EU court ruling affects e-bike components

A recent decision by the European Court of Justice could change how electric bicycle components are taxed when imported into Europe. The ruling allows customs officials to treat multiple separate imports of parts as a single finished product, potentially increasing the taxes applied to them.

Customs duties may rise sharply

If components are reclassified as complete bicycles, they could be subject to higher tariffs. For parts imported from China, this could mean taxes as high as 70.1 percent, with additional compensatory duties of up to 17.2 percent. This has raised concerns among European manufacturers and industry groups like LEVA-EU.

Case involves Belgian importer

The ruling came from a case involving a Belgian importer who sent 27 separate shipments of e-bike components between 2019 and 2021. Belgian customs authorities reconstructed full bicycles from these parts and claimed over 2.9 million euros in duties had been avoided. The Antwerp Court of Appeal sought guidance from the European Court of Justice, which led to the current decision.

Ruling defines 'whole product'

The court said that components declared separately can still be considered a complete product if objective factors show they form a whole with the essential parts of an electric bicycle. This means even if parts are imported months apart, they might be taxed as if they were a single unit.

Industry fears retroactive charges

LEVA-EU, representing European e-bike manufacturers, is worried about the lack of clarity in the ruling. They are concerned about how to determine which components are essential and how long the time interval between deliveries can be. The association also fears that past imports could be taxed retroactively or even lead to criminal investigations.

Alternative tax exemption exists

LEVA-EU is pushing for an existing anti-avoidance mechanism to be used instead. This method, already applied to traditional bicycles since 1997, allows European assemblers to avoid duties on essential Chinese components. Under this system, European manufacturers are exempt from certain taxes on imported parts, while non-European assemblers are not.