Delivered Pricing to Canada
When a shipment arrives at the border, it is up to the Canadian purchaser to arrange for clearance through Canada Customs and to pay any tariffs that are due. Once the vendor turns the shipment over to the carrier, the vendor has lost control of the transportation issues and what goes on at the border.
Many US vendor are now quoting “delivered” prices to their Canadian purchasers. The price will include any duty and/or tax that needs to be paid at the border. These shipments are processed through Canada Customs by the vendor (using their own Canadian customs broker) and the vendor pays the duty and/or tax to Canada Customs. The vendor has control over the shipment up to the point of delivery to his customer.
There are marketing advantages for the vendor when they sell on a “delivered” price basis. When the vendor quotes prices to their Canadian customers, that price is “delivered” to the customers’ door. There are no surprises or guess work on the part of the purchaser to come up with their true landed cost. The vendor has provided them with an all inclusive price.
In this situation, the vendor has taken over the responsibility of clearing the goods through Canada Customs, taking that responsibility away from their customers. It is easier for their customers and may provide a marketing advantage for the vendor.
More details on “delivered” pricing can be obtained by contacting us on our toll free telephone number or by contacting us through www.decassist.com
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This page last updated Wednesday, July 7, 2004