Dealer Not Working with a Broker and Not Wanting a Broker: Navigating the Tariffs
If you are a Dealer who does not have a Broker and does not want to have a Broker, here are the steps required with the imposed Tariffs:
- Dealer to indicate on their Purchase Order that Tariffs are to be prepaid.
- VMAC will issue a separate Tariff Invoice to Dealer which will also include VMAC’s Tariff relief of 1/3 of the total.
- VMAC’s Net Tariff Invoice will represent 2/3 of Tariff that is due and payable to VMAC prior to shipment of goods.
- Payment can be made to VMAC via ACH / EFT or Credit Card.
- Once VMAC confirms payment by dealer of 2/3 of the Tariff, the order will be shipped Delivered Duty Paid (DDP).
- VMAC will then pay full Tariff and clear through VMAC’s Broker.
Example:
Order value = $10,000
(shown on Customs Invoice on shipping documents)
Tariff charged by VMAC: $10,000 x 25% = $2,500 x 2/3 = $1,667
Dealer pre-pays $1,667 Tariff to VMAC prior to goods shipping.
Billing/Pay Invoice will include Tariff Relief line item for: $2,500 x 1/3 = $833
VMAC pays $2,500 Tariff to VMAC’s Broker when goods cross the border.
(shown on Customs Invoice on shipping documents)
Tariff charged by VMAC: $10,000 x 25% = $2,500 x 2/3 = $1,667
Dealer pre-pays $1,667 Tariff to VMAC prior to goods shipping.
Billing/Pay Invoice will include Tariff Relief line item for: $2,500 x 1/3 = $833
VMAC pays $2,500 Tariff to VMAC’s Broker when goods cross the border.
VMAC Response to US Tariffs:
The Tariff is a policy decision made by the U.S. government, and while outside of our control, we recognize its potential impact. We are actively working to minimize any potential disruptions and help you navigate these changes. After a thorough evaluation of the implications of this Tariff, VMAC has established a fair strategy to support collaboration. To mitigate the impact, VMAC will absorb one-third of the net tariff cost increase, with the remaining two-thirds being distributed between you, our Dealer, and the end customer as you see fit.
To implement this, VMAC will apply our portion of the Tariff’s impact as a discount on your invoice.
We appreciate your continued trust and partnership, and we will keep you updated as more information becomes available.
Please do not hesitate to reach out to us should you have any questions or concerns—we are here to support you.