Author Topic: Winter tires cost difference Canada vs USA, question about importing under NAFTA (Read 13972 times)

CyberNick · « **on:** October 03, 2007, 09:24:01 pm »

Winter tires cost difference Canada vs. USA, question about importing under NAFTA.

From www.TireTrends.com:

Quote

Qty   Description      Price      freight/item   Total

4   Dunlop - Winter Sport 3D    C$ 150.95   C$ 9.50      C$ 641.80
   205/60R16 92H

4   Steel Wheel - (Blk/Silver)   C$ 74.95      C$ 9.50      C$ 337.80
   New 16 x 6.5 Mazda
   67.1 5x114.3 0mm

Canadian Residents add GST (GST/HST 875342917RT0001):    C$ 58.78
Your TOTAL including taxes and shipping (for Canadian Residents):   C$ 1,038.38

From www(dot)TireRack(dot)com:

Quote

Items shipping from South Bend, Indiana

Item Description   Qty.   Price Each   Item Total

HubCaps      1   $32.00      $32.00
16 inch Style 15
(set of 4)    In Stock

16X6.5      4   $49.00      $196.00
New Steel Wheel
Black Painted

205/60HR16   4   $102.00      $408.00
Dunlop SP
Winter Sport 3D
Blackwall

   Shipping Method      Cost

UPS CANADA STANDARD      $197.62

UPS CANADA EXPRESS      $904.65

IMPORTANT INFORMATION — PLEASE READ!
CANADIAN ORDERS:
•   UPS will collect additional taxes, duty, and customs brokerage charges prior to delivery. Please contact your local UPS office for estimates of these charges.
•   Delivery may be delayed by customs procedures.

Additional Fees and Taxes
Tax:      $0.00
Excise Tax:   $0.00
State Waste
Tire Fund Fee:   $0.00
Grand Total:   $833.62

Total Canadian site price: $1,038.38
Total US site price: $833.62
Difference: $204.76*

*
•   USD to CAD is assumed as 1:1,
•   The US price includes a set of Hubcaps not found on the Canadian site.
•   The US price does not include some taxes…

I e-mailed UPS Canada regarding the estimate of the tax and brokerage charges, but I have not gotten any response yet.

In the mean time, I looked up a few local and US Tire Dealers within 100 miles from where I live and called them for quotes. I got one phone quote from Canada and 2 from the USA. One of the US quotes was total $849 with NY Sales tax included. One from local source was $1140 with 14% Ontario tax.

According to http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html :

Quote

How goods qualify under NAFTA
Your goods qualify for the U.S. duty-free rate under NAFTA if the following applies:
• the goods are for your personal use; and
• they are marked as made in the United States or Canada or not marked or labeled to indicate they were made anywhere other than in the United States or Canada.

Question: If the goods do qualify under NAFTA, does that mean no other tax at the border?

rrocket · « **Reply #1 on:** October 03, 2007, 09:31:33 pm »

Even if there is no tax, you still have to pay GST and PST. UPS brokerage fee is usually $25+

CyberNick · « **Reply #2 on:** October 03, 2007, 09:59:40 pm »

I noticed there are a few other threads on this topic... please exuse me for having started yet an other.

From reading some of the others, I found that UPS charge should be $172.30, for brokarage fee of $55 plus PST and GST.

UPS Brokarage fees:
http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html

That brings my difference down to $30 in my pocket and I don't have to worry about getting Hubcaps which could be an other $50+

rrocket · « **Reply #3 on:** October 03, 2007, 10:08:35 pm »

Talk to TireTrends. They might do something to sweeten the deal to keep your business over here....

quadzilla · « **Reply #4 on:** October 03, 2007, 10:10:31 pm »

What happens if one of the tires has a problem?

IE: Not balanced, installed backwards

I imagine you could write the company and ask for the money back that it would cost you to get it corrected...but they could also say, no.

Also, have you driven on these tires (Dunlop 3D or even the M3) before. I'm actually thinking about getting a set this winter.

mmret · « **Reply #5 on:** October 03, 2007, 10:20:55 pm »

I phoned TireRack today and they said they might be working with a different shipping co which will give them a straight up all-in shipping cost (brokerage / duty included), for a set of Wintersport M3s and alloys, will get a phone call tomorrow for the quote.

Will update.

They said they keep bugging UPS to give full disclosure of brokerage costs but they don't do it...probably some decent profit in that.

CyberNick · « **Reply #6 on:** October 03, 2007, 10:32:22 pm »

Quote from: quadzilla on October 03, 2007, 10:10:31 pm

What happens if one of the tires has a problem?

