The future doesn't look too good for American BMX companies.

will...

Likes Bikes and Dirt
This is pretty fucked. Basically, in America from like Feb 09 onwards, a BMX is a toy. and toys need compulsory lead testing if it comes from asia now. This costs absolute shitloads, because every single part, down to even different size bolts need to be tested. this can cost up to $300-$600 for a stem, and $8000 for a complete.

Anyone who dodges this and imports anyway gets fucked up basically.

read the whole thing for the info.

Taken from TCUB


I think this is pretty important. Read this first...http://www.vintagebmx.com/community/...27023813&st=40 Yes, it's a long read but this is important. Prices are going to raise. Small companies are going to fold. The new regulations will mostly affect completes and multi piece components.

I talked to with Bill from Supercross, heard from S&M and Bully. Some good quotes from Bill in the Vintage BMX Thread:
Hi Everyone,

We have had many phone calls about this and I had a few people ask me to post up on Vintage, so Mike, with your permission.

Here is what my understanding is from the attorney's as of yesterday.

1. All products must have a third party independant test for lead content not exceeding 660ppm. Each test is estimated to be at $50-$100 per pc. ( Here is where it gets sticky. On a Racerhead 2 stem that I used for example yesterday we were told originally that we have to test each anodized color as the dye for each color has different lead content, so I figured O.K. 5 colors 5 tests so it would be between $250 - $500 per run to test the colors, right? Well from what I am told that is very very wrong. It is $50 per base, $50 per top clamp, $50 per clamping wedge, and $50 per bolt of differing size. So a stem would cost $300 on the low side or $600 on the high side per production run, per color. So in essense on a run of 200 stems in 5 colors could cost $3,000 to get certification to sell. Add in varying sizes and the cost goes up. It could end up costing upwards of $9,000 per run for testing of 200 stems. Basicly an additional $45 per stem. So we will seriously have to look at how we manufacture our stems ( or any item ) now.

2. On our complete bikes, every pc of the bike needs to be tested, and this is regardless of whether the parts vendor has supplied certificates of compliance. Once it is put on to a complete, the whole unit needs to be re-tested. This could cost quite a bit as we have to test each model of bike, and each color of bike and any bike that has differing parts, so in essence every model, size and color. Frame, Fork, Bar, Stem (multiple parts on the stem, each part needs to be tested ), Headset ( how many parts are in the headset, way too may right ) Spokes, Brake Cable, Brake Cable Housing, Freewheels, Tires, Stickers ( Each Sticker that is seperate and it's backing ) I think you get the idea. I was told the Deal price is about $8,000 to test each bike. And it has to be done with each shipment. So a small guy like us that does 532 pcs per shipment on the completes, we have to test each shipment. So our cost per unit is going to be much higher than someone who does 6,000 pcs per shipment as they can ammoritize it better.

3. Anything imported, like complete bikes, arriving after Dec. 22nd, must have all certificates. If it arrives without certificates the entire shipment will be destroyed and the company will be charged a hazardous waste fee for the removal. So not only do they destroy $100,000 worth of product, but they will charge you for it.

And here is the kicker, anything in a retail store that has not been sold to the end user, even if it is from a production run before the new laws will have to have certifications done for the entire batch , or there is a $500,000 fine and they will seize and destroy the current inventory.

This applies to all products, whether it is made in the USA, Taiwan, Japan, etc.... anything that is a 24" diameter wheel or less is affected as it is deemed a TOY under the current classification.

I have heard that Specialized, TREK and Giant (Since Giant makes some TREK and Special Ed, this comes as no surprise. TREK has the contract for MirraCo) have formed a Lobbying group and have gone to congress, but that it is not looking good.

Again, all the stuff above is my attorney's interpitation, I am also working with a few other attorney's and trying to find out exactly what we need to do.

I did speak with Ryan Birk yesterday, and as this thread started out about, yes, sadly it is very true that Kuwahara has ceased operations in the USA. Ryan was very helpful on information and trying to help, he does not want to see any other of the smaller BMX companies have to close their doors and I value his knowledge and help. Unfortunately as it seems this is going to be a huge tipping point for the BMX industry in what appears to be a most horrible manner.

If I hear anything to the positive I will be sure to post, but it does appear that it is going to get darker before the dawn.

I hope everyone has a great day!

Bill
I have been speaking to too many Attorney's and Industry Legal types and don't know what to make all of this yet, but there definately needs to be some kind of help for the smaller companies who have no voice.

Many of these small BMX Companies do not even know about this stuff yet.

And Colin, I hope the Obama thing was a joke as it is him that may sign the deal for the death blow from what I am told.

I did hear some good news on it today and that is that the Bicycle MFG's are so far down the totem pole that it will be a while before they nail us. Toys R Us, Wal-Mart and the others are much further up the list.

Have a great day!

