Canadian Buying a Boat in the US

MARC D · 26-10-2009, 07:42

Hello everyone,

We are about to make an offer on an european-built boat located in Maryland. US taxes not paid.
Where can I get info on how long we can keep the boat: 1- on the hard,
2- liveaboard. Which permits do we need?

We are Canadian citizen.

Thank you,

Marc & Catherine

Vasco · 26-10-2009, 07:48

M & C,

More info is required before you can get an answer.

Do you intend to keep the boat in the US or bring it back to Canada?
How is the boat presently flagged?
What is the boat's present status in the US? Foreign flag with cruising permit?
Note that a foreign boat in the US cannot be offered for sale in the US without first paying all taxes and custom duties. This is stated on the cruising permit.
How do you intend on registering/documenting the boat?

MARC D · 26-10-2009, 07:56

Hi Rick,

We do not intend to sail in Canada.
The boat is Canadian-flagged.

I'm not sure about status but imagine this boat is on a cruising permit. Will check.

Registering/documenting? I don't know the difference.

Marc

Vasco · 26-10-2009, 08:11

If the boat is Canadian flagged and you do not intend to bring it back to Canada you will have no issue with Canadian taxes and tariffs. Just a change of ownership with the Registrar of Shipping.

As the boat is European built the note re not being offered for sale in the US applies but can be circumvented as you're Canadian.

A cruising permit allows a foreign vessel to be in the US for one year. This would answer your initial question. How much time is left on the cruising permit?

I would think a change of ownership if the boat is Canadian registered, and this is an important point, is easily done. Ask to see the registration papers, used to be a "Bluebook" but now is a yellow piece of paper. Should have all details of the boat on it, official number etc.

The present cruising permit would apply if it's just a change of ownership. The change of ownership is all done in Canada and I would think the bit about being offered for sale in the US would not apply.

Call the Registrar of Shipping in your area and discuss it with him/her. You will get the proper info on what is required to change the ownership over to you. They will not be able to answer any questions regarding stay in the US.

MARC D · 26-10-2009, 08:43

Rick,

Thank you very much for your help!

I will call the Registrar of shipping today!

Do you know if US cruising permits are State or Federal business?
I would like to ask for a full year permit.

Marc

Vasco · 26-10-2009, 08:53

The cruising permit is Federal. Homeland Security, Customs etc.(all one big department now) issues it. I would think the boat already has one if it's in the States. One hitch, it cannot be re-newed. I think you have to leave and re-enter with a two week break but don't quote me on that. I would not attempt to raise this question with the authorities as it will highlight the boat's status.

MARC D · 26-10-2009, 09:28

Rick,

I understand.

Thank you again for your time and help.

Fair winds,

Marc

Chief Engineer · 26-10-2009, 20:35

If you are in Maryland waters you have a limited time before you have to register it.

I will get the link for you.

You have to read the link.

The broker...if you have one should know this

http://www.dnr.state.md.us/boating/registration/

If the Boat is going to be in MD for principle use...you have to pay MD fees.

MARC D · 27-10-2009, 07:07

The broker told me the boat was import to USA to be sold. Then, we should be granted a 12-month cruising permit at the time of buying.(but have to check on that). The boat is (and probably will be)registered in Canada.
The broker told us there was no MD tax to pay.

Our plan is to slowly work our way south next fall to eventually jump in the Caribbean.

Thanks for the link; I will check it out!

Marc

Chief Engineer · 27-10-2009, 07:31

Marc,
There have been a number of boats at Marinaas in Baltimore that have been "hit" with taxes. These are boats that are registered in Pennsylvania with Pennsylvania numbers. The DNR "walks the docks" around here recording numbers and names.

If the vessel is going to be in Maryland waters until next year, then the Chesapeake will be your primary area of use. You might not get caught....then again you might.

MARC D · 27-10-2009, 07:48

Chief Engineer,

Oh Oh. I realize this situation is more complicated than I thought first and that I will have to check that out very carefully.

