Threat to the Grey Market

[Columbarius]

If Canon win & then decide to go after the companies that import into the UK/Europe it could get interesting:

http://www.diyphotography.net/canon-is-looking-to-sue-grey-market-camera-retailers/

[Tigger]

Re: Threat to the Grey Market

when one door closes another opens and the grey importers make too much to not find a work around

[Wayne Els]

Re: Threat to the Grey Market

The article seems to be incorrectly titled as the cameras shown are either fake or rebadged 2nd hand ones? Grey imports are (in my understanding) a genuine product that is imported not via the company's preferred distributor.

[Nathaniel]

Re: Threat to the Grey Market

I agree with Wayne Els.The article should be corrected.

[jk224]

Re: Threat to the Grey Market

The article seems to be incorrectly titled as the cameras shown are either fake or rebadged 2nd hand ones? Grey imports are (in my understanding) a genuine product that is imported not via the company's preferred distributor.

Or is it that Canon are saying that these shops are trying to hide the origin of the unit when they are selling items where they know the buyer is in a different geographical region?

[Columbarius]

Re: Threat to the Grey Market

these shops are trying to hide the origin of the unit

You are correct John. The article specifically states that the 5DIII was purchased as"new". Further on it poses the question:

What will also prove interesting going forward is the fact more established retailers such as B&H and Adorama also sell grey market equipment. Will Canon be going after them in the future?

and concludes with the thought:

It’s unlikely this legal battle will end anytime soon, but if Canon is to come out as the winner, it could very well mean the era of grey market camera equipment is gone.

US lawyers being what they are this one could run and run. But of course the real solution to grey imports would be for Canon to normalise their prices worldwide (albeit allowing for currency fluctuation) and not ripping off consumers (particularly in the UK) where we are forced to pay pound for dollar despite a 1:1.5 ratio.

[Tigger]

Re: Threat to the Grey Market

US lawyers being what they are this one could run and run. But of course the real solution to grey imports would be for Canon to normalise their prices worldwide (albeit allowing for currency fluctuation) and not ripping off consumers (particularly in the UK) where we are forced to pay pound for dollar despite a 1:1.5 ratio.

agree, people wouldn't try the cheat the system if it was a fare one

[Robert Scott]

Re: Threat to the Grey Market

When comparing UK and USA prices, keep in mind that UK prices usually include VAT at 20%. USA prices are usually advertised without tax, which is added at point of sale (it varies from state to state).

[Wayne Els]

Re: Threat to the Grey Market

When comparing UK and USA prices, keep in mind that UK prices usually include VAT at 20%. USA prices are usually advertised without tax, which is added at point of sale (it varies from state to state).

Yes but state sales tax is not applicable on internet purchases. Which, given the death of the high street in the UK is the bulk of sales nowadays.

[Robert Scott]

Re: Threat to the Grey Market

Yes but state sales tax is not applicable on internet purchases. Which, given the death of the high street in the UK is the bulk of sales nowadays.

I thought we were comparing the price of camera equipment in the USA against the price in the UK.

However, even if you buy from the states, there is still VAT to pay when the equipment arrives in the UK. My point is that the higher prices in the UK are not entirely down to Canon.

[nickorando]

Re: Threat to the Grey Market

And increasingly, USians DO have to pay sales tax on internet purchases - they always have had to if the company has a presence in the same state as the customer.

[Columbarius]

Re: Threat to the Grey Market

Robert is of course correct, the UK/US price differential is not solely down to FX rates. Though for many years most consumer electronics were priced on a £:$ equivalence.

The other Grey import scam is of course to understate the value of the imported goods and so minimise VAT and other duties.

[Wayne Els]

Re: Threat to the Grey Market

I thought we were comparing the price of camera equipment in the USA against the price in the UK.

However, even if you buy from the states, there is still VAT to pay when the equipment arrives in the UK. My point is that the higher prices in the UK are not entirely down to Canon.

I was comparing. I wasn't talking about importing from the US into the UK. The price of something bought in the US online shipping somewhere in the US does not, in my experience attract state sales tax. That dollar price is usually significantly cheaper than the same item bought in the UK.

[Robert Scott]

Re: Threat to the Grey Market

I was comparing. I wasn't talking about importing from the US into the UK. The price of something bought in the US online shipping somewhere in the US does not, in my experience attract state sales tax.

B&H Photovideo, New York City, appears to charge sales tax on equipment mailed to addresses in the USA.

[Wayne Els]

Re: Threat to the Grey Market

OK, that's confirmed what Nickorando said. However this is relatively recent and seems to be at odds with what I've just read on their website:

Local Sales Tax
If the order is shipped within New York State , the law requires that local sales tax be added to the order total including the amount of the shipping charge.

We do not collect tax for orders shipped out of New York State. Purchases in our store are subject to an 8.875% local sales tax. This tax is not a VAT, and cannot be recovered by non-USA visitors when returning home.

http://www.bhphotovideo.com/find/Hel...r/SalesTax.jsp

The sales tax (if you pay it) is less than 9% which is still a lot less than vat.