April 26/07 11:44 am - CITT Initiates Expiry Review on Bicycle and Frame Dumping Duties

Posted by Editor on 04/26/07
 

CITT Initiates Expiry Review on Bicycle and Frame Dumping Duties

Wednesday, April 25, 2007 - The Canadian International Trade Tribunal has announced that it will hold an expiry review on dumping duties currently imposed under the Special Import Measures Act for bicycles and frames originating or exported from Chinese Taipei (Taiwan) and China.

The current duties were set to expire at the end of this year, after being originally imposed back on December 11, 1992 and renewed twice since then. Domestic manufacturers and importers of bicycles and frames are submitting questionnaires to the Tribunal by May 7th, and a decision will be released on July 26th by the Canadian Border Services Agency (CBSA) as to whether there is a likelihood of continued or resumed dumping. If the CBSA determines no likelihood, then duties will expire this December, if a determination is made that a likelihood continues to exist, then an Inquiry will be held by the Tribunal to decide whether to continue duties.

Information on the expiry review can be found at: http://www.cbsa-asfc.gc.ca/sima/expiry-e.html

In March of 2007 the Bicycle Trade Association of Canada petitioned the CITT to allow the existing duties to expire without review. BTAC is strongly opposed both to the duties and the significant administration costs incurred in verifying that products should not be subject to duties.

Paul Nielsen, President of BTAC notes, "The duty scheme does nothing more than drive up consumer prices of bicycles, discouraging their use as the most environmentally friendly, healthy and efficient means of urban transportation." He adds: "With our growing awareness of the dire consequences of climate change and with Canadian cities choked with smog it is simply absurd to do anything that drives up the cost of a bicycle."

Mike Hietpas, Canadian Sales Manager for Trek Bicycles commented on the proceedings:

"I think the most interesting development is that the only Canadian manufacturer requesting the extension is Raleigh. Procycle has withdrawn. I'm a little surprised that enough justification was found to take it to the Tribunal again. There is a coalition in industry to send representation against renewal, which we have agreed to support, along with Kona and other members of the industry. That's good development."

"You have single low end Canadian manufacturer, with single mass merchant customer (Canadian Tire), yet they have gumption to ask for protection. Basically, Raleigh is saying 'Our interests outweigh the rest of the industry' - all the importers, other mass merchants (besides Canadian Tire), and other domestic manufacturers. At some point, it has to be asked: When does the desire of the mass outweigh the desire of the minority? There has been millions and millions of dollars spent in past 20 years on these hearings and the Global Safeguard action; it's ludicrous."

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