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5.6.2013 Official
Journal
of
the
European
Union L
153/17
COUNCIL REGULATION (EU) No 502/2013
of 29 May 2013
amending Implementing Regulation (EU) No 990/2011 imposing a definitive anti-dumping duty on
imports of bicycles originating in the People’s Republic of China following an interim review
pursuant to Article 11(3) of Regulation (EC) No 1225/2009
THE COUNCIL OF THE EUROPEAN UNION,
No 1524/2000 ( 5 ), decided that the abovementioned
measures should be maintained.
Having regard to the Treaty on the Functioning of the European
Union,
(3) Following
an
interim
review
pursuant
to
Article
11(3)
of
the basic Regulation (‘amending interim review’), the
Council, by Regulation (EC) No 1095/2005 ( 6 ), decided
to increase the anti-dumping duty in force to 48,5 %.
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 Community ( 1 )
(‘the basic Regulation’), and in particular Articles 9(4) and 11(3),
(4) Following
a
review
of
the
anti-circumvention
measures
(5) and (6) thereof,
pursuant to Article 13(4) and 11(3) of the basic Regu
lation, the Council, by Regulation (EC) No 171/2008 ( 7 ),
decided to maintain the extension of the anti-dumping
duty imposed on imports of bicycles originating in the
Having regard to the proposal submitted by the European
PRC to imports of certain bicycles parts from the PRC.
Commission after consulting the Advisory Committee,
Whereas:
(5) Following
an
expiry
review
pursuant
to
Article
11(2)
of
the basic Regulation, the Council, by Implementing Regu
lation (EU) No 990/2011 ( 8 ) (the ‘previous investigation’),
decided that the abovementioned measures should be
A. PROCEDURE
maintained.
1. Measures in force
(1) By
Regulation
(EEC)
No
2474/93
( 2 ) the Council imposed
2. Ex officio initiation
a definitive anti-dumping duty of 30,6 % on imports of
bicycles originating in the People’s Republic of China
(6) Following
the
expiry
review
concluded
in
October
2011,
(‘the PRC’ or ‘the country concerned’) (the ‘original inves
evidence at the disposal of the Commission indicated that
tigation’). Following an anti-circumvention investigation
as far as dumping and injury are concerned, the circum
in accordance with Article 13 of the basic Regulation,
stances on the basis of which the existing measures were
this duty was extended by Council Regulation (EC)
imposed might have changed and that these changes may
No 71/97 ( 3 ) to imports of certain bicycles parts orig
be of a lasting nature.
inating in the 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)
(7) The
prima
facie
evidence
at
the
Commission’s
disposal
No 88/97 ( 4 ). In order to receive an exemption from
indicated that the export quota system that applied to
the extended duty, bicycle producers in the Union have
bicycle producers in the PRC, and that hindered the
to respect the conditions of Article 13(2) of the basic
exporting producers in being granted market economy
Regulation, namely to respect a ratio of less than 60 % of
treatment in the amending interim review, had been
Chinese bicycle parts in their operation or the addition of
abolished in January 2011.
more than 25 % value to all parts brought into the oper
ation. To date, more than 250 exemptions have been
granted.
(8) Furthermore,
changes
to
the
structure
of
the
Union
industry have taken place. In particular, several Union
producers switched from the complete cycle of
(2) Following
an
expiry
review
pursuant
to
Article
11(2)
of
production to (partial) assembly operations using
the basic Regulation, the Council, by Regulation (EC)
imported parts.
( 1 ) OJ L 343, 22.12.2009, p. 51.
( 5 ) OJ L 175, 14.7.2000, p. 39.
( 2 ) OJ L 228, 9.9.1993, p. 1.
( 6 ) OJ L 183, 14.7.2005, p. 1.
( 3 ) OJ L 16, 18.1.1997, p. 55.
( 7 ) OJ L 55, 28.2.2008, p. 1.
( 4 ) OJ L 17, 21.1.1997, p. 17.
( 8 ) OJ L 261, 6.10.2011, p. 2.

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L 153/18
EN
Official Journal of the European Union
5.6.2013
(9) Moreover,
due
to
the
enlargements
of
the
European (15) In May 2013, the Council, by Regulation (EU) No
Union of 2004 and 2007, a significant number of
501/2013 ( 3 ) (the ‘anti-circumvention Regulation’),
producers joined the Union bicycle industry. In
extended the anti-dumping measures in force on
addition, several producers which had been part of the
imports of bicycles originating in the PRC to imports
Union industry before the two enlargement rounds
of bicycles consigned from Indonesia, Malaysia, Sri
moved their production facilities or set up new facilities
Lanka and Tunisia, whether declared as originating in
in the new Member States. As a result, the cost level of
Indonesia, Malaysia, Sri Lanka and Tunisia or not, as
the Union industry might have changed.
these imports were found to circumvent the measures
by transhipment and/or assembly operations within the
meaning of Article 13(1) and (2) of the basic Regulation.
(10) Finally,
the
present
injury
elimination
level
was
calculated
on the basis of bicycles made out of steel whereas it
appears that currently the majority of bicycles are made
4. Parallel anti-subsidy investigation
of aluminium alloys.
(16) On
27
April
2012,
the
Commission
announced
by
a
notice published in the Official Journal of the European
Union ( 4 ), the initiation of an anti-subsidy proceeding
with regard to imports into the Union of bicycles orig
inating in the PRC (‘anti-subsidy investigation’).
(11) All
these
developments
appeared
to
be
of
a
lasting
nature
and therefore substantiated the need to reassess the injury
and dumping findings.
(17) In
November
2012
the
Commission
announced
by
a
notice published in the Official Journal of the European
Union ( 5 ), that the findings in the anti-circumvention
(12) Moreover,
the
number
of
companies
benefiting
from
the
investigation may be used in the anti-subsidy investi
exemption scheme is rapidly growing, without the
gation mentioned in recitals 14 and 15.
scheme having been adapted since its introduction in
1997. In addition, the monitoring system of the
imports of parts exempted from the anti-dumping
measures has become highly complex and burdensome,
(18) In May 2013, the Commission, by Decision
which might endanger its effectiveness.
2013/227/EU ( 6 ), terminated the anti-subsidy investi
gation without imposing measures.
(13) Having determined, after consulting the Advisory
Committee, that sufficient prima facie evidence existed
5. Parties concerned by the investigation
for the initiation of an investigation pursuant to
Article 11(3) of the basic Regulation, the Commission
(19) The Commission officially notified known Union
announced by a notice (‘Notice of initiation’)
(
producers, known associations of Union producers, the

1 ),
published in the Official Journal of the European Union
known exporting producers in the PRC and an
on 9 March 2012, the initiation, on an ex officio basis,
association of Chinese producers, the representatives of
of an interim review of the anti-dumping measures
the country concerned, known importers and associ
applicable to imports of bicycles originating in the PRC.
ations of importers, known Union producers of bicycle
parts and their associations and known association of
users of the initiation of the investigation. Interested
parties were given the opportunity to make their views
known in writing and to request a hearing within the
3. Parallel anti-circumvention investigation
time limit set in the Notice of initiation.

(14) In 25 September 2012, by Regulation (EU)
No 875/2012 ( 2 ), the Commission initiated an investi
gation concerning the possible circumvention of anti-
(20) In view of the t high number of exporting producers,
dumping measures imposed by Implementing Regulation
Union producers and unrelated importers that was
(EU) No 990/2011 on imports of bicycles originating in
apparent, sampling was provided for in the Notice of
the PRC by imports of bicycles consigned from
initiation in accordance with Article 17 of the basic
Indonesia, Malaysia, Sri Lanka and Tunisia, whether
Regulation. In order to enable the Commission to
declared as originating in Indonesia, Malaysia, Sri Lanka
decide whether sampling would be necessary and if so,
and Tunisia or not, and making such imports subject to
registration (‘the anti-circumvention investigation’).
( 3 ) See page 1 of this Official Journal.
( 4 ) OJ C 122, 27.4.2012, p. 9.
( 1 ) OJ C 71, 9.3.2012, p. 10.
( 5 ) OJ C 346, 14.11.2012, p. 7.
( 2 ) OJ L 258, 26.9.2012, p. 21.
( 6 ) OJ L 136, 23.5.2013, p. 15.

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EN
5.6.2013 Official
Journal
of
the
European
Union L
153/19
to select samples, all exporting producers and their
(28) Replies
to
the
questionnaires
and
other
submissions
were
known association, all Union producers and unrelated
received from four groups of Chinese exporting
importers were asked to make themselves known to
producers and their representative, eight sampled Union
the Commission and to provide, as specified in the
producers, one association of users and eight associations
Notice of initiation, basic information on their activities
of the Union producers, 53 bicycle parts producers and
related to the product concerned during the period from
one association of producers of bicycle parts. None of
1 January 2011 to 31 December 2011.
the contacted unrelated importers submitted a ques
tionnaire reply.
(21) Since
the
representatives
of
the
country
concerned
did
(29) The
Commission
sought
and
verified
all
the
information
not come forward at initiation, the Commission
deemed necessary for a determination of dumping,
contacted about 70 Chinese companies already known
resulting injury, causality and Union interest and
to the Commission services from the previous investi
carried out verifications at the premises of the
gation. At a later stage, when the anti-subsidy investi
following companies:
gation mentioned in recital 16 was initiated, the
Commission identified around 300 additional Chinese
exporting producers that were contacted in the context
of this interim review as well.
(a) Producers of bicycles in the Union
— Accell Hunland, Hungary
— Decathlon RGVS, Portugal
(22) In
spite
of
the
Commission’s
efforts
to
obtain
cooper
ation, only eight Chinese groups of exporting producers
— Denver srl, Italy
came forward, out of which only four reported exports
to the Union in the review investigation period (‘RIP’)
— SC Eurosport DHS, Romania
defined in recital 37 below, representing less than 4 %
of the total imports from the PRC of bicycles in the RIP.
— Koninklijke Gazelle, Netherlands
— Maxcom Ltd, Bulgaria
— MIFA, Germany
(23) On the basis of the above it was decided that sampling
— Sprick Rowery, Poland
was not necessary for exporting producers in the PRC.
(b) Producers of bicycle parts in the Union
(24) As
stated
in
recitals
63
to
64
and
131
below,
for
one
— Chimsport, Romania
Chinese exporting group, Giant China, application of
Article 18(1) of the basic Regulation was warranted.
— Telai Olagnero, Italy
Consequently, the cooperation of the Chinese exporting
producers decreased even further.
(c) Exporting producers in the PRC
— Ideal (Dong Guan) Bike Co.,
(25) As explained in recitals 32 to 35 below, a sample of
Union producers was selected.
— Oyama Bicycles (Taicang) Co.,
— Zhejiang Baoguilai Vehicle Co..
(26) As
explained
in
recital
36
below,
it
was
decided
that
sampling was not necessary for unrelated importers.
(30) In
light
of
the
need
to
establish
a
normal
value
for
exporting producers in the PRC to which MET might
not be granted, a verification visit to establish normal
value on the basis of data from an analogue country
(27) The
Commission
sent
questionnaires
to
all
parties
known
took place at the premises of the following companies:
to be concerned and to all other parties that so requested
— Distribuidora de Bicicletas Benotto, S.A. DE C.V.,
within the deadlines set out in the Notice of initiation,
Mexico City, Mexico,
namely the sampled Union producers, the cooperating
exporting producers in the PRC, unrelated importers
— Bicicletas Magistroni, Mexico City, Mexico,
that made themselves known as described in recital 36
below and to the known producers of bicycle parts in the
— Bicicletas Mercurio SA DE CV, San Luis Potosi,
Union.
Mexico.

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L 153/20
EN
Official Journal of the European Union
5.6.2013
(31) Following
the
disclosure
of
essential
facts
and
consider
not be representative for the Union industry. Finally,
ations (‘the disclosure’) some parties argued that an
while the selected sample should be representative for
inadequate period was provided for the parties to
the Union industry, the companies selected do not
comment. In this respect it is noted that the parties
necessarily need to be homogeneous. The claim of this
were provided sufficient time to comment in accordance
party had to be therefore rejected.
with Article 20(5) of the basic Regulation. The comment
is therefore dismissed.
7. Sampling of Unrelated Importers
6. Sampling of Union Producers
(36) Sampling
of
unrelated
importers
was
also
provided
for
in
the Notice of Initiation. All known unrelated importers
(32) The
Commission
announced
in
the
Notice
of
initiation
were contacted upon initiation. Given the small number
that it had provisionally selected a sample of Union
of replies received in the framework of the sampling
producers. This sample consisted of eight companies,
exercise, no sample was selected. All unrelated
out of over 380 Union producers that were known
importers that came forward were invited to cooperate
prior to the initiation of the investigation, selected in
and received a questionnaire. None of the unrelated
particular on the basis of the largest representative
importers provided a questionnaire reply, nor did they
volume of production and sales that can reasonably be
cooperate further in the present investigation.
investigated within the time available taking into account
the geographical spread. The sample covered the largest
producing countries ranked according to the production
volumes. For each of these countries, the companies
included in the sample were among the largest represen
8. Investigation period
tative cooperating producers. The sample also captured
entities from the largest cooperating groups. Particular
(37) The
investigation
of
dumping
and
injury
covered
the
attention was given in this case to sampling an equal
period from 1 January 2011 to 31 December 2011
number of companies from the old and the new
(the ‘review investigation period’ or ‘RIP’). The exam
Member States.
ination of trends in the context of the analysis of
injury covered the period from January 2008 to the
end of the RIP (the ‘period considered’).
(33) The sample represented around 25
% of the total
estimated Union production and sales during the RIP.
Interested parties were invited to consult the file and to
B. PRODUCT CONCERNED AND LIKE PRODUCT
comment on the appropriateness of this choice within
15 days of the date of publication of the Notice of
1. Product concerned
initiation. All interested parties, who so requested and
showed that there were particular reasons why they
(38) The product subject to this review investigation is
should be heard, were granted a hearing.
bicycles and other cycles (including delivery tricycles
but excluding unicycles), not motorised (‘the product
under review’) originating in the PRC, currently falling
within CN codes 8712 00 30 and ex 8712 00 70.
(34) Certain
interested
parties
raised
objections
concerning
the
sampling of Union producers. They claimed that: (i) the
provisional sample included only certain legal entities
pertaining to groups of related companies rather than
(39) As
in
the
previous
investigation,
the
bicycles
were
clas
all legal entities making up the full economic entity
sified in the following categories:
producing the product at issue; and (ii) the proposal
included a company that has been recently operating at
— (A) ATB (al-terrain bicycles including mountain
a loss, whereas the Union producers were thriving during
bicycles 24″ or 26″),
that period. In addition, it was claimed that these losses
were not linked to the product concerned.
— (B) trekking/city/hybrid/VTC/touring bicycles 26″ or
28″,
— (C) junior action (BMX) and children’s bicycles 16″ or
20″,
(35) These arguments were dismissed on the following
grounds: (i) The entities belonging to larger groups that
— (D) other bicycles/cycles (excluding unicycles).
were found to operate independently from other
subsidiaries of the same group were considered represen
tative of the Union industry and there was therefore no
need to investigate the entire group on a consolidated
basis. (ii) The interested party concerned did not
(40) All
types
of
bicycles
as
defined
above
have
the
same
substantiate its claim that the company selected in the
basic physical and technical characteristics. Furthermore,
sample and which allegedly realised losses would indeed
they are sold through similar distribution channels such

