100% Tariff on all European bikes - Husky, KTM, Gas Gas, etc

[Creeper]

Here's a copy of the letter sent by Harley-Davidson Motor Co.
Remember that they recently bought MV Agusta and have every intention of importing motorcycles made in Italy.

December 2, 2008

Office of the United States Trade Representative

Attention: Ms. Sandy McKinzy Fax 202-395-3640
cc: www.regulations.gov

Re: Docket No. USTR-2008-0036
Review of Action Taken in Connection with WTO Dispute Settlement Proceedings on the European Communities’ Measures Concerning Meat and Meat Products

Harley-Davidson Motor Company (“Harley”) appreciates the opportunity to comment on possible modifications to action taken by the United States Trade Representative in the EC-Beef Hormones dispute. With these comments, we are registering our opposition to the inclusion of motorcycles (HTS 87112000 and HTS 87113000) in Annex II in any revised list for the imposition of increased duties. We do not believe any class of motorcycles manufactured in any member state of the European Communities should be subjected to increased rates of duties on account of the beef hormones dispute.

Of the approximately 80 product classifications listed in Annex II, all but 5 are related to agriculture and/or food. Of the remaining 5 classifications, 2 are motorcycles. Lumping motorcycles together with 75 agricultural and food product categories politicizes and draws unneeded attention to motorcycles as a special class of goods. In our opinion, doing so only invites European regulators to consider targeting U.S.-manufactured motorcycles for punitive duties in the next major trade dispute between the United States and the European Communities, regardless of the issue under dispute.

We are concerned because this has happened before. In 1999, USTR placed European-made motorcycles on the list of goods potentially subject to punitive duties, in response to Europe’s continuing refusal to allow the import of American beef treated with growth hormones. The appearance of European-made motorcycles on USTR’s sanction list caused a stir in our industry and was widely reported in the media. Although European motorcycles were eventually dropped, their initial inclusion on USTR’s retaliation list was not forgotten by European trade officials. In the next major Trans-Atlantic trade dispute, namely over steel tariffs, the EU specifically targeted American-made (read, Harley-Davidson) motorcycles for punitive levies up to 30%. It was only through an extraordinary effort that Harley was successful in having its motorcycles removed from the EU’s retaliation list. Harley’s effort consumed countless hours and substantial resources in mustering European motorcycle enthusiasts, dealers, suppliers and industry allies to help it convince Brussels that Harley-Davidson motorcycles should not be drawn into the steel tariff dispute. Accordingly, we request that the motorcycle categories identified in Annex II not be included in any revised list for additional duties. With all due respect, we do not believe the motorcycle industry on either side of the ocean should be drawn into a Trans-Atlantic fight over beef hormones.

There are additional reasons for not subjecting European-made motorcycles to additional duties in the beef hormone dispute. In August of this year, Harley-Davidson, Inc., the parent company of a group of motorcycle companies including Harley, completed the purchase of the privately-held Italian motorcycle manufacturer, MV Augusta Group (“MVAG”). Besides producing large displacement, high performance sport motorcycles, MVAG also produces lightweight motorcycles sold under the Cagiva brand name. These include three models powered by a 125 cc engine and thus covered under HTS 87112000 in Annex II. While no final decision has been made, it is abundantly clear that bringing these or similar Cagiva models to the United States would not be feasible for Harley-Davidson, Inc. or U.S. dealers handling MVAG products if additional duties were imposed.

It is also important to note that Harley-Davidson motorcycles in the United States are sold through a network of approximately 680 dealers. These dealerships are independently owned and operated and some are multiline, in that they also sell other brands of motorcycles including European-made motorcycles identified in Annex II. In these recessionary times, it is important that all of Harley’s dealers, including those handling competitive products, maintain their financial health. Imposing additional tariffs on European-manufactured motorcycles would be detrimental to the financial wellbeing of those multiline Harley dealers carrying them.

In conclusion, we wish to thank you for giving us the opportunity to explain why Harley-Davidson Motor Company opposes the inclusion of motorcycles on a revised list for the imposition of increased duties in the beef hormone dispute.

Sincerely,
Timothy K. Hoelter
Vice President, Government Affairs

 

[SwitchThrottle]

Wow....Do they really think that our motorcycles will put the pinch on the EU? They should be looking at lower cost items that everyone needs and uses like auto parts.

