German bike manufacturer Canyon has resumed bike sales to parts of the UK, after working to smooth out the process of importing bikes for customers in England, Scotland and Wales. Canyon appears to be covering some of the additional import costs that came into effect at the end of the Brexit transition period, but the rest is reflected in price rises that customers will have to pay.
After an initial price increase towards the end of last year, Canyon has announced that prices have increased again for UK buyers, citing the additional costs associated with the increase in import duties when sending products from the EU to the UK.
However, it appears that Canyon is absorbing some of the additional fees, a measure that is certainly not required of Canyon.
What are the new rules?
The Bicycle Association has summarised the new rules regarding bikes in an article that analyses the implications of Brexit for the bike industry:
“Basically, the ‘deal’ specifies that goods can move between GB and EU with zero tariffs, but only if they “originate” in the UK or EU. Essentially the idea is that only goods which have significant value added in either EU or UK (or a combination of UK and EU) get the zero tariffs. Goods ‘just’ imported from elsewhere do not.”
Under the new ‘deal’, all bikes that aren’t electric are subject to tariffs should the value of parts imported from outside of the UK or EU that are used to make each bike exceed 45% of the overall value. For e-bikes, it’s 50%.
> Brexit and the bike industry: we ask UK brands, retailers and distributors how the new rules are affecting them
Given that the majority of factories involved with the manufacturing of frames and components are based outside of the UK and EU, a sizeable proportion of bikes coming into the UK that are ordered from the EU are subject to a new 14% tariff.
Crunching the numbers
Taking the Canyon Aeroad CF SL 8 Disc as an example, the price rose from £3,799 to £3,949 in November 2020, and it has since jumped again for UK buyers up to £4,149. That represents an increase of 9.21% over the starting figure, and 5.06% more than the price it was in November.
Neither of these price increases nor the overall price increase is as as much as 14%. Canyon states that “all duties and handling fees are included in the price of your bike which means you’ll never have to pay any hidden fees when your bike arrives on British soil”; so it seems that Canyon has decided to absorb some of the additional costs to keep prices down for UK customers.
> Brexit: New VAT rules see EU cycling brands stop online sales to UK shoppers
Canyon is also keen to stress that the ordering process for UK customers is made as smooth as possible, and that the reason for the price increases at the point of sale is to prevent any additional costs when the bike arrives with the customer.
Canyon adds: “We’re doing all we can to minimise disruption while we modify our processes to comply with new legislation as a result of Brexit. This includes changes to our pricing format to cover any applicable duties or customs handling fees. The benefit is the pricing you see on our website and during checkout is the final pricing, and there are no additional fees once your Canyon order arrives with you.”
E-bikes
At the time of writing, Canyon is not yet shipping e-bikes to the UK due to “extra conditions of shipment” which they are still working out. Canyon points customers to its special Brexit FAQs page, where updates on e-bikes will be posted.
> British bike manufacturers fearing cheap Chinese imports after Brexit
Northern Ireland
Differences in shipping regulations between the UK mainland and Northern Ireland mean that deliveries of Canyon bikes have not resumed for Northern Ireland. Canyon cites the “need to undertake additional systems changes” before shipping can resume.
Existing orders
Canyon says: “If you had an order in place that was due to ship between the 19th of December 2020 and the 15th of January 2021, we will be sending out further details about your order shortly. This will include an updated order confirmation and any instructions to confirm payment should this be outstanding.”
This could mean that orders placed before the Brexit transition period ended will be subject to additional costs before the bike can be delivered.
If you have an order in place and have any questions, you can contact Canyon’s UK customer service team using their live chat or through the contact form here.
-1024x680.jpg "“Clear anti-cyclist bias”: Lawsuit filed against Toronto police after cop doored cyclist… before ticketing rider over incident")
70 thoughts on “Brexit price rises – Canyon covers some costs but UK buyers will still pay more”
If only all those old British
If only all those old British marques were still going strong and manufacturing in GB, this would be a wonderful opportunity for British manufacturing to get competing again in the UK market. But they aren’t. Good old Brexit.
It is of course still net
It is of course still net positive for the exchequer as it’s the government that collects the import tariffs. The only loser in this is the EU.
On the assumption that
On the assumption that arguements over tariffs etc are correct this statement will depend on the number of sales. Any price increase normally reduces demand and could lead to a reduction in import tariffs should the fall be large enough. One other factor which probably applies to high value bicycles is that people will make purchases abroad and then carry or ride them back to the UK. Here the UK government will lose as they will collect no tariff yet the EU manufacturer will still be making a profit. I remember the grey imports for cars many years ago, any price differential will be exploited. The real loser is the UK consumer.
