  the  selection  of  Mexico  as  the 
analogue country, claiming that domestic prices of bicycles in Mexico are not reliable 
and  are  unsuitable  for  the  purpose  of  this  investigation.  India  was  proposed  as  an 
alternative. This claim was, however, not substantiated and, therefore, rejected.  

(31)  Mexico was used as an analogue country in the previous investigations and no new or 
changed  circumstances  which  would  justify  a  change  were  proven  to  exist.  The 
Mexican  market  profile  for  the  product  concerned,  number  of  operators,  domestic 
competition and the features of production process confirmed that Mexico was still an 
appropriate analogue country.  

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(32)  Questionnaires  were  sent  to  three  Mexican  companies.  Of  the  three  companies,  only 

one wished to cooperate and submitted a questionnaire reply.  

2.2. 

Normal value 

(33)  Domestic  sale  prices  from  the  analogue  country  were  used  to  establish  an  average 
normal value, using the average currency rate for the RIP between Euro and Peso in 
order to obtain a weighted average ex-works price in Euro.  

2.3. 

Export price 

(34)  Due to the application of Article 18 and to the absence of other reliable information 
available, export prices were mainly established on the basis of Eurostat data and on 
information provided by the only Chinese cooperating exporter. 

(35)  During the previous investigation, it was concluded that the prices found in Eurostat 
were  inconclusive  for  the  purpose  of  the  analysis12.  However,  due  to  the  low 
cooperation from the Chinese exporters, the Commission considered the import prices 
of  Eurostat  for  the  PRC  as  a  reasonable  source  for  the  purpose  of  the  current 
investigation. Nonetheless, the Commission is aware of the limitations of this analysis 
and that it can only serve as an indicator of price trends. 

(36)  The export price derived from Eurostat is a CIF price, which had to be adjusted for the 
average  cost  of  sea  freight  per  transaction  in  order  to  calculate  an  ex-works  level. 
Information contained in the reply of the sole cooperating Chinese producer was used 
to establish the average sea freight cost per unit, calculated at EUR 8,30. The ex-works 
export price to the Union of the only Chinese cooperating company was established on 
a similar basis. The resulting unit price was then used to calculate a weighted average 
Chinese ex-works price.  

2.4. 

Comparison 

(37)  Pursuant to Article 2(11) of the basic Regulation, the weighted average normal value 
from  Mexico  was  compared  to  the  weighted  average  Chinese  export  price  on  an  ex-
works basis. A weighted average dumping margin was thus established.  

2.5. 

Dumping margin 

(38)  The dumping calculations showed a country-wide dumping margin of more than 20%. 
This  level  should,  however,  be  considered  as  conservative  due  to  the  fact  that  the 
Eurostat  data  does  not  take  into  account  the  substantial  price  differences  among  the 
various  types  of  the  product  concerned.  It  should  be  noted  in  this  context  that 
according to information submitted in the request, dumping margins reached levels of 
more than 100%. 

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OJ L 183, 14.7.2005, p. 20 

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3. 

DEVELOPMENT OF IMPORTS SHOULD MEASURES BE REPEALED  

3.1. 

Preliminary remark 

(39)  The  likely  development  of  the  imports  from  the  PRC  was  analysed  in  terms  of  both 

expected price trends and volume.  

3.2. 

Spare capacity of the Chinese exporting producers 

(40)  Based  on  information  submitted  in  the  request,  the  Chinese  bicycles  manufacturing 
industry  is,  in  volume  terms,  the  largest  in  the  world.  The  PRC  has  a  production 
capacity of 100 to 110 million bicycles and a production of about 80 million bicycles 
per year. The Chinese bicycles industry is export oriented: out of an annual production 
of 80 million bikes, 25 million bicycles are for the domestic market and the remaining 
55 million bicycles, or 69% of total production, is for export.  

(41)  The  estimated  annual  spare  capacity  in  the  PRC  is  about  20  to  30  million  bicycles, 
which is more than double the present production in the Union as stated in recital (66). 
Moreover,  information  obtained  during  the  investigation  shows  that  the  production 
capacity  in  the  PRC  for  bicycles  can  be  easily  increased,  inter  alia,  through  the 
employment of additional workforce, in case of an increased demand. 

(42)  Therefore, in view of the above, it cannot be excluded that spare capacity available in 
the PRC could be used to increase exports to the Union in the absence of anti-dumping 
measures.  

(43)  After  disclosure one  party  argued that the Chinese production capacity  mentioned in 
the  regulation  was  unfounded  and  based  on  pure  speculation.  In  this  respect,  it  is 
reminded that the cooperation from the Chinese exporting producers was very low and 
that to a large extent findings had to be based on the facts available. In this case, and 
as  mentioned  above  in  recital  (40),  in  the  absence  of  any  other  more  reliable 
information, the Commission used the prima facie evidence submitted in the request. 
The investigation did not bring into light any information that would have suggested 
that  such  prima  facie  evidence  was  inaccurate.  The  party  in  question  did  also  not 
submit  any  information  or  evidence  that  would  have  shown  substantially  different 
levels of spare capacity in PRC. This claim was therefore rejected.  

3.3. 

Attractiveness of the Union market and export prices to third countries 

(44)  Data from Eurostat and from the request show that the Union constitutes an attractive 

market for the Chinese exporting producers.  

(45)  Price information provided by the only cooperating Chinese exporting company show 
that  the  weighted  average  ex-works  export  prices  of  the  product  regarding  third 
countries  is  lower  than  the  average  ex-works  sales  prices  in  the  Union  for  the  RIP. 
Taking the production capacity in the PRC and the demand in the Union market into 
consideration, it would be quite likely that Chinese manufacturers would immediately 
increase  their  exports  of  bicycles  to  the  Union,  should  the  measures  be  repealed. 
Moreover, the existing overcapacity gives the Chinese manufacturers the possibility to 
be present on the European market at very low prices. 

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3.4. 

Conclusion of the likelihood of continuation of dumping 

(46) 

In  view  of  the  fact  that  even  considering  the  measures  currently  in  force,  a 
conservative comparison using Eurostat figures and information submitted by the only 
Chinese  cooperating  exporter  showed  a  dumping  margin  of  over  20%  for  Chinese 
exports during the RIP, it is very likely that dumping will continue in the absence of 
measures. 

(47)  The  foregoing  analysis  demonstrated  that  Chinese  imports  continued  to  enter  the 
Union market at dumped prices. Given most notably the spare capacity available in the 
PRC, which can easily be increased even more if needed, as well as the analysis of the 
price levels in the Union and other third countries, it can be concluded that there is a 
likelihood of continuation of dumping, should measures be removed.  

D. 

