Tariff Suspension Not Extended - Component Prices Affected
Washington, DC (derailedonline.com) - With the health care issues occupying legislatures time and thoughts, trade tariffs are at the bottom of the stack in DC. As such the tariff suspension that was set in place in 2006 and affected hydraulic brakes, speedometers, and bicycle tubing was not extended and tariff's resumed as of January 1, 2010.
Importers are now paying a 10 percent duty on all items that come into the US that fall into the categories specified by the government. With the poor economy, it will be hard for companies to absorb this extra cost. Consumers shouldn't be surprised if by the start of the heavy bike sales season there is an increase in the cost of certain bicycle components.
There is a small list of countries that this import duty tariff will not affect. The Free Trade Agreements the United States has with Australia, Bahrain, the Dominican Republic and Central America, Israel, Jordan, Chile, Andean countries, African nations, Morocco, Singapore, Chile, Oman and Peru, are unaffected, bike parts coming in from those countries are still duty free.
Being that most hydraulic bicycle brakes either come from Europe or Taiwan, brake prices are somehow going to be affected by this change in legislature.
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Posted on Jan 6, 2010 14:21:20 -0400 by Brady.