In March 2011, BPSA and several of its member companies were notified that US Customs was imposing a 10% duty on cassettes by moving them from the “free-wheel sprocket wheels” category, where there was no tariff imposed, to the 10% tariff “other” category.
This is where trade associations really shine. BPSA Board members Trek, QBP and SRAM immediately jumped into action, and after five years of research, litigation and $117,500 in BPSA legal fees, a multi-step appeal process ending in the Court of International Trade recently resulted in victory.
Cassettes will now be re-classified the same as tariff-free freewheels, with companies entitled to refunds of duties paid from past years. Dozens of companies that spec, import or distribute cassettes will save millions of dollars based on this concerted effort shepherded by Matt Moore, BPSA’s Legal committee chair.
Moore summed up this unprecedented industry effort: “It’s a pretty big deal. It’s the first time we’ve gone to the Court of International Trade to resolve a tariff issue. And it’s remarkable that it was successful.”