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Old 11-12-2010, 01:30   #1
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Canada Import Duties

I have tried looking through the archives for this information but cant find anything relevant.

I have a couple of questions.

1) If you are a Canadian buying a boat in the US do you have to report the purchaes to Revenue Canada and pay the taxes at the time of transfer or can you wait until you import the boat?

2) I have been told by a broker that when purchasing a boat not built in North America you also have to pay an additional 9% import duty. Do any of the Canadians on this site have any experience in this matter?

Thanks

Ancient.Mariner
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Old 11-12-2010, 01:56   #2
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Quote:
Originally Posted by Ancient.Mariner View Post
I have tried looking through the archives for this information but cant find anything relevant.

I have a couple of questions.

1) If you are a Canadian buying a boat in the US do you have to report the purchaes to Revenue Canada and pay the taxes at the time of transfer or can you wait until you import the boat?

2) I have been told by a broker that when purchasing a boat not built in North America you also have to pay an additional 9% import duty. Do any of the Canadians on this site have any experience in this matter?

Thanks

Ancient.Mariner
Boatless in BC
For #2 the answer was yes- A few years ago I brought in a new Jeanneau from France and had to pay the tariff and understand that is still the case today. I paid the taxes when I registered the boat but I suspect the broker normally does that. Hopefully someone else can clarify that.
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Old 11-12-2010, 05:51   #3
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You can buy a boat in the US and register it as a Canadian vessel without any taxes or duty if the boat remains outside of Canada. All that's required is a tonnage survey if over 12m, no tonnage survey, just a few photos if under 12m. And of course, you have to pay the registration fee.

You can bring the boat to Canada for repairs without incurring any charges but cannot use it.

If the boat is not built in the US or Canada you will have to pay duty (depends on country of build) and HST if you import it. If Canadian or US built just HST.
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Old 11-12-2010, 07:21   #4
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I would suggest you search through Pat's Boating in Canada and contact the Canadian Border Service Agency for definitive answers. I believe that you can bring the boat to Canada for use, on a short term basis, without paying the duty and taxes but I don't know where I read that information.

Pat's Boating in Canada: Importing a Boat from the U.S.A.
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Old 11-12-2010, 08:08   #5
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From the Canada Border Services Agency (CBSA)
“Importing marine pleasure craft”

“... You are obligated by law to declare the importation of your marine pleasure craft to the CBSA upon its initial arrival in Canada and pay all applicable duty and taxes, regardless of where the vessel is licensed or registered ...”

More Here ➥ Importing marine pleasure craft
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Old 05-10-2012, 17:17   #6
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Re: Canada Import Duties

I am contemplating the purchase of 1998 GB from the US . I called CRA and was told applicable duty was 9.5% and then the 13% HST on top of that!!!!
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Old 05-10-2012, 17:27   #7
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Re: Canada Import Duties

If that GB was built in the US then it is subject to NAFTA and therefore the duty is zero rated. IOW nothing owed other than the tax. If this provision applies to you then please say a silent (or vocal) thank you to Brian Mulroney.

To the OP's question - yes, our Defever was built in Taiwan, outside NAFTA and therefore subject to 9.5% duty. As far as the tax is concerned that is more complicated. CRA has authority only to collect GST ..... BUT there's a big but. The big but is if you live in a province with harmonized sales tax. In that event then CRA will take the position that there is no way to separate the taxes and they will collect the entire harmonized tax on import. In our case we were registering Gray Hawk federally with Prince Albert as our home port (because we are Saskatchewanians) so we paid whatever the current GST was on import. Then about a year and a half later we got a bill from Sask Finance for the PST owing.
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Old 05-10-2012, 17:34   #8
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Re: Canada Import Duties

GB Hong Kong-> Singapore -> Malaysia. You'll probably be paying the duty.
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Old 05-10-2012, 17:35   #9
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Re: Canada Import Duties

You see that is the problem....it was made in Singapore.....the CRA says that an item is duty free if labeled made in USA , Mexico etc...then it goes on to say it is duty free if NOT labeled as being mfg outside the USA etc......got to see the paperwork on the boat!!
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Old 05-10-2012, 18:02   #10
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Re: Canada Import Duties

My experience has been.

Bought a my Danish registered, France manufactured, YOT in the Caribbean...2001....Registered her out of the Port of Vancouver, B.C. ....B.C. Gov asked for provincial sales tax....I told them vessel is not in Canadian waters, "I'm willing to pay sales tax when vessel enters B.C. waters".... B.C. Gov ... OK....... My Error, registration lapsed. Considered registering offshore....Cayman...Panama...I won't apologies.... Proud First Nations!!... Re-Registered out of the Port of Edmonton ..... NO Provincial sales tax.... Vessel still outside Canada....Only cost has been to register. Yea Canada!!!:
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