[HN Gopher] US Customs Export Control Says: I'm Screwed
       ___________________________________________________________________
        
       US Customs Export Control Says: I'm Screwed
        
       Author : exar0815
       Score  : 170 points
       Date   : 2021-05-09 11:04 UTC (11 hours ago)
        
 (HTM) web link (www.bigmessowires.com)
 (TXT) w3m dump (www.bigmessowires.com)
        
       | gambitown wrote:
       | Your package is missing Export Control Classification Number
       | (ECCN) [0], duh.
       | 
       | Add a proper ECCN number (such as "EAR99" [1]), according the
       | rules and regulations that apply to the specific product you're
       | shipping.
       | 
       | FYI, export violations can reach up to $1 million per violation,
       | prison for up to 20 years, and administrative penalties.
       | 
       | [0] https://www.shippingsolutions.com/blog/six-basic-steps-
       | for-e...
       | 
       | [1] EAR99 is not a free pass:
       | https://www.shippingsolutions.com/blog/ear99-isnt-a-free-pas...
        
         | dvdkon wrote:
         | This is one of many problems with manufacturing products in the
         | western world. Not only is shipping usually much cheaper ~than~
         | from China (and you have to get the parts from east Asia
         | anyway, most of the time), you also need to deal with a whole
         | host of certifications, export restrictions and generally
         | convoluted bureaucracy. It sometimes seems that the rules are
         | designed to scare off hardware (and other) startups. Basing
         | yourself in China you can manufacture cheaper, sidestep most of
         | these issues and basically chuck uncertified products with
         | shoddy and falsely filled customs labels at customers
         | everywhere. If we actually want electronics manufacturing to
         | come back, we'll have to sort those problems out, small
         | enterprises matter too, not just the ones wealthy enough to
         | have this sorted out by sheer brute force.
        
           | tschwimmer wrote:
           | I'd argue that it isn't really much less regulated on the
           | China export side. There are still a mess of forms and
           | certifications you have to get in order to export. The only
           | difference is that your manufacturer and origin agent usually
           | handle all this stuff for you.
        
         | hervature wrote:
         | This is what the author puts in the comments on their site:
         | 
         | Regarding the ECCN information: it's my understanding that by
         | writing NOEEI 30.37(a) on the label in the box for
         | AES/ITN/Exemption, I'm stating that the items don't require an
         | export license or permit and are valued under $2500, so no
         | commercial invoice or ECCN numbers should be required. In other
         | words, I think what I have included on the form should be OK
         | as-is.
        
           | gambitown wrote:
           | > so no ECCN numbers should be required.
           | 
           | That's wrong. The classification of each exported item has to
           | be declared by the sender. Exemptions should also be declared
           | as an ECCN number (there are various ECCN numbers designed
           | exactly for that).
           | 
           | Without ECCN the sender fails basic Export Compliance checks.
        
       | otterley wrote:
       | Try reaching out to your local Congressperson's office. The
       | squeaky wheel gets the grease.
       | 
       | Edit: also, your local Postmaster.
        
         | CodeWriter23 wrote:
         | Customs != USPS
        
           | otterley wrote:
           | That's where the "congressperson" part comes in.
        
       | arbuge wrote:
       | As one of the comments on the original article points out:
       | 
       | "I notice your 'Signature' is a printed string."
       | 
       | First thing that jumped out at me too when I read that label. I
       | wonder if that's the reason. As far as I know, an actual
       | signature is required there.
        
         | marcinzm wrote:
         | If it's a pre-printed computer generated label then all you
         | need is the printed name.
        
           | cbmuser wrote:
           | I don't know about the US, but that's definitely not allowed
           | in Germany.
           | 
           | It _must_ be signed by hand and I'm pretty confident that the
           | packages were rejected because of that.
           | 
           | If they aren't rejected by USPS, they _will_ be rejected by
           | German customs.
        
             | marcinzm wrote:
             | >If they aren't rejected by USPS, they _will_ be rejected
             | by German customs.
             | 
             | No they won't be, I've sent many packages to Germany using
             | these types of "signatures" with zero issues. This in fact
             | how every pre-printed USPS international label looks like
             | (ie: Etsy, Pirate Ship, etc, etc.). Please don't make
             | absolute statements about things you don't have first hand
             | experience with.
        
       | VLM wrote:
       | Do you need an EIN on the package label?
       | 
       | https://help.cbp.gov/s/article/Article-1145?language=en_US
       | 
       | Interestingly it seems to be the fault of the Census Bureau
       | wanting to provide aggregate economic activity reports rather
       | than border patrol themselves. Nothing more fun than watching two
       | departments try to "cooperate" which is why you're probably not
       | getting much help from Customs.
        
       | purpleidea wrote:
       | Maybe they have a crappy algorithm that sees "EMU" and thinks:
       | https://en.wikipedia.org/wiki/Emu and says "nope, we're not
       | touching animals, you need a special form"?
       | 
       | Either way, the lack of transparency is a huge problem. I thought
       | the United States had all those guns to prevent the State from
       | messing with them? Not sure that seems to have helped here.
       | 
       | Good luck figuring this out! Go to the news media.
        
