Dealer Requires a Broker: Navigating the Tariffs
If you are a Dealer and do not have a Broker, but would like to have a Broker, here are the steps required with the imposed Tariffs:
- VMAC has worked with Pacific Custom Brokers in the past and they are available to help. You can contact them directly at 1-877-332-8534 or visit their website at www.pcbusa.com.
- Dealer is free to use this Broker or one of their choosing.
- Dealer will need to establish an account with the Broker of their choosing.
- Dealer to indicate who their Broker is on their Purchase Order. VMAC requires this for the Bill of Lading (B.O.L.) and Customs invoice.
- When ready, the Order will Delivered-At-Place (DAP).
- Commercial Invoice shows Order value.
- Dealer pays Tariff to their Broker when the goods cross the border.
- VMAC will provide Tariff relief totaling 1/3 of order value on the Billing/Pay Invoice.
- Tariff relief will be shown as a separate line item on the Billing/Pay Invoice.
Example:
Order value = $10,000
(shown on Customs Invoice on shipping documents)
Tariff charged at border: $10,000 x 25% = $2,500
Billing/Pay Invoice will include Tariff Relief line item for: $2,500 x 1/3 = $833
New Total Order value will be show as $10,000 - $833 = $9,167 (payable to VMAC)
Dealer pays $2,500 Tariff to their Broker when goods cross the border.
(shown on Customs Invoice on shipping documents)
Tariff charged at border: $10,000 x 25% = $2,500
Billing/Pay Invoice will include Tariff Relief line item for: $2,500 x 1/3 = $833
New Total Order value will be show as $10,000 - $833 = $9,167 (payable to VMAC)
Dealer pays $2,500 Tariff to their 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 evenly 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 encourage you to work with your Customs Broker to clear the shipments and remit the duties directly to the U.S. government.
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.