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   The  Commission has decided to impose provisional anti-dumping duties  on
   imports of bicycles originating in China.  The rate of duty was fixed  at
   34.4%  of the net, free-at-Community-frontier price not  cleared  through
   customs.

   This  is  the  outcome  of  the  proceeding  initiated  in  December 1991
   following  a complaint by the European Bicycle Manufacturers  Association
   (EBMA) concerning imports from the People's Republic of China and Taiwan.

   The investigation revealed a dumping margin of only 1.05% in relation  to
   imports from Taiwan and this can therefore be considered as negligible.

   However,  the findings of the investigation in relation to  imports  from
   China were as follows:

   -   The  dumping margin obtained by comparing normal values  with  export
       prices was 34.4%.

   -   Imports  of dumped bicycles originating in the People's  Republic  of
       China  rose from 693 600 units in 1989 to 2 100 600 units during  the
       investigation period, representing an increase of more than 200% over
       a  period of two years and nine months, i.e. an average  increase  of
       more  than 70% per year. Consumption in the Community also  increased
       but  to a much lesser degree, i.e. from 15 045 600 units in  1989  to
       19 910 500 units during the investigation period, which represents an
       increase of 32.2% over the period concerned. The market is valued  at
       approximately ECU 3 000 million.

   -   The Chinese producers increased their market share from 4.6% in  1989
       to 10.5% during the investigation period. By contrast, the  Community
       saw  its  market  share drop from 33% to 27%  between  1989  and  the
       investigation period.

   -   The  average difference between the prices of imported  products  and
       the prices of Community industry was 43.8%.

   -   Production  in  the  Community  industry  concerned  increased   from
       5 673 000  units  in 1989 to 5 945 000 units  for  the  investigation
       period.

   -   In  order  to maintain or improve its presence on  a  bicycle  market
       characterized by growing demand, the Community industry increased its
       production  capacity  from 8.7 million units in 1989 to  9.1  million
       units  in  the investigation period. However,  since  production  and
       sales  could not be increased in line with the growth of the  market,
       capacity  utilization initially increased from 65% in 1989 to 71%  in
       1990 but dropped again to 65.1% during the investigation period.

   -   The  level  of the stocks held by the Community  industry  rose  from
       325 000   units  in  1989  to  410 000  units  at  the  end  of   the
       investigation period, i.e. an increase of 26%.

   The  Commission  has therefore reached the following  conclusions  as  to
   injury:

   The  Community market in bicycles has expanded by more than 50% over  the
   last  four years. In normal circumstances, this substantial  increase  in
   consumption  should have allowed the Community industry to  benefit  from
   increased  quantities  leading to reduced costs  and  increased  profits.
   However, the Community industry did not benefit from the increase in  the
   market.  Since sales stagnated, it has lost market share to the  Chinese,
   who  tripled  their exports between 1989 and  the  investigation  period.
   Increased  stocks  led  to increases in costs. The  pressure  exerted  by
   exporters  from the People's Republic of China on bicycle prices  in  the
   Community  eroded  profitability and frustrated the  investments  of  the
   Community   industry.   However,  these  investments   demonstrated   the
   commitment of that industry to bicycle production and its willingness  to
   remain competitive.

   All  these  factors  have  had an adverse  effect  on  the  economic  and
   financial  situation  of the Community industry  which,  accordingly,  is
   considered  to  have suffered material injury within the meaning  of  the
   legislation on anti-dumping.

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