(8)

Between 20 February 2022 and 22 May 2023, the Commission received from the parties listed in Tables 1 and 2 requests for exemption with the information required to determine whether these requests were admissible in accordance with Article 4 of the exemption Regulation.

(9)

The parties requesting exemption were given an opportunity to comment on the Commission's conclusions concerning the admissibility of their requests.

(10)

In accordance with Article 5(1) of the exemption Regulation, pending a decision on the merits of requests from the parties requesting exemption, the payment of the extended duty in respect of any imports of essential bicycle parts declared for free circulation by these parties listed in Tables 1 and 2 below was suspended as from the day on which the Commission received their respective duly substantiated requests pursuant to Article 4(1) and (2) of the exemption Regulation.

(11)

The examination of the merits of the request from the parties listed in Table 1 has been concluded.

Table 1

(12)

The Commission established during its examination that the value of the parts originating in China constituted less than 60 % of the total value of the parts of all the bicycles assembled by the parties listed in Table 1.

(13)

Consequently, the Commission concluded that the assembly operations of the parties listed in Table 1 fall outside the scope of Article 13(2) of Regulation (EU) 2016/1036.

(14)

For that reason, and in accordance with Article 7(1) of the exemption Regulation, the parties listed in Table 1 fulfilled the conditions for exemption from the extended duty.

(15)

In accordance with Article 7(2) of the exemption Regulation, the exemption should take effect as from the date of receipt of the duly substantiated request pursuant to Article 4(1) and (2) of the exemption Regulation. The customs debts in respect of the extended duty from the party requesting exemption should therefore be considered void from the same date.

(16)

The interested parties were informed of the Commission's conclusions on the merits of their requests respectively and were given an opportunity to comment thereon. No comments were received.

(17)

Since the exemption applies only to the parties specifically referred to in Table 1, the exempted parties should notify the Commission (7) without delay of any changes to this exemption (for instance, following a change in the name, legal form or address or following the setting up of new assembly entities).

(18)

In case of change in reference, the exempted party should provide relevant information, including on any modification in its activity linked to assembly operations. Where appropriate, the Commission will update the references accordingly.

(19)

The examination of the merits of the requests from the parties listed in Table 2 is ongoing. Pending a decision on the merits of their requests, the payment of the extended duty by these parties is suspended.

(20)

Since the suspensions apply only to the parties specifically referred to in Table 2, these parties should notify the Commission (8) without delay of any changes to these (for instance following a change in the name, legal form or address or following the setting up of new assembly entities).

(21)

In case of change in reference, the party concerned should provide all relevant information, including on any modification in its activities linked to assembly operations. Where appropriate, the Commission will update the references to such party.

Table 2

(22)

The suspension of payment of the duties should be lifted for the parties under examination listed in Table 3.

Table 3

(23)

On 8 August 2022 and on 26 October 2022, the Commission received from the parties listed in Table 3 a request for exemption with the information required to determine whether the respective requests were admissible in accordance with Article 4(1) of the exemption Regulation.

(24)

In accordance with Article 5(1) of the exemption Regulation, pending a decision on the merits of the requests, the payment of the extended duty in respect of any imports of essential bicycle parts declared for free circulation by the parties listed in Table 3 was suspended as from the dates on which the Commission received their respective requests for exemption.

(25)

TARIC additional codes C896 and C991 were assigned to Cyclision s.r.o. Slovakia (‘Cyclision’) and Bicicletas Mendiz S.A. Spain (‘Bicicletas Mendiz’) respectively, in order to identify the imports of essential bicycle parts declared for free circulation and subject to the suspension of the payment of the extended duty.

(26)

On 13 June 2023, the Commission received from Bicicletas Mendiz a request to withdraw the application for an exemption while the examination of its merits was ongoing and the payment of the extended duty was suspended.