Many thanks for your "insider's" info.

Marc

Chief Engineer · 27-10-2009, 16:24

Just trying to keep you from any nasty "surprises"

Cheechako · 27-10-2009, 16:39

I would think that if it's a canadian boat and you are canadian, the purchase can just take place in Canada. It's incidental that the boat happens to be out of the country. I gave possession of my catamaran and took possession of a boat that the buyer traded in on the cat in the carribean. The papers were all done in the US. Once this is done go apply for a new cruising permit and head south....?

MARC D · 28-10-2009, 07:07

I get new info yesterday: Boat is foreign-flagged (Canada). Than not subject to MD tax. Boat was formally imported to US and tax paid in order to be sold in US.

As Cheechako said,, I have to apply for a 12-month cruising permit after transaction is done.

To be 100 % sure, I will call Boat Registration in Baltimore and let you know.

We can't wait beeing seated in our cockpit in the gorgeous Chesapeake! Oh Mi!

Marc

Vasco · 28-10-2009, 07:47

Quote:

Originally Posted by MARC D

I get new info yesterday: Boat is foreign-flagged (Canada). Than not subject to MD tax. Boat was formally imported to US and tax paid in order to be sold in US.

As Chief Engineer has noted Maryland authorities have a bad habit of walking the docks and also getting lists from marina operators and then levying taxes on boats in Maryland.

26-10-2009, 07:42	#1
MARC D Registered User Join Date: Oct 2009 Location: Quebec, Canada Boat: shopping Posts: 16	Canadian Buying a Boat in the US Hello everyone, We are about to make an offer on an european-built boat located in Maryland. US taxes not paid. Where can I get info on how long we can keep the boat: 1- on the hard, 2- liveaboard. Which permits do we need? We are Canadian citizen. Thank you, Marc & Catherine

26-10-2009, 07:48	#2
Vasco Registered User Join Date: Apr 2004 Location: Toronto in the summer, the Bahamas in wintertime. Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless" Posts: 2,441	M & C, More info is required before you can get an answer. Do you intend to keep the boat in the US or bring it back to Canada? How is the boat presently flagged? What is the boat's present status in the US? Foreign flag with cruising permit? Note that a foreign boat in the US cannot be offered for sale in the US without first paying all taxes and custom duties. This is stated on the cruising permit. How do you intend on registering/documenting the boat? __________________ Rick I Toronto

26-10-2009, 08:11	#4
Vasco Registered User Join Date: Apr 2004 Location: Toronto in the summer, the Bahamas in wintertime. Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless" Posts: 2,441	If the boat is Canadian flagged and you do not intend to bring it back to Canada you will have no issue with Canadian taxes and tariffs. Just a change of ownership with the Registrar of Shipping. As the boat is European built the note re not being offered for sale in the US applies but can be circumvented as you're Canadian. A cruising permit allows a foreign vessel to be in the US for one year. This would answer your initial question. How much time is left on the cruising permit? I would think a change of ownership if the boat is Canadian registered, and this is an important point, is easily done. Ask to see the registration papers, used to be a "Bluebook" but now is a yellow piece of paper. Should have all details of the boat on it, official number etc. The present cruising permit would apply if it's just a change of ownership. The change of ownership is all done in Canada and I would think the bit about being offered for sale in the US would not apply. Call the Registrar of Shipping in your area and discuss it with him/her. You will get the proper info on what is required to change the ownership over to you. They will not be able to answer any questions regarding stay in the US. __________________ Rick I Toronto

26-10-2009, 08:53	#6
Vasco Registered User Join Date: Apr 2004 Location: Toronto in the summer, the Bahamas in wintertime. Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless" Posts: 2,441	The cruising permit is Federal. Homeland Security, Customs etc.(all one big department now) issues it. I would think the boat already has one if it's in the States. One hitch, it cannot be re-newed. I think you have to leave and re-enter with a two week break but don't quote me on that. I would not attempt to raise this question with the authorities as it will highlight the boat's status. __________________ Rick I Toronto

