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SECTION 201 SAFEGUARD PETITION FILED ON CERTAIN ASSEMBLED BICYCLES

I. In-Scope Products:

The definition of the imported article subject to this petition is complete bicycles having a Customs Value under $400, without regard to the value of accessories on or imported with the imported article. For purposes of this petition, a complete bicycle includes a fully-assembled unit comprised of all component parts and requiring no additional assembly, fabrication, or finishing operations. Complete bicycles subject to this petition also include 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.

Complete bicycles subject to this petition 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.

II. Excluded Products:

Motorized bicycles – These items are distinguishable in terms of physical characteristics because they incorporate an integrated motor as part of the complete bicycle.

Bicycles exclusively for fleet use by bike-sharing services – These items are distinguishable in terms of physical characteristics because they include permanently integrated hardware and/or software interfaces that transmit information to a docking station or a mobile app to enable ride-share use.

High-value bicycles – Items of this type have a declared Customs Value per bicycle in excess of $400 per item.

Tricycles, including industrial tricycles; pedicabs; and commercial vending cycles – These items are distinguishable in terms of physical characteristics. Tricycles are three wheeled cycles. Industrial tricycles, pedicabs, and commercial vending cycles have a loadbearing and load-balanced design, and typically include structural elements that enable
transportation of cargo and/or more than one person.

Stationary exercise bicycles – These items are distinguishable in terms of physical characteristics and uses. Stationary exercise bicycles are permanently mounted on an immobile base to prevent transport of any kind.  These items cannot be used for either on-road or off-road transportation. These items may also include mechanisms to adjust resistance to increase/decrease the level of difficulty required to operate, as well as hardware and/or software interfaces to monitor output and/or connect to a user interface. These items are used primarily for indoor fitness conditioning and/or physical therapy applications.

III. Countries Affected:  Applies to imports from all countries.

IV. Safeguard Tariff/Quota:

Year 1 Year 2 Year 3 Year 4
In-Quota Tariff 11% on first 15 million imported units 11% on first 14 million imported units 11% on first 13 million imported units 11% on first 12 million imported units
Out-of-Quota Tariff 61% 61% 61% 61%

 

• A reduction of the de minimis threshold for imported bicycles from $800 to $50 for a period of at least four years.

• Duty-free treatment for component parts imported by U.S. producers of mass-market bicycles, upon certification that such components shall be used in the production of such bicycles, for a period of at least four years.

V.   Petitioners:  Bicycle Corporation of America and Detroit Bikes

VI. Timing:

• Petition Filing Date: October 18, 2018.

• ITC Injury Determination Due – 120 days (can be 150); February 15, 2019 (March 17, 2019).

• ITC Remedy Recommendation Due to President – 180 days; April 16, 2019.

• Presidential Remedy Determination – 60 days after Report; June 15, 2019.

If you have questions regarding how this investigation may impact future imports of scope merchandise, or whether a particular product is within the scope of the investigation, please contact one of our attorneys.

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