H.R.2022 - To provide for the reliquidation of certain entries of golf cart tires. (119th Congress)
Summary
H.R. 2022 aims to reliquidate certain entries of golf cart tires, specifically model K389 Hole-N-One, imported by Monitor Manufacturing Co., Martin Wheel, and American Kenda. These tires were initially classified under subheading 4011.69.00 of the Harmonized Tariff Schedule of the United States, which carries a 'free' duty rate.
The bill addresses situations where duties were paid on these tires despite the 'free' duty rate, and the standard timeframe for reliquidation under Section 514 of the Tariff Act of 1930 has passed. The bill directs U.S. Customs and Border Protection to reliquidate the specified entries within 90 days of the bill's enactment and refund any duties previously paid, along with interest.
The bill was introduced in the House of Representatives by Mr. Yakym and referred to the Committee on Ways and Means.
Expected Effects
If enacted, H.R. 2022 will result in the reliquidation of specific entries of K389 Hole-N-One golf cart tires and the refund of duties paid on those entries to the named importers.
This will provide financial relief to the companies that imported these tires. It will also require U.S. Customs and Border Protection to undertake the administrative task of reliquidation and refund processing.
Potential Benefits
- Provides financial relief to Monitor Manufacturing Co., Martin Wheel, and American Kenda by refunding duties that should not have been paid.
- Corrects a past error in tariff application, ensuring fair trade practices.
- Offers clarity and certainty regarding the tariff classification of K389 Hole-N-One golf cart tires.
- Could potentially free up capital for these companies to invest in other areas, such as job creation or innovation.
- Demonstrates a commitment to rectifying errors and ensuring consistent application of tariff laws.
Most Benefited Areas:
Potential Disadvantages
- The refunds will represent a small outflow of funds from the U.S. Treasury.
- Requires administrative effort from U.S. Customs and Border Protection to process the reliquidations and refunds.
- May set a precedent for other companies to seek similar relief for past tariff discrepancies, potentially increasing administrative burden.
- The bill is very narrowly focused, benefiting only a few specific companies, which may raise questions of fairness.
- Could be seen as a form of special interest legislation, benefiting specific companies rather than the broader public.
Constitutional Alignment
The bill aligns with Congress's power to regulate commerce with foreign nations, as granted by Article I, Section 8, Clause 3 of the U.S. Constitution. It addresses a specific issue related to tariff classification and duty collection, falling under the purview of congressional authority over international trade.
The bill does not appear to infringe upon any individual rights or liberties protected by the Constitution or its amendments. It is a targeted measure designed to correct a specific tariff application error.
However, the narrow scope of the bill, benefiting specific companies, could raise questions about equal protection under the law, although tariff regulations often involve such specific considerations.
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).