May/June 2025 Issue

EAST COAST EQUESTRIAN May/June 2025 Page 39 Tariffs: The Horse Industry’s Journey into the Great Unknown Temporary imports to a coun- try typically do not pay tariffs; however, you may be required to pay a deposit that is returned to you once you come home. If you sell the horse during the time of the temporary import, you will be required to pay the full tariff if it is greater than your deposit. Specific to importing a horse temporarily into the United States*, you have two main options to identify your horse as a temporary “good” (*these methods will be similar but not exactly the same for other countries; it’s always best to check with the importing coun- try’s authorities or a shipping agent for exact requirements) Temporary Import Bond Temporary Importation under Bond (TIB) is a temporary importation of goods by paying a deposit (aka bond), not imported for sale, without payment of duty with your agreement to export or destroy the goods within a certain period of time not to exceed three years from the date of importation. For horses, this means that you can temporarily import a horse for any of the previously listed reasons, but you must pay a certain percentage of the tariff up front that you will receive back once you return home. If the horse does not return to its home country within the TIB timeline, your deposit will be kept by customs, and you may potentially owe further fines. Currently, the TIB requirement to enter the United States is often good for up to 1 year from the entry date. US Border Patrol can require deposits ranging from 110% to 200% of the value for the tariff. However, if you cross an in- ternational border multiple times per year, you may need to pay the TIB deposit each time you enter the importing country. Example: If you are im- porting a thoroughbred valued at $100,000 to the United States for racing purposes for 3 months from a country with a 25% tariff rate, you could be required to pay a deposit of up to $50,000 to enter under a TIB. A.T.A Carnets Another option to temporarily import a horse is under an A.T.A. Carnet, also referred to as a ”Mer- chandise Passport,” or “Passport for Goods.” This international customs document allows for the temporary entry of goods on a duty-free and tax-free basis. The ATA Carnet system was estab- lished by the International ATA Conventions and is governed by the World Customs Organization and the International Chamber of Commerce’s World Chambers Federation. The aim is to en- courage world trade and reduce trade barriers created by different national customs regulations. A.T.A. Carnets are accepted by more than 80 countries global- ly, do not require a deposit , and are good for up to 1 year. Horses on A.T.A. Carnets are valued at a minimum of $10,000 and must complete the questionnaire re- garding their plan activities while travelling. A.T.A. Carnets in the United States can only be prepared by recognized vendors. These vendors include Boomerang Carnets, atacarnet.com, and Roanoke, roa- nokegroup.com . A.T.A. Carnets are good for multiple trips across bor- ders within the active time frame. Importing Horses for Permanent Purposes Depending on the destina- tion country, importing horses or horse products (including semen and embryos) may require pay- ment of a tariff. Some countries have Free Trade Agreements that exclude horses, donkeys, mules, and hinnies from tariffs. A Free Trade Agreement is a treaty between two or more countries designed to reduce or eliminate trade barri- ers, like tariffs, quotas, and other restrictions, to facilitate trade and investment between participating nations. If you are permanently importing a horse, defined as more than one year, you need to determine if a tariff must be paid. Your best bet is to identify the HS code for horses in your country and use a tariff tool such as the FTA Tariff Tool to under- stand your requirements. The tariff you pay will be based on the Rules of Origin of the destination country. UPDATE 4/10/2025: President Trump announced that reciprocal tariffs for many countries will be delayed by up to 90 days. However, the base 10% tariff will remain in effect. The AHC is waiting for further details but encourages anyone import- ing a horse (or any other item related to horses) to the United States to confirm tariff rates with a licensed import broker. You can find a list of licensed import brokers at cbp.gov. For ongoing updates consult horsecouncil.org . Like what you see? Subscribe today! (Continued from page 36)