Post tariff world

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concours said:
The newsletter from A/N is crystal clear to me:
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It is not clear to me, since the exporter, Andover, has no power to swallow the tariffs an importer (you, I, Greg Marsh, etc) pays to the taxing authority (US Customs in this case), short of offering a 10% discount to US-based customers. The newsletter doesn't say the "fee to all orders dispatched to North America," is to cover said tariffs. Perhaps it is, but perhaps it isn't. Perhaps Joe is already recognizing Canada as the 51st state, Mexico as the 52nd, and Greenland as the 53rd.

A smart capitalist in the States that has Andover parts in stock, raises his/her retail prices by 7%, remains competitive with newly imported Andover prices, and everyone wins. Oh yea. Except for the end consumer.

johnm said:
But if for example the GST due is less than $50 then customs generally won't bother to collect it because the paperwork cost is more than $50.
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Just checked my checkbook (thanks, yearly income tax time!) and I cut a check for $3 last June to even up a tariff bill with a courier, InXpress.
 
t ingermanson said:
It is not clear to me, since the exporter, Andover, has no power to swallow the tariffs an importer (you, I, Greg Marsh, etc) pays to the taxing authority (US Customs in this case), short of offering a 10% discount to US-based customers. The newsletter doesn't say the "fee to all orders dispatched to North America," is to cover said tariffs. Perhaps it is, but perhaps it isn't. Perhaps Joe is already recognizing Canada as the 51st state, Mexico as the 52nd, and Greenland as the 53rd.

A smart capitalist in the States that has Andover parts in stock, raises his/her retail prices by 7%, remains competitive with newly imported Andover prices, and everyone wins. Oh yea. Except for the end consumer.



Just checked my checkbook (thanks, yearly income tax time!) and I cut a check for $3 last June to even up a tariff bill with a courier, InXpress.
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Note the couriers tend to lump all their added fees into a taxes/duty/brokerage charge and may not show the actual alotments unless you request it. So your fee paid might just be a brokerage fee, to present the paperwork to border control.
 
Trade fairness? Currency exchange rates should be a factor of the equation too as trade fairness is not a one-way street. I hope AN recognizes Canada and Mexico and the USA as 3 different trade relationships with the UK and scrutinizes their own wording in the newsletter
 
Tornado said:
Note the couriers tend to lump all their added fees into a taxes/duty/brokerage charge and may not show the actual alotments unless you request it. So your fee paid might just be a brokerage fee, to present the paperwork to border control.
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Of course. Sometimes I get surprises with large bills and sometimes small bills, whose reasons for being are always opaque. And,,, if the couriers let $3 slide from all their accounts, they'd be in the poorhouse, etc, but my example was illustrate to the "Ima get mine" world that exists in the US, rather than the "round up-round down" prices in NZ, the most pragmatic place I've ever had the pleasure to spend time in.
 
Tornado said:
We have a specific tariff code exemption on classic automotive parts imported into Canada.
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You are right.

I focused on the headline. USA


CERTAINLY, anyone doing international trade knows that USA is a country located in the continent of North America.

I still do not understand the fierce argument by the OP about WHO collects the duty.

Only if it comes to pass a buyer is assessed TWICE, will there be a bonafide gripe. In which case the seller will be held accountable.
 
When neoliberalism was first introduced into Australia, I was working in defence manufacturing. I knew then the effect it would have on our businesses. I also knew the reaction would be strange. The previous system of tariffs and subsidies was very cumbersome. Trying to return to it is probably impossible. However some people never knew the role which international and national standards play in industry. In Australia, our laws don't call them up directly, but they provide the basis of many laws. If we work to the standards, we usually get legal compliance. Our trades' people are trained to the standards. And inspectors work to them.
 
When neoliberalism was introduced, I immediately formed the opinion that it would be irreversible. Caring about the millions of starving people in Asian countries and Africa is probably 'woke', but it might be 'for the common good' - ethical. Life is probably not a zero-sum game. Team-work produces bigger gains. If you read international standards - there is a logic behind them.
 
MexicoMike said:
I wonder if the company would stay in business if "North America" quit buying their products...;)
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I really don’t quite get what the problem is here. As far as I can see, AN are simply going to be collecting the tariff from the US customer to pay the US government.
It’s another way of raising taxes, but only for US consumers.
 
