56% tax on Harley Davidsons sold in european union

Started by Biketographer, April 20, 2021, 07:25:52 AM

0 Members and 1 Guest are viewing this topic.

Biketographer

MILWAUKEE, April 19, 2021 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson") (NYSE: HOG) has received notification from the Economic Ministry of Belgium, that following a request from the European Union (E.U.), the company would be subject to the revocation of Binding Origin Information (BOI) credentials, effective April 19, 2021.

Harley-Davidson 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 E.U. markets with certain motorcycles produced at its international manufacturing facilities at tariff rates of 6%.

The E.U.'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 E.U.

European OEMs, including motorcycle manufacturers, will continue operations with significantly lower import tariffs to the U.S. ranging from 1.2% for up to 800cc products to 2.4% for over 800cc products, and with automobiles at 2.5%.

Jochen Zeitz, chairman, president and CEO of Harley-Davidson: "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."

Notes to Editors – BOI Context
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 a 25% incremental tariff (31% total tariff) on motorcycles imported into the European Union from the U.S., including Harley-Davidson motorcycles. This tariff became effective June 22, 2018. The tariff is scheduled to increase to a 50% incremental tariff (56% total tariff) effective June 1, 2021.

Harley-Davidson remains committed to free and fair trade and is focused on ensuring it remains globally competitive, in the interests of its stakeholders and is committed to ensuring its customers around the world have access to its products.

Company Background
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road.
When in traffic:  "Never attribute to malice that which is adequately explained by stupidity" or, just a simple mistake.