IIRC, it's designed to provide a blast of air to assist the catalytic converter. I'd promptly remove it, but that would mean fabricating a block-off plate, removing the catalytic converter and perhaps even changing the main jet to something a little larger. A slight increase in power might result, because the cat is quite restrictive.
I performed that very surgery on a 50cc China scooter, but I haven't encountered a dual sport with that setup yet.
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Weldangrind
"I figure I'm well-prepared for coping with a bike that comes from the factory with unresolved issues and that rewards the self-reliant owner." - Buccaneer
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