The impact of buying a new boat in Canada, but intending to navigate only in the United States waters.
An independent broker is the person you can trust to explain the impact of a purchase here in Canada or in the United States. Our interest is your interest. Avoid surprises due to a lack of information. At Ita Yachts Canada, we’re always ready to listen, and we’ll find the best acquisition scenario for you.
Advantages of buying in Canada :
– No 9.5% customs duty if the boat comes directly from Europe, thanks to the Canada-Europe Free Trade Agreement.
– You can go to the U.S. and return to Canada without difficulty, but you’ll need a Cruising Permit to sail on U.S. territory (see bottom of this article).
Disadvantages of buying in Canada :
– Access to repair shops – in other words, after-sales service at dealers selling the same brands in the USA – will be very difficult.
– Resale of the Canadian yacht in the U.S. will be more problematic, as U.S. customs have not been paid (this must be demonstrated). This situation can be resolved with a payment of 1.5% of the boat’s value, but American customers are rather reluctant.
Here’s a concrete example to help you understand the American reality:
MarineMax, the largest boat dealer in the USA, reserves its after-sales service mainly, if not exclusively, for customers who have purchased a yacht under their banner.
What’s more, extended warranties on new yachts (such as Azimut’s 3-year “Peace of Mind” warranty) are very attractive when it comes to resale. Be sure to opt for extended warranties when offered by the manufacturer.
An independent broker will take all these factors into account when acquiring and reselling a boat. When purchasing a new or pre-owned yacht already in the U.S., we’ll make sure you have access to the dealers who sell your chosen brand of boat.
Facts to consider
So, before acquiring a yacht of mainly European origin, consider the impact of its use in the U.S. and resale in the U.S., not forgetting resale in Canada if applicable.
Of course, a yacht of American and/or Canadian construction does not have all the same constraints. The latest Canada/US/Mexico Free Trade Agreement (or ACEUM) must be taken into account.
But if you’d like help and guidance in acquiring a yacht in the U.S., the Ita Yachts Canada team of brokers is at your disposal.
Buying a new yacht in the U.S. is similar to buying a pre-owned yacht. There will be no charge for you to be represented by a professional Ita Yachts Canada broker. We are familiar with this type of transaction.
CRUISING PERMIT
When you wish to sail in American waters with a Canadian-registered boat, you must apply for and obtain a Cruising Permit. You can see what the CRUISING PERMIT consists of if you have the CBP ROAM application available for smartphones.
But for renewals that differ from the first application, you need to go to an authorized office. Here are some rules to observe for the first and subsequent applications:
– The boat must not be in charter mode (mandatory)
– The boat must not be for sale (subjective criterion applied by the customs officer).
– You must be out of the U.S. territory for at least 15 days to still be considered a visitor when you re-enter (2nd or more). Please note that proof is required that you have been out of the U.S. territory for 15 days.
Click here for the US CUSTOM & BORDER PROTECTION website, but guidelines change without notice, so check with the website for any changes.
Click here to see the addresses where you can renew your Cruising Permit. Simply select the U.S. state where you would like to obtain addresses (in English only).
Note that there’s no problem selling a Canadian-registered or other boat while it’s in the United States. However, certain guidelines must be respected. The brokers at Ita Yachts Canada are familiar with these guidelines.
The right approach, contact us if you’re planning to buy a boat, we have advice for you that’s sure to prove very profitable.
DISCLAIMER
The article presented on this page is for information purposes only. This information is provided as editorial (i.e. opinion). The information presented in this article is presented in good faith and, while believed to be correct, is not guaranteed. Ita Yachts Canada does not warrant or assume any legal liability or responsibility for the accuracy, completeness or usefulness of the information and/or images displayed, as they do not suggest anything in relation to this article, indeed no association can be made with respect to the images and the article. All information in this article is subject to change without notice and is without warranty. It is the reader’s responsibility to verify the descriptions and statements contained in this article. The brokers at Ita Yachts Canada assume no responsibility for any conclusions the reader may draw. The purpose of this article is to promote boating in all its forms. It gives one point of view among many. Any reproduction of this article is prohibited.
