Originally Posted by
Bruno
Ye. Global trade being what it is, you can get very funny constructions because from a tax pov, there is a difference in parts vs end product. A guy I know personally owns a clothing company together with a couple of others. They buy individual pants legs, ship them to poland or ukraine (I remember it's a former eastern bloc country). There they just stitch them together instead of doing that in where the pieces are coming from.
This way, they pay very little taxes because the eastern bloc country is in it mainly for the employment. For my friend, shipping back and forth is a lot cheaper than finishing the entire product in the west.