The Remote Transaction Parity Act Won’t Touch These Foreign Sellers

The Remote Transactions Parity Act (RTPA) and the Marketplace Fairness Act have a gaping hole that will continue to taken of advantage of even if either bill passes.  Combine this with subsidized inexpensive shipping for the “developing country” of China – means that China will continue to ship direct to the US at prices no one else can touch.

Here’s an actual example of what I mean: A $1.39 stereo jack cable for plugging my Ipod into a small speaker.  This item was purchased on Amazon from a third party seller that ships direct from China.  $1.39 and with FREE SHIPPING.  There’s also no sales tax charged since they are a foreign seller.  And as extra frosting, they declare the item was a gift, not a commercial shipment.

china-1w china-2w

The massive big box retailer funded RTPA/MFA push will foist compliance burdens on millions of small remote and marketplace sellers yet leave foreign sellers completely untouched.  Despicably, Wal-mart (and others) funded lobbying organization Stand with Main Street and the related lobbying fronts actually have the nerve to suggest that Alibaba will crush us if we don’t pass the MFA or RTPA.  In fact, any of the foreign sellers through Alibaba will be out of the reach of the law anyway and will NOT collect tax.

 

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  1. […] after I wrote The Remote Transaction Parity Act Won’t Touch These Foreign Sellers, there was an article in the Wall Street Journal entitled “Borders Matter Less and Less in […]

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