[Closed] Are EU imports from Taiwan tariff-free?

he’ll now have to pay 14% import duty on complete bikes from Taiwan

Cotic doesn't import complete bikes from anywhere. It does import bike parts (and many of the frames) from Taiwan (and the USA). Cotic bikes built in the UK contain so much nonEU/UK parts (such as forks, shocks, drivetrain, gears etc) that the bike is considered nonEU/UK when a customer imports one from the UK into the EU.

Cotic was paying zero duty importing Taiwan goods to the UK (EU)

Duty on bike parts from Taiwan into the UK has never been zero duty, and still are not.

What has changed is that complete bikes imported from UK>EU (or EU>UK) used to all be zero tariff, but now only face a 14% tariff unless they are accredited as being made of more that 55% UK/EU made parts.

Just read Cy Cotic’s latest email where he’s saying he you’ll now have to pay 14% import duty on complete bikes built with frames from Taiwan if you're in the EU

according to this

https://trade.ec.europa.eu/access-to-markets/en/results?product=8714911039&origin=TW&destination=FR

bike frames being imported from taiwan into france (for example, but is the same for all EU) is subject to a 4.7% tariff

Parts, including frames, are 4.7%, complete bikes are 14%.

and according to this

https://www.trade-tariff.service.gov.uk/commodities/8714911039#import

bike frame imported into the UK from taiwan attract a tariff of 4%, so its now 0.7% cheaper than when we were in the EU.

Not sure where his 14% is coming from..... I guess there may be more details required .

He also suggests that EU based bike companies products will have similar tariffs coming into the UK for the same reasons, not ‘enough’ EU local content.

Not sure where his 14% is coming from….. I guess there may be more details required .

Because a Bike is not a bike frame. 8712 vs 8714

They have already built one lot of 14% tariffs in to the current prices and in 2020 they could move the bikes from UK - EU or vice versa with no additional tariffs.
Now they pay 14% tariffs when the bikes first come in to the UK (or EU not sure how they are set up) but now they pay 14% tariff again when they sell the product from the UK to an EU customer

Because a Bike is not a bike frame. 8712 vs 8714

Looks like he'll have to start shipping frames seperately ......

Wonder how much 'value added' stuff he would have to do to the frame and all the parts in order to classify it as a UK bike? Anyone know...

Now they pay 14% tariffs when the bikes first come in to the UK

I repeat… Cotic does not import complete bikes from anywhere, they are built in the UK, from parts made in Taiwan, UK, USA & EU.

See

This here thread

I repeat…

Missed that bit so he pays 4% bringing parts in and factors that into complete price but now has to add 14% when moving bikes to the EU

thanks Ben

He also suggests that EU based bike companies products will have similar tariffs coming into the UK for the same reasons, not ‘enough’ EU local content.

Try ordering a bike from YT.

Missed that bit so he pays 4% bringing parts in and factors that into complete price

Exactly.

but now has to add 14% when moving bikes to the EU

Not as this point. The customer has to be ready to pay their local VAT rate, plus the 14% and any charge, on delivery.

There are ways that the seller can increase the price to the customer instead, and pay all those additional costs up front for them, but for now Cotic is leaving that to the customer to sort their end… to get shipping again ASAP.

Not sure where his 14% is coming from

Import Duties on non-EU Bicycles - Bike Europe (bike-eu.com)

We're outside Europe now, so customers in Europe have to pay import duty on anything we sell them that's not covered by the rules of origin agreement giving zero tariffs.

because bikes are less than 55% (?) by value of UK components then they attract tariffs - the rate for bikes into EU is 14%.

This is a lovely example of tariff protectionism/free trade that we used to be benefit from but now don't.

So Cotic (and others) now pay import duty on parts/components/frames as they did before (maybe slightly less) but now have to levy export duties when selling to Europe.

Its basically the same as buying from / selling to the US now. (although hopefully the punitive tariffs on bikes between UK and US wil be removed now we're no longer part of the boing  / airbus spat.)

There's an anti-dumping tax of 45% (IIRC) on cheap bikes imported into the EU from China/Taiwan. I posted a video about it and how its helped to creat a boom in bike building in Portugal a few days back.

Edit: rechecking it's 48.5% on cheap bikes and between 24 and 80% on electric bikes:

https://www.unionsportcycle.com/les-actualites/2019-01-18/l-ue-adopte-les-taxes-anti-dumping-sur-les-vae-chinois

Not 100% on this but it looks like Trek have bumped their prices by about 14%, don't they have a central facility in the Netherlands.

They may well do, but that doesn't help us here in the UK outside of the EU. That new border means that every time a product crosses it there is now a tariff to be paid*. So Trek bikes coming here from the Netherlands are going to cross the new trade border and get a 14% bill added to them. Hence the price rises.

*IF they don't qualify as EU in origin of course.

These price hikes should only last as long as it takes for the likes of Trek to import containers direct from Taiwan to a UK port, at which point the prices should be lower than in the EU given the tarifs set by the UK.

The EU-UK tarif structure was set up with the intention of stoping unfair competition betwwen the two, not to stop the UK fixing it's own tarifs with the rest of the world and allowing UK consumers to benefit from them.

These price hikes should only last as long as it takes for the likes of Trek to import containers direct from Taiwan to a UK port

Although I would guess there is a good reason why Trek didn't do this already since they've historically had to reship from Netherlands to the UK (which would have cost more than shipping within the UK). One way or another they're now going to have additional costs which will get passed on to UK customers.

And import tariffs are put in place to protect domestic manufacturers, so reducing tariffs makes UK made products less competitive within the UK.

at which point the prices should be lower than in the EU given the tarifs set by the UK.

They're the same at the moment and no reason to think they'll come down (HM gov could do with the money)

Mefty to the forum. 🙂

Are you sure about that, Ben? The EU has some specific ant-dumping tarifs on bikes I've refered to above, a complete bike tarif and a parts tarif.

You can write what you like and try to put 'fixed' numbers on the Tories successful zero tariff deal but back in the real world we have found massive variability on what our export customers are having to pay, almost as if it's all made up on the spur/whim of the moment. Frinstance: EU customer required to pay local VAT (expected) Shipping company import admin paperwork fee €20 (not expected) and a 20% 'customs tariff' (WTF?)
No wonder the EU debated and ratified the deal in one day.
The UK public has been royally shafted by Boris.

Are you sure about that, Ben? The EU has some specific ant-dumping tarifs on bikes I’ve refered to above, a complete bike tarif and a parts tarif.

There's many dumping tariffs not sure what will happen to them but they dont apply to Taiwan. Lots of bikes are consigned from Vietnam, Cambodia etc. I think Vietnam is now slightly cheaper than before but not much, Cambodia i dont know.

These price hikes should only last as long as it takes for the likes of Trek to import containers direct from Taiwan to a UK port, at which point the prices should be lower than in the EU given the tarifs set by the UK.

I'm sure they would have already assessed this, it maybe not worth their while since they would have set up premises and staff it when compared with sales in the UK. I don't know what their sales values are like in the UK, but the UK is now a small market for anyone selling from Europe.