Exemption from anti-dumping duty through application of the end-use procedure regarding certain bicycle parts – for conventional bicycles – originating in China

Certain essential bicycle parts – for conventional bicycles – originating in China can be imported under the end-use procedure, in which case no anti-dumping duty needs to be paid for them.

Exemption from the anti-dumping duty can be granted to a small-scale trader regarding no more than 299 units or – in the case of parts presented in sets – 299 sets per type of essential bicycle parts imported by or delivered for the trader during one calendar month (the so-called de minimis rule, Commission Regulation (EC) No 88/97 article 14 (c)). 

The Regulation has been amended by Commission Implementing Regulation (EU) 2023/611, where e.g. the method for calculating the monthly imports of no more than 299 units of essential parts has been amended. The amendment entered into force on 21 March 2023. If a written end-use authorisation has come into effect on 21 March 2023 or thereafter, the new calculation method is applied from the day the authorisation came into effect. If the end-use authorisation has been applied for with a customs declaration, the calculation period begins on 21 March 2023 or from the first import declared after that date. At the same time, it is possible to apply for exemption from the erga omnes third country duty for certain essential parts for conventional bicycles on the basis of either an autonomous tariff suspension or an autonomous tariff quota.

Please note that if you are planning to import a greater number of essential parts for conventional bicycles than it is possible to import during the calculation period, you must make a request for exemption from the anti-dumping duty in writing to the Commission. Read more specific guidance on making the request in Commission Regulation (EC) No 88/97. Send the request to the address indicated in the Regulation.

When is the exemption not applicable?

The exemption from anti-dumping duties described in this instruction is not applicable in the following situations:

  • If you are importing essential parts originating in China, used for assembly of e-bikes, e-scooters or regular scooters.
    • The additional procedure 665 can be applied to imports of parts used for assembly of e-bikes, e-scooters or regular scooters and similar means of transport.
  • If the bicycle parts constitute a complete or incomplete bicycle upon import, which would be classified under heading 8712 00 (bicycles, not motorised).
    • Please note that the parts are considered to constitute a complete or incomplete bicycle even if the parts have been ordered from different consignors, when they have been packed in the same cargo unit and are presented to Customs at the same time.
    • Based on the CN Explanatory Notes to heading 8712 00, bicycle parts, whether or not assembled, are considered to constitute an incomplete bicycle if it consists of the frame, the fork and at least two of the following components:
      • a set of wheels
      • a crank-gear (see the explanatory note to subheading 8714 96 30)
      • a steering unit (including handlebar and handlebar stems),
      • a brake system.

The essential parts are established in Article 1 of Council Regulation (EC) No 71/97. The following are considered to be essential bicycle parts (the commodity codes were updated and checked on 8 November 2022):

  • painted, anodized, polished and/or lacquered frames (CN code ex 8714 91 10)
  • painted, anodized, polished and/or lacquered front forks (CN code ex 8714 91 30)
  • derailleur gears (CN code 8714 99 50)
  • crank-gear (CN code 8714 96 30)
  • free-wheel sprocket-wheels (CN code 8714 93 00) whether or not presented in sets
  • other brakes (CN code 8714 94 20) whether or not presented in sets
  • brake levers (CN code 8714 94 90) whether or not presented in sets
  • complete wheels with or without tubes, tyres and sprockets (CN code 8714 99 90) whether or not presented in sets
  • handlebars (CN code ex 8714 99 10).

Free-wheel sprocket-wheels, brake levers, other brakes and complete wheels can be presented in sets or in some other way. This means that if these parts are presented in sets, on average no more than 299 units of each set per month can be placed under the end-use procedure during the 12-month calculation period.

How to obtain exemption from the anti-dumping duty

The bicycle parts must be declared for the end-use procedure upon import. You need an authorisation granted by Customs for the use of the procedure. You can apply for the authorisation with a customs declaration or in writing in advance.

You can use the imported parts in production or also deliver them to another trader, as long as your average monthly imports per type of essential bicycle parts or parts presented as sets don’t exceed the maximum of 299 units during the calculation period. The calculation period is 12 months. The maximum amount of parts used in the production of conventional bicycles during a calculation period is calculated using the formula 12 months x 299 units = 3 588 units. The trader must see to that, during the calculation period, the imports of parts used in the production of conventional bicycles will not exceed this maximum amount.

