For small amounts they pass to a collection agency, larger amounts you go to Court (Civil ofc). They take a big hit from non-payers, even so. That cost is passed on in freight charges.I thought they'd keep the stuff in customs until the tax is paid. This seems weird to me, because if you sand me a bill *after* I already paid the original bill, I might as well go "nice try, sue me".
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37.5% duty charged on Ascilab speakers shipped to US [Resolved]
- Thread starter MarkS
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Doesn't that violate accounting rules? Import taxes ≠ freight charges? Genuinely asking, as the tax implications for companies could be quite different?
Not so fast. The US has among lowest tax rates in the modern world and because of the Big BS Bill service on the national debt now at 15% will probably go to 20%, further reducing government services. The small percentage of rich people don't buy that much and are not hurt if they if they pay 30% more for things. " Consumer expenditures account for approximately two-thirds of US economic activity" much of it is imported, is a lot revenue when you add 30% on top of that, revenue that could be used to pay down the debt without harming the pockets of the the rich through direct taxation. Not sure where this income will be used. Meanwhile are friends around the world are paying the equivalent but getting national healthcare, education, transportation and public health and safety services putting US companies at big competitive disadvantage and leaving our children and grandchildren in a under served and debt ridden future.
Unpaid credit card bills and unpaid bills are entirely different. FedEx cannot report an unpaid bill to a credit bureau.
MattHooper
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You’re saying the same thing. And you had included in your first reply if it turns out to be too expensive, don’t buy it. You had said, essentially: “ If you really wanna purchase something you value, and the new Tarrifs have made it unaffordable for you, then don’t buy it. There, problem solved.”
Well, yeah, obviously.
But it comes off as a rather flippant response to the problems posed by tariffs whether it’s on necessary or discretionary goods that we value.
So I will repeat:
“ this is why we can’t have nice things”
aerial acoustics. but they buy their cabinetry from china
Consumers, if given the opportunity, should not be the ones who take this on the chin. I would have zero qualms about passing this back to the major corporations and not paying the surprise bill. This country was bought and paid for by corporations long before we were alive, and the only way to change things is to hit it where it hurts THEM. Not the consumer.
Luvchampagne
Active Member
This is what is being marketed as the reasons for the tariff. Obviously, there is an ocean width difference between political pontification and reality. As many members have already remarked, this is just another way to shift wealth from the middle class and lower classes to the ultra wealthy.
No, it doesn't violate accounting rules. I guess it's FedEx being discussed but it could apply to any company. If FedEx is spending more covering non payment they could increase shipping across the board to offset or use some other means to make up revenue loss.
FedEx outsources debt collection to law firms, so yes, it can show up on your credit report.
Chester
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Suddenly everyone’s an expert. Lots of digging in to support various positions on this thread, none of it particularly useful or interesting. And yes, I will leave you all to it now before someone suggests I do as much.
I remember when this used to be an audio forum.
I remember when this used to be an audio forum.
Actually bad debt expense is already included in their cost of doing business. If there's an uptick from non payment of tariffs they'll offset.
Yeah prices just went up 37% on audio in a couple of months and that's a lot to talk about. There are other threads.
MattHooper
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To you. But if you’re not interested in the subject of, of course you don’t need to click on this thread.
Yes, once I clicked on this little thread I suddenly couldn’t find any discussions of audio on this forum.
Genuinely scratching my head about this. What do you mean?
There's no direct correlation from an accounting POV but obviously price of freight charges is set by the need to cover all operating costs plus generate a profit.
Debt written off is cost. I may be mistaken as it's some years since I worked there now but think it was somewhere in the region of $200 million a year.
I wouldn't pay it for now... if they chase it up just claim you never received the letter. I assume this was regular post and you didn't sign for that letter?
JSmith
Import duties/tarrifs aren’t new, these are just different. Their shipping agreements account for if duties are due and they indicate the buyer will be liable for any additional charges.
Even eBay has had disclaimers regarding overseas purchases for years.
That is not how it works. Inflation is an increase in OVERALL price level, it is not prices paid for specific items like direct speakers purchases from China which will indeed increase. Imported products are only about 10% of the US economy. Some prices will rise and some will fall due to overall reduced demand but tariffs or VAT taxes or Income taxes all have the same effect on reducing economic activity and demand so are not inflationary. If you disagree give me one historical example of any kind of tax being inflationary.
Maybe this argument would work if there were a tax on every single good and service in the economy but the tariffs only are on tax on about 10% of all goods and services. They will not and can not increase overall price levels which is the definition of inflation. Increasing taxes is never inflationary and in fact it is generally if not always deflationary.
You totally missed my point. The "underground economy" completely avoids income tax collection. A consumption tax, like a tariff or sales tax or VAT tax, will collect taxes on hookers and drug dealers and anyone else generating income from illegal sources because they all buy things so pay some taxes that way.
I was talking about fiscal deficits. The policies put in place are to reduce immigration, reduce income taxes, increase investment incentives, and increase consumption taxes (Tariffs) to help offset some of the other tax cuts. These policies may or may not work out in the long run and in total may or may not be inflationary but assuming some type of taxes are required for a country to operate I have a hard time understanding why shifting some of the revenue from income taxes to consumption taxes is creating such emotional reactions from people.
While I sympathize with the buyer in this case, we need to recognize times have changed and tariffs are changing every week. We as consumers need to know buying is no longer SAFE. The seller will not warn you. Fedex will not warn you. And the USA Tarriff laws are now being used as a weapon to get other countries to cave on negotiations. There is no trade stability - so stay out of the shark infested international shipping business.
Why not?
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