I am trying to export, then obviously import a Toyota 70 series pickup to the US. 1991 model. Original engine all the normal boxes checked. I was speaking to a guy today, and I have seen this myself on the DOT site, that “trucks” incur a 25% tax whereas passenger vehicles are 2.5%. Am I correct that this pickup is considered a passenger vehicle in the context of this law? Less than 6000 pounds and seating for less than 10 people Thanks for any help.
Stupid Question, maybe. 70 Series (1 Viewer)
- Thread starter vzrusticos
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really? So you did this in person? That’s good info. Not what I wanted to hear but good info. I wonder how they would treat a Land Rover, like a 109 that can have a full hardtop or configured like a truck. Same vehicle.
gilmorneau
SILVER Star
The rule is something like: "if the vehicle is primarily designed to carry cargo, it's a truck, and thus you pay 25%", and "if the vehicle is primarily designed to carry people, it's a passenger car and you pay 2.5%". There's pretty much no arguing that a pickup was "primarily designed" to carry anything but cargo--that's what they're for. If you get into that discussion with Customs, you will lose.
That said, I do know of instances where importers have avoided the discussion with Customs altogether (i.e. didn't ask them), and put the HTS code for a passenger car on their paperwork, and didn't get caught. If you hear of someone bringing in a pickup and they say they only paid 2.5%, that's how they did it. I personally wouldn't try it, but it has been done. The truth of the matter is that you are one guy, bringing in one car, and Customs probably wouldn't bother with you. The cases you may have heard about where cars are seized and crushed (yes, they can do that, and with no compensation for you) are usually importing businesses who systemically and repeatedly flaunt the rules to defraud the government, and further, know that they're doing so (i.e. intent).
Disclaimer: None of this should be taken as advice on how to commit a felony. If you get caught, they won't mess around and it's not a slap on the wrist. It all depends on how much risk you're willing to take for a truck. Or you just bite the bullet and pay the 25%.
That said, I do know of instances where importers have avoided the discussion with Customs altogether (i.e. didn't ask them), and put the HTS code for a passenger car on their paperwork, and didn't get caught. If you hear of someone bringing in a pickup and they say they only paid 2.5%, that's how they did it. I personally wouldn't try it, but it has been done. The truth of the matter is that you are one guy, bringing in one car, and Customs probably wouldn't bother with you. The cases you may have heard about where cars are seized and crushed (yes, they can do that, and with no compensation for you) are usually importing businesses who systemically and repeatedly flaunt the rules to defraud the government, and further, know that they're doing so (i.e. intent).
Disclaimer: None of this should be taken as advice on how to commit a felony. If you get caught, they won't mess around and it's not a slap on the wrist. It all depends on how much risk you're willing to take for a truck. Or you just bite the bullet and pay the 25%.
gilmorneau
SILVER Star
Forgot to mention above that I have brought in cars from overseas, so I do have some personal experience with all this. My advice would be to find a Customs Broker (if you're not already working with one). Makes everything a lot easier and it's not very expensive.
HTS code for a passenger car should start with 8703, and you pay 2.5%
HTS code for a cargo-carrying vehicle should start with 8704, and you pay 25%
For example, a passenger van (e.g. Honda Odyssey) would get a 8703 code. A cargo van (e.g. a Sprinter commercial) would get a 8704 code. In some cases, the exact same make and model of van can get one code or the other, depending on how it's equipped (e.g. empty in the back or with seats/belts). A pickup is always going to properly be an 8704 code, regardless of the number of passengers it's configured to carry. SUV's can go either way, depending on configuration, too.
Google "Chicken Tax" if you haven't already, to learn the origins of this inane regulation, then write a letter to your representatives in Congress giving them your opinion of it.
HTS code for a passenger car should start with 8703, and you pay 2.5%
HTS code for a cargo-carrying vehicle should start with 8704, and you pay 25%
For example, a passenger van (e.g. Honda Odyssey) would get a 8703 code. A cargo van (e.g. a Sprinter commercial) would get a 8704 code. In some cases, the exact same make and model of van can get one code or the other, depending on how it's equipped (e.g. empty in the back or with seats/belts). A pickup is always going to properly be an 8704 code, regardless of the number of passengers it's configured to carry. SUV's can go either way, depending on configuration, too.
Google "Chicken Tax" if you haven't already, to learn the origins of this inane regulation, then write a letter to your representatives in Congress giving them your opinion of it.