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EN
5.6.2013 Official
Journal
of
the
European
Union L
153/21
as specialised retailers, sport chains and mass merchan
different categories are in principal intended to meet
disers on the Union market. The basic application and
different end users requirements, end-users will
use of bicycles being identical, they are largely inter
regularly put a bicycle in a particular category to a
changeable and models from different categories
variety of uses.
therefore compete with each other. On this basis, it
was concluded that all the categories form one single
product.
(47) There
are
consequently
no
clear
dividing
lines
based
on
end-users’ use and consumers’ perceptions of different
categories.
(41) One
party
argued
that
the
different
types
of
bicycles
have
significantly different characteristics and intended uses
and also significantly different prices, while from the
(48) Furthermore,
Union
producers
themselves
often
make
no
consumers’ perspective these different types of bicycle
distinction among the bicycles classified in different
are not interchangeable. Furthermore, it was argued
categories with regard to production, distribution and
that steel and aluminium bicycles are not considered
accounting. Indeed, they often have a similar manufac
interchangeable and that their prices are different as well.
turing process for all categories of bicycles.
(42) In
support
of
its
argument,
the
party
submitted
a
study
(49) In addition, the bicycles in the various categories are sold
about the basic physical and technical characteristics and
through similar distribution channels such as specialised
uses of five different product types as well as their inter
retailers, sport chains and mass merchandisers on the
changeability. It should be noted that the study was
Union market.
allegedly based on the replies of 36 individuals,
however it is not clear how the respondents have been
chosen. It seems furthermore that it was prepared
specifically for the current investigation. The study does
(50) On
this
basis,
it
was
concluded
that
all
the
categories
form one single product.
not include any quantifiable data. It is noted that the

content of this study is apparently based on statements
of customers and/or bicycles producers rather than
verifiable evidence. Therefore, the representativity of the
(51) One
party
raised
the
point
that
the
current
investigation
results of this study is questionable.
covers two CN codes as stated in recital 38 while the
previous investigation stated in recital 5 covered three
CN codes, i.e. ex 8712 00 10, 8712 00 30 and
ex 8712 00 80. In this regard, it is noted that the
(43) The
party
has
not
brought
any
other
evidence
in
support
changing of the codes was due to amendments to the
of its claim.
Combined Nomenclature imposed by Commission Regu
lation (EU) No 1006/2011 with effect as from 1 January
2012 ( 1 ).
(44) The
investigation
has
confirmed
that
all
types
of
bicycles,
as defined above, have the same basic physical and
(52) In
this
context,
the
party
claimed
that
bicycles
without
technical characteristics. In particular, it was found that
ball bearings should not be considered a single product
the use of different raw materials did not have an impact
with the bicycles with ball bearings. However, the inves
on the basic characteristics of a bicycle. Although steel
tigation showed that bicycles with ball bearings and
and aluminium have some different technical properties
bicycles without ball bearing share the same technical
like weight, the basic characteristics of the bicycles made
characteristics and uses. Furthermore, the party has not
of steel and aluminium remain similar.
substantiated its claim with any supporting evidence and
therefore, the claim is rejected.
(45) Likewise,
there
was
no
specific
evidence
provided
by
the
(53) Moreover,
the
party
argued
that
there
is
a
significant
party that bicycles made of steel on one hand and those
difference in the average import prices as recorded in
made of aluminium on the other hand had indeed
Eurostat between the two CN codes covering the
different basic physical and technical characteristics.
product concerned. In this regards, it is highlighted that
as stated in recital 157 below due to the product mix,
the average price as recorded in Eurostat can only serve
as an indicator of price trends, but is not useful when
(46) Regarding
the
specific
application,
use
and
consumer
comparing sales prices between various countries and the
perception, the current investigation has confirmed that
Union.
all bicycles have the same basic applications and perform
essentially the same function. While it is true that
( 1 ) OJ L 282, 28.10.2011, p. 1.

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L 153/22
EN
Official Journal of the European Union
5.6.2013
(54) After
the
disclosure
one
party
reiterated
its
claim
that
the
the Union bicycles with a wheel size of 12 inch which
different types of bicycles covered by the scope of this
were not considered necessarily bicycles for children but
investigation are not like products and claimed that it
they were actually folding bicycles used by adults for
had submitted positive evidence in support of the
which storage was an important feature of the bicycles.
differences in raw materials, physical characteristics, tech
nological features, end-uses that allegedly exist among
the different type of bicycles.
(58) Therefore
the
request
to
exclude
bicycles
with
a
size
of
wheel less than and including 16 inch from the product
scope of the investigation is rejected.
(55) In
this
respect,
it
should
be
noted
that
the
positive
evidence that the party claims to have submitted is
actually the study assessed by the Commission in
recital 42. After due assessment, the Commission
2. Like product
concluded that the representativity of the results of this
(59) Bicycles
produced
and
sold
by
the
Union
industry
on
the
study was questionable for the reasons mentioned in
Union market, those produced and sold on the analogue
recital 42.
country market and those imported into the Union
market originating in the PRC have the same basic
physical and technical characteristics and the same uses
and are, therefore, considered to be alike within the
meaning of Article 1(4) of the basic Regulation.
(56) The
parties
claimed
that
children’s
bicycles
defined
by
the
party as bicycles with a size of wheel less than and
including 16 inch should be excluded from the product
scope of the investigation. These claims were based on
the assumption that in particular duration of uses and
C. DUMPING
simplicity in characteristics clearly divided these bicycles
1. Market Economy Treatment
from other types of bicycles falling within the scope of
the current investigation.
1.1. MET assessment
(60) Pursuant
to
Article
2(7)(b)
of
the
basic
Regulation,
in
anti-dumping investigations concerning imports orig
inating in the PRC, normal value shall be determined
(57) However, these claims were deemed insufficient to
in accordance with paragraphs 1 to 6 of the said
exclude bicycles with a size of wheel less than and
Article for those producers which were found to meet
including 16 inch from the definition of the product
the criteria laid down in Article 2(7)(c) of the basic
concerned because they were not substantiated with
Regulation. Briefly and for ease of reference only, these
sufficient evidence showing that in this investigation a
criteria are set out in summarised form below:
clear dividing line could be drawn between bicycles
with a size of wheel less than and including 16 inch
— Business decisions are made in response to market
and other bicycles types within the scope of the investi
signals, without significant State interference, and
gation. In fact, to the contrary it was found that the
costs reflect market values,
essential physical and technical characteristics of the
bicycles with a size of wheel less than and including
— Firms have one clear set of basic accounting records,
16 inch which were common to those of the product
which are independently audited in line with inter
concerned — a human-powered, pedal-driven vehicle
national accounting standards (IAS) and are applied
having more than one wheel attached to a frame —
for all purposes,
were much more important than any differences (i.e.
essentially size of the wheel). Furthermore, it appeared
— There are no significant distortions carried over from
that production, sales channels and consumer service
the former non-market economy system,
were not fundamentally different from other bicycle
types under investigation. Just the mere fact that
bicycles with a size of wheel less than and including
— Bankruptcy and Property laws guarantee stability and
16 inch form a distinctive product sub-group within
legal certainty, and
the scope of the product concerned does not warrant
the exclusion from the product scope. Indeed, it was
— Exchange rate conversions are carried out at market
found that there is no clear dividing line between
rates.
bicycles with a size of wheel less than and including
16 inch and the product concerned, but that there is
rather a large overlap regarding the definition of the
product concerned, notably that it is a human-powered,
(61) In
the
present
investigation,
all
exporting
groups
that
pedal-driven vehicle having more than one wheel used
initially cooperated with the investigation requested
essentially for transportation and spot. In this regard, the
MET pursuant to Article 2(7)(b) of the basic Regulation
investigation revealed that one of the cooperating
and replied to the MET claim form within the given
Chinese exporting producers was actually exporting to
deadlines.

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EN
5.6.2013 Official
Journal
of
the
European
Union L
153/23
(62) For all exporting groups that initially cooperated with the
prices which do not reflect the market value at the SHFE:
investigation, the Commission sought all information
daily price fluctuations are limited to 4 % above or below
deemed necessary and verified information submitted in
the settlement price of the previous trading day, trading
the MET claim at the premises of the groups in question.
happens at a low frequency (until the 15th day of each
month), futures contracts are limited to a duration of up
to 12 months, and transaction fees are charged by both
the Exchange and brokers.
(63) The
reply
of
one
group,
Giant
China,
was
considered
as
being significantly deficient as it did not include all the
required information on the structure of the group,
notwithstanding the Commission’s efforts to obtain the
(69) Moreover, as concerns SHFE transactions, physical
necessary information from the group.
deliveries can only take place in an approved
warehouse within the PRC, unlike international
exchanges, where delivery can take place worldwide.
Moreover, as the SHFE is a platform for physical
(64) As
required
by
Article
18(1)
of
the
basic
Regulation,
exchanges only (no derivatives are sold), this completely
Giant China was informed of the likely application of
insulates the Chinese aluminium market. As a
facts available to it and invited to provide comments.
consequence, arbitrage with the worldwide benchmark,
As Giant China, however, refused to provide the
the London Metals Exchange (‘LME’) or other markets
Commission with the necessary information, Article 18(1)
is practically not possible and the exchange works in
of the basic Regulation was applied and the claim for
isolation from other world markets. Therefore, an
MET was rejected.
arbitrage among these markets cannot take place.
During the RIP primary aluminium prices were around
7 % lower on the SHFE (excluding VAT) as compared to
the LME (also excluding VAT), compared on a spot price
basis.
(65) Furthermore,
the
investigation
revealed
that
MET
could
not be granted to any of the Chinese company groups as
none of them fulfilled all the criteria set out in
Article 2(7)(c) of the basic Regulation, for the following
reasons:
(70) The
State
also
interferes
with
the
price
setting
mech
anisms in the SHFE as it is both a seller and a purchaser,
via the State Reserve Bureau and other State Bodies, of
primary aluminium. In addition, the State sets daily price
limits via the rules of the SHFE which have been
C r i t e r i o n 1
approved by the State Regulator, the China Securities
Regulatory Commission (‘the CSRC’).
(66) All
cooperating
exporting
groups
failed
to
demonstrate
that they fulfil Criterion 1 because of State interference in
decisions concerning the main raw materials (steel &
aluminium). The cost of steel and aluminium for the
cooperating exporting groups represents at least around
(71) The
PRC
supports
the
processing
of
aluminium
products
20 % to 25 % of the cost of production of the product
by granting a partial VAT refund on the export of many
concerned. Many companies are fully vertically inte
aluminium products (for bicycles, the rate is 15 %); in
grated, meaning that they purchase the aluminium
case of exports of primary aluminium instead, there is no
ingots or steel to produce tubes which then are used
refund. This is an incentive for Chinese industry to
to produce frames/forks and finally the bicycles.
further process aluminium and has a direct bearing on
the availability and price of primary aluminium on the
domestic market. In addition, the investigation demon
strated that primary aluminium for export is subject to a
(67) The investigation demonstrated that the three
17 % tax, while no export tax is applied on exports of
cooperating Chinese groups of exporting producers
bicycles. This strengthens the finding of interference of
acquired the steel and aluminium used for the production
the Chinese State on the domestic market of aluminium.
of the product concerned on the Chinese domestic
These tools have a downward impact on domestic prices
market.
encouraging domestic industry to manufacture finished
goods incorporating aluminium (such as the product
concerned) for both the domestic and export markets.
(68) Prices
are
based
on
the
quotation
of
aluminium
in
the
State-controlled Shanghai Non-ferrous Metal Exchange
market (‘the Exchange’ or ‘SHFE’). The SHFE is a closed
(72) A further distortion by the Chinese State is in the form
exchange for Chinese-registered companies and Chinese
of interventions in the market by the State Reserves
citizens and it is controlled by the State Securities Regu
Bureau (‘SRB’) which is part of the National Development
latory Commission. Several rules governing the func
Reform Commission (‘NDRC’). At the end of 2008 and
tioning of the Exchange contribute to low volatility and
the beginning of 2009 the SRB started buying up stocks

