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October 2/13 11:53 am - Anti-dumping Duties on Bicycles Rescinded

Posted by Editoress on 10/2/13

The Canadian International Trade Tribunal (CITT) has abruptly and without warning rescinded duties it was collecting on bicycles, assembled or unassembled, with wheel diameters of 16 inches (40.64 cm) and greater, originating in or exported from Chinese Taipei and the People's Republic of China, excluding bicycles with an FOB Chinese Taipei or People's Republic of China selling price exceeding CAN$225 and excluding bicycles with foldable frames and stems. In consumer terms, this means bicycles with a retail value below approximately $400.

The order is dated September 30th (Monday), however, some affected bicycle importers told us that the first they heard about it was yesterday, by e-mail. Anti-dumping duties on bicycles have been in place since 1992, when Canadian manufacturers - primarily Raleigh and Procycle - successfully argued for their implementation. It has been reviewed a number of times, with Canadian specialty importers that supply the IBD (Independent Bicycle Dealer) market arguing - unsuccessfully - that they should be exempt.

On January 15th of this year, Raleigh Canada announced that they would cease production in Canada (see Raleigh to Close Canadian Manufacturing Facility). A few importers (Outdoor Gear Canada and Trek) went to the CITT requesting a review of the anti-dumping duites, since Raleigh was sole remaining Canadian manufacturer that the duties protected. The CITT responded at the time that, until production actually ceased, the duties would remain in place.

Now, it appears, the CITT has determined that there are no longer any Canadian manufacturers to protect (the review determined that domestic manufacturing ceased in June of this year), and initiated a review, starting on August 8th. Ironically, the only party to oppose the cessation of duties was an importer named Action Traders; Raleigh did not oppose the request to remove the duties, since they are becoming solely an importer. Action Traders tried to argue that removing duties would disrupt the market, and that they were considering establishing domestic manufacturing.

The full order can be viewed Here.

Larry Koury, Managing Director of Specialized Canada, cautioned that it is too early to say what impact this will have on consumer prices. "The fulfillment of importer and exporter requirements for 2014 model year took place months ago, and all pricing [for 2014] with the factories is already in place. So, I believe that it will have little or no impact to importers and exporters [on 2014 pricing], because 2014 is in full motion. Our inventory began to come in during the summer, so it was bought and sold under the anti-dumping duties. I think any impact will be on the model 2015 bikes."


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