In a differentiation endeavor and a true desire to forewarn and educate, I will try to not constantly reiterate and rant and rave about the same things all the conservative writers are ranting about. I am going to be reporting and commenting to you on items before and being thought about by Congress that you will probably not read about elsewhere. In my professional capacity, I have to keep up with current events that may effect my industry. I stumbled upon this wee tidbit last week, from a publication called Broker Power.
The undervaluation of China origin textiles and apparel is thought to be a huge problem, in part because the textile and apparel industry represents 21% of all importers, 5% of the value of all imports, and 42% of all duties collected.
News From China
Thus, Customs and Border protection will be investigating whether or not the value of the products arrival into the country from China are fairly valued. Up until now, I would have been fine with this. Times have changed and I believe that the above move could be used solely for political gain and for gathering more money to the insatiable Federal Beast.
How it works is thus, each import into the Usa has a declared value. The Importer pays duty and taxes on the value of the stock plus the applicable duty rates. It is surely one of the only Constitutionally outlined and defined ways in which the Federal Government is allowed to tax you. It is also important for American firm to compete on level playing fields and not suffer through "unfair" trade practices that artificially make a competitors stock less expensive. Real cases like this would contain foreign government subsidies to industries, prison or slave labor, large clubs using predatory practices to run home industries out of business, but I digress.
The Government has wee leeway in raising duty rates for products because of global trade agreements and that type of thing sets off trade wars and all sorts of international concentration - so in general, they don't like to do it. Instead, they will take the valuation advent to accomplish the same goals.
This is how it works, if Customs determines that a t-shirt being imported is surely worth .00 instead of $.50 then the duty and tax due on the stock is increased greatly. The importer will then of course, contain the growth in cost to you - the buyer of the T-shirt.
The attractiveness of it for the Federal Government is that you will never know.
More Ways to Get Your Money - Valuation of Textiles and Apparel From ChinaRelated : todays world news headlines
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