Importing a boat from U.S. to Canada

[Stu Jackson]

Originally Posted by Chriscook

Hi offshore 74, could I ask who you are looking at for trucking your boat up to BC, we are looking at doing the same thing I just wish the dollar would hurry and become more comparable.

I just got a list of truckers from Svendsens in Alameda. One is San Jose trucking which I also read good things about on this forum just recently.

I haven't yet checked with KKMI.

This is San Francisco to probably Tacoma and then sail to Victoria.

PS - I'm NOT the OP, seems like a few of us are on the same track. Helpful discussions.

[Chriscook]

Yes there is alot more choice of boats down in cali, I would imagine it to be pricey as they would need pilot cars all the way up for the over dimension.

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[Stu Jackson]

Originally Posted by Chriscook

Yes there is alot more choice of boats down in cali, I would imagine it to be pricey as they would need pilot cars all the way up for the over dimension.

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FYI, I have owned this boat for 18 years, just moving north with the family.

YMMV.

[BobLoucks]

Hi,
I purchased my boat last fall in Saugatuck Michigan and had it transported to Collingwood Ontario.
I did NOT use a broker but cleared it myself through Sarnia, I had all of the paper work required completed in advance and met the truck upon arrival. CBSA staff were very helpful at the border. They will charge you sales tax based upon the current exchange rate.
The only surprises were the cost of haulout, de-stepping and loading on the part of the marina, next time I would nail them down better in advance with a firm quote.
Other than that it was pretty easy and painless.
Good luck!

[captlloyd]

Originally Posted by CampDavid

From experience I strongly suggest you obtain a business GST number and use a custom broker who knows what they are doing. Joe Bailey at White and White in Mississauga is first class. He will do all the paper work and you can sail her back pre cleared. As a business GST you will pay only the GST, 5 percent. Register the boat as a named ship.

You get a blue book and the Ship imported. Pay the tax requested which in all likelihood is only the GST. The ship department does not have a formal reporting agreement with the Province. Need I say more. Joe might charge 300.00 could save you a lot of money and even more hassle.

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You can lead a horse to water............

[Offshore74]

Originally Posted by CampDavid

From experience I strongly suggest you obtain a business GST number and use a custom broker who knows what they are doing. Joe Bailey at White and White in Mississauga is first class. He will do all the paper work and you can sail her back pre cleared. As a business GST you will pay only the GST, 5 percent. Register the boat as a named ship.

You get a blue book and the Ship imported. Pay the tax requested which in all likelihood is only the GST. The ship department does not have a formal reporting agreement with the Province. Need I say more. Joe might charge 300.00 could save you a lot of money and even more hassle.

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Thanks for the tip. Would the same rules apply if I'm in British Columbia? (I should probably update my location on my profile it says I'm "Great Lakes", I just moved!)

[Mike OReilly]

Originally Posted by Offshore74

Thanks for the tip. Would the same rules apply if I'm in British Columbia? (I should probably update my location on my profile it says I'm "Great Lakes", I just moved!)

I'm curious about this as well since I don't really understand what CampDavid is talking about. Not sure why becoming a GST registrant changes your import taxes; specifically how it allows you to avoid PST.

The only way I can see being GST registered would possible assist is if you are using the boat as a business asset. In that case you could write it off as a depreciated asset, or perhaps you could finagle it so the purchase price is an operating expense, in which case you could reduce business taxes owed as well as GST remittance. But how you avoid paying provincial taxes is beyond me ... of course, I'm not an accountant, so would love to see how this works. One more thing. If you're GST-registered you'd have to start collecting GST on your business activities. But by doing this you do get to avoid paying the GST on your business-related expenses ... like a boat? Hmmmm.

BTW, I run a small business and am GST registered .

And welcome to the Great Lakes. You'll love it. Where are you?