       | Const-me wrote:
       | The envelope says "plastic carrying case and computer memory
       | module". Photo of the content there:
       | https://www.bigmessowires.com/shop/product/floppy-emu-model-...
       | 
       | I understand how technically that's true. Still, I can see how
       | for a non-technical person a PCB with OLED display and buttons
       | does not look like a memory module. 99.99% of memory modules sold
       | are DIMM or M2 SSD modules. They look very differently from the
       | content of the package.
       | 
       | I would try printing slightly more descriptive labels on these
       | packages. Maybe "Custom aftermarket replacement part for
       | 1979-1983 Macintosh computers"
        
         | maxerickson wrote:
         | Based on the price, it is
         | https://www.bigmessowires.com/shop/product/mac-rom-inator-ii...
        
       | bombcar wrote:
       | I've always included a proforma invoice and an ECCN when sending
       | anything international (except letters).
       | 
       | Perhaps some software change happened internally that no longer
       | defaults to something, or the clerk isn't allowed to deduce the
       | ECCN anymore.
        
       | AnthonBerg wrote:
       | A freight forwarding service like MyUS.com could be of help here.
       | 
       | First, the customer/recipient can use a freight forwarding
       | service to get the stuff shipped to them without the seller
       | having to consider export procedure at all; The customer just has
       | the seller ship to their US freight forwarding address and then
       | the service handles export and reshipment. Freight forwarding
       | services are a natural accumulator of export protocol know-how.
       | It's their specialization.
       | 
       | Secondly, the freight forwarder might be able to advise on best
       | practices. It might be in their interest to raise attention to
       | themselves and accumulate good will, as well as to demonstrate
       | what particular suffering it is that they alleviate.
       | 
       | There's also a free business idea here: Freight forwarding
       | services that handle from-one -to-many shipping. (Most of those
       | that I am familiar are from-many-to-one. From many shippers to my
       | personal account.)
        
         | dawnerd wrote:
         | There's actually quite a few one to many. They're designed
         | mostly for cross border distribution (Canada to US where
         | they'll truck pallets over the border then drop off at usps in
         | bulk).
         | 
         | An example of one: https://www.goessa.com/packaging
        
       | [deleted]
        
       | dominik-2020 wrote:
       | Maybe ask a customs broker?
        
         | ineedasername wrote:
         | Yes, you have to pay them of course if you use their services,
         | but it's also possible you can call one up and get a nice
         | person who will take a minute or two & freely tell you if
         | there's a current issue they're aware of.
        
         | otterley wrote:
         | Also, try reaching out to your local congressperson's office.
        
         | gambiting wrote:
         | This is the correct answer if you run a business. Customs
         | brokers accept responsibility for making sure the packages go
         | through the process successfully and usually have access to
         | customer support channels normal mortals don't have.
        
           | Frost1x wrote:
           | While I agree, this _shouldn 't_ be the case though. The lack
           | of transparency and accountability from a government agency
           | is absurd but then again, these values don't seem to matter
           | anymore.
           | 
           | This person should be able to get an explanation as to why
           | their shipments were declined by customs. It's absurd that
           | they have seemingly unquestionable authority from the general
           | public. I supposed you could take them to court and figure it
           | out, but in most cases, I doubt that's a viable route.
        
             | gambiting wrote:
             | Absolutely 1000% agreed. But this parson specifically made
             | a blog post basically saying "I run a business, I'm
             | screwed, please help". Well, the immediate step would be to
             | pay a broker to make sure those packages leave the US
             | successfully and be doesn't lose customers. Then he can
             | contact his representatives and complain second.
        
               | Scoundreller wrote:
               | Seems like the same issue would affect any rando cleaning
               | out their basement with eBay too.
               | 
               | As a Canadian, I can see why so few Americans want to
               | ship internationally. Which is a negative economically.
        
       | kirillzubovsky wrote:
       | This story is why I love Hacker News.
        
       | snthd wrote:
       | FOIA request?
        
       | fortran77 wrote:
       | What's amazing is there's no recourse.
        
         | marcinzm wrote:
         | That's pretty much par for course with the USPS. One of the
         | selling points of UPS/FedEx is that they have actual proper
         | customer service (at least for large accounts).
        
           | Natsu wrote:
           | That makes me wonder if shipping it via UPS or similar would
           | get them more information?
        
           | 4oh9do wrote:
           | One time a USPS delivery person stole my package.
           | 
           | I know this because the tracking information a USPS clerk
           | looked up for me showed the delivery person marking the
           | package as delivered while being nowhere near the delivery
           | address. In fact, nowhere near an address at all. It was
           | marked as delivered to a street-intersection which houses a
           | vacant field.
           | 
           | The USPS clerk acknowledged this, but said that because there
           | were no other complaints about the delivery person that day,
           | there was nothing they could do.
           | 
           | So it seems like USPS delivery people are literally allowed
           | to steal one item of mail a day.
        
