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July 6th - 25% China - > USA Import Tariff Approved! EUC's appear affected


WARPed1701D

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Not wanting to reignite the political discussion that this thread devolved into:

but news is that these tariffs have now been approved! :facepalm:

https://www.bbc.com/news/business-44498484

https://www.reuters.com/article/us-usa-trade-china-ministry/china-promises-fast-response-as-trump-readies-tariffs-idUSKBN1JB0KC

The original list of affected products has been revised since April with decisions on some items to be deferred to a later date...

Quote

The White House said the measures shouldn't hurt consumers, pointing out that items such as televisions that were included on the draft list had been taken off the list.

...but if EUC's remain a target in the initial list then their price in the U.S. is about to skyrocket to European levels on July 6th. If you want a new wheel you'd better get your skates on!

@Jason McNeil any idea if EUCs are still a target and if so what will happen to new wheel pre-orders that will arrive after the tariff date?

Edit:

List of affected items:

https://ustr.gov/sites/default/files/enforcement/301Investigations/List 1.pdf

I see this in there:

8703.80.00 - Motor vehicles to transport persons, w/electric motor for propulsion :furious:

 

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He sent out an update a couple days ago, if you are on the reserve list you might want to check your SPAM folder. That's where mine was. Luckily I saw that last night.

It looks like from the update that the first batch of air deliveries may beat the tariff date, but sea freight shipping may be after that.

That is a great question, though, since the tariff may be > than air freight cost. But he has not addressed this as being part of the cost.

 

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I’ve been following this story as well. If the current USTR tariff list imposed on Chinese products remains unaltered over the coming weekend it appears EUCs entering the US after July 6th will be affected. I’m still hoping that the Trump administration reverses the ruling and alternative measures to balance the trade deficit are implemented without penalizing the US consumer. 

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29 minutes ago, Circuitmage said:

He sent out an update a couple days ago, if you are on the reserve list you might want to check your SPAM folder. That's where mine was. Luckily I saw that last night.

It looks like from the update that the first batch of air deliveries may beat the tariff date, but sea freight shipping may be after that.

That is a great question, though, since the tariff may be > than air freight cost. But he has not addressed this as being part of the cost.

 

Accckk!  ?  Mine was in the spam folder also.  Thanks for mentioning that!

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15 hours ago, WARPed1701D said:

@Jason McNeil any idea if EUCs are still a target and if so what will happen to new wheel pre-orders that will arrive after the tariff date?

While Electric Cars are subsidized to the tune of $8k each, Electric Scooters/Unicycles get a punitive 25% tax. Yeah this is perfectly logical, to support an indigenous Wheel/Scooter industry that doesn't exist.

Awaiting news from the Broker, but if it's true, we're going to divert shipments to Canada...   

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<Quickly opens up EUC warehouse and shipping facility next to Amazon's new building here>  :w00t2:

Isn't it any time a made in China EUC crosses US customs clearance they are going to charge the tax?  Or does it only apply to shipments sent directly from China?  That doesn't make sense though.  I would think they base the tax on what item is coming in.  Slapping tariffs on the US's two largest trading partners to help protect locally made goods kind of makes sense, but considering the large amount of items the US imports, it's going to make it a challenge I think for the US to be more self-reliant.  I would think it is just going to make things more costly for people down there.  Meh, I'm no economicsologist so we'll see what happens.  :popcorn: 

EDIT:  Yeah, we got tons of warehouse space here considering the oil and gas industry tanked.  Lots of unemployment too, but it's slowly getting better I think.  There's always a cycle for these things.

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Coming soon: Hunka smuggling wheels over the U.S.-Canada border in the dark of the night:efee612b4b: The Gotway underground railroad. They call him the Maple Bandit - always just out of reach, and his true identity always a mystery. Catch him if you can!

My condolences for your upcoming European level prices. I'm serious, at least we pay VAT and theoretically get something for our tax money, but who gets the tariff money?

Maybe the manufacturers were wise to call EUCs wheelbarrows. Might be a way around having to pay these import duties. Hey, it's just a 1000+$ wheelbarrow, nothing to see here! :efee612b4b:

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I was just thinking that this is probably the first time in history that anything may be cheaper in Canada than the US.  

Anything that makes using EUCs or other electric transportation less practical, whether legally or through tarrifs, is starting to drive me nuts.  

