Importing a Canadian built boat to Canada

[madprops]

Hi,
I'm buying a boat in the USA (Seattle), and sailing it back to Canada (Vancouver). The boat was built in Canada but currently registered in the USA.

The plan is to go down there and buy it and start sailing it back same day. Am I ok with just a bill of sale or do I need proof that the boat was deregister, or anything else on top of the bill of sale.

Is there anything paperwork wise that would stop me from sailing it back the same day I buy it?

Do I still have to pay that stupid 10% duty because of the trade war? or because the boat was built in Canada am I ok?


Ill be honest, I have read 100 different posts trying to find any answers and I’m very confused. Everyone seems to say to do it a different way. This will be my first time crossing a boarder with a boat and I just want to make sure all my ducks are in a row. I want to do the paperwork myself and use it as a learning experience.

Thanks for any help :-)

[Montanan]

You are in luck.

The 10% "retaliatory" tariff is applied by Canada for vessels manufactured in the USA, imported into Canada. This tariff is one of many retaliatory tariffs Canada has applied to US goods due to Trump imposing 10 and 25% tariffs on Canadian aluminum [aluminium] and steel imported into the USA based on Section 232 "national security". There are 229 goods from the US that have retaliatory tariffs imposed by Canada.

You are importing a Canadian vessel into the USA and thus will not have such stiff tariff due upon entry into the USA; well at least not yet, ya never know what the next tweet from the POTUS may invoke.

If you were importing the vessel into Canada you would have due the 10% tariff and added VAT on that tariff value.

[madprops]

Originally Posted by Montanan

You are in luck.

The 10% "retaliatory" tariff is applied by Canada for vessels manufactured in the USA, imported into Canada. This tariff is one of many retaliatory tariffs Canada has applied to US goods due to Trump imposing 10 and 25% tariffs on Canadian aluminum [aluminium] and steel imported into the USA based on Section 232 "national security". There are 229 goods from the US that have retaliatory tariffs imposed by Canada.

You are importing a Canadian vessel into the USA and thus will not have such stiff tariff due upon entry into the USA; well at least not yet, ya never know what the next tweet from the POTUS may invoke.

If you were importing the vessel into Canada you would have due the 10% tariff and added VAT on that tariff value.

I'm importing the Boat from the USA to Canada. The reason I’m confused is because the boat was built in Canada, then at some point taken to the USA and registered there. Now I want to bring it back to Canada, and register it in Canada

[Stu Jackson]

Actually, you are not importing anything. You are simply "returning" the boat to Canada under new management. If the boat was built in the USA you would have to "import" it. I did this last year because I moved to Canada and brought my USA built boat. You don't seem to have to.


But don't take my word for it, call these guys and ask them:


Canada Border Services Agency (CBSA)

[Montanan]

Oops, totally misread your OP. Ignore my post.

Contact Canadian Customs authorities for specifics.

I suspect that if the vessel was originally manufactured in Canada that it would not be subject to import tariffs, but then one is dealing with a retaliatory tariff regime and Canada may desire to impose trade barriers on used and / or returning goods so as to make the US market even more adverse.

Trade wars suck and don't follow ordinary logic or fairness. Not withstanding Trump's statement that "Trade wars are good and easy to win."

Copied from previous postings and websites.

"Show the Customs folks the bill of sale and the ‘Deletion From Documentation’ from the previous owner or title transfer from a State, then pay the HST on the sales price.

The boat will be assessed the tax amount on the day it crosses the border – not the day you bought it. What I mean by that is that from the time we took possession of our boat (paid for it) and the time it entered Canada was about three weeks later. During that time, the Canadian dollar actually rose against the U.S. buck, so we ended up having to pay less HST than I had initially anticipated. Plus, since we were out of the country for a few days to get the boat, I could claim the exemption entitled to me for the time out of the country and apply it to the boat purchase price."

You need Ownership and Bills of Sale for boat, trailer, and any removable accessories (outboard motors, ladders, electronics), taxes paid, and survey costs. Get separate bills of sale for each of these, as you may pay different taxes on each depending on the province you are importing them into.

Sales tax (May 2014) may be charged depending on the province where you enter into Canada. These provinces charge PST (Provincial Sales Tax): British Columbia, Saskatchewan, Manitoba (RST), and Québec (QST). These provinces and territories charge HST (Harmonized Sales Tax): New Brunswick, Newfoundland and Labrador, Nova Scotia, Nunavut, Ontario, Prince Edward Island. Lucky residents of Alberta, Northwest Territories, Nunavut and Yukon pay no sales tax at all.

Federal duty is not charged on boats manufactured in Canada, Mexico or the U.S. based on NAFTA rules, currently being changed to USMCA. (Importing is currently complicated by a new tariff on U.S.-made boats. See note at the top of the page.) With the Canada-European Trade Agreement (CETA 2017), duties on imports from a European Union (EU) country are removed or are phasing out their tariffs. Boats made in other countries pay between 5% and 9.5% duty. Most marine safety equipment is duty-free - an important reason for separate bills of sale for any equipment or accessories that can be removed from the boat. Import requirements are the same whether you enter Canada by land or sea.

For trailers less than 15 years old, you pay a RIV fee (Canadian Registrar of Imported Vehicles). If instructed to pay online, make sure the border agent sends in the proper forms for you. If the trailer came from a "non-title" state, you may need to get a letter from the state (or their website) stating that fact. The trailer must have a valid VIN, so call RIV to find out if the VIN is valid before you buy.

[madprops]

Originally Posted by Stu Jackson

Actually, you are not importing anything. You are simply "returning" the boat to Canada under new management. If the boat was built in the USA you would have to "import" it. I did this last year because I moved to Canada and brought my USA built boat. You don't seem to have to.