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L 153/24
EN
Official Journal of the European Union
5.6.2013
of primary aluminium from Chinese aluminium smelters,
(77) The
State also exercises significant control over the
in order to stimulate the price of the commodity. The
market of raw materials. Coke (together with iron ore
SRB sold primary aluminium back onto the market such
the major raw material to produce steel) is subject to
as at the start of November 2010 as reported by Bloom
quantitative restrictions on exports and to an export
berg ( 1 ). The Xinhua News Agency reported the stock
duty of 40 %. It may therefore be concluded that the
piling measures in December 2008, explaining that it
Chinese steel market is distorted due to significant
was planned to accumulate 300
000 tonnes of
State interference.
aluminium at prices which were 10 % higher than the
market price in a measure designed to prop up prices ( 2 ).
The SRB stockpiling plan involved buying from several
Chinese smelters although around half was to be bought
from the Aluminium Corporation of China Ltd The
above demonstrates that the Chinese State has a
(78) An anti-dumping investigation which has been
primary role in the setting of prices of primary
conducted by the Commission
( 3 ), confirmed the
aluminium and that it interferes in the market.
importance of the State intervention also in the specific
sector of pipes and tubes, which are the main raw
material used for the production of steel bicycles.
(73) That
the
significant
State
interference,
as
described
above,
is clearly targeted is, inter alia, corroborated by the 12th
5 Year Development Plan for Aluminium (2011-2015) in
which the Government of the PRC explicitly states its
(79) It
was
therefore
concluded
that
the
Chinese
steel
market
intention of ‘adjusting tax and export tax rebates and
is distorted due to significant intervention of the State.
other economic levers, and strictly control the total
amount of expansion and exports of primary products’.
This plan continues the policy which existed in the
previous Aluminium Plan. Furthermore these plans have
been implemented over many years and, as demonstrated
above, during the RIP several implementing measures
(80) Under
such
circumstances,
neither
of
the
companies
has
were in operation.
been in a position to prove that their business decisions

regarding acquisition of raw materials are not subject to
significant State interference and that costs of major
inputs substantially reflect market values. Therefore,
they could not demonstrate that they fulfil criterion 1.
(74) Thus, the multiple State-induced distortions in the
Chinese primary aluminium prices affect the raw
material prices. In addition, the producers enjoy an
advantage from these distortions, in the sense that they
normally make their purchases in the Chinese market
from local suppliers using Chinese spot markets prices
(81) Concerning the other four criteria, the three cooperating
(or SHFE) as a benchmark. During the RIP, these prices
Chinese exporting producers were able to demonstrate
were around 7 % lower than the world market prices. In
that they met the remaining criteria.
theory, Chinese companies can also buy certain quantities
at LME prices when prices in the Chinese market are
higher as a result of State intervention — whilst the
opposite is impossible for non-Chinese operators.
(82) In
view
of
the
above
findings
on
criterion
1,
it
was
considered, after consultation of the Advisory
Committee, that MET should be rejected for the three
(75) It
was
therefore
concluded
that
the
Chinese
aluminium
cooperating Chinese group of exporting producers.
market is distorted due to significant intervention of the
State.
(83) The
Commission
officially
disclosed
the
results
of
the
(76) Interference by the Chinese State in the steel sector is
MET findings to the companies concerned in the PRC
demonstrated by the fact that a large majority of the
and to the complainant. They were also given an oppor
large Chinese steel producers are State-owned and steel
tunity to make their views known in writing and to
installed capacity and output are influenced by the
request a hearing if there were particular reasons to be
various five-year Industrial Plans, in particular the
heard.
current 12th Five-Year Plan (2011-2015) for the iron
and steel sector.
( 3 ) Commission Regulation (EU) No 627/2011 imposing provisional
anti-dumping duties (OJ L 169, 29.6.2011, p. 1) and Council Imple
( 1 ) www.bloomberg.com
menting Regulation (EU) No 1331/2011, imposing definitive anti-
( 2 ) http://news.xinhuanet.com/english/2008-12/26/content_10564812.
dumping duties on imports of seamless pipes and tubes from the
htm
People’s Republic of China (OJ L 336, 20.12.2011, p. 6).

---

EN
5.6.2013 Official
Journal
of
the
European
Union L
153/25
1.2. Comments of the parties
price difference for aluminium alloy extractions between
the respective markets, and that factors such as
(84) Following
the
MET
disclosure,
one
company
argued
that
production efficiency, residual capacity, and cost of envi
the refusal to grant MET is based on the Chinese bicycle
ronmental obligations need to be taken into account.
industry as a whole, rather than on an individual
company basis. In this respect it is noted that although
the Commission made an assessment of the steel and
aluminium sectors in China, there is a clear link
between the steel and aluminium markets in the PRC
(90) In
this
respect,
it
is
highlighted
that
no
evidence
was
and the purchases of steel and aluminium products as
submitted in support of this allegation. In the absence
a raw material by the cooperating groups.
of supporting evidence, the Commission was not in the
position to analyse and verify this allegation, which was
therefore rejected.
(85) Moreover
it
was
argued
that
the
cost
advantage
for
the
Chinese bicycle producers concerning steel and
(91) In
addition,
it
was
claimed
that,
by
ignoring
the
fact
that
aluminium is insignificant as it represents only between
there are a number of subsequent intermediary products,
1,4 % and 1,75 % when considering that primary
the Commission ignored the actual characteristics and
aluminium and steel account for 20 %-25 % of the
factors for pricing the bicycle finish products. In
manufacturing cost of bicycles and that the price
particular, as the bicycle is sold directly to the end-
difference between LME and SHFE prices was 7 %
consumer (unlike the primary aluminium), other factors
during the RIP.
than the price of the raw material determine the price of
the bicycles such as the specific technical features of the
bicycle and the demand of the consumers.
(86) In this respect it is highlighted that the pivotal factor in
the analysis is the proportion of the raw material in the
(92) However, no concrete details were provided on these
manufacturing cost (which in this case was significant as
characteristics and factors that should be taken into
it accounted for at least 20 %-25 % of the manufacturing
consideration and therefore it was not possible for the
costs) and the fact that the raw material market is
Commission to comment on them.
distorted in the PRC. The exact quantitative impact of
the distortion in the company’s cost is not considered
as a decisive factor.
(93) It
was
further
alleged
that
the
Commission made
a
wrong assessment of the principles under which the
SHFE operates. It was argued that the CSRC regulates
SHFE functions similarly to, among others, the Autorité
(87) Furthermore,
it
was
argued
that
in
another
investigation
des marchés financiers (‘AMF’) in France or the Financial
the Commission has analysed the prices of the direct raw
Services Authority (‘FSA’) in UK and that CSRC’s role and
materials used in the manufacturing of the product
specific regulatory/supervision measures are consistent
concerned rather than the price of the primary raw
with the G-20 principles. As a consequence the MET
material and, therefore, in the current case, the
conclusions that are based on the role of the CSRC
Commission should have assessed the State interference
and operation of the SHFE are without merit.
in prices of direct raw material, i.e. aluminium alloy
extrusion, rather than in the primary aluminium which
is the primary raw material.
(94) It
is
noted
that
the
company
failed
to
take
into
account
the fact that while FSA ( 1 ) and AMF ( 2 ) are independent
non-governmental bodies, CSRC is a ministry level unit
operating directly under the State Council ( 3 ). The State
(88) In
this
respect
it
is
noted
that
each
investigation
is
Council is the highest executive organ of State power, as
analysed on its own merits. Moreover, the fact that the
well as the highest organ of State administration ( 4 ). This
market of primary aluminium is controlled by the State
is another example of the fact that the State is actively
indicates that the market of intermediary aluminium
involved in the regulation of the aluminium market in
products also does not operate under market economy
the PRC. As concerns the compliance to G-20 principles,
conditions, i.e. responding to supply and demand. The
the company merely provided a statement, without really
claim was therefore rejected.
explaining the principles to which it referred. The
argument was therefore rejected.
( 1 ) http://www.fsa.gov.uk/about/who
( 2 ) http://www.amf-france.org/affiche_page.asp?urldoc=lesmissionsamf.
htm&lang=en&Id_Tab=0
(89) It
was
also
argued
that
any
price
difference
for
primary
( 3 ) http://www.csrc.gov.cn/pub/csrc_en/about/
aluminium between SHFE and LME may not lead to a
( 4 ) http://english.gov.cn/links/statecouncil.htm

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L 153/26
EN
Official Journal of the European Union
5.6.2013
(95) Moreover,
one
company
disagreed
with
the
Commis
that the industrial policy in the PRC has any direct or
sion’s assessment that arbitrage between the worldwide
significant impact on the input decisions, bicycles
benchmark, the LME, or other markets and SHFE prices
production or sales operation of the Chinese bicycles
is practically not possible and that therefore SHFE works
exporting producers.
in isolation from other world markets.
(103) In this respect it is noted that it was not specified to
(96) It
is
noted
that
this
contradicts
the
company’s
acceptance
which EU policies the company was referring and
of the price difference between the SHFE and the LME
therefore the Commission cannot comment on this alle
during the period when the SHFE price was higher than
gation. In addition, concerning the statement that it has
LME prices by arguing that during that period of time the
not been demonstrated that the industrial policy in the
Chinese producers paid more for the aluminium products
PRC has a significant impact on the input decisions,
than the Union producers.
production or sales of the Chinese exporting producers
of bicycles, it is noted that the existence of a 5-year Plan
in the Aluminium sector in the PRC, the distortions of
the aluminium price which is traded on an isolated
(97) Furthermore,
the
company
argued
that
as
from
2010
the
Exchange when aluminium represents 20-25 % of the
SHFE started to allow aluminium physical delivery to
total manufacturing costs of a bicycle, indicate a clear
bonded warehouses in Shanghai’s free trade zone. It
link between the industrial policy in the PRC and the
follows that this statement does not contradict, but
input decisions, production and sales of the Chinese
rather confirms the Commission’s assessment that
exporting producers of bicycles.
physical deliveries can take place only in a warehouse
within the PRC which has been approved by the SHFE,
unlike international exchanges, where delivery can take
place worldwide.
(104) It was also argued that the Commission breached the
three-month deadline specified in the basic Regulation.
In this respect it is noted that due to the fact that the
cooperation of the Chinese exporters was very low, the
(98) It
was
also
argued
that
the
SHFE
is
a
futures
market
and
Commission made extra efforts to obtain more
aluminium futures contracts have been traded on the
cooperation by contacting a large number of additional
SHFE since 1991 and therefore the Commission’s
exporters that were identified later in the investigation.
assessment that no derivatives are sold on the SHFE is
As a result, it was not possible to make the MET deter
wrong.
mination within the stipulated period. Moreover, it is
recalled that the General Court ( 1 ) has recently held that
a MET determination made outside the three month
deadline laid down in Article 2(7)(c) of the basic Regu
(99) Indeed
the SHFE is a futures market. However,
the
lation is not in itself sufficient to lead to an annulment of
futures contracts traded on SHFE are settled by physical
a regulation imposing anti-dumping measures. It is also
delivery. Derivatives products without physical delivery,
noted that Article 2(7) of the basic Regulation has
i.e. not actually exercised but traded before their delivery
meanwhile been amended with the effect that the
date, are limited in the PRC and therefore the SHFE is
Commission shall only make MET determinations in
merely a platform for physical exchanges which insulates
respect of companies included in a sample and that
the Chinese aluminium market.
such a determination shall normally be made within
seven months of, but in any event not later than eight
months after the initiation of the investigation ( 2 ). This
amendment is applicable to all new and pending inves
(100) It was also argued that the Commission’s reasoning
tigations, including the present one. The determinations
relating to the effects on bicycle pricing of the VAT/tax
were made within eight months from the date of the
measures and inventory measures relating to primary
initiation.
aluminium are economically dubious and insufficiently
reasoned.
(105) In view of the above, the claim relating to breach of the
three month deadline is herewith rejected.
(101) However, since the company did not explain which
elements the Commission is missing in its analysis, nor
did it further substantiate this claim, it was not possible
( 1 ) General Court judgment of 18 September 2012 in case T-156/11,
Since Hardware (Guangzhou) Co., Ltd v. Council, paragraph 167
for the Commission to comment.
(not yet published) and General Court judgment of 10 October
2012 in case T-150/09 Ningbo Yonghong Fasteners Co., Ltd v.
Council, paragraph 53 (not yet published).
( 2 ) Regulation (EU) No 1168/2012 of the European Parliament and of
the Council of 12 December 2012 amending Council Regulation
(102) Furthermore, it was argued that there are similarities
(EC) No 1225/2009 on protection against dumped imports from
between the industrial policy in the PRC and the EU
countries not members of the European Community (OJ L 344,
policies and that the Commission has not demonstrated
14.12.2012, p. 1).

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EN
5.6.2013 Official
Journal
of
the
European
Union L
153/27
1.3. Request of parties
shall be constructed for producers of the concerned
country in the case that they did not export any
(106) One party requested that Market Economy Treatment
quantity to the Union. On the contrary, Article 2(9) of
(‘MET’) claims of producers in the PRC which stopped
the basic Regulation refers to the re-sales price of the
exporting to the Union should also be analysed. It was
imported product as a basis to construct the export
alleged that those producers only stopped exporting to
price, and to adjustments for all costs incurred between
the Union due to the anti-dumping duties in place since
importation and resale, which implies that imports to the
2005.
Union were in fact made. The ‘any other reasonable basis’
in the first sentence of this provision refers to specific
cases where the preceding methodologies mentioned
therein cannot be applied. It does not detract from the
(107) In this regard it is highlighted that the findings with
fact that the Article implies that imports into the Union
regard to dumping and injury relate to the review inves
have taken place during the RIP.
tigation period (‘RIP’) fixed in accordance with the
Article 6(1) of the basic Regulation. This means that
data collected from the exporting producers in view of
establishing normal value and the export price also
strictly relate only to that period. The MET analysis is
1.4. Conclusion
carried out in the context of determining normal value of
exporting producers in the PRC which is then compared
(112) On the basis of the above, none of the Chinese groups
to the export price during the same period. If a producer
that had requested MET could show that they fulfilled the
did not export the product concerned during the RIP, no
criteria set out in Article 2(7)(c) of the basic Regulation.
export price can be established and no dumping margin
It was therefore considered that MET should be rejected
can be calculated. Therefore, there is no reason to
for all these groups.
examine MET for a producer which did not export the
product concerned during the RIP. Nevertheless, it is
recalled that all exporting producers have the possibility
to request an ‘interim review’ to have their situation
revised pursuant to Article 11(3) of the basic Regulation
2. Individual Treatment
or, those exporting producers who have not exported the
product concerned during the period of investigation on
(113) By Regulation (EU) No 765/2012 ( 2 ), which entered into
which the measures were based, have the possibility to
force on 6 September 2012, the European Parliament
request a ‘new exporter review’ pursuant to Article 11(4)
and the Council amended Article 9(5) of the basic Regu
of the same Regulation.
lation. Article 2 of Regulation (EU) No 765/2012
stipulated that the amendment is only to apply to inves
tigations initiated following its entry into force.
Consequently, as the current investigation was initiated
on 9 March 2012, the amendment did not apply to the
(108) Moreover, in its request, the party also mentioned the
Brosmann Judgement (
current investigation.

