USTR Announces Long-Sought Tariff Relief for Bikes
By: Noa Banayan, PeopleForBikes' director of federal affairs
New, retroactive Section 301 tariff exclusions mark a big win for the bike industry.
On March 23, 2022, the United States Trade Representative (USTR) announced new, retroactive Section 301 tariff exclusions, including nearly every eligible bike product exclusion we pursued as an industry.
The exclusions will be in effect for products imported between Oct. 12, 2021 and Dec. 31, 2022. We estimate these exclusions cover products worth more than $600 million in annual import value. This action could save the bike industry at least $160 million in duty payments, likely more.
Bicycle products covered by this exclusion reinstatement include the following items. Applicable Harmonized Tariff Schedule (HTS) subheadings are provided for clarity:
- — Kids’ bikes - less than 20" wheels, classified in HTS 8712.00.1510.
- — Kids’ and BMX bikes - 20" wheels, classified in HTS 8712.00.1520.
- — Kids’ and BMX bikes - 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.
We encourage you to check with your trade counsel and customs broker to verify the eligibility of your products
All but one eligible product for the bicycle industry were reinstated: saddles, unfortunately, were not included in this round. This announcement is the result of a concerted effort by PeopleForBikes and the bike industry dating back to the beginning of Section 301 tariffs.
PeopleForBikes called for sweeping Section 301 relief in our 2021 Trade Agenda and maintained constant pressure on Capitol Hill, conveying the importance of this issue to our industry. Alongside many bike companies, we maximized opportunities through USTR’s various administrative processes. This result would not be possible without years of united work and engagement at every step of the exclusion process.
PeopleForBikes will continue to fight for the extension of these exclusions and full tariff relief for the bike industry. Stay updated on our trade and tariff page and on Twitter @pfbpolicy for the latest breaking policy news.