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Exporting cars illegal?

Oakland, CA |

Is buying cars in the us then exporting it oversea illegal?

An 1099 employee works for an exporter by buying cars with the exporter money and once the car is purcased the employer transfer the title to the exporter. The exporter then distributes the vehicle oversea for profit. The exporter pays his 1099 employee money for each purchase.

Is the employee breaking any kind of laws? Taxes are paid. Does the employee need dealer license etc? Technically the employee just work for the exporter.

Attorney Answers 1

Posted

Mr first and primary concern is whether or not the exporter is reporting that income to the IRS and State. to know he's not reporting any income made on the sales it seems as if he would be in a position of co-conspirator to defraud the government from taxes due and owing from the income generated. Other than this tax evasionary move I don't understand the present dynamics. Way we have you buy a vehicle in your name only to transfer to his name after he sell the vehicle? This question is illogical and does not stand on all fours. Why not just acquire the vehicles as an agent for the exporter? The present basis, sounds like you might have to register the vehicle twice with the Dept. of Motor Vehicles adding more expense to the transaction.

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1 lawyer agrees

3 comments

Asker

Posted

I believe I was writing in detail. Taxes are paid.

Hillary Johns

Hillary Johns

Posted

You believe? I would make sure that you know that for a certainty before you proceed.

Asker

Posted

If your getting a 1099 then obviously there is something being reported to the IRS. Secondly, the reason an agent can't go into a dealer and buy it as an exporter is because the dealers won't and can't sell to a known exporter per manufacturer and dealer agreements. The manufacturer's don't want dealers selling to exporters because they are charging 2 to 3 times the amount for those same cars in China and Russia. In other words a car costing 70K in America will cost a chinaman or russian 140K ++. So that is why this business is booming. Nothing illegal about it as long as the monies purchasing the cars isn't going towards the funding of terrorists or drug money. Ask the government agency ICE about it!! The extra expenses on purchasing this way are nominal compared.