             | rightbyte wrote:
             | Maybe he drove off, remembered he had to register your
             | package, and then stopped to register it as delivered.
             | Later a thief took it from your mailbox?
        
           | pavel_lishin wrote:
           | The issue is not with USPS, but with Customs, a wholly
           | separate government entity.
        
             | marcinzm wrote:
             | The sticker their package got links to the United States
             | Postal Inspectors website which indicates this is USPS
             | inspectors rather than an unrelated government agency.
             | 
             | https://www.uspis.gov/about/what-we-do
        
               | dvdkon wrote:
               | Unless there's some weird hierarchy I'm not aware of,
               | that is USP _I_ S, not USPS.
        
               | marcinzm wrote:
               | https://en.wikipedia.org/wiki/United_States_Postal_Inspec
               | tio...
               | 
               | Parent agency: United States Postal Service
        
         | gavinray wrote:
         | There's no recourse for anything in the US government or
         | justice system.
         | 
         | You just count your losses if you can't figure it out and
         | accept it + move on.
         | 
         | If you throw too big a fit things can often wind up being made
         | worse for you, out of you being an inconvenience.
         | 
         | Compared to a lot of other places to live, I'm not complaining
         | though.
        
       | [deleted]
        
       | thedogeye wrote:
       | Tell this guy to call a customs brokerage like flexport.
       | Entrepreneurs should focus on making things people want and
       | connecting with customers. Turn everything else over to
       | specialists with experience and scale. Most of all customs regs.
        
       | jonpurdy wrote:
       | As an aside, I've got a ADB Wombat from BMoW and it's just
       | awesome. Allows me to easily use my 1993 Apple Adjustable
       | Keyboard with my modern Mac.
       | 
       | Edit: forgot to mention that it also works great for using a USB
       | mouse or keyboard on older Macs.
        
       | [deleted]
        
       | spdustin wrote:
       | What's being shipped? You may not think it's relevant, but if the
       | author omits it from their post, they certainly do.
        
         | rriepe wrote:
         | Quickly glancing at the list, it seems like it was emus and
         | wombats. Highly illegal.
        
         | rssoconnor wrote:
         | The image claims the contents are
         | 
         | * plastic carrying case
         | 
         | * computer memory module
        
         | marcinzm wrote:
         | It's a blog on a site which sells things and the audience is
         | presumably people who buy things on the site rather than
         | hackernews:
         | 
         | https://www.bigmessowires.com/shop/
        
         | occamrazor wrote:
         | The photo shows a shipment containing a "computer memory
         | module".
        
         | [deleted]
        
         | gipp wrote:
         | There's a whole column in the table for it, or you could just
         | check the shop page. It's electronics components for retro
         | computing, basically.
        
         | [deleted]
        
         | newacct583 wrote:
         | The site sells a bunch of retrocomputing emulator products.
         | It's not at all unlikely that some of this looks like hacking
         | or R/E devices and fell afoul of someone's filter (or maybe
         | they sell a keylogger or something unsavory that I just didn't
         | see).
         | 
         | The author, as others are pointing out, should hire a customs
         | broker. This is a licensed professional who knows the process
         | (and often the specific employees at the customs office) and
         | can get answers to questions that can't be answered in stickers
         | on packages.
         | 
         | Or, if there's really a law enforcement angle here, they should
         | call a lawyer.
         | 
         | But HN isn't going to provide much help.
        
         | ChrisMarshallNY wrote:
         | Looks like the big item is an "EMU," which is a floppy emulator
         | (pretty cool).
         | 
         | If the customs inspector has enough domain knowledge to know
         | what a "computer memory module" looks like, and sees one of
         | these:
         | 
         | https://www.bigmessowires.com/shop/product/floppy-emu-model-...
         | 
         | They are likely to say "this person is trying to ship a 'not-
         | memory-module'. Goodbye, Mr. Bond!"
        
       | CodeWriter23 wrote:
       | I don't think the trade names you've used in "Contents" are very
       | descriptive. Something along the lines of "Hobby Electronics"
       | might be more appropriate. I'd also consult a trade expert on
       | this but I think spec'ing the origin as US may be part of the
       | problem because no doubt there are Chinese components on your
       | assemblies. Receiving countries will want to tariff commodities
       | based on the actual origin.
        
       | 4oh9do wrote:
       | At least they receive their packages back.
       | 
       | Compare that to the eBay Global Shipping Program - where if eBay
       | decides that your package violates some opaque rule, neither the
       | sender nor the recipient receives the package. eBay keeps it.
        
         | syoc wrote:
         | Sounds.. strange. Why would ebay keep the package? What would
         | they do with it? Sounds more likely that it's thrown away
         | somewhere.
        
           | 4oh9do wrote:
           | eBay may keep it, destroy it, or do whatever with it, who
           | knows? The key point is that neither seller nor buyer receive
           | it.
        
