Purchasing a Canadian reg boat in Mexico

[Andrewpatrol]

Hi, I’ve found a boat I like the look of in Mexico (LaPaz) and it’s Canadian registered.

What would be the sticky legal bits in buying it? I’ve heard of the TIP. Can I leave it reg as Canadian being an Aussie? Or transfer to Aus? I’d be “exporting” it after a few months ocean prep.
Is Sea of Cortez a good place to prepare a boat expense wise?

Or Would it make better sense to build a shopping list then go to San Diego and have stuff shipped to LaPaz or just buy items/order there? I’d be looking for things like a life raft and SSB for starters.

I’d be looking at doing this about end of July which I know is still mid hurricane season but would it be feasable, day sailing from LaPaz and using it as a hide hole while I prepare boat?

Thanks for reading such a varied range of questions.

[imus]

La Paz Cruisers Supply used Anacortes Marine Documentation to settle all these issues. You might check in with one of them.

Cheaper to buy materials in the US and take them to Mexico, rather than buy them in Mexico. Labor is much cheaper and La Paz and Ensenada are the two ports with the most skilled labor. You can hire local companies to do project/refit management if you are away.

[Discovery 15797]

Buying a foreign registered vessel in a foreign country is NEVER a straightforward process.

Check out this thread, esp. comments by SV Third Day https://www.cruisersforum.com/forums...o-42405-2.html

[Montanan]

IF, the vessel is under a temporary import permit in Mexico, it will likely need to be imported before it can be sold in country.

There may be a customs tariff / duty depending on where the vessel was manufactured. The USMCA trade agreement seemingly would apply. United States / Mexico / Canada.

All USMCA-compliant products “definitively” imported into Mexico are no longer assessed the customs processing fee (CPF). Products temporarily imported for processing and re-export may be subject to the CPF since the imports are not considered “definitive.” that is goods under a TIP or an ATA Carnet.

In addition, Mexico has a value-added tax (IVA) on most sales transactions, including sales of foreign products. The IVA rate is 16 percent for all of Mexico. Basic products, such as food and drugs and some services, are exempt from the IVA.

If the boat has a dinghy [canoe, kayak, etc.], it will need to have its own TIP and will be imported as a separate vessel, unless it is of the type that can be rolled up and placed into a bag.

The Bill of Sale should detail ALL of the appurtenances that come with the vessel, a very long list of items, sails, electronics, anchors, etc..

As to flagging, since you are Australian the vessel will need to be deregistered from the Canadian registry. Be sure to obtain a title search of the Canadian vessel to be assured of its ownership and that it is free and clear of any and all liens before you purchase the vessel. Figure out the procedures and documentation for deregistration of the vessel from the Canadian vessel registry. Be sure to obtain the original documents for the deregistration from Canada as you will likely need such to register the vessel with a new nation's registry.

Presumably, you can flag the boat with Australian nationality or pursue an open vessel registry after you purchase the vessel. Figure out all the details before you purchase the boat so as to expedite such as best as you can.

As to the vessel's TIP, [assuming it has been issued one and that it is not expired], such TIP will need to be cancelled and a new TIP pursued when the change of ownership occurs. The prior owner will need to return their TIP so that its change of ownership / exportation status can be recorded. BE SURE THEIR TIP IS RETURNED SO THAT THE TEMPORARY IMPORT IS CANCELLED. Obtain documentation of the cancellation of the TIP. The prior owner's TIP may need to be returned when the vessel is imported and cleared through Mexican customs to provide for its sale in Mexico. Be sure to obtain original documents of the importation clearance of the boat through Mexican customs and the payment of any tariff duty and IVA.

To obtain a TIP, you will need to have the boat and the following paperwork with you. You need to have the original AND a copy of each of these items as you will be asked to turn in the copies in order to get your permit.

Passport or Passport Card
FMM, temporary resident or permanent resident visa
Boat registration or title This could be problematic as it takes a long time to deregister and register a vessel with a foreign flag nation.
Motor serial number
If there is a lienholder on the boat, you will need to have a letter from the lienholder granting permission to take the vessel to Mexico

Boats registered under a family trust will not be accepted even if your name is on the trust. All vessels must be owned by a person or company only. If the vessel is registered under a company, you will need to present a letter of authorization on company letterhead granting permission to take the boat to Mexico.

The fee for the temporary import permit does not cost much and can be paid in pesos, dollars or by Visa or Mastercard. The permit is good for 10 years (and is good for multiple entry). TIPs can only be extended one time, therefore the maximum amount of time that a boat can have a valid import permit for Mexico is 20 years

If the temporary boat importation permit, you must go to the police as a stolen document. You can then take the police report to Banjercito where they will cancel the old TIP and reissue a new TIP (the owner will need to pay again).

