Taxation and State Taxation -- 2019



Ford Motor Co. v. United States   (Federal Circuit)

Clarity and consistency in tariff determinations for imports

The NAM filed an amicus brief to seek to reverse an appellate decision that will generate uncertainty for tariff determinations for imported products, including imported automobiles. The case arose from Ford Motor Co.’s imports of the Transit Connect van. After importing the vans as passenger vehicles, Ford reconfigured the vans to allow their use as cargo vans. The U.S. Customs and Border protection applied a 25% tariff on the vehicles, concluding that the vans are properly classified as trucks subject to a 25% tariff rather than a passenger vehicle subject to a much lower 2.5% tariff. Ford challenged the tariff determination in the U.S. Court of International Trade and prevailed. On appeal, however, the Federal Circuit reversed, concluding that the ultimate intended use of the vehicles as cargo vans supported the higher tariff rate. Ford sought en banc review by the full Federal Circuit, and the NAM filed an amicus brief in support to identify the uncertainty that manufacturers will face if tariffs are imposed based on possible subsequent reconfigurations of goods rather than their actual condition as imported. On October 16, 2019, the court denied en banc review.


Related Documents:
NAM brief  (August 9, 2019)