(1)

By Regulation (EC) No 71/97, the Council extended the anti-dumping duty imposed by Regulation (EEC) No 2474/93 on imports of bicycles originating in the People’s Republic of China (‘PRC’) to imports of certain bicycle parts from that country (‘extended anti-dumping duty’). Regulation (EC) No 71/97 also stipulated that an exemption scheme should be established on the basis of Article 13(4) of the basic Regulation (‘the exemption scheme’) to enable assemblers not circumventing the measure on bicycles to import Chinese bicycle parts free of antidumping duty, by exempting them from the measure extended to bicycle parts.

(2)

The legal framework for the operation of the exemption scheme was provided for in Commission Regulation (EC) No 88/97 (5) (hereinafter ‘the Amended Regulation’).

(3)

Following a review of the extension of the anti-dumping duty imposed on imports of bicycles originating in the PRC to imports of certain bicycle parts from the PRC pursuant to Articles 11(3) and 13(4) of the basic Regulation, the Council, by Regulation (EC) No 171/2008 (6), decided to maintain the anti-circumvention measures.

(4)

Following an interim review investigation pursuant to Article 11(3) of the basic Regulation, the Council, by Regulation (EC) No 1095/2005 (7), decided to increase the anti-dumping duty in force to 48,5 %.

(5)

By Notice published in the Official Journal of the European Union (8) (‘the Notice’) the European Commission (‘the Commission’) initiated an interim review of the anti-dumping measures applicable to imports of bicycles originating in the PRC. In point 4.4 of the Notice interested parties were invited to comment on the functioning and possible future model of the exemption scheme. Comments were sought in particular in relation to the operation and management of the exemption scheme in its current form, including challenges faced by the small and medium-sized enterprises.

(6)

No pertinent comments have been received. However, as a consequence of the experience gathered by the Commission, while applying the exemption scheme, it is considered necessary to introduce some amendments, which will facilitate its operation.

(7)

Under the current exemption scheme, the definition of the investigation period, does not allow for an appropriate assessment of the quantity and value of Chinese parts used in EU bicycle assembly operations. The rules in force prescribe that, the investigation period has to be set at a time prior to the date of suspension of anti-dumping duties. During this period, applicants usually import small quantities from the PRC, as quantities above 299 parts per month would be subject to an anti-dumping duty. Consequently, it would appear that bicycles assembled during the investigation period comply with the rules set out in Article 13(2) of the basic Regulation which states that bicycle producers in the Union have to respect a ratio of less than 60 % of Chinese bicycle parts in their operation or the addition of more than 25 % value to all parts brought into the operation (‘60/40 or 25 % value added’ rule).

(8)

It is only after the suspension has been granted that the companies start to import higher volumes. Yet, under the rules currently in force this period cannot be taken into consideration. Therefore, the underlying aim of the scheme ‘to ensure the use of an appropriate proportion of parts originating in Europe’ cannot be fully achieved.

(9)

Against this background and for reasons of legal certainty, it is considered appropriate to amend the definition of the investigation period under Article 6(1) to include also the time after the date of suspension of payment of the extended anti-dumping duty. Compliance with the ‘60/40 or 25 % value added’ rule will then be verified more appropriately for a period during which the importer pays no anti-dumping duties, i.e. after the suspension is granted.

(10)

In order to allow an applicant to submit verifiable data of its imports of bicycle parts for the period prior to the suspension pursuant to Article 4(1)(b) of the Amended Regulation, the reference to irrevocable contractual obligation under Article 4(1)(a) is removed.

(11)

Furthermore, the current scheme is unclear in respect of imports of bicycle parts used for the assembly of cycles fitted with an auxiliary motor, with or without side-cars, sometimes referred to as electrical bicycles or pedelecs. Complete electrical bicycles and consequently the parts for the assembly of electrical bicycles are subject neither to the anti-dumping duty nor to the extended anti-dumping duty i.e. the assembly operations of electrical bikes remain outside the scope of Regulation (EC) No 71/97. Therefore, it is considered appropriate to extend the existing provisions under Article 14 for ‘end use control’ of parts intended for the assembly of electrical bicycles. The ‘end-use-control’ provisions enable national customs authorities to trace the final use of imported parts, i.e. use for assembly of classical bicycles or electrical bicycles.

(12)

Furthermore, it is considered appropriate to delete Article 16(3) since required data can be retrieved from other sources.

(13)

Finally, it is proposed to correct clerical errors and amend obsolete references in the Amended Regulation.

(14)

In the interests of legal certainty and the principle of sound administration, it is necessary to provide that the amendments to the Amended Regulation provided for in this Regulation are to apply as soon as possible to all new and to all pending investigations.

(15)

Regulation (EC) No 88/97 should therefore be amended accordingly,

(1)

Article 3(1) is replaced by the following:

(2)

Article 4 is amended as follows:

(3)

Article 5(1) is replaced by the following:

(4)

Article 6 is amended as follows:

(5)

Article 7 is amended as follows:

(6)

Article 8(1)(a) is replaced by the following:

(7)

Article 9(1) is replaced by the following:

(8)

Article 10 is replaced by the following:

(9)

Article 13 is replaced by the following:

(10)

Article 14(c) is replaced by the following:

(11)

in Article 14 the following subparagraph (d) is added:

(12)

Article 16(3) is deleted.