Latest news: May 3, 2019:
The Maritime Association of Quebec mentions in a press release that the Canadian government will cancel the 10% surtax on the importation of boats built in the United States.
The surcharge will be canceled retroactively to April 30, 2019. For the moment the customs officers continue to apply it since the new directive will be in official application as from May 15, 2019. So the Searay, Regal, Cruisers Yachts, Carver, Marquis Fourwinns, Tiara, Hatteras, Monterey, and other boats built in the USA will be able to enter Canada without the famous 10% surcharge. That’s excellent news.
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The confusion over the 10% surtax is not easy to manage. The Canadian government released on Wednesday (Dec. 19, 2018) a list of US imports subject to "countermeasures", potentially indicating tariff relief on some US goods, BUT the 10% tariff on American boats sold in the country remain in force. The announcement initially created confusion, as it was interpreted as lifting customs duties on the boats, while potentially offering a refund to dealers who had already paid the 10% duty.
The National Marine Manufacturers Association (NMMA), which announced the elimination of the tariff last Wednesday, issued a correction since then to explain the misunderstanding.
"In the last few hours, our legal counsel and the Canadian government have received new information that contradicts the first reports," said NMMA President Thom Dammrich and NMMA Canada President Sara Anghel.
"To be clear, Canada’s 10% retaliation rate on US vessels is STILL IN EFFECT," said Dammrich and Anghel. "We apologize deeply for any confusion created by this situation and are extremely disappointed that the new information we shared was not correct."
Canada, Mexico and the EU announced 10% and 25% lien on several US products, including boats, in June after the Trump administration imposed a 10% aluminum from the United States’ closest allies including Canada and a 25% duty on Canadian steel. (China has added the boats to the list of products on which it would impose retaliatory tariffs.)
The brokers of Ita Yachts Canada remain on the lookout for news, but as previously mentioned, only temporary imports (Form E029B) are no longer subject to the 10% surtax.
Hopefully the situation will evolve favorably over the next few weeks.
Do not forget that you can still buy a new or used boat in the United States and if you navigate outside of Canada, there is no US or Canadian tax to pay on the boat if the boat has a Canadian or foreign flag (excluding a USA flag).
Contact an Ita Yachts Canada broker for details.
info (at) itayachtscanada.com or 514-521-1221