US duties can be paid by the seller or importer (I think). AN may be doing us a favor. If you leave it to the delivery companies they will charge for the "service" of paying the duties. For instance DHL charges $17 to pay them for you. If pre-paid they would be cut out. I hope that is the case.

$ 500 of parts + 10% = $ 550 + $17 = $ 567 = 13.4%
$1000 of parts + 10% = $1100 + $17 = $1117 = 11.7%
$5000 of parts + 10% = $5500 + $17 = $5517 = 10.3%

With the shipping costs that are also included in the sale and therefore duties - oh boy.

My last small AN order:

$683.41 of parts + $70.07 of shipping = $753.48 + 10% = $828.83 + $17 = $845.83 = 23.77% added to the parts cost.
 
MexicoMike said:
I wonder if the company would stay in business if "North America" quit buying their products...;)
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That seems to be what is intended, so US riders buy US made Harleys and Indians. I'd guess they will have to be a little more expensive though, to pass on the higher cost of their foreign components (electrics, chips, tyres, batteries...).

Hopefully, if anyone decides to give their Commandos up, they will be exported, so they still get used.

Knowing AN as a happy customer, I'm pretty sure they are simply trying to make the import of their parts as easy as possible. Hopefully, they'll chime in, to confirm.

I'm just hoping the tit for tat process stops here and doesn't get any further out of control. The US has been a good friend and earned some patience.
 
Just to put things into perspective for those of you in the USofA being worried about the exorbitant increases you’ll now have to pay for AN parts…

You don’t pay VAT on parts purchased from Andover. Brits and those buying from within the EU pay 20% VAT on the total order costs (ie the cost of the parts and the shipping).

So whilst I understand it’s a bit of a shock to your system, we’ve been paying these rates all along !

And we pay it on parts bought from the US. We pay for the parts, and the shipping, and the import duty and then VAT on the total order costs.
 
Fast Eddie said:
Just to put things into perspective for those of you in the USofA being worried about the exorbitant increases you’ll now have to pay for AN parts…

You don’t pay VAT on parts purchased from Andover. Brits and those buying from within the EU pay 20% VAT on the total order costs (ie the cost of the parts and the shipping).

So whilst I understand it’s a bit of a shock to your system, we’ve been paying these rates all along !

And we pay it on parts bought from the US. We pay for the parts, and the shipping, and the import duty and then VAT on the total order costs.
Click to expand...
Actually, those of us lucky to live in the EU don’t pay UK VAT, we get to pay the local VAT, in my case MOMS at 25% instead.
Brixit, the gift that keeps giving :-)
 
Fast Eddie said:
Just to put things into perspective for those of you in the USofA being worried about the exorbitant increases you’ll now have to pay for AN parts…

You don’t pay VAT on parts purchased from Andover. Brits and those buying from within the EU pay 20% VAT on the total order costs (ie the cost of the parts and the shipping).

So whilst I understand it’s a bit of a shock to your system, we’ve been paying these rates all along !

And we pay it on parts bought from the US. We pay for the parts, and the shipping, and the import duty and then VAT on the total order costs.
Click to expand...
I understand but what would a 2kg order cost in shipping?

Of course you are completely screwed when you buy from the US.
 
Remember the mess created that Brexit caused for us EU customers. Now most of the hassle had disappeared, as UK companies has found ways to make things work smoothly. The trouble of documentation needed is simply embedded in packaging and freight cost. Some companies like Draganfly even collect our local VAT, sending it to our tax authorities. Resulting in fast delivery.
The current US tariff mess has to be handled by AN. So the extra paperwork costs has to be covered by US customers. If AN only had raised freight costs, you had not noticed.
 
MexicoMike said:
I wonder if the company would stay in business if "North America" quit buying their products...;)
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Depends on how big part of their sales goes to North America. And if the spare parts is made anywhere else and at what price. You will always need spares to keep your Norton running.
 
jan nelder said:
Andover have just said in their online newsletter that orders from the USA are now to be ONLY via the website. And they are adding the tariff to their prices.
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So AN is collecting the tariff on behalf of the US Customs and Border Protection (CBP)? I guess this is offered as a service not to delay processing with the customs. Still, some US states charge consumer tax which isn't collected by AN, as far as I know.

- Knut
 
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