Importing a sailboat into Canada

[leveramikes]

Purchasing a sailboat in Canada would be great, however very limited selection of pre owned boats. I have found several sailboats I like in the USA. I'd like to import a boat into Canada for use ion Canadian waters. Looking for info on taxes and possible duties. I have read no duties on USA manufactured boats. I have read 5% GST is applicable, I have been told Provincial tax and Federal tax is due upon importation. Anyone been through the import process recently. Looking for advice please.

[Stu Jackson]

Yes, I did it just two years ago. I bought my boat in 1998, US made Catalina 34. Sailed her up to BC in 2016.


1. Obtain at least three "comp" advertisements for your boat. Present these to the agents.



2. I found four or five of them for the exact year and model of my boat.


3. They looked through them and asked me what I thought the value was. I picked one in the middle and had found as many as I could for a LOW as I could.


4. In BC, the import tax was GST/HST 7%, PST 5%, total 12%.


5. They'll give you a form BSF715


6. Canada Border Service Agency (CBSA) - this is a different office than the guys who check you into the country (Customs and Border Patrol - CPB)


I went to Nanaimo by car without the boat. They were surprised I didn't have the boat, but I explained that when I'd called they said "Sure, we do boat imports," but no one told me to bring the boat!


I brought my old California title and my brand new BC license - paperwork to prove I owned the boat.


It was pretty simple, but time consuming, because this office didn't do this regularly and when we got there they were at the airport for an incoming flight, so we had to wait a looong time.


Nice folks, all in all, just keep your cool.


There is also an office in downtown Victoria, but far away from the waterfront.


Good luck.

[Mike OReilly]

I did it about eight years ago, so not so recent. But the same process as Stu outlines. It was very easy. I just sailed mine back to Canada, and reported at my normal customs office. Told them I was importing the boat. They confirmed it was a North American boat, so no duties. If it had been built outside the NAFTA zone it would have been an additional 9.5% duties.

Showed them my bill of sale, filled in a form, and paid my 13% taxes (Ontario PST is 8% + 5% GST). Maybe I presented our de-documented document from the USCG, but it was easy, peasy.

Not sure if the new NAFTA has changed anything about this. Might want to confirm, but I doubt it (since very little changed except the name anyway).

[leveramikes]

Thanks Stu. I've been researching hi & lo. What I have gleaned is USA mfg boats can enter Canada duty free (free trade agreement). However, HST is due (15%) payable upon entry to the CBSA. Question 1. How do they determine the value. Is my bill of sale (notarized from a broker) enough. Why would I present the "comp ads" to the agents? These will be significantly higher than my purchase price. Thus I'd have to pay a higher amount of tax.
Question 2. The boat I'm purchasing is made in China. I presume it was imported to the USA by the manufacturer (Outbound) or by the first owner. In this case is the boat considered a USA boat and exempt from duty? Thanks all.

[leveramikes]

Mike can you answer Question # 2 in my second post. Thanks

[rbk]

Originally Posted by leveramikes

Mike can you answer Question # 2 in my second post. Thanks

No it is not as it was still manufactured in China and US duty covers the US not Canada and they want their piece if the pie. Each country has its own duty amount assigned. Taiwan is 12% if I remember correctly, you’d have to check with customs to see what import duty for China is.

[leveramikes]

rbk thank you. How do you like your T37. I'm looking at a T4100. Any comments?

[rbk]

Originally Posted by leveramikes

rbk thank you. How do you like your T37. I'm looking at a T4100. Any comments?

=Tayana 37, use shortened version for privacy sake. Love it. We had some Tartans on our short list as well. From memory most have a good reputation. Where about in Canada are you importing too. If it’s West coast you may have more options ie keeping state side and keeping US registered.

[Stu Jackson]

Originally Posted by leveramikes

Thanks Stu. I've been researching hi & lo. What I have gleaned is USA mfg boats can enter Canada duty free (free trade agreement). However, HST is due (15%) payable upon entry to the CBSA. Question 1. How do they determine the value. Is my bill of sale (notarized from a broker) enough. Why would I present the "comp ads" to the agents? These will be significantly higher than my purchase price. Thus I'd have to pay a higher amount of tax.
Question 2. The boat I'm purchasing is made in China. I presume it was imported to the USA by the manufacturer (Outbound) or by the first owner. In this case is the boat considered a USA boat and exempt from duty? Thanks all.

