A Section 201 petition filed by Bicycle Corporation of America (BCA) and Detroit Bikes, submitted Thursday, October 18th, seeks a new, global safeguard on all imports (from all countries)of assembled bicycles valued under $400.
Under section 201, domestic industries seriously injured or threatened with serious injury by increased imports may petition the United States International Trade Commission (USITC) for import relief. The USITC determines whether an article is being imported in such increased quantities that it is a substantial cause of serious injury, or threat thereof, to the U.S. industry producing an article like or directly competitive with the imported article. If the Commission makes an affirmative determination, it recommends to the President relief that would prevent or remedy the injury and facilitate industry adjustment to import competition. The President makes the final decision whether to provide relief and the amount of relief.
Section 201 does not require a finding of an unfair trade practice, as do the antidumping and countervailing duty laws and section 337 of the Tariff Act of 1930. However, the injury requirement under section 201 is considered to be more difficult than those of the unfair trade statutes. Section 201 requires that the injury or threatened injury be “serious” and that the increased imports must be a “substantial cause” (important and not less than any other cause) of the serious injury or threat of serious injury.
The petition seeks higher tariffs and other regulatory measures for:
(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.
(c) HTSUS subheadings 8712.00.1510, 8712.00.1520, 8712.00.1550, 8712.00.2500, 8712.00.3500, 8712.00.4400, and 8712.00.4800.
Exclusions:
- Motorized bicycles
- Bicycles exclusively for fleet use by bike-sharing services
- High-value bicycles greater than $400
- Tricycles, including industrial tricycles; pedicabs; and commercial vending cycles
- Stationary exercise bicycles
Safeguard Quota, Tariff & Regulatory Measures:
In additional to quota and tariffs, the petition also seeks:
- Reduction inde minimisvalue for imported bicycles from $800 to $50;
- Duty-free treatment for component parts imported by U.S. producers.
Timing & Deadlines:
- Petition Filing Date:October 18, 2018
- ITC Injury Determination Due:120 days (Feb. 15, 2019); 150, if complex (March 17, 2019)
- ITC Remedy Recommendation Due to President:180 days (April 16, 2019)
- Presidential Remedy Determination:60 days after Report (June 15, 2019)
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