Latest news with #US40
West Australian
5 days ago
- Business
- West Australian
Businesses are finding a workaround for tariffs — and it's entirely legal
Businesses are finding a workaround to minimise the most significant hit from tariffs, using a decades-old piece of legislation known as the 'first sale rule'. Within US customs law, the first sale rule allows US importers to use the price of the first sale in a number of transactions to calculate customs duties. For instance, a Chinese manufacturer sells a T-shirt to a Hong Kong vendor for $US5. That Hong Kong vendor then sells the T-shirt to a US retailer for $US10. That US retailer then sells the T-shirt to consumers for $US40. Under the first sale rule, the US retailer can pay the import duty on the initial $US5 price of the good, rather than the vendor's inflated $US10, thus stripping out the cost associated with the middleman's profit. 'What the rules allow you to do is use that initial sales price from the factory to the vendor to determine the final duty price,' Brian Gleicher, senior lawyer and member at Miller & Chevalier Chartered, said. The first sale rule has been around since 1988, but gained renewed attention under US President Donald Trump's first administration and, now, during his latest tariff regime. 'When the first administration had 25 per cent tariffs [on China in 2018], that's when we started getting calls. Now with the new tariffs, the first sale rule has started coming up again,' Sid Paruthi, partner at US consulting firm Moss Adams, said. 'It's been around for a very long time but ... everybody's beginning to explore it with more interest,' Gleicher said. Here are the criteria businesses must fulfil to apply the rule: For some companies, that can be easier said than done. Typically, the default duty imposed by US customs is based on the import price of a good, putting the burden of proof on the importer to demonstrate the initial cost of that item. That may not always be something a vendor is willing to reveal. 'If you're an importer, you need to get that first sale price. You need to have the data,' Gleicher said. 'Vendors may not want to give that information.' Rich Taylor, a corporate business development consultant based in Chinese hub Ningbo who has been advising Fortune 500 companies on the first sale rule since Trump's first term, noted 'there has to be a level of trust between all parties' because of the risks involved. Nevertheless, the additional complexities can be worthwhile, given the potential cost savings. 'You [suppliers] are keeping your customer. You're showing them that you're trying to give them every tool to reduce their cost,' Taylor said. 'If you don't use it, then the end cost is going to go up. And if your competitor is using the [first sale] rule, then you're going to lose you that advantage over them.' Companies appear to be cluing into that. While the first sale rule is broadly applicable across products and industries, it is considered particularly useful in higher-value consumer goods and luxury products, where margins are greater. Last month, Italian luxury fashion brand Moncler flagged the first sale rule as providing 'significant benefit' to its cost structure. 'First cost [sale], of course, the industrial cost ... is much lower than the retail price, and it is about 50 per cent of the intercompany price. So, of course, it's a significant benefit,' Luciano Santel, executive director and chief corporate and supply officer at Moncler, told investors during an April 16 earnings call. Swiss-headquartered biotech Kuros Biosciences earlier this month said that it was altering its operations, which would allow it to adopt the first sale policy. 'What we will now do is we will switch in between Zurich as a wholesaler hub ... which in essence means we can adapt the so-called first sale method,' Daniel Geiger, chief financial officer of Swiss-headquartered biotech Kuros Biosciences, said during a May 13 earnings call. During first-quarter earnings calls, US BBQ-maker Traeger and manufacturing firm Fictiv also both cited first sale as 'supply chain mitigants' and means to 'minimise tariff and duty costs,' respectively. Use of the first sale rule, while perfectly legal, nevertheless could undermine the Trump administration's efforts to boost tariff revenue and boost onshoring of manufacturing. The White House did not respond to CNBC's request for comment on use of the first sale rule and its implications for tariff policy. US Customs and Border Protection said it could not provide data on the recent use of the first sale rule by importers. CNBC
The Age
27-04-2025
- Automotive
- The Age
These affordable EVs are set to rule the roads – and they are all from the same place
