Sponsors (6)
Creates a temporary 10-year duty‑free rule allowing certain bicycle parts to be imported for assembly or manufacture into complete bicycles, tricycles, electric bicycles, or bicycle trailers without paying extra tariffs. Importers must certify to U.S. Customs and Border Protection (CBP) that the parts will be used for assembly and provide documentation when assembly is finished; the rule also excludes those parts from section 301 duties while it applies and authorizes CBP to write implementing rules. Requires a U.S. International Trade Commission (USITC) report within five years with production goals and other information, and is effective for 10 years from enactment.
Insert a new temporary heading (9903.87.11) into Subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTS).
Define “parts of bicycles” for heading 9903.87.11 as parts, accessories, or specific components that (i) are classified in the listed 8‑digit tariff provisions and (ii) are imported for assembly or manufacturing into complete tricycles or bicycles (including non‑motorized bicycles, electric bicycles, and bicycle trailers).
Define “assembly or manufacturing of complete bicycles” as fitting or joining fabricated components classifiable as parts of bicycles using standard industry processes to produce saleable bicycles requiring only minor user assembly/adjustment.
Require any importer claiming entry under heading 9903.87.11 to certify at the time of entry to the satisfaction of CBP that the parts will be used in assembly or manufacturing of complete bicycles.
Require importers to provide appropriate documentation to CBP upon completion of final assembly or manufacturing (or at another time CBP establishes).
Who is affected and how:
Importers and assemblers of bicycles, e‑bikes, tricycles, and bicycle trailers: They are the primary beneficiaries. Duty‑free treatment and the exclusion from section 301 duties lower input costs for parts used in U.S. assembly, improving margins or allowing lower retail prices. They must comply with certification and documentation rules and CBP enforcement.
Domestic parts manufacturers: Could face increased competition from imported parts that enter duty‑free, which may pressure prices and market share for some U.S.-based parts producers. However, increased assembly activity in the U.S. could also create demand for some domestically produced components.
U.S. consumers and retailers: May see lower prices or better availability of assembled bicycles and related products if import cost savings are passed along. Retailers sourcing assembled products domestically could benefit.
U.S. Customs and Border Protection (CBP): Will need to administer the certification and documentation regime, draft implementing regulations, and enforce compliance, increasing administrative workload.
U.S. International Trade Commission (USITC): Must produce a report within five years with production goals and related analysis, adding analytical and reporting responsibilities.
Federal budget/tax receipts: Potentially reduced tariff revenue while the rule is in effect; the bill does not appropriate new funds or create offsetting revenue measures.
Trade policy implications: Excluding covered parts from section 301 duties could be sensitive in contexts where those duties target specific countries or are used as leverage in trade disputes; stakeholders may debate the policy balance between supporting domestic assembly and protecting domestic parts industries.
Overall, the measure is narrowly targeted to the bicycle supply chain and primarily affects importers/assemblers, domestic parts producers, CBP for administration, and the USITC for reporting and evaluation.
Referred to the House Committee on Ways and Means.
Last progress June 11, 2025 (8 months ago)
Introduced on June 11, 2025 by Vernon G. Buchanan