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Old 06-07-2015, 13:24   #1
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Duty, etc. on Canadian boat in US waters

Hi,

I'm looking at a boat that is in USA, has been in USA, but owner is Canadian and it's registered and titled in Canada (this is on Lake Champlain, which US & Canada share).

The broker tells me that his customers have not had to pay duty except when bringing in a new boat, that since this one is used, has already been brought into Canada from the Carib, it probably won't be dutiable. Hah.

Can anyone share insight?
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Old 06-07-2015, 13:35   #2
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Re: Duty, etc. on Canadian boat in US waters

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Originally Posted by Tetepare View Post
Hi,

I'm looking at a boat that is in USA, has been in USA, but owner is Canadian and it's registered and titled in Canada (this is on Lake Champlain, which US & Canada share).

The broker tells me that his customers have not had to pay duty except when bringing in a new boat, that since this one is used, has already been brought into Canada from the Carib, it probably won't be dutiable. Hah.

Can anyone share insight?
If it is Canadian registered then where it is at present shouldn't make a difference. Just cross the lake and you should be good to go.

If it was US registered you would have to pay attention to where the boat was made? As I understand it American made boats are dutyfree but when I was looking at a Nauticat (made in Finland) I was told I would have to pay duty on it.
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Old 06-07-2015, 13:49   #3
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Re: Duty, etc. on Canadian boat in US waters

Are you Canadian, too?
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Old 06-07-2015, 13:50   #4
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Re: Duty, etc. on Canadian boat in US waters

Thanks for that. I should mention the boat was made in France.

So does that change anything? Made in France, spent time in the Carib, brought into Canada and registered and titled in Canada, but lives in USA.

So I don't even have to bring it over the border...thus I suppose I'm not importing?
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Old 06-07-2015, 13:56   #5
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Re: Duty, etc. on Canadian boat in US waters

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Originally Posted by Tetepare View Post
Thanks for that. I should mention the boat was made in France.

So does that change anything? Made in France, spent time in the Carib, brought into Canada and registered and titled in Canada, but lives in USA.

So I don't even have to bring it over the border...thus I suppose I'm not importing?
Now you're complicating the question!

Go read the Transport Canada website, it has all that info so you don't get screwed by the broker. Or us!

Good luck, hope it works for you.
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Old 06-07-2015, 13:59   #6
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Re: Duty, etc. on Canadian boat in US waters

You need to do your homework and find out if the owner has paid the duty on it. Since it was built in France it will be subject to duty if it has not been "Imported" into Canada. If it has not been imported, then you will owe Duty immediately after bringing it into Canadian waters.

If you keep it out of Canadian waters, then you never pay duty as it is never imported. Importation and Duty is only paid once in the life of the boat.
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Old 06-07-2015, 14:03   #7
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Re: Duty, etc. on Canadian boat in US waters

One further thing. You need to look into whether you can keep the boat in the US (Vermont) if you are not a resident. Some states have restrictions on this. e.g. Florida only allows 1 year and then you need to leave (for 7 days I think) and come back.
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Old 06-07-2015, 14:32   #8
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Re: Duty, etc. on Canadian boat in US waters

I supposed I should be MORE clear.

I am a US citizen and the boat would stay in NY.

Assuming the duty was paid when coming into Canada is one thing, and I believe immaterial. It's the duty of being imported from Canada to USA, with the duty due in USA.

Certainly, with a flexible border I could see the Canadian flagged vessel being kept in NY, it's a 20 minute drive for the current owner. If that's the case, he wouldn't have paid US duty on it. More than likely neither Canada nor US really care where the boat is.

However, upon changing the title from Canadian to US, I'd think US Customs would want duty.

I appreciate the insight thus far and home somebody comes along that's done this.
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Old 07-07-2015, 08:27   #9
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Re: Duty, etc. on Canadian boat in US waters

There is no duty transfering a Canadian boat to US.
You will have to pay the New York sales tax only
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Old 07-07-2015, 08:28   #10
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Re: Duty, etc. on Canadian boat in US waters

If is is French built and canadian flagged, and has never beenimported into the US, which is likely the case since it was originally delivered to the caribbean, then you will need to pay duty to import it into the US in order to document it with the coast guard. Duty is typically 1.5% of the stated value of the boat.
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Old 07-07-2015, 08:38   #11
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Re: Duty, etc. on Canadian boat in US waters

Take a look at this website: 2015 HTSA Revision 1 Edition | USITC

Scroll down to the chapter on vessels. The tariff is 1.5% of the value, however, there is a special exemption for importing from Canada and there is no tariff.

If the broker says that this has not been an issue in past sales, then I would suggest that you can rely on his experience.

You can also call the Customs and Border Patrol and ask.

NY will, of course, want to be certain that you have paid sales tax when you register the boat. If you are going through a broker in NY, the broker will collect the sales tax and should take care of the registration.
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