Never thought I would say this, but....GO HARLEY****************************************

 

[Creeper]

Coffee,
Can you forward your opening letter to Ryan Young at ryan@rypusa.com (Sherco and Scorpa importer), Dale Malasek at Gasusa@gasgas.com (Gas Gas importer) and to Ron Commo at winrcs1@aol.com (Beta importer).
If you did post on Thumper Talk under the Husky link, the exotics and trials section are both very active also.
My fax will be going out in the morning when I get to the office.

I sent an e-mail to Ryan Young with a copy of Coffee's opening post and the H-D letter... the rest are up to you.

C

 

[Norman Foley]

Wow....Do they really think that our motorcycles will put the pinch on the EU? They should be looking at lower cost items that everyone needs and uses like auto parts.

Never thought I would say this, but....GO HARLEY****************************************

Harley has never been in the Tariff game....... Those old Jap bikes were 700cc's for a reason!

 

[Flying Trash Can]

I'm in.

Here a copy of the letter I just fired of to them.







Attention: Office of the United States Trade Representative

Regarding: Reclassification of EU motorcycles from Annex 2 products to Annex 1 products.

To whom it may concern:

Reclassifying European motorcycles from a class 2 annex product to a class 1 annex product and therefore raising the tariff by 100% would create a huge economic burden on my friends and family that work in the motor sports industries. Many of these business’s are already in danger of closing their doors because of our current economic conditions. The possibility of doubling the price on the vehicles and parts that they sale would be disastrous and on a national level and it would significantly raise our un-employment rate beyond its current 26 year high.

The possible reclassification would also create a financial burden on myself and others that own and maintain these vehicles.

While I agree that compliance with WTO decisions is important and that we should move in such a way that the European Union will be compelled to comply with the WTO decision regarding the export of U.S. beef; this political and financial maneuvering should not be done in a way that will further harm our economy and further raise our un-employment rate.


Sincerely


Flying Trash Can (just kidding, I signed my real name)

 

[Coffee]

Here's a copy of the letter sent by Harley-Davidson Motor Co.
Remember that they recently bought MV Agusta and have every intention of importing motorcycles made in Italy.

Harley Davidson have a forum somewhere?

 

[eldgenb]

Fax Sent,,, So if this does not work,,, does that mean that my motorcycle just doubled in value???

 

[Coffee]

Fax Sent,,, So if this does not work,,, does that mean that my motorcycle just doubled in value???

Not if all the parts have to come from other parts of the world... I sure hope some dealers are mentioning how many people would be out of work. It has been posted on KTMTalk but it is not getting much of a response.
http://ktmtalk.com/index.php?showtopic=317535

 

[eldgenb]

crappy, I will let my local dealer know so that he can get the local husky owners responding.

 

[Creeper]

Harley Davidson have a forum somewhere?

Nope. I actually pulled that off of a PDF file page, from a link... from the link you posted.

Deep digger, am I.

 

[mrkartoom]

If a manufacturer such as Harley, as big and iconic as they are to the USA, strongly opposes it I don't see how the USTR could even consider adding motorcycles to the list of tariffed items. I think Harley's letter is very good. They have clearly presented how this nonsense would do great harm, not only to them but to their very large dealer network as well. It shouldn't take a mental giant to figure out the potential number of jobs that could be lost here. I'm not sure how anyone with a sense for economic stability could disregard it that letter. However, I'll send in a response from the consumer's point of view as well. rofessor: :guns a blazin':

Thanks for drawing this to our attention.

 

[Norman Foley]

Harley has never been in the Tariff game....... Those old Jap bikes were 700cc's for a reason!

I guess I'm the only one who sees any irony in Harley's position, not that disagree with it.

 

[Chop Suey]

Can anyone figure out how to suck the info out of the pdf attached to the first post?

I'll try printing then scanning using OCR....

Coffee, I've sucked and saved it as a Word document and can email it to you. It's too long to post in the body of a post here. The Annex I and II are graphic pictures embedded in the Word document, so not sure how those will fair.

Also, I think posting a comment attaches it to the Document ID, so if you’re doing it this way, find a Doc ID that deals with Motorcycles, not mustard or crackers!!

 

[mrkartoom]

I guess I'm the only one who sees any irony in Harley's position, not that disagree with it.

Is that just because of their displacement size? They are a prime target for reciprocation by the EU.

 

[Norman Foley]

Harley asked and got a tariff against Japanese motorcycles 750cc+ back when they were really struggling and didn't own Aermacchi anymore. Japs reduced displacements to 700cc to avoid the tariff. Harley has played both sides it seems.
Norman

 

[mrkartoom]

posted my comment

I fished around the site and found a way to submit a comment electronically. I went to the main site and did a search on "EC Beef". Then on the left side of the page under Agency click "USTR". On the next page left side again under Document Type you have the Public Submissions and the Notices. Click on the "Notices". You can submit a comment electronically here.

