U.S. boats staying in Canada face 13% import tax
The Canadian government has begun enforcing a law requiring foreigners to pay an import tax (up to 13%) if they leave their boats in Canada year round. The E-99 permit used to allow American boaters to travel Canadian waters in the summer and then keep their boat here over the winter to get work done at a marina. But apparently you can no longer do this indefinitely. Canadian marinas stand to lose a lot of their American customers. [Simco.com]
Labels: boating regulations, Canada customs
posted by Pat Drummond @ 8/25/2012
3 Comments:
Well I feel imposing a nominal tax is good as it will help us only in other way.Loss of customer will be initiaaly but it will be fine later on. What do you feel share your views as well
13% is nominal?? I paid tax on my boat when I bought it. I pay an annual State Registration and now I will have to pay 13%, which is 7% more than sales tax for the state I live in. Sorry...I am a US resident and this drastically impacts what I will do. It is ridiculous because you are required to drop the permit off when you leave Canada. This requires one to make a u-turn at the border (when exiting Canada), re-enter Canada and drop the permit off. If you've ever crossed the border (either direction) it can be a nightmare line just to get to the point where one could make a u-turn to re-enter the country, then wait in line to get to primary inspection, got to secondary and drop the permit off, then get back in line to cross the border...This is nothing more than extortion. And...if your boat or motor (e.g., Yamaha) was made some place other than the US/Canada/Mexico, you will also pay duty (NAFTA does not apply. So I will have to pay duty on the engine as well as pay the import tax. The biggest issue is insurance. Once registered in Canada, I can no longer cover the boat with my US Policy. The difference in cost is astounding. So, you may think there will be "no impact" on Marinas...I say think again. I for one will not be boating in Ontario if they enforce this. So that is roughly $4000/year lost from one person opting to boat where they are welcomed.
Oddly, "Anonymous" writes as if he were replying to me (Pat @ Boating in Canada). I am simply reporting the news about importing boats into Canada. "Anonymous" should remember that this is a foreign country and certainly the rules of importation are no worse than any other country in the world. Similar problems and costs for a Canadian who wants to keep a boat in the U.S. I know people who juggle these rules on a regular basis so they can cruise south and back every two years without losing their health insurance or having to "import" the boat.
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