As previously reported in our publication titled " New Hampshire Prosecution Threatens Auto Export Industry," the United States government recently launched a wave of civil forfeiture claims aimed primarily at brokers who export new luxury automobiles from the United States to China. The government crackdown is largely perceived as an effort to stymie parallel channels of distribution that allow foreign purchasers to acquire automobiles at discounted prices. The government contends that this parallel distribution channel or "grey market" undercuts luxury car manufacturers' foreign profits and circumvents protective no-export policies used by manufacturers to restrict for-export sales.

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