SITUATION ON THE UNION MARKET  

1. 

UNION PRODUCTION AND UNION INDUSTRY  

(48) 

In  the  course  of  the  present  investigation  it  was  found  that  bicycles  have  been 
manufactured by around  100  Union  producers which made themselves known  in the 
investigation  plus  other  producers,  most  of  which  are  represented  by  their  national 
associations.  These  companies  constitute  the  Union  industry  within  the  meaning  of 
Article  4(1)  of  the  basic  Regulation.  Furthermore,  the  investigation  showed  that  the 
industry is benefiting from the exemption scheme which was described in  recital (1) 
above. 

(49)  All available information, including information provided in the request, data collected 
from  Union  producers  and  national  associations  before  and  after  the  initiation  of  the 
investigation,  as  well  as  general  production  statistics  was  used  in  order  to  establish 
total Union production.  

2. 

CONSUMPTION IN THE UNION MARKET 

(50)  The  Union  producers'  sales  were  assessed  on  the  basis  of  data  collected  from 
producers in the reply to the sampling forms and data reported in the request lodged by 
the  applicant.  The  data  in  the  request  was  collected  from  various  bicycle-
manufacturing associations in the Union. 

(51)  The apparent Union consumption was established on the basis of the sales of all Union 
producers  on  the  Union  market,  as  estimated  in  recital  (68),  plus  imports  from  all 
countries as reported by Eurostat. 

(52)  Between 2007 and the RIP, Union consumption decreased by 11% from 22 912 066 
units  in  the  year  2007  to  20  336  813  units  during  the  RIP.  Consumption  fell  in 
particular between 2008 and 2009. Detailed data, expressed in units, are as follows: 

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Table 1 
Consumption 
2008 

2007 

2009 

RIP 

Volume (units) 
+ Total imports 
+ Union production sold 
on the Union market 
= Consumption 
Index (2007=100) 

10.073.428  

10.017.551  

8.973.969  

9.202.752  

12.838.638  
22.912.066  
100 

12.441.446  
22.458.997  

98 

11.604.072  
20.578.041  

90 

11.134.061  
20.336.813  

89 

3. 

VOLUME  AND  MARKET  SHARE  OF  DUMPED  IMPORTS  FROM  THE  PEOPLE'S 
REPUBLIC OF CHINA  

(53)  The  volume  of  imports  of  the  product  concerned  was  established  on  the  basis  of 
statistical  information  provided  by  Eurostat.  The  volume  of  dumped  imports  of  the 
product  concerned  originating  in  the  PRC  decreased  by  38%  over  the  period 
considered to 615 920 units during the RIP (see Table 2). The imports of the product 
concerned  from  the  PRC  at  the  beginning  of  the  period  considered  was  26%  higher 
than  that  imported  during  the  RIP  of  the  previous  investigation  (1  April  2003  to  31 
March  2004:  733  901  units13).  The  largest  drop  in  the  imports  of  the  product 
concerned  occurred  between  2008  and  2009,  which  is  in  line  with  what  occurred  in 
total Union consumption (see Table 1 and 2). 

(54)  Since  the  imports  from  the  PRC  fell  more  than  the  consumption  during  the  period 
considered, the market share of the PRC slightly dropped from 4,4 % in 2007 to 3,1 % 
in the RIP. 

(55)  The  developments  of  imports  and  market  share  of  bicycles  originating  in  the  PRC 

during the period considered is shown in the following table: 

Table 2 
Imports from PRC 
2008 

2007 

2009 

RIP 

Volume of imports from the 
country concerned (units) 
Index (2007=100) 

Market share of imports from 
the country concerned 

986.514  

100 

4,4% 

941.522  
95 

598.565  
61 

615.920  
62 

4,3% 

3,0% 

3,1% 

4. 

PRICES OF THE IMPORTS CONCERNED 

4.1. 

Evolution of prices 

(56)  As explained in recital (35) the Commission considered the imports prices of Eurostat 
for the PRC as a reasonable source for the purpose of the current investigation.  

(57)  According to Eurostat data, the weighted average import prices, hereafter indicated by 
index,  from  the  PRC  increased  by  125%  between  the  year  2007  and  the  RIP.  The 
import prices  rose significantly in 2009 and then remained almost constant. Detailed 
data is shown in the following table:  

13 

OJ L 183, 14.7.2005, p. 19 

EN 

13 

   EN 

 
 
  
  
  
  
  
                                                 
PRC 
Index (2007=100) 

2007 

28  
100 

4.2. 

Price undercutting 

Table 3 
Prices of the imports concerned 
2008 

36  

2009 

62  

RIP 

62  

128  

224  

225  

(58)  For the determination of the price undercutting of bicycles originating in the PRC, the 
Commission  based  its  analysis  on  the  information  submitted  in  the  course  of  the 
investigation  by  the  sampled  Union  producers  and  the  average  prices  from  Eurostat. 
The relevant sales prices of the Union industry were those to independent customers, 
which were adjusted when necessary to ex-works level. The comparison showed that 
after deduction of the anti-dumping duty, imports from the PRC were undercutting the 
prices of the Union industry by 53%.  

5. 

IMPORTS FROM OTHER COUNTRIES 

(59)  Based on Eurostat data, imports from other third countries decreased from 9 087 000 
units in 2007 to 8 587 000 units in the RIP; an overall decrease of 6%. They followed 
the decreasing trend of Union consumption (- 11%), but at a slower pace. The market 
share  of  third  countries  increased  from  40%  to  42%  during  the  period  considered. 
However  as  stated  in  recital  (35)  and  (56),  the  prices  in  Eurostat  do  not  take  into 
consideration the various product mixes from each country and therefore only indexes 
are used to indicate the price trends. Since the product mix of the imports from other 
third  countries  is  unknown,  it  is  not  meaningful  to  compare  prices  of  the  imports 
below  with  those  of  the  Union  industry.  Nevertheless,  some  additional  information 
was sought and obtained regarding imports from those countries that account for most 
other imports of bicycles. Detailed data is shown below:  

EN 

14 

   EN 

 
  
2007 

2008 

2009 

RIP 

Table 4 
Imports from other countries 

All Types 

Taiwan 
Indexed 
Thailand 
Indexed 
Philippines 
Indexed 
Malaysia 
Indexed 
Sri Lanka 
Indexed 
Tunisia 
Indexed 
Others 
Indexed 
TOTAL 
Indexed 

Units 
'000 

3.186 
100 
1.534 
100 
690 
100 
475 
100 
574 
100 
550 
100 
2.078 
100 
9.087 
100 

