4 Solutions To Avoid Or Reduce Anti-dumping Tax of Electric Bike

Since 1993, the EU imposed anti-dumping duties on imported Chinese bicycle. The import tariff is up to 48.5%. In 2019, the EU imposed anti-dumping duties on Chinese e-bikes, duties ranges from 33.4% to 79.3%.

Customers import electric bike from China, they have to pay high taxes. We can not change EU decision, but we will provide 4 solutions to help you avoid or reduce anti-dumping tax.

Here are 4 solutions we offer:

1. CO - Certificate of Origin from a country with good relations

2. CKD - Completely knocked down

3. DDP - Sellers deal with all things

4. Localization - Open branch company in Europe

Different solutions need to prepare different papers, in order to operate correctly to reduce tax, please read clearly.

1. CO - Certificate of Origin from a country with good relations

If you provide Certificate of Origin from countries with amicable relations, there is no anti-dumping tax for e-bikes being imported to the EU and UK. However, it is crucial to note that merely transporting electric bikes from China to third countries, and subsequently obtaining a CO there, is also deemed illegal. Encountering scrutiny from local authorities can result in severe fines, penalties, or even dire consequences.

The best way is to deliver the raw material to third countries such as Vietnam, South Korea, Malaysia, Indonesia, etc., assemble e-bikes locally, and then transport them to the Europe. When doing customs clearance, you need to provide documents to prove that 45% of the raw materials are not from China. For other precautions, you can contact us directly. Please noted, we only talk about business, do not involve any country's politics.

2. CKD - Completely knocked down

For electric bike raw material, EU is no anti-dumping tax. That means you can import frame, wheel set, front fork, display... separately. You must be careful, in one container, all raw material can not assemble a whole electric bicycle. European customs is stricter than before.

3. DDP - Sellers deal with all things

DDP stands for Delivered Duty Paid, it is door to door service. Sellers ship electric bike to buyer’s warehouse or home address and take charge in customs clearance and paying importing tax. After you make payment, you only need to wait without doing any anything.

It is very convenient for individual and startups. But DDP is not kind for big companies. 

Sellers do Customs declaration and clearance, and do not provide tax proof. In the EU, the governments have 6-10 years of valid rights to inspect all the market products. If you can not provide legal paper, you will face a great fine. Besides, you can not get a tax refund of VAT. The last one is customers can not get government subsidies.

4. Localization - Open branch company in Europe

Some Chinese companies have set up branch factories in Europe, but not all companies can do it. It needs to invest many finance and human power. If we need to 100% avoid anti-dumping tax, we must comply with this policy, at least 45% raw material from other countries, rather than China. (European governments are becoming more and more strict in censorship. Do not import all raw materials from China. Once discovered, you will face punitive fines.)

Purchasing price for European customers is not the lowest, beacuse the labor cost, management cost, production cost, land cost and any other costs in the EU are not low.

In a conclusion, we will provide best solutions to help you avoid anti-dumping tax. We have rich experience in CO, CKD, DDP solutions. Let contact us!