Automotive Parts Manufacturers’ Association (APMA) is pleased to announce that it sought and received tax exemption status for Canadian manufacturers and shippers shipping product toMichigan or through Michigan to other United States jurisdictions.  The exemption applies to the many companies that are domiciled in Canada; do not have a permanent establishment in Michigan, but ship product there. 

Gerry Fedchun, president of APMA indicated, “The work on this exemption began a year and a half ago and involved many trips to Michigan, discussions with Senators and House Representatives, discussions with Michigan State Treasury officials and three appearances before the Michigan House Tax Policy Committee, most recently on December 16, 2008”.  Fedchun further added, “APMA dedicated significant resources to get this Amendment passed as it will save our collective industry millions of dollars each and every year for years to come as much of our product is exported to the United States, and in particular, to and through the State of Michigan.  This Amendment truly reflects the spirit of NAFTA and reciprocity of taxation treatment.  The auto industry is the most integrated industry in North America and cross border trade is fundamental to the success of the industry in North America.  For years, Michigan and Ontario have had reciprocal arrangements for taxing companies doing business across the border.  The Michigan Business Tax would have been a step backwards to fair taxation between Ontario and Michigan.”

APMA would like to applaud Canada’s Minister of Finance, James Flaherty and Ambassador Michael Wilson and Ontario’s Premier McGuinty, Minister of Finance, Dwight Duncan and Minister of International Trade, Sandra Pupatello for their tremendous support and assistance.  APMA would also like to thank the Canadian Trucking Alliance and their president, David Bradley and the Canadian Consul General in Detroit, Robert Noble and his staff.