Ryan Petersen

It could be China, it could be anywhere.

That company registers, not as an LLC or any kind of legal entity, but they just register with CBP, with customs.

They import the goods into the U.S.

from abroad, right?

If they cheat, they just disappear and customs doesn't have agents in China to go chase it down.

So then they just do it again under a different shell company.

And that's a huge amount of what gets sold on Amazon.

I'm not saying it's fraudulent, but it is these foreign registered companies.

I think they're going to crack down on that.

Yeah, that's a created LLC.

It can be a foreign-owned LLC, but you'll have to have like an LLC that can be held accountable.

But it's very unclear exactly how it will be or should be structured.

Like, does it need to have employees who could face jail time?

Like, what's the, you know, what does it need to have a certain amount of cash in the bank that can be taken if there's fraud?

There's a lot of ways, but I have no idea what's going to pass.

There's a couple, I understand there's a few bills like looming, but I haven't read the text of them yet in Washington that would shut down the ability for foreign companies to import or put in new requirements for it.

So that's like one creative thing that will happen is you get offered as an importer.

You've been buying these goods from your factory.

And then all of a sudden they offer them to you for way cheaper than the duty alone.

You're like, yeah, it's not my problem.