Pickup in US or Canada -- advice needed

medora66 · 02-22-2012, 12:41 PM

Hi all,

We are working out the last specifics of our delivery and we suddenly have an unexpected option to take delivery about 45 minutes away from our house in the US. We had planned to pick up in Windsor, Ontario, a round trip of about 450 miles (plus some good BBQ and Michigan microbrew) in Detroit.

The driver will not charge any additional to bring it across the border and closer to home, but Tammy tells us that this will end up costing us an additional $400 in fees to get the trailer imported at the border.

The delivery costs are already pretty high (higher than we had hoped).

We are torn as to whether it's worth $400 to avoid a trip east and the uncertainties of the actual delivery time, as well any possible hassles at the border. If we get it delivered near us, we could literally run to pick it up with two hours' notice.

How have your experiences been getting your Escapes sprung into the US? Hassle? And would our tax liability be any different if we took possession here versus Canada?

~e

fudge_brownie · 02-22-2012, 05:41 PM

Those brokerage fees can be a pain, they were one reason the three of us opted for Sault Ste Marie ONT. One of our party was from the Toronto area so it did not make much difference to Bob one way or the other. The SOO was equidistant for all of us. Bob actually drove his new trailer across Michigan on the way home to Toronto.

Border crossing was painless, the agent wanted to see the inside and asked to open the bathroom door. Making sure we did not have any hidden passengers I guess. The paperwork provided by Tammy was all the border agent needed. And of course, passports are needed.

Taxes are going to get you either or any method you use. Because the unit was purchased for eventual USA delivery there were none of the GST, PST and similar Canadian taxes. This occurred even though the actual delivery was in Canada. This is important as you do not have to apply for any Canadian tax refunds.

However, the State of Michigan will get their share, I would expect when you register and obtain plates. Not sure what your local sales tax is nor if there are other fees for license, title and talking to a human at the counter.

In all this was the easiest portion of the entire process. Calculating the exchange rate could have caught us up as I did not track the rate for each of our payments. With the exchange a bit in the favor of the loonie it is to your advantage to get it priced in US dollars. I think the hardest part of the entire purchase was deciding to do it and then finding a method of transferring the money. I see that transfer was an even bigger issue for you.

For a 450 mile drive the saving of $400 (now is that Canadian or US dollars) is in my mind a pretty quick payback. I do not see any issues with what you are planning. My guess is the biggest issue will be the line at the international border.

medora · 02-22-2012, 07:32 PM

Paul, that's hugely helpful, thanks -- after real difficulty with XE Trade/payment we're feeling snakebit and didn't want trouble at the border, so it's good to know that would likely be smooth.

Tammy tells us we will be charged $200 for taxes on the delivery IF we take it in Canada -- but apparently this is waived if we take delivery in the US. That's great -- but in the US we're hit with the brokerage fees. At this point the difference looks like about $200 more for local delivery (with costs clarified after an email from Tammy this afternoon), so I guess the big question is whether we spend the $200 on beer and BBQ in Detroit, or whether we give it to the brokerage firm

Thanks again,

~e

strawbarry · 02-22-2012, 07:37 PM

I am curious why brokerage fees are charged for US delivery.

medora · 02-22-2012, 07:42 PM

Excellent question. Truthfully I'm not clear on this but it has something to do with paperwork that needs to be filed at the border. Since the owner is not there to do it, a third party has to, and apparently this third party is NOT the truck driver. The way Tammy made it sound when she emailed us it seemed as though this might third party actually be someone in the Canadian customs office ... as in Canadian govt ... but I'm not sure. So it may be incorrect for me to be referring to a "firm."

If anyone knows something about this, I'm really curious too.

fudge_brownie · 02-22-2012, 07:49 PM

I would be curious about the $200 Canadian taxes, I was not aware of this on our delivery. It could be it was built into the price, not itemized, paid by Escape or a new tax. Just what is that tax for?

medora · 02-22-2012, 07:52 PM

Funny you should ask that, Paul ... I was just about to email Tammy to inquire. Will let y'all know here what she says.

gbaglo · 02-22-2012, 08:18 PM

I suspect it is GST ( Goods and Services Tax ) on the cost of delivery. You escape that tax on the trailer itself because the destination is U.S.A. But, delivery is not.

baglo

medora · 02-22-2012, 08:20 PM

Makes sense. If Tammy says differently I'll post, but if not consider that The Word.

medora · 02-23-2012, 02:27 PM

Tammy confirmed the aforementioned $200 tax on delivery is a combo of GST and provincial taxes ... but if the trailer is being imported into the US (regardless of whether it's delivered in the US or in Ontario), we aren't liable for that. So, the $200 doesn't apply in our case.

I'm glad I asked. Thanks, guys

You may also like: