SHIPPING LOOP HOLE

Posted: Fri Aug 31, 2007 2:02 am

If you are shipping a part to another country, give a description of it and then list the cost as "DEMO".

By doing so it tells the customs agent in the receiving country that the part is being used as a demonstrator piece and will be sent back when the testing/trials are done.

Thus the part will not be staying in the receiving country and is subsequently not subject to all the applicable taxes etc. There is no mechanism in place to track whether or not "DEMO" goods were ever sent back. So once it's in its yours.

This info. comes from a fellow I met at work who ships his parts for work in the same fashion and saves a BUNDLE..

Just remember Cost = "DEMO"

We may not make the rules, but we can lawfully exploit the ones that exist Wink

Posted: Fri Aug 31, 2007 2:44 am

Peacekeeper wrote:

If you are shipping a part to another country, give a description of it and then list the cost as "DEMO".

By doing so it tells the customs agent in the receiving country that the part is being used as a demonstrator piece and will be sent back when the testing/trials are done.

Thus the part will not be staying in the receiving country and is subsequently not subject to all the applicable taxes etc. There is no mechanism in place to track whether or not "DEMO" goods were ever sent back. So once it's in its yours.

This info. comes from a fellow I met at work who ships his parts for work in the same fashion and saves a BUNDLE..

Just remember Cost = "DEMO"

We may not make the rules, but we can lawfully exploit the ones that exist Wink

Thank You for the tip. Very good info. I used it tonight on a very important package to England.

Posted: Fri Aug 31, 2007 5:08 am

What country (or countries) does this work for? What kind of tax $$$ are being saved?

Posted: Fri Aug 31, 2007 7:12 am

Uh, yeah, that's fraud. Definitely not legal. If you know there is no intention of ever getting the part back, especially if you've been paid for the part, then it's a complete lie to write "demo" on the form, and it's probably a felony to do so. At least that's true in the United States, your mileage may vary (but I'd be surprised if it were different anywhere else).

You might get away with it, but it's still illegal.

Posted: Fri Aug 31, 2007 11:02 am

I suppose you tell the buyer that he is simply long term testing the part, and to enjoy it in anyway he sees fit. When the demo part finally fails, he can send it back. Or at least send back the results. Cool

Which country does this work for?

Posted: Fri Aug 31, 2007 12:14 pm

Quote:

You might get away with it, but it's still illegal.

its the same as listing a price alot cheaper than what you sold it for, trying to avoid paying tax on a $500 item.

You do the same at the title/tags place when you buy a car from a private seller. "Sold this car for $200, because the wipers are broken" when in fact you bought it for $2500; paying taxes on that is just stupid.

I doubt the Postal Police would spend time investigating every Demo that gets shipped to determine whether or not it was ever shipped back; and then, what is the time frame in which it must be shipped back?

Agreed its illegal, but its taxation without representation!!!

Posted: Fri Aug 31, 2007 2:42 pm

Just mark it as a gift.
When Canada post gets it they have no choice but to deliver it without duty and taxes.

They have no way of proving it isnt.
Best part is this way they drop it right at your door instead of having to go pick it up at the post office.

Posted: Fri Aug 31, 2007 3:03 pm

when I ship outside the U.S. I just ask who ever I'm shipping to what they want the box to say for customs and the value

Posted: Fri Aug 31, 2007 5:14 pm

Best of my knowledge it works sending anywhere.

As far as being illegal Haddi-man, It is not. The government made the rule not me. There is nothing illegal about using rules and regulations set out by the government. In fact if you did a little research you will be surprised at the laws that exist that would allow you way more freedoms and perks than you would imagine.

But if you are still firmly focused on your opinions alone, than I would suggest taking any item you have to the post office and ask them to send it in the most expensive and fully taxed to the limit method they offer. This would likely allow you to sleep better at night.

I on the other hand I deal with government on a daily basis. So I will say with conviction that they are the biggest liars, cheats, extortionists, murderers etc etc etc. all for their own profit and gain either at home or abroad. I defy you to find a law that was created by a governmment that wasnt broken by that same government at some point in history...Yet I digress.

If you dont need or want the tip, simply hit the "delete" button.

Posted: Fri Aug 31, 2007 5:18 pm

ya, and you know what ISNT illegal but SHOULD be?? jacking up someone's perfect Sansui amp and making them pay out their A$$HOLE for it.

F&^$ing A#$holes. defraud them all you can I say.

Ok now I feel better.

Smile

....nope, no I dont.

F&$king UPS.

Posted: Fri Aug 31, 2007 5:34 pm

I think we both learned from that one.
No more UPS for me...ever.
The post office does a much better job, maybe not as fast, but atleast they don't kick things arround.

That damage must of happened when they slammed it into another package, I wonder what it looks like Shocked

Were you able to get it repaired?

Posted: Fri Aug 31, 2007 5:43 pm

the "gift " thing doesnt always work..have had a few request from customs over the yrs to prove the relationship for the gift...have had some dissalowed automatically..so dont bet on it working all the time..about half the stff i get across the line doesnt ever get dinged either way... Smile

doubt they have time to zing them all...

