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> Buying luxury goods that can be resold overseas at a significant markup amplifies the fraudster’s “profit.” > where electronics and other luxury items typical
by alister 12y ago
> Buying luxury goods that can be resold overseas at a significant markup amplifies the fraudster’s “profit.”
> where electronics and other luxury items typically sell for a much higher price than in the United States (think new iPads and iPhones, e.g.)
iPhones and iPads are indeed much more expensive in (for example) Brazil than in the U.S.:
http://brazilsense.com/index.php?title=Items_more_expensive_and_less_expensive_in_Brazil http://brazilsense.com/index.php?title=Items_more_expensive_...
because the government of Brazil imposes a 50-100% luxury tax.
So I think there is validity in the article's claim that this difference amplifies the thieves' profits. However, this claim is always getting exaggerated in news reports; it's as if every stolen item gets shipped overseas because there's much more money to be made.
A variation I heard purports to explain what happens to all those stolen bicycles: the crooks ship containers full of stolen bicycles overseas where they can be sold for triple the price. If it were so much profit to be made, a legitimate business could simply buy the merchandise and export to these countries legally.
Also, in some cases, it would be very difficult to exploit the price difference whether the goods were exported legally or illegally. For example, in Singapore cars are massively more expensive than in the U.S. The government auctions off the right to put cars on the road each year. If thieves managed to get cars into Singapore, they'd still have to somehow get past a strict registration system.
- chatmasta 12y ago> If it were so much profit to be made, a legitimate business could simply buy the merchandise and export to these countries legally. Except, as you mention, a legitimate business needs to pay the import taxes, which are the reason the price difference exists in the first place. Carders simply ship these items without properly declaring them.
- akira2501 12y agoWell, that and the fact that they didn't pay for the item in the first place. Any arbitrage beyond that is just cream on top of the price of the item anyways.
- lmm 12y agoYes and no. You can run a profitable criminal enterprise just by doing the other half - buy high-value goods in the US, smuggle them into Europe, sell them there for a profit.
- lucaspiller 12y agoEven in Europe the difference is quite astonishing. A 32GB iPhone 5S in Ireland costs €799. In the US it is $649* or €480. In the case of a Mac, the difference will cover a return flight to the US. *Without taxes, but as a tourist you can claim those back. Even taking into account taxes of both it's still a lot cheaper in the US.
- gambiting 12y agoTechnically you are supposed to pay import tax into EU when the item is brand new, even if you bring it with you. And then the price difference between US and EU is not in your favour.
- keithpeter 12y ago6.5% import duty then 20% VAT on top of Price + Duty for UK last time I investigated importing a cheap 27" monitor. I decided not to
- hyh1048576 12y agoI don't think you can get tax refund when you leave U.S. Those are mostly an European thing.
- gioele 12y ago> A 32GB iPhone 5S in Ireland costs €799 And includes a two-year warranty package that is not included in the US price.