Implication of: "Not for sale to US residents while in US waters to a Canadian"?

[pillars]

Is there anything odd to be aware of?

[JPA Cate]

Well, to me, that sentence just doesn't scan. It is probably something about avoiding importing the boat, which fees have to be paid by owner prior to sale.

Ann

[a64pilot]

Statement makes no sense, which is it? No sale to US citizens or no sale to Canadians, your statement says both

[pillars]

I screwed up the title. Should say:
Implication of: "Not for sale to US residents while in US waters" to a Canadian?

[a64pilot]

It's almost certainly a tax thing.
You need to ask, but my guess is your fine

[Bean Counter]

https://multihullcompany.com/article...resident-mean/

[sailpower]

The actual legal statement is "not for sale to US RESIDENTS while in US waters.


It has nothing to do with citizenship, Canadian or otherwise.


It means that US duty has not been paid so the boat cannot be sold to anyone who is a US resident regardless of their citizenship.


This disclaimer is required to be visibly posted on any vessel offered for sale in the US when US duty has not been paid.


The vessel is not even to be shown to US residents.


Brokers violate this all the time but that is the law.


There is a political effort going on now to allow these boats to be sold here and the duty then paid by the buyer.


Good chance it will pass.

[olaf hart]

So if an Aussie bought a boat like that in the US, how long could you keep it in the US before it was liable for duty?

Do you still get hit for state sales taxes?

[sailpower]

Originally Posted by olaf hart

So if an Aussie bought a boat like that in the US, how long could you keep it in the US before it was liable for duty?

Do you still get hit for state sales taxes?

A non US resident could buy that vessel but I don"t know without looking it up how much time they would have to remove it duty free.


State sales tax is separate from federal customs so it would depend on what state the boat was in at time of purchase.

[Dsanduril]

As has been said, it is just legal sophistry. I have no alarm, we bought our boat in New Zealand while it was advertised as "not for sale to NZ residents while in NZ waters." Pretty much the same thing - the boat was owned and registered in Switzerland and sale to a Kiwi in NZ waters would have generated a duty/tax bill of ~20%. But Kiwi rules are such that it could be sold to a foreign citizen in NZ and that foreigner can then inherit the temporary import exemption of the seller. As long as the buyer gets the boat out of NZ before the exemption expires no duty/tax required.

Australia has similar requirements that are much tougher to circumvent so you will frequently see similar restrictions about sales in Oz to Oz residents. And then there's VAT status in Europe..... The boat market is very international and it's all about avoiding the tax man, in some cases very clear cut and above-board, in other cases more gray, depends on the situation of buyer, seller, boat, and country of transaction.