Alix Armour, head of sustainability at Super73, and Troy Jones, social and environmental responsibility manager at Specialized, serve as co-chairs on the Supply Chain and Social and Environmental Responsibility track within PeopleForBikes’ Sustainability Working Group.

The word sustainability usually conjures images of the environment, materials and recycling, not necessarily supply chain outcomes from social inequalities and environmental risks. These issues, beneath the surface of the sustainability conversation, include safety and the status of foreign migrant workers, child labor, codes of conduct, conflict minerals, environmental performance improvement, legal and regulatory compliance, transparency, management systems and diversity in suppliers. 

Immense challenges like these make up the core discussion of the Supply Chain and Social and Environmental Responsibility (SER) track within PeopleForBikes’ Sustainability Working Group (SWG). The track meets quarterly, bringing together leaders from across the bike industry interested in learning from one another on how to tackle these big issues of supply chain and SER. 

Figuring out how to get your company started can be daunting, but the work is critical — consider it risk management for your brand. Startups and 50+ year old companies have very different business models, processes and work capacities, and as co-chairs, we bring both experiences to the conversation. As passionate supply chain and sustainability professionals, we’re not wasting time getting to the hot topics. We’ve tackled such themes with PeopleForBikes members that have both close to zero and decades of experience. 

Our first initiative was to invite different supply chain SER service providers to review their tools and techniques bike companies can use to measure and track SER performance metrics. This helped give members who were new to the concept an idea of the existing methods and practices available to evaluate SER for a wide range of needs and company sizes. We also spent time discussing codes of conduct, what difficulties our members are encountering internally and externally, as well as bringing in diverse speakers to offer new perspectives on SER to our discussions.

SER service providers can simplify due diligence by providing elaborate supplier questionnaires, in-factory audits, tracking platforms, risk analysis, legal council and more. While incredibly effective, they do come at a cost. 

For smaller companies who are just starting the process, a simple first step is getting to know and start building relationships with all of your suppliers, understanding stress factors and seeing how you can help and improve specific situations. No matter your company size, it is crucial to identify and evaluate your critical suppliers. In our track, we outlined a simple scoring system to help bike companies identify risk and procedures. 

After that has been established, it’s up to your brand to decide which metrics are most important for your strategy. For example, if you’re trying to calculate your Scope 3 emissions, you may need to find out the locations of all your Tier 1 and 2 suppliers. Depending on your company’s products, you may need to collect valuable supply chain data for compliance reasons, carbon emissions calculations, materials evaluations, etc. 

Our goal in the Supply Chain and SER track is to help brands start implementing and increasing SER practices into their operations, with an objective of 50% of track members establishing an implementation plan by the end of 2022. To join and learn more about how your company can get started, reach out to Noa Banayan, PeopleForBikes’ director of federal affairs and our track staff liaison, at noa@peopleforbikes.org. 

Factoring Social and Environmental Responsibility Into Your Supply Chain

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. 

USTR Announces Long-Sought Tariff Relief for Bikes

As Congress works towards a final, sweeping trade policy package, PeopleForBikes urges for the inclusion of tariff relief and other key programs for the bike industry.

It’s no secret that the bicycle industry’s success and ability to meet Americans’ growing demand for our products relies heavily on fair and competitive trade policy. The goals laid out in PeopleForBikes’ 2021 report, The American Bicycle Industry and U.S. Trade Policy, remain at the top of our priority list in Washington, D.C. The unprecedented demand for bicycles after the start of the pandemic coupled with ongoing supply chain issues only reinforces our industry’s call for immediate and retroactive action for trade relief.

The latest news out of Congress is promising. On February 4, 2022, the U.S. House of Representatives approved the COMPETES Act (H.R. 4521), following the Senate’s approval of the United States Innovation and Competitiveness Act (USICA, S. 1260) in June, 2021. We’ll get to why the differences in the details matter for the bike industry, but this latest move in the House shows a real commitment to the issues and getting them in front of President Biden to sign into law. 

Now, select representatives from both chambers will work together through the conference process to negotiate out the differences. According to Congressional leaders, it’s possible they will have a final product by Memorial Day. 

PeopleForBikes is pleased with this progress, but we’re still urging senators and representatives to uphold in conference many of the provisions included in USICA that did not make it into COMPETES. Namely, relief to address the growing weight of Section 301 tariffs, adjustments to unfair de minimis standards and renewals expirations of the Miscellaneous Tariffs Bill (MTB) and the Generalized System of Preferences (GSP). 

After the House’s vote on COMPETES, we sent a letter outlining our specific concerns and requests for a final bill. Those requests include: 

Section 301 relief in the form of immediate reinstatement for all prior exclusions with retroactive recovery and a fair and transparent ongoing exclusion process. Bicycles and bicycle products have been subject to additional Section 301 tariffs despite having little to no domestic manufacturing capacity.


