Contesting the penalty – the 62.5% bicycle import tax that no one knows about
Friday, March 14th, 2008Over 90% of bicycles on the road in the UK are imported from outside the European Union. Only a very small percentage are actually built here, despite the impression you are given by manufacturers. As it happens, our bicycles are made within the EU and we are extremely proud of the quality assurances this brings.
A vast proportion of bicycles are imported from China and are subject to two forms of taxation, culminating in an extraordinary 62.5% tax (NONE of which is reclaimable), before VAT!
- The first charge that the importing company has to pay is called an ‘anti-dumping’ duty. This is a charge which is put on any item (in this example bicycles) which is being imported from countries like China where it is made cheaply, but could be manufactured closer to home. This is the penalty for not buying from inside the European Union. The penalty is 47.5% of the value of the bicycle.
- The second charge is known as ‘import duty’, which in the case of bicycles is 14%. We agree with the need for import duties; there are mountains of paperwork that follow importing and these costs need to be covered. But what we will not accept is the fact that combined, these charges mean that we have to charge you 62.5% MORE for your bicycle. Is this helping encourage getting people out of cars and onto bicycles? No.
We love our bicycles. We have shipped them all over the world, including the USA, across Europe and as far north as the Outer Hebrides. To see our bicycles – click here. To contact us – click here
What will they tax us for next, growing trees?