Market 
share 

Price 
EUR/unit 

14% 
100 
7% 
100 
3% 
100 
2% 
100 
3% 
100 
2% 
100 
9% 
100 
40% 
100 

100 

100 

100 

100 

100 

100 

100 

100 

Units 
'000 

3.428 
108 
1.522 
99 
437 
63 
361 
76 
749 
131 
527 
96 
2.052 
99 
9.076 
100 

EN 

Market 
share 

Price 
EUR/unit 

15% 
110 
7% 
101 
2% 
65 
2% 
77 
3% 
133 
2% 
98 
9% 
101 
40% 
102 

104 

107 

105 

106 

107 

105 

110 

109 

15 

Units 
'000 

2.949 
93 
1.384 
90 
449 
65 
193 
41 
1.017 
177 
530 
96 
1.854 
89 
8.375 
92 

Market 
share 

Price 
EUR/unit 

14% 
103 
7% 
100 
2% 
73 
1% 
45 
5% 
197 
3% 
107 
9% 
99 
41% 
103 

125 

127 

106 

116 

108 

113 

131 

125 

Units 
'000 

2.958 
93 
1.397 
91 
476 
69 
265 
56 
1.101 
192 
495 
90 
1.895 
91 
8.587 
94 

Market 
share 

Price 
EUR/unit 

15% 
105 
7% 
103 
2% 
78 
1% 
63 
5% 
216 
2% 
101 
9% 
103 
42% 
106 

125 

127 

103 

99 

107 

113 

127 

122 

EN 

 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 

Taiwan 

(60)  The imports from Taiwan have decreased during the period considered from 3 158 600 
units in 2007 to 2 958 000 units in the RIP and their market share slightly increased 
from 14% to 15% during the same period. Imports of bicycles from Taiwan are aimed 
at  the  high-end  market.  During  the  investigation,  it  has  been  demonstrated,  applying 
model comparison, that imports from Taiwan are sold at a higher price than the similar 
models produced by the Union industry like in the previous investigation period14. In 
addition,  during  the  period  considered,  the  price  of  the  imports  had  an  increasing 
trend, registering an increase of 25% in the RIP as compared to 2007.  

(2) 

Thailand 

(61) 

Imports  originating  in  Thailand  have  decreased  during  the  period  considered  from  1 
534 000 units in 2007 to 1 397 000 units during the RIP. The decline of the imports 
was in line with the consumption trend as their market share remained constant at 7%. 
However,  the  imports  of  bicycles  from  Thailand  are  mid-range  bicycles  and  the 
investigation showed that applying model comparison, the imports from Thailand are 
sold  at  a  higher  price  than  the  similar  models  produced  by  the  Union  industry.  In 
addition,  during  the  period  considered,  the  price  of  the  imports  had  an  increasing 
trend, registering an increase of 27% in the RIP as compared to 2007. 

(3) 

Sri Lanka 

(62)  The  imports  from  Sri  Lanka  almost  doubled  during  the  period  considered  from  574 
000 units in 2007 to 1 101 000 units during the RIP and their market share reached 5% 
at the end of the period considered. It has, however, been alleged by one party that the 
Chinese  exporters  are  circumventing 
the  anti-dumping  duties  by  means  of 
transhipment  via  Sri  Lanka.  At  this  moment  in  time,  the  Commission  does  not  have 
sufficient  information  to  draw  any  conclusion  in  respect  of  the  situation  of  these 
imports.  In  these  circumstances,  it  can  not  be  excluded  that  imports  reported  as 
originating  from  Sri  Lanka  are  contributing  to  the  injury  suffered  by  the  Union 
industry.  

(63)  After  disclosure,  one  interested  party  claimed  that  the  conclusions  on  a  possible 
circumvention  via  Sri  Lanka  were  only  a  conjecture  and  any  allegation  concerning 
circumvention  practices  via  Sri  Lanka  should  not  be  taken  into  consideration  in  the 
final  conclusions.  In  reply  to  this  claim,  it  should  be  underlined  that,  as  clearly 
expressed in recital (62) above, the Commission did not draw any conclusion on this 
issue. 

6. 

ECONOMIC SITUATION OF THE UNION INDUSTRY  

6.1. 

Preliminary remarks 

(64)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  the  Commission  examined  all 
relevant  economic  factors  and  indices  having  a  bearing  on  the  state  of  the  Union 
industry.  

14 

OJ L 183, 14.7.2005, p. 30 

EN 

16 

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(65)  As  explained  above,  considering  the  large  number  of  complainant  Union  producers, 
the provisions on sampling had to be used. For the purpose of the injury analysis, the 
injury indicators have been established as follows: 

•  The  macroeconomic  elements  (production  capacity,  sales  volume,  market  share, 
employment,  productivity,  growth,  magnitude  of  dumping  margins  and  recovery 
from the effects of past dumping) were assessed at the level of the whole Union 
production,  on  the  basis  of  the  information  collected  from  the  national  Union 
producers  associations  and  individual  companies.  These  factors  were  cross-
checked,  where  possible,  with  the  overall  information  provided  by  the  relevant 
official statistics. 

•  The  analysis  of  microeconomic  elements  (stocks,  sales  prices,  cash  flow, 
profitability,  return  on  investments,  ability  to  raise  capital,  investments  and 
wages)  was  carried  out  for  the  individual  companies,  i.e.  at  the  level  of  those 
Union producers which were included in the sample. 

6.2. 

Macro-economic indicators 

(a) 

Production, production capacity and capacity utilisation  

(66)  The  Union  industry’s  production  slightly  decreased  each  year  during  the  period 
considered. By the end of RIP, the production decreased by 11% compared to 2007 in 
line with the consumption trend. The detailed data is shown in Table 5: 

Table 5 
Total Union production 

2007 

2008 

2009 

RIP 

Volume (units) 
Production 
Index (2007=100) 

13.813.966 
100

13.541.244 
98 

12.778.305  
93  

12.267.037 
89 

(67)  Production  capacity  increased  slightly  by  2%  between  2007  and  the  RIP.  As 
production decreased, the resulting capacity utilisation showed an overall decrease of 
13% between 2007 and the RIP, reaching an 81% capacity utilisation during the RIP. 
Detailed data is shown below: 

Table 6 
Production capacity and capacity utilisation 

2007 

2008 

2009 

RIP 

Volume (units) 
Production capacity 
Index (2007=100) 
Capacity utilisation 
Index (2007=100) 

14.785.000 
100
93%
100

15.804.000 
107 
86%
92 

15.660.000  
106  
82% 
87  

15.118.000 
102 
81%
87 

EN 

17 

   EN 

 
  
  
  
  
  
 
  
  
  
  
  
 
(b) 

Sales volume  

(68)  The sales volume of the Union industry on the Union market to unrelated customers 
decreased  by  13%  between  2007  and  the  RIP.  This  development  is  in  line  with  the 
general trend of decreasing consumption on the Union market. Detailed data is shown 
below: 

Table 7 
Sales to unrelated customers 

Volume (units) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

12.838.638  

12.441.446  

11.604.072  

11.134.061  

100

97 

90  

87 

(c)  Market share 

(69)  The market share held by the Union industry slightly fluctuated between 2007 and the 
RIP.  Overall,  there  has  been  a  decrease  of  1,3  percentage  points  during  the  period 
considered. Detailed data is shown below: 

Table 8 
Union market share 

2007 

2008 

2009 

RIP 

Union market share 
Index (2007=100) 

56,0%
100

55,4%
99 

56,4% 
101  

54,7%
98 

(d) 

Employment and productivity  

(70)  Employment decreased by 9% during the period considered from 14 925 employees in 

2007 to 13 646 during the RIP.  

