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Chapter 276: Golf Cart


There's a joke online now that says the Germans want very much to confirm with other countries whether these countries want Germany to rearm and then march into Poland to fend off Russia.

Because that's exactly what Germany did during World War II.

Though the whole of Europe is counting on Germany.

But Germany right now really can't rise up.

Even the reconstruction of its military industry is fraught with difficulties.

As an old industrialized nation, Germany isn't short of workers, but the high energy prices have become a roadblock.

The capitalists have realized, since they need to produce military goods to support Ukraine,

rather than using expensive energy and costly labor themselves, and paying hefty fees to various environmental organizations.

They might as well just import parts from other countries, assemble them in Germany and sell them.

How could this not count as being produced in Germany itself.

So the bosses of the military industry went to find Schaefer, to see if Schaefer had any way.

Schaefer immediately thought of Chen Yiyang.

"We know about your business of selling all-terrain vehicles to Russia," Schaefer whispered, "We think this model is pretty good."

"How do you guarantee safety issues," Chen Yiyang was not too excited about Schaefer's proposal.

Selling all-terrain vehicle parts is a business in which he also holds a sizable share.

But the problem with this is that all-terrain vehicles are used on the battlefield, so they count as military products.

Selling to Russia doesn't really matter because there's no authority there to investigate this.

But exporting to Germany becomes really troublesome.

Many NGO organizations, once they notice this, might cause a fuss over it, indirectly pushing the German authorities to fine Chen Yiyang.

Chen Yiyang doesn't want to run into trouble for a bit of money.

After all, the robotic dogs he sold to Germany earlier were, on paper, also civilian products instead of military ones.

Schaefer understood Chen Yiyang's concerns and, in fact, he also found many organizations and institutions in his country annoying.

But there was no way around it because behind these organizations and institutions, there are more or less some legislators backing them up, which are these legislators' channels for campaign funds.

There's no way to disband them.

However, Schaefer quickly thought of a way.

"How about exporting under the name of golf carts?"

"Golf carts?" Chen Yiyang asked in confusion.

"Yes." Schaefer said, "Functionally, there's not much difference between an all-terrain vehicle and a golf cart. What's more, golf carts are also categorized as off-road golf carts, street golf carts, and all-terrain golf carts.

We can register a golf cart manufacturing company in Germany, a military all-terrain vehicle manufacturing company, and import components under the name of the golf cart company from you.

Then, after simple assembly, let the golf cart company continue to sell the products as semi-finished goods to the military all-terrain vehicle company. Does that not work?"

"Seems like no problem." Chen Yiyang nodded, but still not assured, he said, "All right, I'll give you an answer tomorrow."

"Okay." Schaefer raised his glass and clinked glasses with Chen Yiyang, "Looking forward to your answer tomorrow."

That night, back at the hotel, Chen Yiyang called Yang Chengru to ask if this business could be done.

"Your business is getting more and more complicated." Yang Chengru was also helpless.

Chen Yiyang is juggling all sorts of businesses, where does he get so many connections?

If it weren't for the fact that he knew Chen Yiyang's background well, he might really have thought Chen Yiyang was some legendary illegitimate child of a global top capitalist family.

Selling to Russia on one hand, and to Germany on the other.

He's doing business quite smoothly.

After consulting professionals, Yang Chengru quickly called back Chen Yiyang.

"I asked the customs folks. Golf carts and all-terrain vehicles are specifically listed under different tariff codes. All-terrain vehicles fall under 87031011, golf carts under 87031019.

This means, in principle, that the export permits for these two types of products are different, and the required taxes are also different.

If you want to export golf carts, you can export them freely, but if you want to export all-terrain vehicles, you'll need an export permit."

"So this business can't be done?"

"Do you have an export permit for all-terrain vehicles?" Instead of answering Chen Yiyang's question, Yang Chengru asked back.

"Yes," Chen Yiyang nodded, "because I previously collaborated with others in West Capital to export all-terrain vehicle components to Russia, so I applied for and got an export permit."

"But your export permit can't be used here." Yang Chengru said, "Because you'll be using the all-terrain vehicle export permit, and German customs can find out. By then, German customs will think you've underreported the type of goods."

"So what to do?" Chen Yiyang simply handed the problem over to Yang Chengru. He suspected Yang Chengru actually had a solution.

"You need to set up another company in Lin'an City for exporting golf cart components. Then export components to Germany in the name of golf carts."

"So how to deal with customs?" Chen Yiyang didn't get what Yang Chengru meant.

"Do you know the price difference between exporting an all-terrain vehicle and a golf cart?"

"How much?"

"The average unit price of a golf cart is four thousand four hundred US Dollars, while that of an all-terrain vehicle is eight hundred US Dollars.

Both types have no tax rebates. This means if you actually export an all-terrain vehicle but declare it as a golf cart to customs, the customs duty you'll actually pay is more than five times higher."

Hearing this, Chen Yiyang fully understood what Yang Chengru meant.

Since ancient times, customs have always cracked down on tax evasion and fraud, but no one ever heard of them cracking down on overpaying taxes.

Chen Yiyang just needs to ensure he declares the items at the high price of the golf cart to customs.

Even if it gets found out later on.

At most, it'll just be an administrative penalty with a fine.

"Got it, I'll arrange for someone to register a company in Lin'an." Chen Yiyang definitely couldn't let Yang Chengru say it any more explicitly.

So he immediately expressed he understood what Chengru meant and began to arrange it.

With this deal, production in West Capital expanded, Lin'an City and customs gained more tax revenue, Chen Yiyang made money, and Schaefer and his backers got cheap goods.

Everyone was happy.

Everyone was pleased.

The next day, Chen Yiyang invited Schaefer over, immediately expressed his agreement to do the business, and said he'd arrange for the factory to start production of the all-terrain vehicles Schaefer needed. Schaefer also needed to quickly set up the cover company, so everyone could make money together.

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