New US tax on mini truck imports?

**steve_nagoya** · 04-28-2008, 12:45 AM

Hey all,

I've heard from an US importer that there is a new government tax on trucks. It was supposedly started a couple of weeks ago. Anyone know more?

Thanks,
Steve

**ATVtruck.com** · 04-30-2008, 09:23 PM

Import tax is here. Maybe worse. The word is that US Customs is changing the classifaction of mini trucks. This new classifaction will impose a 25% duty on your F.O.B. price. The really scary thing is that this new classifacation is will subject all mini truck shipments to scrutiny from the EPA and DOT. I am hoping of the best but unless someone fights this mess the mini truck businnes will be ending soon. We can pay the tax but the EPA and DOT are not exactly rolling out the welcome mat for kei trucks.

**steve_nagoya** · 04-30-2008, 09:39 PM

Originally Posted by ATVtruck.com

I am hoping of the best but unless someone fights this mess the mini truck businnes will be ending soon.

I think/hope that is a little pessamistic. After all, if the government is making duty money, why would they want to stop a good thing?

**NorthTexasMiniTrucks** · 05-01-2008, 05:26 AM

Originally Posted by Japan_Car_Exports

I think/hope that is a little pessamistic. After all, if the government is making duty money, why would they want to stop a good thing?

We're talking about the government - they don't think that far in advance. they see the opportunity to make tax revenue, not giving any thought to what it might do in the "long term".

**steve_nagoya** · 05-01-2008, 05:50 PM

Hey there,

I was thinking more about this, and I think the government would continue to just continue to tax the imports. But, if people in EPA and DOT would take a serious look at how the trucks could be used on the road in ALL states, wouldn't that make the fuel crunch a little bit better?

Optimistically,
Steve

**greg0187** · 05-01-2008, 06:48 PM

Originally Posted by Japan_Car_Exports

Hey there,

I was thinking more about this, and I think the government would continue to just continue to tax the imports. But, if people in EPA and DOT would take a serious look at how the trucks could be used on the road in ALL states, wouldn't that make the fuel crunch a little bit better?

Optimistically,
Steve

Yes, but they cant open their eyes. Anyone effected by the strike on the west coast today?

-Greg

**volkswagen50** · 05-01-2008, 07:41 PM

Does anyone know anyone who has actually paid 25% import duty yet? The current import duty/tariff schedule doesn't have anything listed as that high of a rate with the exception of goods from Cuba or North Korea. The highest otherwise was 11%. This was in Section 17, chapter 87. This is the current tariff schedule effective 4/16 of this year.

What is the exepmtion that allows them to currently come into the country? I tried to find it but can't. Greg

**fremontminitrucks** · 05-01-2008, 07:53 PM

apparently this classification is only happening at two ports here in the states so far. I have a container being cleaned at port and it appears as though it's going to make it through without the duty, so I'm just keeping my fingers crossed. However, I have one that left port on the 29th that i'm very concerned about, but at this point it appears to be business as usual and I haven't heard anything about it being hit with a duty but that could change with the wind. If this duty happens it could add a minimum of 450.00 per truck

**fremontminitrucks** · 05-01-2008, 08:21 PM

Originally Posted by volkswagen50

Does anyone know anyone who has actually paid 25% import duty yet? The current import duty/tariff schedule doesn't have anything listed as that high of a rate with the exception of goods from Cuba or North Korea. The highest otherwise was 11%. This was in Section 17, chapter 87. This is the current tariff schedule effective 4/16 of this year.

What is the exepmtion that allows them to currently come into the country? I tried to find it but can't. Greg

It looks like it takes affect 60days after the ruling so if anyone was lucky enough to do a transaction that will squeeze in during that time you're lucky!

**Acerguy** · 05-01-2008, 08:26 PM

Jeez...I don't believe this. I mean what is the big deal with these trucks that there are some special interests out there that feel they are such a threat? I mean most of the UTV's come from Japan already don't they? Who's driving this? Is it Polaris, John Deere, Kawasaki, etc???

**volkswagen50** · 05-01-2008, 09:09 PM

Freemont, which two ports? Tariffs are based on where the imported item comes from, and what it is. Not where it lands. We need some more information. Which two ports, who said it, where did they get their information.