If you study economics for 20
If you study economics for 20 minutes you’ll realise that the losers when tariffs are applied are consumers. Retail prices rise and less competitive domestic suppliers don’t have to work so hard to become more efficient.
So the overall impact is akin to a sales tax rise. And I don’t see anyone celebrating that.
As rich_cb says, the most important tariffs to remove are those on things we don’t produce, but in practice it’s a bit more transactional than that – we reduce tariff on item 1, they reduce on item 2 and we both benefit.
And the British people. But
And the British people. But when did we ever count in the eyes of the Vote Leave liars?
Nigel, it is patently obvious
Nigel, it is patently obvious that neither the exchequer or cyclists – or the industry – will benefit from these new arrangements, or Brexit in general. No need to delude yourself or mislead others, please. There is vastly more friction built in. I am a Brit now living in Girona, Spain, and I am sad to see what is happening to the UK, and not just with what’s happening to prices and businesses.
Out here cycling brands and businesses have virtually stopped buying in products from the UK. Some of it is teething troubles, but the Brexit ‘deal’ has locked-in customs charges and handling fees – far from what was promised. Tariffs are another matter again. Away from cycling, I made the mistake of ordering a guitar amplifier from the UK on the 3rd Jan, it is now stuck (I don’t know where) and I owe customs/tax and handling fees of around £200. I should’ve known better, naturally, but you see the problem if many other European people and businesses turn away from the UK. Same applies for British fish, too, sadly.
Sorry, I don’t understand
Sorry, I don’t understand this. What about VAT? How is this being factored in? Is this being paid on our behalf? I think you are saying that there is no value add, hence the tariff, so surely we therefore aren’t paying VAT, in which case that should come off the price? Or are Canyon swallowing this? Canyon are a business not a charity so won’t be doing anything for nothing, so let’s ask the right questions before we publish our benevolent Canyon story.
Yep, my understanding is that
Yep, my understanding is that VAT in Germany is set at 19% (UK at 20%) so we arent paying German(EU) VAT but they are paying the UK vat and in order to cover this they’ve popped another 5% on to account for currency fluctuations.
This doesnt take into account the previous 5% increase which is more attributable to supply and demand. The calculated total 9.21% increase over pre brexit rates is pretty standard for most large manufacturers in the current market e.g Giant, Specialized, Trek etc all of who are seizing their opportunity to squeeze a bit more out of us.
How is a 9% increase to the
How is a 9% increase to the customer, when there is a 14% tarrif increase, “squeezing a bit more out of us”?
It makes it more expensive to the customer, and less profitable for the manufacturer.
German VAT rates are
German VAT rates are irrelevant here.
Exports are zero rated for VAT.
The issue is UK import VAT (which is unchanged on large purchases) and the new tariffs (which are responsible for the lion’s share of the price increase).
This is going to make cycling
This is going to make cycling expensive as UK retailers don’t have to quantity of scale to import straight into UK and most bikes clothing etc is manufactured outside EU and imported in. Strange this wasn’t mentioned in the Brexit vote and equally applies to many other goods. Many said retailers would take the hit well why would they as the EU market is far bigger than the UK market.
UK manufacturers and shops
UK manufacturers and shops might also decided to adjust the UK prices upwards, because they don’t have to compete with the previous cheap prices from Canyon and others.
bluefuzzer wrote:
If they had said brexit will make cycling more expensive, it probably would have swung the vote further in favour of brexit
The 14% tariff for bicycles
The 14% tariff for bicycles to enter the UK is not set in stone.
The government could simply reduce the tariff to zero and the problem disappears.
There would also be the added bonus of cheaper bikes for everyone!
It could, but it hasn’t.
It could, but it hasn’t.
That is true but it’s only
That is true but it’s only been a few weeks, the whole reason for the rule of origin tariffs between UK and EU is to allow the UK to set its own tariffs that are markedly different from those of the EU.
Zero tariffs on items we do not manufacture make perfect sense.
UK businesses would gain an advantage over EU businesses when selling to the UK and would compete equally when selling to the EU.
Remind me, how long had the
Remind me, how long had the Government to think about It?
Draft tariffs have been
Draft tariffs have been published, obviously you wouldn’t want to announce anything concrete while negotiations with the EU were ongoing.
