Hello Robert,
Per our discussion, I am considering the purchase of a sailing vessel, and need to understand whether it is feasible to import the vessel into Canada for refit, or to have that work done elsewhere.
-The vessel was built in France in 2001. Made in EU
-It is currently registered in the UK Channel islands via the UK small vessels registry. For CBSA purposes, where it is registered will not factor into how it is imported
-Its value is less than $250,000.
-If purchased it will be registered federally with transport Canada. (not licensed provincially). Where the vessel is or will be registered will not be of concern for CBSA.
-It is currently located in Curacao, (Netherlands territory). after having completed a lengthy cruise. The odds the vessel left the EU without ever docking or mooring aside, Curacao is not a member to the CETA Free Trade Agreement and by virtue of that alone, the vessel cannot get CETA tariff treatment upon import.
-If it is to be brought to Canada, it would likely come after first stopping in either the USA or EU territory. Self piloted vessels lose their Tariff Treatment for CETA as they will drop anchor or moor in non CETA territories while in transit to Canada. To profit from CETA or any other Free Trade Agreement, the good must come direct shipment and not tranship through any other territory unless in bond with a commercial carrier. A direct transatlantic movement of the vessel without ever entering another territory would be difficult to do.
-The boat will arrive either at a marine entry point or via truck from the USA.
-My intention is to bring it to Canada for a refit which would take approximately one year (allowing for winter) and leave again afterward. According to D8-1-1 vessels CAN be imported for storage and work under 9993 with a remission of tax even if they are temporarily imported by a resident of Canada who has not fully imported the vessel nor registered it in Canada.
| Vessels for storage – 12 months or less | The imported vessel has been demobilized, that is removed from active service, and placed in a storage facility or area. Further, the vessel may not be used as a storage facility nor as a temporary residence nor for any other purpose while it is in storage. These vessels should be documented on a Form E29B or a carnet. | Full 12 months. No extension. | Vessel Duties Reduction or Removal Regulations | 88-0357 |
| Vessels for storage – more than 12 months | The imported vessel has been demobilized, that is removed from active service, and placed in a storage facility or area. Further, the vessel may not be used as a storage facility nor as a temporary residence nor for any other purpose while it is in storage. These vessels must be documented on a Form B3-3. | 1/120th 12 months. No extension. | Vessel Duties Reduction or Removal Regulations | 88-0357 |
Memorandum D8-1-1 - Administration of Temporary Importation (Tariff Item No. 9993.00.00) Regulations (cbsa-asfc.gc.ca)
-I am a resident of Ontario and a Canadian citizen.
-The boat will be used both personally and for business (paid travel blog). If the intent is to use it in Canada, it is subject to full duty and taxes. Temp import for repair or storage is not going to be an option.
Questions:
Which sales taxes are applicable? Full taxes for the province of residence if imported personally. If the business imports it for business purposes than just GST.
Which duties are applicable? The boat will be imported MFN so full duty as per the Customs Tariff classification of the vessel.
Are there any other costs or charges applicable? Not for CBSA, just duty and tax.
Is there a provision to temporarily import the boat for refit? Yes as per the regulations in D8-1-1
Is there a distinction between personal and business use with respect to any of the above? Just the taxes to pay. Any other conditions remain the same.
Robert - one additional question- if the vessel is not registered in Canada but somewhere else - Malta, Cayman Islands, Channel Islands - does this impact importation?
Can this 'foreign' vessel simply 'visit' Canada? I suspect this is why boats are often flagged in this manner. Where the vessel is registered is not something that will concern CBSA. That is a question for Transport Canada as to whether this will be of concern to them. To cross the border into Canada we will look at the status of the owner (visitor to Canada with a residence elsewhere vs resident of Canada) which in turn will determine if the vessel comes in as a conveyance of a non-resident for temporary use or if it comes in as the vessel of a resident and therefore subject to duty and taxes to enter Canada.
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Many thanks, Dave Syer
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