The company, based in southern China's Shenzhen, recently announced an ultra-fast EV charging system it says can provide a full charge for its latest EVs within five to eight minutes, about as long as a fill-up. It plans to build more than 4000 of the new charging stations across China. Loading The Chinese company started out making batteries and has been refining its battery and energy storage technology while building an auto empire that is expanding outside China. While BYD's fanciest, latest premium models are expected to sell for up to about $US40,000 ($62,000), it also makes far less expensive EVs including the Seagull, which sells for about $US12,000 in China. BYD nudged ahead of Tesla in production of battery-powered EVs in 2024, making 1,777,965 compared with Tesla's 1,773,443. Great Wall Motors Great Wall Motors, with the Haval, Wey, Ora, Poer and Tank brands, is banking on overseas sales to keep growing after its sales inside China fell by nearly 15 per cent last year, even as the company's net profit jumped more than 80 per cent. The company has factories in Russia, Thailand and Brazil, where it is challenging Toyota's popular Hilux pick-up truck with its GWM Poer, a hybrid pick-up of its own. Another mainstay is the Haval H6, a hybrid sports SUV. In Australia, the Haval, Poer and Ora brands are available for sale, with Wey instead choosing to focus on the European market. GWM is the seventh best-selling car manufacturer in Australia so far in 2025 – with more than 4300 vehicles sold in March, according to VFACTS data. Its electric Haval H6 model has done particularly well, comprising 6.4 per cent of the overall medium SUV share. Great Wall has smoothed its transition to overseas production by buying factories of other automakers. In Thailand, it took over a factory formerly operated by General Motors. In Brazil, it purchased a former Mercedes-Benz plant. 'It is essential for volume to be big, otherwise the cost of production is too high,' Great Wall's chairman, Wei Jianjun, said in a media huddle at the show. Wei, who also goes by the name Jack Wey, was born in Beijing but moved to nearby Hebei, home of the Great Wall. He led the company's transition from vehicle modification to automaking, becoming China's biggest maker of pick-up trucks and a leading SUV maker. The company has a joint venture for EVs with BMW. Chery State-owned Chery Automobile says it was the first Chinese automaker to export overseas. It has sold more than 15 million of its Exeed, Omoda and Jetour models overseas, mostly in the developing world and emerging markets, including Turkey and Ukraine. Chery reported selling 2.6 million vehicles overseas last year and is aiming for three million in 2025. It's quickly expanding overseas production, setting up factories in Russia and Spain. It is expanding rapidly in Latin America. The manufacturer launched in Australia in March 2023, and made its 20,000th overall sale earlier this year. The Omoda E5, its electric vehicle offering, was given a price cut in January due to poor sales in the Australian market. Only 1300 have been sold so far in 2025. Chery's tie-up with EV-maker Visionary Vehicles aimed to sell in North America but has not yet achieved that goal. The company has a 50-50 joint venture with Jaguar Land Rover, which is a subsidiary of Tata Motors of India that makes Jaguars and Land Rovers in China. It also collaborates with Huawei Technologies and e-commerce giant Alibaba. Chery still sells far more fuel-engine cars than EVs. Its battery electric vehicle company, Chery New Energy, makes mini-vehicles such as the eQ1, or Small Ant, and the QQ Ice Cream. Its mainstays are the Tiggo lineup of SUVs and its Arrizo sedans. Geely Geely Auto is perhaps the most famous Chinese automaker that many people have never heard of. The privately held company was founded as a refrigerator-maker by businessman Li Shufu in 1997 in eastern China's Taizhou, which early on became a hub of private industry. Li began making strategic overseas acquisitions early on, buying Sweden's Volvo from Ford Motor in 2010. Geely's purchase of a 49.9 per cent stake in Malaysia's Proton gave it a 51 per cent stake in luxury sports car brand Lotus. It formed a 50-50 joint venture to make Smart city cars with Germany's Daimler AG. It also works with Renault of France on powertrains and owns a stake in Aston Martin Lagonda. In March, it launched sales of its Geely EX5 SUVs in Australia and New Zealand, adding to its global reach. Geely and Volvo own Swedish automaker Polestar, which has struggled in the US market. As of March, only 389 Polestar vehicles had been sold in Australia during 2025, according to the Electric Vehicle Council. Wuling China's second-best selling EV brand in China is Wuling, a joint venture of Shanghai's SAIC Motor, General Motors and Guangxi Auto. It sold more than 673,000 EVs in China and has a market share of only 6 per cent compared with BYD's nearly one-third share. Tesla came in third at 659,000 cars sold. Apart from its Baojun sedans and vans, Wuling mainly makes engines, commercial vehicles and special-purpose vehicles like mini-EVs and golf carts. The brand is not available for purchase in Australia. Dongfeng, Changan and Nio Other major Chinese brands of EVs include Nio, Xpeng, Li Auto and Leap Motor. State-run giants such as Dongfeng Motor Group, which has an alliance with Nissan, and Changan Automobile, a partner with Japan's Mazda and with Ford, are also quickly expanding EV sales. While none of these brands are being sold in Australia, all three have previously indicated interest in expanding their market.
