5 ms·

Of course the circumvention of the "chicken tax" is probably the most well-known example of tariff engineering: > Ford imported all of its first-generation For

Of course the circumvention of the "chicken tax" is probably the most well-known example of tariff engineering: > Ford imported all of its first-generation Ford Transit Connect models as "passenger vehicles" by including rear windows, rear seats, and rear seat belts. The vehicles are exported from Turkey on ships owned by Wallenius Wilhelmsen Logistics (WWL), arrive in Baltimore, and are converted back into light trucks at WWL's Vehicle Services Americas, Inc. facility by replacing rear windows with metal panels and removing the rear seats and seat belts. The removed parts are not shipped back to Turkey for reuse, but shredded and recycled in Ohio. The process exploits the loophole in the customs definition of a light truck; as cargo does not need seats with seat belts or rear windows, presence of those items automatically qualifies the vehicle as a "passenger vehicle" and exempts the vehicle from "light truck" status. The process costs Ford hundreds of dollars per van, but saves thousands in taxes. U.S. Customs and Border Protection estimated that between 2002 and 2018 the practice saved Ford $250 million in tariffs. https://en.wikipedia.org/wiki/Chicken_tax#Circumventing_the_tariff https://en.wikipedia.org/wiki/Chicken_tax#Circumventing_the_...

0cf8612b2e1e 2y ago
There was a Radiolab story fight about dolls vs toys https://radiolab.org/podcast/177199-mutant-rights https://radiolab.org/podcast/177199-mutant-rights Little blurb …who noticed something interesting while looking at a book of tariff classifications. "Dolls," which represent human beings, are taxed at almost twice the rate of "toys," which represent something not human - such as robots, monsters, or demons. As soon as they read that, Sherry and Indie saw dollar signs. it just so happened that one of their clients, Marvel Comics, was importing its action figures as dolls. … So Sherry and Indie went down to the customs office with a bag of XMEN action figures to convince the US government that these mutants are NOT human.
- throwup238 2y ago
  As if Marvel canon wasn't confusing enough already, now customs is involved? Sheesh. Are we going to get a Troy Miller origin story? Bit by an improperly declared radioactive package, he dedicated his life to defending our borders from the Guild of Calamitous Import.
- AStonesThrow 2y ago
  Life Contradicts Art?
  - 0cf8612b2e1e 2y ago
    That was mentioned in the show. X-men is all about wanting to be accepted as equal human beings and now the creators are going to classify them as non human to save a buck.
radpanda 2y ago
I'd also note that Ford's attempt to dodge the tariff here wasn't successful. The US DOJ sued and Ford coughed up $365 million to settle the lawsuit: https://www.freep.com/story/money/cars/ford/2024/03/11/ford-settles-feds-transit-connect-import-claims/72934504007/ https://www.freep.com/story/money/cars/ford/2024/03/11/ford-...
- SOLAR_FIELDS 2y ago
  A rare example of actual consequences for not following the spirit of the law, but only the letter of it
- extraduder_ire 2y ago
  Would it have turned out differently if they sold the vehicles as-is and included a "truck conversion kit" with the parts they used to turn them into light trucks? My thinking is based on the Subaru BRAT and its two bucket seats attached in the pickup bed. I'm assuming it's cheaper/easier to sell light trucks than passenger vehicles in the US. (I'm aware of the difference in emission regulations)
uberman 2y ago
See also "The Subaru Brat" https://www.wired.com/2014/12/subaru-brat/ https://www.wired.com/2014/12/subaru-brat/
ToucanLoucan 2y ago
I'm going to start compiling a list of stories to reply with when people say "environmental activists are too preachy/emotional about their work" and the Ford motor company manufacturing seats, seat belts, and windows, shipping them in vans to get out of a few thousand dollars in taxes per vehicle, and then shredding those things without them seeing a single ass in their entire existence after removing them from the vehicles for "recycling" is a great first item. This legit made me ill and the people responsible for it, the people who permitted it, and the executives who oversaw it should all be in prison.
- wkat4242 2y ago
  Yes me too. It's the first thing I thought of. The "and recycled" part is clearly an afterthought/greenwashing of this horrible practice. It's important to realise too that even when fully recycling a product) and it's very doubtful to be the case here) its definitely not zero impact on the environment. These seats could have been sold as spares, conversion kits, even put into other new cars. I think this behaviour should be criminalised and I'm not taking about the tax evasion.
  - jordanb 2y ago
    It's also an indictment of our legal and regulatory system that allows this interpretation to go forward (no doubt on the advice of very expensive lawyers and lobbyists hired by Ford). People may disagree on if the truck tariff is good policy nor not. But allowing Ford to go through with this weird kabuki dance pageant of waste when it's blatantly clear that their intent is to import a truck is absurd and corrupt.
    - alwa 2y ago
      As a sibling comment points out, the American legal and regulatory system in fact did not allow this interpretation. It came down rather heavily on Ford for trying to pull this: https://www.freep.com/story/money/cars/ford/2024/03/11/ford-settles-feds-transit-connect-import-claims/72934504007/ https://www.freep.com/story/money/cars/ford/2024/03/11/ford-...
Suppafly 2y ago
It's also why converse shoes have a little fuzzy later of material on the bottom, they import them as slippers instead of shoes.
- somat 2y ago
  I that what that is. It confused me, I thought it was some strange misguided variant of the felt sole wading boot. when I first saw it. https://thewadingkit.com/felt-sole-wading-boots/ https://thewadingkit.com/felt-sole-wading-boots/

