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Old 04-09-2013, 19:24   #1
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Canadian boat in us water permanently?

I'm a dual US/Canadian citizen. I own a Canadian flagged sailboat that I kept in Canada for 8 years. Now I have brought the boat to the US, on my eventual way South. In the meantime I need to do some serious work which may well go over my cruising permit time. I'm in Delaware so it's not a short hop to go out of country for a few weeks.

Previously I have been told that as a US citizen I can keep the boat here permanently. And that others here have done that same thing. But I can't find the thread where that was discussed.

I'm hoping that there are some others here with a similar situation that know the ins and outs of customs and who can provide some "local knowledge."
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Old 06-09-2013, 17:11   #2
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Re: Canadian boat in us water permanently?

The IRS website should have some answers. Normally the boat would be re-registered in the country of residence but I assume you're trying to avoid paying taxes on that possibility.

Oh wait, you have dual citizenship. Naah, probably no issues there at all. The locals should have a better answer.
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Old 06-09-2013, 17:45   #3
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Re: Canadian boat in us water permanently?

key question might ,.. boat us or canadian flagged?
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Old 06-09-2013, 18:17   #4
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Re: Canadian boat in us water permanently?

canadian
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Old 06-09-2013, 19:18   #5
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Re: Canadian boat in us water permanently?

Your citizenship is completely irrelevant. If your boat is a tax paid, Canadian registered vessel, it is at home in Canada, when in the USA it is visiting the United States and subject to the same rules as any other Canadian vessel visiting the USA.

The rules that apply to you and your boat are two different issues. If you have a Captain for your boat of any nationality, the rules that apply to him are separate and distinct from those that apply to the vessel.

In my case I am Canadian and have a tax paid, USA registered vessel. It is at home in the USA and when I come home to Canada, it is visiting and subject to the same rules as any other USA vessel visiting Canada.
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Old 06-09-2013, 19:25   #6
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Re: Canadian boat in us water permanently?

Given you are a dual citizen returning to the USA. You may be able to import the boat to the USA tax free under the personal belongings exemption. It should be treated the same as your furnishings or any other personal property.
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Old 06-09-2013, 22:21   #7
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Re: Canadian boat in us water permanently?

As a US citizen you are allowed to own a foreign flagged vessel and with it being CDN flagged, all you need to do is apply for an annual cruising license which can be renewed annually without having to visit a foreign port.

Resident aliens may apply for successive cruising licenses if their foreign-flag vessel was made in the U.S. or if duty has been paid on its importation provided that the vessel is documented under the laws of one of the countries listed in 19 CFR 4.94(b). Under CBP policy, non-U.S. residents are not eligible for successive cruising licenses. A new license will not be issued unless the following two conditions have been met: (1) at least 15 days have elapsed since the previous license either expired or was surrendered, and (2) the vessel arrives in the U.S. from a foreign port or place. (Customs Directive 3130-006A) CBP will want to see foreign clearance paperwork as evidence that you are arriving from a foreign location.
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Old 07-09-2013, 07:44   #8
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Re: Canadian boat in us water permanently?

MCM and all thanks.

This seems to be an esoteric subject with some different opinions. Perhaps based upon interacting with USCBP folks who have varying knowledge.

I have heard others say they stay in the US indefinitely, but was not sure of the mechanism.
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Old 07-09-2013, 07:55   #9
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Re: Canadian boat in us water permanently?

Krawdad nailed it right on.
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Old 07-09-2013, 11:32   #10
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Re: Canadian boat in us water permanently?

Krwadad, if you bring a US registered vessel into Canada as a Canadian, GST and PST are payable on it's first entry , payment of taxes in the US does not exempt it from CDN taxes. If foreign manufacture, duty may also apply.
Vessels do not qualify under personal private property tax and duty exemption unless immigrating .
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Old 07-09-2013, 12:05   #11
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Re: Canadian boat in us water permanently?

MCM, I believe the OP was trying to get his head around the tax implications and whether dual citizenship might somehow be worked to an advantage. I think you are mixing cruising in the US with permanent importation of a vessel to the US. I agree with the second paragraph but these rules address/reflect reporting requirements (ie: what is required of foreign and domestic vessels to cruise in US waters) not permanent importation of a foreign vessel.

With regard to your first paragraph, I also agree as it applies to cruising but not importation. Were this true then every US citizen could simply buy a boat from any foreign country and import it into the US permanently without having to pay any duty or tax whatsoever. Why would anyone then ever buy a boat in the US?

In Hpeer's case, it matters not as to which of his two hats he wears, US or Canadian. If he maintains the Canadian registration he will be subject to the cruising rules / reporting requirements as you pointed out and under which he is currently cruising. (inconvenience versus no tax). However, if he decides to import & register it in the USA he will be subject to tax and duty but escapes the inconvenience of having to leave the country for 15days every year by putting on his US citizen hat.

I believe the latter is his best solution, he can take advantage of the favourable cruising permit granted US citizens and there should be no duty if it is a NAFTA vessel. As well, he is already in Delaware so there is no State tax.
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Old 08-09-2013, 05:44   #12
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Re: Canadian boat in us water permanently?

Actually I had not considered the tax implications.
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Old 07-05-2014, 19:18   #13
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Re: Canadian boat in us water permanently?

I'm bumping the thread to see if there is any new information out there.

I'd like to do a little research before talking to authorities. Also my understanding is that different regions interpret the rules differently, so knowledge local to the Philadelphia/Wilmington jurisdiction is helpful.

My situation is that I brought the boat down last summer and have had her on the hard as I work on her. We are refitting and then want to cruise the Chesapeake for a while.

I have a cruising permit that I'll expire in August.

Worst case is I'll have to go somewhere for a bit and come back. Nova Scotia, Bermuda, Bahamas? All sound alluring.

But I'd rather just keep here here. NO intention of moving to US registry, none.

Anyone with recent experience in a similar situation?
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Old 07-05-2014, 19:28   #14
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Re: Canadian boat in us water permanently?

If you keep it in the jurisdiction in which your current cruising license was issued, you can stay there and cruise that area without renewal, once you move out of that jurisdiction, you must renew according to the regs.If you choose to stay in that same jurisdiction and the license expires I suggest you surrender the ownership to the local CBP office until you decide to renew.
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Old 07-05-2014, 19:46   #15
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Re: Canadian boat in us water permanently?

Ok, I don't understand. " jurisdiction"

Do you mean where the field operation office is?

Also when you say " renew according to the regulations" I assume you mean take her out for 15 days?

Thanks for the reply.
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