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YC Demo Day Session 1

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Re: YC Demo Day Session 1

#101

>> 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?

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

Re: YC Demo Day Session 1

#102

>> 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?

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.

Re: YC Demo Day Session 1

#103
post #77

Earlier quoted context omitted.

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.

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.

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-cros...

Here's some more people specifically dodging import taxes and then being arrested:

http://www.cnet.com/news/chinese-children-used-to-smuggle-ip...!

http://www.intomobile.com/2013/08/14/man-caught-smuggling-ip...

http://www.phonearena.com/news/Bad-ideas-lady-caught-smuggli...

This stuff is really black and white illegal.

Re: YC Demo Day Session 1

#105

Earlier quoted context omitted.

Agree with your comment, but an inundation of these type of comments on HN in the past seem like a very good indicator that the company will succeed to the tune of multi-billion$ valuations.

This is actually quite astute. The problems with ideas like Backpack are obvious, but there is probably a safe way to address all the concerns with the right approach. Personally I would never use Backpack after reading about people who unknowingly took a package to another country that had drugs and spent years in jail despite their ignorance. However, if somehow there is a way to do this legally and still capitaliz…

The legal way just isn't lucratively profitable - because then you are just a courier escorting packages through customs and there are many companies that do that. So firstly, you have to pay all the regular taxes that any other importer has to pay, and then you have to go through all of customs' bureaucracy like any other importer has to do.

Travelers won't be able to do this since they won't know the local language, laws and customs, and they won't be licensed importers, and they will be scammed by customs officials in poor countries, and their goods will eventually be forfeited if they don't have enough money to pay the/arbitrary taxes and accrue fees while they decide whether to abandon the merchandise or not.

So yes, the process of importing stuff into many places is shitty and in need of disruption. "Don't get caught, mule" is not that disruption. Customs agents everywhere are united on that and actively looking for people smuggling drugs, animals, produce, electronics, luxury goods and anything else.

Price discrepancies when you factor in transport and taxes are still going to exist and some are going to be opportunities to make small amounts of money, not big amounts.

Re: YC Demo Day Session 1

#106
post #95

Earlier quoted context omitted.

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.

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.

"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.

Re: YC Demo Day Session 1

#107
post #95

Earlier quoted context omitted.

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.

"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.

Again, enforcement is up to the municipality, and Air bnb is cooperative: https://www.airbnb.com/help/article/481

HOA and landlord contractual agreements are not the same as municipal laws and are frivolous to the conversation about international import laws. Mentioning them makes it seem like you're scraping for excuses to attack air bnb.

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