9 ms·

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand this one - with a world focused on security and import taxes, how does this work out?

ISL 12y ago
Furthermore, it looks like the traveler takes on all the risk for damage/theft during transport. Even with the risks and paying all applicable duties, there should be some products where this idea can help to cap the maximum-possible regional differential pricing schemes; the invisible hand made visible.
lazyant 12y ago
I'm pretty sure bringing new goods with the intention of selling need to pay taxes in many/most countries, I wouldn't put my name/face as a testimonial on this site.
benologist 12y ago
Many airports only do spot checks on bags and they're specifically looking for their own citizens smuggling locally-expensive luxuries in by the suitcase. This will be a short-lived company because if you have a significant volume of stuff you don't declare you will either be taxed on the spot or arrested. If you have a discrete amount of stuff then you'd need eg, 5 or 6 people to fulfill an order for 10 iphones, and if 1 of them eats a $1000 customs bill the entire order approaches worthless.
- alexchamberlain 12y ago
  It is encouraging illegal activity, though, correct?
  - benologist 12y ago
    Yes. The entire purpose is to save money by not paying taxes on items by illegally not declaring those items when you enter a country. It may break US exporting laws and embargos, or international laws too. It's almost certain the founders and everyone near them is going to end up arrested and probably imprisoned like any other smuggling organization.
    - pbreit 12y ago
      Hyperbolic much? At least a portion of the purpose access to items that might be difficult or impossible to obtain. Further, it's entirely legal to bring home modest quantities of various items for possible resale, in some cases at a profit, others not.
      - Cookingboy 12y ago
        "At least a portion of the purpose access to items that might be difficult or impossible to obtain" I'm sure that argument can be applied to things such as drugs, firearms, dangerous animal, etc, pretty much anything restricted by export/import laws of a country. And for your last point, no, it's not entirely legal without paying a tax in all countries. Please research your own country's custom laws before making a statement like that.
      - mentat 12y ago
        In the US it is not legal to bring home items for resale without declaring them.
      - benologist 12y ago
        Lying on customs forms, for profit, as a member of a smuggling organization, really is a big deal. It doesn't matter that it's not what you would consider conventional "contraband", the socks on your feet are illegal until a customs official has permitted them into their country with or without tax. These guys used ziplines instead of mules to move untaxed iPhones and iPads into Hong Kong, till the police shut them down. http://www.intomobile.com/2011/08/09/chinese-ninjas-use-crossbow-and-zipline-to-smuggle-ipad-2-and-iphone-4-devices-into-hong-kong/ http://www.intomobile.com/2011/08/09/chinese-ninjas-use-cros... Here's some more people specifically dodging import taxes and then being arrested: http://www.cnet.com/news/chinese-children-used-to-smuggle-iphones-over-border-report-says/# http://www.cnet.com/news/chinese-children-used-to-smuggle-ip...! http://www.intomobile.com/2013/08/14/man-caught-smuggling-iphones-into-china-66-units-strapped-body/ http://www.intomobile.com/2013/08/14/man-caught-smuggling-ip... http://www.phonearena.com/news/Bad-ideas-lady-caught-smuggling-iPhones-into-China-inside-beer-bottles_id29382 http://www.phonearena.com/news/Bad-ideas-lady-caught-smuggli... This stuff is really black and white illegal.
  - deleted 12y ago
    [deleted]
- mind_heist 12y ago
