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Question About Usa Border Tax On Antiques - Politics Neutral


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#1 Curran

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Posted 03 March 2017 - 02:58 AM

I'll start off by asking we keep this politics neutral, if at all possible. Otherwise, moderators please lock down and/or delete.

 

The USA is currently considering a 'border tax' of +20% [I believe]. I have not been able to find much details at all, and it may end up dead in Congress.

 

Question:      Does anyone know at this point whether or not it will affect Antiques?

     While some of our fellow international enthusiasts already have to deal with this sort of taxation, I think it will stun some of us in the USA.

Initially I thought it was just aimed at Mexico, but what little I can find online seems to include it being against Australia and Asia too.

 

[[ It also might make a bloody mess of sending things to and from shinsa. ]]

    Anyone able to recommend good articles or link to the proposed legislation? I haven't had much to do with Washington, DC since interning for a senator pre internet.


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#2 Katsujinken

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Posted 03 March 2017 - 03:09 AM

With the usual caveat that I'm no expert, you might find this article helpful: https://www.bloomber...n-quicktake-q-a

From what I understand, such a tax/tariff/whatever would be targeted at corporations and not individuals sending or receiving goods. So my *guess* is that should such a measure come to pass some nihonto "transactions" might be affected while others would not. For example, I would not expect private shipments between agents for shinsa to be affected. Also I think that private transactions logically might be exempt whereas goods meant for resale within the US are really the target here.

Then again, we're essentially talking about unique pieces of art, not an item for which there is an equivalent option already inside US borders.

So... who knows.

Sorry, this probably wasn't all that helpful! ¯\_(ツ)_/¯
Michael

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#3 Curran

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Posted 03 March 2017 - 03:58 AM

Hi Michael,

 

Thanks for that. I think I need to start using a better search engine, since that Bloomberg article didn't even pop up in my search.

 

The focus does seem to be corporations, but seems very half baked at present.

Though Bloomberg articles are better written than most, they sometimes benevolently neglect large parts of a story while they focus of their interest.

I appreciate the response.


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#4 Katsujinken

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Posted 03 March 2017 - 04:00 AM

Yeah, half baked is exactly how I'd describe it.
Michael

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#5 DaViebaPutkataMamina

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Posted 03 March 2017 - 05:32 AM

Great .. 

 

Today for the first time they said that my articles can not be received if I don't contact a broker and pay my tax. I guess it's already in progress as I never had to contact and pay anything to anyone and as maybe most of us know, there were no taxes added on any antique over 100 years of age.


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#6 Ken-Hawaii

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Posted 03 March 2017 - 05:53 PM

Interesting, as I just had three pieces come in yesterday from Japan & Australia, & nothing was said about any taxes or fees being due.

 

Ken

 



#7 Stephen

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Posted 03 March 2017 - 06:46 PM

I'll know next week.


                                  Stephen C.

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#8 Curran

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Posted 03 March 2017 - 08:15 PM

This is not actual law- just something gaining momentum in Congress.

 

Republican Paul Ryan is advocating, and Trump's Cabinet member Wilbur Ross seems surprisingly favorably disposed to it.

Just yesterday I thought it unlikely to survive. Now, I don't know.


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#9 Brian

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Posted 03 March 2017 - 08:27 PM

Everything that comes into SA has VAT of 14% added. Nothing exempt. This aside from duties levied at various levels on items. For many of us, having tax added to all imports is nothing unusual at all.


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#10 Darcy

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Posted 06 March 2017 - 05:57 PM

First, it's against WTO rules to levy a particular "tax" at the border vs. a particular country. It's not feasible to do so as a result, as much noise as is being made, there would be huge repercussions. So the political goal of punishing an ally and major trading partner (which makes no sense anyway) isn't achievable.

 

So it is a tax on all imports or a tax on none.

 

That is reason number one why this is dead in the water.

 

Reason number two is that it would be extremely expensive to administer and especially if you were going to single out corporations it would make all kinds of loopholes and legal challenges. It would take years to set up and then it would be fought tooth and nail by corporate lobbyists and all government types would drag their feet and run out the clock. Depending on who you ask, they only have to run the clock out 30 days, 180 days, a year or two but four at tops. That is easy. Especially when it looks like some people may be headed to jail, Washington will be non-commital and see where the wind is blowing before setting any permanent sails. 

 

About VAT:

 

Corporations are exempt from VAT type taxes, otherwise when you're buying and selling your parts and assembling products, if you keep paying tax each time someone touches and resells a combined widget the percentage of the value that is tax increases. Eventually the consumer pays an incredibly inflated rate that is almost all tax. This makes domestic industry not very competitive vs. imports and then you need to have huge duties, and the person who ends up suffering most is the low income consumer. So corps get VAT refunded and pay a net out of what they collect from consumers and what they have paid out on expenses. 

 

A VAT doesn't satisfy the political desire to punish Mexico though at all so that won't happen either.

 

Basically there is a lot of simplistic thinking that a trade deal in which money flows more in one direction and goods in the other is somehow bad. It's like being angry that you can buy your groceries at 20% off. People could just volunteer up that extra 20% if they felt really bad about it but they don't do it. There is benefit that flows both ways here. A lot of people understand this and they will just let the anger dissipate and once this wave of populism is over, they will go back to free trade. The wall will end up in the same situation. 

 

Bureaucrats are really good at waiting.

 

 

 

 


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