But don't take my word for it, call these guys and ask them:


Canada Border Services Agency (CBSA)

Thanks for the Info, Ill call them on monday and post up their answer

[Greg Mason]

When I did it, my responses were the same as yours, although I was importing a US registered vessel. Then, there was duty payable, a yearly decreasing amount, but when I federally registered it, I was told the duty was not applicable, so I take CBSA with a grain of salt, as I did when we had to inform CBSA that we were leaving Crescent Beach to enter Canada, which has now changed. I did have to de register it from the US though. Stu didn't mention that every purchase is subject to BC provincial tax and GST when you register it. You can do the math, it ain't pretty.

[Piratenorm]

Make sure the first thing you do upon entering Canadian Waters is report directly to Canada Border Services staff, without delay, do not get sidetracked and don't even head off to a washroom first. Stay on your boat and await their arrival. I would hail them to report my arrival. They take a very dim view of arrivals that do not check in with them, can seize the boat and the fines are hefty. They do not have a sense of humour. Good luck.

[madprops]

Originally Posted by Greg Mason

When I did it, my responses were the same as yours, although I was importing a US registered vessel. Then, there was duty payable, a yearly decreasing amount, but when I federally registered it, I was told the duty was not applicable, so I take CBSA with a grain of salt, as I did when we had to inform CBSA that we were leaving Crescent Beach to enter Canada, which has now changed. I did have to de register it from the US though. Stu didn't mention that every purchase is subject to BC provincial tax and GST when you register it. You can do the math, it ain't pretty.

Did you have to register it before you brought it into canada?

I'm trying to figure out if I can register it after I bring it back. it would make things a lot easier.

[Eder]

I brought my 400k boat from Seattle to Sydney...phoned CBP and paid my GST by Visa & all was good. They never came to the boat or asked for anything other than my citizenship.

I wouldn't worry about the registration, just carry the bill of sale.

[techmans]

You can't register it until after it has been imported.
So, just take the boat to a port of entry and report.They may take your money ( PST and GST) over the phone ( and mail you the paperwork).
Your passage is covered under the boat's existing registration up to 3 months.
De-registration in the US is the responsibility of the previous owner; you can't do that since the reg. is not in your name.

And since this is a Canadian built used boat the countervailing duty currently in effect would not apply.

You're making this more complicated than it is.And calling the authorities for clarification of a very simple matter is dangerous; it may set someone thinking which is what you want to avoid at all costs.

I imported an Asian built 40 yr old boat from the States 2 years ago and simply reported by the telephone on the customs dock at Victoria harbour.I kept my mouth shut as much as I could and they simply forgot to charge the import duties.My CC had insufficient room to pay the taxes so 2 guys came down to the customs dock to look at the paperwork, cleared me for the night and I paid the next morning DT and was on my way.

[Stu Jackson]

Originally Posted by Piratenorm

Make sure the first thing you do upon entering Canadian Waters is report directly to Canada Border Services staff, without delay, do not get sidetracked and don't even head off to a washroom first. Stay on your boat and await their arrival. I would hail them to report my arrival. They take a very dim view of arrivals that do not check in with them, can seize the boat and the fines are hefty. They do not have a sense of humour. Good luck.

Things may well be different on different sides of the country. In Sidney and Tsehum there are only telephones to call into the 888 phone number. In Victoria, there are officers, but they are often away from the customs dock working the Coho Port Angeles & Seattle ferries and my experience was I had to wait (this was in 2016 and the phone was broken with a sign so stating put up by the govt!). There's real people at Bedwell from May to September, but you still use the phones to call in.



Don't know the situation in Vancouver.

[Stu Jackson]

I've been looking at earlier posts I've made on this subject. Here's one, I'll go look for more.

http://www.cruisersforum.com/forums/...da-202994.html

That one is about actually importing a boat NOT made in Canada, which is DIFFERENT than the OP's question, of course.

I linked it to better explain what I did without having to retype my story!


Here's another, from this link:


http://www.cruisersforum.com/forums/...an-199890.html


Tax for boats is not the subject for lawyers. It is the subject of the CBSA, and their website, to which I provided a link.

I imported my 32 year old American boat a few months ago because I moved here in 2016 and waited until my California state registration expired at the end of 2017, all the while traveling to the USA to stay legal. I read the website. Then I asked a friend of a friend who had imported her boat. She simply confirmed what I'd learned and showed me the form they used.

Do your homework, it ain't that hard.

And you should learn about the difference, in the States, between US state registration and federal documentation. It is analogous to provincial licensing and CAN federal registration. Same words, different meanings in each country.

[Stu Jackson]

Originally Posted by madprops

Thanks for the Info, Ill call them on monday and post up their answer

What I would ask is essentially your OP: "I am buying a Canadian built boat in the USA and bringing it back to Canada. Do I have to formally import it?"


Consider adding: "I'll license [provincial] (or CAN register it) as soon as I can."



KISS


Good luck, please let us know what they say.

[Stu Jackson]

mad, another thing just occurred to me. You buy the boat from someone who has it "street legal" in WA State, under his name, not yours. Without doing a title transfer in WA State to your name, how do you bring it across? This is in response to your "I'm leaving the same day" OP.

Can you not get a BC license before you go? IIRC, it's a simple online transaction and you get the BC license # quite promptly. Buy the stick on numbers, take them with you, remove the WA decals, slap 'em on and you're a Canadian vessel.

Of course, this is a completely different subject than the import stuff.

My situation was different since I'd owned my boat for 18 years and had title and CA State registration.

I do not have answer to my own question, but I'm sure many folks have done this before.