Carbon frames imported from China to US granted tariff exemption

After a successful request by Massachusetts-based road bike brand Parlee Cycles, a tariff exemption has been granted on carbon bicycle frames imported to the US from China, reports Bicycle Retailer.

Importers of carbon bike frames up to a landed, wholesale value of $600 from China will not have to pay the 25% tariff slapped on imports from China to the US, including bicycle products, in August, which rose from the initial 10% tariff announced in September 2018. The tariff for the carbon frames has now been returned to 3.9% as part of the latest exclusions from the US Trade Representative.

The tariff exclusion expires on 7th August 2020, and importers can request reimbursement for the additional tariffs they have paid since they were imposed last year.

In its request, Parlee argued that moving production and setting up in the US to avoid the tariffs would be ‘cost prohibitive’, and passing on costs to consumers was ‘not an option’. Additionally, the carbon technology used in the frames was not of strategic importance, due to the manufacturing process already being well established in China.

This is the second exemption granted, the first being single speed road bikes, and there are 94 further requests for exemptions from the US bike industry.

Rick Vosper discussed depressed import numbers and re-sourcing production as he shed a light on the fallout from the tariffs for CI.N earlier this year.