Sydney Morning Herald
25-04-2025
- Automotive
- Sydney Morning Herald
These affordable EVs are set to rule the roads – and they are all from the same place
The company, based in southern China's Shenzhen, recently announced an ultra-fast EV charging system it says can provide a full charge for its latest EVs within five to eight minutes, about as long as a fill-up. It plans to build more than 4000 of the new charging stations across China. Loading The Chinese company started out making batteries and has been refining its battery and energy storage technology while building an auto empire that is expanding outside China. While BYD's fanciest, latest premium models are expected to sell for up to about $US40,000 ($62,000), it also makes far less expensive EVs including the Seagull, which sells for about $US12,000 in China. BYD nudged ahead of Tesla in production of battery-powered EVs in 2024, making 1,777,965 compared with Tesla's 1,773,443. Great Wall Motors Great Wall Motors, with the Haval, Wey, Ora, Poer and Tank brands, is banking on overseas sales to keep growing after its sales inside China fell by nearly 15 per cent last year, even as the company's net profit jumped more than 80 per cent. The company has factories in Russia, Thailand and Brazil, where it is challenging Toyota's popular Hilux pick-up truck with its GWM Poer, a hybrid pick-up of its own. Another mainstay is the Haval H6, a hybrid sports SUV. In Australia, the Haval, Poer and Ora brands are available for sale, with Wey instead choosing to focus on the European market. GWM is the seventh best-selling car manufacturer in Australia so far in 2025 – with more than 4300 vehicles sold in March, according to VFACTS data. Its electric Haval H6 model has done particularly well, comprising 6.4 per cent of the overall medium SUV share. Great Wall has smoothed its transition to overseas production by buying factories of other automakers. In Thailand, it took over a factory formerly operated by General Motors. In Brazil, it purchased a former Mercedes-Benz plant. 'It is essential for volume to be big, otherwise the cost of production is too high,' Great Wall's chairman, Wei Jianjun, said in a media huddle at the show. Wei, who also goes by the name Jack Wey, was born in Beijing but moved to nearby Hebei, home of the Great Wall. He led the company's transition from vehicle modification to automaking, becoming China's biggest maker of pick-up trucks and a leading SUV maker. The company has a joint venture for EVs with BMW. Chery State-owned Chery Automobile says it was the first Chinese automaker to export overseas. It has sold more than 15 million of its Exeed, Omoda and Jetour models overseas, mostly in the developing world and emerging markets, including Turkey and Ukraine. Chery reported selling 2.6 million vehicles overseas last year and is aiming for three million in 2025. It's quickly expanding overseas production, setting up factories in Russia and Spain. It is expanding rapidly in Latin America. The manufacturer launched in Australia in March 2023, and made its 20,000th overall sale earlier this year. The Omoda E5, its electric vehicle offering, was given a price cut in January due to poor sales in the Australian market. Only 1300 have been sold so far in 2025. Chery's tie-up with EV-maker Visionary Vehicles aimed to sell in North America but has not yet achieved that goal. The company has a 50-50 joint venture with Jaguar Land Rover, which is a subsidiary of Tata Motors of India that makes Jaguars and Land Rovers in China. It also collaborates with Huawei Technologies and e-commerce giant Alibaba. Chery still sells far more fuel-engine cars than EVs. Its battery electric vehicle company, Chery New Energy, makes mini-vehicles such as the eQ1, or Small Ant, and the QQ Ice Cream. Its mainstays are the Tiggo lineup of SUVs and its Arrizo sedans. Geely Geely Auto is perhaps the most famous Chinese