1. The seller forgets his divorce; the wife objects.
In early April 2000, the manager of a Caisse populaire branch in the Bois-Francs region contacted our office. One of her clients wanted to buy a boat from a private seller, and she was seeking our assistance. Both she and her client wanted the transaction to be finalized quickly. A loan of $75,000 was approved, subject to the boat having a value of at least $100,000 and a marine survey revealing no major issues.
The Fund is therefore awaiting our recommendations and documents before disbursing the funds. Everything promises to be straightforward and trouble-free.
The buyer had discovered the boat while browsing the internet. He telephoned the seller and learned that, by coincidence, the latter lived in a neighboring municipality. Following their meeting, a sale price of $100,000 was agreed upon. The equipment included in the sale comprises everything that was on the boat at the time of the meeting, as well as a small, uninspected inflatable dinghy that was undergoing repairs. This dinghy, which has a market value of approximately $200, has no motor and reportedly never had one.
The buyer and the seller agree to a telephone interview with us and answer all our questions. The boat was paid for in cash at the time of purchase and is reportedly free of debt. The seller’s purchase contract cannot be found, but we are promised an introduction to the previous owner if he can be located.
The expert assessment reveals no problem.
We receive a faxed copy of the boat’s registration in the seller’s name, along with a list of all the equipment being sold; this list corresponds quite well with the one from the survey.
A search reveals that the seller is divorced and that the divorce decree was issued four years ago—well before the transfer date shown on the boat’s registration (two years). Suddenly, the employee who interviewed the seller recalls him saying that he had owned the boat for many years, had taken good care of it, had never been involved in an accident, and so on.
We obtained a copy of the divorce judgment. This document revealed, in the section regarding the division of assets, that the seller retained sole ownership of the boat but that, in the event of its sale, a sum of $30,000 was to be paid to the spouse.
The seller was indeed the owner of the boat according to the permit, but that permit had been transferred to him after the date of the divorce judgment.
When we discussed this divorce with the seller, he offered to deliver the $30,000 to the spouse himself. Instead, we requested that the Caisse contact the spouse in the days following the signing of the documents and hand the $30,000 check to her directly.
It also turned out later that the dinghy’s registration was in the names of the seller and his wife. Both had to sign a new contract for the dinghy for a nominal sum.
It all ended well, but there could have been some problems.
2. The boat was already registered; the permit was worthless.
Twelve years ago, we handled the issuance of a Canadian Certificate of Registry (the “Blue Book”) for Mr. “A” regarding a new boat built in Canada but delivered to the United States. As sales taxes had not been paid at the time of purchase, the vessel could only be operated outside the country; its customs status was “in bond.” This situation is in compliance with Canadian law.
Three years later, “A” sells his boat to “B”. He informs “B” that if he wishes to sail freely in Canada, he must go to a Canada Customs office and pay sales taxes (GST + QST) based on the boat’s current value. Through oversight or negligence, “A” and “B” fail to sign the legal documents required to transfer the certificate.
“B” goes to the Canadian Customs office and pays the required taxes. He forgets to mention that the boat already holds a Certificate of Registry. The employee—a young summer student—issues a Pleasure Craft Licence in his name. “B” is thus able to sail in Canada without concern. Had “B” informed the customs employee of the Certificate’s existence, the employee would not have issued a licence; only the “customs status” of the Certificate would have been updated.
Three years later, “B” sells the boat to “C”, a resident of another Canadian province. A Customs office transfers the permit to “C”.
The following year, “C” sells the boat to “D”. The latter obtains a loan from a friend and pays for the boat in cash.
At some point, the friend wants to be repaid. “D” goes to his bank. A loan is approved; however, the bank requires a maritime mortgage to be registered before disbursing the funds.
The bank has commissioned us to handle the file—specifically, to verify the chain of title, carry out the vessel registration, and then record the requested maritime mortgage. All of this as quickly as possible, needless to say!
When the file was opened for the bank, our computer system flagged the existence of a file completed 12 years ago for this boat. A check with the Canadian authorities confirmed that the Certificate was still valid. Conclusion: the Permit was issued in error and must be cancelled. All sales concluded under its authority must be redone.
A major undertaking lies ahead. Who is going to foot the bill?
You cannot be too careful when buying a used boat from a private seller. The final decision should only be made after consulting a qualified professional who can give you an accurate assessment of the quality of the title to the boat being sold to you and prepare the proper documentation.
3. Risk of paying the seller’s creditor before the sale
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4. Triangle with two unknowns
There are two types of boat registration: the Pleasure Craft Licence and the Certificate of Registry (or “Blue Book”). A licence can be advantageously replaced by a Certificate of Registry, but not the other way around.
Canceling a Certificate to replace it with a Permit is a very poor decision. It makes the boat harder to identify, complicates the process of checking for ownership records, debts, or liens, and results in less favorable credit terms. Not to mention the costs involved in having a new Certificate issued should the need arise.
Information contained in the registration file for a boat requiring a permit is considered confidential and therefore cannot be verified. In contrast, the certificate registration system is computerized and centralized; a significant amount of information regarding these boats is accessible.
Our story forms a triangle:
1. A boat owner, Pierre, who buys a new boat and trades in his old one.
2. A merchant, Vendébato Inc., who wants to cancel all the Registration Certificates it sees.
3. A buyer, Jacques, whom Vendébato forgot to tell everything.
The two unknowns are:
1. Is the payment of sales taxes by Jacques to Vendébato justified?
2. Who owned the boat at the time Jacques had an accident?
*******
Following Pierre’s purchase of a new boat, Vendébato provides him with a copy of the sales contract, which also notes the trade-in. They also give him a form in which Pierre declares under oath that the future buyer of his “old boat” (with the buyer’s name left blank) is requesting the cancellation of the registration certificate.
Vendébato Inc. is categorically opposed to having the boat offered in exchange officially transferred to it, for various reasons including paperwork, a lack of time, legal rights, government-related complications, etc.
*******
A few months later, Jacques buys Pierre’s old boat from the dealer Vendébato Inc.
Vendébato Inc. is preparing a sales contract for him that includes both sales taxes. He explains that the boat should receive a permit shortly; the delay is due to the previous owner’s bank, which is slow to register the discharge of the mortgage.Vendébato Inc. lui prépare un contrat de vente avec les deux taxes de vente. Il explique que le bateau devrait obtenir un Permis sous peu. Le retard est causé par la banque de l’ancien propriétaire qui tarde à enregistrer sa quittance d’hypothèque.
A week later, the boat Jacques has just bought and paid for—but for which he does not yet have the registration—is involved in an accident. The damage is extensive. The insurer requests a copy of the official records to expedite the settlement.
Jacques is worried. He calls Vendébato Inc.; they tell him that the best way to “sort things out” would be to act as if the previous owner (Pierre) had been the one to sell the boat to him. It is absolutely out of the question for Vendébato Inc. to officially become part of the boat’s chain of title by having the “Blue Book” transferred to them and then re-transferred to Jacques (due to paperwork, “lack of time,” etc.). They give him Pierre’s mobile phone number.
Jacques is still reeling from the stress of his accident. He calls Pierre and asks him to officially sell him the boat. Pierre flatly refuses. He justifies his decision by pointing out that there was never any agreement with Jacques and that he does not even know him. Furthermore, he says that if Jacques were to take legal action against him for hidden defects or failure to disclose a material fact, he would be the one to suffer.
*******
A truly worrying situation:
1. Can Jacques purchase the same boat from two different sellers at different times? Specifically, a sales contract with Vendébato Inc. (including sales tax and sworn documentation from Canadian authorities) versus a transaction between Pierre and Jacques (exempt from sales tax), with the two events occurring on different dates—one before the accident and one after. Which date would be considered valid?
2. If Jacques buys from Pierre, could Vendébato Inc. plead “accommodation contract” (accommodating whom?) and deny its responsibilities as a merchant dealing in goods of that kind?
3. If Jacques buys the boat from Pierre, will the insurers consider that Jacques was not the owner at the time of the accident and deny coverage? They have not yet settled the claim.
Two months later, following rather heated discussions, Vendébato Inc. agreed to sign the official documents enabling it to become the registered owner, as well as those allowing Jacques to become the owner in turn. However, the documents were dated two months after the accident.
Do the sales taxes collected by Vendébato Inc. remain justified two months after the fact?
Are they refundable, or are they part of the “accommodation”?
*******
The transfer of ownership of a registered vessel becomes effective only when Canadian authorities record the transaction in their system.
If the actual seller is a private individual, no sales tax is payable if the sale takes place in Quebec between two Quebec residents.
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Key points:
If you buy a boat that already has a registration certificate, insist that the document be promptly transferred to you—directly from the actual seller, not from a stranger.
If you sell or trade in a boat, ensure that the title is promptly transferred to the actual buyer.
