AMD262 May 2021 American Motorcycle Dealer 262 May 2021

MAY 2021
S & S BAGGER RACING BACKING

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EU Increasing Harley Tariffs to 56 % Effective June 2021 ; H-D Posts Improved Results for Q1

MAY 2021

ISSUE # 262

S & S BAGGER RACING BACKING

In what it has described as an " aggressive EU tariff ruling ," Harley-Davidson , Inc . says it has received notification from the Economic Ministry of Belgium that , following a request from the European Union ( EU ), the company would be subject to the revocation of Binding Origin Information ( BOI ) credentials , effective April 19 , 2021 . Harley-Davidson says it will be lodging an immediate legal challenge to this decision . " Since 2019 , the company has operated with BOI regulatory credentials , allowing it to supply its EU markets with certain motorcycles produced at its international manufacturing facilities at tariff rates of 6 %. " The EU ' s new ruling will apply to the entire Harley-Davidson product portfolio and will effectively prohibit the company from functioning competitively in Europe . From June 2021 , all Harley-Davidson products ,
regardless of origin , will be subject to a 56 % import tariff within the EU ." European OEMs , including motorcycle manufacturers , will continue operations with significantly lower import tariffs to the U . S ., ranging from 1.2 % for up to 800 cc products to 2.4 % for over 800 cc products , and with automobiles at 2.5 %.

optimism returning

Jochen Zeitz , Chairman , President and CEO of Harley-Davidson , stated : " This is an unprecedented situation and underscores the very real harm of an escalating trade war to our stakeholders on both sides of the Atlantic . " The potential impact of this decision on our manufacturing , operations and overall ability to compete in Europe is
significant . Imposing an import tariff on all Harley-Davidson motorcycles goes against all notions of free trade and , if implemented , these increased tariffs will pose a targeted competitive disadvantage for our products against those of our European competitors ." This news release was issued by Harley at 6:30 a . m . on April 19 , and in guidance notes that accompanied it , the company said that " notification was received from The Director General of Economic Analysis and International Economy , Federal Public Service Economy ( the Economic Ministry of Belgium ) at the request of the European Union , that pursuant to the Implementing Decision ( EU ) 2021 / 563 of the European Commission of March 31 , 2021 , Harley-Davidson would be subject to the revocation of the Binding Origin Information ( BOI ) credentials by the Belgian Economic Minister effective April 19 , 2021 . " In 2018 , the European Union placed
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BMW R nineT cruisers may be created equal , but they rarely stay that way . Reigning AMD World Champion Dmitry Golubchikov ( Zillers Garage , Moscow ) is making sure of that - see pages 31-33 .