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No Import Restrictions on Bicycles as Safeguard Petition Withdrawn

Wednesday, October 31, 2018
Sandler, Travis & Rosenberg Trade Report

A global safeguard petition filed recently seeking import restrictions on assembled bicycles valued under $400 from all countries has been withdrawn following a settlement agreement with the domestic producers that filed the petition.

The Section 201 petition filed with the International Trade Commission covered (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. It sought remedies in the form of (a) a tariff-rate quota imposing an 11 percent tariff on the first 15 million units imported (declining by one million units per year for four years), (b) a 61 percent tariff on imports above the applicable annual quota, (c) a reduction of the de minimis threshold for imported bicycles from $800 to $50 to prevent circumvention of the safeguard, and (d) duty-free treatment for component parts imported by U.S. producers of mass-market bicycles.

Any relief proposed by the ITC in a Section 201 safeguard proceeding is merely advisory and it is up to the president to make the final decision on whether to provide relief as well as its form, amount, and duration. Section 201 remedies may include tariff increases, quotas, TRQs, trade adjustment assistance, or any combination thereof as well as any other action authorized under the law that is deemed likely to facilitate positive adjustment to import competition.

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