             | Scoundreller wrote:
             | Had this happen multiple times with nicotine patches, which
             | you _are_ allowed to import into Canada.
             | 
             | Eventually gave up and bought from Amazon.com (was cheaper
             | than .ca).
        
         | formerly_proven wrote:
         | Ugh, eBay. Still hasn't solved ~10 % of buyers blatantly
         | abusing "buyer protection" to get stuff for free.
         | 
         | I don't know the current state of GSP but a few years back it
         | seemed like it was just a scam betting on customs not
         | inspecting ~99 % of packages. GSP claimed to collect duties and
         | import taxes (calculated... how exactly? It's not like an
         | American seller is providing a TARIC code to eBay). Anyway, if
         | the package eventually arrived, you'd notice that there was
         | _zero_ documentation attached apart from the usual sticker
         | saying that customs didn 't randomly pick this package to
         | check. Some people reported that when customs randomly picked
         | their fees-supposedly-paid-through-GSP-package, they had to pay
         | duties and taxes a second time.
        
           | CodeWriter23 wrote:
           | > Ugh, eBay. Still hasn't solved ~10 % of buyers blatantly
           | abusing "buyer protection" to get stuff for free.
           | 
           | Yes they have. They've decided that transferring the expense
           | of protecting their own reputation to their sellers is a
           | winning business practice.
        
             | atatatat wrote:
             | Are they incorrect?
        
               | CodeWriter23 wrote:
               | It's a market reality, they can employ what I consider to
               | be abusive practices like this because enough merchants
               | accept it as a cost of doing business. But I wouldn't
               | call it "incorrect" exactly. If a merchant wants to
               | submit to that, it's a free country (thus far).
        
         | gambiting wrote:
         | Surely.........they reimburse both sides for it? Otherwise
         | that's just theft or at the absolute minimum fraud. Ebay is
         | absolutely free to reject any packages for any reason
         | whatsoever, but they should always return them.
        
           | CodeWriter23 wrote:
           | > but they should always return them
           | 
           | Unless you've agreed to allow eBay to dispose of
           | "unacceptable" parcels at eBay's discretion.
        
           | ars wrote:
           | > Surely.........they reimburse both sides for it?
           | 
           | That sort of sounds like selling something to eBay with extra
           | steps. (Although obviously they should just return it,
           | although they will probably charge return shipping.)
        
           | dawnerd wrote:
           | Yep both parties get reimbursed and sellers get protection
           | from negative feedback resulting from it. Funny enough Pitney
           | Bowes (the ones actually running GSP) just action off these
           | items.
        
           | 4oh9do wrote:
           | Even with reimbursement, it is still theft. It's like if I
           | buy a bike from you, and the delivery truck driver decides to
           | keep the bike for themselves and instead gives me cash and
           | drives off, with me having no say in this.
        
             | gambiting wrote:
             | Well.........kinda, but he's not stealing from you, he's
             | stealing from the delivery company at that point. The
             | delivery company accepts responsibility for the parcel when
             | they collect it, and the contract usually says that either
             | they will deliver the parcel or pay you back X where X is
             | agreed beforehand. So if _either_ of those two things
             | happen they successfully complete their part of the
             | contract. If the driver takes your parcel then it 's up to
             | the delivery company to prosecute, not you.
        
               | wongarsu wrote:
               | You still own the bike, he is stealing from you. You
               | could argue that depending on the circumstances the sell
               | still owns the bike and is the one who has his bike
               | stolen. But at no point does the delivery company own the
               | bike or has the right to sell it
        
               | gambiting wrote:
               | That's not true. The second you accept compensation for
               | the item posted the delivery company takes ownership of
               | the goods and they are free to do with them whatever they
               | see fit, including selling them if they are ever found.
        
               | maxerickson wrote:
               | The terms linked in my sibling comment expressly say
               | otherwise. The title remains with the seller until they
               | either deliver it or decide to dispose of it. Which is
               | hilarious.
               | 
               |  _Transfer of Title. Title to a GSP Item remains with
               | your Seller until such time as the GSP Item is
               | successfully delivered to you or your consignee, at which
               | time title to the GSP Item shall transfer to you or your
               | consignee. At no time do eBay (or its affiliates), Pitney
               | Bowes (or its affiliates), or the third party logistics
               | providers, shipping carriers, customs brokers, freight
               | forwarders, or other subcontractors under contract with
               | Pitney Bowes take title to a GSP Item._
        
               | maxerickson wrote:
               | It really depends on the terms of the contracts involved.
               | Section 11 says that they get the title of the item if
               | they determine it is undeliverable "for whatever reason":
               | 
               | https://pages.ebay.com/shipping/globalshipping/buyer-
               | tnc.htm...
               | 
               | Basically their interest in people continuing to use the
               | service is the only reason they have to perform, the
               | contract says something to the effect of: ha ha we can do
               | nothing if we want.
        
