Buying a boat in USA.

R

RobTufnail

Guest
Hi there, does any one have the skinny on bringing boats up from the states? I know you have to pay applicable taxes and have bills of sale, what else? Any info would be greatly appreciated. Thanx alot!
 
Hi RT, I purchased my boat in Oregon this year and it was a breeze. I am copying an email to another fellow who was referred to me by the dealer I purchased mine from. I forgot to mention in my email that there is no Duty if the boat was built in the USA.
Here goes:

1. Make sure the Purchase Agreement breaks down the price of the boat and separately, the price of the trailer.

2. Have John get you a letter from the trailer manufacturer confirming that there have been no recalls on the trailer (very important)

3. Bring along a copy of the money wire transfer document from your bank to verify what you paid. If you don't wire the funds the boarder guy when entering the US will detain you for bringing more than $10K cash in the US. I don't know how they treat a Bank Draft, I would think that is ok as I am sure that it is cash that they are worried about. I suppose a copy of the Draft for the boarder guys would replace a wire transfer doc.

4. Bring along a photo copy of the boat listing to show that you paid close to what the boat was listed for. The boarder sees lots of guys trying to produce a Purchase Agreement for a $75K boat for $30K, in order to beat the taxes.

5. I almost forgot something really important but John wouldn't. You need a copy of the deed for both the boat and trailer signed off by the previous owner.

With the above, it took us 20 minutes in total. Yes, you pay the GST and PST on the boat at the boarder and you pay the RIV fee on the trailer as well. (Registrar Imported Vehicles) They take MasterCard, Visa, etc....

Striper Sniper
 
Sniper is right on.
I bought my boat last year in the US and had not trouble bringing it home.
Just do not get greedy about the value the border wants thier tax.

MJ
 
We had a discussion on this topic either on this board or on the Arima User Group board in May last year. Can't find a quick link to it but if you search you may find it. In the meantime here is a copy of the report I wrote back then. Hope this helps.

Here's a handy link to The Registrar of Imported Vehicles:
http://www.riv.ca/english/html/how_to_import.html
These people are quite informative (and they are in the office until 8:00 pm
our time, which makes it easier to get in touch. I reccomend you give them a
call.

The process at the border was quite painless. Took about 45 minutes. Customs
was helpful and knowledgeable! BUT, that came about because I had done the
research ahead of time, phoned them (and RIV) and had ALL the paperwork. I
emphasize this because, while I was there, they did turn around and send
back to the US another guy because he didn't have enough paper - bills of
sale and the like. (This was at the Truck Crossing by the Peace Arch.)

The process I went through was:

1. Make the deal and buy the boat, after mechanical check by a mechanic and
a sea trial.

2. I had discussed the potential purchase with my insurance agent and
obtained the necessary forms for insurance coverage on the boat. I completed
the forms with required info, e.g., the boats HIN - hull identification
number, length, etc., and faxed the form to the agent.

3. Because I was in Tacoma and relatively close to the border, I drove back
to White Rock and obtained a bank draft to pay the vendor. I also purchased
from an ICBC agent a "binder" policy on the trailer to provide temporary
insurance and licensing in BC (about 30.00). You may be able to buy this
'binder policy' over the phone from your ICBC agent from wherever you make
the purchase. Check with an agent.

4. Returned to Washington and bought a "transit permit" from the State
Department of Motor Vehicles to allow me to use the trailer in Washington.
If you buy in Oregon, my understanding is that you would need to get a
"transit permit" from both Oregon and Washington. I think it was about
24.00. You can find info on their State DMV websites. The only thing they
asked for was my drivers license and the 24.00, didn't matter if it was a
trailer or a car.

US Customs requires you to declare when you bring in more than $10,000.00
US. When I went back down I declared it to the guy in the booth, but,
because it was payable to the vendor and had not been endorsed, he didn't
consider it to be a negotiable instrument. Doesn't hurt to declare it and
even if they change their minds and want a paper trail, it's only a 5 minute
deal.

5. Return to border with boat and trailer:
Have title papers, for boat and trailer. In Washington they have a title/registration form for
the boat license that is an 'official' document. It has to be signed off by
the owner.
The trailer will have it's own official title papers, which again has to be
signed off by the owner.
Make sure you get these and that they are signed off.

Bills of Sale. You will require two.
The first should cover the boat, motor, and any other gear attached to the
boat (radio, depth sounder, downriggers etc.).
The second bill of sale is for the trailer only.

At the border Customs will charge you the GST and PST on the value of the
boat plus the GST on the value of the trailer. They will also charge you a
fee of $209.00 for the vehicle inspection. Yup, it adds up. The only good
thing I can say is they take Visa or Mastercard.

Although I wasn't asked for it, I have heard of people being asked to
document the actual payment made for the boat/trailer purchase. This would
be covered by having a copy of the bank draft or whatever that you issued to
the seller. Presumably they reserve this in case somebody tries to lowball
them on the purchase price to reduce the GST/PST (which I admit I thought of
doing, but decided against even trying believing the importing process would
be fraught with enough difficulty, and also did not want an insurance hassle
in case something did happen on my way home).

Once home the RIV sent me a form - which, when I had not received it after a
week, I phoned them and they e-mailed it to me. Take this form, plus your
other papers and the trailer, to a Canadian Tire store (they have the
exclusive contract for vehicle inspections) for a 15 minute check over. Make
sure reflectors are all in place, they don't care if the lights work as long
as the reflectors are in place. They also check the VIN number on the
trailer, manufacturer's load rating, and tire rating and a couple other
items. Not a problem to pass. No charge at Cdn Tire, but you already paid
RIV 209.00 for the inspection.

