I know this doesn't apply to us on the 26" bikes, but our little brothers and sisters, (20" and 24") which I also ride could be in trouble from Big Brother. They need the entire bicycle communities help.
http://www.vintagebmx.com/community/index.php?showtopic=27023813
http://www.vintagebmx.com/community/index.php?showtopic=27023915
Here is just one of the posts:
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 independent 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 essence 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. Basically 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 separate 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 amortize 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 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 interpretation, 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!
http://www.vintagebmx.com/community/index.php?showtopic=27023813
http://www.vintagebmx.com/community/index.php?showtopic=27023915
Here is just one of the posts:
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 independent 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 essence 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. Basically 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 separate 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 amortize 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 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 interpretation, 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!
