May/June 2025 Issue

Page 36 May/June 2025 EAST COAST EQUESTRIAN Visit us online at www.eastcoastequestrian.net American Horse Council Press Release Tariffs have many in the horse industry wondering how the upcoming racing and compe- tition season will work with the thousands of horses that cross international borders every year to compete. For many years, horses entering and leaving the United States have done so with- out tariffs. Now, with pending regulatory changes and rumors of retaliatory tariffs, we hope to help the industry understand the facts about how tariffs impact the movement of horses. A “horse product” is any- thing “consumable” (i.e., usable) derived from a horse. This includes semen, embryos, and other breeding products, art made from horsehair (such as bracelets or jewelry made from manes and tails), and more. It can also some- times include carriages, sulkies, Tariffs: The Horse Industry’s Journey into the Great Unknown and other types of horse-drawn “transportation.” Despite AHC’s best efforts to inform members and stakehold- ers, it is crucial to acknowledge the rapid, sometimes hourly, changes in tariff information. Tariffs and import fees are based on the value of the horse or item you’re importing, not nec- essarily the most recent purchase price. You must often be able to provide documentation concern- ing the value of the horse at the border. If you buy a horse for $1 from a friend, but the horse was most recently valued at $10,000, you would pay a tariff of $10,000, not $1. Some tariffs require a min- imum valuation for specific items. If your horse is entering or leaving the United States, your requirements will be different depending on whether it’s for temporary purposes (like racing, competition, or breeding) or a permanent relocation. It’s important to remember that when importing and exporting horses, tariffs are a separate issue from necessary health documents. You must always ensure that you have the appropriate permits and health certificates and follow nec- essary quarantine procedures when importing and exporting horses. Tariff Codes and Rules of Origin All tariff types are coded and given an identification number. On April 8, it was announced that horses are classified in the Har- monized Tariff Schedule under a few categories. This includes Live Horses HS 0101 (Live Horses, asses, mules, and hinnies) as the parent designation with detailed categories as: 0101.21.00 (pure- bred breeding), 0101.29.00 (oth- er), 0101.30.00 (asses), 0101.90 (other), 0101.90.30 (imported for immediate slaughter), 0101.90.40 (other, other). The United States Harmonized Tariff Schedule can be found at hts.usitc.gov. Knowing the HS code will often allow you to efficiently search for a country’s trade requirements for required documentation or what duty you potentially pay. Historically horses that fall under “purebred males for breed- ing” and “purebred females for breeding” have had zero tariffs applied while “horses – other (not for slaughter)” have had some country dependent rates. Rules of Origin (ROO) are used to determine if products are eligible for duty-free or reduced duties. ROOs for horses can be different depending on the des- tination country. Some countries say where a horse is born is the country of origin, whereas other countries say where a horse per- manently lives is the country of origin. You must check the ROOs of the country you’re importing to for the correct determination. You’ll have to prove the origin of your horse such as an FEI pass- port or breed registration paper. If a horse is visiting a coun- try for competition while a new tariff is imposed, it will not have to pay a tariff upon return to its country of origin. The only time you may pay a tariff upon returning to your home country is if you are bringing a new horse that did not previously reside in your home country or equine products such as semen or embryos that did not originate in your home country. Importing/Exporting for Temporary Purposes Requirements for the designation of temporary vs. permanent movement of goods vary greatly by country. You must check the requirements of the destination country to ensure that you will be in good standing once you cross the border. Reasons to be considered a temporary import/export include traveling for competition, racing, vacation/recreation, medical/ veterinary care, or temporary breeding purposes. (Continued on page 39)