Once Canadian Tire gives you a pass and the appropriate paperwork, you can
then go to an ICBC agent and get licence plates for the trailer. At this
time you pay the PST on the trailer.

You also have to trot off to "Service Canada" (Blanshard Street), who, as of
April 4th, are taking over boat registration from Canada Customs. Surprise,
no charge for registering the boat. They issue the 14K number.

If you buy an Arima, 1999 or older and it has a 'factory' trailer, it may be
a Calkins trailer. One of the requirements of importing the trailer is that
you have a Recall Clearance Letter from the manufacturer. Unfortunately
Calkins went out of business in 1999. What I did was do a Google search for
Calkins Trailers and you should turn up a story from the Spokane Journal of
Commerce (from 1999) about Calkins closing up. I printed this and included
it in my paper package. When I got to Cdn Tire for the inspection they ask
for the Recall Clearance Letter. I had them call RIV for a recall clearance
letter Waiver form, which they immediately faxed to Cdn Tire. I filled the
form out, attached the news story I had printed out, added that I had done
web and phone book searches but was unable to contact Calkins. This
satisfies everybody.

Try to make sure the Manufacturer's decal with load capacity and VIN number
are still attached to the trailer. I'm not sure what the procedure would be
if they are missing.

After the trailer passes inspection and Cdn Tire sends in the paperwork to RIV you will receive a new "approved" decal to attach to the trailer in a week or two.

To keep the paper trail clean, double check to make sure the VIN on the
trailer and the HIN on the boat are correctly recorded on the owners title
papers and bills of sale.

I think I hit all the bases, but I would suggest you talk to Canadian
Customs, Registrar of Imported Vehicles, and insurance agent before setting
out. I found them all to be helpful, and importing boats and trailers into
Canada is not unfamiliar to them.

For making payment in the US I would talk to your bank. I couldn't come up
with a simpler - or safer - method than as I described above. If you
purchase the US Funds before you go, then decide not to make the purchase
when you try the boat, you are then stuck with a large amount of US money
which you may have to sit on or sell back to the bank (at a loss of 4-5%).

I was dealing with a private seller so as part of the deal he agreed to
deliver the boat to me in Blaine, which cut down my travel time a lot.
Perhaps you could make a similar arrangement to get it delivered at least
partways. Or, if you are buying from a boat dealer, perhaps they can be more
accomodating (put it all on Visa?).
 
Now is the time to be looking.
When I bought my boat last year I think I paid .12 to .14 cents premium on the exchange. This year, when I bought my truck I paid .075 cents. Just checked the RBC exchange converter and the premium is .0312 cents. Not wishing I had waited but the more than .04 cents change since I bought the truck adds up to more than 1200.00.
Oh well. Win some, lose some.
 
Time - Now the $64 question...How much, %-wise, do you think you saved by buying in the US?

Thanks, Tom
 
% saving on the boat?
Who knows. The boat I wanted and bought is not readily available on the used market in Canada so I didn't have any comparables, but I think I could have resold it and made a few dollars (even after paying the PST & GST.

You have to first figure out what you want, then research for comparables. Check boattrader.com or iboats for US pricing. For recreational fishing boats also check the classifieds on a couple of US boards, Ifish (Oregon) or Piscatorial Pursuits (Washington).

Good hunting.
 
Did you buy an Arima, Time? I was looking at a used one here on the island this year but hesitated 'cause I didn't know too much about it.
T2
 
Thanx everybody, this will be a great help. The exchange rate is a real bonus!!
 
Yes, I did T2.
Not sure what size you were looking at but I got a Sea Chaser 16 foot. Has a 7 1/2 foot beam and probably as large a cockpit as you can get into a boat that size. Deep, flat floor, and enough stowage room I'm not tripping over stuff. Pretty happy with it. Haven't found a fault yet that I would change. Like all Arimas it won't cut the chop like a Double Eagle, for example, but while fishing, either at trolling speed or drifting, I think it is more stable. Fishes 2 comfortably, 3's ok. Worth taking a look at, imho.
 
I was looking at a 19 ft Arima that an eldery gentleman was selling because it was getting too much for him to handle. (Always a little sad to see when someone quits the water because of age--that spark in the eye when you talk fishing never dies, no matter what age)
Anyway, it got my curiousity up.
T2
 
The 19 would have been sweet. I was tempted to go up to that size, but my preference is to keep it small, easy to handle, launch, easy on gas, etc. The 16 does everything for me except go to the Swiftsure.
 
Great information.

Do you pay duty on just a motor?
 
Great information.

Do you pay duty on just a motor?
 
you pay g.s.t and p.s.t on the boat and motor at the time of cross the border and just g.s.t ont the trailer and when you regeister it in your name ( you have 90 days ) you pay the p.s.t
 
you pay g.s.t and p.s.t on the boat and motor at the time of cross the border and just g.s.t ont the trailer and when you regeister it in your name ( you have 90 days ) you pay the p.s.t
 
I bought my boat from Florida last october. I had a broker there that helped me every step of the way, there is alot of paperwork and crap to do. I also had a custom broker meet me at customs with all the border paperwork already done. I picked up the boat in port angeles and went through customs in victoria. I was there long enough to sign a couple of papers and have a guy verify the vin on the trailer. The hardest part for me was the stress of coordinating everything, and having a strtanger tow it from florida. The trailer was a tri- axle and blew every tire at some point on the way up. Luckily I got the boat home in one piece. It was probably the most stressful two weeks of my life, but was also the most exciting.
 
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