When two people argue, the third one gets hurt
The EU wants to collect over 50 percent customs duties on Harley-Davidson motorcycles
(Frankfurt, May 5, 2021) In April 2021, news from Brussels caused great surprise at Harley-Davidson : The EU Commission has withdrawn the company's Binding Origin Information (BOI), which means that a “punitive duty” will be due – one that has it all: From June 1, 2021, Harley-Davidson will have to pay customs duties totaling 56 percent on every motorcycle sold in the European Union.
As a reminder, after the Trump administration decided in June 2018 to impose a 10 percent tariff on European aluminum products and 25 percent on European steel products for protectionist reasons, the EU hit back and published a list of US products - including motorcycles a displacement of more than 500 cubic centimeters - which have since been subject to additional tariffs when imported into the EU.
For the machines from Milwaukee, the customs duty increased from six percent to 31 percent. Harley-Davidson did not place the additional burden on the shoulders of its customers and instead bore the drastically increased costs itself for a while. It was only a good year later that the situation changed: since the end of 2019, almost all Harleys for Europe have come from Thai production and are a BOI -Approval by the EU now resulted in a moderate tariff rate of six percent for the import of these machines.
The EU wants this BOI to no longer apply and at the same time the “punitive tariff” will be doubled to 50 percent. This means that gasoline-powered Harley-Davidson motorcycles will in future be subject to an import tariff of a total of 56 percent, regardless of where they are manufactured. Harley-Davidson Authorized Dealers finds it quite unfair . V., because European motorcycle manufacturers can continue to export to the USA with significantly lower import duties: 1.2 percent are due for machines up to 800 cubic centimeters, up to 2.4 percent for bikes over 800 cubic centimeters and 2.5 percent for cars.
Matthias Meier , Chairman of the German-Austrian and European Association of Harley-Davidson Dealers explains: “The EU’s decision contradicts our idea of fair trading relationships. It puts our motorcycles at a stark competitive disadvantage compared to other brands and therefore has a massive impact on our business activities as authorized dealers." Antonio Perlot, Secretary General of the European two-wheeler manufacturer association ACEM, adds: "We are calling on the European Commission and the new US government to once again to begin a positive transatlantic trade dialogue. We remain committed to ensuring that both parties return to their senses and find a solution.”
However, it is not yet possible to predict what impact the EU decision will have on the European Harley-Davidson trade and European customers. “One thing is certain: the whole thing is much more than just unfair, it is a threat to our existence,” emphasizes Matthias Meier. “Almost all of us authorized dealers only sell the Harley-Davidson brand and ensure more than 10,000 new registrations with a bar and shield logo on the tank every year in Germany alone.
In this country, 67 authorized dealers with around 1,000 employees are affected by the potential effects, in Europe there are around 370 HD dealers and the number of affected jobs is around 5,500. And of course we shouldn't forget the thousands of customers in the EU. We don't want to be crushed between the millstones of politics in this trade conflict with our customers and the brand's fans. We therefore welcome it if the manufacturer Harley-Davidson appeals against the EU decision.”
The Association of Harley-Davidson Authorized Dealers continues to advocate for free and fair trade and hopes for the solidarity of the entire European motorcycle scene.
Association of Harley-Davidson Authorized Dealers v.
Now every Harley fan is in demand!
Link to the >>> PETITION AGAINST PUNITIVE TARIFFS