Mikes, I gave you my experience. I said I bought the boat in 1998, so a Bill of Sale would make NO sense for me to show them, 'cuz it was a LOT more than what comps are for it now. That's also why Mike O said he used his Bill of Sale, and why I didn't.


Your Bill of Sale has a number of $$$s, right? If you have a separate title or other proof of ownership than just the Bill of Sale, you may be able to find comps that are less than what you paid for it, thus less import tax. In your case, as you say, your BoS will be less, so go with the lower #.



If it is not a US made boat, you'll most likely pay more, regardless of its "import" into the USA.



"...In this case is the boat considered a USA boat and exempt from duty? ..."



How much more? I have no idea. CBSA website or a telephone call would be a logical next step for you.


Good luck.

[Stu Jackson]

Mike, to add: when we first came into Canada (Sept 2016), I told CBP I was visiting, so didn't pay the tax until sometime later. One main reason was that while my wife and I both owned the boat together, she is a Canadian citizen and I was not. I became a permanent resident (May 2017). Then we licensed the boat in BC (November 2017), after sailing with the US flag and California DMV registration, i.e., NOT a US documented boat, (which expired Dec 2017) for a year and a half. Then we formally imported it (March 2018).


I know folks who still have their vessel US flagged here in my marina but eventually paid the import tax because they knew they were staying in Canada but wanted to keep their US documentation on their boat.



The CBP do talk to the CBSA!!! So you need to get your ducks in a row if you're planning to cross the border between, say, our Gulf Islands and the San Juans, which I do regularly. I was fine going back & forth with my US/California DMV stickers, but once I got my BC license, CBSA knew I hadn't "yet" imported it.

[deblen]

https://www.cbsa-asfc.gc.ca/import/imp-mar-eng.html

[pcmm]

Importing into Canada is relatively simple, specially on the great lakes . You need a notarized bill of sale, Some form of proof of ownership. (in my case I had already registered my vessel with transport Canada) If the boat is not a NAFTA boat then you're going to have to pay duty in addition to taxes. but the process on the great lakes is very simple. Just call customs when you land. talk to them on the phone and explain that you are importing your boat, They'll ask what you paid for it (be honest here) then ask for your CC number and charge the tax to your credit card, give you some confirmation numbers for the importation as well as entering the country and you're done. A week later you'll get a record of transaction in the mail with your CC receipt. That's it couldn't be easier!

I did this 4 years ago when I brought my Morgan Out Island across the border. They didn't even flinch when I told them the price $5800 (and yes I did actually pay that for it. I had to put a new engine in it to get it across the boarder but that's a different issue)

[Mike OReilly]

Originally Posted by leveramikes

Mike can you answer Question # 2 in my second post. Thanks

I guess you got your answer.

Not that I would ever suggest you ignore the law, but if you tell the customs office the boat is an Outbound, which is an American company, they may not probe any further.

As far as the valuation goes, I suspect it depends on the agent, but my bill of sale was accepted without question. I don't even think it was notarized, although it was a formal looking document produced by a broker. I suspect that as long as you present a reasonable value, most agents won't question it. Of course if you try and tell them you bought the boat way lower that it's obviously worth, this will raise all sorts of red flags, and they'll investigate further.

[leveramikes]

Great info/advice from all. Great site too! Big thanks.

[Niall leslie]

You'd better do it quickly if you are going to.
The Canadian government is in the later stages of approving the new wealth tax which will impose a 10% tax on privately owned boats, cars and aircraft of over Can. $100,000.
The tax will be payable on the whole amount, not just the portion over $100,000 and will be a double taxation system applied before HST etc. which, for example in ON. will mean 24.3% total tax on any boat imported over Can $100,000 excluding any duty payable.
Cheers,
Niall.