Breaking News

Ford turns vans into passenger cars to avoid taxes

AmericaThe car is designed with 2 seats and a cargo compartment, but for customs clearance, the company installs a makeshift rear seat to turn it into a passenger car.

U.S. Customs and Border Protection (CBP) is collecting additional taxes worth $181 million and considering a penalty of up to $1.3 billion for Ford.

Transit Connect template. Image: Ford

CBP ruled in 2013 that Transit Connect (vehicles assembled in Turkey) imported as a passenger wagon and then converted into a cargo container was subject to a 25% tax for freight vehicles, instead of the 2.5% tax rate for passenger vehicles.

The Justice Department said Ford designed, advertised, sold and distributed the vehicle as a two-seat cargo van rather than a mere passenger van. But to avoid a higher tax rate applied to cargo vans than those primarily designed to transport passengers, Transit Connect is imported with cheap, makeshift rear seats that are disassembled immediately after customs clearance. . Authorities also believe that the rear seats of the car have a design and fabric material that is completely different from the front seats.

Ford argued that the rear-passenger seat met all federal safety standards, had seat belts for all seating positions, for the rear seats, and seat belts appropriate for legal passenger vehicles traveling. city.

In the US, the 25% tariff stems from the 1960s trade war over frozen chicken, and the larger tax on freight vehicles is known as the “chicken tax”.

Ford added that it will make every effort to defend its actions, noting that any penalties “will be based on the extent of our liability as determined by the court”.

Sunshine (according to the Reuters)


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