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How are goods valued when it’s transferred across borders within the same organization? Parts from France to be assembled in Alabama aren’t necessarily “sold” s
by alkonaut 6y ago
How are goods valued when it’s transferred across borders within the same organization? Parts from France to be assembled in Alabama aren’t necessarily “sold” so don’t need a value. How are tariffs calculated then?
- rad_gruchalski 6y agoAirbus Americas, Inc. headquarters is located in Herndon, Virginia. The parts are 100% sold.
- dingaling 6y agoAirbus America should switch to paying a substantial 'licensing fee' to Airbus SaS, in return for which they can use the trademark and also receive compatible parts for $1 each...
- rad_gruchalski 6y agoThose would be most likely different SKUs. The parts have to be still imported and money would have to change hands. If I raise you an invoice and you raise me an invoice, we can’t pay them by simply offsetting them.
- alkonaut 6y agoIs that the case for all assembly taking place abroad? i.e. is that a requirement for being able to do the export/import, that the importer is a US company? Even so, what forces them to charge for it at all? If Airbus says a plane hull is $10 who challenges that?
- rad_gruchalski 6y agoIf the hull costs the US company $10 but $1m to manufacture, who covers the loss? There is a loss of profit so airbus needs governmental bail out. The US has now two reasons to be further upset. Or do I see it wrong?