Trade and Taxes in OTU?

[Greylond]

Question about Taxation of Trade in the OTU 3I;

I was always under the impression that the 3I guaranteed free trade between member systems and member systems were not allowed to impose tariffs or taxes on trade between systems. Is that correct? So, effectively PC Traders shouldn't have to worry about paying any tariff or tax when buying or selling trade. Is that correct for the OTU?

A related question would be; In the OTU are there any tariffs, taxes or other fees that a typical Free Trader have to pay on a regular basis?

 

[aramis]

The notion of free trade shouldn't imply non-taxation.

It does imply non-interference in 3rd parties' trade. So, the taxes apply upon crossing into/out of the extrality zone, not upon system entry/exit. And local inspections can't sieze anything not destined for them or sourced from them.

EG: I'm shipping 50 tons of FooSeed from Regina to K'Kirka via Wypoc. Wypoc can't charge me taxes on my cargo. They can't sieze my FooSeed, either, even tho it's quite illegal on Wypoc. They can't even prevent me from selling it to some other shipper in the extrality zone. The moment, however, I go to take a product sample through the gate to the city, I'm a smuggler.

 

[SpaceBadger]

Yeah, basically what aramis said. I think there are some good discussions of the details of extrality and free trade laws of the Third Imperium in both GT Far Trader and GT Starports.

 

[Greylond]

The notion of free trade shouldn't imply non-taxation.

It does imply non-interference in 3rd parties' trade. So, the taxes apply upon crossing into/out of the extrality zone, not upon system entry/exit. And local inspections can't sieze anything not destined for them or sourced from them.

Yea, I get that. But in the Trade Systems discussed in various OTU products is there a system for figuring possible import or export tariffs/taxes? I mean the various systems of hauling freight or speculative cargo seem to be designed with a particular amount of profit to be made by a Free Trader but are there tariffs/taxes already built into it? It would seem to me that if there were punitive taxes/tariffs then traders would simply avoid that planet in favor of those that don't. Or on the other hand that could lead to an adventure dealing with smuggling.

 

[SpaceBadger]

Yea, I get that. But in the Trade Systems discussed in various OTU products is there a system for figuring possible import or export tariffs/taxes? I mean the various systems of hauling freight or speculative cargo seem to be designed with a particular amount of profit to be made by a Free Trader but are there tariffs/taxes already built into it? It would seem to me that if there were punitive taxes/tariffs then traders would simply avoid that planet in favor of those that don't. Or on the other hand that could lead to an adventure dealing with smuggling.

GT Far Trader has some stuff on import/export and stuff that is merely passing through on its way to another system at pp.64-66. The suggested base tariff on imports (stuff that will cross the extrality line to be sold on this planet) is 6%, varying to as much as 10%. It also says that higher tariffs above 10% may be imposed on particular goods that particular planet wants to restrict, but pretty much leaves it to the GM to determine what those might be.

It is also up to the GM (with some consultation of Law Level and/or Control Rating) to determine what goods might be contraband.

And as you noted, it is those high tariff or contraband items that might be worthwhile to smuggle.

 

[aramis]

Yea, I get that. But in the Trade Systems discussed in various OTU products is there a system for figuring possible import or export tariffs/taxes? I mean the various systems of hauling freight or speculative cargo seem to be designed with a particular amount of profit to be made by a Free Trader but are there tariffs/taxes already built into it? It would seem to me that if there were punitive taxes/tariffs then traders would simply avoid that planet in favor of those that don't. Or on the other hand that could lead to an adventure dealing with smuggling.

The tarriffs are paid by the other end. It's a game simplification. The prices given by the trade system are what you, as the merchant, pay or receive, not of need what the seller gets nor the buyer pays overall.

Expanding my EG...

I get to K'Kirka, and get my KCr15 per Td. The guy buying it is paying some KCr20, because of a 33% import duty on FooSeeds.

If you have an event that results in taxation changes, just apply a modifier to the Actual Value Table.

 

[SpaceBadger]

I forgot to address your question about export tariffs. I guess you could impose those in situation where you think it appropriate, but I think they would be rare as it is usually to the advantage of the exporting nation to have its goods sold elsewhere to bring cash into the local economy, so they usually would not want to impede that with export tariffs.