[BobLoucks]

Ditto that,
I also run a small business and am HST registered.
This is a personal transaction, the primary issue will be valuation. If purchased from or through a Bona Fide Broker, then the purchase value can not be questioned. Obviously wouldn't take a lower commission to play with selling price and taxes.
If purchased from an individual then they could question the value. I purchased my boat at 55% of the listed price, which CBSA checked via Yachtworld.
BTW I was easily able to rationalize the purchase price using the survey etc.
I would NOT expect a broker,no matter how good or competent, to be able to do this hence being there to clear in person proved to be extremely valuable.

IMHO much ado about nothing.

[CampDavid]

It you are registered with a GST number and have a broker do the boarder clearing the GST only will be collected by the broker not by the CBSA. If you bring it across on your own you will pay both GST and PST or the HST. If you then register the boat with the DOT ( long number ) the Province is notified. If you register as ship the Province is not informed. I SUGGEST YOU PAY ALL THE TAX AS REQUESTED.

Most customs brokers will use a reasonable bill of sale. Remember if you use a Canadian transport company
There is no GST. Maybe you can make any the offer in a creative manner.


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[mitiempo]

Originally Posted by CampDavid

Remember if you use a Canadian transport company
There is no GST. Maybe you can make any the offer in a creative manner.

Not sure what you mean by this.

GST is payable, GST registered or not. PST is payable unless you are a BC company with a Provincial tax #.

[Mike OReilly]

Sorry CampDavid, but I really don't get what you're saying. You pay GST even when GST-registered. You get to recoup it by collecting GST on the sales you make. That's how the system was designed. And your broker does not collect the GST (although he/she may do it for you). CBSA does. Your broker is simply your agent. Nothing special about a broker, except the knowledge and experience they bring. They still have to follow the law.

As far as avoiding PST, what you describe is somehow circumventing the taxes by not letting the province know about the sale/importation. I've actually seen this happen in private sales within the country. But CBSA collects both GST and PST, or HST as soon as you hit the border. They don't care whether the boat is provincially licensed (the long numbers), or federally registered ("as a ship" as you describe it). They're just involved in the importation.

[CampDavid]

My understanding is that as a GST registrant you only remit GST when importing.

Not GST and PST or Hst where applicable.

I am not saying you avoid paying PST. I AM SAYING pay the pst when requested.

If you register as a named ship it may be a long time before you are requested to past the PST.



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[Mike OReilly]

As a business owner who is GST registered, and as someone who has imported a boat, I'm quite certain you are incorrect. GST is paid whether you are GST register or not. CBSA collects both PST and GST, or HST on GST-applicable goods. They don't ask or care if you're GST registered.

There are some exceptions around non-residents who may be able to avoid paying provincial taxes in BC or Ontario, but they have to prove they are residents of another province. And there are also specific boat exemptions for commercial importers like fishers. Perhaps that is where your GST-registration is coming in. But this is clearly aimed at commercial importation. If you're importing a boat for non-commercial activities, but try to use the commercial exemptions, well, I think the law has a term for this activity, and it starts with 'F.'

Licensing (provincial) or Registering (federal) is a different process that has almost nothing to do with importation. As I recall, they didn't even ask or care if I was licensed/registered. It's true a provincial licensing application will trigger a demand for PST, whereas a Federal Registration will not, but you've already paid the taxes at the border unless you've used a commercial exemption. I do know it for a fact that some people have avoided paying PST on private boat sales b/c the province failed to invoice for the taxes. But these were sales made within Canada. No border had to be crossed. But even in these cases where no one asks for the PST, the law actually says that importers must "self-assess" their own PST, and then pay the taxes.

[mitiempo]

CBSA will collect both GST and PST at the border in B.C. They collect the PST as an agent for the province.

[CampDavid]

My point is use a Customs Broker. They collect the tax not the CBSA. . IF you are importing a boat Contact Joe Bailey at White and White Custom Brokers. Just listen with an open mind. He can save you a lot of Hassel . Camp David Out....


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