The government have made the right noises about free trade, let’s wait and see if they back that up with some serious tariff cutting.
I understand that and it is a
I understand that and it is a fair point.
In the meantime the Government (including the PM) shouldn’t make dishonest statements about there being no increased barriers to trade beween, for example, a German company and a UK company and vice versa.
It does seem that companies
It does seem that companies who essentially assemble imported components into a bike and slap on some paint are going to be hit hard by the new system. Canyon and Cotic being two recent examples.
Johnson is indeed being dishonest by failing to acknowledge this.
My hunch is that this is actually intentional, the Conservatives have been talking up the idea of free ports, the current situation is one in which free ports would flourish.
If (big if!) Canyon were to move their factory to a free port in the UK then they’d avoid this hassle whilst creating jobs for UK residents.
The numbers might not work for Canyon but there will be lots of companies that could gain significant advantages by moving to the proposed free port areas.
I hope the current situation is part of an overall vision for the future of UK trade and not just a cock up but I wouldn’t be surprised if the converse were true!
Tax havens aka Freeports
Tax havens aka Freeports legacy is mixed. Total net employment benefits were small, and the policy was costly.
The “localised freedom” of low taxes and deregulation can “act like a benign cancer”, rotting “the foundations of the unfree state around it”
And if bicycles move from the the ‘freeports’ to the mainland, tarifs are still due.
The entire point of free
The entire point of free ports is to simplify exports.
If you’re manufacturing in a Freeport area for distribution to the UK you will have no advantages over a manufacturer based in the rest of the UK.
When have the morons in
When have the morons in Johnson’s government every done anything that makes sense, or benefit the British people? Never. I won’t be holding my breath.
it could, if we wanted to
it could, if we wanted to reduce the price of bargain basement bikes sent direct from China
That would be another
That would be another advantage.
I don’t believe flooding the
I don’t believe flooding the country with disposable bikes that are a write off after 9 months as they cost more to repair than to buy is in anyones interest.
If they can pass the
If they can pass the requisite standards but only last 9 months that suggests that said standards are not fit for purpose.
The tariffs are irrelevant to your point.
bluefuzzer wrote:
Hope you are being ironic here!
It was mentioned, loud and clear – but just dismissed as ‘project fear’
Since this is about tariffs
Since this is about tariffs on products from the far east, does this mean tariffs are applied when arriving in Germany from Taiwan/ Japan, and then again when entering UK? Leading to cost increases?
Yes, exactly. Tarrif on the
Yes, exactly. Tarrif on the components imported to EU, and another 14% tarrif from EU to UK.
so the solution could be for
so the solution could be for Canyon to send frames and components direct to the UK and assemble here. They have a UK presence, but it’s just a sales office at the moment.
… I’m not sure that Canyon
… I’m not sure that Canyon would move jobs from Germany to the UK to eliminate a UK import tax to UK consumers – unless it were possible to profit from a share of the saving, which in turn would depend on volumes. Siemens does it with windfarms!
If a Canyon will now cost 14%
If a Canyon will now cost 14% more in the UK then Canyon will likely lose significant market share to Ribble etc.
Moving any of the assembly process to the UK would reduce that % difference and therefore lead to greater market share.
It all comes down to whether the sums add up for a UK factory.
Rich_cb wrote:
TBH they im theory could but they would probably be put off by the corporate tax they would incur. They are more likely to just carry on and cut us loose. If anyone wants to buy a bike their model will still be cheaper if it hits all the other brands that are based in the EU. Even a Trek and Specialzied are built up into complete bikes in the EU so incur the tax. What you have to ask is, Are all these companies that bothered about the UK over the aggro it causes them? I think Canyon will quite happlily survive as a brand without UK sales.
There was a road.cc article
There was a road.cc article about this and I think the Specialized spokesperson said that they import directly into the UK so would be unaffected.
Imagine that if they can do it all other similarly sized brands will follow.
I’m not sure I follow on the corporate tax front, why would they pay more tax to have a small factory based in the UK?
Project Fear morphs into
Project Fear morphs into Project Teething Problems and soon to become Project – “Can you find anyone who still thinks Brexit will benefit the average man or woman in the street.”
Good, the logical conclusion
Good, the logical conclusion is that Bike mfg such as Giant should onshore production in the UK, and also raise prospect of closer alignment with fast growing far Eastern economies than the stagnant and shrinking EU
What crap Brexiters still
What crap Brexiters still talk.