If you transfer the parts to the responsibility of another trader, a transfer of rights and obligations of the holder of the procedure (TORO) must be made. The total number of the essential bicycle parts or parts presented in sets, self-imported and received through TORO, may not exceed the maximum of 3 588 units for the calculation period. Read more in the customer bulletin Transfer of the rights and obligations of the holder of the procedure (TORO) to another person in the end-use procedure (available in Finnish and Swedish, link to Finnish)

Time limit and discharge of the procedure

Regarding the end-use procedure, there is always a time limit for discharging the procedure, in this case one calendar month.

The procedure is discharged by submitting a bill of discharge to the supervising customs office, indicating that the goods have been put to the prescribed end-use. The bill of discharge must be submitted within 30 days of expiry of the time limit for discharging the procedure. In this case, the trader indicates the end-use by bringing in no more than 3 588 units or sets per type of essential bicycle parts for the end-use procedure during the 12-month calculation period.

See the guidance about submitting a bill of discharge on the page End-use.

Guarantee is required

There must always be a guarantee for goods released for the end-use procedure. The guarantee is required for the unlevied anti-dumping duties. The guarantee remains reserved until the bill of discharge sent by the trader has been processed by the supervising customs office.  

If it is found that the trader has placed under the procedure or has had delivered to it more than 299 units per type of essential bicycle parts per calendar month, a customs debt is only incurred for the goods that exceed this number.

Provide the following details in the customs declaration:

  • requested procedure “44 – End-use”
  • previous procedure or “00 – No previous procedure”, if there is no previous procedure
  • additional procedure code 655
  • preference code “100 – Erga Omnes third country duty rates”
  • nature of transaction that best describes your activity, e.g. “11 – Outright purchase/sale”
  • three additional information codes, the first two are for reserving a liability guarantee: 
    • ”FICOM – Secondary commodity code” and, as its description, the 10-digit commodity code for the import goods that would be used if the goods were not imported for end-use
    • "FIPRE – Secondary preference” and, as its description, the preference code “100”  
    • ”FIPLK – Anti-dumping/countervailing additional code” and, as its description, the importer-related code for anti-dumping duty ”8900 – Others”, when you are importing parts for a regular bicycle.
  • an end-use authorisation in accordance with a Taric condition covering the commodity code as follows:
    • If you are a message declarant, provide the authorisation at goods item level under “Additional documents”, using the code “D019”. If you have a written authorisation, provide the authorisation number as the identifier. If you apply for an authorisation with a customs declaration, provide ”N/A” as the identifier.
    • If you are a submitting the declaration in the Customs Clearance Service, provide the authorisation at goods item level under “Taric information and Certificates”, using the code “D019”. If you have a written authorisation, provide the authorisation number as the reference. If you apply for an authorisation with a customs declaration, enter the text ”N/A” as the reference.

If you have an authorisation granted by the Customs Authorisation Centre

Provide the authorisation details in the customs declaration as follows:

  • in message exchange under “Authorisations”
  • in the Customs Clearance Service in the first choices after choosing the procedure.

If you apply for an authorisation with a customs declaration

When you’re applying for an authorisation in the Customs Clearance Service, provide the details required for special procedures under ‘Authorisation request.’ You must provide the same details under “Authorisation request” as in message exchange. 

When you’re applying for an authorisation with a message declaration, provide the detail about applying for an authorisation using the additional information code “00100 – Application for authorisation for the use of a special procedure other than transit based on the customs declaration”. 

In addition, provide the additional information for special procedures as follows:

