Import duty of 25% on cars and parts. Please read and respond.

m5bb

m5bb

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This was sent to me by Hyman Ltd. Importers of fine automobiles.

It has been brought to our attention by Marshall Miller of Miller & Company P.C. that on May 23, 2018, the Department of Commerce published a Notice of Request for Public Comment regarding Section 232, investigation into the importation of automobiles and their effect on National Security. Details of which can be found HERE.


Simply put, President Trump is considering action by Proclamation to apply an import duty of 25% on ALL automobiles (this includes cars, SUVs, vans and light trucks), AND parts, regardless of age or origin. This would mean a 25% duty on ANY car – whether it be brand new or 100 years old. As automobile enthusiasts and professionals in the industry, we strongly urge you to vehemently oppose this unfair, dubious tax.


America currently applies a 2.5% duty on imported cars, which is waived on those of American origin. Under Trump’s proposal, we face a tenfold increase will surely cause retaliation from the European Union in the same manner the recent steel tariffs has proven.


Clearly, the importation of classic and collectible vehicles has absolutely no impact on our National Security, and these proposed tariffs would only serve to harm the countless individuals and independent businesses who buy, sell, restore and transport cars. The collector car hobby is a multi-billion dollar-per-year business, and we must work together to fight this ludicrous proposal. Washington bureaucrats have no understanding of the impact such a political stunt would cause, therefore it is our responsibility to educate them.


The purpose of this letter is to ask you all to join us in appealing to officials to remove any and all language related to “Used Automobiles and Parts”, and separate any content that could be perceived as pertaining to the collector car hobby from this proposed 25% tariff.


The process for commenting is simple:


Go to https://www.regulations.gov/docket?D=DOC-2018-0002 and click the COMMENT NOW button on the right of the page. It takes no more than a few minutes to support the separation of all language related to “used vehicles and parts” from the proposed tariff. The deadline for submitting comments is June 22, 2018.


In addition, we urge you to contact your Senators and Representatives to warn them of the adverse effects these proposed tariffs will have not only our beloved hobby, but more importantly the risk they pose to the thousands of passionate and hard-working Americans who make their living in the business of collector vehicles.


We send our sincerest thanks to Attorney Marshall Miller of Miller & Company P.C. for bringing this critical matter to our attention. Miller & Company are highly respected experts in all matters of international trade, and they can be contacted at www.millerco.com. We thank you for your support and encourage you to act swiftly and share this letter on social media and among your friends in the hobby.
 
Arde

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Hmmm, wouldn't this increase the value of the two European classics I already own?
 
Gransin

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Welcome to my reality...
I sincerely hope that you’ll be able to get around that ”used automobiles and parts”, but how big is that chance if Trump feels that way.
 
Nicad

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I can buy US Beer cheaper in Canada than many Canadian beers. All our beers are over taxed. It is the Dairy that has a huge duty on it to protect the Quebec dairy lobby that runs the country. (I believe the duty is 290%) All of Canada pays higher egg , milk and cheese prices because of the supply management system (Central Committee)
Come July I will be able to send you guys some Pot though. I'll be able get it tax free on the Reserve. We are pretty vulnerable in Ontario if the Auto sector gets squeezed by President Trump.
 
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Ohmess

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I plan to submit this tomorrow; subject to any suggestions for improvement from folks here:

June 20, 2018


Mr. Wilbur L. Ross,

Secretary of Commerce

U.S. Department of Commerce

1401 Constitution Avenue NW

Washington, DC 20230


Re: Antique Motor Vehicles and Parts


Dear Mr. Ross:


On May 23, 2018, the U.S Department of Commerce (“Commerce”) initiated an investigation under section 232 of the Trade Expansion Act of 1962, as amended, into the national security implications of vehicle imports. This investigation includes the effect of automobiles, SUVs, vans, light trucks, and parts relating to these types of goods. Media reports indicate that consideration is being given to a 25% tariff on vehicle imports into the U.S. depending on the outcome of this investigation. Subsequently, Commerce published a request for public comments on this investigation.[1]


Antique Motor Vehicles Do Not Compete With Modern Motor Vehicles


Antique vehicles are acquired to enable participation in car club activities, shows, exhibits, tours, vintage racing, parades and similar events. They are not acquired for basic transportation needs or other utilitarian purposes. In economic terms, antique motor vehicles are not substitutes for modern motor vehicles.


Accordingly, the importation of antique motor vehicles does not implicate domestic technological development, production facility utilization, domestic equipment use and/or human resources employed to manufacture and assemble modern motor vehicles for the obvious reason that antique motor vehicles were manufactured long ago and therefore make no use of existing facilities, equipment, technology and human resources. Thus, the importation of antique motor vehicles has no effect whatsoever on the domestic production of modern motor vehicles.


Moreover, the importation of parts for antique vehicles manufactured outside the U.S. does not affect the economic welfare of domestic manufacturers of motor vehicle parts because domestic manufacturers rarely make competing products. Given the small and uncertain market for antique vehicle parts, manufacturers not originally associated with the manufacture of an antique motor vehicle rarely undertake the engineering and productive capacity investment necessary to bring antique vehicle parts to market. In addition, a U.S. manufacturer seeking to market parts for antique vehicles originally manufactured outside the U.S. need to consider the risk that disputes may arise if its activities are viewed as infringing on the intellectual property rights of either the original vehicle manufacturer or the original parts supplier. Furthermore, most antique vehicle owners seek to retain the character of their vehicles, and therefore seek to acquire original equipment manufacturer parts from either the original manufacturer or directly from the original supplier. For all of these reasons, domestic manufacturers rarely compete in the market for antique motor vehicles originally manufactured outside the U.S. Thus, the importation of antique vehicle parts is unlikely to have more than a negligible effect of the domestic production of motor vehicle parts.


Trade in Antique Motor Vehicles and Parts Does not Harm U.S. National Security


Given these factors, and applying the criterion set forth in Commerce’s Request for Comments, it is safe to say that the importation of antique motor vehicles and related parts does not create negative national security implication for the U.S. Specifically, the importation of antique motor vehicles and their associated parts does not:


· Cause increases in unemployment in the U.S.,

· Decrease the revenues of government,

· Lead to a loss of U.S. investment,

· Diminish specialized skills of U.S. workers and/or

· Reduce U.S. economic production.


Antique Motor Vehicles Imports Should Be Exempt


As noted, consideration is being given to tariff increases from 2.5% to 25% on vehicles and from 4.5% to 25% on parts. With respect to imported antique motor vehicles and parts, these increases would fall primarily on the thousands of individual automotive hobbyists and enthusiasts in the U.S. and the hundreds of independent businesses who buy, sell, maintain, restore and transport antique vehicles.


Because no discernible national security purposes would be served, I am writing on behalf of automobile hobbyists, enthusiasts and related small businesses to request that antique motor vehicles that were originally manufactured outside the U.S., and parts for these types of vehicles, be spared from any such increase.


[1] Notice of Request for Public Comments and Public Hearing on Section 232 National Security Investigation of Imports of Automobiles, Including Cars, SUVs, Vans and Light Trucks, and Automotive Parts. 83 Fed. Reg. 24735 (May 30, 2018). (The Notice)
 
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