U.S. Bicycle Production and Assembly Act
H.R. 3904, the U.S. Bicycle Production and Assembly Act, would temporarily suspend tariffs on imported parts used to assemble or manufacture complete bicycles in the United States for a 10-year period. The bill adds a new tariff heading (9903.87.11) to the Harmonized Tariff Schedule with a duty-free rate for “parts of bicycles” used for assembly or manufacturing. It defines what qualifies as “parts of bicycles” and what constitutes “assembly or manufacturing,” and it requires importers to certify at entry and to provide documentation when final bicycles are assembled. It also clarifies that these parts are not subject to additional duties under the Section 301 tariff or other laws while they are classified under this provision, with an alternate pathway for duty-free treatment if parts are later reclassified under certain 8-digit headings once 301 duties end. The bill includes a required report from the ITC within five years assessing effects on domestic production against stated goals (2 million bicycles annually within five years; 5 million annually within ten years), and it authorizes CBP to issue implementing rules. The 10-year window starts on enactment, after which normal tariff treatment would presumably resume unless otherwise extended. Introduced on June 11, 2025 by Rep. Buchanan (with Rep. Thompson of California), and referred to the Ways and Means Committee.
Key Points
- 1Temporary, duty-free treatment for parts of bicycles used to assemble or manufacture complete bicycles in the United States, via new HTS heading 9903.87.11.
- 2Definition and scope: “parts of bicycles” include parts, accessories, or components that are classified in specified tariff provisions and imported for assembly/manufacture into bicycles (including bikes without motors, bikes with electric motors, and bicycle trailers).
- 3Assembly standard: “assembly or manufacturing” means joining together fabricated components using standard industry processes to produce bicycles that only require minor end-user assembly or adjustment.
- 4Importer requirements: at entry, the importer must certify that parts will be used to assemble or manufacture complete bicycles and must provide documentation to CBP after final assembly.
- 5Duties and exclusions: parts claimed under 9903.87.11 are excluded from additional duties under Section 301 or other laws based on their classification, and may still be exempt if properly reclassified under certain 8-digit headings after 301 duties end.
- 68-digit subheading list: a long list of eligible subheadings (e.g., 3923.50.00, 3926.90.96, 8501.31.40, 8714.x.x, etc.) under which parts could be appropriately classified for duty-free entry once 301 duties are no longer in effect.
- 7Rulemaking and administration: CBP may issue rules to implement the act and may require information from importers claiming duty-free entry.
- 8Reporting requirement: ITC must report within five years on the impact of the amendments and whether goals of domestic bicycle assembly/production are being met (2 million bikes in 5 years; 5 million bikes in 10 years).
- 9Effective period: The provisions apply during a 10-year period beginning on enactment; they are not permanent and would expire unless extended or renewed.