Ford Motor Co. v. United States

Ford successfully sued in the Court of International Trade, challenging U.S. Customs and Border Protection’s classification of its model year 2012 Transit Connect 6/7 vehicles under Harmonized Tariff Schedule of the United States (HTSUS) Subheading 8704.31.00, which covers “[m]otor vehicles for the transport of goods,” and bears a duty rate of 25% ad valorem. Ford argued that its subject merchandise is properly classified under HTSUS Subheading 8703.23.00, which bears a lower duty rate of 2.5% ad valorem. The Federal Circuit reversed. The lower court erred by refusing to consider intended use as part of its analysis. Use is relevant in construing “other motor vehicles principally designed for the transport of persons” in HTSUS 8703 because this language suggests that classification is necessarily intertwined with whether an imported vehicle is chiefly intended to be used to transport persons. On balance, the structural design features, auxiliary design features, and inherent use considerations establish that the subject merchandise is not classifiable under HTSUS Heading 8703. View "Ford Motor Co. v. United States" on Justia Law