DETROIT – Ford Motor Company has agreed to pay the United States $365 million to resolve allegations of misclassifying cargo vans to get a lower duty rate.
According to authorities, Ford allegedly imported Transit Connect cargo vans from Turkey into the United States from 2009 to 2014 with fake seats installed temporarily to make them look like passenger vehicles. The Department of Justice said the temporary rear seats were never intended to be used to carry passengers and by installing them and classifying the vans as vehicles of transport, Ford paid a duty rate of 2.5% instead of the 25% on cargo vehicles.
Recommended Videos
The Justice Department alleges Ford submitted false entry papers to Customs and Border Protection, declaring the vehicles as “Motor cars and other motor vehicles principally designed for the transport of persons.”
The rear seats were removed immediately after clearing customs and the vans were reportedly sold as cargo vehicles.
The $365 million settlement resolves allegations that Ford avoided paying import duties by under-declaring to CBP the value of certain Transit Connect vehicles from April 2009 through August 2013.