  Hmm.. You are right though. Here is an implicit Premise that this works on & and its not being declared verbally. - "The way airports works in these destinations" - Customs officials don't stop and question everybody ; in most cases - if you are dressed well and speak respectfully , they let you go. - I have heard Mumbai and Bangalore Customs officials could be unyielding at times ; they stick to the rule book and levy all taxes if caught . Not the case for other airports in India ; - I m not sure about airports in Bangladesh ; Thailand ; Nepal ; Sri Lanka ; Malaysia and Indonesia - I guess the founders do have a certain insight into how these airports work.
yid 12y ago
> with a world focused on security and import taxes, how does this work out? Pretty much like Airbnb -- do it till someone notices and hope that you're big enough by then to fight back.
soneca 12y ago
In Brazil we have a startup with the exactly same model (www.cabenamala.com.br). First of all, the math used in the example only makes sense if the individual bringing the laptop doesn't pay the taxes forit. At least in Brazil, this is illegal. Even if you are bringing a laptop for personal use, you must pay some high taxes (~50%). Cabe na mala says in its pitch that all travelers pay the according taxes. But the difference between USA and Brazil prices are so big that even with the taxes, it makes sense. The cost comes down from mainly two factors: distribution and price strategy from the manufactors. For distribution, a traveler in need of cash might be very cheap to carry a laptop back home. And as price strategy, Sony, Apple and others often position their products as a more "premium" product in Brazil than in USA. So in Brazil you are paying an extra for the brand, for the privilege, for the luxury of having an iPhone or a PS4. EDIT: For clarifying, i used "we" in the sense of our startup community, as a brazilian or seomthing like that. I am in no way related to this startup, I don't even know the founders. Just listened a pitch from them.
mind_heist 12y ago
- Well,I have a partial understanding of this. Its typical for people travelling back to South East Asian countries to buy stuff that are super expensive there ( like mentioned in the original explanation , MacBooks are expensive ; Xbox , Playstations , Premium Watches , Booze (due to local taxes) ; mostly electronics and high end fashion stuff. - With respect to import taxes : You wont be stopped by the customs unless you are carrying a crazy amount of electronics ; Like if you carry a couple of laptops - and justify it as one for personal and one for work ; they let you go. With respect to this service , I guess its upto you to be cautious & decide how much to carry. - And there are a lot of Duty free airports; And the purchase made at Duty free airports are mostly overlooked at the destination airport.
- fnom 12y ago
  you dont know the german BGS ... if you dont have a receipt for anything electronic that doesnt look like its 5 years old you are basically fucked. additional to the tax you have to pay you get a hefty fee because its treated as tax evasion. you can do a lot of stuff ... but not tax evasion.
  - mind_heist 12y ago
    Hmm .. This is expected though! The customs in developed countries are far more stringent . But I m not sure if this is targetted at European customers at all . Is the price difference between USA and Europe big enough for any one to try this service ? But thats not the case in developing countries. Products priced at an affordable cost in USA , could be insanely expensive in developing countries.
    - fnom 12y ago
      MBP Retina 15", top of the line $2,499.00 in the us, 2,499.00€ ($3,327.94) in germany . its exactly the savings range that they are targeting
      - mind_heist 12y ago
fnom 12y ago
Backpack is basically a network for tax evasion and smuggling stuff. sounds ... fishy.
- mgkimsal 12y ago
  Airbnb is also a network for (hotel/business) tax evasion too.
  - fnom 12y ago
    well at least in germany you are supposed to declare this income. but that is the same with any form of rent that you gain based on your property. so it doesnt matter if i rent out a property that i own for the whole year via a classified ad in the newspaper or for 1 week via airbnb.
