McLuckie said his business doesn't have the money to cover that bill
OTTAWA — The owner of a small Canadian business that imports electric golf carts from China says his company is now in jeopardy because the federal government has billed him for more than $178,000 after placing his three-wheeled buggies in the same import category as electric vehicles (EVs).
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Joseph McLuckie, who founded JPSMGolf in 2006 in his Toronto basement, said Friday that he has exhausted his appeals with Canada Border Services Agency (CBSA) after the federal department confirmed its ruling that his company’s golf carts are considered sport vehicles because they “are conveyances used by the golfer to get their bag and associated accessories across the golf course during play.”
The re-classification was made during a 17-month window when Canada was applying a surtax of 100 per cent on Chinese-made EVs, part of a trade war with China that was calmed earlier this year. The company, which has six employees, had previously and has since been paying 6.1 per cent surtax on its Chinese-made imports.
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Instead, he was informed that his shipment of “Formula” trolleys from about a year earlier was now subject to a surtax of $169,882.35, plus GST of $8,494.12. The bill has since grown by more than $4,500 because of interest charges as he tries to fight the ruling.
McLuckie said his business doesn’t have the money to cover that bill. “If I have to pay (this bill), I’m screwed.”
In the May 14 letter from Juliana Leung, a senior officer of trade compliance with CBSA, quotes from two dictionaries that define a vehicle as “a machine that commonly has wheels and an engine, that is used for transporting goods or people.”
The letter from CBSA, obtained by National Post, concludes that its review of the matter found that no error was made and that the department correctly ruled that the golf trolleys should be classified as EVs and hit with a 100 per cent import tax. “Undoubtedly, the golf trolleys under review meet the definition of motor vehicle, as they employ an electric motor for propulsion, and are used to transport goods.”
The Formula models, whose price tags range from $1,299 to $2,499, are one of five brands sold by JPSMGolf. Not to be confused with four-wheeled golf vehicles, the electric Formula devices travel alongside their owner and are just large enough to carry a golf bag.
Leung couldn’t be reached for comment Friday.