LAW & REGULATION
From Times Staff and Wire Reports
Customs Says Honda Owes Millions in Tariffs: The Customs Service contends that Honda Motor Co. took improper advantage of the U.S.-Canadian free trade agreement to avoid millions of dollars in duties on cars that it shipped to the United States from its Alliston, Ontario, plant, the New York Times reported. Under the agreement, cars assembled in one country and shipped across the border are exempt from tariffs if at least half their content comes from either country. Customs auditors said Honda Civics imported from Alliston had 25% to 30% less Canadian-generated content than the company said they did. Honda denied that it skirted the agreement.