IE: Not balanced, installed backwards

I imagine you could write the company and ask for the money back that it would cost you to get it corrected...but they could also say, no.

Also, have you driven on these tires (Dunlop 3D or even the M3) before. I'm actually thinking about getting a set this winter.

I was thinking about the warranty and support issues as well. The savings may evaporate if you end up having to pay someone local to correct such "minor" problems.

This is the first time I am buying winter tires (never could afford them before) so I can't tell you how good or bad these Dunlops are, but according to TireRack, they are the top rated winter performance tire. I may end up going with something else, but I picked this as a starting point for comparison shopping as it is a top rated premium tire.

quadzilla · « **Reply #7 on:** October 03, 2007, 10:53:05 pm »

I'm trying to decide between the Dunlop 3D and Bridgestone WS-60, I think the difference is around $50/set.

I only know one other person who used the M3 last winter but never put it through any real tough conditions. Dry/wet road handling was really good though.

My current tires are a little to soft for me but offer a better deep snow ability. I'm sure if I switch we will get a lot of snow this year

echo7 · « **Reply #8 on:** October 04, 2007, 09:51:19 am »

Reply from Tirerack
_____________________________________________________________

....,

The Michelin Pilot Exalto with a V speed rating is on sale for less
money than the Exalto with a lower speed rating.

The price is $93.00 per tire for $372.00 + $74.88 for customs, duties,
brokerage fees, and taxes + $85.90 shipping for a final total of
$532.78.

If you have any further questions, you can reach me at (800) 428-8355
ext. 691. My name is Fred.

If you place your order online, please place my name on the order as we
do get credit for helping our customers.

Respectfully,

Fred,

NOW TO SUMMARIZE CANADIAN VS. US

Tire trends (buy Canadian ) $152each CA$ 698 (Shipping and taxes in)
1010tires (buy Canadian) $179each CA$ 774 (Shipping and taxes in)
Tiremag (concord on) CA$770 (taxes and installation)
Tirrack US$ 532.78

thats all folks!

jzmtl · « **Reply #9 on:** October 04, 2007, 12:34:13 pm »

For UPS shipping, when the tires are in transit call them and tell them you'll do brokerage yourself. When the tires arrive at your distribution center they'll call you. Go there to pickup some paperwork, drive down to customs and pay tax/duty, then go back to UPS to pick up tires. You save brokerage fee this way, but still gotta pay tax. Alternatively you can refuse the tires when they deliver it, and go there next day to pickup paperwork.

nan_wpg · « **Reply #10 on:** October 04, 2007, 08:32:24 pm »

You can also broker your own package, and still have UPS deliver to your door. You did afterall pay for the shipping.
I do this for larger items.

I bought a set of Blizzaks last year from the US. Mind you I am 2 hours from the border , so I drove down with my rims and bought a set. I was able to get free balancing, and saved 275 CDN, as well as 14% gst/pst on that 275.

This was well before a par dollar.

As for any problems I cant say for sure but I am led to believe that a tire will be honored anywhere, i.e regardless of where you bought your Goodyear tires, so long as you go through a Goodyear dealer you are covered.

I got a free flat repair on a Dunlop tire at a Goodyear dealer that I did not buy from.

If you live close to the US border, another option you have is to have your tires shipped to the closest UPS depot c/o yourself. When it is in they call and you pick it up.

For some reason shipping sky rockets to cross the border even if the distance is closer than a US to US point.

rrocket · « **Reply #11 on:** October 04, 2007, 08:44:15 pm »

When Import Queen bought her tires/wheels from a US company, one of the wheels/tires was out of balance. They told us to take it to a local place, have them re-balanced and they would credit her card. She went to CDN Tire, had them balanced and faxed the receipt to the tire place and they credited her card the same day....

CyberNick · « **Reply #12 on:** October 05, 2007, 09:32:57 am »

So, I took your suggestions and looked into getting the tires shipped to the nearest to my place UPS depot in the USA. Then I realised that TireRack offers FedEx as a shipping option if the items do not have leave the US border. Since the FedEx place is located in Water Town and there is a nice highway leading there, that is the option I’ll take. FedEx shipping is also a bit cheaper then UPS, but both are more then $100 less because they do not have to cross the border.

Finally, with a 400 km round trip; I could end up saving about $260 from the best price I managed to find in the Ottawa area. I am calculating that with the duties I’d have to pay in Canada upon my return, but without the expense for the gas.

I am not 100% clear however what duties would be due… I made my calc by adding PST and GST on the Grand Total, including the shipping charge from TireRack. Is that correct?

