To provide for the reliquidation of certain entries of golf cart tires.
Summary
S. 2874 aims to reliquidate certain entries of golf cart tires, specifically K389 Hole-N-One tires, imported by Monitor Manufacturing Co., Martin Wheel, and American Kenda. These tires were previously subject to duties, but U.S. Customs and Border Protection (CBP) had issued rulings classifying them as duty-free under the Harmonized Tariff Schedule of the United States (HTSUS) subheading 4011.69.00.
The bill directs CBP to reliquidate entries that occurred outside the standard timeframe for such actions, as specified in section 514 of the Tariff Act of 1930. It mandates that CBP reliquidate the affected entries within 90 days of the bill's enactment and refund any duties previously paid, along with interest.
The bill lists specific entry numbers and dates for affected imports, primarily through the port of Atlanta, but also including ports such as Cleveland, Columbus, Savannah, and others, spanning from 2009 to 2015.
Expected Effects
The primary effect of this bill will be to provide refunds to the named importers (Monitor Manufacturing Co., Martin Wheel, and American Kenda) for duties they previously paid on K389 Hole-N-One golf cart tires. This is due to a later determination by Customs and Border Protection that these tires should have been classified as duty-free.
This reliquidation and refund process bypasses the standard timeframe limitations for such actions, offering a specific remedy for these companies. The change will allow these companies to recoup costs and potentially reinvest in their businesses.
Potential Benefits
- Financial Relief for Importers: The bill provides direct financial benefits to the named importers by refunding previously paid duties, improving their cash flow.
- Correction of Past Errors: It addresses and corrects what Congress views as an error in the initial tariff classification and duty assessment.
- Fairness and Equity: The bill aims to ensure fairness by retroactively applying the correct duty-free classification, aligning with CBP rulings.
- Potential Economic Reinvestment: The refunded duties could be reinvested by the companies, potentially leading to business growth or job creation.
- Clarity in Tariff Application: Reinforces the importance of consistent and accurate application of tariff schedules by CBP.
Most Benefited Areas:
Potential Disadvantages
- Limited Scope: The bill's benefits are narrowly targeted to specific companies and a specific type of product, rather than providing broad tariff relief.
- Potential for Similar Claims: It could encourage other importers to seek similar legislative remedies for past duty payments, potentially overwhelming Congress.
- Precedent for Bypassing Trade Laws: Waiving the standard timeframe for reliquidation could set a precedent for circumventing established trade laws and procedures.
- Administrative Burden: CBP will incur administrative costs associated with reliquidating entries and processing refunds, diverting resources from other activities.
- Lack of Transparency: The process lacks transparency as it is a specific bill for specific companies, rather than a general change in tariff policy.
Constitutional Alignment
The bill appears to align with the constitutional power of Congress to regulate commerce with foreign nations (Article I, Section 8, Clause 3). Congress has the authority to set tariffs and duties, and this bill represents a specific adjustment to those duties for particular goods.
However, the bill's targeted nature raises questions about equal protection and fairness, although it doesn't explicitly violate any constitutional provision. The bill does not appear to infringe on any individual liberties or rights guaranteed by the Constitution or its amendments.
It is within the legislative power of Congress to enact laws related to tariffs and trade, and the bill does not appear to contravene any specific constitutional prohibitions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).