30 Oct 2018
Safeguard Petition on Bicycles Reportedly Withdrawn
A U.S. press report indicates that the global safeguard petition filed on 18 October with the U.S. International Trade Commission against imports of assembled bicycles valued under US$400 from all sources has been withdrawn following a confidential settlement agreement. The petition was filed under section 201 of the 1974 Trade Act, which requires the USITC to determine whether an article is being imported in such increased quantities as to be a substantial cause or threat of serious injury to a U.S. industry. Section 201 investigations do not require a finding of an unfair trade practice such as under the antidumping and countervailing duty laws.
The safeguard petition covered (i) fully-assembled units comprised of all component parts and requiring no additional assembly, fabrication or finishing operations; and (ii) bikes imported in any partially-assembled format with all necessary, dedicated components (with or without pedals) included upon importation (e.g., a knock-down kit). Subject bikes were classified under HTSUS subheadings 8712.00.1510, 8712.00.1520, 8712.00.1550, 8712.00.2500, 8712.00.3500, 8712.00.4400 and 8712.00.4800.
A section 201 safeguard against imported bikes would have had a particularly negative impact on mainland Chinese products, which accounted for 65.8 percent of all U.S. imports of subject merchandise in 2017 (worth US$865.3 million) as well as 65.0 percent of all U.S. imports of subject merchandise during January-August 2018 (worth US$634.7 million).