Turin, September 16:
Production of Alfa Romeo and Maserati automobiles will never be transferred from Italy, Fiat Group CEO Sergio Marchionne said in an interview published Monday.
The head of the parent company for both premium Italian car brands explained that the luxury goods cache' of being made in Italy is too important for both.
''There is not a doubt in my mind that the origin of production is important to Maserati. I also think it's important for Alfa,'' Marchionne told the Financial Times.
''We will never build outside (Italy)...It may well be the next CEO that makes that call (to build elsewhere). But it's not me,'' Marchionne said.
Source: ANSA
Follow on Twitter: ITALIANCYCJOURN or receive an email when new content is added using the "Follow by Email" button on the right side column. With more than 3,000 stories in this blog the custom search feature (right column) works best for finding subjects in the blog. There is also a translate button underneath the search button.
Stories for the Italian Cycling Journal about rides, granfondos, touring, having a good time cycling in Italy, Italian cycling history, racing, etc. are always welcome. Contact me at veronaman@gmail.com.
Showing posts with label Made in Italy. Show all posts
Showing posts with label Made in Italy. Show all posts
Tuesday, September 17, 2013
Friday, March 1, 2013
What Do Tomato Puree and Some Framesets Have in Common?
TOMATOES
The "tomato king" of southern Italy, Antonio Russo who controls AR Industrie Alimentari (Aria), has been convicted in a local court of fraudulently passing off his cheap Chinese tomato puree as Italian. When police raided the plant they found the tomato puree imported from China. It had gained the "Produced in Italy" label by having some water and salt added and then being canned in Italy. A lower court ruled that such "minimal" processing was insufficient to justify the labelling.
According to the prosecutor, Chinese tomatoes would arrive in Salerno in one ton barrels in the form of triple concentrate. The only processing they received was to dilute the concentrate with water, add salt, and produce 142 gram pasteurized cans with a white label on a red background, that read: "Asda puree double concentrate. Produced in Italy for Asda Stores Ltd, Leeds". The lower court ruled that such "minimal" processing was insufficient to justify the labelling under EU law.
Russo, who is appealing the case, defends himself by saying that because he did process the Chinese concentrate in his plant, he could label it and sell it as Italian.
The prosecutor, Roberto Lenza, does not suggest that the Chinese tomatoes were of poor quality. Lenza says he is attempting to preserve the image of Italian food, "We were, and are, facing a big problem for the protection of the "Made in Italy" label and, above all, for the protection of consumers, especially considering the foreign markets for this product, and the respect it usually receives precisely because of its Italian origin."
FRAMESETS
Interestingly, there doesn't seem to be the same attention paid to framesets made in Asia which are labeled as "Made in Italy". We previously have discussed the subject of "transformation" as it relates to bicycles in which a product isn't made in Italy but can be transformed to an extent that it meets the criteria for being labeled as being "Made in Italy".
"Euro-Lex" Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code, Article 24, specifies, "Goods whose production involved more than one country shall be deemed to originate in the country where they underwent their last, substantial, economically justified processing or working in an undertaking equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture."
What still remains unanswered is what constitutes substantial? economically justified? representing an important stage of manufacture? Is applying decals substantial? Is a final finish or adding components to a frame important stage of manufacture?
Or, is it like adding salt and water to Chinese puree?
Follow on Twitter: ITALIANCYCJOURN or receive an email when new content is added using the "Follow by Email" button on the right side column.
Stories for the Italian Cycling Journal about rides, granfondos, touring, having a good time cycling in Italy, Italian cycling history, racing, etc. are always welcome. Contact me at veronaman@gmail.com. There are now more than 2,700 stories in this blog. The search feature to the right works best for finding subjects in the blog. There is also a translate button at the bottom so you can translate each page.
The "tomato king" of southern Italy, Antonio Russo who controls AR Industrie Alimentari (Aria), has been convicted in a local court of fraudulently passing off his cheap Chinese tomato puree as Italian. When police raided the plant they found the tomato puree imported from China. It had gained the "Produced in Italy" label by having some water and salt added and then being canned in Italy. A lower court ruled that such "minimal" processing was insufficient to justify the labelling.
According to the prosecutor, Chinese tomatoes would arrive in Salerno in one ton barrels in the form of triple concentrate. The only processing they received was to dilute the concentrate with water, add salt, and produce 142 gram pasteurized cans with a white label on a red background, that read: "Asda puree double concentrate. Produced in Italy for Asda Stores Ltd, Leeds". The lower court ruled that such "minimal" processing was insufficient to justify the labelling under EU law.
Russo, who is appealing the case, defends himself by saying that because he did process the Chinese concentrate in his plant, he could label it and sell it as Italian.
The prosecutor, Roberto Lenza, does not suggest that the Chinese tomatoes were of poor quality. Lenza says he is attempting to preserve the image of Italian food, "We were, and are, facing a big problem for the protection of the "Made in Italy" label and, above all, for the protection of consumers, especially considering the foreign markets for this product, and the respect it usually receives precisely because of its Italian origin."
FRAMESETS
Interestingly, there doesn't seem to be the same attention paid to framesets made in Asia which are labeled as "Made in Italy". We previously have discussed the subject of "transformation" as it relates to bicycles in which a product isn't made in Italy but can be transformed to an extent that it meets the criteria for being labeled as being "Made in Italy".
"Euro-Lex" Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code, Article 24, specifies, "Goods whose production involved more than one country shall be deemed to originate in the country where they underwent their last, substantial, economically justified processing or working in an undertaking equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture."
What still remains unanswered is what constitutes substantial? economically justified? representing an important stage of manufacture? Is applying decals substantial? Is a final finish or adding components to a frame important stage of manufacture?
Or, is it like adding salt and water to Chinese puree?
Follow on Twitter: ITALIANCYCJOURN or receive an email when new content is added using the "Follow by Email" button on the right side column.
Stories for the Italian Cycling Journal about rides, granfondos, touring, having a good time cycling in Italy, Italian cycling history, racing, etc. are always welcome. Contact me at veronaman@gmail.com. There are now more than 2,700 stories in this blog. The search feature to the right works best for finding subjects in the blog. There is also a translate button at the bottom so you can translate each page.
Thursday, February 16, 2012
Shadow Optic, the Manufacturing Partner Paradox

