The British Government has confirmed that bicycles entering the UK will get 0% tariffs for up to 12 months following a No Deal Brexit. Currently bicycles are free to import from other EU countries to the UK, however, bikes coming into the UK from outside the EU are subject to a 17% duty.
A No Deal Brexit would occur if the UK cannot come to an agreement about the "divorce" process with the EU. Overnight, the UK would leave the single market and customs union - arrangements designed to help trade between EU members by eliminating checks and tariffs. The UK is currently planning to leave the EU on October 31, however UK law says that an extension until January must be sought if a Deal cannot be struck with the EU before then. However, if the EU refuses to grant an extension, the UK will "crash out" with a No Deal at the end of the month. There is also another chance of No Deal happening in January if the extension is granted.
The Government's temporary tariff regime, published yesterday, is designed to minimize "costs to business and consumers while protecting vulnerable industries" in the event of a No Deal Brexit. It applies to 87% of goods imported to the UK, of which bicycles are a part.
The British government is hoping that having 0% tariffs will mean cheaper prices for consumers and encourage them to keep spending, despite a forecasted drop in the value of the pound. How will that affect the bike industry?
On the surface, it should mean that prices on bikes decrease for UK customers as the duties on imports will either stay the same (on EU products) or fall (on non-EU products) and this saving can be passed on to the consumer.
However, British cycling industry figures have voiced concerns that there is no guarantee how long the lower tariffs will last, that they already have stock that was bought under existing rates and that it may open the door to lower quality goods from countries that are currently subject to EU anti-dumping tariffs, such as China. There will also surely be further concerns from brands that manufacture in Britain and export to Europe. The goods they send to Europe would be subject to the EU's tariffs under a No Deal Brexit and prices will surely rise.
eMTB tariffs are set to remain at 6%.