  • The time limit for the procedure is always one month, so enter “1” in the field “Time limit for the procedure”. If you are a message declarant, use the code “FIXBH – Period for discharge (length in months; reasons)”.
  • The customs office supervising the procedure, only in message exchange with the code ”FIXAA – Supervising customs office”.
    • In Finland, always enter “FI002000 – Electronic Service Centre”
  • Customs office(s) of discharge, with the customs office identifier. If you are a message declarant, use the code “FIXBJ – Customs office(s) of discharge”.
  • All places of processing and use as well as their address details. If you are a message declarant, use the code “FIXAC – Place(s) of processing or use”.
  • Details of planned activities regarding the goods to be placed under the procedure, e.g. bicycle assembly. If you are a message declarant, use the code “FIXBN – Details of planned activities”.
  • Rate of yield of the goods as a measurement unit or a percentage (e.g. 100% when all products are used). If you are a message declarant, use the code “FIXBO– Rate of yield”.
  • The processed product obtained from the goods with a 10-digit commodity code. Provide also the goods description of the product obtained from the processing. “If you are a message declarant, use the code “FIXBP – Processed products (CN code; description)”.
  • Always provide the procedure record code “7” as identification of goods, as well as the address where the procedure records are stored. You can also enter other identification details by which the goods can be identified even after processing. If you are a message declarant, use the code “FIXBQ – identification of goods”. Always provide the code “7” as identification of goods, and you can also choose one of the following identification codes:
    • 1 – Serial number or manufacturer number 
    • 2 – Affixing lead seals, seals, stamps or other similar distinguishing signs 
    • 4 – Taking samples and using illustrations or technical descriptions  
    • 5 – Carrying out analyses 
    • 7 – Other means of identification (an explanation to be provided on the means of identification used). 

Only the general third country duty is levied on the goods upon import. If the importer is not VAT-registered with the Finnish Tax Administration, Customs will also levy the VAT on the goods. 

How to obtain exemption from the general customs duty and the anti-dumping duty

Some essential parts for conventional bicycles can be exempted not only from the anti-dumping duty but also from the general third country duty. In that case, the parts must be declared for the end-use procedure and, at the same time, a claim must made for an autonomous tariff quota regarding the parts (preference code 120) or to apply for the application of an autonomous tariff suspension (preference code 110).

You will need an authorisation granted by Customs for the use of the end-use procedure. You can apply for an end-use authorisation with a customs declaration or apply for a written authorisation in advance from the Customs Authorisation Centre. The imported goods must also fall within the provided tariff quota, the claim for which shall always be made with a customs declaration. If you wish to use an autonomous tariff suspension, apply for an end-use authorisation and provide the preference code of the autonomous tariff suspension in the customs declaration. 

The maximum number per type of essential bicycle parts or parts presented as sets, on average 299 units per month, shall not be exceeded during the calculation period. The calculation period is 12 months. The maximum number of parts used in the production of conventional bicycles during a calculation period is calculated using the formula 12 months x 299 units = 3 588 units. The trader must see to that, during the calculation period, the imports of parts used in the production of conventional bicycles will not exceed this maximum number.

Please note that if the bicycles are assembled at several addresses, all the places of processing must be provided when applying for the authorisation.

The trader must use the imported parts for the manufacturing of bicycles. If the goods are transferred to the responsibility of another trader, a transfer of rights and obligations of the holder of the procedure (TORO) must be made. The total number of the essential bicycle parts or parts presented in sets, self-imported and received through TORO, may not exceed the maximum of 3 588, for the calculation period. Read more in the customer bulletin Transfer of the rights and obligations of the holder of the procedure (TORO) to another person in the end-use procedure (available in Finnish and Swedish, link to Finnish)

Time limit and discharge of the procedure

Regarding the end-use procedure, there is always a time limit for discharging the procedure. In this case, the time limit is the period you need for the manufacturing of bicycles. If the manufacturing takes longer than twelve months, give reasons for the period you need. The customs supervision ends when the imported parts have been put to the end-use, i.e. the parts have been used for assembling a finished regular bicycle.

A bill of discharge must be submitted to the supervising customs office for the goods, indicating that the goods have been put to the prescribed end-use. The bill of discharge must be submitted within 30 days of expiry of the time limit for discharging the procedure. Under this procedure, the trader proves on the basis of records that the goods have been put to the end-use, i.e. that regular bicycles have been manufactured using the parts. As the method of identification, enter “records” and the address where the records are stored.

See the guidance about submitting a bill of discharge on the page End-use.

Guarantee is required

There must always be a guarantee for goods released for the end-use procedure. The guarantee is required for the unlevied third country duty and anti-dumping duty. The guarantee remains reserved until the bill of discharge sent by the trader has been processed by the supervising customs office.  

If it is found that the trader has placed under the procedure or has had delivered to it more than the maximum of 3 588 units per type of essential bicycle parts during the calculation period, a customs debt is incurred.