    - mgkimsal 12y ago
      declaring income is one thing, but hotels in most areas collect specific hotel taxes levied by a municipality, and airbnb people aren't collecting and remitting specific hotel taxes.
      - bduerst 12y ago
        The typical AirBnB location is not a commercially-zoned, licensed hotel. Municipalities can update their laws to be more relevant if they feel they are losing tax revenue. Municipality tax relevance is a far cry from international laws that are already in place.
        mgkimsal 12y ago
        "Municipalities can update their laws to be more relevant" Or... people could comply with the current municipal laws and not run commercial enterprises in non-commercially-zoned areas, or even just respect whatever HOA or landlord agreements they are party to.
guybrushT 12y ago
Hah! I had the exact same idea. I created a landing page, posted it on HN and asked: 1. "Is my startup idea legal?" https://news.ycombinator.com/item?id=7167200 https://news.ycombinator.com/item?id=7167200 2. "Is it possible to 'shop without borders'? https://news.ycombinator.com/item?id=7166333 https://news.ycombinator.com/item?id=7166333 Interesting discussion ensued. Read more about my tiny non-existent precursor to Backpack :) I am so intrigued by the fact that they actually went ahead, launched and executed! Hats off. I never progressed beyond just thinking about it.
mind_heist 12y ago
I think a lot of us have been mostly concentrating on Electronics that are easily caught by customs: Here are a few more things that dont fall into the bucket: from http://www.techetron.com/11310/backpack-a-new-startup-in-town/ http://www.techetron.com/11310/backpack-a-new-startup-in-tow... Ever dreamed owning an original Bob Dylan autographed poster which you see auctioned at eBay? Ever gasped why eBay or Amazon products don’t get shipped to your country? Ever wondered how cool it would have been if you could hold first edition Harry Potter books right after they got published? What about having original jersey of your most favorite superstar?
Cookingboy 12y ago
I love how you can start a smuggling organization (from the description, it's just that, this is not even legal gray area bullshit, it's legally black) and call it a "disruptive startup" these days in Silicon Valley AND get funded by YC, I mean, what the actual fuck? No kidding it's a $16 billion market in China alone, that's why people risk on getting EXECUTED to be in the smuggling business. Edit: this is from their site, they call themselves the "only peer-to-peer platform that gives you access to the global market." I actually bursted out laughing when I read it, I should start a money laundering service and call it the "only secure platform that unlocks the full potential of your earnings"
- e15ctr0n 12y ago
  Breaking the law seems very much the modus operandi of Silicon Valley startups these days. Just look at AirBnb, Uber, Lyft, Aereo, 23andMe et al.
  - ryanSrich 12y ago
    And rightfully so. Some laws exist to protect the consumer. Most laws exist to extort money and funnel it to a very specific group of people.
    - Cookingboy 12y ago
      Oh god the arrogance and naivety. Yes, all import tax laws exist with the sole reason of funneling money to specific group of evil people, this is absolutely true regardless of circumstance or the country or product category. Things like local market production and foreign trade balance and a gazillion other factors never play a role. /sarcasm. Even if the law is out of bad intention, the best way to get it changed is to break it right? Be..because JUSTICES TRIUMPHS ALL IN THE END RIGHT? /facepalm
    - edgyswingset 12y ago
      Care to explain which of those "most laws" exist to extort money? It's common to hear this sentiment parroted around, but never does it come with anything backing it up. Until that point, people like me have to assume that sentiments such as that are purely self-serving.
specular 12y ago
