Originally Posted by punch-crazy
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 Stampiní 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, Stampiní 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.
Well said. As I have said before, if the catty was in u.s. prices they would not have such a spread in prices because people would see they are paying in u.s. dollars. that would be no different than other companies who list in U.S. dollars which happens in many catalogues. I have never yet heard a responce from Shelly or an official statement from SU what their justification is for the difference, as it has been clearly stated by the above mentioned post, as well as many others over the past two years since this price increase jumped through the roof.
Our Canadian catalogue is printed in english same as in the U.S.They have maybe a dozen stamps they have in French so they cant say its the cost of manufacturing those few stamps. Paper is paper and die cuts are the same...where is the extra cost.......