               | jMyles wrote:
               | Certainly he's stealing opportunity from you.
               | 
               | Maybe you really needed the bike on the agreed-upon date.
        
               | gambiting wrote:
               | If you need compensation for loss of opportunity and loss
               | of profit and such, then there are companies which will
               | happily accept liability for such for a sufficient
               | financial incentive. Regular consumer-grade postage
               | services very specifically exclude liability for anything
               | outside of the delivery itself.
        
       | henvic wrote:
       | I'm sorry for your trouble.
       | 
       | Customs are one of the most harmful things for society in our day
       | and age. People in highly developed countries don't notice this
       | much. Still, people from poorer countries with high bureaucracy
       | and intervention in trade by customs cannot access good and
       | cheaper stuff from elsewhere. In the end, a few official
       | importers/exporters with good relations with the state apparatus
       | plus corrupt customs agents benefit at the cost of the
       | impoverished society.
        
         | magicalhippo wrote:
         | Seems like main issue you have is with corruption, not customs.
         | Corruption is bad regardless.
         | 
         | I'm happy our customs is making it harder for people to import
         | all kinds of illegal and/or dangerous goods, like weapons and
         | assorted chemicals pretending to be medicine or drugs, into our
         | country.
        
           | antihero wrote:
           | The only thing I really care about for customs is bombs and
           | human trafficking. I wish they would focus on those things
           | and not just getting in the way of things. Maddening that my
           | tax money is spent on preventing me doing stuff.
        
             | sterlind wrote:
             | you should also be concerned about pests riding along with
             | your fruit, ready to destroy your country's ecosystem.
             | there's boring yet legitimate stuff to scan for.
        
         | Amezarak wrote:
         | Conversely, cheap international goods can wipe out local
         | industry, which can leave people in less developed economies
         | permanently impoverished.
        
           | henvic wrote:
           | This is a lie. If you live in a rich country you consume
           | thousands of different things a day. If you live in a poor
           | country and are really poor, you might consume hundreds.
           | 
           | You consume way more than you produce. Don't fall for this
           | trap. Otherwise, next thing you'll stop doing business with
           | anyone else because it's better to live by your own means.
        
             | gambiting wrote:
             | The....what?
             | 
             | If you make a product X and someone imports product X from
             | a country where labour is 1/10th of the price, you go bust.
             | In a lot of cases countries impose customs duties to
             | protect those businesses, because it's better to have a
             | working industry than cheap goods.
             | 
             | Which part exactly is a lie?
        
               | henvic wrote:
               | Tariffs aren't imposed to protect the population, but
               | specific well-connected players who lobby for such
               | protections to avoid competition.
        
               | gambiting wrote:
               | Well, such a wild accusation requires a source. I can
               | name several examples where tariffs were introduced
               | specifically to protect local industries, mostly farmers,
               | because it would be cheaper to just import foreign apples
               | or carrots than locally grown, but obviously if you allow
               | that to happen you don't have an apple or carrot growing
               | industry next year. You could argue that "rich farm
               | owners lobbied politicians to avoid competition" but you
               | couldn't be any further from the truth. It was demanded
               | by the farmer cooperatives and unions through protests,
               | not some wealthy magnates.
        
               | sokoloff wrote:
               | Is it more important to serve the farmers or the broad
               | population who wants to eat apples and carrots?
        
               | mind-blight wrote:
               | It really depends on the context. Focusing only on the
               | price a costumer pays as your main metric ignores a lot
               | of potentially negative externalities.
               | 
               | One recent example in the US: a lot of small local
               | business were suffering because the Chinese government
               | was heavily subsidizing shipments to the US. So much so
               | that it was cheaper in some places to get a product
               | mailed from China than from across the street. The US
               | started pushing back with tariffs while appealing too the
               | universal postal union postal union. That kept the US
               | businesses from going under while the UPU slowly went
               | through the process of forcing china to follow their
               | rules.
               | 
               | And that's ignoring pollution, all the negatives that
               | happen for the whole population when an industry and/or
               | small businesses collapse within a country, and other
               | negative externalities
        
               | wizzwizz4 wrote:
               | Tariffs are _supposed_ to protect the population.
        
               | dennis_jeeves wrote:
               | >Tariffs aren't imposed to protect the population, but
               | specific well-connected players who lobby for such
               | protections to avoid competition.
               | 
               | henvic, you won't convince the dimwits here, I assure
               | you.
        