automaker that many people have never heard of. The privately held company was founded as a refrigerator-maker by businessman Li Shufu in 1997 in eastern China's Taizhou, which early on became a hub of private industry. Li began making strategic overseas acquisitions early on, buying Sweden's Volvo from Ford Motor in 2010. Geely's purchase of a 49.9 per cent stake in Malaysia's Proton gave it a 51 per cent stake in luxury sports car brand Lotus. It formed a 50-50 joint venture to make Smart city cars with Germany's Daimler AG. It also works with Renault of France on powertrains and owns a stake in Aston Martin Lagonda. In March, it launched sales of its Geely EX5 SUVs in Australia and New Zealand, adding to its global reach. Geely and Volvo own Swedish automaker Polestar, which has struggled in the US market. As of March, only 389 Polestar vehicles had been sold in Australia during 2025, according to the Electric Vehicle Council. Wuling China's second-best selling EV brand in China is Wuling, a joint venture of Shanghai's SAIC Motor, General Motors and Guangxi Auto. It sold more than 673,000 EVs in China and has a market share of only 6 per cent compared with BYD's nearly one-third share. Tesla came in third at 659,000 cars sold. Apart from its Baojun sedans and vans, Wuling mainly makes engines, commercial vehicles and special-purpose vehicles like mini-EVs and golf carts. The brand is not available for purchase in Australia. Dongfeng, Changan and Nio Other major Chinese brands of EVs include Nio, Xpeng, Li Auto and Leap Motor. State-run giants such as Dongfeng Motor Group, which has an alliance with Nissan, and Changan Automobile, a partner with Japan's Mazda and with Ford, are also quickly expanding EV sales. While none of these brands are being sold in Australia, all three have previously indicated interest in expanding their market.
The Age
25-04-2025
- Automotive
- The Age
These cars are poised to take over our roads, and they are all made in China
BYD's electric vehicles are second in popularity only to Elon Musk's Tesla within the Australian landscape. The two brands collectively represented more than half of sales across the first three quarters of 2024, the Electric Vehicle Council said. Loading The company, based in southern China's Shenzhen, recently announced an ultra-fast EV charging system it says can provide a full charge for its latest EVs within five to eight minutes, about as long as a fill-up. It plans to build more than 4000 of the new charging stations across China. The Chinese company started out making batteries and has been refining its battery and energy storage technology while building an auto empire that is expanding outside China. While BYD's fanciest, latest premium models are expected to sell for up to about $US40,000 ($62,000), it also makes much less expensive EVs including the Seagull, which sells for about $US12,000 in China. BYD nudged ahead of Tesla in production of battery-powered EVs in 2024, making 1,777,965 compared with Tesla's 1,773,443. Great Wall Motors Great Wall Motors, with the Haval, Wey, Ora, Poer and Tank brands, is banking on overseas sales to keep growing after its sales inside China fell by nearly 15 per cent last year, even as the company's net profit jumped more than 80 per cent. The company has factories in Russia, Thailand and Brazil, where it is challenging Toyota's popular Hilux pick-up truck with its GWM Poer, a hybrid pick-up of its own. Another mainstay is the Haval H6, a hybrid sports SUV. In Australia, the Haval, Poer and Ora brands are available for sale, with Wey instead choosing to focus on the European market. GWM is the seventh best-selling car manufacturer in Australia so far in 2025 – with more than 4800 vehicles sold in March, according to the Federal Chamber of Automotive Industries. While this includes EV and internal combustion engine sales, it is indicative of growing market overall. Great Wall has smoothed its transition to overseas production by buying factories of other automakers. In Thailand, it took over a factory formerly operated by General Motors. In Brazil, it purchased a former Mercedes-Benz plant. 