Posted: Fri Aug 31, 2007 5:47 pm

Peacekeeper wrote:

Best of my knowledge it works sending anywhere.

As far as being illegal Haddi-man, It is not. The government made the rule not me. There is nothing illegal about using rules and regulations set out by the government. In fact if you did a little research you will be surprised at the laws that exist that would allow you way more freedoms and perks than you would imagine.

But if you are still firmly focused on your opinions alone, than I would suggest taking any item you have to the post office and ask them to send it in the most expensive and fully taxed to the limit method they offer. This would likely allow you to sleep better at night.

I on the other hand I deal with government on a daily basis. So I will say with conviction that they are the biggest liars, cheats, extortionists, murderers etc etc etc. all for their own profit and gain either at home or abroad. I defy you to find a law that was created by a governmment that wasnt broken by that same government at some point in history...Yet I digress.

If you dont need or want the tip, simply hit the "delete" button.

Dude, chill. I'm not making any moral judgment here, just refuting the statement that this is a legal loophole. It's not. You are simply exploiting a rule that doesn't really apply, and making the erroneous argument that since the government wrote the rule, it must be legal. But what you are missing is the fact that in order to take advantage of this rule you have to lie on the customs form, which is itself a crime. It is no different from saying that the government allows you to take tax deductions, so if you simply claim deductions you aren't allowed, it's a "legal loophole" to avoid paying taxes. After all, that's a government rule as well. But it's still just as much of a lie. You can go see a lawyer if you don't believe me.

I'm not arguing that the customs tax is right. I think it (and almost every other tax, for that matter) is a ridiculous abuse of power. But that's what the situation is. If you feel like evading the customs tax, that's fine. I don't have a problem with that. But it's not legal in any sense of the word, so just be aware of what you're actually doing.

Posted: Fri Aug 31, 2007 7:06 pm

CowTownBiomed wrote:

I think we both learned from that one.
No more UPS for me...ever.
The post office does a much better job, maybe not as fast, but atleast they don't kick things arround.

That damage must of happened when they slammed it into another package, I wonder what it looks like Shocked

Were you able to get it repaired?

I haven't tried yet. I met a guy on the AudioKarma board ( which is a cool board BTW ) that is going to repair it for me. The problems is, I have very few free weekends... I enjoy riding most of the weekends. After the next four weddings i have to go to in the next few weeks, maybe Ill drop it off.

it sounds good though - thats what matters

Posted: Fri Aug 31, 2007 7:20 pm

eatpasta wrote:

it sounds good though - thats what matters

I still miss it...do I have visitation rites?

Posted: Fri Aug 31, 2007 7:46 pm

of course....

why wouldn't you??

Posted: Fri Aug 31, 2007 8:31 pm

Haddi-Man wrote:

You are simply exploiting a rule that doesn't really apply, and making the erroneous argument that since the government wrote the rule, it must be legal. But what you are missing is the fact that in order to take advantage of this rule you have to lie on the customs form, which is itself a crime. It is no different from saying that the government allows you to take tax deductions, so if you simply claim deductions you aren't allowed, it's a "legal loophole" to avoid paying taxes. After all, that's a government rule as well. But it's still just as much of a lie. You can go see a lawyer if you don't believe me.

+1

Posted: Fri Aug 31, 2007 8:35 pm

I think this "crime" falls into the same catagory as refusing to buy a fishing license and still wetting a line.. Tax Evasion according to my friend's lawyer when he refused to pay his fine for fishing without a license...

One thing we want to avoid is Tax Evasion...

papa

Posted: Fri Aug 31, 2007 9:46 pm

So.... find the law that says we have to pay income tax.

.... I dare you.

Popcorn

Posted: Fri Aug 31, 2007 10:09 pm

26 U.S.C. §1

Posted: Fri Aug 31, 2007 10:14 pm

pshhhhhh, whatever

Wink

Posted: Fri Aug 31, 2007 10:42 pm

1867 - the B.N.A. Act

declares Income tax illegal...still in effect today and if someone had the $$ to fight the goverment they would win. Give it a read.

BUT..since society is so dependant on the illegal monies they collect, we would be in a world of hurt if we stopped paying.

Catch-22 I guess.

Posted: Sat Sep 01, 2007 12:31 am

Different counrty different rules....

Posted: Sat Sep 01, 2007 12:58 am

This discussion reminds me of a bumper sticker I saw the other day. It read:

"Don't steal! The Government doesn't like competition !!

That about sums it up ...

.. Gregg

Posted: Sun Sep 02, 2007 5:07 pm

Had a great nite sleep, all caught up on my outstanding tasks and chores and am stress free......so what was this thread about again?????

Funny how the brain acts and re-acts depending on the day..

Posted: Sun Sep 02, 2007 7:48 pm

I dunno, I think it was about motorcycles maybe. Wink