               | henvic wrote:
               | No. They aren't supposed to protect the population. This
               | is a lame excuse to implement it without popular revolt.
               | 
               | I was born in Brazil and lived there for most of my life.
               | When I was young, it was, in practical terms, forbidden
               | to import computers and cars to the country to protect
               | the "nascent" national industry. I know very well from a
               | close point of view how tariffs can make everyone's lives
               | miserable.
               | 
               | My father had to import his first computers illegally.
               | Knock-offs IBM PCs bought in Paraguay. Imagine in the
               | early 80s to travel from NY to San Francisco to smuggle
               | computers over the border because a mad man in the state
               | decided you cannot trade goods with someone who lives far
               | away. This is what customs is about.
               | 
               | Protectionism is not only dumb, it's vile! Pure evil!
               | 
               | https://www.youtube.com/watch?v=7njIlZ2xYq0
        
               | magicalhippo wrote:
               | For me, banning the import of legal goods is something
               | else.
               | 
               | Here in Norway you're allowed to import certain cheeses
               | that are also produced locally, but you'll have to pay a
               | 300% or so duty on them. So it's strongly discouraged but
               | not banned. Similar for other food stuff.
               | 
               | And as I mentioned in another comment, there's quotas
               | given for a lot of these food items, that exempts duty
               | for a certain amount of imported goods. This way the
               | government can give strong protection for the amount
               | produced locally, while meeting consumer demand via
               | imports. I feel this is a good compromise.
               | 
               | Textiles is another example which have a 12% duty, a
               | relatively minor protection. And that's about the extent
               | of our protectionism.
        
               | henvic wrote:
               | No. A good compromise is leaving business between A and B
               | if you are C. If you produce the best textile in the
               | world and charge only a penny, but someone would prefer
               | to pay a pound for something awful from overseas, they
               | should have the liberty to do so. It's none of your
               | business how other people trade.
        
               | astrange wrote:
               | Tariffs don't protect local businesses, they charge local
               | customers more in order to punish foreign companies.
               | Besides being a tax on your own population, they have bad
               | effects on other local businesses both because you didn't
               | predict their foreign inputs and because they're always
               | followed by retaliation on your own exports.
        
               | gambiting wrote:
               | >>Tariffs don't protect local businesses, they charge
               | local customers more in order to punish foreign
               | companies.
               | 
               | That statement literally makes no sense whatsoever. No
               | offence. Tariffs are paid by the importing entities, so
               | the idea is to make it more expensive to import foreign
               | goods than locally produced ones.
               | 
               | I am aware that some countries like the US use tariffs
               | punitively but that's like using a hammer to make an
               | omelette.
        
               | Y_Y wrote:
               | If you buy something directly from another country then
               | you are both a local customer and an importing entity. I
               | bought some electronics from Hong Kong recently and had
               | to pay 40% again when it entered the EU. There aren't any
               | local businesses who make these things.
        
               | gambiting wrote:
               | If you were importing from HK to EU I'm not aware of many
               | tariffs that would apply on electronics, I guess you just
               | paid VAT and customs duty, and neither is what I'm
               | talking about here.
        
               | rascul wrote:
               | > Tariffs are paid by the importing entities
               | 
               | Seems those entities would likely raise prices to cover
               | increased tariffs.
        
               | swiftcoder wrote:
               | Thus making the prices of their local competitors more
               | attractive. Ergo, protecting local _producers_.
               | 
               | Notably, not to protect businesses in general - if your
               | business is importing/retailing exclusively foreign
               | goods, then tariffs are explicitly designed to
               | disadvantage you versus someone retailing local products.
        
               | clairity wrote:
               | only if there is positive price elasticity, and that
               | depends on market dynamics (price is a function of both
               | supply and demand).
               | 
               | for instance, if there is a local alternative that's 10%
               | more expensive, you might have that 10% leeway available
               | to you to increase prices, but not if demand drops
               | sharply (negative price elasticity) because substitutes
               | exist or the good isn't as essential as it seemed.
        
               | magicalhippo wrote:
               | Norway has import duties on apples a few months a year.
               | Tell me how that's not to protect the income of our local
               | apple farmers.
               | 
               | We have import duties on beef, with quotas given
               | throughout the year based on how large local production
               | is versus how much local demand is. Tell me how this is
               | not done to protect local meat producers.
               | 
               | I could list many more such examples from the
               | agricultural sector.
        
               | astrange wrote:
               | You are punishing people who want to eat apples and beef
               | for the crime of being able to pay less for it.
               | 
               | This doesn't protect businesses who want to sell apple
               | and beef based products for less money using foreign raw
               | inputs.
               | 
               | And what retaliation are you getting in exchange for
               | raising these tariffs?
        
               | gambiting wrote:
               | >>You are punishing people who want to eat apples and
               | beef for the crime of being able to pay less for it.
               | 
               | That's an incredibly weird way of looking at it.
               | Consumers don't have some god given right to cheap apples
               | and beef. The government has a duty to protect both
               | consumers and producers, because it's so closely
               | interlinked - if you destroy your own industry to import
               | cheap beef and apples what will you do if those foreign
               | companies decide not to sell to you any more? Or if you
               | can't import from them because there was a draught or a
               | disease outbreak?
               | 
               | Like, you think that the only think we should optimize
               | for, ever, is the final price for the customer,
               | everything else is not important, right? After all doing
               | anything else is "punishing" customers for the "crime" of
               | wanting cheap produce?
               | 
               | Like, please take no offence, but that's incredibly short
               | sighted.
        
