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E-bikes to attract 5% import tariff

March 1, 2018

The Federal Department of Home Affairs announced on the 28th of February 2018 that all power assisted pedal bicycles are subject to a 5% import tariff.

Previously, power assisted pedal bicycles have been exempt from the the import tariff but after an application from Stealth Electric Bikes Pty Ltd, this exemption has been revoked.

Application details can be found on page 7 at  http://www.homeaffairs.gov.au/domesticmanufacturersandproducers/documents/tc18-02.pdf

The published information on the approved application can be found in the latest government gazette on page 14 at http://www.homeaffairs.gov.au/domesticmanufacturersandproducers/documents/tc18-08.pdf

The decision was made because it was determined that 'Substitutable goods produced in Australia in the ordinary course of business by Stealth Electric Bikes Pty Ltd, Springvale, Vic'.

The decision relates to power assisted pedal bicycles and SCOOTERS AND/OR MOTORCYCLES, electric, having a rear hub motor NOT less than 1 500 W.

The application was made on the 9th of Jan and all import tariffs are backdated until that time.

This means that any power assisted pedal bicycles that landed in Australia from this date is subject to the tariff.

A grace period may be applied for if your bicycles left their origin prior to the 9th of Jan and arrived in Australia prior to the 6th of February - it may be granted but is not gaurnateed.

 

All power assisted pedal bicycles are subject to the tariffs, but bicycles manufactured in countries which Australia have a signed Free Trade Agreement are able to avoid paying tariff or receive a refund for the tariff due to the FTA. 

 

To utilise the FTA, importers must provide evidence of the country of origin.

Country of origin is defined by - the location it underwent its final substantial transformation.

https://www.accc.gov.au/system/files/1168_Country%20of%20Origin%20and%20the%20ACL_FA.pdf

 

The origins of bikes most affected as they do not have a FTA are Taiwan, India and the European Union.

 

A complete list of FTA's can be found at http://dfat.gov.au/trade/agreements/Pages/status-of-fta-negotiations.aspx

The BIA has submitted a tariff exemption (TCO) application for power assisted pedal bicycles with a maximum power output of 250w. 

The aim of this application is for all bicycles with a maximum power output 250w or below to be exempt from the tariff. 

 

The process for this application is expected to be up to 4 months, during which time all importers must pay appropriate import tariffs.

 

If the TCO application is successful, importers will receive a refund for the tariffs paid.

Through political relationships, we have also had the matter raised in Senate estimates and will continue to pursue through political channels. 

 

Any issues relating to the health, environmental and transport benefits were not considered in the tariff review process, but may be considered in a political process. The outcome of any political lobbying is not known and will take an extended period of time.

 

PLEASE NOTE - this TCO relates to power assisted pedal bicycles, the application regarding complete bicycles and bicycle frames will be reviewed in coming weeks.

If you require further information please contact your freight forwarder or the BIA at office@bikeoz.com.au or 0438871271

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