"Comments should be submitted (i) electronically via the Internet at http://www.regulations.gov, or (ii) by fax to Sandy McKinzy at (202) 395-3640. For documents sent by fax, USTR requests that the submitter provide a confirmation copy to http://www.regulations.gov."

You'll get a receipt like this below. It make take tme to show up in the list. I couldn't see mine yet.

*****

Comment Submitted Receipt Thank you. Your comment on Document ID: USTR-2008-0036-0001 has been sent. Your Comment tracking number is 807. . . . . . Attachments:





The electronic comments you submit directly through the Regulations.gov Web site are transmitted to the proper Department or Agency. The Department or Agency receiving your comment is considered the official custodian of the comment. Your comment will not be considered until it has been properly received by that Department or Agency in accordance with the requirements described in the Federal Register document. Users who want to verify that a Department or Agency has received their comment are urged to check directly with that Department or Agency.

Federal Departments and Agencies generally do not acknowledge that they have received specific public comments. However, when a Department or Agency establishes a public docket for a specific rulemaking, public comments are placed in that docket. The Department or Agency will process your comments upon receipt, but the availability of your comments in the public docket will depend on the particular Department or Agency's process.

Once the Agency has posted your comment on Regulations.gov, you can find it by clicking on 'Search for Documents' on the main navigation bar and type your Comment Tracking Number indicated above in the 'Comment Tracking Number' field and click the Submit button.


If you wish to retain a copy of this receipt, click on the Print button below to print a copy for your files.

 

[mrkartoom]

Harley asked and got a tariff against Japanese motorcycles 750cc+ back when they were really struggling and didn't own Aermacchi anymore. Japs reduced displacements to 700cc to avoid the tariff. Harley has played both sides it seems.
Norman

Haha! Makes sense now. I don't usually like to associate with them, but if they are a means to a good end here I'll cozy up.

 

[Coffee]

Coffee, I've sucked and saved it as a Word document and can email it to you. It's too long to post in the body of a post here. The Annex I and II are graphic pictures embedded in the Word document, so not sure how those will fair.

Also, I think posting a comment attaches it to the Document ID, so if you’re doing it this way, find a Doc ID that deals with Motorcycles, not mustard or crackers!!

webmaster@cafehusky.com or you could attach the doc on a post if it is not too big.

I understand that attaching a comment via the link in the first post directly connects the comment with this issue (Doc ID), not sure what you mean by finding a different doc ID on another issue. There is only 1 issue at the moment.

 

[Coffee]

...Your comment will not be considered until it has been properly received by that Department or Agency in accordance with the requirements described in the Federal Register document. Users who want to verify that a Department or Agency has received their comment are urged to check directly with that Department or Agency....

My plan is to call about 4pm EST and ask 'how is everything going?'

 

[Eurofreak]

Norm, +1-The irony is evident but it's business. I remember that time and Harley was looking for a leg up after buying themselves. I'm glad they're currently on the same side-didn't like it back then because their competition was what I was interested in...
Love an MV now

Just added my .02's worth to the website:
"I would add comments regarding the 100% tariffs on EU motorcycles with 50-500cc
engines. European dirtbike and street legal motorcycle sales in the US will never
survive a 100% increase in pricing.
1. The tariff cost will increase the typical European motorcycle to $14-16,000.
This will put these motorcycles beyond the reach of most enthusiasts,
especially in these difficult economic times.
2. Most European motorcycles are sold by small shops who cater to enthusiasts.
As they typically only carry the small volume European manufacturers' brands
this would force most if not all of these US businesses to close.
3. There are several small US aftermarket companies that also depend on the
European motorcycle sales for business. This will severely hinder or eliminate
their market in the US.
4. There is currently only one US manufacturer of dirtbikes. Their products
are boutique high priced products that are not direct competition for most of
the European products.
5. The European products fill a niche for economical street legal motorcycles
not produced by any US manufacturer.
I submit the tariff on EU motorcycle manufacturers will not have the desired
effect on the EU. Their volume of business in the US is not significant enough
to motivate the EU to change their US beef policy. Agricultural imports are the
best avenue considering the US is a direct competitor in most of not all
agricultural areas.
Thank you,
Peter J Komarek"
I submitted it through the link you posted Coffee-very easy.