Sneaker arbitrage

August 10, 2015

Stan Zin passes on this wonderful example, in which Converse puts lint on the bottoms of its Chinese-made sneakers to reduce its tariff.  And files a patent on the result.  From the link:

Since my shoes were made in China, they were subject to an import tariff when they were shipped to the United States. And the import tariff is much lower for shoes with fuzzy fabric soles than it is for shoes with rubber soles. According to the inventors [of sneakers with fuzzy soles], changing the shoe material can lower the duty from 37.5% down to just 3%.

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