Never sign a document that is blank or not fully completed.
Do not sign a request to cancel a certificate without understanding the true reasons for doing so.
5. Who inherits when I die?
In Canada, there are two types of boat registration: the Pleasure Craft Licence (formerly the Small Vessel Licence) and the Certificate of Registration (also known as the “Blue Book”).
A registered boat does not display a number on the outside of its hull. Its (registered) name and port of registry are marked on the hull, usually at the stern. The assigned registration number (an official six-digit number) is engraved on a metal plate permanently affixed inside the vessel in an easily accessible location.
A permit can often be advantageously replaced by a certificate. The reverse is extremely rare.
Type of owner(s) of a registered boat
A registered vessel is divided into 64 undivided shares, which may be owned—in whole or in part—by one or more natural or legal persons (companies). A business name (“Registered”) cannot hold such a registration unless it belongs to a company.
Each share can be owned by a maximum of 5 people; therefore, the theoretical maximum number of owners is 320 (5 x 64).
When more than four people wish to own a boat, it is recommended that they incorporate a company to act as the owner. The number of shareholders in a company can be specified in its charter.
Type of ownership of a registered vessel
Here are the specific details regarding boat ownership by one or more individuals, as well as the implications in the event of death.
Unfortunately, it is the English terms that are most widely used. The prevailing schools of thought in both Canada and the United States come to us from England—the former masters of the waters.
Sole owner
The person owns all 64 shares of the boat.
In the event of this person’s death, standard succession procedures will apply.
Co-ownership (“joint-owners”)
Joint ownership of a certain number of shares by several people. E.g., a husband and wife jointly own the 64 shares of the boat.
It is possible for several persons to jointly hold fewer than 64 shares. The remaining shares will be owned by one or more other persons.
In the event of the death of one of the joint owners, their estate does not inherit their share of the boat. The surviving joint owners remain the sole owners of the shares they held jointly with the deceased—continuing until only one survivor remains, who may eventually become the sole owner.
The principle enabling this type of property transfer upon death is the “right of survivorship.” This concept is similar to the English notion of “joint tenancy” used in the majority of Commonwealth countries.
The survivors may dispose of their shares in the boat immediately, without waiting for the settlement of the deceased’s estate.
Joint ownership (“co-owners”)
One or more individuals each own a specific number of shares in a boat. E.g., the gentleman owns 25 shares, the lady owns 25 shares, and their child owns 14, for a grand total of 64.
In the event of the death of one of the co-owners, standard succession procedures will apply.
Real-life case and its impact
In a recent case handled by our office, a husband and wife were joint owners of a boat. The husband subsequently passed away following a workplace accident. There were delays in the procedures to amend the boat’s title registration.
The gentleman’s estate was declared bankrupt, and the boat was seized and put into storage. The creditors were claiming half of the boat.
The matter was ultimately resolved in the widow’s favor. However, the discussions were lengthy, arduous, and costly. Had the title been properly rectified at the right time, the lady would have been in a much stronger position from the outset.
Preparation of relevant documents
The documents establishing whether multiple individuals will be “joint owners” or “co-owners” are prepared during the registration process or during the procedures for purchasing a boat that is already registered. The correct documents must be prepared, and the transaction must be processed in accordance with the rules.
Ship mortgage
The impact on the maritime mortgage must be considered. If you own a boat as “joint owners,” a single mortgage will be registered for all owners collectively; however, if ownership is held by multiple “co-owners,” each with a defined number of shares, a separate mortgage must be drafted and registered for each owner.
Key points
Purchasing and registering a boat are significant transactions that should be handled by specialists. It is important to carefully plan the ownership structure at that stage; otherwise, the consequences in the event of death might not align with your wishes.
Do not delay in making your transactions official—do so as soon as possible—to avoid unpleasant surprises.
Consult an expert without delay regarding any questions about boat ownership.
6. One of the salespeople had died.
Last spring, at a regional boat show, a beaming young man approached me with his wife. They told me they had just bought a used boat in excellent condition. The man knows boats; the one they purchased hadn’t been used for at least three years but was reportedly in great shape. As for the price—it was a real bargain.
They have already paid the seller in full. All that remains is to transfer the boat registration. A procedure that is apparently exceptionally simple.
The gentleman shows the permit, signed on the back by the seller. Two names appear on the front of the permit. On the purchase contract, however, only one seller signed. The gentleman explains to me that the other seller passed away more than three years ago and that the person who signed—a co-owner of the boat—had been a close friend of the deceased “forever.”
