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%.
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.
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.”
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.
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.
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.
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