Escape - USD and CAD Pricing/Payments

[gbaglo]

If you took delivery and ownership in Canada then you would pay GST and PST which currently is 12% in BC so on a $40,000 trailer you would pay $4,800 cdn.
Barry

I'd like to agree, but the problem is, if you took delivery in Canada and paid that tax, you would fill in a form to have that tax returned to you when you prove it was exported.

And, then you would pay the taxes required by whatever state you live in.

 

[barry-ESC]

I'd like to agree, but the problem is, if you took delivery in Canada and paid that tax, you would fill in a form to have that tax returned to you when you prove it was exported.

And, then you would pay the taxes required by whatever state you live in.

Absolutely true, but you would have to export it yourself, do the paperwork yourself and apply for the tax refund yourself. Whether the extra work and hassle to do that to pay in Canadian dollars is worth the while I guess is up to the American buyer. Escape is taking this out of the equation for the US buyer but they want their cake and also want to eat it too!
Barry

 

[JimW]

How much does ETI charge customers from the United States for the services of an employee(s) to do the paperwork and a vehicle to spend the better part of a day to deliver a trailer across the border? I guess my question is in relation to a Canadian customer that buys it and drives off spending those same Canadian dollars? If it’s zero then isn’t the cost of those services coming out of the CAD profit? And if so how much does ETI need in revenue to off-set that cost and return the same profit. Seems like USD for US customers and CAD for Canadian customers is a fair deal.

 

[Rossue]

We didn't pay anything for ETI to export the trailer; however after their VIN debacle in 2016 and after they started using a broker to export ETI did begin to charge. What it is now maybe someone who recently paid can say.

 

[Centex]

We didn't pay anything for ETI to export the trailer; however after their VIN debacle in 2016 and after they started using a broker to export ETI did begin to charge. What it is now maybe someone who recently paid can say.

The line-item on the USD-denominated quote build sheet I'm currently developing with ETI is:

"Importation Fees (US Customers Only): 160.00"

 

[Bea]

A perilous time to penalize US customers

In April 2019, we paid $200 CAD for an "Importation Fee" and an additional $500 CAD "Tariff Surcharge" (as US citizens officially taking possession of the trailer in Sumas WA after doing our orientation in Chilliwack). We believe these fees were only charged to US customers (marked in red on our build sheet 'US CUSTOMERS ONLY' ). They covered the cost of the paperwork and importing it across the border. Paying these extra fees seemed fair and appropriate.

Jwinfrey, you say it "seems like USD for US customers and CAD for Canadian customers is a fair deal." This would only be fair if ETI used a fair exchange rate.

If an American and Canadian went to Chilliwack today and ordered a base E21, the Canadian would be asked to pay $36,245 CAD, but the American would be asked to pay the equivalent of $40,458 CAD. Many US customers would not consider it fair to charge US citizens an equivalent of $4,213 CAD extra for the exact same product.

I fear for the reputational damage that will be done to ETI for using an unfair exchange rate. Some American customers won't care, but many others will. Given COVID-19's nasty impact on the economy, this seems a particularly perilous time to start penalizing Americans. - Bea

 

[Centex]

In April 2019, ..... and an additional $500 CAD "Tariff Surcharge" (as US citizens officially taking possession of the trailer in Sumas WA after doing our orientation in Chilliwack). ....

Interesting, a "Tariff Surcharge" has not been mentioned in my discussions to date; I'll need to ask about that specifically.

I suppose a Tariff is the sort of thing that might be imposed or withdrawn by the US Gov't at any time, beyond ETI's control, and would presumably be tied to US laws in effect on the actual date of importing.

 

[Rossue]

And- was there actually a tariff in place or/was is it really a garbage surcharge. Nickel & dime X....?

 

[KirkB]

And- was there actually a tariff in place or/was is it really a garbage surcharge. Nickel & dime X....?

During the recent renegotiation of the North American trade agreement between Canada, USA, and Mexico, many tariffs were both threatened and implemented by the USA, causing Canada to retaliate.


https://en.wikipedia.org/wiki/Trump_tariffs#Canadian

 

[cpaharley2008]

Yep, $200 import fee and $250 tariff surcharge for our April 2019 trailer. But these fees are a lot cheaper than if you import the trailer yourself, there is a federal excise tax equal to 6% (similar to the GST and PST paid by the Canadians) This excise tax is waived if you pay a local state sales tax on registering. Either way the taxes are paid and are a cost of doing business as well as purchasing. If you do not want to pay them, do not buy. Your choice.