This is really interesting -- I had the exact same reaction as the majority of the responses to this comment. Ignoring the tax issue for a moment, I would expect the arbitrage to fluctuate with shipping costs and currency valuations, which is really interesting. But unfortunately, it's really difficult to ignore the tax issue. In particular, China and the United States are sticklers for this, and getting caught smuggling a high priced item (I forget the threshold) won't be viewed as innocent arbitrage by customs. This model would work equally well for drugs and human trafficking, so I would assume that most governments will/should have a problem with this form of tariff evasion. Note: I'm not trying to imply that the founders have anything but the best intentions here. I'm simply pointing out that the very existence of a viable distribution network such as this might be of concern for authorities.
- Cookingboy 12y ago
  Basic rule of thumb: If your startup's profit model is based off completely screwing over the governments around the world, then even in the ever so small chance it's not illegal everywhere yet, it will be very soon.
ivanca 12y ago
Besides the point already made about "avoiding taxes" the other big problem is that this service is perfect for... drug traffickers; so yeah, I don't give it more than 3 months before they pivot. Also, a lot of airports ask you directly if you are carrying something as a favor for someone else; so "backpack" has to tell its users to lie about it, otherwise the item gets confiscated.
ashraful 12y ago
The founders are from Bangladesh, where this is becoming a very common practice, although the practice is rather informal. Usually you'd ask your friends and family to find out if anyone they know will be traveling from US to Bangladesh and then you ask them to buy whatever you want. In the last two years I have also seen facebook groups pop up to expand the network beyond family and friends so its incredibly smart of them to formalize the process and make it more accessible to everyone. While it's technically breaking the law, its no more so than AirBnb and Uber/Lyft. And the demand is just as high if not more.
- Cookingboy 12y ago
  "While it's technically breaking the law, its no more so than AirBnb and Uber/Lyft. And the demand is just as high if not more." That's is absolutely not correct. Please do not compare individual countries' custom law to your local city's taxi law or hotel code. Lying on custom declaration form is an imprisonable offense in most countries. When it's an informal practice it works because it's hard to prove and there is no paper trail. But when it's a real company doing the service all the customers data has a paper trail to it with financial records for each transaction, involving the monetary amount paid by the customer, received by the carrier, earned by the company, etc. It's literally a prosecutor's wet dream. At least in China, these kind of organized smuggling rings do exist, but they exist very much underground with no paper trail, because if caught, the ring leaders (founders of Backpack in this case) would be subject to from prison terms to execution depends on the amount of tax they evaded.
  - ashraful 12y ago
    You are right. I suppose I meant to say its no more unethical (in my opinion) than Airbnb or Uber.
davidPB 12y ago
If backpack's team is crazy, many more are crazy as you check out our non exhaustive list http://blog.piggybee.com/2014/08/delivery-by-travelers.html http://blog.piggybee.com/2014/08/delivery-by-travelers.html
_upvotes_ 12y ago
It seems most of the answers and discussion here revolve around "smuggling" good which are available in both countries. What about goods which are only available in the country of origin? For example, there's a lot of Godzilla and other niche toys only available in Asia which I would love to add to my collection. I don't see why these toys aren't available in the US besides the market size. I don't see why Backpack would be a "smuggling ring" at that point.

