E-bike sellers and potential buyers in the U.S. can all breathe a sigh of relief, following a recent ruling by the US Customs and Border Protection stating that electric bicycles are excluded from the 25-percent tariffs being imposed on products imported from China, according to a report by Bicycle Retailer. Though, it all might only be temporary.
- The U.S. Customs and Border Protection rules that electric bikes are excluded from the 25-percent tariffs being imposed on China.
- A ruling on the classification of electric bikes was issued after Kent International and Allco Manufacturing requested clarity on the matter.
- The current 25-percent tariff exclusions on electric bikes and electric motorcycles are scheduled to expire in August.
The U.S. Customs and Border Protection has ruled that electric bicycles fall under the same classification as electric motorcycles, essentially excluding the electric pedal bikes from the 25-percent tariffs being imposed on products from China.
There had been some confusion over the classification due to the fact that electric bicycles hadn’t been specifically named in the tariff exclusion, which was imposed by President Trump in August 2018.
The F-wheel DYU is one of several e-bikes made in China and imported to the U.S. (Photo: F-wheel)
The news clearing up the matter offers some relief for e-bike buyers and bicycle sellers in the U.S., given how tariffs impact the cost of products imported from China, where the majority of e-powered bikes sold in the U.S. are manufactured.
The clarification was issued by U.S. Customs and Border Protection after Kent International and Allco Manufacturing contacted the federal department, contending that electric bicycles should be excluded from the tariffs.
However, the ruling might only be offering temporary relief for all those reveling in the news, given that the current exclusions are expected to expire in August 2020, under the current trade agreement with China.
WHY THIS MATTERS
The U.S. Customs and Border Protection ruling on the exclusion of electric bicycles from the 25-percent tariffs being imposed on China could help boost e-bike sales in the US in early and mid 2020. The ruling could also present some interesting dynamics regarding the classification of e-bikes in other areas down the road.