Good News in Budget for Golfers

[zee51]

Not earth shattering but the Harper governement announced that the tariffs will be removed from certiain sports products that include golf clubs.

Currenntly golf clubs have a duty rate of 7.5% and components have a rate of 7%. So this means that importers will have their landed costs reduced by the above amount plus GST since GST is also payable on duty.

You are not going to see any great decrease but you also shouldn't see an increase and hopefully we should see a moderate decrease.

[spackler]

As most OEM clubs are assembled in the US, I don't believe they are subject to duty?

[zee51]

Not sure if clubs are assembled in the US but if there were assembled in the USA they would not likely meet NAFTA rules because the the NAFTA rule for golf clubs requires that there is a region value content of 50%. In other words golf clubs assembled in the USA would not meet NAFTA rules unless the cost of assembling constituted 50% or more of the cost of production. Can't imagine that putting some epoxy on a shaft and sticking it in the head would meet this.

It is possible that some may not have paid duty if they imported the product as a personal importation because the rules are not as strict as for commercial importations by companies.

[the babybull]

Most equipment was purchased by retailers before the budget, so don't expect any pice reductions for at least a year. However there has been a reduction in golf retails in Canada based on our strong dollar. Prices in the states are now quite close to Canadian retails on clubs and shoes.Golf Clothing however is still much cheaper in the US.

[zee51]

Quick update. I have verified that the Customs Tariff legislation has been updated and that the duty rates have been removed on Golf clubs and parts of golf clubs. The duty has also been removed on golf balls.