GSP renewal for longer than three years. Bicycle companies need more long-term stability and security in the GSP program if they are to make manufacturing and reshoring investments in developing countries.


Exclusion of a finished goods limitation under the MTB. This limitation would exclude bicycle components from the process, which have been recommended for tariff relief under MTBs for many years. Tariff relief for components supports more domestic assembly and production.


Trade fairness under de minimis threshold by ensuring non-market economies and goods pay the same duties as bicycle manufacturers and other large industries. 


As both chambers work through the conference process, we’ll continue to meet with and encourage representatives in Congress to prioritize these provisions in the final bill. We’ll keep the industry updated as soon as there’s news to share. 

You can help by calling on your senators and representatives to take action on these issues: 

CALL ON CONGRESS TO RENEW THE GENERALIZED SYSTEM OF PREFERENCES

URGE CONGRESS TO PASS THE MISCELLANEOUS TARIFF BILL

PeopleForBikes Pushes for Trade Policy Relief

An update on PeopleForBikes' federal trade and tariff work.

Last year, PeopleForBikes published our 2021 Trade Policy Agenda, outlining the U.S. bicycle industry’s policy recommendations for Congress and the Biden-Harris administration, and shared it across Washington, D.C. While a majority of our advocacy work focuses on boosting infrastructure funding and increasing access to and for bikes, trade policy holds a lot of influence over the availability of bikes, parts and accessories in the U.S. Now eight months later, here is an evaluation of our work to advance our top goals: 

Replace the Section 301 Tariffs With More Targeted Actions

At the end of 2020, the last remaining pieces of Section 301 tariff relief expired. In practical terms, this meant substantial tariff increases on critical products such as children’s bikes, electric bicycles, helmets, lights and more. Every bicycle product imported from China now faces a Section 301 tariff and most are subject to an extra 25% duty. 

We are actively advocating for Section 301 reform in Congress and there’s momentum on Capitol Hill to address Section 301 tariffs, not only by reforming the process but also creating a new process going forward. In June, the Senate passed the bipartisan Endless Frontiers Act, a massive science, technology and competitiveness bill that included several positive provisions on Section 301, including automatically renewing all expired tariff exclusions for 18 months, providing retroactive recovering of duties for some products that were excluded and creating a new, mandatory exclusion process. This would include all bike products for which duties increased after December 31, 2020. While the House of Representatives has not taken up the mantle to move this or similar legislation, we anticipate it will rise up on their agenda after they tackle infrastructure policy and a budget resolution. 

While President Biden and his administration have touted the benefits and potential of U.S. manufacturing and production, his administration’s actions so far have yet to offer any meaningful incentives for onshoring or supporting existing made-in-the-U.S. operations. At PeopleForBikes, we are continuing to consult the industry on policies we could support to meet the goals of the current administration.

Renew the Generalized System of Preferences

The Generalized System of Preferences (GSP) provides tariff relief for imported goods from developing nations. The last authorization for GSP expired on December 31, 2020, so the program remains lapsed.

We have been emphasizing the importance of renewing GSP to our Congressional allies for nearly two years, and there are signs of progress. The Endless Frontiers Act in the Senate also included a renewal of the Generalized System of Preferences through January 1, 2027. The reauthorization would be retroactive to December 21, 2020, allowing importers to recover tariffs on goods from GSP countries that were paid this year. If the bill moves through the House and becomes law, it would reform the GSP to promote human rights, the environment, women’s economic empowerment and other international goals of U.S. trade policy. It would also require the U.S. Trade Representative to review whether GSP countries are complying with these requirements more frequently. 

In the House, Democrats and Republicans are aligning behind two separate bills to renew GSP that differ in specific details. 

Work With Congress and Our Trade Allies to Pass a Free-Trade Environmental Goods Agreement

We continue to promote the concept of a free-trade agreement for goods that promote environmental sustainability and/or health and wellness — for which bikes are well positioned. Lawmakers should make it easier for Americans to purchase products like bicycles, electric bicycles and other bicycle products that help lower carbon emissions and enhance their well-being by facilitating the movement of these goods through an international free-trade agreement. While this issue is unlikely to see near-term movement, we continue to emphasize the importance of this issue to the United States Trade Representative. 

Work With Congress to Amend the De Minimis Shipment Rules

The De Minimis shipment rules provide duty-free treatment for shipments valued at $800 or less. This includes avoidance of Section 301 tariffs. These rules provide a substantial cost advantage to foreign retailers and disadvantage businesses that have a physical presence in the U.S. It also provides an easy avenue for products that don’t comply with required safety standards to reach Americans.

While De Minimis reform continues to remain elusive, PeopleForBikes continues to press Congress and the United States Trade Representative to support changes to De Minimis shipment rules, namely lowering the threshold for imports and ensuring that American consumers can purchase safety products like helmets that meet rigorous testing regulations. 