(71)  The productivity slightly increased in 2008 as compared to 2007, but then it declined. 
Overall,  the  productivity  slightly  decreased  by  3%  during  the  period  considered. 
Detailed data is shown below: 

Table 9 
Total Union employment and productivity 

2007 

2008 

2009 

RIP 

Number of employees 
Index (2007=100) 
Productivity (units/year) 
Index (2007=100) 

14.925  

14.197  

14.147  

13.646  

926  

100

100

954  

95 

103 

903  

95  

98  

899  

91 

97 

(e) 

Growth  

(72)  Overall,  it  should  be  noted  that  the  market  share  of  all  Union  producers  slightly 
decreased by 1,3 percentage points, while the level of consumption decreased by 11%, 
which indicates clearly that they have not been able to grow.  

EN 

18 

   EN 

 
  
 
  
 
  
 
(f) 

Magnitude of dumping margin 

(73)  Dumping  from  the  PRC  continued  during  the  RIP.  As  explained  in  recital  (34),  the 
dumping  calculation  is  based  on  average  prices  from  Eurostat  due  to  the  low 
cooperation  from  the  Chinese  exporters.  As  stated  in  recital  (35),  the  average  prices 
from  Eurostat  contains  limited  information  concerning  the  product  mix  which  is  of 
significant importance for the calculation of the dumping margin; nevertheless, given 
the  spare  capacity  from  the  PRC,  the  impact  on  the  Union  industry  of  the  actual 
margins of dumping cannot be considered to be negligible. 

(g) 

Recovery from past dumping 

(74) 

It  was  analysed  whether  the  Union  industry  recovered  from  the  effects  of  past 
dumping. It was concluded that the expected recovery of the Union industry from the 
effects  of  past  dumping  has  not  happened  to  the  extent  anticipated  as  shown,  in 
particular,  by  the  persistently  low  profitability  and  a  decrease  in  the  capacity 
utilisation. 

6.3. 

Micro-economic Indicators 

(h) 

Stocks  

(75)  One producer could not provide consistent information regarding stocks for the period 
considered due to its current internal structure. Accordingly, data from this company 
had to be excluded when carrying out the analysis of stocks for the period considered. 

(76)  Stocks of bicycles increased over the analysis period from 880 935 units in 2007 to 1 

091 516 units in the RIP, an increase of 24 %. Detailed data is shown below: 

Table 10 
Stocks 

2008 

2007 

2009 

RIP 

Volume (units) 
Closing stocks 
Index (2007=100) 

880.935 
100

1.132.612 
129 

818.276  
93  

1.091.516 
124 

(i) 

Sales prices and costs 

(77)  Average  ex-works  sales  price  of  the  Union  industry  to  unrelated  customers  in  the 
Union  followed  a  slightly  increasing  trend  over  the  period  considered.  Overall,  the 
Union industry increased its prices by 9% between 2007 and the RIP in line with the 
increase of the cost of production as explained in recital (79). 

Table 11 
Unit price Union market 

2007 

2008 

2009 

RIP 

Unit price of Union sales 
(EUR per unit) 
Index (2007=100) 

163  

170  

176  

178  

100

104 

108  

109 

EN 

19 

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(78)  The cost of production was calculated on the basis of the weighted average of all types 

of the like product produced by the sampled producers. 

(79)  The cost of production throughout the period increased by 9%. This increase is mainly 

due to a change in the mix of the products. Detailed data is shown below: 

Table 12 
Unit cost of production  

2007 

2008 

2009 

RIP 

Unit cost of production 
(EUR per unit) 
Index (2007=100) 

165  

169  

180  

180  

100

102 

109  

109 

(80)  After  disclosure,  one  party  alleged  that  the  increasing  cost  of  production  took  place 
against  a  background  of  significant  reductions  in  some  raw  material  costs,  namely 
steel and aluminium, which would suggest that the injury suffered was self inflicted. 
However,  this  allegation  was  not  substantiated  by  sufficient  evidence.  Indeed,  the 
party  provided  only  data  showing,  in  very  general  terms,  the  price  evolution  of 
aluminium and steel during the period under consideration, but did not show to what 
extend  these  developments  should  have  impacted  the  overall  cost  of  production  of 
bicycles.  In  addition,  this  argument  was  only  raised  after  disclosure  id  est  at  an 
advanced  stage  of  the  proceeding  and  it  was,  therefore,  not  verifiable  anymore. 
Therefore, the allegation was rejected.  

(j) 

Profitability 

(81)  The overall profitability of the sampled producers in respect of the product concerned 
during the first year of the period considered was negative (-1,7%). In 2008, the Union 
producers became profitable. However, in 2009 and in the RIP, the industry was again 
loss making. 

(82)  The above trend indicates that the industry is in a fragile situation as compared to the 
previous investigation when the Union industry profitability was 3,6% during the RIP.  

Profitability Union sales 
Index (2007=100) 

Table 13 
Profitability 
2008 

2007 

-1,7%
-100

2009 

RIP 

0,6%
33 

-2,2% 
- 129  

-1,1%
- 68 

(83)  After  disclosure,  it  was  alleged  without  providing,  however,  any  supporting 
documentary evidence, that the Union industry had failed to improve its efficiency and 
performance. To the contrary, the investigation has shown that the Union industry has 
done  evident  efforts  to  adjust  to  the  price  pressure  coming  from  dumped  imports  by 
relocating  the  production  facilities  within  the  Union  and,  thus,  to  increase  cost 
effectiveness,  as  stated  in  recital  (85)  below.  Therefore,  these  allegations  have  been 
rejected. 

