Nikon D4S Pricing

paulr

As the new Nikon D4S starts trickling through the Retail Network. Prices in the USA at circa $6500 are being offered by legitimate sources, yet in the Uk we have to pay $8700 with a 2 year warranty if you register the camera with Nikon Uk within one month, otherwise only 1 year none transferable warranty
Question: Are the British being ripped off?

TaoTeJared

USA price does not include TAXs.

WestEndBoy

As the new Nikon D4S starts trickling through the Retail Network. Prices in the USA at circa $6500 are being offered by legitimate sources, yet in the Uk we have to pay $8700 with a 2 year warranty if you register the camera with Nikon Uk within one month, otherwise only 1 year none transferable warranty
Question: Are the British being ripped off?

What is the duty rate for cameras going into Europe vs the US/Canada?

TriShooter

When traveling to the UK I bring everything I need because everything seems to cost 25 percent more. I ask the retailers why, and they say we are a small country to which I usually replied someone in the UK is kidding you, and they are getting rich off the poor, and the middle class because this feels like a regressive tax either to government, or the old boy network.

Ironheart

The UK has a 20% VAT and Nikon UK likely pays 3-5% import tax. That's almost the price difference.

Ade

Japanese cameras are duty free into US, Canada, UK and most of Europe. They are subject to regular sales taxes / VAT.

Ironheart

@Ade, you are supposed to pay 6.7% import duty and 20% VAT on cameras brought into the UK from Japan. I was estimating that Nikon UK had negotiated a lower rate.

PB_PM

Indeed, all imports are charged import duties regardless of whether the customer is charged taxes on the item after the fact or not.

Ade

Once again, Japanese digital cameras are duty free into US, Canada, UK and most of Europe (including all EU countries). They are still subject to sales taxes / VAT.

Japanese camera lenses are subject to 6.7% import duty into EU countries. The duty for US is 2.3%, and for Canada it is 2%.

Camera bodies are treated differently than camera lenses for purposes of import duties. You can look up tariffs by the Harmonized System (HS) code. The HS code for digital cameras is 852580. The HS code for lenses is 900211.

HS tariff schedule for US:
http://hts.usitc.gov

HS tariff schedule for EU:
http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp

HS tariff schedule for Canada:
http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2014/menu-eng.html

Ade

p.s.: Video cameras are subject to 4.90% duty into the EU.

This is one reason why DSLRs including the D4S have a 30-minute video recording limit, to stay under HS 85258030 classification (duty free).

Video cameras that can record over 30-minutes fall under HS 85258091 and subject to 4.90% duty. Video cameras with VIDEO IN recording capability are classified under HS 85258099 and subject to a very stiff rate of 14%.

PB_PM

If anyone does take the time to read the documents what Ade says is true. Not sure why Ade got negative votes for that.

On the other hand, that does not exempt individuals from import duties. If I import a digital camera body into Canada, B&H still charges import duty, in the form of GST and brokerage fees.

TaoTeJared

None of it matters. UK's and most other country's pricing includes VAT, fees, and whatever other costs that are charged for the purchase. Most country's believe it is right to let the customer know the total price. The USA doesn't care to tell anyone what the total cost is - it may make people not buy it. Can't hamper capitalism. Laws are skewed towards companies, not citizens in this (and most) regards. What they are called, or how much does not matter when people ask why US pricing is lower. USA posted pricing does not include any government fees. That is why is looks cheaper.

(For those that are curious, local and state taxes usually add 8-18% depending on where one lives. Most internet sales are not subject to taxes except for a state or two.)

Ade

Hi PB_PM:

GST and brokerage fees are not import duties. GST (or HST) is a value added tax (VAT). Brokerage fees are service fees charged by companies (the clearing agent).

If digital cameras weren't duty free into Canada, then you would have to pay duty, plus GST/HST, plus brokerage fees.

Ade

@TTJ

UK prices for the D4S is still significantly higher than US prices, tax included.

The highest sales tax in the US is only 12.725% (as of 2013). So assuming MSRP, the max you will pay in the US with tax is $7327, vs $8700 in UK, a difference of $1373. In practice, many US photographers can buy cameras tax free, so the difference vs. UK is even more staggering, almost $2200.

Ironheart

FWIW, a canon 1DX goes for $8100 in the UK and $6800 in the US. When you factor out the 20% VAT, you are pretty much apples to apples. Do the same for $8700 vs $6500 and there is still a delta of $750.
I think looking at the pre-tax figures is a more fair comparison, since everything is taxed at the 20% VAT.

ads

The USA doesn't care to tell anyone what the total cost is - it may make people not buy it. Can't hamper capitalism. Laws are skewed towards companies, not citizens in this (and most) regards.

For those that are curious, local and state taxes usually add 8-18% depending on where one lives.

More likely it simply isn't practical to list dozens of different prices to cover all the different state taxes - different story in the UK where its one tax rate.

Interesting that the D4s is being listed at A$7000 in Australia. Take off our local sales tax and that's the equivalent of U$5726.

TaoTeJared

The highest sales tax in the US is only 12.725% (as of 2013).

You are wrong Ade. Sales tax depends on state, city, and goods or services and all adds up. example: City tax 5% + State 10% + Luxury tax + etc. = total tax. Highest I have paid in the last few years is 22%. With the current political climate some have fallen on some goods but have risen on others. Some have import fees, but most do not. It all depends on what goods/or service, where you live, and can even change by how you pay for the item. My local store will charge me less on larger purchases if I pay cash so it doesn't have to pay credit card fees.

Besides that is way off topic. The matter in question "is Nikon charging less in the USA." The answer is no.

The difference is based on individual country's "tax system" (incl. duties, fees, VAT, etc.) and additional charges are "mixed" into the base price by companies to cover credit card/bank fees and destination charges for shipping. All of which changes from country to country and by destination. The cost to ship to Hong Kong is much less than to the UK but the cost of the camera to each spot is the same. Various markets can be less also because of demand in that market (cost per item to ship lowers due to large quantity.) When a high end camera is released, most shipments come by Air freight/mail so the cost is much higher. That is why after the system is out for about 6-12 months, demand drops enough so large shipments can be made by boat, rail, and road all of which cost less and if the store can keep the same margins but drop the price to customers as it cost less to get there. And don't forget currency hedging as well. That is a whole different mess of issues. All of that is built in to the price the STORE charges. Nikon does it best to put the MSRP at a level so it covers most all destination point of sales, but for obvious reasons it does not always.

paulr

Thanks Ade for the information on Tariff forms very useful, I was aware of the video,situation. Ii would seem the American tax system is more complicated than Europe. In the Uk VAT only applies to new items,When it started it was 8% and now its 20% quite a substantial figure when you start buying items that cost thousands of pounds.

Golf007sd

The price are what they are. Be a savvy shopper and find the best price possible. Then enjoy your gear and let the chips fall where they may.

Thank you all for your input.

Closed.