Originally Posted by Alice in Md
I feel for our Canadian neighbors and other-country friends and their having to pay so much more than those of us in the US. However, I don't think all of this is SU!'s idea. The Canadian government charges a Goods and Services Tax, and at least some of the provinces charge their own taxes on imported goods. The company may also include an amount for faster shipping as sometimes things can get bogged down at the border. I suspect SU! takes all these fees into consideration and rolls them into their Canadian pricing. Has anyone asked how SU! arrives at its foreign prices?
I work for a Canadian Customs Broker & International freight forwarder so I can tell you that Stampin' Up does NOT pay taxes that they have to absorb into their Canadian pricing.
The provincial taxes and the Federal GST (or in some provinces the combined HST) is paid by the consumer, this is added onto the price we pay for Stampin’ UP as a separate line item on our orders just like the shipping and has nothing to do with the product pricing. Business do not pay Provincial tax, (they are exempt) and any GST/HST they pay is refunded to them.
Someone else brought up duty. For any products that are manufactured in the US, Stampin’ Up will not have to pay any duties when they import these into Canada for distribution. Canada and the US have had a Free Trade agreement (NAFTA) for many years. And most of Stampin' Ups products are produced in the US.
Having said that, any products that are manufacturer elsewhere may indeed be dutiable.
I for example suspect that EK manufactures the punches in China. However checking the Canadian Customs tariff punches and dies are duty free.
The only place I see more expense would be a possible cross border clearance/brokerage fee. But that's a minor expense for a company as big as Stampin' UP.
The differene in pricing is probably more due to exchange rate fluctuation. They cannot adjust their pricing everytime the exchange rate changes. Their catalogue is valid for 1 year afterall and they have to cover themselves.
I do hope though that when the new one comes out in a few months they'll adjusted pricing a little bit to reflect the currency exchange of the past 12 months.