PeopleForBikes, with assistance from its nearly 300 member companies, saved the bike industry more than $130 million in Section 301 tariffs since September 2018.
Section 301 tariffs represent added duties paid on nearly all imported goods from China.
PeopleForBikes said the U.S. Trade Representative (USTR) increased the added duties by 25 percent over the last two and a half years.
When the USTR created an exclusion process that companies and trade associations could use to request the removal of certain goods from the list of products subject to these increased tariffs, PeopleForBikes and its members sought relief for dozens of products, including electric bicycles, many complete bikes and most components, as well as helmets, lights and other bike-related products and accessories.
Recently faced with approaching expiration dates, PeopleForBikes filed dozens more requests asking that the exclusions granted be extended for another year. While some were denied, many of the extensions were approved, PeopleForBikes said.
PeopleForBikes also noted that a series of lawsuits were filed at the Court of International Trade to challenge the legality of the Section 301 tariffs for products included on List 3 and List 4a. These lawsuits argue that the Section 301 tariffs were issued in violation of the Trade Act of 1974 and the Administrative Procedure Act and requested that the List 3 and List 4a tariffs be vacated and repaid with interest. If successful, these cases could provide the opportunity for the bike industry to obtain relief from the Section 301 duties.
PeopleForBikes did not file a lawsuit but is closely monitoring the ongoing situation. The current status of exclusions and an in-depth look at Section 301 tariff accomplishments is available here.