1 ) of the Court and seemed to
imply that on that basis, producers in the PRC should
be allowed to submit MET claim forms even if they did
not export the product concerned to the Union during
the current investigation period. It is noted that the
judgement does not address the situation of MET
(114) Pursuant to Article 2(7)(a) of the basic Regulation a
claims by exporting producers who did not export
countrywide duty, if any, is established for countries
during the investigation period and is therefore not
falling under Article 2(7) of the basic Regulation,
relevant in the present context.
except in those cases where companies are able to
demonstrate, in accordance with Article 9(5) of the
basic Regulation, that their export prices and quantities
as well as the conditions and terms of the sales are freely
determined, that exchange rates are carried out at market
(109) Consequently, the request was rejected.
rates, and that any State interference is not such as to
permit circumvention of measures if exporters are given
different rates of duty.
(110) It was also argued that export prices for the companies
without exports to the Union in the RIP should be
determined on the basis of Article 2(9) of the basic
Regulation, i.e. on any other reasonable basis.
(115) The three cooperating exporting groups which requested
MET also claimed individual treatment in the event that
they would not be granted MET. On the basis of the
information available, it is established that all three
(111) In this regard it is noted that Article 2(9) of the basic
groups in the PRC meet all the requirements for indi
Regulation does not positively imply that an export price
vidual treatment.
( 1 ) Case C-249/10 P.
( 2 ) OJ L 237, 3.9.2012, p. 1.

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L 153/28
EN
Official Journal of the European Union
5.6.2013
3. Normal Value
be representative and competitive. It was therefore
concluded that Mexico was an appropriate analogue
3.1. Analogue country
country.
(116) According to Article 2(7)(a) of the basic Regulation,
normal value for the exporting producers not granted
MET has to be established on the basis of the domestic
prices or constructed normal value in an analogue
3.2. Determination of normal value in the analogue country
country.
(123) Pursuant to Article 2(7)(a) of the basic Regulation,
normal value was established on the basis of verified
information received from the producers in the
analogue country as set out below.
(117) For this purpose, in the Notice of initiation the
Commission suggested Mexico, which was also the
analogue country used in the previous investigation
concerning the PRC.
(124) The investigation showed that the product concerned was
sold in representative quantities on the Mexican domestic
market.
(118) All interested parties were given the opportunity to
comment on the choice of analogue country envisaged.
(125) Furthermore, it was analysed whether it could be
considered as being sold in the ordinary course of
trade pursuant to Article 2(4) of the basic Regulation.
This was done by establishing for each product type
(119) One party argued that Mexico did not represent the best
the proportion of profitable sales to independent
choice of analogue country, but that Taiwan was a better
customers on the domestic market during the RIP.
option due to the fact that Taiwan is a major producer of
bicycles, had greater commonality with the PRC than
Mexico and is likely to result in a more reliable normal
value.
(126) Where sales volume of a product type, sold at net sales
price equal to or above the calculated cost of production,
represented more than 80 % of the total sales volume of
that type, and where the weighted average price of that
(120) The Commission tried to obtain cooperation from 15
type was equal to or above the cost of production,
countries, namely Bangladesh, Canada, Cambodia, India,
normal value was based on the actual domestic price.
Indonesia, Malaysia, Mexico, Norway, Philippines, Sri
This price was calculated as a weighted average of the
Lanka, Taiwan, Thailand, Tunisia, Turkey and USA.
prices of all domestic sales of that type made during the
RIP, irrespective of whether the sales were profitable or
not.
(121) The Commission received replies to the questionnaire
only from three Mexican producers of bicycles which
(127) Where the volume of profitable sales of a product type
also accepted a verification of their response at their
represent 80 % or less of the total sales volume of that
premises. No other companies from any contacted
type, or where the weighted average price of that type
countries cooperated. These three producers had
was below the cost of production, normal value was
domestic sales representing more than 30 % of the
based on the actual domestic price, calculated as a
Mexican market, which was estimated at about 1,7
weighted average of profitable sales of that type only.
million units in 2011. More than 14 producers and
several importers were found to operate in a competitive
environment. The imports of bicycles in 2011 were orig
inating principally in the PRC (more than 60 %) and
Taiwan (20 %). These imports represented some 5 % of
(128) Moreover, the investigation did not reveal any product
the domestic market (source: annual report of ANAFABI,
type where no profitable sales were made.
the Mexican association of bicycle manufacturers).
4. Export price
(122) The Mexican market profile for the product concerned,
(129) In all cases where the product concerned was exported to
number of operators, domestic competition and the
independent customers in the Union, the export price
features of production process confirmed that Mexico
was established in accordance with Article 2(8) of the
was still an appropriate analogue country. In view of
basic Regulation, namely, on the basis of export prices
the above, the Mexican market could be considered to
actually paid or payable.

---

EN
5.6.2013 Official
Journal
of
the
European
Union L
153/29
(130) In cases where sales were made via a related importer or
the conditions of Article 2(7)(c) of the basic Regulation
trader, the export prices were constructed in accordance
were met. In the absence of cooperation in this respect,
with Article 2(9) of the basic Regulation on the basis of
Giant China’s claims had to be rejected.
the resale prices of that related importer to first inde
pendent customers in the Union. Adjustments were made
for all costs incurred between importation and resale
including sales, general and administrative expenses and
profit. With respect to profit margin, the profit realised
(134) Furthermore, Giant China argued that there is no need to
by an unrelated importer/trader of the product concerned
take into account price information relating to other
was used since the actual profit of the related importer/
exporting producers when calculating the individual
trader was not considered reliable because of the rela
margin of an exporting producer unless Giant Group
tionship between the exporting producers and the related
and Jinshan Group form a single entity in view of the
importer/trader.
existing close financial, commercial and management
links.
(131) As stated in recitals 63 and 64, Giant China refused to
(135) The evidence on the file supports the finding that GP and
provide the Commission’s services with the necessary
Jinshan Group are related and have close shareholding,
information on the structure of the group and essential
structural and management links. In the absence of
information concerning production, export sales volume
complete information on all parties related to GP, in
and prices of the product concerned to the Union in the
particular on the Chinese bicycle exporting producers
RIP of the companies part of Jinshan Development and
that are subsidiaries of Jinshan Group, it is impossible
Construction Ltd group (‘Jinshan Group’) involved in the
to perform complete and reliable calculations on the
production and sale of the product concerned in the PRC
export price and therefore to obtain an individual
and consequently, Article 18(1) of the basic Regulation
margin determination for GP and as a consequence for
was applied concerning the export price.
the Giant Group as a whole.
(136) It was also claimed that the information requested placed
(132) Giant China challenged the application of Article 18(1)
an unreasonable burden on Giant China and that it acted
of the basic Regulation both in respect of refusal of MET
to the best of its ability in the investigation. In this regard
and application of facts available to the export price
it should be noted that no evidence was submitted, until
calculations. It argued that the information requested
comments to definitive disclosure, showing that Giant
by the Commission was not necessary for the calculation
China made any efforts to collect the information
of the dumping margin. In this regard, Giant China
required in the MET claim form and the anti-dumping
argued that the information requested from Jinshan
questionnaire for the companies part of Jinshan Group,
Group located in the PRC was not pertinent for the
involved in the production and sale of the product
MET assessment or export price calculations as it was
concerned. During the investigation Giant China
only very indirectly related to Giant China and its
claimed that it was unnecessary to provide the
related companies (‘Giant Group’).
information requested but did not claim that obtaining
such information was unreasonable burdensome. Giant
China submitted evidence of alleged efforts only after
final disclosure, at a stage where such information was
unverifiable. It could therefore not be taken into account
anymore.
(133) However, the investigation has confirmed that one of
Giant Group’s subsidiaries, actively producing and
exporting the product concerned to the Union during
part of the RIP, namely Shanghai Giant & Phoenix
Bicycles Co Ltd (‘GP’), was related, via common share
(137) Giant China claimed that there was in any event no risk
holding, structural and management links to Jinshan
of circumvention of any potential anti-dumping measures
Group and that this group was involved in the
by, for example, shifting production between the two
production and sales of the product concerned. In the
groups as GP, the only link between the two groups,
absence of a reply to the MET claim form and the anti-
has ceased all operations in September 2011. In this
dumping questionnaire from the companies part of
regards, it should be noted that at the end of RIP, GP
Jinshan Group that were involved in the production
still existed as an entity as also confirmed by Giant
and sales of the product concerned in the PRC, it
China. Therefore, the production activity could have
could not be assessed to what extent the production
resumed at any moment in the future and the fact the
and sales of the product concerned of Jinshan Group
GP allegedly ceased all operations in September 2011 is
had an impact on the export price determination with
not relevant. In addition, Giant China argued that the risk
regard to GP and as a consequence for the Giant as a
of circumvention could have been addressed in a
whole group. It could further not be investigated whether
different manner i.e. the monitoring clause mentioned

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in recitals 276 and 277 below. In this regard, it should
6. Dumping margin
be noted that the monitoring clause only applies to
unrelated companies, so the risks involved are not of
6.1. For the cooperating exporting producers
similar nature and the same remedies could not have
been applied.
(143) For the three cooperating companies, dumping margins
were established by comparing the weighted average
normal value established for the cooperating Mexican
producers with each company’s weighted average
export price to the Union, as provided for in Article 2(11)
and 2(12) of the basic Regulation.
(138) Moreover, Giant China argued that an on-spot verifi
cation at GP’s premises in the PRC should have taken
place in order to check the production and sales activities
of GP after September 2011. In this regard, it should be
noted that it was not considered relevant whether GP
ceased its activities after September 2011. Indeed, even
(144) The dumping margins expressed as a percentage of the
if this would have been the case, GP could have resumed
CIF Union frontier price, duty unpaid, are:
its bicycles production and sales activities anytime and an
on-spot verification would not have decreased such risk.
Company Dumping
margin
(139) Furthermore, Giant China submitted some evidence
Zhejiang Baoguilai Vehicle Co. Ltd 19,2
%
showing that Giant Group’s shares in GP have been
sold on 30 March 2013. However, it is to be noted
Oyama Bicycles (Taicang) Co. Ltd 20,9
%
that this transaction occurred after the RIP and in
conjunction with the advanced stage of the investigation,
Ideal (Dongguan) Bike Co., Ltd 0
%
this information cannot be verified nor is pertinent in the
framework of this investigation. In this regard, should
Giant request a review of their situation following the
sale of the shares, this can be considered in due time
6.2. For all other exporting producers
in line with the provisions of the basic Regulation.
(145) Given that cooperation from the PRC was very low as
stated in recitals 22 and 24, the findings for the
cooperating companies cannot be considered to be repre
sentative for the country. Therefore, the countrywide
(140) In the same submissions Giant China provided other
dumping margin applicable to all other exporting
clarifications to the Commission assessment warranting
producers in the PRC cannot be revised.
application of Article 18(1) of the basic Regulation.
However, they were not as such as to change the
Commission’s initial assessment.
(146) Therefore, the countrywide dumping margin is hereby
maintained unchanged as established by Regulation (EC)
No 1095/2005, i.e. 48,5 %.
(141) Therefore, the findings concerning application of
Article 18(1) of the basic Regulation in relation to
Giant Group are confirmed.
D. DEFINITION OF THE UNION INDUSTRY
Union production and Union industry
5. Comparison
(147) The like product is estimated to be manufactured by
(142) The normal value and export price were compared on an
around 380 known producers in the Union.
ex-works basis. For the purpose of ensuring a fair
Furthermore, six national associations of Union
comparison between the normal value and the export
producers made themselves known.
price, due allowance in the form of adjustments was
made for differences affecting prices and price compara
bility in accordance with Article 2(10) of the basic Regu
lation. Adjustments were made, where appropriate, in
respect of indirect taxes, discounts, level of trade,
(148) All available information, including data collected from
transport, insurance, handling and ancillary costs,
Union producers and national associations, as well as
packing, credit, bank charges and commissions in all
production statistics available to the Commission were
cases where they were found to be reasonable, accurate
used in order to establish total Union production,
and supported by evidence.
which amounted to around 11 million bicycles in RIP.