Read "Shadow Optic, the Manufacturing Partner Paradox" to gain additional insights into what is happening in framebuilding. The Italian firms mentioned are Colnago, Pinarello, Bianchi, Wilier, Scott, and Dedacciai.
Follow on Twitter: ITALIANCYCJOURN
Stories for the Italian Cycling Journal about rides, granfondos, touring, having a good time cycling in Italy, Italian cycling history, etc. are always welcome. Contact me at veronaman@gmail.com. There are more than 2,300 stories in this blog. The search feature to the right works best for finding subjects in the blog. There is also a translate button at the bottom so you can translate each page.
Tuesday, March 9, 2010
The Making of a Carbon Fiber Frame
Let's face it: just about every "Italian" carbon frame is made in Asia. Yes, some are really "Made in Italy" and buyers should shop carefully if that is important to them. BICYCLING magazine recently had a straightforward photo series explaining how a carbon bike is made which I found interesting:
Carbon fiber composite frames require an astounding amount of hand labor from start to finish; there is almost no automation in their production. At Giant's C-Tech factory in Taiwan, workers make hundreds of frames a day for Giant and other companies that sub-contract their production.
Part of C-Tech is the Techno Center, where engineers create the designs for the frames using Computer Aided Design software and virtually "test" the frames in simulated software. Nixon Huang, R&D Advanced Engineer, is one of the lead engineers on many Giant projects.
There are only a handful of companies in the world that actually manufacture the raw carbon fiber used in frames and parts. In its most basic form, it looks like a spool of fat thread. This is a spool of Toray's T700S fiber, a major workhorse fiber of the bike industry.
Among bike companies, only Giant and Time use raw carbon thread (other companies buy sheets of fiber pre-impregnated with resin). Here, 96 spools of carbon thread feed through the loom at C-Tech, where they're flattened and coated with resin to make a sheet of "prepreg".
The three-foot wide sheets of prepreg are then cut into the pieces needed to assemble a frame. Each piece is cut not just according to size, but the direction or orientation of fiber. At Giant, the pieces, or plies, are placed in boxes in the layup room where workers will grab the right pieces for assembly.
Each part of a frame is assembled from a "kit" of plies of prepreg carbon composite. Quality control at this point is paramount. Giant's system uses a physical layup tray with size-specific slots for each ply. This kit is for a bottom bracket section for a medium TCR composite road frame.
Workers assemble the kits in order on the tray, using molds shaped to look like the eventual frame part. The worker strips the paper backing off the composite ply and sets it on a warming plate, then applies it to the mold, which is also often warmed to help make the composite more workable.
The black plate these composite plies are sitting on is the warming plate. Most of the workers in the layup room are women; men sometimes don't have the temperament for the exacting nature of the work.
Tubes are often roll-wrapped from larger pieces of composite. This is where the majority of the intermediate and high-modulus fiber goes in a frame, because tubes are ideal locations for adding stiffness and don't have to deal with the same kinds of complex forces that you find in a bottom bracket area.
Once all of the individual sections of the frame — bottom bracket, tubes, etc. — are laid up, a worker in the layup room assembles them in a plastic layup mold. A flexible urethene bladder is threaded through the entire frame, with an inflation tip at the seatpost clamp. Steel mandrels are inserted in the bottom bracket and head tube area for precise control of surfaces where bearings will sit. Excess fiber is trimmed to fit.
The prepped frame is then sent to the oven area, where it's held in a refrigerated rack until it's ready to bake.
At the oven stage, a worker fits the frame into the baking mold. It's a time-consuming process. Each of the mold sections you see with the dark circles in them are movable "stops" that must be precisely arranged around the frame section and then bolted in place with impact drivers. Once the frame is securely fixed in the bottom half of the steel clamshell mold, the top half is hydraulically lowered and clamped in place. Then the frame is shipped off to the oven.
The same frame emerges from the mold. Note how the tube shapes have been pressed out into the shape of the mold by the pressure of the internal bladder. Overlapping edges have been blended together as the resin melts and spreads throughout the matrix. Frames are pried from the mold and sent to finishing.
A worker hand-files excess resin, or flash, from the frame. The finish process is surprisingly rough — rubber-coated deadblow mallets are used to smack mandrels from the frame. Standard-looking rasps and files shave off flash and fiber ends.
A worker applies decals to a finished fork. All painting and finish work takes place at C-Tech. Finish-filing releases carbon dust into the air, and paint is similarly hazardous. Workers here wear jumpsuits and paint masks, while fans blow particulate matter away from the workers toward walls with water cascading down. The water traps the particles so that workers don't breathe them.
One last, important phase: testing. Here, a technician drops a weight from a preset height onto a fork to gauge impact resistance. Testing — both lab and real-world — is an essential part of the quality control process to determine if a physical product matches the predicted computer models.
Take a look at how Bianchi stress tested in 1981 here.
Frames made in Asia can be legally labeled "Made in Italy", according to EU rules, if they undergo a certain degree of "transformation".
Stories for the Italian Cycling Journal about rides, granfondo, having a good time cycling in Italy, Italian cycling history, etc. are very welcome. Contact me at veronaman@gmail.com. There are more than 1,300 stories in this blog. The search feature to the right works best for finding subjects in the blog and there is also a translate button at the bottom so you can translate each page.
Carbon fiber composite frames require an astounding amount of hand labor from start to finish; there is almost no automation in their production. At Giant's C-Tech factory in Taiwan, workers make hundreds of frames a day for Giant and other companies that sub-contract their production.

