Bicycle export to Germany faces blow

Bangladeshi-made bicycle export to its largest market Germany is facing a blow following German imposition of anti-dumping duty with other tariffs suspecting its Bangladeshi origin, sources said.

Presently, Bangladesh alone earns around 25 per cent of its total bicycle export volume from the EU country.

Meanwhile, domestic bicycle manufacturers and exporters have requested commerce ministry to act in lockstep with German embassy in Dhaka and Bangladesh embassy in Berlin for the greater good of Bangladesh.

To this end, the Bangladesh Bicycle and Parts Manufacturers and Exporters Association (BBPMEA) president has sent a letter to the ministry for action.

"Germany is considered as the largest buyer/importer of our bicycles for long. But in recent times, our importers in Germany are facing serious trouble with German customs, particularly at Hamburg port, as Bangladeshi bicycles are doubtful to them as Chinese origin."

"On the basis of their reasonable doubt as to the authenticity of the bicycles exported from Bangladesh, German customs are charging full tariff with anti-dumping duty from importers," he added.

The association claimed such attitude is fully against the principle of GSP verification policy under the administrative cooperation of the EU rules of origin.

"German customs are challenging Bangladesh bicycles as Chinese origin unnecessarily, which may result in a debacle for our bicycles in German market," he cited.

For this, German bicycle importers are all nervous, worried, anxious, disappointed and, to some extent, frightened on the issue.

If this situation continues, the association fears, Bangladeshi bicycle export to Germany may be stopped fully in the days to come.

For this, Bangladesh is likely to lose foreign exchange to the tune of $30-40 million annually.

In this connection, the verification policy indicates that if any deviation or violation against the origin is doubtful to the respective customs of EU they are supposed to inform the local authority or Export Promotion of Bangladesh (EPB) to verify its authenticity of declaration of the exporting country.

Industry insiders said there is no deviation under the rules of origin and "for which we are ready to face the investigation from their end or local end".

Bicycle exporters are the EU's REX-registered. They have received the export trophy on a regular basis with status and reputation for the last two decades.

The European anti-fraud office (OLAF) team has visited bicycle factories in Bangladesh for a number of times and they expressed utmost satisfaction on these visits, they mentioned.

Even officials from the EU delegation in Dhaka have visited the factories very recently.

Bangladesh has been exporting bicycles to EU countries with a zero-tariff facility under the EBA (2001) and the REX system since 2019.

Under this facility, the volume of bicycle exports to EU countries enhanced to the tune of $167.5 million in fiscal year (FY) 2021-22.

A total of 1.0-million bicycles were exported in the global market in FY 2020-21.

Bicycle exporters now enjoy 4.0-per cent export subsidy, according to a Bangladesh Bank circular.

"We're working on this issue and commerce ministry is supposed to communicate with the authorities concerned in this connection," EPB vice-president AHM Ahsan told the FE on Friday.

According to the EU Commission, the REX is a system of certification of origin of goods based on a principle of self-certification.

The origin of goods is declared by economic operators themselves by means of so-called statements on origin.

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