We’re all Brexiteers now
We’re all Brexiteers now
enjoy the rideeeeeeeee!
Up yours, fuck stain
Up yours, fuck stain
Nigel Garrage wrote:
Brexit has already given car manufacturers like Nissan and BMW the jitters (thankfully averted after the 11th-hour deal was agreed) while the Ineos Grenadier – whose boss was loudly pro-Brexit before moving to live in a tax haven – will apparently be built in France.
According to an industry chap quoted by Autocar magazine this week “Costs are likely to grow due to longer processes and more authorisations involved,” which will “complicate things for the OEMs producing locally, and those exporting to Europe.”
That complication is already happening across all market sectors. It seems that around 150,000 Amazon sellers, in a marketplace that expanded rapidly through 2020, are being hit with tariffs. In my own line of work, food importers and exporters are struggling to get to grips with the new requirements while some logistics and warehousing operations have said that they will be reviewing their sites once the revised import & export patterns are better known.
If Giant, Canyon or anyone else with international distribution network thought that the market on this little island, with its exceptionalism and insularity, was worth the extra cost of installing and running the logistical base, they would have done it years ago.
And if running a British manufacturing business was cost-effective and efficient enough to be competitive then we might still have an industry of some magnitude; but invariably it isn’t.
All the village idiots who
All the village idiots who voted for Brexit should be taxed at a higher rate that the rest of us sane people to cover the costs.
Why would anyone vote to pay more for things? I’s not as they didn’t know this would happen, it was common knowledge, but oh no let’s listen to Nigel Farage and the rest of the Millionaires, they really care about us don’t they?
Talk about gullible, they obviously have feathers in their head instead of a brain
Surely all the morally
Surely all the morally/intellectually superior people who voted for remain should be taxed at a higher rate than the rest of the idiots who live on these islands?
After all, you’re obviously in a natural position of vast privilege compared to the rest of the population… I mean how can you possibly fail to succeed in life compared to the lobotomised zombies who decided to leave the EU? That should be reflected in the taxation system
*cough* income tax *cough*
*cough* income tax *cough* London voted against brexit *cough* stamp duty *cough* brexit was voted for by pensioners, not the working pop *cough*
Irony of ironies is that remain voters will pay a higher proportion of the cost of brexit and be the people sorting out the messes.
Id be careful with a cough
Id be careful with a cough like that. We might have to isolate you
You should look at the news
You should look at the news outside of RoadCC. Fishermen, exporters, job losses, increased trande friction etc, Brexit is going to cost us all, for what exactly?
Care to tell us? No one in the 4.5 years has been able to so far.
Nigel Garrage wrote:
Yeah right, the people who voted against this monumental act of self-harm should subsidise those who wanted it
Ah, taxation and
Ah, taxation and representation raises its head. Not being picky, but I suspect that remainers are – on average – taxed at a higher rate than leavers, at least per ‘income tax paying’ vote. You’d have to net off all non tax payers on both sides to get a closer look, but it would be interesting…
Sorry….I did a political science M.Phil…. a while ago, I might add.
How is brexcrement going thus
How is brexcrement going thus far?
Fishing for example. Discuss
The Brexit agreement
The Brexit agreement introduced strict quotas on the number of political comments that can be imported into a cycling website per month. Unfortunately we’ve already hit the tariff ceiling for March.
HoarseMann wrote:
Can’t we just change the quotas unilaterally?
Or would that open us up to legal action?
Steel is real!
Steel is real!
So if UK brands sourcing from
So if UK brands sourcing from Asia will face 14% tariffs exporting to EU, and EU brands sourcing from Asia will face 14% tariffs to sell into the UK, that will just push UK consumers to UK brands as opposed to European….
The other potential outcome
The other potential outcome is a Campagnolo renaissance.
Stick an EU made Campy groupset on a bike and it will be a hell of a lot closer to the tariff free category.
The same would be true for any EU or UK made wheels/finishing kit etc.
Most alloy in Campagnolo is
Most alloy in Campagnolo is made by Tektro in Taiwan with some assembled in Romania . Disc brakes are made by Magura.
Rich_cb wrote:
This is a cycling forum, it’s not a place for this kind of fantasy fiction.
Any reversal in the long term decline of Campagnolo’s domination of groupsets will be completely unrelated to Brexit and surely would depend on Campagnolo’s business model and R&D (and of their competitors). I am not holding my breath.