Part of C-Tech is the Techno Center, where engineers create the designs for the frames using Computer Aided Design software and virtually "test" the frames in simulated software. Nixon Huang, R&D Advanced Engineer, is one of the lead engineers on many Giant projects.

There are only a handful of companies in the world that actually manufacture the raw carbon fiber used in frames and parts. In its most basic form, it looks like a spool of fat thread. This is a spool of Toray's T700S fiber, a major workhorse fiber of the bike industry.

Among bike companies, only Giant and Time use raw carbon thread (other companies buy sheets of fiber pre-impregnated with resin). Here, 96 spools of carbon thread feed through the loom at C-Tech, where they're flattened and coated with resin to make a sheet of "prepreg".

The three-foot wide sheets of prepreg are then cut into the pieces needed to assemble a frame. Each piece is cut not just according to size, but the direction or orientation of fiber. At Giant, the pieces, or plies, are placed in boxes in the layup room where workers will grab the right pieces for assembly.

Each part of a frame is assembled from a "kit" of plies of prepreg carbon composite. Quality control at this point is paramount. Giant's system uses a physical layup tray with size-specific slots for each ply. This kit is for a bottom bracket section for a medium TCR composite road frame.

Workers assemble the kits in order on the tray, using molds shaped to look like the eventual frame part. The worker strips the paper backing off the composite ply and sets it on a warming plate, then applies it to the mold, which is also often warmed to help make the composite more workable.

The black plate these composite plies are sitting on is the warming plate. Most of the workers in the layup room are women; men sometimes don't have the temperament for the exacting nature of the work.