0cf8612b2e1e 2y ago

There was a Radiolab story fight about dolls vs toys https://radiolab.org/podcast/177199-mutant-rights https://radiolab.org/podcast/177199-mutant-rights Little blurb …who noticed something interesting while looking at a book of tariff classifications. "Dolls," which represent human beings, are taxed at almost twice the rate of "toys," which represent something not human - such as robots, monsters, or demons. As soon as they read that, Sherry and Indie saw dollar signs. it just so happened that one of their clients, Marvel Comics, was importing its action figures as dolls. … So Sherry and Indie went down to the customs office with a bag of XMEN action figures to convince the US government that these mutants are NOT human.

throwup238 2y ago
As if Marvel canon wasn't confusing enough already, now customs is involved? Sheesh. Are we going to get a Troy Miller origin story? Bit by an improperly declared radioactive package, he dedicated his life to defending our borders from the Guild of Calamitous Import.
AStonesThrow 2y ago
Life Contradicts Art?
- 0cf8612b2e1e 2y ago
  That was mentioned in the show. X-men is all about wanting to be accepted as equal human beings and now the creators are going to classify them as non human to save a buck.

radpanda 2y ago

I'd also note that Ford's attempt to dodge the tariff here wasn't successful. The US DOJ sued and Ford coughed up $365 million to settle the lawsuit: https://www.freep.com/story/money/cars/ford/2024/03/11/ford-settles-feds-transit-connect-import-claims/72934504007/ https://www.freep.com/story/money/cars/ford/2024/03/11/ford-...

SOLAR_FIELDS 2y ago
A rare example of actual consequences for not following the spirit of the law, but only the letter of it
extraduder_ire 2y ago
Would it have turned out differently if they sold the vehicles as-is and included a "truck conversion kit" with the parts they used to turn them into light trucks? My thinking is based on the Subaru BRAT and its two bucket seats attached in the pickup bed. I'm assuming it's cheaper/easier to sell light trucks than passenger vehicles in the US. (I'm aware of the difference in emission regulations)

uberman 2y ago

See also "The Subaru Brat" https://www.wired.com/2014/12/subaru-brat/ https://www.wired.com/2014/12/subaru-brat/

ToucanLoucan 2y ago

I'm going to start compiling a list of stories to reply with when people say "environmental activists are too preachy/emotional about their work" and the Ford motor company manufacturing seats, seat belts, and windows, shipping them in vans to get out of a few thousand dollars in taxes per vehicle, and then shredding those things without them seeing a single ass in their entire existence after removing them from the vehicles for "recycling" is a great first item. This legit made me ill and the people responsible for it, the people who permitted it, and the executives who oversaw it should all be in prison.

wkat4242 2y ago
Yes me too. It's the first thing I thought of. The "and recycled" part is clearly an afterthought/greenwashing of this horrible practice. It's important to realise too that even when fully recycling a product) and it's very doubtful to be the case here) its definitely not zero impact on the environment. These seats could have been sold as spares, conversion kits, even put into other new cars. I think this behaviour should be criminalised and I'm not taking about the tax evasion.
- jordanb 2y ago
  It's also an indictment of our legal and regulatory system that allows this interpretation to go forward (no doubt on the advice of very expensive lawyers and lobbyists hired by Ford). People may disagree on if the truck tariff is good policy nor not. But allowing Ford to go through with this weird kabuki dance pageant of waste when it's blatantly clear that their intent is to import a truck is absurd and corrupt.
  - alwa 2y ago
    As a sibling comment points out, the American legal and regulatory system in fact did not allow this interpretation. It came down rather heavily on Ford for trying to pull this: https://www.freep.com/story/money/cars/ford/2024/03/11/ford-settles-feds-transit-connect-import-claims/72934504007/ https://www.freep.com/story/money/cars/ford/2024/03/11/ford-...

Suppafly 2y ago

It's also why converse shoes have a little fuzzy later of material on the bottom, they import them as slippers instead of shoes.

somat 2y ago
I that what that is. It confused me, I thought it was some strange misguided variant of the felt sole wading boot. when I first saw it. https://thewadingkit.com/felt-sole-wading-boots/ https://thewadingkit.com/felt-sole-wading-boots/