In our case, completing the transfer of the permit to the buyers’ names will be rather difficult; we will need proof that the deceased’s share actually passes to the signing seller. Furthermore, is he truly the heir to the deceased’s share?
A phone call to the “survivor” reveals that the deceased had left a will, though he does not have a copy on hand. He believes the deceased’s children are the heirs to the half-share of the boat that the deceased owned. He indicates that the children will readily sign whatever is necessary to wrap up the matter quickly. Since this “survivor” has already received the full sale price, he suggests immediately handing over half the proceeds to the two children. We strongly advise him to take no action for the time being and to await our comments.
The next morning, one of the children calls the office. He says he is ready to come in immediately with his brother to sign all the necessary documents to finalize the transaction and receive the money owed to them “by Friday,” if possible.
A copy of the will is requested, and a search is immediately undertaken.
Worrying situation
A reading of the will reveals that there are three estate administrators. The first is the deceased’s spouse; she is traveling in Thailand for another two months. The second is a distant relative who stormed off a few years ago and hasn’t been seen since. The third is a healthcare professional from Joliette who is very easily accessible.
There are two sellers in this transaction: the “survivor,” who is already a co-owner of the boat, and the two heirs, who are also co-owners. The catch is that the will contains a rather specific provision: “…the children may not benefit from the capital derived from the sale of the boat until they have both reached the age of 35…” They are currently 23 and 25 years old.
Resolving this matter was a somewhat arduous process. Everything was sorted out within the following three months. The buyer is now sailing smoothly, but the two heirs are still waiting for their money.
A prudent person usually leaves a will. In the absence of a will, specific procedures must be followed. Including a reference to the boat in the will is often a good idea; however, certain clauses can make life somewhat complicated for the survivors. It is worth considering this before drafting them.
7. Boat purchased in winter
Yes, boats are sold in winter! While there are fewer sales than during the summer season, this period shouldn’t be overlooked by those looking to take advantage of great deals.
Jean, ses affaires allant bien depuis plusieurs années, bons revenus, aucune dette, placements lucratifs, etc., ne se doutait pas qu’un jour la possession de son bateau pourrait être mise en péril.
The current winter has seen stock markets exhibit rather unsettling mood swings, forcing our “freshwater sailor” to make the painful decision to sell his boat in order to pay off his stockbroker.
So, he places a classified ad in the newspaper. About ten days later, a potential buyer gets in touch with him. The buyer seems serious; he asks about the boat’s specifications and wants to see it. Jean feels a bit uneasy; given the snow that has fallen since the start of winter, the boat must be rather difficult to access.
A meeting is scheduled for the following Sunday at the marina.
The buyer arrives with a friend who is a marine surveyor. We make our way to the boat as best we can. The surveyor cuts an opening in the blue covering enclosing the boat to gain access to the interior. Everything appears to be in order.
Jean praises his boat’s performance as well as the quality of the hull’s construction. He explains that he removed certain instruments sensitive to the cold in order to store them at his home.
The surveyor indicates that he has a favorable opinion of this type of boat; everything appears to be in good condition, but he is unwilling to give a definitive verdict because it is difficult to check for hull delamination and the engine cannot be started—it is too cold.
Since Jean needs money fairly quickly, he does not want to accept an offer contingent on a proper survey in the spring. However, his buyer is keenly interested but wants to take precautions; if the boat turned out not to be in as good a condition as expected at the time of handover, who would be held responsible?
We agree on a selling price and on signing a contract as soon as possible.
The buyer contacts our office. We confirm that he is right to be very cautious. The boat has not undergone sea trials, and the surveyor cannot prepare a full report. The price is very attractive to the buyer, and he does not want to miss out on the purchase. We suggest a sales contract that includes a retention clause.
This special clause stipulates that a certain amount of money—usually ranging from 3.0% to 10.0% of the sale price—be held in escrow until the vessel is launched the following spring.
This clause stipulates that the vessel must be launched no later than a specified deadline, with both the seller and the buyer present. Following the launch, the boat and its equipment must be in good condition and operate normally for a period of at least two hours; otherwise, the buyer must provide, within 10 days, invoices proving and justifying the necessary repairs. These invoices will be paid using the funds held in escrow, and the remaining balance will then be immediately released to the seller.
This clause has protected many buyers. It acts as a kind of insurance policy against the potential effects of our harsh winters.