EN 

20 

   EN 

 
  
 
  
(k) 

Return on investment 

(84) 

(85) 

Investment in the business of the product concerned significantly decreased during the 
period considered, from EUR 21 491 000 in 2007 to EUR 11 738 000 during the RIP. 
This can be explained in large part by the economic crisis which began in 2008 and 
reached  its  deepest  point  during  the  RIP  when  access  to  new  capital  was  ever  more 
difficult and sales' forecasts were pessimistic. 

It  should  be  noted  that  a  sizeable  part  of  investments  has  been  done  in  order  to 
increase  the  efficiency  of  the  manufacturing  process  and  keep  up-to-date  with  the 
latest technologies. In this process, some of the production capacity has been shifted 
from  Western  European  countries  to  Eastern  European  countries,  expanding  the 
production  base  over  almost  all  Member  States  and  showing  the  Union  industry's 
vitality and efforts to remain competitive. 

Table 14 
Investments and Return on Investment 

Investments (EUR '000) 
Index (2007=100) 
Return on investment 

2007 

2008 

2009 

RIP 

21.491  

21.743  

10.701  

11.738  

100
-16%

101 
5%

50  
-20% 

55 
-10%

(86)  One  producer  was  not  able  to  provide  consistent  information  on  net  production  of 
fixed  assets  for  the  period  considered  for  the  calculation  of  the  return  on  investment 
due to its internal structure. Accordingly, data from this company had to be excluded 
when carrying out the analysis of return on investment for the period considered. 

(87)  Return  on  investment  followed  the  profitability  trend.  In  2007  the  sampled  Union 
producers registered a negative return on investment of 16% which slightly increased 
to a negative 10% during the RIP.  

(l) 

Cash flow and ability to raise capital 

(88)  One  producer  was  not  able  to  provide  consistent  information  on  cash  flow  for  the 
period  considered  due  to  its  structure  which  made  it  impossible  to  estimate  the  cash 
flow  for  only  a  bicycle  part  out  of  its  total  activity.  Accordingly,  data  from  this 
company had to be excluded when carrying out the analysis of the cash flow for the 
period considered. 

(89)  The  cash-flow,  which  is  the  ability  of  the  industry  to  self-finance  its  activities, 
remained positive during the period under investigation. However, between 2007 and 
the RIP, it decreased by around 33%. Detailed data is shown below: 

Table 15 
Cash flow 

Cash flow (EUR '000) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

19.981  

20.767 

19.261  

13.350  

100

104 

96  

67 

EN 

21 

   EN 

 
  
 
  
(90)  The sampled producers raise capital either internally when they belong to a group of 
companies  or  by  bank  loans.  In  other  cases,  cash  flow  generated  by  the  company  is 
used  as  a  source  of  financing.  None  of  the  sampled  producers  have  shown  any 
significant difficulties to raise capital. 

(m)  Wages 

(91)  During  the  period  considered,  the  wage  cost  per  employee  increased  by  11%.  This 

reflects a shift of production to slightly more sophisticated products. 

Table 16 
Wages 

2007 

2008 

2009 

RIP 

Wage cost per employee 
(in EUR) 
Index (2007=100) 

20.239  

20.880  

22.499  

22.541  

100

103 

111  

111 

(92)  After disclosure, it was alleged that the wage cost per employee was increasing while, 
at the same time, the demand slumped, which would indicate that the injury was self 
inflicted. Indeed, as shown in the table above, the wage cost per employee increased 
by  11  %  during  the  period  considered.  However,  as  explained  in  recital  (70),  the 
number of employees decreased by 9 %. Consequently, the total wage cost increased 
by  only  2%.  Therefore,  the  overall  impact  on  the  profitability  of  the  Union  industry 
was found to be very small.  

7. 

CONCLUSION ON INJURY  

(93)  The existing anti-dumping measures have clearly had an effect on the situation of the 
Union  industry.  Indeed,  the  latter  has  managed,  to  some  extent,  to  benefit  from  the 
existence  of  the  measures  maintaining  a  stable  market  share.  However,  the  Union 
production  decreased  and  profit  margin  remained  insufficient.  Any  possibility  for 
further growth and profits has been undermined by the price and volume pressure of 
dumped imports.  

(94)  As shown in recital (53), volumes of imports from the PRC decreased between 2007 
and the RIP. However, the biggest drop of the volume of imports was between 2008 
and 2009 when the import prices from the PRC increased significantly. Nevertheless, 
as the investigation showed and as explained in recital (58), this increase in price was 
still not enough to allow the industry to improve its situation. Indeed, the imports from 
the PRC were undercutting the prices of the Union industry by 53%.  

(95)  The  industry  is  clearly  in  a  fragile  situation,  as  it  is  loss  making.  Almost  all  injury 
indicators  relating  to  the  financial  performance  of  the  Union  producers  –  such  as 
profitability,  return  on  investments  and  cash-flow  –  deteriorated  during  the  period 
considered.  Consequently,  it  cannot  be  concluded  that  the  situation  of  the  Union 
industry is secure. Moreover, this situation could have been further exacerbated by the 
pressure of the possibly circumventing imports.  

(96)  On  this  basis,  it  is  concluded  that  the  Union  Industry,  as  a  whole,  remains  in  a 
vulnerable  economic  situation  and  has  continued  to  suffer  material  injury  within  the 
meaning of Article 3 of the basic Regulation.  

EN 

22 

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8. 

IMPACT OF DUMPED IMPORTS AND OTHER FACTORS  

8.1. 

Impact of the dumped imports  

(97) 

In  parallel  to  the  shrinking  consumption  in  the  Union,  the  market  share  of  Chinese 
imports  slightly  decreased  from  4,4%  to  3,1%  (see  recital  (53)).  As  mentioned  in 
recital  (58)  above,  based  on  a  calculation  excluding  the  anti-dumping  duty,  the 
Chinese  imports  undercut  the  Union  industry  prices  by  53%  during  the  RIP.  It  is 
recalled that the duty rate amounts to 48,5%. Consequently, the level of undercutting 
demonstrates on the one hand the effectiveness of the duties in place, and on the other 
hand the necessity to continue the measures. This conclusion is reinforced by the fact 
that the undercutting found was at the same level as in the last review investigation. 
Hence,  the  injurious  price  impact  of  dumped  imports  from  the  PRC  on  the  Union 
industry  remained  significant  and,  as  explained  above  in  recitals  (58),  it  is  likely  to 
continue. 

8.2. 

Impact of the economic crisis 

(98)  Due to the negative economic conditions prevailing during the RIP, the consumption 
of  bicycles  decreased.  Production  and  employment  also  decreased  to  follow  the 
consumption trend. As the bicycle industry does not have high fixed costs, the decline 
in  production  did  not  have  an  impact  on  the  profitability  of  the  Union  bicycles 
industry. 