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(149) The Union producers accounting for the total Union
sampling forms and data collected from various associ
production constitute the Union industry within the
ations of bicycle producers in the Union.
meaning of Articles 4(1) and 5(4) of the basic Regulation
and will be hereafter referred to as the ‘Union industry’.
(152) The Union consumption was established on the basis of
the sales of all Union industry on the Union market, as
(150) As indicated above, given the high number of
estimated in recital 151, plus imports from all countries
cooperating Union producers a sample of eight Union
as reported by Eurostat.
producers was selected, representing around 25 % of the
total production and sales of the Union industry of the
(153) Total Union consumption declined from 22 459 062
like product in the RIP. All sampled Union producers
units in 2008 to 20 116 602 units in the RIP, i.e. by
were benefiting from the exemption scheme described
10 % over the period considered. This is mainly a result
in recital 1 above.
of a drop of 8 % between 2008 and 2009, while
consumption remained stable afterwards and only
E. SITUATION ON THE UNION MARKET
slightly decreased in the RIP (by 2 %). In 2009, the
market was in particular influenced by the impact of
1. Union consumption
the economic crisis and it has not recovered since. A
further drop in 2011 was mainly caused by the
(151) The Union industry’s sales were assessed on the basis of
continued cautious consumer spending at the current
data collected from producers in the reply to the
economic climate.
Table 1
Consumption
2008 2009 2010 2011
Volume (units)
+ Total imports 10
017
616 8
974
906 9
734
143 8
840
362
+ Union production sold on the Union
12 441 446 11
604
072 10
946
875 11
276
240
market
= Consumption 22
459
062 20
578
978 20
681
018 20
116
602
Index (2008 = 100) 100 92 92 90
Source: Eurostat, questionnaire replies.
2. Imports from the PRC
seen in the context of the findings in the parallel ongoing
anti-circumvention investigation mentioned in recitals 14
2.1. Volumes of dumped imports and market share of bicycles
and 15 (see recitals 223 and 224 below).
originating in the PRC
(154) The volume of imports of the product concerned orig
Table 2
inating in the PRC was established on the basis of stat
istical information provided by Eurostat. The volume of
Imports from the PRC
imports from the PRC declined sharply between 2008
and 2009 from 941 522 units to 597 339 units respect
2008 2009 2010 RIP
ively, i.e. by 37 %. In 2010 imports were increasing, but
in the RIP decreasing again where they reached 581 459
Volume of imports 941 522 597
339 627
120 581
459
units. The significant decrease in Chinese imports
from the country
coincided with the economic crisis and did not recover
concerned (units)
since. Overall, Chinese imports decreased by 38 % during
the period considered.
Index
100 63 67 62
(2008 = 100)
(155) The Chinese market share decreased accordingly from
4,2 % in 2008 to 2,9 % in the RIP. The decline in
Market share of
4,2 2,9 3,0 2,9
market share was partly offset by the reduction of the
imports from the
Union consumption.
country concerned
(%)
(156) However, it is to be emphasised that the relatively low
Source: Eurostat.
and decreasing market share of Chinese imports must be

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3. Prices of the imports concerned
found for one of the exporting producers which
amounted to 61 % without the anti-dumping duty and
3.1. Evolution of prices
44 % with the anti-dumping duty.
(157) As it was established in the Regulation (EC)
No 1095/2005, Eurostat data could only be used to a
limited extent for establishing the price trends of dumped
imports for the period between 2008 and the RIP for the
(161) Given that the cooperation from the Chinese exporting
following reasons:
producers was very low and the findings for the
cooperating companies could not be considered to be
representative for the country as well as the fact that
the average price in Eurostat could not be considered
as conclusive, it was considered that undercutting levels
(158) The import prices based on Eurostat data do not take
as established during the last expiry review concluded by
into account the various product types and the
Regulation (EC) No 1095/2005 mentioned in recital 3
substantial price differences among the various types of
should be taken as a reference when establishing the
the product concerned. The average prices per country
countrywide undercutting for the PRC, as no other
are strongly influenced by the product mix of each
more reliable information was available, i.e. 53 % after
country. Moreover, when comparing model by model
deduction of the anti-dumping duty and of 39 % with
of imports from the cooperating exporters that even
the duty.
within the same product types and models there exist
substantial price differences depending on the
components of the bicycles. Therefore, the prices found
in Eurostat continue to be inconclusive for the purpose
of this investigation. The import prices of Eurostat for
4. Economic situation of the Union industry
the PRC, hereafter indicated by index, can only serve as
(162) As indicated in recitals 8, 9 and 10, the present investi
an indicator of price trends, but are not useful when
gation analysed whether there was a change in the
comparing sales prices between various countries and
situation of the Union industry justifying a need to
the Union.
reassess the injury findings of the amending interim
review. The investigation has confirmed that: (i)
Following the global trend, the production of bicycles
in the Union consists mainly of labour intensive
(159) According to Eurostat data, the weighted average import
assembly of bicycle parts that are designed according to
prices, hereafter indicated by index, from the PRC
the customers’ specifications and sourced from various
increased significantly during the period considered as
origins. (ii) In order to cut the cost of production the
showed in Table 3. However, without knowing the
investigation has shown a continued effort of the Union
type of the bicycles that were imported from the PRC
industry to automatise and to streamline the assembly
and whether there was any shift in the product mix from
process. In addition, some Union producers benefitted
one year to the other, no conclusion can be drawn.
from the comparatively lower labour costs in Central
and Eastern Europe as compared to the investigation
period of the amending interim review. The production
statistics available to the Commission confirm this trend.
(iii) The investigation confirmed the preference for
Table 3
aluminium alloy as a raw material, while steel remained
Imports price from the PRC
the main raw material for lower end models and child

ren’s’ bicycles. In light of these changes the economic
situation of the Union industry was examined as
2008 2009 2010 RIP
described below.
Import Price from the PRC
Index (2008 = 100) 100 173 217 214
(163) Pursuant to Article 3(5) of the basic Regulation, the
Source: Eurostat.
Commission examined all relevant economic factors
and indices having a bearing on the state of the Union
industry.
3.2. Price undercutting
(160) Price undercutting of the cooperating exporting
producers for which dumping was found was calculated
(164) For the purpose of the injury analysis, the injury indi
on the basis of their actual verified export price (CIF
cators have been established as follows:
Union frontier) both with and without the anti-
dumping duty. The relevant sales prices of the Union
industry were those to independent customers in the
Union adjusted, when necessary, to ex-works level.
— macroeconomic indicators (production, production
During the RIP, based on different product types
capacity, capacity utilisation, sales volume, market
defined in the questionnaire, undercutting was only
share, employment, productivity, growth, magnitude

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of dumping margins and recovery from the effects of
sampled Union producers on the basis of the
past dumping) were assessed at the level of the whole
information they submitted.
Union production for all Union producers, on the
basis of the information collected from the national
associations of Union producers and individual Union
Macroeconomic indicators
producers. These factors were cross-checked, where
(a) P r o d u c t i o n , p r o d u c t i o n c a p a c i t y a n d
possible, with the overall information provided by
c a p a c i t y u t i l i s a t i o n
the relevant official statistics,
(165) During the period considered, the Union industry’s
production decreased continuously and at a faster pace
— microeconomic indicators (stocks, unit sales
than the Union consumption as shown above in Table 1
price, cost of production, cash flow, profitability,
under recital 153. Thus, production decreased from
return on investments, ability to raise capital,
13 541 244 units in 2008 to 11 026 646 units in the
investments and wages) were assessed for the
RIP, which reflected a 19 % decline.
Table 4
Total Union production
2008 2009 2010 RIP
Volume (units)
Production 13
541
244 12
778
305 11
682
329 11
026
646
Index (2008 = 100) 100 94 86 81
Source: Questionnaire replies, relevant official statistics.
(166) Production capacity was reduced by 5 % between 2008 and the RIP, which partly offset the impact of
the 19 % decline of production on the capacity utilisation rate. The latter dropped by 14 % points
over the same period, reaching 74 % in the RIP.
Table 5
Production capacity and capacity utilisation
2008 2009 2010 RIP
Volume (units)
Production capacity 15
804
000 15
660
000 15
150
000 15
000
000
Index (2008 = 100) 100 99 96 95
Capacity utilisation 86
% 82
% 77
% 74
%
Index (2008 = 100) 100 95 90 86
Source: Questionnaire replies, relevant official statistics.
(b) S a l e s v o l u m e
(167) Overall, the sales volume of the Union industry on the Union market declined in a similar way as the
Union consumption, showing a decrease of 9 % over the period considered, from 12 441 446 units
in 2008 to 11 276 240 units in the RIP. Between 2009 and 2010 however, sales continue to
decrease while consumption had remained stable, which is reflected in the loss of market share of
the Union industry in 2010 as shown below in Table 7 under recital 168 below. In RIP the volumes
of sales increased again but have not reached their 2008 level.

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Table 6
Sales of the Union industry in the Union
2008 2009 2010 RIP
Volume (units) 12
441
446 11
604
072 10
946
875 11
276
240
Index (2008 = 100) 100 93 88 91
Source: Questionnaire replies, relevant official statistics.
(c) M a r k e t s h a r e
Table 8
(168) The market share held by the Union industry increased
Total Union employment and productivity
from 55,4 % in 2008 to 56,1 % in the RIP, i.e. an
increase of 0,7 percentage points during the RIP. This
2008 2009 2010 RIP
slight improvement of 0,7 percentage points over the
period considered included a significant drop from
Number of
14 197 14
147 12
067 11
783
56,4 % in 2009 to 52,9 % in 2010. The overall
employees
increase of market share of the Union industry, against
the background of falling volumes of sales (see recital
Index (2008 = 100) 100 100 85 83
167), can be explained by the overall drop in
consumption (see recital 153).
Productivity (units/
954 903 968 936

year)
Index (2008 = 100) 100 95 102 98
Source: Questionnaire replies, relevant official statistics.
Table 7
Union industry market share
(e) G r o w t h
2008 2009 2010 RIP
(171) Over the period considered the consumption decreased
by 10 %. The market share of the Union industry
Union market share (%) 55,4 56,4 52,9 56,1
remained relatively constant (increasing only slightly,
i.e. by + 0,7 percentage points over the period considered
as outlined in recital 168). The declining Union market
Index (2008 = 100) 100 102 96 101
indicates that the Union producers have not opportunity
to benefit from any growth.
Source: Questionnaire replies, relevant official statistics.
(d) E m p l o y m e n t a n d p r o d u c t i v i t y
(f) M a g n i t u d e o f d u m p i n g m a r g i n
(169) Direct employment decreased by 17 %, from 14 197
(172) Dumping from the PRC continued during the RIP as
employees in 2008 to 11 783 during the RIP. This
explained in recitals 143 to 145. Given the large spare
decline followed the reduction of the production volume.
capacity in the PRC (see recital 203) and the established
circumvention (see recitals 223 and 224), the impact on
the Union industry of the actual margins of dumping
cannot be considered to be negligible.
(170) Overall, the productivity decreased by 2 % over the
period considered. The decline of production between
2008 and 2009 combined with constant employment
(g) R e c o v e r y f r o m p a s t d u m p i n g
over the same period caused a drop in productivity
between 2008 and 2009. This was followed by an
(173) It was analysed whether the Union industry recovered
increase of productivity between 2009 and 2010,
from the effects of past dumping. It was concluded
which can be explained by the restructuring of the
that the expected recovery of the Union industry from
industry and investments into more efficient production
the effects of past dumping has not happened as shown,
processes over the same period. Further decline in
in particular, by the persistently low profitability and a
production volume in RIP coupled with less sharp
decrease in the capacity utilisation. The recovery of the
decline in employment resulted in another decrease of
Union industry has also been hampered by established
productivity in RIP.
circumvention practices (see recital 223 and 224).

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Microeconomic indicators
(177) The cost of production was calculated on the basis of the
weighted average of all types of the like product
(h) S t o c k s
produced by the Union producers. The cost of
production increased slightly by 2 % over the period
(174) The stocks of bicycles for the Union producers stood at
considered as showed in Table 11 below.
517 977 units by the end of the RIP, broadly stable in
relation to their level in 2008 despite a 25 % decline
between 2008 and 2009.
Table 11
Unit cost of production
(175) Some of the Union producers had very limited levels of
stocks because they were selling their entire production
2008 2009 2010 RIP
to related companies within their respective group. In
Unit cost of production
141 147 146 145
addition, the Union producers were found to produce
(EUR per unit)
mostly on customer orders. The development of stocks
over the period considered was distorted by all these
Index (2008 = 100) 100 104 103 102
factors and, therefore, this indicator cannot be regarded
Source: Questionnaire replies.
as meaningful.
(j) P r o f i t a b i l i t y
Table 9
(178) The profitability levels were established on the basis of
Stocks
the sales to unrelated customers. The Union industry was
close to break-even between 2010 and RIP. Overall,
2008 2009 2010 RIP
profitability deteriorated during the period considered,
Volume (units)
showing a decrease from 1,9 % in 2008 to – 0,1 % in
RIP.
Closing stocks 519
832 390
398 522
779 517
977
Index
100 75 101 100
Table 12
(2008 = 100)
Profitability
Source: Questionnaire replies.
2008 2009 2010 RIP
(i) S a l e s p r i c e s a n d c o s t s
Profitability Union sales 1,9
% 1,6
% 0,3
% –
0,1
%
(176) The average ex-works sales price in the Union remained
Index (2008 = 100) 100 100 98 98
stable over the period considered despite an increase of
Source: Questionnaire replies.
3 % between 2008 and 2009. Sale price in the RIP
dropped again to the level of 2008.
(k) I n v e s t m e n t s a n d r e t u r n o n i n v e s t
m e n t
Table 10
(179) Investments significantly increased by 16 % over the
Unit sales price in the Union
period considered from EUR 7 952 150 in 2008 to
EUR
9
263
184 during the RIP. This reflects the
2008 2009 2010 RIP
continued efforts of the Union industry to increase the
efficiency of the manufacturing process and to remain
Unit sales price in the EU
144 149 146 144
competitive.
(EUR)
Index (2008 = 100) 100 103 102 100
(180) Return on investment followed a similar trend as profit
ability. In 2008 the return on investment was positive
Source: Questionnaire replies.
(14 %) but decreased to a – 1 % during the RIP.
Table 13
Investments and Return on Investment
2008 2009 2010 RIP
Investments (EUR ‘000) 7
952
150 9
421
745 19
288
284 9
263
184
Index (2008 = 100) 100 118 243 116
Return on investment 14
% 11
% 2
% –
1
%
Source: Questionnaire replies.