The Miscellaneous Tariff Bill (MTB) provides tariff relief for products that lack a domestic manufacturing base. The most recent MTB, which provided limit relief for bicycle products such as disc brakes, expired at the end of 2020. Led by PeopleForBikes, our industry substantially increased its engagement in the administrative process that determined what products were included in the MTB in 2019 and 2020. This resulted in a significant expansion of products recommended for relief in the next MTB in the 2020 report issued by the U.S. International Trade Commission. We are now awaiting the final step in this process, which requires Congress to pass a bill containing those recommendations.

The Endless Frontiers Act in the Senate included the 2020 recommendations, which would go into effect until December 31, 2023. It also reauthorized the U.S. International Trade Commission to issue recommendations for two additional cycles of MTB relief, starting in 2022 and 2025. We’ll continue to push the House to pass these recommendations.

Significant progress has been made on key bike industry trade issues in 2021, and we anticipate that several of our priority issues will see successful outcomes. We anticipate that Section 301 reform, GSP renewal and passage of the MTB are questions of when — not if. While the details of Section 301 and GSP remain uncertain, there is significant pressure on Congress and the Biden Administration to act. PeopleForBikes will continue to press our agenda forward with the goal of securing several big wins for the bike industry in 2021.

Looking for a way to help? We need to make sure Congress hears the bike industry’s trade priorities loud and clear. Click on one (or all) of the links below to send a message to your elected officials about some of our key issues:

How Movement on Trade Policy Is Affecting the Bike Industry

PeopleForBikes is dedicated to promoting pro-bike trade policies that support bike businesses, keep Americans riding and make bikes and bike products accessible to as many people as possible. 

We recently sent our 2021 trade agenda to President-elect Biden’s transition team, which included aggressive goals for reversing the harm bike businesses continue to endure under Section 301 tariffs. 

The bicycle industry has been deeply affected by every major recent tariff dispute and sanction, making planning difficult for bicycle suppliers, led to depleted inventories and driven up prices nationwide. Thoughtful trade policy will be critical for the continued success and growth of the U.S. bike industry. PeopleForBikes is actively pushing for tariff exclusions and policy reforms that create a more predictable and rational culture of trade policy in Washington, D.C. and we are proud to share our vision for U.S. trade policy with the new administration.

Domestic trade policy for bicycles should support seven key principles that provide economic, environmental and health benefits for Americans. 

Create Certainty: Fluctuations in U.S. trade policy limit investments in the future of the bike industry and harm customers. Trade policies should foster stability so that U.S. bike companies can plan their supply chains, align production with demand, invest in business expansion, hire new employees and increase wages.

Provide a Fair Playing Field: Sudden tariff increases of 25%-100% dramatically depress the economic success of the bike industry. Duties function no differently than changes to other cost inputs or taxes. When they increase, the companies paying those duties are less profitable. These cost increases select winners and losers, threatening the free market. 

Promote Domestic Growth: Participation trends for the U.S. bike industry are strong, and sound trade policy can help promote that growth even further. Our policies should encourage bike companies to invest in U.S.-based production and support small business bicycle dealers.

Leverage Opportunities to Achieve Climate Change Goals: Bicycling provides one of the most efficient modes of reducing carbon emissions from the transportation sector. Our trade and tax policies should recognize the potential of the bike to help achieve these goals.

Improve Public Health: Bicycling will not only help achieve environmental objectives, but make Americans happier and healthier in the process. U.S. trade policy should align with efforts to improve mental and physical well-being and reduce rising healthcare costs.

Increase Youth Participation: Young bike riders represent the future of the U.S. bike industry. Children’s bicycles and critical safety equipment must remain available and affordable for the long-term stability of the bike industry.

Encourage Investments in Developing Countries: The U.S. is a leader in helping other countries build stronger economic foundations. The bike industry can help America achieve this goal with policies that support investments in developing nations.

Read the entire agenda here. We look forward to sharing the progress we make with the new administration in the new year. 

PeopleForBikes is Advancing a Pro-Bike Trade Agenda in Washington, D.C. in 2021

Our goal at PeopleForBikes is to get more people riding bikes more often. Usually, this means working with communities, states, or the federal government to provide safer, more accessible places to ride so that every American has the opportunity and ability to bike where they live.

During the last five years, we’ve expanded our work in a variety of ways, including tackling international trade and tariff policy. In August 2017, the U.S. government launched an investigation into the trade practices of China — focusing primarily on the theft of intellectual property and forced technology transfers. This investigation and subsequent report became the basis for imposing heightened tariffs on imported goods from China, leaving many products and industries that have no connection to the underlying intellectual property or technology concerns, including bicycles, caught in the crossfire.

