RVDA Canada Calls for Reduction in Import Duty

PrintEmailReportPrintReportEmailRepresentatives from the Recreation Vehicle Dealers Association (RVDA) of Canada – a national federation of provincial and regional RVDA associations - are heading to Parliament Hill in Ottawa today to urge support for critical cross-border issues effecting the RV industry.

The Canadian Government's 2012 Federal Budget has increased the value of goods travelers to the United States are able to bring back to Canada tax and duty free. The RVDA argue that such a move carries serious implications for the competitiveness of the Canadian RV industry which already has to compete with lower U.S. RV dealership prices.

"This has really sideswiped our business on aftermarket parts and service for RVs," stated Garth Bromley, RVDA of Canada Chairman of the Board.

"Many of these items will now be tax-exempt. You can purchase a new RV awning for $800, and a couple can even buy a full new set of tires under the increased categories. This is a powerful incentive for customers to take their business to the U.S."

RVDA feels that by raising the threshold of the value of goods travelers are able to bring back, when the Canadian Border Services Agency is not enforcing the current laws, the Government is sending a powerful message that it is not serious about collecting taxes and duty on imports by customers. This will only lead to more cross-border shopping, and evasion at the border, which will have serious consequences for Canadian retailers.

In light of this issue, the RVDA are requesting that the Government lower the duties Canadian RV retailers pay on imported goods. In particular, the RVDA would like duties on aftermarket RV parts and add-ons be reduced to zero. Currently such duties range between seven and 18 percent.

Besides competitiveness issues, there are also safety concerns with vehicles purchased across the border. The RVDA contend that many imported RVs are not compliant with Canadian national and provincial regulations regarding items such as propane tanks and electrical systems.

"Currently, we lack a coherent way to ensure that imported units meet Canadian safety standards, and there is a significant lack of consumer knowledge of specific regulations when they are importing vehicles through the Registrar of Imported Vehicles", add Mr. Bromley. "We ask that the Government implement a country-wide certification for all consumer and retailer imports, to ensure the safe operation and use of RVs across Canada."

RVing and camping are significant components of tourism for both Canadians and visitors alike and the RVDA believes that there is a need for the Canadian Tourism Commission to promote RV rentals being offered in Canada as a new way to discover the country. The RVDA argue that this is a viable growth area for tourism in Canada and one which would benefit from a reduction in import duties.