Selling Vehicle Wraps in Canada

[Spencer McMurtry]

Hi,

I have a client located in Canada who is interested in some Vehicle Wraps (I am located in the United States). Do you have any experience with selling Signs / Graphics to another country in particular Canada?

Do you have any experience on taxes and tariff's?
What I have found is there is a 35% Tariff on your invoice price. Plus two tax fees one for Federal Tax (5% fee) and one for Province Tax (5-10% fee).

Is there anyway around paying this high Tariff fee? Would you still have to pay the Tariff fee if the graphics where drop shipped from Canada?

Thanks for your feedback,
Spencer

 

[royster13]

Hi,

I have a client located in Canada who is interested in some Vehicle Wraps (I am located in the United States). Do you have any experience with selling Signs / Graphics to another country in particular Canada?

Do you have any experience on taxes and tariff's?
What I have found is there is a 35% Tariff on your invoice price. Plus two tax fees one for Federal Tax (5% fee) and one for Province Tax (5-10% fee).

Is there anyway around paying this high Tariff fee? Would you still have to pay the Tariff fee if the graphics where drop shipped from Canada?

Thanks for your feedback,
Spencer

There would be no tariff on vehicle graphics so long as they are Made in the USA and a "NAFTA Certificate" is prepared....Taxes on the other hand must be paid by your client whether or not you source in Canada or ship from the US...Not all provinces have Provincial Sale Tax.....Some have Harmonized Sales Tax of 12% to 15%.....

What can sometimes be an issue on shipments from the US to Canada, is the "brokerage charges" levied by the courier....http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html

 

[Spencer McMurtry]

There would be no tariff on vehicle graphics so long as they are Made in the USA and a "NAFTA Certificate" is prepared....Taxes on the other hand must be paid by your client whether or not you source in Canada or ship from the US...Not all provinces have Provincial Sale Tax.....Some have Harmonized Sales Tax of 12% to 15%.....

What can sometimes be an issue on shipments from the US to Canada, is the "brokerage charges" levied by the courier....http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html

Hello Royce,

Thanks for the fast response and valuable feedback. I am glad to hear there is no Tariff!

When filling out the "NAFTA Certificate" Do you know what Tariff classification number would be for vehicle graphics? After researching export.gov I came up with 49119900 which is: "printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans" is that correct?

 

[graphicwarning]

I've always had good luck with the classification code 3926.90.30.00 described as "Signs - letters and numerals, plastics and other materials" for my rolled vinyls and laminates I import.

 

[Spencer McMurtry]

UPDATE:

Thanks to all of you and after talking with the USA trade center I have found out (so far) is there are no duties or tariffs when shipping from the USA to Canada. The only taxes will be a 5% local tax and will be paid by the Canada buyer to the Canada Government.

What I have found out that you need to include in the shipment is:
1. Commercial Invoice
2. NAFTA Certificate
You will need to make 3 copies of each, one for you to keep and 2 to go in the shipment.

I will keep you updated if this job moves forward and let you know additional fees I run into with shipping.

Thanks again,
Spencer

 

[royster13]

UPDATE:

Thanks to all of you and after talking with the USA trade center I have found out (so far) is there are no duties or tariffs when shipping from the USA to Canada. The only taxes will be a 5% local tax and will be paid by the Canada buyer to the Canada Government.

No duty only applies to NAFTA friendly items....In this case you should be good....But that would not be the case if you were shipping imported goods from the US to Canada....