 

[Greylond]

Thanks aramis. That's pretty much what I was thinking. The Trade System is pretty tight on profits anyway, unless the players are doing really well.

The reason I ask is my MgT campaign is starting up, one session down and we haven't used spec trade yet. I'm reading MgT's Merchant Prince* and they have a whole chapter on taxes. And as I'm reading it I just keep thinking that for the average spec cargo run it is kinda an unnecessary complication that is going to slant the profit margins away from the intent of the game design.

However, I could be wrong and just need to read some more.




*my first time GMing a MgT campaign and I'm going through all the books to figure out what I'm going to use or not use IMTU.

 

[aramis]

Thanks aramis. That's pretty much what I was thinking. The Trade System is pretty tight on profits anyway, unless the players are doing really well.

The reason I ask is my MgT campaign is starting up, one session down and we haven't used spec trade yet. I'm reading MgT's Merchant Prince* and they have a whole chapter on taxes. And as I'm reading it I just keep thinking that for the average spec cargo run it is kinda an unnecessary complication that is going to slant the profit margins away from the intent of the game design.

However, I could be wrong and just need to read some more.

*my first time GMing a MgT campaign and I'm going through all the books to figure out what I'm going to use or not use IMTU.

The MGT supplements do not, generally, have any confidence from me. You'd probably be better off ignoring most of MGT until you have a firm grasp of the hidden issues of the core (plus the non-character portions of MgT Merc and MgT HG). And there are several. The core's T&C is plenty serviceable, and has lots of room for GM add ins and RP.

 

[Greylond]

The MGT supplements do not, generally, have any confidence from me. You'd probably be better off ignoring most of MGT until you have a firm grasp of the hidden issues of the core (plus the non-character portions of MgT Merc and MgT HG). And there are several. The core's T&C is plenty serviceable, and has lots of room for GM add ins and RP.

Yea, that's partly the reason why I'm running what I am. I'm reading through things and adding as I go. For example my first session was an adventure dealing with investigation, and some action on board ship with a simple ship to ship battle at the end. In between action we did a couple of simple freight runs that were easy. I doubt that I'll have an adventure using vehicle rules for a while, however one of the characters is a Scavenger/Salvage Expert so I expect to use some of the Salvage/Junk dealing. I'm probably going to stick with the Spec Trade from the main book but was looking at Merchant Prince for some ideas and wondered how other versions of Traveller and the OTU handled Taxes/Tariffs. So, thx for the info so far, very helpful.

 

[aramis]

Yea, that's partly the reason why I'm running what I am. I'm reading through things and adding as I go. For example my first session was an adventure dealing with investigation, and some action on board ship with a simple ship to ship battle at the end. In between action we did a couple of simple freight runs that were easy. I doubt that I'll have an adventure using vehicle rules for a while, however one of the characters is a Scavenger/Salvage Expert so I expect to use some of the Salvage/Junk dealing. I'm probably going to stick with the Spec Trade from the main book but was looking at Merchant Prince for some ideas and wondered how other versions of Traveller and the OTU handled Taxes/Tariffs. So, thx for the info so far, very helpful.

I don't know about GT, but CT, MT, TNE, T4 and T20 all leave all tariffs and taxes out of the mechanics.

Ship taxes can be presumed part of Annual Maintenance and/or landing fees.

 

[SpaceBadger]

One more applicable piece I just noticed on p.5 of GT Far Trader (not so much applicable to your question of applying tariffs on the trade tables as to the general discussion of Imperial law on tariffs).

First, it says that most worlds impose import tariffs of 1-5% (contradicting the 6% figure given on p.65). The it states the following specific points of Imperial law on tariffs:

Not all member worlds are so open to outside contact, though, and Imperial law allows these worlds to erect tariff barriers to trade - with certain stipulations:

• Any tariffs must be levied equally and indiscriminately against all Imperial member worlds.
• Tariffs for nonmember worlds (except client states) must be at least twice those for members.
• Tariffs cannot be levied on goods merely passing through the system.

These laws are in place to prevent groups of worlds from creating internal trade zones that exclude other member worlds, to give nonmembers an economic incentive to join the Imperium, and to prevent interference with interstellar trade.

 

[Greylond]

Thx guys. Good info all around.