model expo not shipping to Canada?

[hamilton]

Hi all:

 

I had decided to purchase the 1:48 Phantom pilot boat from Model Shipways but discovered that Model Expo is no longer shipping to Canada because of tariffs.....this decision makes no sense since there is, as I understand, a de minimis exemption for shipments of under 800$....happy not to give ME my money if they're not willing to recognise these exemptions or make exceptions for those of us who may be willing to pay more regardless of the tariffs.....ship modelling is hard enough without politics getting in the way.....

hamilton

[Snug Harbor Johnny]

  Apparently things get a little complicated with paperwork and Canada's thresholds are different than those of the U.S.  As far as Canada is concerned, they have what is referred to as CAD thresholds, which stands for "CAnadian Dollars" - so with the Canadian dollar now representing only about 73  U.S. cents, the CAD 150 threshold for Canadian duties would apply to courier shipments of a Model Expo kit exceeding $109.50 - and many kits are above that amount.

  However, "commercial" shipments are subject to a CAD 40, which is only  $29.2 ... and it is not clear which limit may apply in the case of model Expo.  But even goods now valued between the CAD 40 and CAD 150 points are STILL subject to: Goods and Services Tax (GST), Harmonized Sales Tax (HST), or Provincial Sales Tax (PST).  Any kit now over $109.50 (CAD 150) is subject to BOTH duties, GST, HST and PST.

  'Sound complicated?  Trade deals are still in a state of flux, so it is no surprise that MANY companies are staying on the sidelines for now.

Edited Wednesday at 10:10 AM by Snug Harbor Johnny

[hamilton]

In BC we only pay GST and PST....12%. HST is in place in some provinces (Ontario, e.g.) as a slightly lower combination of these two other sales taxes....These costs are not my problem, though - for the cost of this particular kit, which is on the cheap side at $127 USD, I'll shoulder them. The issue is I can't even choose to this since I can't even make an order to Canada at all....Model Expo has taken my choice away....which I don't appreciate....

 

I do get why a US business would take this route in the current environment - in fact, I imagine it's tricky for many businesses to look too far into the future right now if they rely to some degree on foreign markets - but I think it should be left to the consumer to decide whether they are willing to shoulder the extra costs, rather than cut out a whole national market for a product that is already relatively low-demand....I'm certain that there are Canadian modellers (like myself) who would be willing to absorb the extra costs at least on lower-cost or medium-cost models (the current sale at M-E would still, even with duties and taxes, bring the cost lower or maybe about even with the non-sale price of the kit), rather than turn to what is undoubtedly an even more expensive source - British and European sellers and manufacturers....

 

Anyways, a high-barrier hobby just got a little less accessible - at least above the 49th parallel.....can't say I'm very happy about it.....good thing I have a decent back log of unstarted kits....at my current construction speed it'll probably be more than enough to ride out the current period of trade uncertainty!

hamilton

[palmerit]

Have you tried any Vanguard Models? They’re from the UK and make great (maybe the best) kits. Not subject to the tariff/trade nonsense. 

[Kenchington]

23 hours ago, hamilton said:

I do get why a US business would take this route in the current environment

If it was me, I'd decline to get mixed up in the paperwork. Who can know, from day to day, what might be required at the border? For a small company, the hassles simply would not be worthwhile, when we in Canada only comprise a tenth of the North American market. (A tenth of the population. I don't know whether ship-modelling is more or less prevalent north of the border.)

 

Sure it's limiting for us and, when (if?) some stability returns to trade arrangements, Model Expo will find that they have lost some market-share. But, in the interim, I'd not fault their decision.

 

Maybe the medium-term answer would be for a Canadian company to import for re-sale, making each delivery large enough to justify the complications. But who, this side of the border, would be willing to take on the risk of purchasing multiple kits, when direct supply from Florida could re-start at any time?

 

Trevor