[beerandt]

No- the norm is for things to be imported, then combined or modified and sold as a new product, without paying the import tax based on the new product.

If import tax on a cpu is x, and motherboard is y, should you have to pay computer import tax z if you build and sell PCs? After all, what imported cpus and motherboards aren't destined to be assembled computers?

[fredoralive]

I was more talking about this particular case, where it seems it was judged that Ford didn't make a new product out of imported parts, but importing a finished vehicle as one thing, and selling it as another after minor modification.

It is a more normal way around these sorts of tariffs to import a vehicle as a kit of parts (CKD / "Complete knocked down"), and perform some level of final assembly in the end country. The sort of rules you talk about apply then, you pay the car parts import rate on the kit, not the (presumably higher) rate for a complete car[1].

[1] Or otherwise avoid whatever other protectionist measures mean you can't just import a fully built car.

[beerandt]

If the difference in definition between two categories is minor, then a minor modification is all that should be required.

Either it meets the definition of the lower taxed category or it doesn't, at time of import.

Any other way of interpreting it gets into intent and degrees modification, or worse, applying import taxes after the fact for domestic modifications.

Reverse the scenario: is an imported pc taxed at z need to be taxed at x and y if the only purpose was to get the parts and sell the cpus and graphics cards a la carte? If x and y were cheaper than z, do you think the govt would refund the difference?