ISL 12y ago

Furthermore, it looks like the traveler takes on all the risk for damage/theft during transport. Even with the risks and paying all applicable duties, there should be some products where this idea can help to cap the maximum-possible regional differential pricing schemes; the invisible hand made visible.

lazyant 12y ago

I'm pretty sure bringing new goods with the intention of selling need to pay taxes in many/most countries, I wouldn't put my name/face as a testimonial on this site.

benologist 12y ago

Many airports only do spot checks on bags and they're specifically looking for their own citizens smuggling locally-expensive luxuries in by the suitcase. This will be a short-lived company because if you have a significant volume of stuff you don't declare you will either be taxed on the spot or arrested. If you have a discrete amount of stuff then you'd need eg, 5 or 6 people to fulfill an order for 10 iphones, and if 1 of them eats a $1000 customs bill the entire order approaches worthless.

alexchamberlain 12y ago
It is encouraging illegal activity, though, correct?
- benologist 12y ago
  Yes. The entire purpose is to save money by not paying taxes on items by illegally not declaring those items when you enter a country. It may break US exporting laws and embargos, or international laws too. It's almost certain the founders and everyone near them is going to end up arrested and probably imprisoned like any other smuggling organization.
  - pbreit 12y ago
    Hyperbolic much? At least a portion of the purpose access to items that might be difficult or impossible to obtain. Further, it's entirely legal to bring home modest quantities of various items for possible resale, in some cases at a profit, others not.
    - Cookingboy 12y ago
      "At least a portion of the purpose access to items that might be difficult or impossible to obtain" I'm sure that argument can be applied to things such as drugs, firearms, dangerous animal, etc, pretty much anything restricted by export/import laws of a country. And for your last point, no, it's not entirely legal without paying a tax in all countries. Please research your own country's custom laws before making a statement like that.
    - mentat 12y ago
      In the US it is not legal to bring home items for resale without declaring them.
    - benologist 12y ago
      Lying on customs forms, for profit, as a member of a smuggling organization, really is a big deal. It doesn't matter that it's not what you would consider conventional "contraband", the socks on your feet are illegal until a customs official has permitted them into their country with or without tax. These guys used ziplines instead of mules to move untaxed iPhones and iPads into Hong Kong, till the police shut them down. http://www.intomobile.com/2011/08/09/chinese-ninjas-use-crossbow-and-zipline-to-smuggle-ipad-2-and-iphone-4-devices-into-hong-kong/ http://www.intomobile.com/2011/08/09/chinese-ninjas-use-cros... Here's some more people specifically dodging import taxes and then being arrested: http://www.cnet.com/news/chinese-children-used-to-smuggle-iphones-over-border-report-says/# http://www.cnet.com/news/chinese-children-used-to-smuggle-ip...! http://www.intomobile.com/2013/08/14/man-caught-smuggling-iphones-into-china-66-units-strapped-body/ http://www.intomobile.com/2013/08/14/man-caught-smuggling-ip... http://www.phonearena.com/news/Bad-ideas-lady-caught-smuggling-iPhones-into-China-inside-beer-bottles_id29382 http://www.phonearena.com/news/Bad-ideas-lady-caught-smuggli... This stuff is really black and white illegal.
- deleted 12y ago
  [deleted]
mind_heist 12y ago
Hmm.. You are right though. Here is an implicit Premise that this works on & and its not being declared verbally. - "The way airports works in these destinations" - Customs officials don't stop and question everybody ; in most cases - if you are dressed well and speak respectfully , they let you go. - I have heard Mumbai and Bangalore Customs officials could be unyielding at times ; they stick to the rule book and levy all taxes if caught . Not the case for other airports in India ; - I m not sure about airports in Bangladesh ; Thailand ; Nepal ; Sri Lanka ; Malaysia and Indonesia - I guess the founders do have a certain insight into how these airports work.

yid 12y ago

> with a world focused on security and import taxes, how does this work out? Pretty much like Airbnb -- do it till someone notices and hope that you're big enough by then to fight back.

soneca 12y ago

In Brazil we have a startup with the exactly same model (www.cabenamala.com.br). First of all, the math used in the example only makes sense if the individual bringing the laptop doesn't pay the taxes forit. At least in Brazil, this is illegal. Even if you are bringing a laptop for personal use, you must pay some high taxes (~50%). Cabe na mala says in its pitch that all travelers pay the according taxes. But the difference between USA and Brazil prices are so big that even with the taxes, it makes sense. The cost comes down from mainly two factors: distribution and price strategy from the manufactors. For distribution, a traveler in need of cash might be very cheap to carry a laptop back home. And as price strategy, Sony, Apple and others often position their products as a more "premium" product in Brazil than in USA. So in Brazil you are paying an extra for the brand, for the privilege, for the luxury of having an iPhone or a PS4. EDIT: For clarifying, i used "we" in the sense of our startup community, as a brazilian or seomthing like that. I am in no way related to this startup, I don't even know the founders. Just listened a pitch from them.

mind_heist 12y ago

- Well,I have a partial understanding of this. Its typical for people travelling back to South East Asian countries to buy stuff that are super expensive there ( like mentioned in the original explanation , MacBooks are expensive ; Xbox , Playstations , Premium Watches , Booze (due to local taxes) ; mostly electronics and high end fashion stuff. - With respect to import taxes : You wont be stopped by the customs unless you are carrying a crazy amount of electronics ; Like if you carry a couple of laptops - and justify it as one for personal and one for work ; they let you go. With respect to this service , I guess its upto you to be cautious & decide how much to carry. - And there are a lot of Duty free airports; And the purchase made at Duty free airports are mostly overlooked at the destination airport.