Provide the following details in the customs declaration:

  • requested procedure “44 – End-use”
  • previous procedure or “00 – No previous procedure”, if there is no previous procedure
  • additional procedure code 655
  • preference
    • “120 – Non-preferential tariff quotas”, if you are claiming a quota
    • “110 – Erga Omnes autonomous tariff suspension”, if you are applying for the application of an autonomous tariff suspension
  • the number of the quota you are claiming, if you are claiming a quota
  • nature of transaction that best describes your activity, e.g. “11 – Outright purchase/sale”
  • three additional information codes, the first two are for reserving a liability guarantee: 
    • ”FICOM – Secondary commodity code” and, as its description, the 10-digit commodity code for the import goods that would be used if the goods were not imported for end-use
    • ”FIPRE – Secondary preference” and, as its description, the preference code “100”  
    • ”FIPLK – Anti-dumping/countervailing additional code” and, as its description, the importer-related code for anti-dumping duty ”8900 – Others”, when you are importing parts for a regular bicycle
  • There are two Taric conditions covering the commodity code that require the end-use authorisation. Provide the details as follows:
    • If you are a message declarant, provide the authorisation at goods item level under “Additional documents”, using the codes “D019” and “N990”. If you have an authorisation granted by the Authorisation Centre, provide the authorisation number as the identification for both. If you apply for an authorisation with a customs declaration, provide ”N/A” as the identifier for both.
    • If you are a submitting the declaration in the Customs Clearance Service, provide the authorisation at goods item level under “Taric information and Certificates”, using the codes “D019” and “N990”. If you have an authorisation granted by the Authorisation Centre, provide the authorisation number as the reference for both. If you apply for an authorisation with a customs declaration, enter the text ”N/A” as the reference for both.

If you have an authorisation granted by the Customs Authorisation Centre

Provide the authorisation details in the customs declaration as follows:

  • in message exchange under “Authorisations” 
  • in the Customs Clearance Service in the first choices after choosing the procedure.

If you apply for an authorisation with a customs declaration

When you’re applying for an authorisation in the Customs Clearance Service, provide the details required for special procedures under “Authorisation request”. You must provide the same details under “Authorisation request” as in message exchange. 

When you’re applying for an authorisation with a message declaration, provide the detail about applying for an authorisation using the additional information code “00100 – Application for authorisation for the use of a special procedure other than transit based on the customs declaration”. 

In addition, provide the additional information for special procedures as follows:

  • Time limit required for using the procedure in whole months. If you are a message declarant, use the code “FIXBH – Period for discharge”.
  • The customs office supervising the procedure, only in message exchange with the code ”FIXAA – Supervising customs office”.
    • In Finland, always enter “FI002000 – Electronic Service Centre”
  • Customs office(s) of discharge, with the customs office identifier. If you are a message declarant, use the code “FIXBJ – Customs office(s) of discharge”.
  • All places of processing and use as well as their address details. If you are a message declarant, use the code “FIXAC – Place(s) of processing or use”.
  • Details of planned activities, e.g. bicycle assembly. If you are a message declarant, use the code “FIXBN – Details of planned activities”.
  • Rate of yield of the goods as a measurement unit or a percentage (e.g. 100% when all products are used). If you are a message declarant, use the code “FIXBO– Rate of yield”.
  • The processed product obtained from the goods placed under the procedure, with a 10-digit commodity code. Provide also the goods description of the product obtained from the processing. “If you are a message declarant, use the code “FIXBP – Processed products (CN code; description)”.
  • Always provide the procedure record code “7” as identification of goods, as well as the address where the procedure records are stored. You can also enter other identification details by which the goods can be identified even after processing. If you are a message declarant, use the code “FIXBQ – identification of goods”. Always provide the code “7” as identification of goods, and you can also choose one of the following identification codes:
    • 1 – Serial number or manufacturer number 
    • 2 – Affixing lead seals, seals, stamps or other similar distinguishing signs 
    • 4 – Taking samples and using illustrations or technical descriptions  
    • 5 – Carrying out analyses 
    • 7 – Other means of identification (an explanation to be provided on the means of identification used).

If the importer is not VAT-registered with the Finnish Tax Administration, Customs will levy the VAT on the goods upon import.