Tubes are often roll-wrapped from larger pieces of composite. This is where the majority of the intermediate and high-modulus fiber goes in a frame, because tubes are ideal locations for adding stiffness and don't have to deal with the same kinds of complex forces that you find in a bottom bracket area.

Once all of the individual sections of the frame — bottom bracket, tubes, etc. — are laid up, a worker in the layup room assembles them in a plastic layup mold. A flexible urethene bladder is threaded through the entire frame, with an inflation tip at the seatpost clamp. Steel mandrels are inserted in the bottom bracket and head tube area for precise control of surfaces where bearings will sit. Excess fiber is trimmed to fit.

The prepped frame is then sent to the oven area, where it's held in a refrigerated rack until it's ready to bake.

At the oven stage, a worker fits the frame into the baking mold. It's a time-consuming process. Each of the mold sections you see with the dark circles in them are movable "stops" that must be precisely arranged around the frame section and then bolted in place with impact drivers. Once the frame is securely fixed in the bottom half of the steel clamshell mold, the top half is hydraulically lowered and clamped in place. Then the frame is shipped off to the oven.

The same frame emerges from the mold. Note how the tube shapes have been pressed out into the shape of the mold by the pressure of the internal bladder. Overlapping edges have been blended together as the resin melts and spreads throughout the matrix. Frames are pried from the mold and sent to finishing.

A worker hand-files excess resin, or flash, from the frame. The finish process is surprisingly rough — rubber-coated deadblow mallets are used to smack mandrels from the frame. Standard-looking rasps and files shave off flash and fiber ends.

A worker applies decals to a finished fork. All painting and finish work takes place at C-Tech. Finish-filing releases carbon dust into the air, and paint is similarly hazardous. Workers here wear jumpsuits and paint masks, while fans blow particulate matter away from the workers toward walls with water cascading down. The water traps the particles so that workers don't breathe them.

One last, important phase: testing. Here, a technician drops a weight from a preset height onto a fork to gauge impact resistance. Testing — both lab and real-world — is an essential part of the quality control process to determine if a physical product matches the predicted computer models.