Bill
At least we are low on the list...maybe this will be the death of cheap Wal-Mart bikes? Of course nice small run 20's will now cost the same as a DH bike.

Hi BMXers, I hope everyones christmas is NOT ruined by all this CPSC tallk. Yes, this is going to cost all of us in the biz and outside more money per bike. I am not advocating all these tests but some are not so bad, but testing spokes, nipples and valve stems ridiculous.

I just got back from china where i was working with our assemblers to get inline with all test. Short story is that is will cost between 3 and 4 thousand dollars for a complete bike to have tested be a third party accredited center. This will defintely cause problems for small run bikes. Even a bigger Co like Diamondback where I work has models that we do smaller runs of bikes. Qty under 300. Justifying these bikes to the heads will be much harder than the already hard sell of BMX racing bikes.


Good luck,

Mike Hammond
Diamondback BMX
So those cool small limited run bikes are now in danger? Everyone must ride the same bike frame...you will all be assimilated. We are BMX. Seriously, my last 3 20's were small batch frames and not production. Kuwahara has pulled out of the US!

Really? This is what our government is doing right now?

If they outlaw BMX...only Outlaws will ride BMX!
 
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Smacks

Likes Bikes and Dirt
That's fucked.

I can see how K-mart bikes can be considered a toy, but a proper, decent 20?

The person/people who OK'd this obviously don't know how big the BMX industry is...
 

chesty

Likes Dirt
jones thats fucked. and just throwing it out there, bmx will be the definition of shit if colony is one of the only companys that can afford to keep doing buisness because they wont be affected as much. but as far as I understand colony would have to stop exporting shit into the states because theyd have to do the testing the american companies are going to have to do.
 

will...

Likes Bikes and Dirt
jones thats fucked. and just throwing it out there, bmx will be the definition of shit if colony is one of the only companys that can afford to keep doing buisness because they wont be affected as much. but as far as I understand colony would have to stop exporting shit into the states because theyd have to do the testing the american companies are going to have to do.
hahaha tempered will have to up their game.

and yep they would have to stop exporting to the us.

the companies that do survive will have to charge a shitload to do so.

even then they wouldnt last.
 
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jurgs

Likes Bikes
there is something good about the lot, the american manufacturers will get more popular again / a chance for new brands as well.
i dont know too much about the bmx market, but there are mtnbike manufacturers doing alright in the states, rocky mtn, intense, cannondale...
i personally try to avoid stuff that comes from china anyway, and thats not because i have something against the chinese, i would love to go there in fact.
i just had to many bad experiences with products from there.
hope that offers another point of view..
 

Bretty.

Likes Bikes and Dirt
You have no idea what you are talking about whatsoever Jurgs. Shut up.

95% of all bicycle componentry is manufactured in China/Taiwan; and it won't help US companies at all. The whole idea behind it is it's going to stuff up everything BMX related.

Mega facepalm.
 

DANCLOSH

Likes Bikes and Dirt
who else votes for a mega (like, world wide) petition, which could then be submitted like, straight to Obama or whoever needs to see it.
 

JakeGorey

Likes Dirt
Do you think this means more Australian brands will start? Or Colony will rage? $8000 for a complete! And i agree with the closh up there, lets start a petition and mail it to Obama!
 

rhysrhysbaby

Eats Squid
I'm putting myself out there and calling bullshit.
Is there any links to actual websites (not forums) that reference this new law?
And if its coming in place in a months time, why haven't we heard anything about this previously? Testing for lead on such a large scale isn't something that can just be setup overnight, there needs to be a transitional period etc.
 

JakeGorey

Likes Dirt
I'm putting myself out there and calling bullshit.
Is there any links to actual websites (not forums) that reference this new law?
And if its coming in place in a months time, why haven't we heard anything about this previously? Testing for lead on such a large scale isn't something that can just be setup overnight, there needs to be a transitional period etc.
Thats a point..
 

Yowie

Likes Dirt
I'm putting myself out there and calling bullshit.
Is there any links to actual websites (not forums) that reference this new law?
And if its coming in place in a months time, why haven't we heard anything about this previously? Testing for lead on such a large scale isn't something that can just be setup overnight, there needs to be a transitional period etc.
Known about this for quite a while now but took a while to realize that bmx would be affected. Its aimed at kids toys and in the good ol US of A any bicycle with a wheel size of 20" or les is considered a kiddy bike.
 

chelsea_fan7

Likes Dirt
This sucks ballsack.
First the dollar takes a massive hit meaning we can't buy cheap stuff from the US for a while and now this meaning we will never be able to get cheap stuff from the US again. Not to mention the fact that with the dollar being shit and US wholesale prices going up due to this stuff is going to be so expensive here as well.
Colony here i come...

EDIT: All the american companies should setup small offices over in taiwan for quality control and do all there exporting to other countries from there so they avoid having to do the tests on items which wont be sold in the US... or just relocate to good ol' Canada.
 
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