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(l) C a s h f l o w a n d a b i l i t y t o r a i s e c a p i t a l
the profit related microeconomic indicators declined over
the period considered, with a profitability of – 0,1 % in
(181) The cash flow followed a similar development as profit
the RIP.
ability but remained positive throughout the period
considered. It is expressed in the Table 14 below as a
percentage of turnover.
(185) The above shows that the Union industry remains in a
fragile situation, with declining profits and close to
(182) Only Union producers that were part of larger groups
breaking even situation in 2010 and RIP. In addition,
did not report any particular problems to raise capital.
any possibility for further growth and profits has been
Union producers that were not part of larger groups
undermined by the pressure of dumped imports from the
reported increased pressure on their cash situation
PRC and by circumventing imports (see recitals 223 and
linked to the low profitability and the deterioration of
224).
the business terms with both suppliers and customers.
The ability to raise capital was further compromised by
the reluctance of banks to finance the bicycle market in
the current economic climate.
(186) Notwithstanding, the Union industry managed to
maintain and even slightly increase its market share in
a shrinking market. The increased investments over the
period considered (+ 16 %) show the efforts of the Union
Table 14
industry to remain competitive. This together with the
Cash flow
latest innovations of the Union industry described in

recital 248 below shows its underlying vitality and
economic viability.
2008 2009 2010 RIP
Cash flow 3,2
% 3,1
% 1,8
% 1,3
%
Index (2008 = 100) 100 97 99 98
(187) On this basis, it is concluded that the Union Industry
continued to suffer material injury within the meaning of
Source: Questionnaire replies.
Article 3 of the basic Regulation and remained in a
vulnerable state.
(m) W a g e s
(183) During the period considered, the wage cost per
(188) After disclosure, parties argued, by referring to the
employee remained broadly stable, an increase only
Preserved Mandarins ( 1 ) case, that the Commission was
showing in 2009. This is mainly due the impact of the
obliged to take any steps to remedy the lack of certain
reduction of staff on companies’ salary scales while
information caused by the low cooperation of the
retaining trained employees in order to maintain effi
Chinese exporting producers and in failing to do so the
ciency and quality.
Commission has breached its procedural obligations
under the basic Regulation. Furthermore, the parties
suggested using the Chinese export statistics, which
break down the major types of bicycles exported to the
Table 15
EU market unlike Eurostat, or to request the national
Wages
customs authorities of the largest importing Member

States pursuant to Article 6(3) or (4) of the basic Regu
lation to carry an analysis of the different types imported
2008 2009 2010 RIP
from the PRC.
Wage cost per
15 747 17
393 17
383 16
581
employee (in EUR)
Index (2008 = 100) 100 110 110 105
(189) As mentioned in recitals 19 and 21 the Commission
officially notified the known exporting producers in the
Source: Questionnaire replies.
PRC, an association of Chinese producers, and the repre
sentatives of the country concerned of the initiation of
the investigation. The Commission contacted about 70
5. Conclusion on injury
Chinese companies already known to the Commission
services from the previous investigation and at a later
(184) Despite the measures in place, the majority of the injury
stage, when the anti-subsidy investigation mentioned in
indicators relating to the performance of the Union
recital 16 was initiated, the Commission identified
industry deteriorated during the period considered. In
around 300 additional Chinese exporting producers
particular, the macroeconomic indicators such as
that were contacted in the context of this interim
production volumes (–
19
%), production capacity
review as well. Moreover, the representatives of the
(– 5 %), capacity utilisation rate (– 14 %) and
employment (– 17 %) decreased considerably. Moreover,
( 1 ) Case C-338/10 of 22 March 2012.

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country concerned were notified at the initiation of the
referred to the price undercutting figure determined in
investigation that in case sufficient cooperation on the
the previous investigation mentioned in recital 5 which
part of exporting producers is not forthcoming, the
was calculated with reference to average prices from
Commission may base its findings on the facts available,
Eurostat, without knowing the actual composition of
in accordance with Article 18 of basic Regulation. It was
the imports. Furthermore it was argued that the
stressed that a finding based on facts available may be
Commission did not make any effort to determine
less advantageous to the party concerned.
whether the imported products were actually comparable
to the Union-produced bicycles and, therefore, the
Commission’s price undercutting analysis with respect
to non-cooperating producers is defective. For these
(190) In the Preserved Mandarins case the element analysed by
reasons, the parties argued that it must also be
the Court was the degree of the efforts the Commission
concluded that the Commission had failed to make an
should have made in obtaining pertinent information
objective assessment and adequate explanation of its
concerning the calculation of normal value based on
determination that the Union industry continues to
the price or constructed value from domestic producers
suffer material injury.
in a market economy third country by seeking
cooperation from identified potential analogue markets.
(194) In this regard, it should be noted that as mentioned in
recital 160 the price undercutting of the cooperating
(191) In the present investigation, the lack of information is
exporting producers for which dumping was found was
due to the extensive non-cooperation of the parties that
calculated on the basis of their actual verified export
are actually subject to the investigation. As mentioned in
price (CIF Union frontier) both with and without the
recital 186 the parties were repeatedly invited to
anti-dumping duty taking into account the product mix
cooperate but failed to do so. Thus unlike in the
of their exports during the RIP. However, as cooperation
Preserved Mandarins case the Commission actively and
of the Chinese exporting producers was very low and,
repeatedly sought the cooperation from the parties
consequently, the findings of the cooperating Chinese
concerned. The parallel between Preserved Mandarins
exporting producers could not be considered represen
case and the current investigation is therefore not
tative for the PRC as a whole as mentioned recital 145,
substantiated.
the undercutting levels as established in the amending
interim review mentioned in recital 3 could not be
modified.
(192) The Commission assessed the usefulness of other sources,
including the Chinese export statistics. It was concluded
that the alternative sources were not appropriate for this
(195) In face of extensive non-cooperation the Commission
investigation due to the fact that the level of details was
had to rely on facts available for the determination of
not sufficient to allow for calculation of new margins. In
the countrywide dumping, undercutting and injury elim
addition, the Chinese statistics were also found incon
ination levels. In this context the Commission considered
sistent with the Eurostat statistics showing, for example,
alternative sources of information that for the reasons
significantly higher level of imports than those reported
stated in recitals 192 to 194 could not be used.
in Eurostat. The proposed alternative sources therefore
Therefore, in the absence of contradicting findings, the
could not be used. Some parties also suggested the
countrywide dumping, undercutting and injury elim
Commission seek cooperation from the national
ination levels established in the amending interim
customs authorities of the largest importing Member
review mentioned in recital 3 were taken as a reference
States to carry out an analysis of the different product
for the purpose of this investigation.
categories imported from the PRC. In response to this
claim it is considered that apart from the practical
impossibility, even if such data was collected, it could
have not supplemented the information gap caused by
(196) It is confirmed that contrary to the claim of the parties
the non-cooperation. This is because, in particular, the
the reference levels used were those established during
level of analysis required could not have been simply
the expiry review concluded by Regulation (EC)
based on invoices, lacking relevant product type
No 1095/2005 mentioned in recital 3 and not those
description at the level of detail necessary for meaningful
established in the expiry review concluded by Imple
product type comparability.
menting Regulation (EU) No 990/2011.
(193) Several parties also argued that the Commission had not
(197) In addition, it was argued that the Commission failed to
carried out a product mix analysis of the imports from
analyse the claimed national customs errors preventing a
the PRC, in order to achieve a fair comparison of the
fair comparison of Chinese import prices. It is recalled
imports with bicycles produced in the Union for
that no meaningful price comparison could have been
purposes of making an objective and fair comparison
carried out in the present investigation due to the
in its injury and the price undercutting determination.
extensive non-cooperation, therefore, under these circum
In addition the parties argued that the Commission
stances the claim was considered irrelevant.

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F. LASTING NATURE OF CHANGED CIRCUMSTANCES
Industry and Textile Industry Development Plan for the 12th
AND LIKELIHOOD OF CONTINUATION OF DUMPING
Five-Year Plan, new industrial parks specialised in the
AND INJURY
production of bicycles are being developed in this area.
It follows that by 2015 the production capacity of
1. Dumping
bicycles in Tianjin area is estimated to reach 55 million
bicycles, an increase of 44 % as compared to 2011 while
(198) It was analysed in accordance with Article 11(3) of the
about half of the output will be for export (more than
basic Regulation, whether the circumstances with regard
the total consumption of bicycles in the Union in the
to dumping and injury have changed significantly, and if
RIP).
this change could reasonably be said to be of a lasting
nature.
(204) Furthermore, the three cooperating companies reported a
capacity utilisation rate between 72 % and 81 % during
(199) The three cooperating Chinese exporting producers were
the RIP. Extrapolating, we can estimate a spare capacity
subject to the residual duty rate in the previous investi
of the Chinese industry of more than 25 million bicycles,
gation while in the current investigation individual duty
which is more than double the Union industry’s total
rates were calculated for them. As mentioned in recitals
production during the RIP and 24 % higher than the
113 and 115, all three exporting producers in the PRC
total Union consumption. In addition, as the production
meet all the requirements for individual treatment. There
of bicycles is labour intensive, it seems that due to the
was no information in the file which would have shown
significant cheap labour force available in the PRC,
that the situation of the cooperating exporting producers
Chinese producers are able build up new capacity
concerned could change in the foreseeable future.
rather quickly.
(200) Moreover, the investigation has shown that the Chinese
(205) Moreover, in volume terms, the Union market is the
export quota system applicable during the amending
second largest worldwide, after the Chinese market
interim review, was abolished by the Government of
which makes the Union very attractive in terms of
the PRC and is not likely to be re-installed, in particular
potential demand.
also given the export oriented government policies for
the bicycle sector addressed in recital 203. Furthermore,
the investigation did not reveal any evidence that the
export price behaviour of these three companies will
(206) The findings in the anti-circumvention investigation (see
significantly change in the foreseeable future.
recital 14) confirms that the Union market continues to
be an attractive market for Chinese exporting producers
and that in the absence of any measures they would very
likely re-direct significant volumes to the Union.
(201) Therefore, it is considered that the changed circumstances
which lead to the dumping margins calculated for the
three cooperating Chinese exporting producers are of a
lasting nature.
(207) Moreover, other potential important export markets for
the PRC have anti-dumping measures in place
(Canada ( 1 )) which is reducing the potential third
countries markets available for the Chinese exports
without duties.
(202) Regarding the countrywide duty for the PRC, the inves
tigation did not reveal any changed circumstances and it
is proposed to maintain the same duty level as estab
lished during the amending interim review.
(208) It is recalled that US used to have a domestic production
of bicycles in the past and had anti-dumping duties in
place against the PRC. However, after the anti-dumping
duties were repealed at the end of the ‘90s, Chinese
(203) It was also examined whether the continued imposition
imports entered the US market massively. Domestic
of the measure is no longer necessary to offset dumping.
production almost disappeared in the following years.
According to the Chinese Bicycles Association, total
In 2011 it was estimated that 99 % of the bicycles
bicycle output in the PRC amounted to 83,45 million
sold in the US were imported; 93 % from the PRC and
units in 2011, showing an increase of 2,3 % as compared
6 % from Taiwan. Domestic production of bicycles in the
to 2010. Moreover, the Chinese bicycle industry
US is estimated at approximately 56 000 units per year
continues to be export oriented. Thus in 2011, the
with an annual consumption of about 16 million
PRC exported 55,72 million bicycles or 67 % of the
bicycles. The total US bicycles market (including sales
total production, a decrease of 4,2 % from 2010.
of related parts and accessories) was valued at USD 6
Domestic sales were approximately 23,73 million units
billion in 2011.
in 2011. The most important production region in the
PRC is Tianjin which produced about half of the total
( 1 ) SIMA — Notice of Conclusion of re-investigation — Bicycles -
output in 2011. According to Tianjin Municipal Light
2011.

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(209) In conclusion, the Chinese bicycle industry is an export
producers even if their production and sales value is
oriented industry with precedents of unfair pricing
allegedly large. Therefore, the findings of the investi
behaviour in several markets worldwide. Moreover, the
gation analysed in recitals 162 to 187 contradict the
findings in the anti-circumvention investigation
information submitted by these parties. Therefore, their
confirmed the continued interest of the Chinese
arguments were considered unfounded.
exporters in the Union market. Moreover, this
behaviour suggests that if the measures were repealed,
the Union market would very likely be targeted by low
priced Chinese imports with a view of taking over the
(214) It was also argued that the continuation of the anti-
domestic market. Therefore it can be concluded that the
dumping measures against the PRC would be discrimi
continued imposition of the measures is still necessary to
natory as imports from other third countries are allegedly
offset the dumping.
dumped and causing injury in particular from Sri Lanka

while no anti-dumping measures are in force on imports
from these countries. As a result of the anti-circum
vention investigation, the anti-dumping measures have
(210) Following the disclosure it was argued that the analysis
been extended to imports of bicycles, inter alia, from
overlooked the fact that the production growth in the
Sri Lanka. In addition, no evidence was submitted
PRC is being restricted by labour availability and that the
showing that the genuine producers in the country
PRC is losing its labour cost advantage to other south-
concerned would be dumping. Therefore, the argument
Asian countries operating under preferential trade agree
from the party was considered unfounded and it was
ments. In face of non-cooperation the claim was
rejected.
unverifiable and was therefore disregarded.
G. CAUSATION
2. Injury
1. Introduction
(211) As regards the grounds for opening the ex officio interim
(215) In accordance with Article 3(6) and (7) of the basic
review, the investigation examined the following changes
Regulation it was examined whether the material injury
in the structure of the EU bicycle industry: (i) switch
suffered by the Union industry had been caused by the
from the complete cycle of production to (partial)
dumped imports concerned. Known factors other than
assembly operations using imported parts; (ii) change in
the dumped imports, which could at the same time
the cost level due to the enlargement and relocation and
have injured the Union industry, were also examined to
setting up of new production facilities in Central and
ensure that the possible injury caused by these factors
Eastern Europe; (iii) increasing change in the use of raw
was not attributed to the dumped imports. In particular
material from steel to alloy following consumer trends.
the results of the anti-circumvention investigation were
As a result of the findings spelt out in recital 162, all the
analysed.
abovementioned developments are ongoing and of global
nature and are therefore not likely to change in the fore
seeable future.
2. Effect of the dumped Chinese imports
(216) The Chinese imports declined over the period considered,
(212) As regards the assessment of the likelihood of
representing 2,9 % of market share in the RIP. This
continuation of the injury, given the already fragile
relatively low and decreasing market share is to be
situation of the Union industry, described in recitals
seen in the context of the circumventing imports from,
184 to 187, it is also likely that the Union producers
Indonesia, Malaysia, Sri Lanka and Tunisia (see recitals
will not be able to resist the further price pressure that
223 and 224).
would be exerted by the Chinese dumped imports and, as
a consequence, will be forced to exit the Union market
with the consequence of a loss of employment and
investments, technology and know-how (see recitals
(217) As mentioned in recital 160, it was concluded that
247 and 248). Therefore it can be concluded that there
imports from the PRC continued to significantly
is a likelihood of continuation of injury should the
undercut the Union industry’s sales price on the Union
measures be repealed in this case.
market, thus exerting a significant pressure on the price
level on the Union market.
Comments of the parties
(218) At the same time, most of the injury indicators showed a
decreasing trend, in particular the production (– 19 %)
(213) Some parties argued that the Union industry is not
suffering material injury as publicly available information
and sales volume (– 9 %), capacity (– 5 %) and capacity
suggests that its financial situation is good. It is to be
utilisation (– 14 %).
noted that the financial situation of the Union industry is
assessed based on the information gathered and verified
during the investigation from a representative sample of
(219) The profitability of the Union industry declined
Union producers. This assessment cannot be substituted
throughout the period considered with the Union
by publicly available information related to some Union
industry close to breaking even due to the Chinese