fnom 12y ago
you dont know the german BGS ... if you dont have a receipt for anything electronic that doesnt look like its 5 years old you are basically fucked. additional to the tax you have to pay you get a hefty fee because its treated as tax evasion. you can do a lot of stuff ... but not tax evasion.
- mind_heist 12y ago
  Hmm .. This is expected though! The customs in developed countries are far more stringent . But I m not sure if this is targetted at European customers at all . Is the price difference between USA and Europe big enough for any one to try this service ? But thats not the case in developing countries. Products priced at an affordable cost in USA , could be insanely expensive in developing countries.
  - fnom 12y ago
    MBP Retina 15", top of the line $2,499.00 in the us, 2,499.00€ ($3,327.94) in germany . its exactly the savings range that they are targeting
    - mind_heist 12y ago

fnom 12y ago

Backpack is basically a network for tax evasion and smuggling stuff. sounds ... fishy.

mgkimsal 12y ago
Airbnb is also a network for (hotel/business) tax evasion too.
- fnom 12y ago
  well at least in germany you are supposed to declare this income. but that is the same with any form of rent that you gain based on your property. so it doesnt matter if i rent out a property that i own for the whole year via a classified ad in the newspaper or for 1 week via airbnb.
  - mgkimsal 12y ago
    declaring income is one thing, but hotels in most areas collect specific hotel taxes levied by a municipality, and airbnb people aren't collecting and remitting specific hotel taxes.
    - bduerst 12y ago
      The typical AirBnB location is not a commercially-zoned, licensed hotel. Municipalities can update their laws to be more relevant if they feel they are losing tax revenue. Municipality tax relevance is a far cry from international laws that are already in place.
      - mgkimsal 12y ago
        "Municipalities can update their laws to be more relevant" Or... people could comply with the current municipal laws and not run commercial enterprises in non-commercially-zoned areas, or even just respect whatever HOA or landlord agreements they are party to.

guybrushT 12y ago

Hah! I had the exact same idea. I created a landing page, posted it on HN and asked: 1. "Is my startup idea legal?" https://news.ycombinator.com/item?id=7167200 https://news.ycombinator.com/item?id=7167200 2. "Is it possible to 'shop without borders'? https://news.ycombinator.com/item?id=7166333 https://news.ycombinator.com/item?id=7166333 Interesting discussion ensued. Read more about my tiny non-existent precursor to Backpack :) I am so intrigued by the fact that they actually went ahead, launched and executed! Hats off. I never progressed beyond just thinking about it.

mind_heist 12y ago

I think a lot of us have been mostly concentrating on Electronics that are easily caught by customs: Here are a few more things that dont fall into the bucket: from http://www.techetron.com/11310/backpack-a-new-startup-in-town/ http://www.techetron.com/11310/backpack-a-new-startup-in-tow... Ever dreamed owning an original Bob Dylan autographed poster which you see auctioned at eBay? Ever gasped why eBay or Amazon products don’t get shipped to your country? Ever wondered how cool it would have been if you could hold first edition Harry Potter books right after they got published? What about having original jersey of your most favorite superstar?

Cookingboy 12y ago

I love how you can start a smuggling organization (from the description, it's just that, this is not even legal gray area bullshit, it's legally black) and call it a "disruptive startup" these days in Silicon Valley AND get funded by YC, I mean, what the actual fuck? No kidding it's a $16 billion market in China alone, that's why people risk on getting EXECUTED to be in the smuggling business. Edit: this is from their site, they call themselves the "only peer-to-peer platform that gives you access to the global market." I actually bursted out laughing when I read it, I should start a money laundering service and call it the "only secure platform that unlocks the full potential of your earnings"