(99)  After disclosure, it was alleged that the Union industry created additional production 
capacity when the Union consumption was declining which had a negative impact on 
the Union industry's situation. This statement is in contradiction with the development 
of  consumption  and  capacity  as  described  in  recitals  (52)  and  (67)  above.  Indeed, 
consumption mainly decreased between 2008 and 2009, while the production capacity 
had already increased one year before, namely in 2007 and 2008. Consequently, this 
allegation was rejected.  

8.3. 

Imports from other countries 

(100)  As  explained  in  recital  (59),  the  volume  of  imports  from  other  third  countries 
decreased by 6% in line with the consumption trend. The market share of imports from 
other countries increased from 40% in 2007 to 42% in the RIP. Their average imports 
price  had  an  increasing  trend  by  6%  between  2007  and  the RIP.  The  main  countries 
from  which  the  product  concerned  was  imported  were  Taiwan,  Thailand  and  Sri 
Lanka. 

(101)  The  market  share  of  imports  from  Taiwan  slightly  increased  over  the  period 
considered (from 14% to 15%). However, the available information indicates that, as 
explained in recital (60), the imports from Taiwan are competing under fair conditions 
with the Union produced bicycles.  

(102)  The  market  share  of  imports  from  Thailand  remained  constant  over  the  period 
considered. As explained in recital (61), the available information indicates that during 
the RIP these imports were sold at a competitive price with similar bicycles produced 
in the Union.  

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(103)  Imports originating in Sri Lanka have increased by 92% during the period considered. 
Their market share during the RIP was 5%. However, as explained in recital (62), the 
imports from Sri Lanka are alleged to include Chinese origin bicycles.  

(104)  In conclusion, among the biggest exporters of bicycles to the Union, the imports from 
Taiwan and Thailand could not have a negative impact on the situation of the Union 
industry mainly because of their price levels (similar to or even higher than that of the 
Union  industry  prices).  In  contrast,  it  cannot  be  excluded  that  imports  reported  as 
originating  from  Sri  Lanka  are  contributing  to  the  injury  suffered  by  the  Union 
industry. 

8.4. 

Circumvention 

(105)  It  has  been  alleged  with  evidence  that  the  Chinese  exporters  are  continuously 
circumventing  the  measures  through  imports  via  several  countries  and  these  imports 
cause injury to the Union industry. Taking into account the evidence of circumvention 
discovered by the European Anti-Fraud Office ("OLAF") in the past, most specifically 
for  imports  via  Philippines,  it  can  not  be  excluded  that  such  illegal  behaviour  still 
occurs on the market and that it causes injury to the Union industry. 

E. 

LIKELIHOOD OF CONTINUATION OF INJURY 

1. 

PRELIMINARY REMARKS 

(106)  As described in recitals (66) to (91), the imposition of anti-dumping measures allowed 
the Union industry to recover from the injury suffered, but only to some extent. During 
the  period  considered,  the  Union  industry  appeared  in  a  fragile  and  vulnerable 
situation, still exposed to the injurious effect of the dumped imports from the PRC.  

(107)  In  accordance  with  Article  11(2)  of  the  basic  Regulation,  imports  from  the  country 
concerned were assessed in order to establish if there was a likelihood of continuation 
of injury. 

2. 

CHINESE EXPORT VOLUMES  

(108)  As  mentioned  in  recital  (40),  the  Chinese  bicycles  industry  is  export  oriented.  The 
Chinese bicycles are present on the main markets worldwide, particularly in the USA 
and  Japan,  where  they  have  a  dominant  position.  As  mentioned  in  a  previous 
investigation15, at the end of the nineties, after a two-year absence from the US market 
following  the  imposition  of  anti-dumping  duties,  the  Chinese  exporting  producers 
managed to significantly increase their presence on that market in a very short period 
of time. In 2009, the exports of Chinese bicycles to the USA were in the range of 14 
055 000 units, out of a total consumption of 14 888 000 units. 

(109)  This  situation  shows  that  the  Chinese  producers  are  able  to  quickly  export  and 

penetrate new markets and to maintain a dominant position for a long period of time.  

(110)  After  disclosure,  one  party  claimed  that  should  measures  be  allowed  to  lapse  there 
would  not  be  a  substantial  increase  of  imports  of  Chinese  bicycles  because  Chinese 

15 

OJ L 175, 14.7.2000, p. 49 

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exporters  faced  difficulties  in  complying  with  the  European  bicycle  safety  standards 
(EN 14764, EN 14765, EN 14766 and EN 14781). However, this allegation was not 
substantiated  by  any  documentary  evidence.  To  the  contrary,  the  investigation  has 
shown that a significant proportion of bicycles and bicycle parts are already imported 
from the PRC complying with the necessary safety standards. There was, therefore, no 
reason  to  believe  that  Chinese  producers  are  not  able  to  comply  with  the  safety 
standards in force for bicycles. This claim was, therefore, rejected. 

3. 

SPARE CAPACITY IN THE PRC MARKET  

(111)  As described in recital (41), data collected during the investigation showed that there 
is  a  significant  spare  capacity  available  in  the  PRC.  Clear  indications  were  found 
pointing  to  the  conclusion  that  a  large  part  of  this  spare  capacity  could  be  used  to 
increase  exports  to  the  Union  in  the  absence  of  anti-dumping  measures.  This  is 
confirmed in particular because there are no indications that third country markets or 
the Chinese domestic market could absorb any additional production from the PRC.  

(112)  In  addition,  after  disclosure,  it  was  alleged  that  the  increase  of  Chinese  labour  costs 
would severely restrict the increase of Chinese production capacity. In this regard, it is 
noted  that  as  mentioned  in  recital  (26),  the  cooperation  of  the  Chinese  exporting 
producers  was  very  low  and  figures  relating  to  labour  cost  and  capacity  in  the  PRC 
have not been provided. In addition, the party concerned did not submit any evidence 
to support its claim. Therefore, this claim had to be rejected 

4. 

CIRCUMVENTION ALLEGATIONS 

(113)  As  explained  in  recital  (105),  it  has  been  alleged  with  evidence  that  the  Chinese 
exporters  are  continuously  circumventing  the  measures  through  imports  via  several 
countries.  This  is  further  confirmed  by  OLAF  in  the  Philippines  case.  This  type  of 
behaviour  shows  the  high  interest  of  the  Chinese  exporters  for  the  attractive  Union 
market.  

5. 

CONCLUSION  

(114)  The  Union  industry  had  been  suffering  from  the  effects  of  the  Chinese  dumped 
imports for several years and is still currently in a fragile economic situation.  