'It is essential for volume to be big, otherwise the cost of production is too high,' Great Wall's chairman, Wei Jianjun, said in a media huddle at the show. Wei, who also goes by the name Jack Wey, was born in Beijing but moved to nearby Hebei, home of the Great Wall. He led the company's transition from vehicle modification to automaking, becoming China's biggest maker of pickup trucks and a leading SUV maker. The company has a joint venture for EVs with BMW. Chery State-owned Chery Automobile says it was the first Chinese automaker to export overseas. It has sold more than 15 million of its Chery, Exeed, Omoda and Jetour models overseas, mostly in the developing world and emerging markets, including Turkey and Ukraine. Chery reported selling 2.6 million vehicles overseas last year and is aiming for three million in 2025. It's quickly expanding overseas production, setting up factories in Russia and Spain. It is expanding rapidly in Latin America. The manufacturer launched in Australia in March 2023, and made its 20,000th overall sale earlier this year. The Omoda E5, its electric vehicle offering, was given a price cut in January due to poor sales in the Australian market. Chery's tie-up with EV-maker Visionary Vehicles aimed to sell in North America but has not yet achieved that goal. The company has a 50-50 joint venture with Jaguar Land Rover, which is a subsidiary of Tata Motors of India that makes Jaguars and Land Rovers in China. It also collaborates with Huawei Technologies and e-commerce giant Alibaba. Chery still sells far more fuel-engine cars than EVs. Its battery electric vehicle company, Chery New Energy, makes minivehicles like the eQ1, or Small Ant, and the QQ Ice Cream. Its mainstays are the Tiggo lineup of SUVs and its Arrizo sedans. Geely Geely Auto is perhaps the most famous Chinese automaker that many people have never heard of. The privately held company was founded as a refrigerator-maker by businessman Li Shufu in 1997 in eastern China's Taizhou, which early on became a hub of private industry. Li began making strategic overseas acquisitions early on, buying Sweden's Volvo from Ford Motor in 2010. Geely's purchase of a 49.9 per cent stake in Malaysia's Proton gave it a 51 per cent stake in luxury sports car brand Lotus. It formed a 50-50 joint venture to make Smart city cars with Germany's Daimler AG. It also works with Renault of France on powertrains and owns a stake in Aston Martin Lagonda. In March, it launched sales of its Geely EX5 SUVs in Australia and New Zealand, adding to its global reach. Geely and Volvo own Swedish automaker Polestar, which has struggled in the US market. As of March, only 389 Polestar vehicles had been sold in Australia during 2025, according to the Electric Vehicle Council. Wuling China's second-best selling EV brand in China is Wuling, a joint venture of Shanghai's SAIC Motor, General Motors and Guangxi Auto. It sold more than 673,000 EVs in China and has a market share of only 6 per cent compared with BYD's nearly one-third share. Tesla came in third at 659,000 cars sold. Apart from its Baojun sedans and vans, Wuling mainly makes engines, commercial vehicles and special purpose vehicles like mini-EVs and golf carts. The brand is not available for purchase in Australia. Dongfeng, Changan and Nio Other major Chinese brands of EVs include Nio, Xpeng, Li Auto and Leap Motor. State-run giants like Dongfeng Motor Group, which has an alliance with Nissan, and Changan Automobile, a partner with Japan's Mazda and with Ford, are also quickly expanding EV sales. While none of these brands are being sold in Australia, all three have previously indicated interest in expanding their market.
