My understanding of gray market is that many manufacturers of, especially electronic items, sell to other countries much cheaper than they do to the USA. I suppose reasons vary as to why, typically I would think because many people in other countries will not or can not pay as much as Americans will. So people in the USA will buy from those countries instead of direct to the manufacturer or USA distributor. They can buy the stuff a lot cheaper and then resell it here again for cheaper and still make their profit margin.
People in the USA were going to Canada to buy vehicles and boat motors etc... because the USA manufacturers sell to Canada cheaper than to dealerships in the USA. Americans could go to Canada and buy their cars etc... and even with export fees save big bucks. The American car manufacturers then started to refuse warrantee work on vehicles so purchased. I would not doubt that most manufacturers of goods will deal with gray market items in the same way . . . no warrantee.
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