The Trade Remedies Authority has today 14 August 2023 begun reviewing an application from a UK importer, Frog Bikes Limited, to be exempted from an anti-dumping duty on certain bicycle parts from China.
At present, importers are required to pay a 48.5% duty on imports.
Frog Bikes Limited is applying to be exempted from this following a planned change in company structure: Frog Bikes Manufacturing Limited, which currently holds an exemption to the measure, will cease to exist. Therefore, Frog Bikes Limited, the importer's parent company, is now applying for an exemption.
In its application, Frog Bikes Limited has stated it is not related to an overseas exporter subject to the measure and that it is not engaged in circumvention of the measure.
The TRA has accepted the application for review and will recommend that the Secretary of State for Business and Trade implements a temporary suspension of the duty for Frog Bikes Limited's goods until the review is complete.
The TRA's investigation will undertake appropriate checks to gain assurance on the following:
- that the parent company will be taking over the operations of its UK importer subsidiary but that there will be no other change in operations;
- that the applicant is not related to an overseas exporter which is subject to the measure;
- that the applicant is not engaged in circumvention of the measure.
Once the review is complete, the TRA may recommend to the Secretary of State to exempt Frog Bikes Limited goods from the duty.
The anti-dumping measure on certain bicycle parts from China was transitioned when the UK left the EU. The TRA is required to initiate a Transition Review on this anti-dumping measure before 30 August 2024.
Notes:
- The Trade Remedies Authority is the UK body that investigates whether new trade remedy measures are needed to counter unfair import practices and unforeseen surges of imports.
- Dumping occurs when goods are imported into a country and sold at a price that is below their normal value in their country of export.
- Circumvention describes actions undertaken to avoid duties imposed as a consequence of anti-dumping or countervailing measures.
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An exemption review assesses whether an importer or overseas exporter can demonstrate that they are not involved in circumventing a trade remedy measure and therefore should be exempted from it.
- The exemption review only applies to measures arising from a circumvention review conducted by the EU before it was transitioned to the UK, or measures following a circumvention review initiated by the Trade Remedies Authority.
- View the full notice of initiation here.
