CBP Says Electric Bike Country of Origin Based on Frame
Battery-powered electric bikes assembled in China from mostly Taiwanese parts are considered to be a product of Taiwan, CBP said in a Sept. 24 ruling. Yamaha Motor Corp. USA requested a CBP ruling on the country of origin of the electric bikes. Among the parts that are of Chinese origin are the batteries, “saddle seat, clips, fasteners, and brackets,” it said.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
CBP said previous rulings have found that the assembly and connection of batteries don't constitute a “substantial transformation” for country of origin. The assembly in China “involves minor operations such as cutting the fork and fitting it to the frame; affixing the wires, levers, pedals, crank and chain to the unit; connecting the wheels and brakes to the lever control system; affixing the label; attaching the seat post; and adding the battery and drive unit,” CBP said. “These simple assembly processes in China do not rise to the level of substantial operations.”
CBP said it also “has consistently found that the essence of a bicycle is its frame.” The materials sourced from Taiwan “include the frame, which is a finished and painted product when shipped to China, and the fork, which will be cut and fitted to the frame and mounted to the crown race in China,” CBP said.
The agency said the frame in this case “is a finished product that requires no further working when it leaves Taiwan and is assembled together with the other parts in China,” it said. “The frame gives the E-bikes their overall shape, size, and character. It is how the E-bikes are identified as bikes and is what makes the E-bikes a bike.” As a result, the country of origin of the electric bikes is “Taiwan, which is not subject to Section 301 duties,” CBP said.