WASHINGTON (BRAIN) — The subject was supposed to be the 25 percent tariffs the Trump administration wants to impose on virtually all bicycle products coming out of China.
But at a hearing in Washington Monday before the Section 301 Committee, Patrick Cunnane went in a slightly different direction and proposed a solution to unfair competition from China: lowering the minimum value of imports that triggers U.S. Customs to impose duties.
Cunnane is CEO of Advanced Sports Enterprises, the parent company of the Performance Bicycle retail chain and e-commerce business and owner the Fuji, Kestrel, Breezer and SE bike brands.
Cunnane told the multiagency committee that the current $800 minimum, often called the de minimus, allows offshore sellers to ship many bike products into the States without the collection of duties. Even before the new duties that the Trump administration has enacted or proposed, many bike products are subject to duties of 11 percent or more. In addition, Cunnane pointed out, the overseas sellers don’t collect state taxes.
Cunnane proposed lowering the minimum to $50. “The minimum tariff could be $50 for orders between $50 and $200, and 20 percent for sales between $200 and $1,000, and normal duty above $1,000,” he told the …read more