Americas Chicken Tax - US Vehicles

[YellowLab]

Saw an article on a website called MotorBiscuit with a rather interesting section:

"Being a commercial vehicle built outside of the U.S. means the 25% chicken tax applies. And that pushes up the price to $73,100 for the base model. Stepping up to either the Trialmaster or Fieldmaster ups the price to $80,790, which includes shipping". I know that because of the weight it would be considered a commercial vehicle and thought this would have applied only to the Quartermaster as the US Auto industry has been fighting trucks made outside the US for years. When we did the prototype drive the Ineos Factory Rep said the vehicle would be considered a commercial vehicle - so will be interesting

Ineos Grenadier SUV Many Want in the U.S. Is Finally Here: Would You Buy One?

Fans in the U.S. of the old Land Rover Defenders have been anxiously waiting for the similar Ineos Grenadier to land here. Now it has arrived, but will very many really want to buy one?

www.motorbiscuit.com

Has anyone seen reference to whether the tax would hit the regular 4 door SUV?

From Wikipedia on the 'chicken tax:'

Chicken tax - Wikipedia

en.wikipedia.org

Would certainly suck to pay 9.25% CA sales tax and also have a 25% US tariff on this too.

 

[Krabby]

I believe it does and is already cooked into the price.

It will also hit the Quartermaster which is why I find the fact they’re bringing it here so astounding. The mid-size truck segment is rife with options and the price range starts in the low 30s!

 

[Xrford]

I believe it does and is already cooked into the price.

It will also hit the Quartermaster which is why I find the fact they’re bringing it here so astounding. The mid-size truck segment is rife with options and the price range starts in the low 30s!

I do not believe so otherwise the Canadian price (we do not have chicken tax) would be 25% cheaper after dollar conversion and it is not. I believe 4 doors and no bed, makes it a suv not a truck and the weight of the Grenadier is not much more than suvs like the old land cruiser or G wagon, so I think that article is factually false. Quartermaster is different story, unless they found a loop hole or way to assemble part of the QM in North America, then expect that price to be 25% more than the Grenadier. Hopefully Canada will not be affected by this.

 

[YellowLab]

I do not believe so otherwise the Canadian price (we do not have chicken tax) would be 25% cheaper after dollar conversion and it is not. I believe 4 doors and no bed, makes it a suv not a truck and the weight of the Grenadier is not much more than suvs like the old land cruiser or G wagon, so I think that article is factually false. Quartermaster is different story, unless they found a loop hole or way to assemble part of the QM in North America, then expect that price to be 25% more than the Grenadier. Hopefully Canada will not be affected by this.

I assume the dealers will know for sure and that Ineos has also flushed this one out.

 

[GoneNative]

I believe it does and is already cooked into the price.

It will also hit the Quartermaster which is why I find the fact they’re bringing it here so astounding. The mid-size truck segment is rife with options and the price range starts in the low 30s!

It's a half price G wagon that looks bad ass as a truck. People want it and Americans have money and desire for it.

Comparing this to a Chevy Colorado as a $30k truck because it's a kinda same size truck is like comparing a Miata to a convertible Ferrari because both are two door convertibles. Obnoxious example but it's how I look at it.

 

[stickshifter]

I do not believe so otherwise the Canadian price (we do not have chicken tax) would be 25% cheaper after dollar conversion and it is not. I believe 4 doors and no bed, makes it a suv not a truck and the weight of the Grenadier is not much more than suvs like the old land cruiser or G wagon, so I think that article is factually false. Quartermaster is different story, unless they found a loop hole or way to assemble part of the QM in North America, then expect that price to be 25% more than the Grenadier. Hopefully Canada will not be affected by this.

I'm no expert on the Chicken Tax (a 25% tariff placed on light trucks manufactured outside the United States), and from what little I have read - its a bit confusing. It seems that the tariff applies to trucks, but also to SUVs that are "truck-like" which - for a while - meant 4-wheel drive. There are a huge number of SUVs that are exempt from the 25% tariff, but they seem to be the 2-wheel drive versions (and these were subject to a 2% tariff). For example, the 2-wheel drive version of the FJ Cruiser was exempt from the 25% tariff, but the 4x4 version was not. But later, amid wide-spread confusion, the number of doors became relevant, with 2-door variants being deemed trucks or cargo vehicles (subject to the 25% tariff), while 4-door variants were classified as SUVs, or passenger vehicles (subject to just a 2% tariff).

