Tariff issues

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nobbie48

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While this may go political fast, I'm posting it in RR as a public service announcement to anyone bring in anything substantial from the USA.

Mods, if this goes name calling political feel free to lock it but leave it in RR. I would hate to see a dream bike go the same route.


In short, a guy in Winnipeg bought the car of his dreams from a US company 1968 Charger RT for $98,000 USD ($141,600 CDN). He went over the things being hit and didn't find anything that would suggest a tariff. When the car arrived at the border customs presented him with a bill for over $46,000.

On another part of the tariff regulations it specifically states the tariff.

The seller doesn't want the car back and it's presently stored in North Dakota until the issue gets sorted out.
 
He needs a tax lawyer . And maybe a trade lawyer. The border guys right now don’t know up from down and it’s not thier fault . They are getting horrible direction from Ottawa .
I am importing products weekly from the US for which there is NO Canadian alternative . He will need to arrange a certificate of remission. It will cost him a ton in legal fees . I do this daily right now.


Sent from my iPhone using GTAMotorcycle.com
 
Taxes alone on that purchase price are ~$21K based on Ontario, a little less in Manitoba I think. Here in Ontario at least you pay the federal portion at the border on arrival, and the provincial portion once you license it. Not sure what Manitoba's regs are on that, perhaps the provincial is due at the border as well, so the full hit.

There really shouldn't be duty on a vehicle like which was made in North America, so there's definitely a question where the other $25K came from. I concur with @crankcall, he needs to consult someone who knows what they're doing right now given the chaos - I'd start with a customs broker myself as they'd be the best informed. Beyond that, a tax lawyer for sure if the broker can't handle things. Chances are this was just a border agent who is confused with the chaos and didn't process things properly.
 
The guy should just rent a storage unit in West Dakota or wherever and store the car there until this whole tariff thing blows over. Second generation Chargers are highly desirable right now even with the classic car market softening. If he truly has a prime example of a ‘68 Charger RT he will be able to sell it at respectable profit in 2 years or at least break even. The people that buy that level of collector car aren’t as affected by the economy as much as you or I. Just check out Legendary Motorcars website and you’ll see what I mean. I Think they’re located in Caledon. They’re kind of in a jam though as all their cars are listed in US dollars.Most of their buyers are from south of the border and may also be subject to tarriffs.
 
Unrelated and not political.
'Buddy imported an airhead, here's a pic of me sitting in my truck outside the Customs office in Sarnia while he's inside doing paperwork and paying $100 air conditioning tax on his used motorcycle.
So yeah, sometimes CBSA make mistakes.

1000010842.jpg
 
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Doesn’t every Motorcycle have air-conditioning? Lol.
 
Bobo said:
The guy should just rent a storage unit in West Dakota or wherever and store the car there until this whole tariff thing blows over. Second generation Chargers are highly desirable right now even with the classic car market softening. If he truly has a prime example of a ‘68 Charger RT he will be able to sell it at respectable profit in 2 years or at least break even. The people that buy that level of collector car aren’t as affected by the economy as much as you or I. Just check out Legendary Motorcars website and you’ll see what I mean. I Think they’re located in Caledon. They’re kind of in a jam though as all their cars are listed in US dollars.Most of their buyers are from south of the border and may also be subject to tarriffs.
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They also buy a lot out of the US and bring them back.

The above vid was posted in a classic car forum I'm on and numerous people posted about recently bringing home purchased vehicles from the US with no issues so it's sounding like a maybe or maybe not kinda thing at the border.
 
Hardwrkr13 said:
They also buy a lot out of the US and bring them back.

The above vid was posted in a classic car forum I'm on and numerous people posted about recently bringing home purchased vehicles from the US with no issues so it's sounding like a maybe or maybe not kinda thing at the border.
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Back in the days of early perforation rust western cars sold at a premium because they use less salt there. Western used car lots would buy Ontario cars and ship them west for the extra profit. Ontario buyers would buy them at premium prices and ship them back thinking they were getting a better car.
 
JZ67 said:
Something isn't adding up. 25% of $141k is $35k. Hasn't there always been duties on used vehicles crossing the border? Is this 25% + the normal duties? If so, the reporting is misleading but what are we to expect?
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Where does the HST get calculated? Taxes on tariffs or tariffs on taxes?
 
GreyGhost said:
Recursive Calculation?

100 Tariff=Price*0.25
200 HST=(Price+Tariff)*0.13
300 Price=Price+Tariff+HST
400 Goto 100

Better pay fast or the tax/tariff payable will go to infinity.
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Assuming the best situation as it stands

On landed cost, adjusted to Canadian dollar value of $141,000

Tariff @ 25% $32250

HST on landed value @ 5% $7050

Sub Total $39300

Possibly a Manitoba provincial tax @10% 14,100

Grand total in taxes and taxes $53400

Total outlay of $194,400 plus transportation fees, close to double the USD price. I'm sure there are a few miscellaneous bits on top. At those prices I'd want to see it with my own eyes before writing a cheque so a travel cost.

I tried to do a casual search and while the CBC news clip points out the issue "9966 item 8", going in as a layperson had me lost. Some of the wording said "Surtax" which, to me means tariff on top of tax.

As stated, get a true cost from customs before committing. How long that commitment would be valid is subject to the whims of an orangutang.
 
I have had Canadian customs charge me tax on US shipping. I had car seats shipped to a depot in Buffalo. I went over to pick them up and declared them at the border... they insisted on charging me tax not just on the seats but also on the shipping within the US!
 
If I'm interpreting this correctly, luxury tax would be applicable on that Charger since it was never registered in Canada before:

Subject Vehicles Under the Select Luxury Items Tax Act - Canada.ca

www.canada.ca www.canada.ca

Exemption on sales of previously registered subject vehicles​

In most cases, the luxury tax will not apply to sales of subject vehicles priced above the price threshold that have been previously registered with the Government of Canada or a province, as set out in subsection 19(2). However, the luxury tax will apply if the subject vehicle was registered only because of the sale and has never otherwise been registered with the Government of Canada or a province.

A subject vehicle is considered registered with a government if it is registered with or licensed by that government for the purposes of permitting that subject vehicle to travel on public roads within the jurisdiction of that government.

The luxury tax will also apply to sales of subject vehicles priced above the price threshold if a vendor is Her Majesty in right of Canada or a province, an agent of Her Majesty in right of Canada or a province, or an Indigenous governing body and the vendor imported the subject vehicle without the luxury tax applying. When the vendor later sells the subject vehicle to a purchaser, the purchaser will be liable for the luxury tax in accordance with subsection 18(2) even if the subject vehicle has been previously registered.

Example​


A dealership that is a registered vendor of subject vehicles sells a used subject vehicle priced above $100,000. The subject vehicle was previously registered with the province of Alberta.

The luxury tax will not apply to this sale as the used subject vehicle has been previously registered with the Government of Alberta.
 
backmarkerducati said:
I have had Canadian customs charge me tax on US shipping. I had car seats shipped to a depot in Buffalo. I went over to pick them up and declared them at the border... they insisted on charging me tax not just on the seats but also on the shipping within the US!
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What's next? Did you buy gas, get air for your tires, eat anything?

There's a federal government video explaining changes to taxes for seniors and having to remit sooner in some cases. It has to do with cash flow.

When you let a bloody moron run the country for eight years, expecting the budget to take care of itself, what do you expect?
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