8. Sales taxes between private individuals in Canada
Around last July, a resident of a small Quebec municipality near the Ontario border asked us to conduct research on a boat he wanted to buy in that neighboring province.
After gathering various details, we contact the broker. The broker informs us that the boat—valued at approximately $40,000—does not have a Pleasure Craft Licence (e.g., 10D12345).
The broker explains to us that, given the boat is not sailed much, its owner did not deem it necessary to obtain a permit.
Since the permit was free of charge, there must have been another reason justifying its non-issuance.
The seller, a consultant by profession, was traveling in the United States. He had owned the boat for about five years and, according to the broker, had paid cash for it to another Ontario resident.
Our task was to verify that the seller was indeed the legitimate owner and had the right to sell the boat, and that the vessel was free of any registered debts, marina fees, or other charges.
We carried out several checks, the main ones being as follows:
Verification with the person who had sold the boat to the seller, namely:
Confirmation that the copy of the sales contract we had in hand was indeed a copy of the actual contract.
– Confirmation du paiement entier
Reasons why the boat did not have a permit
– Etc.
Obtaining the report from the Ontario Personal Property Security Registration System.
One point still troubled us: why the boat didn’t have a permit.
La taxe de vente provinciale en Ontario est exigible sur les ventes de bateaux entre particuliers. Les autorités de l’Ontario se réservent le droit de communiquer avec les préposés à l’émission des Permis d’embarcation et leur demander un historique des ventes.
Following these checks, proof of payment of the sales tax may be requested.
In our case, sales taxes would not have been paid, and the boat’s status was becoming vulnerable.
Faced with this risk, the buyer decided against the purchase; he was uncomfortable and feared having to provide information to Ontario investigators at some point.
In most cases involving the private sale of boats, the GST (Goods and Services Tax, Canada) does not have to be paid; however, provincial sales tax may apply, depending on the province where the sale is concluded or the buyer’s province of residence.
If a boat is purchased in Ontario and transported outside the province within 30 days, that province’s sales tax is generally not required. However, the sales tax of the buyer’s province may be payable.
If you plan to buy a used boat, consult an expert before signing. You will be informed of potential difficulties and delays that could affect the realization of your plans.
9. Arduous estate settlement
Around April 1994, a bank well-known in the recreational boating sector reached an agreement with a borrower who was having difficulty meeting their payment obligations. As a result, the borrower voluntarily surrendered the boat to the bank.
The bank commissions a marine broker to sell the boat. The broker handles the transfer of the boat’s permit into the bank’s name.
A month later, a buyer comes forward. Their offer is accepted; they are happy with the price and share the good news with their family. Once payment has been made, the bank hands over the permit and the original sales contract to the buyer.
The buyer, considering that the boat would be used only on a so-called “closed” body of water during the first few months following the purchase, postponed the request to transfer the permit into his name. In fact, he never proceeded with the permit transfer.
Eight years later—in September 2002—our buyer passed away. He had drawn up a will a few years earlier, in which he named his two daughters as testamentary liquidators and heirs to all his assets.
Not wishing to keep the boat, the two young women are putting it up for sale. All family members are helping to search for the documents relating to the boat’s purchase, but nothing has been found.
A buyer soon comes forward. He offers to purchase the boat from the estate. To demonstrate his serious intent, the buyer signs a purchase offer and hands over the sum of $2,000.00 as a partial payment. He undertakes to pay the balance due upon the transfer of the permit and to take possession of the boat at that time—specifically, no later than May 31, 2003.
When May arrives, the heiresses and the buyer appear at their local customs office with a copy of the will. They have noted the permit number displayed on the hull. The buyer is present with a certified check for the outstanding balance. Everyone is confident that the sale will go through smoothly.
The customs officer then telephones the customs office where the permit was originally issued and requests that a copy of the most recently issued permit be faxed to him.
In a rather unpleasant surprise, the boat is still registered in the name of the bank that had repossessed it. No transaction has been recorded since then. A copy of the sales contract between the bank and the deceased is required.
There is consternation.
The buyer is worried; he had planned to take a boating vacation with his family the following month. The sellers offer to return the deposit to the buyer. The buyer wants the boat and is willing to wait another week or two.
Our heiresses call various bank branches to trace the transaction—or at least locate their father’s name in the bank’s records, in case he had taken out a loan there. No luck. They are informed that sales documents for repossessed assets dating back more than five years have been moved to the archives.
Nothing can be found at the archives department. It is suggested that the information may have been misplaced, as several branch mergers have taken place since then.
