Ford Gets Yelled At By U.S. Government For Chicken Tax Work Around

William Maley

Staff Writer - CheersandGears.com

September 30, 2013

Ford has gotten a slap on the wrist for their Chicken Tax work-around on the Transit Connect. Back in January, the U.S. Customs and Border Protection asked the company to stop the practice of bringing in Transit Connects as passenger vans, and then removing the windows and shredding the back seats to make into a cargo van. This practice allowed Ford to pay a lower 2.5% tariff for a passenger vehicle and not a 25% tariff for cargo vehicles.

"It is clear that the Connect is a commercial vehicle first and foremost," said the ruling. Ford's strategy "serves no manufacturing or commercial purpose" other than to "manipulate the tariff schedule."

Automotive News has learned from a Ford spokesman that the company is currently appealing the decision and is importing the Transit Connect with the higher 25% tariff.

Ford is also lobbying the U.S. Government for a trans-Atlantic treaty which would eliminate the Chicken Tax.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.