Brno - Olpran, one of the Czech Republic's largest importers of bicycles, imported China-made bicycles to the country, but declared them as being manufactured in Malaysia in order to avoid paying higher import duties imposed on Chinese bikes by the EU.
However, the European Anti-Fraud Office (OLAF) uncovered the scam.
The Czech importer used false documentation indicating that the imported bicycles were made in Malaysia.
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"The reason was to hide the Chinese origin of the bicycles, and thus dodge the high anti-dumping duties," said the OLAF in its report, adding that the imported bicycles were worth roughly EUR 9 million.
Eventually, the Czech Customs Administration ordered Olpram to pay the dodged duty.
Olpran refused to pay and filed a legal complaint, arguing that the OLAF's report was not conclusive.
Using the evidence collected by the OLAF, the Czech Republic's Supreme Administrative Court rejected Olpran's appeal, ruling that the company has to pay CZK 860,000 in additional duties.
The bicycles were made in China, and thus must be subjected to the trade tariffs imposed on Chinese bicycles, ruled the court.
It is the first time that the Supreme Administrative Court ruled on the basis of an OLAF report.
In 1993, the EU imposed a special anti-dumping duty on China-made bicycles. Currently, the tariff is 48.5 percent.
