Home -> Law Blog Directory -> Administrative Law Blogs -> Customs Law

Administrative Law

: Customs Law

Value Adjsutment Case

I like the tenacity of VW in working on its efforts to get value adjustments for defective cars imported into the U.S. There have been several cases on this, including cases by Saab as well. The general theory makes lots of sense. If VW, Saab, or anyone else, contracts to purchase defect free cars and pays a set amount for them, but later finds out that the cars had defects, then the importer overpaid. If the importer overpaid, it should be able to get a refund for the duties it overpaid. That's the upshot of 19 CFR § 158.12. The problem is proving that the defect existed at the time of entry and the amount of the adjustment.

In the most recent case, the Court of International Trade found that VW is entitled to a value adjustment for cars subject to government-mandated recalls. Actually, the CAFC held that in a previous round, but now the CIT is applying the rule. The CIT held that VW is entitled to a value adjustment for the cost associated with a Federal recall for an emissions problem.

Full post as published by Customs Law on April 18, 2009 (boomark / email).