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Posts: 399
Location: Burton, Ohio | Johnnysled, The same with scrap steel in the USA. China buys our scrap steel, pays to have it sent to them, reworks it and sells it back to us cheaper than we can make here in the states. Unbelievable to me.
A side note. Today a friend from work was at a big woodworking sale on saturday. I had mentioned to him that if he sees a good sale on a router bit set to buy it for me. Today he came in and handed me this 24 pc carbide router bit set. The first thing I thought to myself was oh my gosh this had to be about 89 bucks or more. I then asked him how much I owe him, he stated "29 dollars" I was shocked! I looked at the made in China tag and was puzzled. A good carbide bit goes for about 25 bucks apiece. There were 24 of them. Most of them had bearings on them also. They came in a nice case to boot. How is this possible? |
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Posts: 13688
Location: minocqua, wi. | tariff's and shipping are HUGE ... here's my guess at how they are playing the game. they inflate the value of the goods as used and obtain invoices that reflect a "cost" ... export shipments are about 50% less than imports because they need so many containers returned so they have a huge discount in outbound ocean freight. the chinese government subsidizes the program with capital funding on their side and the product is converted under the structure i stated previously with all the "typical" advantages. the kicker on this is when it's shipped back to the U.S. the factory receives it's export credit of 10% (down from what was 12% prior to a couple months ago) allowing them to basically operate at cost ... when they ship to the U.S. the export invoice is reduced by the value of the import materials component used to make the product and the tariff is applied only to the balance.
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Posts: 17
Location: Puyallup, WA | I guess someone didn't like my comment so they pulled my post???
Thanx!!! |
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