DHI

Agreement was ratified today.
I'm surprised that this has not been discussed here yet!

Automotive trinkets from Europe will undoubtedly get cheaper.
P-cars and oem should too.

Not stoked?

tcsracing1

im pretty stoked (maybe). Does this mean i can import a 993GT2 from europe with no duty?

Also, when i import a porsche from usa to canada will i no longer have to pay 6.1% duty??

acadian_dad

Agreement in principle signed - not expected to be written as legal agreement and ratified for another 2 yrs ... Should in theory eliminate those import duties tho ...

Crazy Canuck

They may lower the duty over several years as they did with NAFTA.

But yes, in theory, our German cars and various parts should become less expensive.

DRPM

I was wondering about same after I read the news.

Do you think that the P car prices will drop due to less duty when imported from Germany to Canada or will PCNA maintain market prices and just keep that savings for themselves?

DRPM

I don't think so, as the deal is with the EU not the USA.

mhr

Actually duties are applied based on the country of origin of the item being imported regardless of where it has stopped along the way. So if the duty rate drops or disappears direct from Germany then the duty when importing German cars or parts from any other country including USA will drop or disappear.

Boxster dude

If the "Free" Trade deal is anything like the Can-US one prices may drop, but don't expect much.
I just bought some peddle covers/extensions from the US, 45$ on duties and taxes for a $250 item.
I would still buy another p-car trade deal or not

mhr

Firstly the country of origin determins the duty rate so if the pedal covers are not made in the USA or Mexico you are paying the duties based on wherever they were made and nafta does not apply.

Also important is the distinction between duties and taxes and brokerage fees.

Regardless of the duty rate you will be charged the sales tax (about 15% in quebec) and the company who clears the package at the border will normally charge a brokerage fee even if the goods are duty free.

So in your example $37 is sales tax and the $7 may be brokerage fees. Neither of which will change with free trade.

Boxster dude

Mhr - good points - sure hope PCNA doesn't pocket the reductions.

DHI

This is KEY.

Would be nice to purchase say... a racing suit or a seat originating from EU but from a US vendor and save the 6% or applicable tariff.

Anyone know for sure?

Gregster

I do know that the likely hood of being charged duty on items is rather low if you bring them across from border from let's say a freeport or mailbox serve. I've been asked a couple times where the items were made and I replied "I'm not really sure". The one time they did check was on tires which were Made In Germany but they didn't charge duty. I have a Nexus card so I am honest with CBSA, I see too many people not declaring items only to get busted in the end.

Now this might be off topic but as I mention to everyone who does have a mailbox in the USA and lives in Quebec, cross through Ontario and you'll only pay 5% GST on items purchased. You don't pay QST, same thing for Ontario residents crossing into Quebec no PST ... There is actually a mailbox service in Massena NY for us Montreal folks. http://shiptotheborder.com/massena-n...uilding-supply.

Read the tarrif guide and I suggest carrying a copy of it in the glove box just in case. http://www.cbsa-asfc.gc.ca/publicati.../e604-eng.html

There is more comprehensive guide out there too.

DHI

Good info.
Didn't realize how close an Ontario Kinek point actual was.
Will definitely consider this for bigger ticket items.

mhr

Last time I crossed at Champlain after getting a bunch of parts the agent actually checked everything and charged me duty on everything marked made in Germany which was almost everything.

Never thought about the Ontario idea thanks.

tcsracing1

the duty applies to origin of manufacture.

I am curious if this new free trade deal includes the importation of used (aside from new) european automobiles to canada?