8 companies ask for countervailing duties on bicycle imports from China
At the request of eight companies, the Mexican government initiated the administrative procedure to examine the validity of the final compensatory quota imposed on imports of children’s bicycles originating in China.
The Ministry of Economy set the examination period from October 1, 2019 to September 30, 2020, and the analysis period from October 1, 2015 to September 30, 2020.
On November 10, 2020, the National Association of Bicycle Manufacturers, A.C. (ANAFABI) and the national production companies Distribuidora de Bicycles Benotto, Motos y Bicycles Goray, Bicycles Mercurio, Bicycles Supermex, Bicycles Veloci, Corporativo La Bici, Bicycles Cinelli and Rebimo de Guadalajara expressed their interest in the Ministry of Economy starting the validity examination of the final countervailing duty imposed on imports of children’s bicycles originating in China.
All eight are companies incorporated under Mexican law. Its main activity consists of the manufacture and sale of bicycles.
To accredit their quality as national producers of children’s bicycles, said companies presented a letter from the National Association of Bicycle Manufacturers, A.C. of November 12, 2020, which thus accredits them.
For its part, ANAFABI is a civil association constituted in accordance with Mexican law. Its main activity consists of representing the general interests of bicycle manufacturers and defending the interests of their members.
Bicycle imports
The product under review are children’s bicycles, rolled from 10 to 20 inches, of all types. A bicycle is a two-wheeled vehicle, consisting mainly of a frame, fork, wheels (rim and rim), seat, handlebars and brakes; Each of these components consists of several parts. The frame is the backbone of the bike and supports the other parts.
Children’s bicycles are universal consumer goods that differ only in size, construction materials, models, and accessories.
The applications and basic uses of bicycles are the same and to a large extent are interchangeable, so that models from different categories compete with each other and form a unique product.
According to the Ministry of Economy, bicycle imports are subject to an ad valorem tariff of 15%, with the exception of imports originating in countries with which Mexico has entered into free trade agreements, which are exempt; however, and according to the Comprehensive and Progressive Treaty of Trans-Pacific Partnership (TIPAT), goods originating in Vietnam are subject to an ad valorem tariff of 12 percent.
Likewise, those originating in Peru and Panama have a tariff of 2 and 6%, respectively.
The interested companies are: the importer Comercializadora México Americana and the exporters Huffy Corporation and Kent International Inc.
Antecedent
On December 21, 2015, the final resolution of the antidumping investigation on imports of children’s bicycles originating in the People’s Republic of China («China») was published in the Official Gazette of the Federation (DOF), regardless of the country of origin. Through this Resolution, the Secretariat determined a definitive compensatory fee of $ 13.12 per piece.
On August 28, 2019, the Notice on the validity of countervailing duties was published in the DOF. By this means, the national producers and any person with a legal interest were informed that the definitive countervailing duties imposed on the products listed in said Notice would be eliminated as of the expiration date indicated therein for each one, except that a domestic producer express in writing its interest in having an examination procedure initiated. The list included bicycles for children originating in China, the subject of this review.
