Under ‘no deal’ Brexit all bicycle and electric bike dumping duties will be terminated

Published by the UK Government yesterday were the results of a consultation on what tariffs should apply to industry, including the bicycle business, in a post Brexit world.

The consultation, which took place between November 2017 and March of this year, asked interested parties which EU anti-dumping and anti-subsidy tariffs should remain in each possible scenario of Brexit.

Within the document it is evident that a provisional decision suggests that all electric and pedal-powered bicycles would see anti-dumping measures terminated.

In light of the European Bicycle Manufacturer Association’s successful bid to see provisional measures imposed on Chinese electric bike imports it is thus far unclear whether the UK Government’s stance will change to reflect the European Commission’s stance. A lawsuit is challenging the EU on this decision, alleging misconduct in reaching the decision.

According to Peter Eland at the Bicycle Association “there may be another UK appeal for evidence on AD643 and AS 646 after the definitive measures are announced. But at this stage it seems unlikely that the ‘terminate’ decisions would change.”

Within the document the tariffs concerned are:
AD287 (Bicycles)
AD643 (Electric bicycles anti-dumping)
AS646 (Electric bicycles anti-subsidy)

UK producers in favour of retention of anti-dumping measures are invited to submit their own evidence of injury up until August 24th. An appeals process will follow that.

As it stands, by the time Britain formally exits the EU on March 30th, 2019, a ‘no deal’ Brexit would result in anti-dumping tariffs ceasing on electric and pedal cycles. This is the earliest that the UK can begin to operate its own independent trade remedies and it is likely these would be put back in place under further consultation

On the flipside, if an implementation period or transition deal is agreed, the current measures would run likely until December of 2020.

With the UK seemingly not opting to follow established EU legislation the net result for the UK bike business may initially be cheaper bikes at retail, potentially stimulating sales. There are, however, legislative spanners that could still be thrown in the works.