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The Cost of Importing Electric Scooters from the US to Canada

December 19, 2023

Tariff Classifications and Duty Rates

Electric scooters fall under the Harmonized Tariff System (HTS) code 8711.60.0090. The duty rates for importing these products vary based on trade agreements and the country of origin.

  • Most-Favored Nation (MFN) Rate: In the absence of a trade agreement, the default duty rate under the MFN is 5.0%. This rate applies to countries without a specific trade agreement with Canada.
  • Canada-United States-Mexico Agreement (CUSMA) Rate: For imports from the US, the CUSMA agreement allows a 0.0% duty rate, effectively making the import duty-free.

Goods and Services Tax (GST)

In addition to customs duties, the Goods and Services Tax (GST) is a significant component of the total import cost. The GST is calculated at 5.0% of the value of the goods, including any applicable duty.

Additional Costs

  • Shipping and Handling: The cost of shipping electric scooters from the US to Canada can vary greatly depending on the size of the shipment, the distance, and the shipping company used.
  • Insurance: Importers often purchase insurance to protect against loss or damage during transit.
  • Currency Conversion: Transactions made in US dollars need to be converted to Canadian dollars, potentially incurring currency exchange fees or losses due to fluctuation in exchange rates.
  • Brokerage Fees: Hiring a customs broker can simplify the import process but adds to the overall cost.

Compliance and Regulations

  • Safety Standards: Importers must ensure that electric scooters comply with Canadian safety standards, which may involve additional testing or certification costs.
  • Environmental Fees: Some provinces may levy environmental handling fees for electronic and battery-operated products.

Case Study

Consider a hypothetical scenario where a Canadian retailer imports electric scooters valued at $20,000 USD. Under CUSMA, the duty rate is 0%, but the 5% GST still applies. Thus, the GST would be 5% of the CAD equivalent of $20,000. Additional costs like shipping, insurance, and brokerage fees must also be accounted for in the total import cost.

Conclusion

Importing electric scooters from the US to Canada can be a lucrative venture, but it requires a thorough understanding of the associated costs. The key expenses include duty rates (which could be zero under CUSMA), GST, shipping and handling, insurance, and compliance-related costs. Staying informed about the latest trade agreements and regulations is crucial for any business involved in importing these products.

Further Resources

  • Canada Border Services Agency (CBSA): For the latest information on duties and taxes.
  • Canada Tariff Finder: A useful tool for checking import tariffs on specific goods.

Businesses should consult with trade experts or customs brokers for personalized advice and up-to-date information on tariffs and regulations.

Dealer exception (approved October 29, 2026)

This dealer policy applies to approved international wholesale inventory, Canadian dropship orders and covered dealer warranty shipments. It takes precedence over conflicting ordinary-return, retailer-return, international-repair and post-warranty shipping wording for those approved remedies. It does not extend warranty coverage or change unrelated retail policies. Wholesale inventory is final sale except covered warranty and transit-damage remedies. Freight is transportation, not an import surcharge. Legally required sales taxes on the sale remain separate from border import taxes, with applicable checkout collection and disclosure; the dealer remains responsible for retail sales-tax obligations.

For approved international inventory and Canadian dropships, the dealer pays the agreed product price plus quoted freight. Levy arranges and absorbs customs duties, import taxes, standard customs brokerage and clearance charges, and carrier advancement or disbursement fees, with no separate import-charge surcharge and no recipient import bill at delivery. Confirm destination, service, importer arrangement and carrier billing before accepting the order. Never convert an accepted shipment unilaterally to recipient-paid import charges. Do not call a route DDP until importer and clearance capability are verified.

The dealer warranty remains six months from shipment, with replacement components first or a replacement scooter when the fault cannot be isolated to a known component. The dealer mediates support and claims. Levy arranges and pays approved replacement-part or replacement-scooter outbound shipping and any return Levy requires, including applicable cross-border duties, import taxes, standard brokerage, clearance and carrier advancement or disbursement fees. Approved warranty remedies have no restocking fee or return-label charge, even when approved fulfillment occurs after the warranty period. Obtain Levy return authorization and follow packaging and carrier instructions; a direct customer return to Levy is permitted only when expressly authorized. Existing misuse, neglect, accident, modification and unauthorized-repair exclusions remain.

Ordinary discretionary dropship returns remain separate: the dealer must request the return within 14 days of customer delivery; 10% restocking for unused units in original packaging or 20% for ridden units, plus the return-label cost. Damaged or abnormally worn units are not accepted for discretionary returns. Refunds go to the dealer original payment method within 5 to 10 business days after inspection. Those timing, fee and condition requirements do not limit approved warranty or transit-damage remedies.

Dealer shipping, warranty and returns

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