If a bike was close to the EU
If a bike was close to the EU/UK ROI threshold for tariff free import then fitting a Campagnolo groupset may push it above that threshold.
On a 2000 bike the difference could be £200 or more, that may well be enough to get a lot of people learning to speak Campagnolo.
Obviously this all depends on Campagnolo groupsets actually counting as EU made, I thought they were but someone has posted that they’re merely assembled here and manufacture takes place in Taiwan.
Reminds me of flood victims
Reminds me of flood victims picking through the debris of their possessions and smiling as they retrieve a treasure which although damaged might be saved. Sort of sweet but ultimately rather sad.
Correct. This is the point
Correct. This is the point that people here don’t understand. The UK consumes more than it produces. Therefore any net adjustment to assembly process etc will always favour the UK economy and exchequer as the process and therefore jobs are onshore.
Not that this really has anything to do with economics of course – The EU was and is an entirely political concept (as is the Euro) to force ever closer integration to a “United federation of European states”. Frankly I never understood why they didn’t have two zones in the EU, one with complete integration, and a looser satellite of free trading partners – I think this will now inevitably happen anyway and we’ll eventually rejoin something resembling the common market circa 1973.
If Canyon want to onshore production to the UK they are free to do so. If they don’t want to, that is also fine, but they will inevitably lose market share which provides an opportunity to UK and internation makers to fill the demand gap. Either way, it isn’t a problem for the UK plc, and I suspect the issue will be triaged in the coming months anyway as it’s a flaw in the agreement, similar to the M&S Percy Pig saga
Canyon had already pushed up
Canyon had already pushed up UK prices on newly released models end of 2020. The new ultegra di2 speedmax CF for example, was listed at £5999. Has gone up to £6299 after leaving. The same model is still available in Euro zone for 5799 euro. With current exchange rates the UK buyer was already paying a c. £800 premium before Brexit, which is now up by a further £300. I would imagine the UK market is massive for them as sometimes every other bike I see on the road seems to be a Canyon, but that price discrepancy is huge.
If Rose/Canyon have any sense
If Rose/Canyon have any sense and the volume supports it they should set up an assembly Center in the UK somewhere.
What’s the chances then that
What’s the chances then that the frames end up going through the same sub-contracted assembly centre, probably having originated at the same far east frame manufacturer, and basically get different decals stuck on. OK, an exaggeration, but seriously, how different can they be?
Reading the comments, I
Reading the comments, I thought I’d been redirected to The Guardian website. This is Road.cc isn’t it?
Wasn’t brexthick supposed to
Wasn’t brexthick supposed to free the economy of ‘red tap’ and ‘bureaucracy’?
….Buy a Chinese frame
….Buy a Chinese frame through someone else! Is it not the import VAT (for part assembly in Germany) the issue here?
Have to say, I’ve never understood the attraction of Canyon – apart from the price – but the carbon repair specialist I used to repair my old C50 said that they were amongst the frames they see most. That is either a function of Canyon ubiquity (which I doubt), or poor build quality (which was the view of the carbon repair specialist).
Chris Hayes wrote:
apart from price they universally review really well and everyone I know with one loves them.
my ultimate disc is the best, most fun bike I’ve ever had….would’ve liked an aeroad but the currency fluctuations caused by brexit then brexit itself have pushed the price too high for me
Yep – I’ve read the reviews
Yep – I’ve read the reviews too. And I have a (German) mate I ride with who has a (6-7yr old) Canyon that rides well and has survived some serious mileage and hammer (inc. 3-4 Paris Roubaix sportives which is about as much as you could expect to subject a road bike to), so when I asked the carbon repair shop which frames they ‘saw most’, I wouldn’t have guessed Canyon either…
EddyBerckx wrote:
I’m sure most Ducati owners say something similar but the brand has a long history of unreliability. It’s possible that there are high-mileage Ducatis that have never given their owner a moment’s trouble… but I bet there won’t be many!
I don’t think Canyon dominates the UK market so if a repairer is seeing a significant number of their frames failing then it suggests that there is possibly an ongoing QC issue or a design fault. However, that’s not the same as saying every frame will break.
Canyon sell way more frames
Canyon sell way more frames than Colnago over all bike categories. If Colnago and Canyon both had frame failures of say 1% then it’s obvious that more Canyons would be in for repair.
Hmmm. You stick with your
Hmmm. You stick with your Canyon. I’ll stick with my Colnagos. The carbon repair shop was categorical in their assertion that Canyon bikes had the highest failure rates…