Sydney Morning Herald
25-04-2025
- Automotive
- Sydney Morning Herald
These cars are poised to take over our roads, and they are all made in China
BYD's electric vehicles are second in popularity only to Elon Musk's Tesla within the Australian landscape. The two brands collectively represented more than half of sales across the first three quarters of 2024, the Electric Vehicle Council said. Loading The company, based in southern China's Shenzhen, recently announced an ultra-fast EV charging system it says can provide a full charge for its latest EVs within five to eight minutes, about as long as a fill-up. It plans to build more than 4000 of the new charging stations across China. The Chinese company started out making batteries and has been refining its battery and energy storage technology while building an auto empire that is expanding outside China. While BYD's fanciest, latest premium models are expected to sell for up to about $US40,000 ($62,000), it also makes much less expensive EVs including the Seagull, which sells for about $US12,000 in China. BYD nudged ahead of Tesla in production of battery-powered EVs in 2024, making 1,777,965 compared with Tesla's 1,773,443. Great Wall Motors Great Wall Motors, with the Haval, Wey, Ora, Poer and Tank brands, is banking on overseas sales to keep growing after its sales inside China fell by nearly 15 per cent last year, even as the company's net profit jumped more than 80 per cent. The company has factories in Russia, Thailand and Brazil, where it is challenging Toyota's popular Hilux pick-up truck with its GWM Poer, a hybrid pick-up of its own. Another mainstay is the Haval H6, a hybrid sports SUV. In Australia, the Haval, Poer and Ora brands are available for sale, with Wey instead choosing to focus on the European market. GWM is the seventh best-selling car manufacturer in Australia so far in 2025 – with more than 4800 vehicles sold in March, according to the Federal Chamber of Automotive Industries. While this includes EV and internal combustion engine sales, it is indicative of growing market overall. Great Wall has smoothed its transition to overseas production by buying factories of other automakers. In Thailand, it took over a factory formerly operated by General Motors. In Brazil, it purchased a former Mercedes-Benz plant. 'It is essential for volume to be big, otherwise the cost of production is too high,' Great Wall's chairman, Wei Jianjun, said in a media huddle at the show. Wei, who also goes by the name Jack Wey, was born in Beijing but moved to nearby Hebei, home of the Great Wall. He led the company's transition from vehicle modification to automaking, becoming China's biggest maker of pickup trucks and a leading SUV maker. The company has a joint venture for EVs with BMW. Chery State-owned Chery Automobile says it was the first Chinese automaker to export overseas. It has sold more than 15 million of its Chery, Exeed, Omoda and Jetour models overseas, mostly in the developing world and emerging markets, including Turkey and Ukraine. Chery reported selling 2.6 million vehicles overseas last year and is aiming for three million in 2025. It's quickly expanding overseas production, setting up factories in Russia and Spain. It is expanding rapidly in Latin America. The manufacturer launched in Australia in March 2023, and made its 20,000th overall sale earlier this year. The Omoda E5, its electric vehicle offering, was given a price cut in January due to poor sales in the Australian market. Chery's tie-up with EV-maker Visionary Vehicles aimed to sell in North America but has not yet achieved that goal. The company has a 50-50 joint venture with Jaguar Land Rover, which is a subsidiary of Tata Motors of India that makes Jaguars and Land Rovers in China. It also collaborates with Huawei Technologies and e-commerce giant Alibaba. Chery still sells far more fuel-engine cars than EVs. Its battery electric vehicle company, Chery New Energy, makes minivehicles like the eQ1, or Small Ant, and the QQ Ice Cream. Its mainstays are the Tiggo lineup of SUVs and its Arrizo sedans. Geely Geely Auto is perhaps the most famous Chinese automaker that many people have never heard of. The privately held company was founded as a refrigerator-maker by businessman Li Shufu in 1997 in eastern China's Taizhou, which early on became a hub of private industry. Li began making strategic overseas acquisitions early on, buying Sweden's Volvo from Ford Motor in 2010. Geely's purchase of a 49.9 per cent stake in Malaysia's Proton gave it a 51 per cent stake in luxury sports car brand Lotus. It formed a 50-50 joint venture to make Smart city cars with Germany's Daimler AG. It also works with Renault of France on powertrains and owns a stake in Aston Martin Lagonda. In March, it launched sales of its Geely EX5 SUVs in Australia and New Zealand, adding to its global reach. Geely and Volvo own Swedish automaker Polestar, which has struggled in the US market. As of March, only 389 Polestar vehicles had been sold in Australia during 2025, according to the Electric Vehicle Council. Wuling China's second-best selling EV brand in China is Wuling, a joint venture of Shanghai's SAIC Motor, General Motors and Guangxi Auto. It sold more than 673,000 EVs in China and has a market share of only 6 per cent compared with BYD's nearly one-third share. Tesla came in third at 659,000 cars sold. Apart from its Baojun sedans and vans, Wuling mainly makes engines, commercial vehicles and special purpose vehicles like mini-EVs and golf carts. The brand is not available for purchase in Australia. Dongfeng, Changan and Nio Other major Chinese brands of EVs include Nio, Xpeng, Li Auto and Leap Motor. State-run giants like Dongfeng Motor Group, which has an alliance with Nissan, and Changan Automobile, a partner with Japan's Mazda and with Ford, are also quickly expanding EV sales. While none of these brands are being sold in Australia, all three have previously indicated interest in expanding their market.