This site was sort of helpful: https://www.energy.gov/eere/vehicles/fact-726-may-7-2012-suvs-are-they-cars-or-trucks

 

[255/85]

I do not believe so otherwise the Canadian price (we do not have chicken tax) would be 25% cheaper after dollar conversion and it is not. I believe 4 doors and no bed, makes it a suv not a truck and the weight of the Grenadier is not much more than suvs like the old land cruiser or G wagon, so I think that article is factually false. Quartermaster is different story, unless they found a loop hole or way to assemble part of the QM in North America, then expect that price to be 25% more than the Grenadier. Hopefully Canada will not be affected by this.

Being an SUV I think it's also the reason we can't get the solid panels instead of rear windows or the steel cargo barriers or even the two-seat version. Those turn the Grenadier into a panel van.

 

[GrumpyBastard]

Should not apply, as the tax is aimed at cargo vehicles. That’s where trucks get thrown in. SUV’s don’t fit the definition. That’s when we see Mercedes SUV’s handled differently than Sprinter (cargo) vans. Ford got in trouble for the transit van because of this tax. They were importing them as “passenger vans” with 15 seats. Then, stripping the seats, sending them back to the factory to be reused on another transit import, and selling the vans as cargo vans here. Planet Money from NPR has a pretty good podcast on the chicken tax for those interested.

 

[flynnsk]

I'm no expert on the Chicken Tax (a 25% tariff placed on light trucks manufactured outside the United States), and from what little I have read - its a bit confusing. It seems that the tariff applies to trucks, but also to SUVs that are "truck-like" which - for a while - meant 4-wheel drive. There are a huge number of SUVs that are exempt from the 25% tariff, but they seem to be the 2-wheel drive versions (and these were subject to a 2% tariff). For example, the 2-wheel drive version of the FJ Cruiser was exempt from the 25% tariff, but the 4x4 version was not. But later, amid wide-spread confusion, the number of doors became relevant, with 2-door variants being deemed trucks or cargo vehicles (subject to the 25% tariff), while 4-door variants were classified as SUVs, or passenger vehicles (subject to just a 2% tariff).

This site was sort of helpful: https://www.energy.gov/eere/vehicles/fact-726-may-7-2012-suvs-are-they-cars-or-trucks

The tarriff orignally aimed primarily at VW/Renault (german/france) in retaliation to taxes on potato(starch), eggs/chicken and was later expanded 'light trucks' over 1000 lbs. I believe these days thats up to 8,000. The 25% came about from the estimated loss of sales over a year.

If you look up the VIN for say a Jeep/Bronco etc, most often this report back as a "Multi-Purpose Vehicle", but plug in the VIN for say a Jeep Gladiator , the NHTB lists as a "Truck". For years Ford (and others) got around this using some creative methods (and later deemed incorrect). Ford would import the Vans with seats, seatbelts etc.. so qualified as a Passenger VEehicile (4% tax) then would strip out the seats, etc, making it a van (ie 'Truck'). MB, took a different approach by imported fully assembled vehicles and disassemblin and re-assembling in North America.

 

[parb]

My favorite story is the mb sprinter. It was built in Germany to completion, taken apart prior to shipping to the US and then reassembled in South Carolina to avoid the tax. Just fantastic.

Nowadays they ship parts and do regular assembly for the sprinter but that is how they used to import them.

 

[rovie]

My favorite story is the mb sprinter. It was built in Germany to completion, taken apart prior to shipping to the US and then reassembled in South Carolina to avoid the tax. Just fantastic.

Nowadays they ship parts and do regular assembly for the sprinter but that is how they used to import them.

Hi @parb You're mentioning a topic that interests me too, and someone asked the same question in another thread this afternoon.
We've also been thinking about shipping our Sprinter, which we're getting next year, to the US.
However, I still have time and therefore haven't done any research into possible shipments. If anyone can recommend anything, please feel free.

 

[Krabby]

Hi @parb You're mentioning a topic that interests me too, and someone asked the same question in another thread this afternoon.
We've also been thinking about shipping our Sprinter, which we're getting next year, to the US.
However, I still have time and therefore haven't done any research into possible shipments. If anyone can recommend anything, please feel free.

If getting your hands on a Sprinter to use here, @anand is a great resource and the Ineos dealer in Utah has a Sprinter business that might be able to help.

 

[parb]

If you're moving then it falls under the personal goods exemption.
I imported my car and a motorcycle to California from EU and it was straight forward. There is a bunch of paperwork needed, you're better off getting an importer handling the process for you. I did it myself the first time and I'll never ever do that again.

 

[rovie]

If getting your hands on a Sprinter to use here, @anand is a great resource and the Ineos dealer in Utah has a Sprinter business that might be able to help.

Thanks Krabby for the hint. I will contact @anand in due course.