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Canada Extends Anti-Dumping Duties

Published December 11, 2007

OTTAWA, Quebec (BRAIN)—The Canadian government has extended its anti-dumping duties on low- and entry-level bicycles from China and Taiwan for another five years, but will drop the extra duties on frames priced at less than $50, FOB China and Taiwan.

The Canadian International Trade Tribunal issued its decision Monday, capping a year-long review that divided the Canadian industry between mass merchants suppliers—primarily Raleigh Canada—and importers that supply independent retailers.

Canada will continue to impose anti-dumping duties on complete bicycles with an FOB value of $225 Canadian ($225 U.S.) or less at their origin points in Taiwan and China. The ruling excludes bicycles with FOB prices above that level, bicycles with wheels 16 inches in diameter or smaller, and folding bicycles.

The anti-dumping duties can theoretically go as high as 64 percent, but in practice vary among manufacturers and by model. The Canada Border Services Agency directs a complex system that annually sets floor prices on mass-market and entry-level bikes from China and Taiwan. The taxes bring bikes priced below the floor up to the established level.

No Canadian manufacturer is producing frames, especially aluminum models, in quantities that would meet mass market demands, so the tribunal removed anti-dumping duties on frames.

The rulings apply in five-year increments, and this is the fourth consecutive time the tribunal has imposed anti-dumping duties on Chinese and Taiwanese bikes. This ruling will extend through 2012.

For more details, see the January 1 issue of Bicycle Retailer and Industry News.

—John Crenshaw

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