(27)

The Commission accepted the withdrawal and consequently the suspension of the payment of the extended duty should be lifted. The extended duty should be collected as from the date of receipt of the request for exemption submitted by Bicicletas Mendiz, namely the date on which the suspension took effect, that is 26 October 2022.

(28)

On 22 June 2023, Bicicletas Mendiz was informed of the Commission’s conclusions and was given an opportunity to comment thereon. No comments were received.

(29)

On 3 October 2023, in accordance with Article 6(1) of the exemption Regulation, the Commission identified an investigation period in order to decide whether to grant an exemption to Cyclision and sent to Cyclision a questionnaire together with request of information on its assembling activities carried out during the investigation period as identified.

(30)

Moreover, the Commission informed Cyclision that in accordance with Article 7(4) of the exemption Regulation, failure to submit the requested information within the time limit set by the Commission could lead to the request for exemption being rejected. The Commission did not receive any reply.

(31)

On 6 November 2023, the Commission reiterated the request to submit the necessary documents and information on the Cyclision’s assembling activities carried out during the investigation period. Cyclision was also informed that failure to submit the requested questionnaire and documentation constituted a breach of Cyclision’s obligations set out in Article 6(2) of the exemption Regulation. Furthermore, the Commission informed Cyclision on the intention to reject the request for exemption pursuant to Article 7(4) of the exemption Regulation. The Commission did not receive any reply.

(32)

On 24 November 2023, Cyclision was informed on the ongoing procedures to adopt a Commission decision rejecting the request for exemption and that therefore, the suspension would be lifted and Cyclision would have to pay the extended duties not collected from the date of suspension. The Commission did not receive any reply.

(33)

Consequently, the request for exemption lodged by Cyclision should be rejected in accordance with Article 7(4) of the exemption Regulation. The suspension of the payment of the extended duty should be lifted and the extended duty should be collected as from the date of receipt of the request for exemption submitted by Cyclision, namely the date on which the suspension took effect, that is 8 August 2022.

(34)

Between 6 June 2023 and 7 February 2024, the exempted parties listed in Table 4 notified the Commission of changes in their names and addresses. The Commission, after having examined the information submitted, concluded that those changes do not affect the assembly operations with regard to the conditions of exemption or suspension set forth in the exemption Regulation.

(35)

While the exemption of these parties from the extended duty authorised in accordance with Article 7(1) of the exemption Regulation remains unaffected, the references to these parties should be updated.

Table 4

(36)

The exemption authorisation should be revoked for the parties listed in Table 5.

Table 5

(37)

Between 17 July 2023 and 19 March 2024, the Commission was notified that the exempted parties listed in Table 5 under TARIC additional codes 8489, C019, C202, 8071, 8083, 8330, C311 and A850 wound up and ceased their activities. Moreover, the exempted parties listed in Table 5 under TARIC additional codes 8005, 8081, 8624, 8767, 8981, A172, A231, A249 permanently ceased the bicycle assembling activity and/or did not use the exemption authorisation since January 2019 and therefore, did not meet the threshold set out in Article 14(c) of the exemption Regulation. Furthermore, the exempted parties listed in Table 5 under TARIC additional codes 8205 and A500 did not use essential bicycle parts for the assembly operations in quantities above the threshold set out in Article 14(c) of the exemption Regulation.

(38)

As a consequence thereof, the Commission concluded that the exemption authorisations granted to the parties listed in Table 5 should be revoked, pursuant to Article 10 of the exemption Regulation.

(39)

The parties listed in Table 5 were informed of the Commission’s conclusions and were given an opportunity to comment thereon. The exempted party listed in Table 5 under TARIC additional code A500 replied confirming that they did not use essential bicycle parts for the assembly operations in quantities above the threshold set out in Article 14(c) of the exemption Regulation but that they are still assembling bicycles. For this reason, the revocation of their exemption authorisation should take effect as from the day following that of the publication of this Decision in the Official Journal of the European Union. No comments were received from other parties listed in Table 5,