Commercial Information Circular

24-hour hotline : 23 922 922

Ref.: EIC 230/2/3/2/13

22 December 2017

Dear Sirs,

Commercial Information Circular No. 1193/2017

European Union (EU)* : Initiation of an anti-subsidy proceeding concerning imports of electric bicycles originating in the Mainland of China

Further to Commercial Information Circular No. 985/2017 dated 9 November 2017, the European Commission (the Commission) has published a notice initiating an anti-subsidy proceeding concerning imports of electric bicycles originating in the Mainland of China. The notice is available at:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52017XC1221(03)&from=EN.

DETAILS

2.Salient points of the notice are set out below -

(a) Product under Investigation

Cycles, with pedal assistance, with an auxiliary electric motor, currently falling within CN codes 8711 60 10 and ex 8711 60 90 (TARIC code 8711 60 90 10). The codes are given for information only.

(b) Procedures

In view of the potentially large number of exporting producers in the Mainland of China involved in the proceeding and in order to complete the investigation within the statutory time limits, the Commission may apply sampling. To enable the Commission to decide whether sampling is necessary and, if so, to select a sample, all exporting producers, or representatives acting on their behalf, are requested to make themselves known by providing the Commission with the information requested in Annex I to the notice, including identity and contact details, turnover, sales volume, activities of the company and related companies, and the company's investments relating to the product under investigation. By providing the information, the company agrees to its possible inclusion in the sample. If selected to be in the sample, the company will have to complete a questionnaire and accept a visit at its premises in order to verify its response. Such information should reach the Commission within 15 days from 21 December 2017, unless otherwise specified.

All interested parties wishing to submit any other relevant information regarding the selection of the sample must do so within 21 days from 21 December 2017, unless otherwise specified.

If a sample is necessary, the exporting producers may be selected based on the largest representative volume of exports to the EU which can reasonably be investigated within the time available. All known exporting producers, the authorities of the Mainland of China, and associations of exporting producers will be notified of the companies selected to be in the sample. All exporting producers selected to be in the sample and the authorities of the Mainland of China will have to submit a completed questionnaire within 37 days from the date of notification of the sample selection, unless otherwise specified. Companies that have agreed to their possible inclusion in the sample but are not selected to be in the sample will be considered to be cooperating. Non-sampled cooperating exporting producers wishing to claim an individual subsidy amount must request a questionnaire and return it duly completed within the same deadline. They should be aware that the Commission may nonetheless decide not to determine their individual subsidy amount if, for instance, the number of exporting producers is so large that such determination would be unduly burdensome and would prevent the timely completion of the investigation.

Subject to the provisions of the notice, all interested parties are invited to make their views known, submit information and to provide supporting evidence within 37 days from 21 December 2017, unless otherwise specified.

All interested parties may request to be heard by the Commission investigation services. Any request to be heard should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation, the request must be submitted within 15 days from 21 December 2017.

Interested parties are invited to make all submissions and requests by, in general, email including scanned powers of attorney and certification sheets. By using email, interested parties express their agreement with the rules applicable to electronic submissions contained in the document 'CORRESPONDENCE WITH THE EUROPEAN COMMISSION IN TRADE DEFENCE CASES' available at:
http://trade.ec.europa.eu/doclib/docs/2011/june/tradoc_148003.pdf.

Commission address for correspondence:
European Commission
Directorate-General for Trade
Directorate H
Office: CHAR 04/039
1040 Brussels
Belgium

Email addresses:TRADE-AS646-EBIKES-SUBSIDY@ec.europa.eu
TRADE-AS646-EBIKES-INJURY@ec.europa.eu

Interested parties may request the intervention of the Hearing Officer in trade proceedings, who acts as an interface between the interested parties and the Commission investigation services through reviewing requests for access to the file, disputes regarding the confidentiality of documents, requests for extension of time limits and requests by third parties to be heard. A request for a hearing with the Hearing Officer should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation the request must be submitted within 15 days from 21 December 2017. For further information and contact details, interested parties may consult the Hearing Officer's web pages at:
http://ec.europa.eu/trade/trade-policy-and-you/contacts/hearing-officer/.

The investigation will be concluded within 13 months from 21 December 2017. Provisional measures may be imposed no later than nine months from the same date.

BACKGROUND

3.The Commission initiated this anti-subsidy proceeding on the basis of a complaint lodged on 8 November 2017 by the European Bicycle Manufacturers Association on behalf of producers ('the complainants') representing more than 25 % of the total EU production of electric bicycles. The evidence provided by the complainants is said to have showed that (i) the producers of the product under investigation from the Mainland of China have benefited from a number of subsidies granted by the Government of the Mainland of China; (ii) imports of the product under investigation from the Mainland of China have increased overall in absolute terms and in terms of market share; and (iii) the volume and the prices of the imported product under investigation have had, among other consequences, a negative impact on the quantities sold and the market share held by the EU industry as well as on the EU's prices that could not be raised to a reasonable level due to the downwards price pressure of the imported product under investigation resulting in substantial adverse effects on the overall performance of the EU industry.

ENQUIRIES

4.For enquiries concerning the content of this circular, please contact the undersigned at 2398 5350.

Yours faithfully,

(Y K So)
for Director-General of Trade and Industry

* The EU member countries are Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

Note 1	While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.
Note 2	The biweekly newsletter "Regulatory Alert - EU" of the Hong Kong Trade Development Council provides up-to-date information on the latest developments in EU trade policy and trade regulations. It is available at: http://economists-pick-research.hktdc.com/business-news/subindex/en/Regulatory-Alert-EU/1X2ZT68A/1/0.htm.