 

[Jim Bennett]

I'd like to agree, but the problem is, if you took delivery in Canada and paid that tax, you would fill in a form to have that tax returned to you when you prove it was exported.

For Canadians, Escape only charges taxes due in their part of Canada I believe. For me in Alberta where there is no PST, they only charged me the 5% GST, no PST at all. This is the same for any product I have purchased in Canada, but outside and being shipped to Alberta.

Not positive about US purchasers, I assumed they were not charged any Canadian sales tax at all, but this would not be the first time I was thinking wrong.

If I make a purchase in another province where they do charge a provincial tax, then I do have to submit a tax credit form like you mention.

 

[barry-ESC]

Not positive about US purchasers, I assumed they were not charged any Canadian sales tax at all, but this would not be the first time I was thinking wrong.

If directly exported by Escape no Canadian sales tax would be charged by ETI because the owner will take possession outside of Canada. I think this is the loophole that ETI uses to charge US customers in US funds only as the trailer, technically, is not sold in Canada.

I believe, and someone correct me if I'm wrong, for a large purchase in Canada where something is registered in your name your are charged the sales tax of your home province (where it is being registered). If I were to buy a vehicle in Alberta (but not living there) and put temporary plates on it to drive to BC I would only pay GST at the time of purchase, but when I register it in BC to get BC plates then I would be required to pay BC PST at the time of registration. If I wanted to put Alberta plates on it I would have to supply an address in Alberta to register it and therefore only pay GST. But if I drove that aforementioned vehicle to BC I can only use the Alberta plates for 90 days before I would have to register the vehicle in BC. If I couldn't prove that I actually lived in Alberta prior to purchasing the vehicle I would be charged the BC PST, because I didn't purchase the vehicle to use there.
Barry

 

[Rossue]

Yep, $200 import fee and $250 tariff surcharge for our April 2019 trailer

U.S. stopped tariffs on steel and aluminum products(weren't they the only ones) from Canada on May 20, 2019. Does ETI currently assess a surcharge and is it justified? That number is rather insignificant compared to the exchange rate difference, however this could be a factor for some in deciding if they do want to do business with ETI.

 

[sclifrickson]

U.S. stopped tariffs on steel and aluminum products(weren't they the only ones) from Canada on May 20, 2019. Does ETI currently assess a surcharge and is it justified? That number is rather insignificant compared to the exchange rate difference, however this could be a factor for some in deciding if they do want to do business with ETI.

No idea whether ETI is still charging a tariff surcharge. Someone currently buying should be able to answer that. My understanding was that they started the surcharge to offset increases in their materials costs, not to offset expenses for importing the finished product into the US.

 

[rbryan4]

U.S. stopped tariffs on steel and aluminum products(weren't they the only ones) from Canada on May 20, 2019. Does ETI currently assess a surcharge and is it justified? That number is rather insignificant compared to the exchange rate difference, however this could be a factor for some in deciding if they do want to do business with ETI.

Who's to say what's "justified"? If their material costs went up due to tariffs, perhaps. But I don't know enough to speak definitively about it.

Fees aside though, I think it a bad practice to charge, in effect, two different prices for the same product.

 

[Fiberglass Fan]

Sorry to disagree with you Chris, but over the past 10 years I have seen the rate fluctuate .70 to ,95 meanwhile Escape has grown over the same period. Perhaps once you purchase or over time you may change your thoughts.

10: years ago back in the spring of 2010 the Canadian dollar was actually worth more than the US$

 

[vermilye]

10: years ago back in the spring of 2010 the Canadian dollar was actually worth more than the US$

Yea, that is when I bought my 17. Paid a 1% premium... Definitely made up for it in 2017 with the purchase of a 21.

 

[Chowdagirl]

True. Thank-you.

 

[richling]

ETI business

Interesting forum topic..... How ETI runs their business is up to them. Profit is really important for any business remain viable. How each business chooses to do that is up to them and I'm sure ETI evaluates how their pricing may impact sales related to competitors.

I will be in the market for a nice fiberglass trailer in about 15 months. I'll also be evaluating all of the options. Maybe ETI will still be my top choice.

 

[cpaharley2008]

Welcome Rich, to our Escape world. If you have not seen one, contact the factory and they will give you names of an owner near you.