Take a look at how Bianchi stress tested in 1981 here.
Frames made in Asia can be legally labeled "Made in Italy", according to EU rules, if they undergo a certain degree of "transformation".
Stories for the Italian Cycling Journal about rides, granfondo, having a good time cycling in Italy, Italian cycling history, etc. are very welcome. Contact me at veronaman@gmail.com. There are more than 1,300 stories in this blog. The search feature to the right works best for finding subjects in the blog and there is also a translate button at the bottom so you can translate each page.
Thursday, September 17, 2009
"Fatta da Pinarello", but Made in Taiwan
If you are interested in the subject of "Made in Italy", and have not read previous entries, please use the search feature to the right before continuing on to this story.
I was recently informed about some blog entries from a cyclist in Taiwan writing about Pinarello. Here are excerpts:
"I’m currently in talks with someone who works at the factory which makes Pinarellos.... As for purchasing one of those frames, it’s going to be hard to get a great deal since all of the frames are earmarked for export. Unless he breaks the rules, the frames can’t be sold in Taiwan from the factory. Pinarello customize(s) them, assemble(s) the full bikes, and sell(s) them. So Pinarellos found here in Taiwan have been imported from Italy even though they have been made here. It’s a bit ridiculous. I’ll do some more snooping around in Taichung, as I have a contact there as well and most of the bikes in Taiwan are made in Taichung......
.......This whole thing is ludicrous. Why? Well, the “Made in Italy” stamp can be added to any frame or bike if at least 50% of the price comes from Italy. This means for example that if a carbon fiber frame was made in Taiwan, sent out to Italy, where the company adds components, paint and tires, then this frame would be labeled made in Italy. This is one of the secrets of the bicycle trade.....
.....All Pinarellos are made in Taiwan.....Why is this important? It’s important for pricing. Any frame made in the US and Europe can have a premium price attached to it. Frames that aren’t can’t breach a certain logical price limit. Obviously this isn’t true for every manufacturer, especially for some who don’t want you to find out that your bike was made in Asia, like the Prince by Pinarello......."
Source: http://range.wordpress.com/category/cycling/
The term "Fatta da Pinarello" appears in the English version of http://www.pinarello.com/ and means "Made by Pinarello"
Stories, including cycling trip stories, for the Italian Cycling Journal welcome; contact veronaman@gmail.com
I was recently informed about some blog entries from a cyclist in Taiwan writing about Pinarello. Here are excerpts:
"I’m currently in talks with someone who works at the factory which makes Pinarellos.... As for purchasing one of those frames, it’s going to be hard to get a great deal since all of the frames are earmarked for export. Unless he breaks the rules, the frames can’t be sold in Taiwan from the factory. Pinarello customize(s) them, assemble(s) the full bikes, and sell(s) them. So Pinarellos found here in Taiwan have been imported from Italy even though they have been made here. It’s a bit ridiculous. I’ll do some more snooping around in Taichung, as I have a contact there as well and most of the bikes in Taiwan are made in Taichung......
.......This whole thing is ludicrous. Why? Well, the “Made in Italy” stamp can be added to any frame or bike if at least 50% of the price comes from Italy. This means for example that if a carbon fiber frame was made in Taiwan, sent out to Italy, where the company adds components, paint and tires, then this frame would be labeled made in Italy. This is one of the secrets of the bicycle trade.....
.....All Pinarellos are made in Taiwan.....Why is this important? It’s important for pricing. Any frame made in the US and Europe can have a premium price attached to it. Frames that aren’t can’t breach a certain logical price limit. Obviously this isn’t true for every manufacturer, especially for some who don’t want you to find out that your bike was made in Asia, like the Prince by Pinarello......."
Source: http://range.wordpress.com/category/cycling/
The term "Fatta da Pinarello" appears in the English version of http://www.pinarello.com/ and means "Made by Pinarello"
Stories, including cycling trip stories, for the Italian Cycling Journal welcome; contact veronaman@gmail.com
Thursday, June 25, 2009
MADE IN ITALY, or NOT? Part III
A further explanation of how "Made in ....." is also determined, in addition to actually being made in-country, appears at http://allanti.com/page.cfm?PageID=328 and is cited below. The author, Kerry Roberts, is the past president and chairperson of the National Bicycle Dealers Association and provides consulting services to the bicycle industry.
"When it comes to knowing where your bike is made, shouldn’t it be as easy as looking at the sticker on your bike or what is printed on the box in which your bike came? After all, how confusing can a label that says “Made in the USA” or “Made in France” or “Made in Italy” be?
Well – in a word – very. It is very confusing because your definition of “made in” is different from the bike industry’s definition.
A typical rule of thumb is that the country claiming origin has to add 60% or more of the value of the final product.
For example, you and I can import an unpainted carbon fiber racing frame from China to Spain which will ultimately retail for $4,000 with Shimano components in the United States. The frame and fork may only cost $200 from the Chinese manufacturer. In Spain, we will paint, decal, assemble, and box the bike for shipping to the U.S. Our cost to paint, decal, assemble, and box might be $300 and the cost of the components might be another $800. So is this bike “Made in China” or “Made in Spain?” According to the bike industry's definition, the bike is made in Spain.
The sticker will say “Made in Spain” as will the shipping box to the United States because over 60% of the value will be added in Spain.
Let’s say we take the same frame and have the Chinese manufacturer paint it, decal it, assemble it into a bicycle, and ship it to Spain. When we ship it to the United States, the label will have to say “Made in China.”
Part I and Part II of this series:
http://italiancyclingjournal.blogspot.com/2009/04/bianchi-dolomiti-made-in-italy-etc.html
http://italiancyclingjournal.blogspot.com/2009/04/made-in-italy-or-not-part-ii.html
Stories, including cycling trip stories, for the Italian Cycling Journal welcome; contact veronaman@gmail.com
"When it comes to knowing where your bike is made, shouldn’t it be as easy as looking at the sticker on your bike or what is printed on the box in which your bike came? After all, how confusing can a label that says “Made in the USA” or “Made in France” or “Made in Italy” be?
