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

Rochester, NY |

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. I know another question was asked why does the exporter have to use someone else to buy the car? The answer is a lot of these dealers don't sell out of area or require the need for "straw-buyers" to purchase the vehicle to mask the purchase as "personal use". All taxes, wether they be income or sales tax are paid and in full.

Attorney Answers 2


  1. Many auto manufacturers do not allow new cars made for use in the US to be exported. Dealerships may have you sign an agreement not to export the car. If you do and still export the car then you breached the agreement.

    Used cars can generally be exported. If the exporter does so on a regular basis, he may want to consider a wholesale dealer license.

    This answer is not legal advice. You should not act or refrain from acting based on this answer. This does not form an attorney client relationship between you and Regina Gordon, Esq. Such a relationship is only formed after you sign an engagement agreement.


  2. This isn't my field, but I believe that there are federal export licenses, and possible duties, when a car is shipped overseas.

    If you feel you may have exposure to liability, consult an attorney familiar with tax law.

    I am an attorney admitted solely in NY. None of the answers I submit on this forum constitutes legal advice, even to questioners in NY, and no attorney-client relationship is hereby created.

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