BOWIE, Md. (May 4) — Imported casings and the retreaded tires made from them aren´t subject to federal excise taxes, the Internal Revenue Service has told the Tire Industry Association.
The tax agency had contacted TIA in April and the trade group said it became apparent the IRS planned to charge the excise tax on casings importers, TIA said. Inadvertent language from a committee conference on the American Jobs Creation Act of 2004 changed FET calculations from a weight to a load-range basis, giving the IRS an opportunity to levy excise tax on imported casings, said Paul Fiore, TIA director of government and business relations.
When TIA reiterated to the IRS the long-standing policy that retreads are exempt from such tariffs, the agency worked with the association to obtain the clarification, Fiore said.