Well – in a word – very. It is very confusing because your definition of “made in” is different from the bike industry’s definition.
A typical rule of thumb is that the country claiming origin has to add 60% or more of the value of the final product.
For example, you and I can import an unpainted carbon fiber racing frame from China to Spain which will ultimately retail for $4,000 with Shimano components in the United States. The frame and fork may only cost $200 from the Chinese manufacturer. In Spain, we will paint, decal, assemble, and box the bike for shipping to the U.S. Our cost to paint, decal, assemble, and box might be $300 and the cost of the components might be another $800. So is this bike “Made in China” or “Made in Spain?” According to the bike industry's definition, the bike is made in Spain.
The sticker will say “Made in Spain” as will the shipping box to the United States because over 60% of the value will be added in Spain.
Let’s say we take the same frame and have the Chinese manufacturer paint it, decal it, assemble it into a bicycle, and ship it to Spain. When we ship it to the United States, the label will have to say “Made in China.”
Part I and Part II of this series:
http://italiancyclingjournal.blogspot.com/2009/04/bianchi-dolomiti-made-in-italy-etc.html
http://italiancyclingjournal.blogspot.com/2009/04/made-in-italy-or-not-part-ii.html
Stories, including cycling trip stories, for the Italian Cycling Journal welcome; contact veronaman@gmail.com
Monday, April 27, 2009
MADE IN ITALY, or NOT? Part II
In Part I (http://italiancyclingjournal.blogspot.com/2009/04/made-in-italy-or-not.html) we got into the subject of "transformation", in which a product isn't made in Italy but can be transformed to an extent that it meets the criteria for being labeled as being MADE IN ITALY.
Thanks to some readers we have additional insights but still not the full story.
First I was directed to "Euro-Lex" Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code. Here, in Article 24, is found the text "Goods whose production involved more than one country shall be deemed to originate in the country where they underwent their last, substantial, economically justified processing or working in an undertaking equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture." http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31992R2913:EN:HTML
Until I read this it hadn't occurred to me that a product made in Asia, that underwent their last, substantial, economically justified processing or working in Italy would have the added benefit that it could also now be sold through the EU without customs duties in the EU markets. So not only is there an economic benefit to manufacturing where labor is cheaper but the ability to sell the product in Europe isn't hampered.
Unanswered for the moment are questions such as, What constitutes substantial? Economically justified? Representing an important stage of manufacture?
Next I was directed to a fairly recent EU case involving televisions (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:62005J0447:EN:HTML.) In Item 6 there is a reference to Annex 11 to Regulation No 2454/93. It would appear that different product types have their own "CN code", "Product description", and "Working or processing carried out on non‑originating materials that confers the status of originating products"
Under "Working or processing carried out on non‑originating materials that confers the status of originating products" we see that for televisions:
a) Manufacture where the increase in value acquired as a result of assembly operations and, if applicable, the incorporation of parts originating in the country of assembly represents at least 45% of the ex-works price of the products
b)When the 45% rule is not met, the apparatus shall be treated as originating in the country of origin of parts whose ex-works price represents more than 35% of the ex-works price of the apparatus
c)When the 35% rule is met in two countries, the apparatus shall be treated as originating in the country of origin of parts representing the greater percentage value
What specific values apply to bikes remains to be determined.....a story for another day hopefully.
Stories, including cycling trip stories, for the Italian Cycling Journal welcome; contact veronaman@gmail.com
Thanks to some readers we have additional insights but still not the full story.
First I was directed to "Euro-Lex" Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code. Here, in Article 24, is found the text "Goods whose production involved more than one country shall be deemed to originate in the country where they underwent their last, substantial, economically justified processing or working in an undertaking equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture." http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31992R2913:EN:HTML
Until I read this it hadn't occurred to me that a product made in Asia, that underwent their last, substantial, economically justified processing or working in Italy would have the added benefit that it could also now be sold through the EU without customs duties in the EU markets. So not only is there an economic benefit to manufacturing where labor is cheaper but the ability to sell the product in Europe isn't hampered.
Unanswered for the moment are questions such as, What constitutes substantial? Economically justified? Representing an important stage of manufacture?
Next I was directed to a fairly recent EU case involving televisions (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:62005J0447:EN:HTML.) In Item 6 there is a reference to Annex 11 to Regulation No 2454/93. It would appear that different product types have their own "CN code", "Product description", and "Working or processing carried out on non‑originating materials that confers the status of originating products"
Under "Working or processing carried out on non‑originating materials that confers the status of originating products" we see that for televisions:
a) Manufacture where the increase in value acquired as a result of assembly operations and, if applicable, the incorporation of parts originating in the country of assembly represents at least 45% of the ex-works price of the products
b)When the 45% rule is not met, the apparatus shall be treated as originating in the country of origin of parts whose ex-works price represents more than 35% of the ex-works price of the apparatus
c)When the 35% rule is met in two countries, the apparatus shall be treated as originating in the country of origin of parts representing the greater percentage value
What specific values apply to bikes remains to be determined.....a story for another day hopefully.
Stories, including cycling trip stories, for the Italian Cycling Journal welcome; contact veronaman@gmail.com
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