               | blueblisters wrote:
               | It's pretty well accepted that tariffs lead to overall
               | worse outcomes for all parties involved.
               | 
               | Some reasons:
               | 
               | - Someone mentioned price elasticity below. The demand
               | for the product might actually drop because of higher
               | prices from local producers
               | 
               | - Local producers become less competitive, especially if
               | the imported item was not cheaper because of lower labor
               | cost but because of innovation
               | 
               | - The downstream high-value supply chain becomes less
               | competitive if tariffs are applied to an
               | intermediate/low-value product
               | 
               | There is a narrow space in which tariffs might work and
               | that is when they're temporarily used to shelter local
               | producers from outside competition with the hope that
               | they can quickly build capability and scale of their
               | global peers.
        
               | magicalhippo wrote:
               | > It's pretty well accepted that tariffs lead to overall
               | worse outcomes for all parties involved.
               | 
               | Including the periods you can't import required/essential
               | goods for various reasons and local production no longer
               | exists due to previous cheap imports?
        
             | whatever1 wrote:
             | Protectionism seems to be working great for China though
        
               | astrange wrote:
               | It's not really working that well except that some of it
               | serves their other ends, like being able to enforce laws
               | on local companies better.
               | 
               | What's much more important is they have good industrial
               | policy, export discipline, and that unreasonably good
               | deal with the UPU that lets them send mail to the US for
               | cheaper than we can send it inside the country.
        
               | whatever1 wrote:
               | By not allowing amazon, google etc to do business in
               | their country they enabled the development of huge,
               | profitable corporations like Alibaba, Tencent etc that
               | now employ advanced personnel like software developers,
               | ML engineers etc, invest in university research, and
               | overall have great positive impact in their economy.
               | 
               | That is in direct contrast to what economists have been
               | suggesting to us (aka the decision of China to restrict
               | multinational corps to deploy their high tech would limit
               | their growth)
        
               | astrange wrote:
               | They have Baidu because they have the industrial policy,
               | higher education system and subsidies to produce Baidu.
               | If another country banned Google they would simply not
               | have Google and that would be it.
               | 
               | Note that Yandex and VK exist in Russia without having to
               | ban all competition.
        
               | whatever1 wrote:
               | So it seems blanket tariffs are as bad as blanket free
               | passes to imports.
               | 
               | The solution to me lies somewhere in between. I don't
               | understand why in the US we decided that using our youth
               | to part time flip burgers and serve at restaurants is a
               | better investment to our economy compared to having
               | factories that make widgets, even if they are more
               | expensive than Chinese widgets.
        
               | astrange wrote:
               | There's nothing particularly special about factories that
               | says we have to have them just because it's more romantic
               | than a services economy. And we do have many kinds of
               | manufacturing, as does Europe - we create many of the
               | pieces that are then final assembled in China.
               | 
               | The specific reason is we had a run of bad economics for
               | a few decades where we pretended industrial policy didn't
               | exist, and we didn't read How Asia Works.
        
               | whatever1 wrote:
               | It is not about romanticism. Manufacturing inherently is
               | more resource intensive and has broader indirect impact
               | to the economy. Take 10 restaurants with 100 employees
               | and a plant with 100 employees.
               | 
               | The restaurant just pays salaries to 100 people (with no
               | specialized skills) and rent to the local real estate
               | market (raw material and maintenance costs are very low).
               | 
               | On the other hand a plant would need to have trained
               | manufacturing engineers, safety engineers, economists,
               | quality control, managers, sales, technicians, and they
               | would support a big part of the local economy (IT,
               | welders, machinists, logistics companies etc).
               | 
               | A plant typically also has less personnel turnover,
               | exactly because specialized labor is more scarce. That
               | means that they have the incentive to provide full time
               | jobs with good benefits to significant fraction of their
               | workers.
        
               | throwaway2048 wrote:
               | Yep the idea that protectionism doesn't work and is
               | harmful is in direct contravention to how every single
               | advanced industrial economy developed.
               | 
               | Its a self serving idea pushed by people who benefit
               | massively.
        
             | cortesoft wrote:
             | In aggregate, we produce and consume an equal amount.
        
           | astrange wrote:
           | Being able to buy stuff cheaper is actually good because both
           | supply and demand exist. A better way to grow an economy is
           | to do "export discipline", the opposite of import
           | restriction, where you force your local industries to be
           | international quality so that other countries buy from you.
        
             | Amezarak wrote:
             | That might be great if the good we're talking about is
             | consumer electronics. (At least economically.
             | Environmentally or socially perhaps we'd be better off
             | without consumer electronics.)
             | 
             | It's difficult for me to see how this works for the farmers
             | and textile manufacturers. Underdeveloped economies by
             | definition don't have much advanced industry. If you wipe
             | out local producers of necessities you have virtually
             | nothing left and no base to build on to develop advanced
             | industry.
             | 
             | I'm also not really sure this has turned out well for
             | advanced countries like the US, but it definitely does make
             | _part_ of the country richer.
             | 
             | I'm leery of any argument that claims that any given
             | economic policy is an unmitigated good with no
             | contingencies or tradeoffs.
        
