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Administration grants more tariff exclusions for bikes, tires, and trailers

Published February 3, 2020

WASHINGTON (BRAIN) — The Trump administration has announced additional Chinese tariff exclusions for some bike-related products. The exclusions exempt importers from the 25% tariff imposed by the administration as part of its trade war with China. Importers also can request repayment for the tariffs they've previously paid. 

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The new exclusions, announced Friday, apply to imports of:

  • Wire-beaded tires "weighing not more than 2.27 kg each."  (Imported under the HTS code 4011.50.0000)
  • Bikes with both wheel diameters not exceeding 63.5 cm, with a single gear and a coaster brake (HTS 8712.00.3500)
  • Bikes with both wheels exceeding 63.5 cm in diameter, each having no more than three speeds and a coaster brake (HTS 8712.00.3500)
  • "Wheeled trailers suitable for towing behind an adult bicycle, each comprising a frame of aluminum with a hitch mechanism, weighing not more than 17.5 kg, with a capacity of not more than 46 kg, with those trailers designated for carrying children meeting ASTM International standard F1975 (HTS 8716.40.0000)

The exclusions expire Aug. 7.

The bicycle exclusions were requested by Priority Outdoor Products and Huntington Beach Bicycle Company.

The trailer exclusion was granted at the request of Burley and the tire exclusion was at the request of Bell Sports. All importers of products meeting the descriptions are allowed the exclusions.

In its request for the exclusion, Bell Sports, which is owned by Vista Outdoor, said, "We have met (and continue to meet) vendors with factories in other countries, but none have a comparable technology to compete with our existing (Chinese) vendor at a price that is expected in the mass market. Another main reason is the available resources of natural rubber in China."

In its request for exclusion, Burley noted that until 2007, the company manufactured all its trailers in Eugene, Oregon.

"Cost of manufacturing had become so prohibitive that Burley was nearing bankruptcy, which necessitated a move to offshore manufacturing," the company said. "Quotes received in 2007 indicated that it was possible to receive a fully assembled and boxed product into the Burley warehouse (freight from China included) for less than the cost of the raw materials needed to produce trailer domestically."

Before moving production to China, Burley manufactured products in the Philippines between 2007 and 2010; after the imposition of the new tariffs Burley reached out to the Philippines manufacturer, who said they have not produced bicycle trailers for years, and do not have plans or capabilities to begin again.

"As Burley introduces new product lines and product categories, we are actively and aggressively seeking manufacturing partners outside of China. For example, two new product categories that will be introduced in 2020 will be manufactured in Portugal and Vietnam," the company said.

However, it said, bicycle trailers remain its core product and the company has invested "a significant amount of time and money into establishing a strong partnership with a Chinese manufacturer who is able to consistently produce a safe, reliable and affordable product for our consumers. Creating this same level of reliable, safe and affordable manufacturing partnership outside of China, if feasible at all, would take years, a significant capital investment for a company of our size, and would increase the retail prices offered to consumers considerably."

Topics associated with this article: Tariffs

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