Tuesday, March 12, 2024

Ford Transit Connect vans produced in Turkey prior to 2013 were imported by Ford, knowing they were deliberately breaking the import rules. They got caught, and now will be fined 365 million, likely 10 times, or more, than any profit they ever got from the vans.





The issue, it seems, is that Ford classified the Transit Connect as a passenger van rather than a cargo van, fitting it with a cheap rear seat designed to be easily removed – which resulted in it being charged a far lower import duty.

According to the federal agency, Ford has agreed to pay this hefty fine to “resolve allegations that it violated the Tariff Act of 1930 by misclassifying and understating the value of hundreds of thousands of its Transit Connect vehicles.” The issue stems from the fact that Ford Transit Connect vehicles imported into the U.S. between 2009-2013 were fitted with “sham rear seats and other temporary features to make the vans appear to be passenger vehicles,” according to the DOJ.

At the time, the U.S. levied a 25 percent duty rate on cargo vehicles, but by classifying these Ford Transit Connect models as passenger vans, the automaker only had to pay a duty rate of 2.5 percent. After declaring those models as passenger vehicles and clearing customs, each unit was then “immediately stripped of its rear seats and returned to its original identity as a two-seat cargo van.”

“This settlement, which is one of the largest customs penalty settlements in recent history, demonstrates that U.S. Customs and Border Protection will pursue even the largest companies to ensure that all importers follow the rules"

They probably shipped all the fake seats back to Turkey, and cut down on the number of fake seats they'd need, and need to get rid of eventually

3 comments:

  1. The chicken tax strikes again!
    When will the US get rid of this stupid tariff? It only helps make trucks and work vehicles more expensive than they should.

    ReplyDelete
  2. Mercedes has been doing the same exact thing with their Sprinter vans.

    ReplyDelete
  3. On the good side, finally a company breaking the law is being hit with a real fine, rather than just a slap on the wrist.

    ReplyDelete