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L 153/40
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Official Journal of the European Union
5.6.2013
price pressure. Because of this the Union industry was
via the circumventing countries. On these grounds, the
not able to raise the prices to profitable levels without
argument was therefore rejected.
losing significant market share.
3. Effect of circumventing imports
(220) It is therefore concluded that the pressure exerted by the
(223) As mentioned in recital 15, the anti-circumvention inves
imports of bicycles at dumped prices had a decisive
tigation established circumvention of the measures in
impact on the current vulnerable economic situation of
force against the PRC by assembly operation and trans
the Union industry.
hipment via Indonesia, Malaysia, Sri Lanka and Tunisia.
Based on these findings the difference between the
volumes of imports from the countries in question
(221) Following the disclosure it was argued that the relevance
reported in Eurostat and the volumes exported by
of declining production levels and capacity utilisation
known genuine producers i.e. those that qualified for
was not adequately reasoned, in particular, in the light
exemption from the extended measures for the reasons
of the fact that the decline in production was considered
to have no impact on profitability. It is noted that all the
set out in Regulation (EU) No 501/2013 were considered
injury elements are relevant for the assessment of the
as imports circumventing the measures in force (‘circum
economic situation of the Union industry whether or
venting imports’).
not they have an impact on the profitability levels in
the particular case. As explained in recital 237 the
(224) In the context of the causality analysis, these imports
decline in profitability and of other profit related indi
were considered as effectively coming from China and
cators was not caused by the shrinking market but can
should therefore be considered together with the direct
be attributed to the continued pressure of dumped
imports from China. On this basis the volume of Chinese
Chinese imports. The argument is therefore rejected.
imports thus established reached 1 904 761 units in the
RIP. In 2008, imports reached 2 321 240 units. They
were declining in 2009 to 1 802 101 units, i.e. by
(222) The same party also argued that the market share
22 % and increasing in 2010 to almost the same levels
evolution of the Chinese imports was not adequately
than in 2008, reaching 10,6 % of the market share.
analysed as the analysis failed to address the sharp
Finally, imports decreased again in the RIP by 13 %,
decline of imports over the period considered. Also it
reaching a market share of 9,5 %. Over the period
was argued that the causality analysis failed to take
considered, import volumes decreased by 18 %. In the
into account the increasing price trends of these
context of the shrinking market (see recital 153) the
exports. In response to this argument it is recalled that
described decrease of import volumes did not result in
the declining volume of Chinese imports must be seen in
a significant loss in market share as the latter has
the context of the findings of the parallel anti-circum
declined by only 0,8 % over the period considered.
vention investigation (see recital 216). The price trend of
Since the product mix of the imports from the PRC
the Chinese imports established on the basis of Eurostat
and the circumventing imports is unknown, it is not
is not meaningful as it does not take into account the
meaningful to compare prices of these imports with
price development of the imports of the Chinese bicycles
those of the Union industry on the Union market.
Table 16
Imports from the PRC together with circumventing imports from, Indonesia, Malaysia, Sri Lanka and
Tunisia
2008 2009 2010 RIP
Volume of imports (units) 2
321
240 1
802
101 2
194
354 1
904
761
Index (2008 = 100) 100 78 95 82
Market share 10,3
% 8,8
% 10,6
% 9,5
%
Source: Eurostat.
(225) Following the disclosure some parties argued that the analysis of the impact of the circumventing
imports was deficient as solely based on the volume effects and thus lacking any price comparison
based on a product mix analysis. It was alleged that this lack of analysis was a result of procedural
failure as the product mix analysis was omitted despite cooperation of exporting producers from the
countries concerned. In addition, it was alleged that the imports from these countries into the Union
concern low-cost children or other bicycles that do not compete with the bicycles produced in the
Union. In response to this argument it is noted that the product mix analysis could not have been
carried out for the reasons explained in recital 192. Also, the majority of the circumventing imports
were transhipments in cases of which no information on the product mix was available. Finally, it is
noted that the Union producers were found to produce all product segments; therefore, the argument
on alleged non-competing imports of the children and low end bicycles was found unsubstantiated.

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4. Effect of other factors
(232) Several parties claimed that imports from other third
countries were made at lower prices than the Chinese
4.1. Imports from other countries
imports and therefore the Chinese imports have not
caused the material injury suffered by the Union
(226) Total imports from other third countries amounted to
industry. This argument could not be accepted because
6 931 333 units during the RIP. This level of imports
the average import prices could not be determined on
reflected a small increase of 1 % over the period
the basis of Eurostat for the reasons explained in recital
considered.
157 and therefore no conclusion could be drawn on this
basis.
(227) Given the contraction of the Union consumption, the
market share of the imports from other third countries
remained broadly stable, reaching 34 % in the RIP.
(233) Another party claimed that imports from third countries
subject to General System of Preferences (GSP) from
1 January 2011 onwards are expected to increases
(228) Taiwan remained the main exporting country to the
(Cambodia and Bangladesh). However, the impact on
Union with a relatively constant market share over the
import prices and quantities and the effect on the
period considered and representing 14 % of the Union
Union market cannot be evaluated a priori. In addition,
consumption during the RIP.
no information was available as to the ability of these
countries to increase the production capacity and the
sales volume to the Union market. Therefore, no firm
(229) Thailand is the second largest exporting country into the
conclusion can be drawn on this basis and this claim
Union. Its market share decreased by 2 percentage points
had to be rejected.
during the period considered, i.e. form 7 % in 2008 to
5 % in the RIP.
(234) Following the disclosure the parties claimed that the
(230) As stated in recital 157, the prices in Eurostat do not
analysis of the impact of the imports from the third
take into consideration the various product mixes from
countries with preferential trade agreements was not
each country and therefore only indexes are used to
adequately addressed as the imports from these
indicate the price trends. Since the product mix of the
counties were claimed to be significant in volumes as
imports from other third countries is unknown, it is not
compared to the Chinese imports and some of them
meaningful to compare prices of these imports with
also significantly lower prices. In this context it is
those from the Union industry on the Union market.
recalled that the PRC is the second largest importer
into the Union. The imports from other third countries
were all below the import volumes of the Chinese
(231) However, it should be noted that only the imports from
bicycles. Also, no allegations of dumping were brought
Taiwan exceed the volume of the Chinese imports (cir
forward against these countries. Therefore, it was
cumventing imports included). In this regard, it should be
concluded that the imports from these countries could
noted that the imports of bicycles from Taiwan are
not have an impact so as to break the established causal
usually aimed for the high-end market and no evidence
link between the large volumes of dumped imports from
was submitted otherwise. Therefore it is concluded that
China that coincided with the continuation of material
these imports cannot be considered as a cause of injury
injury of the Union industry. On these grounds, the
to the Union industry.
argument was rejected.
Table 17
Imports from other third countries (*)
2008 2009 2010 RIP
Units
Market
Price
Price
Price
Price
share
EUR/unit
Units
Market
share
EUR/unit
Units
Market
share
EUR/unit
Units
Market
share
EUR/unit
Taiwan 3
428
043 15
% 2
949
433 14
% 3
458
448 17
% 2
864
114 14
%
Indexed 100 100 100 86 94 126 101 110 125 84 93 151
Thailand 1
522
209 7
% 1
384
410 7
% 1
234
123 6
% 993
952 5
%
Indexed 100 100 100 91 99 118 81 88 114 65 73 113
Others 2
746
124 12
% 66 2
838
962 14
% 73 2
847
164 14
% 80 3
077
535 15
% 80
Indexed 100 100 100 103 113 111 104 113 122 112 125 121
Total 7
696
376 34
% 99 7
172
805 35
% 116 7
539
735 36
% 122 6
935
601 34
% 132
Indexed 100 100 100 93 102 118 98 106 124 90 101 134
(*) Circumventing imports from Indonesia, Malaysia, Sri Lanka and Tunisia excluded
Source: Eurostat.

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4.2. Development of consumption
4.6. Effect of the structural changes
(235) As mentioned in recital 153, from 2008 to the RIP the
(241) Following the disclosure one party argued that the
consumption decreased by 10 %. However, the Union
Commission failed to analyse the impact of the
industry maintained and even slightly increased its
recognised structural changes of the market and of the
market share (see recital 168). Therefore, shrinking
Union industry in its injury and causation analysis. As an
market cannot be a source of injury.
example it was claimed that Commission failed to
address the impact of the shift of production towards
the eastern European countries in its production cost
analysis. In response to this claim, it is noted that the
analysis of the lasting nature of the changes has been
4.3. Economic crisis and climatic conditions
carried out (see recital 162) and it was concluded that
the changes were of lasting nature (see recital 211). For
(236) Some parties claimed that the prevailing negative
this reason, new injury analysis was carried out based on
economic conditions in the Union had an impact on
a sample of the Union producers chosen to reflect the
the consumers’ purchase behaviour over the period
structural changes. Therefore, it is considered that the
considered. It was also claimed that the poor weather
impact of such changes was duly taken into account in
conditions in the Union in 2011 had at least partly an
the injury and causation analysis. The argument is
effect on the situation of the Union industry. These
therefore rejected.
factors allegedly resulted in the overall decrease of
consumption of bicycles in the Union.
4.7. Conclusion
(242) Despite the shrinking Union consumption, substantial
(237) Indeed the investigation revealed a decrease of the Union
volumes of direct or circumventing dumped imports of
consumption during the period considered. However, as
Chinese bicycles were found entering the Union market.
mentioned in recital 234, the shrinking of the market
The rather stable and significant market share of these
cannot be considered a source of injury.
imports over the period considered coincided with a
period of continued economic vulnerability of the
Union industry (see recitals 184 to 187). It is concluded,
therefore, that there is a causal link between the imports
from the PRC (direct and circumventing) and the material
(238) These parties also claimed that production and
injury suffered by the Union industry.
employment only decreased to follow the consumption
trend and not because of the dumped imports. However,
as the bicycle industry does not have high fixed costs, the
decline in production did not have an impact on the
(243) Other factors were considered such as impact of imports
profitability of the Union bicycles industry. As far as
from other third countries, development of consumption,
employment in concerned this is due to the restructuring
economic crisis and the climatic conditions, the non-
process undertaken by the Union industry. In any event
dumped imports, the development of the electronic
this development does not explain the negative trends for
bicycles. None of these factors was found significant
other injury indicators.
enough to break the causal link established between
the dumped Chinese imports and the material injury
suffered.
4.4. Non-dumped imports
(244) Based on the above analysis, which has properly distin
guished and separated the effects of all known factors on
(239) The non-dumped imports from one cooperating
exporting producer represented negligible quantities, i.e.
the situation of the Union industry from the injurious
close to 0 % of the total imports from the PRC and
effects of the dumped exports, it was concluded that the
therefore they could not have a discernible effect on
dumped imports from the PRC together with the circum
the situation on the Union industry.
venting imports have caused material injury to the Union
industry within the meaning of Article 3(6) of the basic
Regulation.
4.5. Electric bicycles
H. UNION INTEREST
(240) It was argued that the injury suffered by the Union
1. Introduction
industry was caused by the development of electric
bicycles which allegedly were replacing the product
(245) In accordance with Article 21 of the basic Regulation, it
concerned. However, the development of the electric
has been examined whether, despite the conclusion on
bicycles is very recent and represented only marginal
injurious dumping, compelling reasons existed for clearly
sales volumes during the RIP. Therefore, they could
concluding that it would not be in the Union interest to
have not had an impact on the situation of the Union
impose the anti-dumping measures against imports from
industry.
the PRC at the rates set out below (see recital 279).