When I imported classis Minis, I heard all the same sort of rumors about all sorts of stuff with Minis. I'm not saying anyone is wrong here, but it's all rumors until there is a page to read from the various government entities.
60 days from what ruling? Believe it or not, these sort of things MUST be posted and available for public response prior to being applied. John Deere can't just call his favorite lobbiest, pressure some official, and insto presto: high tariffs. It takes time. Now if all that has been going on, why didn't anyone know about it?
If someone has some concrete information , knows a custom official to call, customs broker that they use (usually knows first) that can answer a few questions, then lets get some answers!
I'm under the impression that previous import duties on these trucks was 2.5%, a ten fold increase seems very out of line with the relative small amount being imported. I'm sure it's not unprecidented, but it just SOUNDS wrong. I'd bet the tariff on Japanese cars that are new isn't as high and they directly compete with the US market.
We need facts and info before we panic. ( I just looked, Jap cars are 2.5%, tractors are 0%, why isn't John Deere screaming about that?)
Greg

**fremontminitrucks** · 05-01-2008, 09:24 PM

I received this info this morning from our clearing house that handles all of our import/export paper work to get things into the country. I didn't ask which two ports, I didn't care as the one I'm going through wasn't one of them. My stuff is currently stuck in Tacoma washington but to date haven't heard anything about being hit with a duty own them. Customs is pretty much its on entity from port to port, no one talks to each other and they seem to be acting totally unilaterally from port to port. Here's a link that gives some more info:
http://www.customs.ustreas.gov/linkh.../36genno46.pdf

e just need to take it one day at a time and see what happens, the lawyers at the brokerage house I use are going over every document they can to see what can be done to avoid this.

**Wolfman** · 05-02-2008, 05:45 PM

Originally Posted by Japan_Car_Exports

Hey there,

I was thinking more about this, and I think the government would continue to just continue to tax the imports. But, if people in EPA and DOT would take a serious look at how the trucks could be used on the road in ALL states, wouldn't that make the fuel crunch a little bit better?

Optimistically,
Steve

You do realize that you are talking about an entity that is capable of screwing up literally everything it ever even THINKS about touching, right?

I'm sitting here in limbo on the future of my own minitruck here in TX with their sudden about face regarding registering them, as I watch gas prices steadily climb upwards here, and I'm quickly coming up on the renewal of my tags.

**MichTrucks** · 05-02-2008, 07:19 PM

Originally Posted by fremontminitrucks

I received this info this morning from our clearing house that handles all of our import/export paper work to get things into the country. I didn't ask which two ports, I didn't care as the one I'm going through wasn't one of them. My stuff is currently stuck in Tacoma washington but to date haven't heard anything about being hit with a duty own them. Customs is pretty much its on entity from port to port, no one talks to each other and they seem to be acting totally unilaterally from port to port. Here's a link that gives some more info:
http://www.customs.ustreas.gov/linkh.../36genno46.pdf

e just need to take it one day at a time and see what happens, the lawyers at the brokerage house I use are going over every document they can to see what can be done to avoid this.

From what I read we are clasified as 8709 and the current duty is FREE as of HTS dated 2008 rev 2. Am I missing something here? As a side note, does everone read the import requirements that say 2005 is the last year vehicle we can be importing? Short of stripping out the engine and trans, and importing the parts, as some other importer is doing!

**Nipponway** · 05-02-2008, 09:27 PM

You are right Steven, in my last shipment that was just released in
Memphis, TN. Upon releasing it, the Import Specialist, Isaac
Mendyuk, issued an Informed Compliance Notice in regards to the mini work
trucks. In that notice, he states that due to Custom Bulletin & Decisions
Vol 40 No 33, from August 9, 2006, the duty for these types of trucks should
be classified in 8704.31 instead of 8709.19. Thus, required 25% duty.

It is my understanding that this was a proposed action but has not yet been
placed into action. Due to this that would mean that rulings HQ
964598 and HQ 965246 would still be in effect, covering the classification
of this type of vehicle.
Here is the link to that ruling that passed on August 9, 2006.
http://rulings.cbp.gov/index.asp?ru=...5653&vw=detail