canadian buying machine from usa

Discussion in 'Heavy Equipment & Pavement' started by mas, May 2, 2006.

  1. mas

    mas LawnSite Member
    Messages: 21


    Does anyone have any experience buying machinery from the usa and being from canada? I notice that skidsteers located in the state below me (minnesota) sell for about 10k cheaper then the same machine in canada.. and was thinking i would take a few hour drive to buy a used machine and save the money..

    just wondering if there is any special taxes or levys you have to pay when bringing the machine back?

  2. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    Well you'll have to pay duty, but I can't quite remember what the percentage is.
  3. treadlite

    treadlite LawnSite Member
    Messages: 137

    Your best bet is to find a customs broker..... if it's for a business and you want to write off the GST, you need an importer's number from the federal govt. You'll pay GST only if the machine is made in the US, or if the machine is made elsewhere in the world you'll pay a duty too, depending on where the machine is made.
    US customs requires that all the paperwork be at the border crossing you're going to use a minimum of 72 hrs before you cross.
    I imported my ASV from the states and for the $200 for the customs broker cost, it was well worth it. They do all the paperwork, get you the importers number, deal with US customs etc. If you get to the border and all the paperwork is not in order, the machine is offloaded, and impounded with storage fees until you get it all together.
    Good luck!!
  4. beyondupnorth

    beyondupnorth LawnSite Member
    Messages: 15

    If you're a business and have a gst #, then you just request a importers #, (which will be your gst # with one character different) It will be provided to you in a day or two. You can do the customs paperwork yourself, if you know how, (I could email you a sample) or you can pay a broker his fee. Then you only pay gst, which you can claim back. But if you buy the loader from a dealer in the US and pick up yourself, you will have to pay sales tax, in that state. If you buy from a dealer in the US and have it freighted out of his state then no sales tax. (State sales tax may pay the freight cost) If you buy privately then you pay no taxes is US. If you are not a business you will be charged the pst and gst at the border. That is after you or your broker calculated how much tax is on your purchase for them, then you stand there while they recheck your calculations. GRRRR.
    But in light of current exchange rates, it could be well worth the trouble.
    When the US dollar value began to drop against the Cdn dollar, all US built equipment should have went down in price in Canada. But it never, the US manufacturers are losing they're huge profit margins at home, and they are doing everything they can to keep there international prices just as high as before. I doubt, a US dealer is allowed (by the manufacturer) to sell you a new machine, you have to live in his territory, but once it is used its fair game then. In some way I feel bad for the Canadian dealers, because really they are being screwed buy the manufacturer, because wholesale price on the same product is 40% higher for them in Canada then it is to the dealer in the US. How can they compete with that. I'm surprised they can sell anything, because there is a wave of savvy buyers bringing barely used iron from the south. You could pay most of the guys on this board what they paid new for their iron in the states, and have it home for less then a used one on the lot in Manitoba.

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