               | sokoloff wrote:
               | If foreign food or textiles are cheaper than your local
               | production in a developing nation, it seems your
               | population is suffering from those inflated prices and
               | the aggregate good of the nation may very well be
               | improved by having more food and clothing available at
               | lower-than-current prices. Anything less is forcing your
               | local population to subsidize the inefficient-but-
               | domestic production of goods.
        
               | blululu wrote:
               | There's an old joke about a statistician who drowned in
               | water that was only one meter deep - On Average. Thinking
               | in terms of aggregate value neglects the possibility that
               | you will create winners and losers in such a scenario and
               | creating a system of transfers to share the aggregate
               | surplus is politically difficult.
        
               | sokoloff wrote:
               | I agree it's a sovereign nation's call on what to do, but
               | it seems like improving the lot of everyone who buys food
               | (10s of millions of people) is something I'd be more
               | inclined to do than to ensure that farmers (10s of
               | hundreds of people) who are demonstrably uncompetitive
               | continue to have a path to profitability anyway.
        
               | Amezarak wrote:
               | There are 2.6 million farmers in the US, or about 1.3% of
               | the employed population. In less developed economies
               | farmers are a much higher percentage of the population.
               | We are talking about helping tens of millions of people
               | who are farming. In Nigeria for example, it's 35% of the
               | population. Only in very tiny countries are there only
               | 'tens of hundreds' of farmers.
               | 
               | Do you really think that wiping out employment for a
               | third of the population would improve the economy? It
               | takes money to make money.
        
               | sokoloff wrote:
               | Do you really think that harming 2 people for every 1 you
               | help is obviously the best course of action? (It's not
               | obviously better to me, though you point out some ways
               | that it might not be as bad as that framing suggests.)
        
               | gmueckl wrote:
               | The problem is that free or cheap subsidized goods sent
               | to developing countries to help them along ruin prices on
               | the local market and remove local suppliers. There are
               | many examples of well-meant, but badly thought out aid
               | making things worse.
        
               | CodeWriter23 wrote:
               | Suffering until global supply chains are disrupted. And
               | when that happens, your country's lack of production
               | independence becomes a vulnerability. Like how things are
               | right now.
        
               | jessedhillon wrote:
               | What good is it to live in a wealthy nation, if being a
               | citizen means you have to operate at cut throat
               | efficiency in order to keep up? Creating slack for the
               | average man to enjoy is also a valuable national economic
               | goal.
        
           | clairity wrote:
           | in a similar vein, i _could_ drown in a bathtub, but it 's
           | not likely. more rationale is needed here around whether that
           | risk is worth considering seriously.
           | 
           | the econ 101 idea that tariffs are always bad (something that
           | invariably comes up in these kinds of discussions) is only
           | true in perfectly spherical, frictionless worlds populated by
           | instantaneously rational actors. tariffs actually can work in
           | the real world (to develop a fledgling industry, for
           | example), but it can't be a one-off holy-grail policy, but
           | rather part of a holistic, coordinated program.
        
       | jupp0r wrote:
       | Try to ship the returned packages with Fedex or UPS.
        
         | ziml77 wrote:
         | How would that help? FedEx and UPS don't have some special
         | privilege to bypass customs.
        
           | CodeWriter23 wrote:
           | There is something to be said for packaging products such
           | that they are not selected for screening. Won't help this guy
           | now, his stuff is flagged. But once we started shipping our
           | international orders in a bubble envelope instead of a small
           | box, we had many fewer returns as a result of unpaid import
           | duty by the recipient.
        
           | ryanlol wrote:
           | They do get special customs handling and can definitely
           | assist you with these issues instead of just sending things
           | back.
        
           | oaiey wrote:
           | But maybe a different customs location/officer.
        
           | Scoundreller wrote:
           | Customs has a complicated relationship with postal vs.
           | courier imports.
           | 
           | Customs hates postal imports/exports because they have to
           | deal with low values, low-reimbursement and end-users that
           | may not be, ahem, diplomatic when either side makes an
           | error/fails to comprehend an incomprehensible set of
           | regulations. And the usual treatment of individual end-users
           | with ambiguous resentment like this case.
           | 
           | If everyone switched all imports/exports to Fedex/UPS/etc and
           | customs only had to deal with brokers, they'd both be much
           | much happier. Customs can just sit in an office receiving
           | digitized info from the couriers and decide what they want to
           | inspect/review instead of sifting by hand.
           | 
           | Mostly, customs just ignores the postal stream and lets
           | things slide through without 100% correct paperwork, but I'm
           | sure Fedex/UPS regularly lobbies against this laissez-faire
           | approach.
        
           | magicalhippo wrote:
           | However at least here in Norway, they do know who to reach at
           | customs to get an answer as to why it was rejected.
           | 
           | It might take a few bounces but typically they get an answer
           | and is able to sort it out.
        
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