As of 18th July 2018 all e-bike categories (including pedelecs and tricycles) bought from China are subject to anti-dumping duties (ADD). This was at 83.6% but has subsequently been reduced to 62.1% with a countervailing duty (CVD) of 17.2%, both calculated on the cost for you to buy and import your e-bikes (unless your supplier has been allocated a reduced rate by the EU). If you’re importing these products, you need to know about anti-dumping duty on e-bikes.
This new measure from the European Union has been put in place following complaints from the European Bicycle Manufacturers Association. They alleged that the import of e-bikes from China, at a greatly reduced cost to that considered the market rate for buying e-bikes within the EU, would have drastic effects on European manufacturers.
The Regulation
When buying e-bikes from China you’ll be hit by anti-dumping duties of up to 62.1% and countervailing duties of 17.2% in addition to the standard import duty rating of 6%.
These are the tariff codes that are affected:
Products imported from some Chinese suppliers specified in the report from the EU have been allocated lower percentages of anti-dumping and countervailing duty percentages. To check whether your supplier’s products (or potential supplier’s products) are on the list to receive a reduced level of ADD you can check the linked regulation from the European Union (Scroll to the bottom, to the table in section 8. FINAL PROVISIONS, which along with the ANNEX, lists the suppliers).
Calculating The New Anti-Dumping Duty Costs On E Bikes
As these costs are going to hit importer’s bottom line pretty hard it’s important to get the calculations right.
First you’ll need to establish the cost of your goods, the cost for the shipping, the duty rate and the anti-dumping duty percentage. Let’s assume you’re buying your e-bikes for £2000, the shipping cost is £500, the UK duty rating is 6% and the anti-dumping and countervailing duty is at the worst case scenario of 62.1% and 17.2% respectively.
Here’s how you’d establish an estimate of your costs (the exact figures will be very slightly less due to… actually… let’s not make this more complicated than it already is!):
- First find the UK duty cost:
UK Duty = UK Duty Rating x (Purchase Cost + Freight Cost)
UK Duty = 6% of (£2000 + £500)
UK Duty = £150- Next establish your anti-dumping duty (ADD) and countervailing duty (CVD) costs
ADD = Anti-Dumping Rating x (Purchase Cost + Freight Cost)
ADD = 62.1% of (£2000 + £500)
ADD = £1552.50CVD = Countervailing Duty Rating x (Purchase Cost + Freight Cost)
CVD = 17.2% of (£2000 + £500)
CVD = £430.00- The final cost from HMRC will be the import VAT:
Import VAT = 20% of (Purchase Cost + Freight Cost + UK Duty + Anti-Dumping Duty + Countervailing Duty)
Import VAT = 20% of (£2000 + £500 + £150 + £1552.50 + £430)
Import VAT = £926.50… so your costs to buy and import these goods would be:
Purchase Cost : £2000
Freight Cost : £500
UK Duty : £150
Anti-Dumping Duty : £1552.50
Countervailing Duty : £430.00
Import VAT : £926.50We can certainly help you with these calculations for you. If you need any help, just give us a call or drop us the details at info@shippo.co.uk
Importers Forced To Rethink E Bike Imports
The cost to buy and import e-bikes from China has been pretty cheap over the past few years as no more than normal market forces put pressure on the cost to importers. Unfortunately, as the EU has decided, this way of buying e-bikes could have a damming effect on EU manufacturers and they’ve stepped in to stop it. Naturally, existing importers will be very disappointed as the cost to buy and import these products has doubled overnight. This will force them to rethink their businesses and product offerings.
This move by the EU to artificially increase the price to import a product, in a lot of peoples’ opinion, will be seen as unfair. We’ve spoken to importers who feel that not having the requirement for EU manufacturers to either improve their offering with a better quality product or to become more competitive to set themselves apart is counterproductive to businesses.
Whatever your view, this will have a major effect on anyone importing e-bikes from China.
Contact Shippo For More Information On Anti-Dumping Duty On E Bikes
We hope you found this post helpful. You may also find our general post on anti-dumping duties a helpful read.
If you need any more information on anti-dumping duty on e-bikes specifically or this new legislation, please feel free to contact us.
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