Update By NTRA’s Rooney On Threatened US-Canada Tariffs

[Wandering Eyes]

Amid the fluid nature of the threatened 25% blanket tariff on all Canadian goods entering the U.S. set to be enacted on Apr. 2, one confusing aspect has surrounded a possible 30-day “Temporary Entry” permit, beyond which tariffs might apply.

Tom Rooney, president and chief executive officer (CEO) of the National Thoroughbred Racing Association (NTRA), elaborated Friday on his understanding that if a horse resides in the United States for less than a year, then the tariff wouldn't apply, as per the Harmonized Tariff Schedule of the United States.

“We believe that horses from Canada can enter the United States for extended periods without paying duties under certain conditions,” wrote Rooney, who has been working with Canadian officials to rectify the discrepancy.

Horses from Canada can enter the U.S. temporarily without paying tariffs under two main scenarios, wrote Rooney. The first is a one-year temporary entry, tariff-free scenario in which:

 

• Horses may be admitted under bond for exportation within one year from the date of importation;

 

• This period may be extended, upon application, for one or more further periods which, when added to the initial one year, shall not exceed a total of three years;

 

• For stays longer than 30 days, horses will need an official health certificate of physical examination performed within 30 days of travel, endorsed by a Canadian government veterinarian, and a negative equine infectious anemia (EIA) test drawn within 180 days prior to export.

 

The second is a 30-day temporary entry scenario (already in place) in which:

 

• Horses can be imported from Canada for up to 30 days without requiring a USDA veterinary port inspection or formal entry with U.S. Customs;

 

• This is the standard temporary entry period for horses from Canada;

 

• Horses must have an official Veterinary Health Certificate endorsed by a Canadian government veterinarian and a negative equine infectious anemia test.

 

Rooney explained Friday that, under this scenario, it is currently unclear how the bond system works and is calculated, and how the bond is returned to the owner.

Rooney explained that he is working closely with the office of Kentucky Congressman Andy Barr to request a waiver on Canadian horses sent for sale in the U.S.

Rooney also warned that his understanding of the tariff's mechanics could change at any moment “given that live horses are mentioned in the list of potentially affected goods.” That's if the tariffs are enacted at all.

“This could very well change at any moment given whatever the will of the president is,” Rooney said earlier in the week. “If it really is just to get people to the negotiation table to negotiate something, maybe we'll never see this.”

As currently outlined, the blanket tariffs are scheduled to go into effect on Apr. 2. In response to the blanket tariffs, the Canadian government has threatened reciprocal tariffs against approximately $30 billion worth of imported goods into Canada.

While the initial round of retaliatory tariffs did not apply to purebred breeding and racehorses, future ones may well mirror those imposed by the U.S., the Canadian Thoroughbred Horse Society (CTHS) has warned.

On Wednesday, the California Thoroughbred Horse Society (CTHS) issued their own advisory on the impending tariffs.

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