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It really depends on how EUCs are classified when they are imported to the US. Here are some Tariff classifications that I found that could be applied to EUCs:

  • 8703.80.00 - Motor vehicles to transport persons, w/electric motor for propulsion - Trump Tariff
  • 8711.60.00 - Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars, with electric motor for propulsion - NO Trump Tariff
  • 8711.90.01 - Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars, OTHER - NO Trump Tariff
  • 9506.91.00 - Articles and equipment for general physical exercise, gymnastics or athletics; parts and accessories thereof - NO Trump Tariff
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Are parts from China going to be taxed?  Say for example a fully assembled wheel is, but if someone imports a bunch of plastic shells, some electronic control boards, battery packs, motors, and pedal assemblies are they going to individually tax them?  Maybe if EUC's are dinged, the companies can import a kit instead?  Or would they see that as the same as a fully assembled wheel?

Maybe if I were to join four EUC's together, add in some sort of rack and pinion steering mechanism, I could drive four down at a time while quality testing them and catch a bus back.  The fifth could be disassembled in the trunk as my "spare tire." :whistling:  :ph34r:  Not that I would ever try to illegally circumvent the good laws of the US of A for the EUC community's greater good even though it could be an option.

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5 hours ago, Jason McNeil said:

Awaiting news from the Broker, but if it's true, we're going to divert shipments to Canada...   

Wouldn't they hit you for tariffs when you send them to the states? Seems like an obvious way to get around tariffs I can't imagine this hasn't been thought of before.

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1 hour ago, Hunka Hunka Burning Love said:

Are parts from China going to be taxed?  

When I looked through the list I noted that Lithium Batteries and motors of assorted wattage output are also to be taxed. I guess you'd get away with the shell and the maybe the PCB.

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1 hour ago, Michael Vu said:

It really depends on how EUCs are classified when they are imported to the US. Here are some Tariff classifications that I found that could be applied to EUCs:

  • 8703.80.00 - Motor vehicles to transport persons, w/electric motor for propulsion - Trump Tariff
  • 8711.60.00 - Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars, with electric motor for propulsion - NO Trump Tariff
  • 8711.90.01 - Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars, OTHER - NO Trump Tariff
  • 9506.91.00 - Articles and equipment for general physical exercise, gymnastics or athletics; parts and accessories thereof - NO Trump Tariff

Looking at the tariff schedule, I think 8711.60.00 seems most likely. Otherwise, if electric only propulsion motor vehicle, then might be special duty rate depending on state.

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5 hours ago, meepmeepmayer said:

Coming soon: Hunka smuggling wheels over the U.S.-Canada border in the dark of the night:efee612b4b: The Gotway underground railroad. They call him the Maple Bandit - always just out of reach, and his true identity always a mystery. Catch him if you can!

My condolences for your upcoming European level prices. I'm serious, at least we pay VAT and theoretically get something for our tax money, but who gets the tariff money?

Maybe the manufacturers were wise to call EUCs wheelbarrows. Might be a way around having to pay these import duties. Hey, it's just a 1000+$ wheelbarrow, nothing to see here! :efee612b4b:

wheelbarrow.... ? Genius

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The product classifications that effect Electric Unicycles/Scooters currently fall into is the 8711.60, which is part of Annex C. From what I understand,  these will NOT come into effect on July 6th, which is at least a temporary reprieve for us & our Customers concerned about what this action will have on their back-orders. 

  • Component Input value: because the battery cells are made in Korea (possibly Japan for the Sanyo 3.5Ah GA cells) & represent around 50% of input costs, does this mean the packs can be shipped outside the assembled Unicycle & are exempt from the new tariff? Our broker is trying to make this assessment.
  • Final US Assembly: possibility of setting up a final assembly facility in the US. There's various Pros & Cons to this approach, some  componentry, such as the Motors, will still be taxed at 25% rate, but it could be an an acceptable way through this situation; also a foot in the door for starting independent product development outside CN.  

"Effective date of duties: The additional duties set out in Annex A to this notice are effective with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after July 6, 2018. Comment and hearing deadline: To be assured of consideration, you must submit comments and responses with respect to the proposed list of products in Annex C to this notice in accordance with the following schedule:

In other words, USTR is inviting comments on maintaining or removing a subheading currently listed in Annex C, not on the tariff subheadings in Annex A, or any other subheading" 

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11 hours ago, Hunka Hunka Burning Love said:

Are parts from China going to be taxed?  Say for example a fully assembled wheel is, but if someone imports a bunch of plastic shells, some electronic control boards, battery packs, motors, and pedal assemblies are they going to individually tax them? 

This is exactly the trick Tesla uses to get their cars cheaper into Europe. They ship them in parts and do final (re)assembly in Europe.

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