(115)  As shown above, the Union industry managed to recover from the Chinese dumping 
practice  thanks  to  the  anti-dumping  measures  in  force.  During  the  RIP,  however,  it 
found itself in a difficult economic situation. In this context, should the Union industry 
be  exposed  to  increased  volumes  of  dumped  low  priced  imports  from  the  country 
concerned, this would be likely to result in a further deterioration of its sales, market 
share, sales prices, as well as a further deterioration of its financial situation. 

(116)  In addition, as stated in recital (58) above, it was also found that the fact that the sales 
price of Chinese producers undercut those of the Union industry on average by 53% 
appears to indicate that in the absence of measures, Chinese exporting producers are 
likely  to  export  the  product  concerned  to  the  Union  market  at  prices  considerably 
lower than those of the Union industry. 

(117)  In view of the findings made during the investigation, namely the spare capacity in the 
PRC, the export oriented characteristic of the Chinese industry and the past behaviour 

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of the Chinese exporters on foreign markets, any repeal of the measures would point to 
a likelihood of continuation of injury.  

(118)  Finally,  as  referred  to  in  recitals  (105)  and  (113),  the  circumvention  is  strongly 
underpinning  the  conclusion  of  the  likelihood  of  the  continuation  of  injury.  It 
constitutes  clear  evidence  that  the  European  market  continues  to  be  an  attractive 
market for the Chinese producers who would likely direct higher volumes of exports 
into the Union in the absence of the anti-dumping measures.  

1. 

INTRODUCTION 

F. 

UNION INTEREST 

(119)  In accordance with Article 21 of the basic Regulation, it has been examined whether, 
despite  the  conclusion  on  injurious  dumping,  it  could  be  clearly  concluded  that  it 
would  not  be  in  the  Union  interest  to  maintain  the  anti-dumping  measures  against 
imports from the PRC.  

(120)  It should be recalled that, in the previous investigations, the adoption of measures was 
considered  not  to  be  against  the  interest  of  the  Union.  Furthermore,  the  fact  that  the 
present  investigation  is  a  review,  thus  analysing  a  situation  in  which  anti-dumping 
measures  have  already  been  in  place,  allows  the  assessment  of  any  undue  negative 
impact on the parties concerned by the current anti-dumping measures.  

(121)  The determination of the Union interest was based  on an  appreciation of the various 

interests involved, i.e. those of the Union industry, importers and users.  

2. 

INTEREST OF THE UNION INDUSTRY  

(122)  The Union bicycle industry has shown that it is viable and competitive if fair market 
conditions  prevail.  However,  the  investigation  showed  that  the  industry  is  still  in  a 
weak  situation  with  a  financial  result  close  to  break-even.  Therefore,  effective 
competitive conditions need to be maintained on the Union market. 

(123)  Furthermore, considering that new bicycle models are developed by the industry in the 
Union  to  a  large  extent,  they  would  also  fully  benefit  from  such  developments,  in 
terms  of  sales  volumes  and  prices,  if  the  pressure  of  dumped  imports  is  kept  under 
control by measures. 

(124)  It  is  considered  that  the  continuation  of  measures  would  benefit  the  Union  industry 
which  should  then  be  able  to  maintain  and  possibly  increase  sales  volumes  and, 
probably,  sales  prices  thereby  generating  the  necessary  return  level  which  would 
enable it to continue to invest in new technology. 

(125)  By  contrast,  if  measures  on  imports  from  the  PRC  were  to  lapse,  further  trade 
distortions  are  likely  to  occur,  which  would  inevitably  lead  to  a  halt  in  the  recovery 
process of the Union industry. Considering the spare production capacity of the PRC, 
the  past  behaviour  of  the  Chinese  exporters  on  foreign  markets,  it  is  clear  that  if 
measures  were  to  lapse,  it  would  be  very  difficult,  if  not  impossible,  for  the  Union 
industry to recover and even to maintain its position. Otherwise, the injurious situation 
of  the  Union  industry  is  likely  to  further  deteriorate,  which  may  lead  to  a  further 
reduction  of  production  capacity  in  the  Union  and  closure  of  several  producing 

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companies. It is therefore concluded that anti-dumping measures are in the interest of 
the Union industry.  

(126)  In view of the conclusions on the situation of the Union industry as set out at recitals 
(93)  to  (96)  above,  and  pursuant  to  the  arguments  relating  to  the  analysis  on  the 
likelihood of continuation of injury as explained in recitals (106) to (117), it can also 
be  considered  that  the  Union  industry  would  be  likely  to  experience  a  serious 
deterioration of its financial situation in case the anti-dumping duties were allowed to 
expire.  

3. 

INTEREST OF USERS 

(127)  The present investigation is supported by the European Cyclists' Federation (ECF), an 

umbrella federation of the national cyclists' associations in Europe. 

(128)  ECF  argues  that  Europe  is  the  most  important  market  for  modern  cycling  products 
with high standards in quality and safety and that an inflow of products from the PRC 
would  lessen  those  standards.  In  addition,  ECF  states  that  there  is  an  enormous 
potential for growth of the bicycles industry within the Union's economy, which would 
be jeopardised if anti-dumping duties are terminated.  

(129)  It  is  recalled  that,  in  the  previous  investigations,  it  was  found  that  the  impact  of  the 
imposition of measures would not be significant for the users. Despite the existence of 
measures,  importers/users  in  the  Union  were  able  to  continue  to  source  their  supply, 
inter  alia,  from  the  PRC.  No  indications  were  brought  forward  whether  there  have 
been  difficulties  in  finding  other  sources.  It  is  therefore  concluded  that  the 
maintenance  of  the  anti-dumping  measures  is  not  likely  to  have  a  serious  effect  on 
users in the Union. 

4. 

INTEREST OF SUPPLIERS 

(130)  The  Association  of  the  Bicycles  Parts  Producers  (COLIPED)  made  itself  known 
during  the  investigation.  COLIPED  argued  that  in  the  Union  there  are  about  300 
factories  which  are  supplying  components  to  the  bicycle  producers  which  employ 
about 7 300 people and that the further existence of the supplier industry was therefore 
inevitably depending on the continuation of the bicycles production in Europe. In this 
respect,  it  was  found  that  without  the  existence  of  the  measures,  it  is  to  be  expected 
that  further  closures  of  bicycles  production  in  Europe  will  occur,  which  would  have 
negative consequences for the Union parts industry and would jeopardise employment 
in the supplier industry. It is therefore concluded that the imposition of anti-dumping 
measures would be in the interest of the suppliers. 

5. 

INTEREST OF IMPORTERS  

(131)  Only  one  questionnaire  reply  was  received  from  the  unrelated  importers  concerning 
the imports from the PRC but this questionnaire was incomplete as the company was 
preparing to cease its operations for undisclosed reasons. 

