The International Trade Commission (ITC) has received a petition requesting higher tariffs and other measures be imposed on imports of assembled bicycles into the U.S. The petition, filed on October 18, 2018 by the Bicycle Corporation of America and Detroit Bikes, requests that all bicycles valued under $400.00, from any country, be imported under a tariff-rate quota.
The scope of the petition covers:
(a) fully assembled units comprised of all component parts and requiring no additional assembly, fabrication, or finishing operations and;
(b) bicycles imported in any partially-assembled format with all necessary, dedicated components (with or without pedals) included upon importation; e.g. a knock down kit.
Subject bicycles may be imported under the following HTSUS Subheadings 8712.00.1510, 8712.00.1520, 8712.00.1550, 8712.00.2500, 8712.00.3500, 8712.00.4400, and 8712.00.4800.
The ITC has 120 days to review the petition and make a decision. If they find it necessary this timeline could be extended to 150 days from the date of the petition. If the ITC determines the threat to U.S. industry is affirmative, they will recommend relief to the president within 180 days after the petition was filed.
The petitioner in this case is seeking a tariff-rate quota for a period of not less than four years imposing an 11% tariff on the first 15 million units in the first year; this quota would decline by one million units per year.
A 61% tariff on imports above the annual quota outlined above.
They are also requesting a reduction of the de minimis (section 321) threshold from $800.00 to $50.00, for at least four years. The petition cited this is necessary to prevent circumvention of the safeguard, specifically in the form of direct to customer sales.
They have further requested duty-free treatment for components parts imported by U.S. producers of mass-market bicycles, upon certification that the components will be used in the production of such bicycles, for at least four years.
The president, upon receiving recommendation from the ITC, will make the final decision, as well as the form, amount and duration of the relief. The safeguard may initially be imposed for up to four years and extended for no more than an additional four years.
October 18, 2018
Petition was filed with ITC
February 15, 2019
Decision expected (120 days)
March 17, 2019
Decision date if extended (150 days)
April 16, 2019
ITC recommendation due to President (180 days)