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26-10-2009, 07:56	#3
MARC D Registered User Join Date: Oct 2009 Location: Quebec, Canada Boat: shopping Posts: 16	Hi Rick, We do not intend to sail in Canada. The boat is Canadian-flagged. I'm not sure about status but imagine this boat is on a cruising permit. Will check. Registering/documenting? I don't know the difference. Marc

26-10-2009, 08:43	#5
MARC D Registered User Join Date: Oct 2009 Location: Quebec, Canada Boat: shopping Posts: 16	Rick, Thank you very much for your help! I will call the Registrar of shipping today! Do you know if US cruising permits are State or Federal business? I would like to ask for a full year permit. Marc

26-10-2009, 09:28	#7
MARC D Registered User Join Date: Oct 2009 Location: Quebec, Canada Boat: shopping Posts: 16	Rick, I understand. Thank you again for your time and help. Fair winds, Marc

26-10-2009, 20:35	#8
Chief Engineer Registered User Join Date: Aug 2006 Location: North of Baltimore Boat: Ericson 27 & 18' Herrmann Catboat Posts: 2,004	If you are in Maryland waters you have a limited time before you have to register it. I will get the link for you. You have to read the link. The broker...if you have one should know this http://www.dnr.state.md.us/boating/registration/ If the Boat is going to be in MD for principle use...you have to pay MD fees.

27-10-2009, 07:07	#9
MARC D Registered User Join Date: Oct 2009 Location: Quebec, Canada Boat: shopping Posts: 16	The broker told me the boat was import to USA to be sold. Then, we should be granted a 12-month cruising permit at the time of buying.(but have to check on that). The boat is (and probably will be)registered in Canada. The broker told us there was no MD tax to pay. Our plan is to slowly work our way south next fall to eventually jump in the Caribbean. Thanks for the link; I will check it out! Marc

27-10-2009, 07:31	#10
Chief Engineer Registered User Join Date: Aug 2006 Location: North of Baltimore Boat: Ericson 27 & 18' Herrmann Catboat Posts: 2,004	Marc, There have been a number of boats at Marinaas in Baltimore that have been "hit" with taxes. These are boats that are registered in Pennsylvania with Pennsylvania numbers. The DNR "walks the docks" around here recording numbers and names. If the vessel is going to be in Maryland waters until next year, then the Chesapeake will be your primary area of use. You might not get caught....then again you might.

27-10-2009, 07:48	#11
MARC D Registered User Join Date: Oct 2009 Location: Quebec, Canada Boat: shopping Posts: 16	Chief Engineer, Oh Oh. I realize this situation is more complicated than I thought first and that I will have to check that out very carefully. Many thanks for your "insider's" info. Marc

27-10-2009, 16:24	#12
Chief Engineer Registered User Join Date: Aug 2006 Location: North of Baltimore Boat: Ericson 27 & 18' Herrmann Catboat Posts: 2,004	Just trying to keep you from any nasty "surprises"

27-10-2009, 16:39	#13
Cheechako Registered User Join Date: Aug 2006 Location: Skagit City, WA Boat: Fellippi 32 Posts: 2,205	I would think that if it's a canadian boat and you are canadian, the purchase can just take place in Canada. It's incidental that the boat happens to be out of the country. I gave possession of my catamaran and took possession of a boat that the buyer traded in on the cat in the carribean. The papers were all done in the US. Once this is done go apply for a new cruising permit and head south....?

28-10-2009, 07:07	#14
MARC D Registered User Join Date: Oct 2009 Location: Quebec, Canada Boat: shopping Posts: 16	I get new info yesterday: Boat is foreign-flagged (Canada). Than not subject to MD tax. Boat was formally imported to US and tax paid in order to be sold in US. As Cheechako said,, I have to apply for a 12-month cruising permit after transaction is done. To be 100 % sure, I will call Boat Registration in Baltimore and let you know. We can't wait beeing seated in our cockpit in the gorgeous Chesapeake! Oh Mi! Marc

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