(132)  It should be noted first of all that in view of the low level of cooperation of importers, 
it  was  impossible  to  make  a  proper  full  assessment  of  the  possible  effects  of 
imposition or non-imposition of measures. It should also be recalled that the purpose 
of  the  anti-dumping  measures  is  not  to  prevent  imports,  but  to  restore  fair  trade  and 

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ensure that imports are not made at injuriously dumped prices. As fairly priced imports 
will still be allowed to enter into the Union market, and as imports from third countries 
will  also  continue,  it  is  likely  that  the  traditional  business  of  importers  will  not  be 
substantially affected. It is also clear that the Union producers have sufficient capacity 
to supply a possible increase in demand of bicycles. Moreover, as seen from table in 
recital  (59),  imports  from  other  third  countries  indicate  that  there  is  a  substantial 
capacity  to  produce  bicycles  in  these  countries.  It  is  therefore  highly  unlikely  that  a 
shortage of bicycles would occur.  

(133)  As fairly-priced imports will still be allowed to enter into the Union market, it is likely 
that  the  traditional  business  of  the  importers  will  continue  even  if  anti-dumping 
measures against dumped imports are maintained on the PRC. The low cooperation by 
unrelated importers and the fact that after the imposition of measures on the PRC, the 
investigation  could  not  gather  any  evidence  of  importers  experiencing  particular 
difficulties, further underscores this conclusion. 

6. 

CONCLUSION  

(134)  The  continuation  of  measures  on  imports  of  bicycles  originating  in  the  PRC  would 
clearly be in the interest of the Union industry, the consumers and in the interest of the 
Union suppliers of bicycle parts. It will allow the Union industry to grow and improve 
its  situation  in  a  restored  fair  competition.  Furthermore,  the  importers  will  not  be 
substantially affected since fairly priced bicycles will still be available in the market. 
In  contrast,  if  measures  are  not  imposed,  Union  producers  of  bicycles  will  likely  go 
out of business, thus also threatening the existence of Union suppliers of bicycle parts. 

(135)  In  view  of  the  above,  it  is  concluded  that  there  are  no  compelling  reasons  not  to 
impose antidumping duties against imports of bicycles originating in the PRC.  

G. 

DEFINITIVE ANTI-DUMPING MEASURES 

(136)  In  the  light  of  the  foregoing,  the  anti-dumping  measures  on  bicycles  should  be 
maintained. In accordance with Article 11(2) of the basic Regulation the extension of 
the  measures  following  an  expiry  review  would  normally  apply  for  5  years,  unless 
there are specific grounds or circumstances which call for a shorter period of time. 

(137)  In  this  context,  it  should  be  noted  that  the  present  proceeding  is  characterised  by 
particular  circumstances  as  referred  to  in  recitals  (1)  and  (48),  which  should  also  be 
adequately  reflected  in  the  duration  of  the  anti-dumping  measures.  In  substance,  the 
Union industry is benefiting from an atypical set of measures which combine both ad 
valorem duties on finished bicycles as well as an exemption scheme which allows this 
industry  to  use  Chinese  bicycle  parts  free  of  anti-circumvention  duties  provided  that 
specific conditions are met. 

(138)  The current expiry review has confirmed the complexity of the bicycle sector and its 
close  interconnection  with  the  sector  of  bicycle  parts.  It  showed  that  the  Union 
industry of bicycles is using to a large extent, as shown in recital (1), the exemption 
scheme for imports of bicycle parts. It is therefore important that the functioning of the 
measures  is  regularly  re-examined.  On  these  grounds,  consideration  was  given  to 
whether the measures should be limited to 3 years. 

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(139)  After disclosure, several Union producers and their associations argued that measures 
should be extended for 5 years. The parties mainly argued that the bicycle producers 
were ready to make investments in the production of bicycle parts in order to reduce 
their dependence on imports of Chinese bicycle parts, but a period of 3 years was not 
sufficient to obtain a positive return on such investments.  

(140)  In  this  respect,  the  argument  that  several  parties  have  made  or  intend  to  make 
investments in the bicycles or the bicycle parts sector is not relevant when assessing 
the need and the duration of anti-dumping measures in the context of an expiry review. 
Indeed,  the  latter  can  only  be  based  on  the  determination  that  the  expiry  of  the 
measures  would  be  likely  to  lead  to  the  continuation  or  recurrence  of  dumping  and 
injury.  

(141)  As  already  explained  in  recital  (137)  above,  it  is  recalled  that  since  the  initial 
imposition  of  measures  in  1993  and  their  extension  to  bicycle  parts  in  1997,  the 
situation of bicycles production in the Union changed significantly as more than 250 
exemptions have been granted. Furthermore, measures on bicycles are directly linked 
to the measures extended to bicycle parts and to the exemption scheme system created. 
In  view  of  this,  the  conclusion  that  the  measures  would  warrant  reexamination  as 
established above on recital (138) still applies. In this respect, the Council notes that 
the  Commission  has  the  possibility  to  initiate  ex  officio  an  interim  review  covering 
dumping, injury as well as the exemption scheme aspects pursuant to Article 11(3) of 
the basic Regulation.  

(142)  On these grounds and in view of the fact that the period of measures would be, in any 
event, an issue in any review it is premature to assess in the framework of the current 
expiry  review  whether  there  are  specific  grounds  or  circumstances  which  call  for  a 
period of time different from the normal period of 5 years as specified in Article 11(2) 
of  the  basic  Regulation.  It  is  considered,  therefore,  that  the  measures  should  be 
prolonged for a period of 5 years. This is without prejudice to the fact that the duration 
of  the  current  anti-dumping  measures  may  be  revisited  in  a  subsequent  full  interim 
review, if any, depending on the findings 

H. FINAL PROVISIONS 

(143)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that the existing measures be maintained. They 
were  also  granted  a  period  to  submit  comments  subsequent  to  that  disclosure.  The 
submissions and comments were duly taken into consideration where warranted.  

It follows from the above that the anti-dumping duties should be maintained for 5 years. 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

A definitive anti-dumping duty is hereby imposed on imports of bicycles and other 
cycles  (including  delivery  tricycles,  but  excluding  unicycles),  not  motorised, 
currently falling within CN codes ex 8712 00 10 (TARIC code 8712 00 10 90), 8712 
00  30  and  ex  8712  00  80  (TARIC  code  8712  00  80  90)  and  originating  in  the 
People’s Republic of China. 

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2. 

3. 

The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net  free-at-Union-
frontier price, before duty, for the products described in paragraph 1 shall be 48,5%. 

Unless  otherwise  specified,  the  provisions  in  force  concerning  customs  duties  shall 
apply. 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. It shall be in force for a period of 5 years. 

Article 2 

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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