I also looked at the cheap, $95/each cast rims that TireRack offers and if I pick a set of those for my winters, I’d still have about $170 left over from what I’d pay for steel rims here.

Any ideas about how good or bad those rims might be? Assuming the $100 rims are OK, what works better for winter tires? A friend told me to stay away from el cheapo cast rims and that even with good rims it is harder to get a good seal between the tire and the rim with the casts.

Thanks!

CyberNick · « **Reply #13 on:** October 05, 2007, 09:47:01 am »

Just got a reply from my email to UPS regarding brokarage fees:

Quote

Thank you for your inquiry. Here is the estimate of the import charges, not including duty, on a shipment valued at $859 CAD ($860 USD):

COD CHARGE $4.25
This is a UPS fee, to cover the cost of collecting the funds in this
manner.
COD GST TAX $0.26
The Goods and Services Tax on the COD fee.
BOND FEE $5.85
Disbursement fees are charges for UPS having to pay duty and/or taxes to
the government on behalf of the importer.
ENTRY PREP FEE $55.58
Entry preparation charges are a fee for UPS processing the paperwork for
a package to clear Customs
BROKERAGE GST $3.69
The Goods and Services Tax on the Brokerage charges.
BROKERAGE QST $5.22
CUSTOMS GST $51.54
The Goods and Services Tax on the Canadian value of the goods.
CUSTOMS PST $68.29
The applicable Provincial Sales Tax on the Canadian value of the goods.

Estimated Total Brokerage COD Tag $194.68

I wonder what he means when he sais "not including duty"?

HeliDriver · « **Reply #14 on:** October 05, 2007, 11:03:31 am »

Quote from: CyberNick on October 05, 2007, 09:47:01 am

I wonder what he means when he sais "not including duty"?

Duties are charged by the Canadian government, so neither UPS nor TireRack are responsible for those.

If you can find out where the tires were manufcatured, you can give the Canadian Border Information Service a call, and they can tell you if your tires will be subject to Canadian duty. http://www.cbsa.gc.ca/contact/bis-sif-eng.html

Or you can look through here: http://www.cbsa.gc.ca/trade-commerce/tariff-tarif/tariff2007/01-99/tblmod-1-e.html

quadzilla · « **Reply #15 on:** October 05, 2007, 11:30:25 am »

Quote from: CyberNick on October 03, 2007, 09:24:01 pm

From www(dot)TireRack(dot)com:
   Shipping Method      Cost

UPS CANADA STANDARD      $197.62

UPS CANADA EXPRESS      $904.65

IMPORTANT INFORMATION — PLEASE READ!
CANADIAN ORDERS:
•   UPS will collect additional taxes, duty, and customs brokerage charges prior to delivery. Please contact your local UPS office for estimates of these charges.
•   Delivery may be delayed by customs procedures.

Additional Fees and Taxes
Tax:      $0.00
Excise Tax:   $0.00
State Waste
Tire Fund Fee:   $0.00
Grand Total:   $833.62

I just noticed (new RFD thread) that things have changed on their site.

IMPORTANT INFORMATION — PLEASE READ!

CANADIAN ORDERS:

* The sales taxes and duties included in this order are collected on behalf of the applicable Canadian government agencies. No additional taxes, duties, or fees will be collected by UPS Canada upon delivery of this order.
* Delivery may be delayed by customs procedures.

I also built up a set of Dunlop 3D/steel wheels and it came to $938.94 shipped to my house. Not much cheaper than getting them here.

Zombie · « **Reply #16 on:** October 05, 2007, 11:51:07 am »

I just picked up a set of Blizak winters for my car and saved at least $120 bucks the total came to (tirerack) $388 USD as opposed to (tiretrends) $500 CAN and costco wanted 650 for a set of X-Ice.
I didn't have to pay any extra for duty, I'm guessing the tires came were build in NA.

CyberNick · « **Reply #17 on:** October 05, 2007, 12:02:20 pm »

This is the tax and total on my order of Dunlop 3D / Cast wheels:

This is about the same I'd pay here for steel wheels with covers.

Excise Tax: $0.00
GST: $46.44
PST: $61.53
Duty: $48.72
Tire Disposal Fee: $12.00
Brokerage Fee: $30.00
Grand Total: $1,112.24

Here's the wheel I chose:

safristi · « **Reply #18 on:** October 05, 2007, 12:37:57 pm »

good wheeling & dealing those would look good on my Millie.......

CyberNick · « **Reply #19 on:** October 05, 2007, 12:56:49 pm »

I picked that one because it looks a little like a snow flake... apropriate for winter IMO.

I still don't know if it's more trouble then it's worth to have winter tires on cast rims tho... nobody said anything on that question...