Now as to you:

Forma Migratoria Multiple (FMM) or Mexico Tourist Card is a mandatory document for Australian travelers. Although Australian citizens are eligible for a visa-free entry to Mexico, they are still required to apply for an FMM.

When do Australian nationals need a visa for Mexico?

Australian passport holders can travel to Mexico visa-free if the purpose of their trip is tourism, leisure, family or relatives visit, business, or short voluntary work (as long as it is not the main reason for traveling).

Australian citizens are allowed to stay in Mexico without a visa for a maximum of 180 days (6 months).

A Mexican visa is required for Australian travelers who wish to stay over 180 days, work, study or reside in Mexico. The Mexican government offers several different visa types for Australians, such as:

visitor visas
business visas
work visas
study visas
temporary resident visas
permanent resident visas

Australian citizens are required to apply for a visa through the nearest Mexican embassy or consulate.

[Andrewpatrol]

Thanks all esp Montanan. Seems a process but doable - eventually.
What’s the go with buying a life raft and SSB in the States, as far as taxes, and me bringing it down to LaPaz by bus.?

[Marathon1150]

A couple of things.

1. Its stinking hot in La Paz in July. But, I once rode a motorcycle from Melbourne to Canberra and passed through Bendigo, not too far from where the OP seems to be based, and I remember it being rather warm. So La Paz in July may not be a big deal.

2. As noted by others, boat gear is significantly cheaper in the US than in Mexico. A bus ride from the US to La Paz would be an adventure. Its hard to know if the SSB and liferaft would garner attention at the border but even with the boat's TIP (Temporary Import Permit) in hand, which theoretically allows for the duty and tax free importation of goods, the limit seems to be in the $300 to $400 dollar range and you might get hit for duty and tax. Mexico uses a green/red light random draw system to determine who is going to be inspected, but on at least one occasion, despite getting a green light the customs people at the airport wanted to know what was in the big box. It was an Engel freezer and I argued that it was for "camping" and the import rules allow for duty free importation of camping gear by tourists.

3. There is a highly recommended agent in Ensenada. Michelle at BC Connections gets very strong recommendations from cruisers in La Paz who are doing what you intend to do. Her website is at: https://www.bcconnection.com.mx/

4. An earlier post in this thread mentions a thread started by SV Third Day. The owner of that boat used to be, and probably still is the proprietor of La Paz Cruisers Supply. Rich is super helpful and can probably point you to an agent in La Paz named "Yolanda" who also does good work.

5. One thing to watch out for is the requirement for the previous owner to cancel their TIP for the boat. I first encountered BC Connection because this problem came up on the Facebook group "Sea of Cortez Sailors" (worth joining for all manor of information relevant to sailing in the Sea of Cortez).

The Sea of Cortez and Baja in general are wonderful from all perspectives - amazing ocean, great people, outstanding food. You are likely to enjoy being there.

Good luck.

[Montanan]

I suspect you will need to declare such at Mexico's customs but am unsure if there will be taxes do, be prepared to need to pay such.

I would engage an import broker with marine expertise as to the conversion of a TIP vessel to a vessel to be sold in Mexico. That should be the seller's responsibility as they are the importer of record. You as the buyer are NOT the importer of record. The duty and fees are on the prior owner.

Mexico revised many of its importation rules in 2014 and some of them can be a shocker when you cross the border. Most personal import items are subject to 16% IVA, but tobaccos and alcohols can really sting. Do not bring tobacco or alcohols.

I am not certain what the lastest importation values and procedures are especially under the USMCA.

A useful reference link: https://www.sat.gob.mx/home


Cross-border transactions will qualify as Small Imports have been under $3000 and the classification and country of origin will not apply. If you are looking to import more, I found an excellent duty HS machine online that provides the correct importation code, then you click "Calculate Duty" and it provides a breakdown of what duties will be due. It gives you two free calculations before it asks you to join up for a fee.

http://www.dutycalculator.com/

Passengers may import merchandise, other than their personal baggage, without hiring a Customs broker, paying the general tax of 16%, provided that the value of merchandises, excluding duty-free allowance, doesn’t exceed 3,000 USD or the equivalent in MXN currency, and provided that the passenger has the invoice, sale receipt, or any other document expressing the commercial value of merchandise.

When traveling you are allowed to enter the country with one computer per person. If new, it will be assessed at the invoice value. If used, it will be assessed at a minimum $350 value for the 16% IVA.

The Small Importation

This applies to personal use imports of the equivalent of $3000USD or less. No duty applies, just the 16% IVA and the transporter's fees.

The term "country of origin" does not mean where it was purchased, it is where the final assembly or production of the product took place.