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(246) It should be recalled that, in the previous investigations,
3. Interest of producers of bicycle parts
the adoption of measures was considered not to be
against the interest of the Union. Furthermore, the fact
(253) The Association of the Bicycles Parts Producers
that the present investigation is an interim review
(COLIPED) made itself known during the investigation.
pursuant to Article 11(3) of the basic Regulation, thus
COLIPED provided information that there are about 370
analysing a situation in which anti-dumping measures
companies in the Union, which are supplying
have already been in place, allows the assessment of
components to the bicycle producers and employ
any undue negative impact on the parties concerned by
about 16
000 people. The suppliers industry is
the current anti-dumping measures.
depending on the continuation of the bicycles production
in the Union.
(247) The determination of the Union interest was based on an
appreciation of the various interests involved, i.e. those of
the Union industry, producers of bicycle parts, unrelated
(254) 53 producers of bicycle parts came forward in favour of
importers and users.
the measures, representing 39 % of the estimated 1,2
billion EUR of total turnover of the bicycle part
industry. The bicycles parts producers are benefiting
from the extension of the existing measures to essential
2. Interest of the Union industry
bicycle parts (see recital 1). The existing exemption
scheme (see recital 1) encourages local production of
(248) The investigation showed that the industry is still in a
bicycle parts by restricting the Chinese content of
fragile situation. Given the substantial volume of dumped
bicycle parts used to less than 60 % of the total value.
imports from the PRC and likelihood of continuation of
Due to the measures in place the Union industry was
dumping and injury, there is a strong likelihood that
able to develop and invest in new projects aiming to
Union production would disappear should measures be
resume production of certain essential parts in the Union.
repealed.
(249) The Union industry contributes significantly to tech
(255) In this respect, it was found that without the measures
nological innovation and spin offs, such as the recently
and the expected closure of bicycles production in the
developed EPACs (Electronically Power Assisted Cycles)
Union, the bicycle parts industry in the Union will also
and electronic bicycles that would not be economically
suffer negative consequences as they will lose their
viable without having a bicycle industry in the Union.
customers. It is therefore concluded that the imposition
Moreover, the Union industry contributes to the environ
of anti-dumping measures would be in the interest of the
mental goals such as greening of transport and decarbon
bicycle parts industry.
isation.
(250) The Union industry is also a driving force for related
4. Interest of users/consumers
industries, such as production of bicycle parts, bicycle
accessories and related services. In total the Union
(256) The European Cyclists’ Federation (ECF), an umbrella
industry generates directly and indirectly between
federation of the national cyclists’ associations in
60 000 and 70 000 jobs in the Union market.
Europe supported the continuation of the anti-dumping
measures in force. The ECF argued that local production
is in the interest of the consumers as it ensures quality
and safety as well as specialised customer services.
(251) The Union industry had undertaken efforts to restructure
and invested in innovation which would be lost should
the Union industry disappear. To the contrary, with the
measures in place, the Union industry would be able to
maintain and even increase sales volume and thereby
(257) The ECF argued that an increase of imports from the PRC
generating the necessary return on investments which
would have a negative impact on the high quality and
would enable it to continue to reinvest in new tech
safety standards in the Union at the expense of the
nology and innovation.
consumer.
(252) In view of the conclusions on the situation of the Union
industry as set out at recitals 184 to 187, it can be
(258) The impact of the anti-dumping duties on the consumer
expected that without measures the financial situation
price is estimated not to be significant as the majority of
of the Union industry would likely deteriorate signifi
Union producers of bicycles operate under the exemption
cantly and ultimately risk the closure of production.
scheme whereas the essential bicycle parts can be
Therefore, the anti-dumping measures are in the
imported from the PRC without any duty up to 60 %
interest on the Union industry.
of the total value of the parts used.

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(259) It is recalled that, in the previous investigations, it was
which explained at least partly the situation of the
found that the impact of measures would not be
Union industry during the RIP. Therefore, the argument
significant for the users/consumers. Despite the
was rejected.
existence of measures, the supply of bicycles from the
PRC, as well as countries without any measures is
available. It is therefore concluded that the anti-
dumping measures do not have a significant negative
impact on users in the Union.
(265) Following the disclosure some parties argued that the
measures existing for over 23 years are not justified on
either legal or trade policy grounds. In response to this
claim it is noted that no time limits restrict the duration
of the measures as long as the conditions for their
(260) Following the disclosure one party argued that the
imposition or maintenance are met. Also, in the case
analysis failed to take into account the negative impact
at hand the measures are justified as the findings
of the measures on the users in form of additional costs
confirmed existence of injurious dumping. Furthermore,
brought by the measures. It is noted that the ECF repre
the situation of the Union industry is further undermined
senting the consumers came forward in support of the
by circumvention. Therefore, the argument is rejected.
measures for the quality and safety reasons (see recital
255). Also, thanks to exemptions scheme the consumers
already benefit from the reduced price of certain bicycle
parts (see recital 257). Therefore, the argument was
found unsubstantiated.
7. Conclusion
(266) The continuation of measures on imports of bicycles
originating in the PRC would clearly be in the interest
of the Union industry and the Union suppliers of bicycle
5. Interest of unrelated importers
parts. It will allow the Union industry to grow and
improve its situation caused by the dumped imports.
(261) None of the unrelated importers cooperated in the inves
tigation. Therefore, it was not possible to make an
Furthermore, the importers would not be substantially
assessment of the impact of the measures during the
affected since fairly priced bicycles would still be
RIP. It should also be recalled that the purpose of the
available on the market from the PRC and other third
anti-dumping measures is not to prevent imports, but to
counties. Also, due to the extensive use of the existing
restore fair trade and ensure that imports are not made at
exemption scheme by the Union industry, it was
injuriously dumped prices.
concluded that the existing measures had no significant

negative impact on the users/consumers. In contrast, if
measures were repealed, Union bicycles producers will
likely close production, thus also threatening the
existence of Union bicycle parts producers.
(262) It is recalled that there are other sources of imports and
around 45 % of the consumption of bicycles are in fact
imported bicycles.
(267) In view of the above, it is concluded that based on the
information available concerning the Union interest,
there are no compelling reasons against imposing the
(263) As fairly-priced imports from the PRC would still be
measures at the rates indicated (279) on imports of the
allowed to enter the Union market, and as imports
product concerned originating in the PRC.
from third countries would also continue, it is likely
that the traditional business of the importers would
continue even if the anti-dumping measures with
regard to the PRC were maintained. The amended anti-
dumping measures for the three cooperating exporting
I. PROPOSED DUTIES
producers would increase the import possibilities from
the PRC at 0 % or reduced rate. Therefore, it is
1. Injury elimination level
concluded that the anti-dumping measures do not have
a significant impact on unrelated importers in the Union.
(268) In view of the conclusions reached with regard to
dumping, resulting injury and Union interest, the
existing measures, as imposed by Implementing Regu
lation (EU) No 990/2011, should be maintained except
as provided herein below.
6. Effectiveness of the measures
(264) One party argued that measures would not be effective
given that the Union industry is still suffering injury after
the anti-dumping measures being in force for almost 20
(269) For the purpose of determining the level of these
years. It is noted that despite the measures in force, it has
measures, account was taken of the dumping margins
been confirmed that Chinese exporting producers were
found and the amount of duty necessary to eliminate
circumventing the measures via other third countries
the injury sustained by the Union producers.

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EN
5.6.2013 Official
Journal
of
the
European
Union L
153/45
(270) The measures should be imposed at a level sufficient to
‘all other companies’) are thus exclusively applicable to
eliminate the injury caused by the imports in question
imports of products originating in the People’s Republic
without exceeding the dumping margin found. When
of China and produced by these groups and thus by the
calculating the amount of duty necessary to remove the
specific legal entities mentioned. Imported products
effects of the injurious dumping, it was considered that
produced by any other group not specifically
any measures should allow the Union industry to cover
mentioned in the operative part of this Regulation
its costs of production and to obtain overall a profit
including entities related to those specifically mentioned,
before tax that could be reasonably achieved by an
cannot benefit from these rates and shall be subject to
industry of this type in the sector under normal
the duty rate applicable to ‘all other companies’.
conditions of competition, i.e. in the absence of
dumped imports, on the sales of the like product in
the Union. The pre-tax profit margin used for this calcu
lation was 8 % of turnover of the sales of bicycles. It is
the same as in the previous investigation since there was
(275) Any claim requesting the application of these individual
no indication found that this rate should be changed.
company anti-dumping duty rates (e.g. following a
change in the name of the entity or following the
setting up of new production or sales entities) should
be addressed to the Commission ( 1 ) forthwith with all
relevant information, in particular any modification in
(271) Given that cooperation from the PRC was very low as
the company’s activities linked to production, domestic
stated in recitals 22 and 24, the findings for the
and export sales associated with, for example, that name
cooperating companies cannot be considered to be repre
change or that change in the production and sales
sentative for the country. Consequently, the countrywide
entities. If appropriate, the Regulation will accordingly
injury margin is hereby maintained unchanged as estab
be amended by updating the list of companies benefiting
lished by Regulation (EC) No 1095/2005.
from individual duty rates.
(276) In order to ensure a proper enforcement of the anti-
(272) For the two cooperating exporters, for which dumping
dumping duty, the residual duty level should not only
was found, the injury margins were established on the
apply to the non-cooperating exporting producers but
basis of their own export prices compared, at the same
also to those producers which did not have any
level of trade, to the non-injurious prices of the Union
exports to the Union during the RIP.
industry for the corresponding product type. No injury
margin was calculated for the third company, for which
no dumping was found. For Oyama Bicycles (Taicang)
Co. Ltd, no injury margin was identified. However, a
substantial injury margin higher than the dumping
(277) In order to minimise the risks of circumvention due to
margin was found for Zhejiang Baoguilai Vehicle Co. Ltd.
the high difference in the duty rates, it is considered that
special measures are needed in this case to ensure the
proper application of the anti-dumping duties. These
special measures include the following: The presentation
to the Customs authorities of the Member States of a
(273) Following the disclosure one party argued that the 8 %
valid commercial invoice, which shall conform to the
target profit was fixed at the market conditions that do
requirements set out in the Annex to this Regulation.
not correspond to the current situation and the
Imports not accompanied by such an invoice shall be
Commission failed to provide adequate reasoning to
made subject to the residual anti-dumping duty
justify why the target profit determined in the previous
applicable to all other exporting producers.
investigation mentioned in recital 5 is still justified. It is
noted that there was no indication found under the
current review that the rate of the target profit should
be changed. The party in question did not submit any
substantiated calculation of an alternative target profit
(278) Should the exports by one of the companies benefiting
level to be used. Therefore, the argument was rejected.
from lower individual duty rates increase significantly in
volume after the imposition of the measures concerned,
such an increase in volume could be considered as
constituting in itself a change in the pattern of trade
due to the imposition of measures within the meaning
2. Definitive measures
of Article 13(1) of the basic Regulation. In such circum
stances and provided the conditions are met an anti-
(274) As regards the three cooperating Chinese exporting
circumvention investigation may be initiated. This inves
groups, the individual company anti-dumping duty
tigation may, inter alia, examine the need for the removal
rates specified in this Regulation were established on
of individual duty rates and the consequent imposition of
the basis of the findings of the present investigation.
a countrywide duty.
Therefore, they reflect the situation found during that
investigation with respect to these groups. These duty
( 1 ) European Commission, Directorate-General for Trade, Directorate H,
rates (as opposed to the countrywide duty applicable to
1049 Brussels, Belgium.

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L 153/46
EN
Official Journal of the European Union
5.6.2013
(279) In accordance with Article 7(2) of the basic Regulation,
2. The
rate
of
the
definitive
anti-dumping
duty
applicable
to
the duty rates for the cooperating exporters are estab
the net, free-at-Union-frontier price, before duty, of the products
lished at the level adequate to remove the injury to the
described in paragraph 1 and manufactured by the companies
Union industry. For Zhejiang Baoguilai Vehicle Co. Ltd
listed below shall be as follows:
and Ideal (Dongguan) Bike Co., Ltd the duty rates are
based on dumping margins established by the investi
gation since they were lower than the injury margins.
For Oyama Bicycles (Taicang) Co. Ltd the injury margin
Company Definitive
duty
TARIC
Additional Code
was lower than the dumping margin, therefore, the duty
is established at the injury margin level.
Zhejiang Baoguilai Vehicle Co. Ltd 19,2
% B772
Oyama Bicycles (Taicang) Co. Ltd 0
% B773
(280) The individual duty rates calculated for the RIP should be
as follows:
Ideal (Dongguan) Bike Co., Ltd 0
% B774

All other companies 48,5
% B999
Company Definitive
duty
Zhejiang Baoguilai Vehicle Co. Ltd 19,2
%
3. The
application
of
the
individual
duty
rates
specified
for
the companies referred to in paragraph 2 shall be conditional
Oyama Bicycles (Taicang) Co. Ltd 0
%
upon presentation to the customs authorities of the Member
States of a valid commercial invoice, which shall conform to the
Ideal (Dongguan) Bike Co., Ltd 0
%
requirements set out in Annex. If no such invoice is presented,
the duty applicable to ‘all other companies’ shall apply.
All other companies 48,5
%
4. Unless
otherwise
specified,
the
provisions
in
force
(281) It is noted that pursuant to Article 2(1) of Regulation
concerning customs duties shall apply.
(EC) No
71/97, the anti-dumping duty of 48,5
%
imposed to all other companies by this Regulation (see
Article 2
recital 279) applies also to imports of essential bicycle
parts, as defined in Article 1 of Regulation (EC)
The extension of the antidumping duty imposed on imports of
No 71/97, originating in the PRC,
bicycles originating in the People’s Republic of China to imports
of certain bicycle parts originating in the People’s Republic of
China by Regulation (EC) No 71/97, is hereby maintained.
HAS ADOPTED THIS REGULATION:
The definitive anti-dumping duty referred to in Article 2(1) of
Article 1
Regulation (EC) No 71/97 shall be the ‘all other companies’
anti-dumping duty imposed by Article 1(2) herein.
1. A
definitive
anti-dumping
duty
is
hereby
imposed
on
imports of bicycles and other cycles (including delivery tricycles,
but excluding unicycles), not motorised, falling within CN codes
Article 3
8712 00 30 and ex 8712 00 70 (TARIC codes 8712 00 70 91
and 8712 00 70 99), originating in the Peoples’ Republic of
This Regulation shall enter into force on the day following that
China.
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, 29 May 2013.
For the Council
The President
R. BRUTON

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EN
5.6.2013 Official
Journal
of
the
European
Union L
153/47
ANNEX
A declaration signed by an official of the entity issuing the commercial invoice, in the following format, must appear on
the valid commercial invoice referred to in Article 1(3):
(1) the name and function of the official of the entity issuing the commercial invoice;
(2) the following declaration:
‘I, the undersigned, certify that the (volume) of bicycles sold for export to the European Union covered by this invoice
was manufactured by (company name and registered seat) (TARIC additional code) in (country concerned). I declare
that the information provided in this invoice is complete and correct.
Date and signature’.

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Document Outline

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