e15ctr0n 12y ago
Breaking the law seems very much the modus operandi of Silicon Valley startups these days. Just look at AirBnb, Uber, Lyft, Aereo, 23andMe et al.
- ryanSrich 12y ago
  And rightfully so. Some laws exist to protect the consumer. Most laws exist to extort money and funnel it to a very specific group of people.
  - Cookingboy 12y ago
    Oh god the arrogance and naivety. Yes, all import tax laws exist with the sole reason of funneling money to specific group of evil people, this is absolutely true regardless of circumstance or the country or product category. Things like local market production and foreign trade balance and a gazillion other factors never play a role. /sarcasm. Even if the law is out of bad intention, the best way to get it changed is to break it right? Be..because JUSTICES TRIUMPHS ALL IN THE END RIGHT? /facepalm
  - edgyswingset 12y ago
    Care to explain which of those "most laws" exist to extort money? It's common to hear this sentiment parroted around, but never does it come with anything backing it up. Until that point, people like me have to assume that sentiments such as that are purely self-serving.

specular 12y ago

This is really interesting -- I had the exact same reaction as the majority of the responses to this comment. Ignoring the tax issue for a moment, I would expect the arbitrage to fluctuate with shipping costs and currency valuations, which is really interesting. But unfortunately, it's really difficult to ignore the tax issue. In particular, China and the United States are sticklers for this, and getting caught smuggling a high priced item (I forget the threshold) won't be viewed as innocent arbitrage by customs. This model would work equally well for drugs and human trafficking, so I would assume that most governments will/should have a problem with this form of tariff evasion. Note: I'm not trying to imply that the founders have anything but the best intentions here. I'm simply pointing out that the very existence of a viable distribution network such as this might be of concern for authorities.

Cookingboy 12y ago
Basic rule of thumb: If your startup's profit model is based off completely screwing over the governments around the world, then even in the ever so small chance it's not illegal everywhere yet, it will be very soon.

ivanca 12y ago

Besides the point already made about "avoiding taxes" the other big problem is that this service is perfect for... drug traffickers; so yeah, I don't give it more than 3 months before they pivot. Also, a lot of airports ask you directly if you are carrying something as a favor for someone else; so "backpack" has to tell its users to lie about it, otherwise the item gets confiscated.

ashraful 12y ago

The founders are from Bangladesh, where this is becoming a very common practice, although the practice is rather informal. Usually you'd ask your friends and family to find out if anyone they know will be traveling from US to Bangladesh and then you ask them to buy whatever you want. In the last two years I have also seen facebook groups pop up to expand the network beyond family and friends so its incredibly smart of them to formalize the process and make it more accessible to everyone. While it's technically breaking the law, its no more so than AirBnb and Uber/Lyft. And the demand is just as high if not more.

Cookingboy 12y ago
"While it's technically breaking the law, its no more so than AirBnb and Uber/Lyft. And the demand is just as high if not more." That's is absolutely not correct. Please do not compare individual countries' custom law to your local city's taxi law or hotel code. Lying on custom declaration form is an imprisonable offense in most countries. When it's an informal practice it works because it's hard to prove and there is no paper trail. But when it's a real company doing the service all the customers data has a paper trail to it with financial records for each transaction, involving the monetary amount paid by the customer, received by the carrier, earned by the company, etc. It's literally a prosecutor's wet dream. At least in China, these kind of organized smuggling rings do exist, but they exist very much underground with no paper trail, because if caught, the ring leaders (founders of Backpack in this case) would be subject to from prison terms to execution depends on the amount of tax they evaded.
- ashraful 12y ago
  You are right. I suppose I meant to say its no more unethical (in my opinion) than Airbnb or Uber.

davidPB 12y ago

If backpack's team is crazy, many more are crazy as you check out our non exhaustive list http://blog.piggybee.com/2014/08/delivery-by-travelers.html http://blog.piggybee.com/2014/08/delivery-by-travelers.html

_upvotes_ 12y ago

It seems most of the answers and discussion here revolve around "smuggling" good which are available in both countries. What about goods which are only available in the country of origin? For example, there's a lot of Godzilla and other niche toys only available in Asia which I would love to add to my collection. I don't see why these toys aren't available in the US besides the market size. I don't see why Backpack would be a "smuggling ring" at that point.