U.S. Bicycle Industry to Save Additional $100 Million in Extended Tariff Exclusions
By: PeopleForBikes Staff
The United States Trade Representative recently announced extensions to 352 Section 301 tariffs, covering U.S. bicycle industry products worth more than $370 million in annual import value.
On December 16, 2022, the United States Trade Representative (USTR) announced a nine-month extension on 352 Section 301 tariffs exclusions. The exclusions were previously extended on March 23, 2022, and were scheduled to expire on December 31, 2022. The latest extensions will last through September 30, 2023. These extensions cover numerous categories of bicycles including all children’s bikes and some electric bicycles. We estimate these extensions will cover products worth more than $370 million in annual import value and could save the bike industry approximately $100 million in duty payments.
Bicycle products covered by this exclusion reinstatement include the following items. Applicable Harmonized Tariff Schedule (HTS) subheadings are provided for clarity:
- Kids’ bikes with less than 20" wheels, classified in HTS 8712.00.1510.
- Kids’ and BMX bikes with 20" wheels, classified in HTS 8712.00.1520.
- Kids’ and BMX bikes with 24" wheels, classified in HTS 8712.00.1550.
- Electric motorcycles of 1,000 watts or less, classified in HTS 8711.60.0050 or 8711.60.0090 (this applies to many electric bicycles).
- Certain adult bicycles with a drive belt and hub gearing, classified in HTS 8712.00.2500.
- Certain adult single-speed bicycles, classified in HTS 8712.00.2500.
- Certain adult bicycles equipped with three speeds and coaster brakes, classified in HTS 8712.00.3500.
- Carbon fiber bicycle frames valued at $600 or less, classified in HTS 8714.91.3000.
- Certain helmets, classified in HTS 6506.10.6045.
- Certain bicycle trailers, classified in HTS 8716.40.0000.
- Certain messenger bags, backpacks, hydration packs, and duffel bags, classified in HTS 4202.12.8130, 4202.92.0400, 4202.92.3120, 4202.92.3131.
For members of the bike industry, please check with your trade counsel and customs broker to verify the eligibility of your products for these exclusions.
The USTR granted these extensions to avoid impacts on affected industries while it determines whether or not to extend Section 301 tariffs as part of a required four-year review process. The review process includes a period for public comment submissions that will remain open until January 17, 2023.
This announcement is yet another in a series of positive results from a concerted and ongoing effort by PeopleForBikes and the bike industry to obtain relief from the Section 301 tariffs.
PeopleForBikes is currently leading industry efforts to submit comments in opposition to the continuation of Section 301 tariffs on bicycles, electric bicycles, bicycle components, and accessories such as trailers, lights, and helmets. For more information or assistance with comment submission, please contact PeopleForBikes’ Policy Counsel, Matt Moore, at firstname.lastname@example.org.