News
No 10 says duty drop for bikes is not in its power
Carlton Reid Aug 14 2008, 5:36pm
Comments (5)
A petition on the No 10 Downing Street website urged the scrapping of import duty on bicycles but No 10 said no
The petition read:
“Almost all bicycles sold in the UK are manufactured in the Far East. UK manufacturing on any large scale ended some time ago. Bicycles are subject to an import duty of 14 percent which, when compared to consumer electronics rates of near zero, is bonkers. We have childhood obesity issues, congestion, global warming and an aging population that needs exercise. The bicycle has a role to play in the resolution of all these issues. It seems crazy that the tax regime encourages a kid to sit in front of a bicycle extreme sports computer game rather than go out and ride his bike.”
The Government's response was straightforward: import duties stay until after the current long-running world trade negotiations have been settled.
"Import duties are set at the level of the European Community (EC) and the United Kingdom Government cannot unilaterally raise or lower them.
"The levels of import duty that are currently in place reflect what it has been possible to negotiate during various multilateral trade negotiations. The most recently completed round was the so-called Uruguay Round which was concluded in 1994.
"Such negotiations are, in effect, a series of separate but related talks on a number of issues that impact on global trade. As such, nothing can be implemented until everything is agreed.
"The current round of trade negotiations – known as the Doha Development Agenda (DDA) – is taking place at the World Trade Organisation (WTO). Progress is regrettably slow. Lack of consensus on how to treat trade in agricultural goods has impacted negatively on all other elements of the negotiations – including talks on a tariff reducing formula. If the current round is concluded, the Government is hopeful that the import duty on bicycles will fall progressively to a level less than half the current 14%.
"The Government fully supports the aims and objectives of the DDA because a successful liberal outcome will be good for consumers and business in developing and developed countries. To this end we are working closely with other EC member states and all other WTO member countries."
A drop in import duty would have been welcomed by many EU bicycle suppliers. One told BikeBiz.com:
"There are massive price increases on the way for 2009 model year. The increases are between 13 to 20 percent and if suppliers could claw back 7 percent everybody would be in better shape."
Comments
“Import/Export”
Posted by: James Donohue - Aug 14, 7:10pm
Most of the bicycles manufactured in the United States are Recumbent Bicycles. Perhaps they have some protection from imports on account of their size, which makes them difficult to ship?
“Re: Import/Export”
Posted by: G - Aug 15, 11:41am
A zero rating for VAT would be a start - that is fully in their power to do . . . . . .
“Re: Import/Export”
Posted by: BigDutch - Aug 15, 11:46am
What a disgraceful state of affairs when we cannot set the rate at which we charge import duty into our own country. Smacks of a cop-out to me.
If they won't drop the import duty then why not adjust the rate of VAT they charge for bikes & accessories? Still has the same effect, the money still comes from the same place and the end user still benefits.
In the grand scheme of things money lost through reduction of VAT on bikes & parts is a drop in a very large bucket and shouldn't effect Public spending.
“Re: Re: Import/Export”
Posted by: MarkSutton - Aug 15, 12:42pm
"A zero rating for VAT would be a start - that is fully in their power to do . . . "
Sadly not. our government is again bound by Brussels on all VAT changes. It is down to the EU to make all decisions on what imports can take place minus VAT. I'm told cycling may be due a review, but that could be a lie. These things take a while, if at they ever take place...
“Re: Re: Re: Import/Export”
Posted by: Peter Cole - Aug 18, 5:49am
There is more to life than “Made in the far east”
UK manufacturing may have been “killed off” by short sighted politicians and business practices, but it is still alive and strong in many other European countries. EU import duties help to protect these businesses from extinction. Thanks to the EU there are NO duties to be paid when trading within the EU, as costs rise outside the EU companies that have “survived” will thrive again.