Importing an American registered French made boat to Canada

[svlamorocha]

[QUOTE=hpeer;24791

Not sure how to document the importation has been paid.[/QUOTE]

You need the "entry number", CBP forms 3461 and 7501 plus proof of the actual payment.

See more detail in http://www.vandegriftinc.com/wp-cont...-Documents.pdf

[hpeer]

But since I didn't do the importation, we bought the boat through a broker, I don't have those forms.

This whole concept only came to us a long time after we had the boat. My recollection, as shaky and unreliable as that is, is that the broker had performed some sort of title search to show the boat was unencumbered, much as you would do in a house sale.

You know, once someone has been through all this stuff a time or three you can forget there was a time of ignorence. We are just a couple of old farts looking to buy a boat. We go through a broker and buy it. What could go wrong? And, in reality, I have no reason, no evidence, to suspect that everything is not in order.

[hpeer]

SVLAMOROCHA,
I appreciate your replies and expertise. I read that link but it is confusing. It says how important it is to hold these documents so when you sell the boat you can prove the duty was paid. Presumably (?) those papers need to also transfer to the new owner? And it implies that finding thes documents later is difficult. But is it also then not difficult to prove the negative, that the duty was not paid?

In the event it was not paid, but the boat was sold, who then is responsible? The person who evaded the duty initially, the broker, the recognized expert, who didn't check, or the new owner?

In fact, had would the new owner even be able to find out? Why would they care? Paying the duty was not their thing to do.

[hpeer]

Just to add, our boat was purchased "free and clear of any loans, liens, mortgages or other encumbrances." So it strikes me that such words would put the liability for unpaid duty upon the seller or broker.

But we are in fact way off the initial intent of this thead.

[fxykty]

Originally Posted by hpeer

So here is another permutation.

Our a English boat was sold to an American, changed to American registry. Presumably the importation was paid at that time. So the importation into the NAFTA region has been paid. Why then would I have to pay for that importation once again between the USA and Canada?

Not sure how to document the importation has been paid.

As others have pointed out, registration of a boat is separate and entirely different from importation of a boat. The PO most probably did pay to US Customs duty and/or their state of residence one or more taxes to import the boat into the US. Canada is not the US, so will charge its own tax (GST and PST or HST, plus applicable duty) when you bring (i.e. import) the boat into Canada. NAFTA is a treaty and has nothing to do with jurisdiction, unlike VAT in Europe with the EU, which is actually another level of government, and that status applies to all EU countries and across different owners.

You will also need to change the registration, as you won't be able to keep US or state registration if you're not resident there. You don't necessarily have to register the boat in the Canadian Register Vessels - you could just license it with Transport Canada if you don't need to mortgage it or to go overseas other than the US. Or you can register it offshore as a flag of convenience.

Regarding the title to the boat (on your sales agreement) that only covers liens, e.g. a mortgage or other loan, a security obligation, or similar. It does not cover taxes or duties owed, unless they're in collections. So you won't have any joy dumping on the broker. But they should know enough to explain what it means to buy a foreign boat and bring it into your country. Good luck.

[hpeer]

ok and thanks

How much is the USA duty anyway? 1.5%

[PrairieSkipper]

Hi,
I imported a US registered, Taiwan manufactured, 35 year old 42' monohull in May from Illinois to Ontario. Here is a short summary of my experience and some tips that may help you. I am going from memory since I don't have the documents at hand.
No customs broker would help me because it was a personal rather than commercial transaction, so I did the importation myself.
Selling broker applied for USCG de-registration - which at the time, took about 50 days to complete. This is essential.
I took delivery of the boat in Wisconsin to avoid Illinois sales tax and declared I was exporting it to Canada. There is paper work for this.
Crossed into Canada at Sault Ste Marie, Ontario - the USCG registration was still in effect (actually for another 30 days).
Her Majesty's agents met me at the dock after I called in and assessed GST (5%). PST is assessed as per the owner's residency and not the boat's location. I live in Alberta, so paid no PST even though the boat is in Ontario.
I paid 9.5% duty on the entire transaction price because the boat was deemed to be non-NAFTA, even though duty had been paid upon the hull's arrival in the USA in 1986.
I applied for Transport Canada registration using online forms (including a tonnage calculation). TC only allows you to mail in in or fax (yeah, I know) the application. Evidence of USCG de-registration is a pre-requisite for application. You need to know, that the TC process takes up to 50 days (3 months total for de-reg & re-reg) and technically, you're not allowed to use the boat until it is registered. However, I got around this by licensing the boat using an online TC process (meant typically for small boats) that gives you a number right away. I used the licence (laser printed the number on transparent mailing labels which lasted the summer) until my registration arrived .
Duties and taxes are based on your receipt (make sure you've got originals of all of the dox you collected during the transaction), is converted to Cdn$ at the Cdn gov't's rate at the moment and you pay GST & PST on that amount. Your duty is reduced by the amount of your personal exemption (Cdn $700 in my case). Her Majesty takes all major credit cards
I tried to argue with the agents that the value of the boat was only one part of the total price. However, they have no authority to reduce assessments and didn't budge, but did gave me info on how I could appeal the assessment (which I have done).
TIP: Get a receipt that itemizes the values of the boat alone and anything that didn't originally come with it from the manufacturer. For example, things like, a cradle, NAFTA sails, broker's or storage fees, anything removable (dishes, dinghy, etc.) should be listed with a price and presumably should be exempt from duty but probably not PST or GST. This can be substantial, especially if the hull is older and everything else is current.
This could save you bigly, but I don't know for sure yet.
I was going to write in about this once my own ordeal is finalized, but here you are.

[hpeer]

Thanks.

Good info.