To maximize leverage in this trade conflict, the U.S. raised tariffs on products imported from China considerably— 25% above the normal rates for many goods, bicycles included. Unfortunately, most complete bicycles are already subject to a significant base tariff of 11% (well above the average weighted tariff for a U.S. import of 2%) and this increase brought the total tariff rate on most complete bikes to 36%. We knew there would be no way for bike companies to manage a cost increase of this magnitude without one of two consequences: 1) raising prices for consumers; 2) internalizing the cost and placing their businesses in jeopardy.

The vast majority of bicycle products sold in the U.S. are imported from China, including nearly 95% of all complete bicycles. As the U.S. Trade Representative began imposing the higher tariffs in 2018, we recognized the results would be harmful to all of our constituencies at PeopleForBikes:

Manufacturers and suppliers: Higher costs of importation and challenging searches to identify new potential suppliers outside of China.

Dealers: Eroded margins as brands and shops struggle to maintain sales in the face of more expensive imported goods.

Bike riders: Higher costs as the tariffs are incorporated into the retail price of goods.

None of these outcomes are good for American bike companies or people who bike. Even companies that manufacture frames domestically and build complete bikes in the U.S. rely heavily on imported components to create their finished products. By 2019, every bicycle product from China was slapped with a higher tariff— no business was immune to the effects of these policies.

The PeopleForBikes policy team has aggressively engaged at each stage of the tariff process. We objected to the higher tariffs at every hearing and public comment opportunity provided by the U.S. Trade Representative and explained the harm that new tariffs could cause. For nearly two years, these efforts provided nothing but frustration. Minimal tariff relief was provided. However, we stuck to our strategy and continued to seek tariff exclusions for bicycle products.

We knew from the beginning that the effects of the tariffs on certain product categories would be particularly dramatic from both an industry and customer perspective. Kids’ bikes were an area that became a primary focus of our trade advocacy.

97% of kid’s bikes sold in the U.S. come from China, so we were acutely concerned about the effect that higher prices could have on sales, and in turn, youth participation. Prices and margins on these products are relatively low, so the tariffs were likely to be passed on to the purchasers of bicycles quickly in the form of higher prices making them less accessible to many Americans. Bicycles also compete with an ever-expanding universe of electronic toys, gadgets, and screens to attract the interest and attention of our youth. Therefore, the cost of a bike is under constant comparison to an increasingly wide range of alternative forms of activity and amusement.

As this last point highlights, concerns regarding youth engagement in bike riding expand far beyond trade policy. Only 53% of kids ages 3-17 reported riding a bike in the last year, meaning we already lack a connection with nearly half of young Americans. PeopleForBikes has invested heavily to ensure that kids find safe, fun, and accessible places to ride. We have steadily supported the National Interscholastic Cycling Association, an organization focused on putting more kids on bikes through school-based mountain-biking leagues. We are partnering with USA Cycling, the national governing body for bicycling, to create a Youth Cycling Initiative specifically aimed at increasing youth participation and helping young Americans sustain bike riding throughout their lives. We know this is good for the long-term health of our industry and we believe it’s the right thing to do. More kids on bikes means more kids being active, engaging in healthy activities, and experiencing the outdoors. We saw the threat of higher tariffs posing new and unnecessary obstacles to achieving this vision.

Given these factors, we invested significant resources in filing exclusion requests for each category of kids’ bikes which fall under one of three different headings of the U.S. tariff schedule depending on their wheel size: less than 20”, 20”, and more than 20” but less than 26”. We filed an exclusion request for each of these categories and coordinated with bicycle brands to facilitate or assist in helping them file exclusion requests as well.

In December, those efforts were finally rewarded when all three of our exclusions for kids’ bikes were granted. The exclusions are retroactive to the date on which the tariffs were first imposed, Sept. 24, 2018, and will remain in effect until August 7, 2020. While this reprieve is not permanent, we estimate it will save the U.S. bike industry $120 million in extra duty payments that can either be reimbursed or completely avoided in the future. Bike purchasers will save even more.

While trade issues may seem outside the traditional work of PeopleForBikes, ensuring that Americans can affordably and easily access bicycles is critical to the future of bike riding in our nation. Currently, only half of Americans have access to a functional bike. This is one of the largest obstacles to people riding bikes more often, and it is a particularly significant barrier for women, older people, and lower income populations. If we want bike riding to thrive, we must maintain easy and unrestricted access to bicycles.

This battle does not end with kids’ bikes. We’ve made several other exclusion requests that remain pending, including those for adult bicycles. While each circumstance is unique, the reasons for providing relief to these products is equally as compelling as kids’ bikes in many ways. We’ll keep working to achieve similar positive results on these requests to further our mission of ensuring all people in the U.S. can bike easily and conveniently.

Tariff relief for kids’ bikes – a big win for young riders, family budgets and the bike industry

Topics

Trade and Tariffs