A month later, our office was called in to the rescue.
Our task was to convince the Canadian authorities to transfer the boat’s registration to the estate, and subsequently to the buyer. We needed to obtain as many sworn statements as possible—an arduous process that spanned a considerable period of time.
Following an investigation, we prepared a comprehensive dossier for Customs. Our report included references and statements from the individuals met at the bank, as well as statements from the heirs signed in the presence of their notary.
The broker handling the sale of the trade-in boat couldn’t help us much; he had a memory lapse.
It was not until towards the end of September 2003 that we were able to close the file. Unfortunately, the buyer had to change his holiday plans.
If you buy a boat, it would be wise to obtain a proper bill of sale and ensure that the boat’s registration is transferred to your name as soon as possible. Keep a copy of the documents in a safe place.
Note: The Pleasure Craft Licensing administration (boat licenses) is now managed by the Pleasure Craft Licensing Centre in Fredericton, NB. The toll-free telephone number for this service is (800) 622-6232.
10. Tax-free boat storage
Pierre, an optimist by nature, is convinced that the summer of 2005 will be one of the sunniest of the last decade. He therefore decides to part with his little “nutshell” of a boat in order to replace it with a beautiful, brand-new cruiser.
He therefore visits a boat dealer located near the Richelieu River in Quebec. After meeting with the sales representative, he settles on a boat that will meet his family’s needs. The selling price fits his budget; however, sales taxes (GST and QST) amount to approximately 15% of the purchase price, and he is reluctant to absorb them.
Furthermore, Pierre’s financial institution requires a minimum down payment of 15% of the pre-tax selling price, in addition to requiring him to pay the applicable sales taxes if the boat is to be used in Canada. These two requirements would therefore oblige Pierre to pay approximately 30% of the boat’s price.
There is a way to satisfy Pierre. Although imperfect, it would allow him to carry on while awaiting a better solution.
If the boat were delivered by the dealer or a transport company to a location outside Canada, no Canadian sales tax would need to be paid. Such taxes would only become payable once Pierre decided to sail freely here—that is, by importing the boat. The tax amount would then be calculated based on the boat’s value at the time of importation.
The “customs status” of such a boat is referred to as “tax-free” or “in bond.”
All boat imports are subject to sales tax, except where the law allows for an exemption, regardless of whether the seller was an individual or a business.
Owners of Canadian-built boats with “tax-exempt” status will also have to pay sales taxes if they wish to navigate freely in Canada.
However, if the boat is kept in the United States, there is a certain risk of being assessed by U.S. authorities. The amounts that might be claimed are nonetheless far lower than what is required here.
Some states take the view that when a tourist’s boat has been within their territory for more than 30 days and no sales tax has been paid in the tourist’s home country, a “user’s tax”—equivalent to their sales tax—must be paid.
Some states do not closely monitor their boat tax files—either because they have other priorities, or because dealers, following persistent lobbying, have convinced them not to scare off Canadians.
Finally, others who rely almost entirely on tourism suggest specific guidelines to follow in order to keep their visitors happy.
The only way for an owner to bring a boat into Canada “duty-free” is for the purpose of repair, refurbishment, or modification. The boat is thus granted temporary admission to the country by customs officers based on the documentation presented to them—such as the certificate of registration as proof of ownership.
Canadian authorities will issue an authorization document known as “E29-B Temporary Admission” free of charge. Certain conditions must be met to remain in good standing. Here are a few of them:
· A repair estimate prepared by the repairer must be submitted along with the application for temporary admission before the boat enters the country.
· The boat must go directly to the repairer; there is no question of making a detour.
· If the boat entered the country in the spring or summer, the authorization’s expiration date is determined based on the type of repairs to be completed. The boat must cross the border again no later than the deadline.
· If the boat entered the country in the autumn or winter, repairs may be carried out during the winter. It is the responsibility of the repairer and the owner to ensure that the boat does not sail during the authorized period and that it leaves the country no later than June 15 of the following year.
· A temporarily imported boat cannot be sold or rented unless the applicable taxes have been paid. However, a waiver is available free of charge.
Following the free trade agreements with the United States, no customs duties are payable on the importation of boats built in that country. Only the standard sales taxes remain applicable.
The only Canadian vessel registration issued for boats kept “tax-free” is the Certificate of Registration. This document is not issued by the Canada Customs and Revenue Agency.
To avoid problems or delays, consult us when buying or selling boats “tax-free.”
