Ford pays $365 million to settle alleged import tax dodge – report

Ford Motor Company will pay the US Government $US365 million ($AU552 million) to settle allegations the car giant evaded import tariffs, news outlet Reuters reports.

Between 2009 and 2013, Ford imported hundreds of thousands of Transit Connect vans as people-movers, before removing the rear seats – effectively turning them into commercial vehicles.

In the United States, passenger cars are charged a 2.5 per cent import duty, while commercial vehicles are charged 25 per cent when imported.

While never sold in Australia, the Transit Connect is similar in size to the Volkswagen Caddy – which can be purchased here either as a people-mover or a cargo van.

The US Justice Department claims the Transit Connect was imported with "sham rear seats and other temporary features to make the vans appear to be passenger vehicles," to avoid the 25 per cent import tax.

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"These temporary rear seats were never intended to be, and never were, used to carry passengers," the US Justice Department said in a written statement.

It's alleged Ford "immediately" stripped the vans of their rear seats and were turned into two-seat commercial vans once they cleared customs.

Despite the settlement, Ford denies there was any wrongdoing on its part.

"Ford strongly disagrees with many of the characterizations in the [US Justice Department[ statement and admits no liability in this matter," a Ford spokesperson told Reuters.

"But in the interest of moving on from this complex, decade-old dispute, we have agreed to settle the matter once and for all."