The "short amount of time" Andrew refers to is one full year (12 months). The ``newish" law Andrew referred to has been on the books for at least 20 years ( I think since the fall of 1998) but has been spottily enforced. In theory, US boats are not supposed to overwinter (stay longer than 12 months) in Canada without being legally imported and paying duty. But there’s an exception. If a boat needs repairs, it may stay—and the repairs, maintenance and storage of such yachts has been the core business of Henry Fuller of the Cape Breton Boat Yard in Baddeck, Nova Scotia. And though the necessary “repairs” may not have been very extensive, customs officers have never been very exacting about the matter.
For many years quite a number of American boats spent years on end in Canada without being officially imported, using this loophole that allowed the boats to remain here if "major overhaul" and other large shipyard related jobs were being done to them. The intention of this rule was to allow shipyards to bid on large projects without having to worry about import duties if the job stretched out beyond 12 months. Legitimate large repairs can be extended beyond 12 months, up to as long as four years (48 months) if required, and permission for the extension(s) is granted. This loophole was being abused as many of these boats were really just having light seasonal maintenance done. Henry Fuller made a public issue of it back in the fall of 2013 and so drew the attention of the government agency tasked with enforcing the law, forcing their hand so enforcement increased as a result. Some coverage of Henry's complaints are here: https://www.oceannavigator.com/bad-news-from-baddeck/ Here is another view: https://contrarian.ca/2013/09/06/how-the-feds-are-killing-a-77-year-old-cape-breton-business/ Here is a link to the actual rules and information for travellers (note the wording on that page has not needed to been changed since 2014): https://www.cbsa-asfc.gc.ca/travel-voyage/fv-be/menu-eng.html Information about the length of time permitted for repairs are here: https://www.cbsa-asfc.gc.ca/travel-voyage/fv-be/importation-eng.html The actual letter of the law here: https://www.cbsa-asfc.gc.ca/publications/dm-md/d2/d2-1-1-eng.html https://www.cbsa-asfc.gc.ca/publications/dm-md/d2/d2-2-3-eng.html https://www.cbsa-asfc.gc.ca/publications/dm-md/d8/d8-1-1-eng.html Ken H. On Sat, 15 Jan 2022 at 15:35, Robert Abbott via CnC-List < cnc-list@cnc-list.com> wrote: > Andrew, > > I am interested to know more about this CDN Luxury Tax on US boats here in > Canada for a period of time. I can't find anything on the CDN Govt > websites on the law. > > Do you have a source/ website, anything I can use to get started on > finding out the specifics? > > Anything would help. Thanking you in advnace. > > Robert Abbott > AZURA > C&C 32 - #277 > Halifax, N.S. > > On 2022-01-12 5:16 p.m., Andrew Burton via CnC-List wrote: > > There’s also a newish Canadian law that taxes US boats if they are in > Canada for more than a short amount of time. It has put several yards out > of business, including a friend in NS who used to work on and store a bunch > of US boats very winter. > It put the kibosh on my plans to cruise to Bras D’or one summer, leave the > bot and then cruise Newfoundland the next summer. > Andy > > > > Andrew Burton > 26 Beacon Hill > Newport, RI > USA 02840 > > http://sites.google.com/site/andrewburtonyachtservices/ > +401 965-5260 > > On Jan 12, 2022, at 14:47, Dennis C. via CnC-List <cnc-list@cnc-list.com> > <cnc-list@cnc-list.com> wrote: > > > When the US imposed the luxury tax in the 90's or whenever, it put 17,000 > boat builders in the unemployment line. Luxury car salespersons also > suffered. Legislators and bureaucrats are woefully ignorant of the law of > unintended consequences. > > Did it result in increased tax collections? Not really. As it only > applied to new yachts bought in the US, rich folks simply bought yachts in > Europe and brought them home, as I recall. > > Other anecdotal laws we seem to forget: the U shaped curve (governs > efficiencies of volume), the 95% rule (it's easy to pick up the first 95% > of that pound of sugar you spilled). And there's always the law above them > all, Murphy's Law. > > -- > Dennis C. > Touche' 35-1 #83 > Mandeville, LA > > On Wed, Jan 12, 2022 at 1:33 PM Bill Coleman via CnC-List < > cnc-list@cnc-list.com> wrote: > >> OK, I know I should just get back to work, but this is a very thought >> provoking Bill about to take place, >> >> and it is like watching a slow motion train wreck. >> >> >> >> The American Version of the 90’s may not have been what completely killed >> C&C, but it certainly guaranteed it. >> >> >> >> What do they say, “Those who do not remember the mistakes of the past are >> condemned to repeat them in the future” ?! >> >> It’s been about a generation, long enough to forget, I guess. And Canada >> has a lot to lose. >> >> >> >> >> https://marinefabricatormag.com/2021/12/20/analysis-shows-canadas-proposed-luxury-tax-will-have-heavy-impact-on-marine-industry/ >> >> >> >> >> >> >> https://www.chicagotribune.com/news/ct-xpm-1991-06-13-9102220626-story.html >> >> >> >> >> >> Bill Coleman >> >> Entrada, Erie, PA >> >> >> >> >> Thanks to all of the subscribers that contributed to the list to help >> with the costs involved. If you want to show your support to the list - >> use PayPal to send contribution -- https://www.paypal.me/stumurray >> Thanks - Stu > > > > Thanks to all of the subscribers that contributed to the list to help with > the costs involved. If you want to show your support to the list - use > PayPal to send contribution -- https://www.paypal.me/stumurray Thanks > - Stu > > > Thanks to all of the subscribers that contributed to the list to help with > the costs involved. If you want to show your support to the list - use > PayPal to send contribution -- https://www.paypal.me/stumurray Thanks - Stu > > > Thanks to all of the subscribers that contributed to the list to help with > the costs involved. If you want to show your support to the list - use > PayPal to send contribution -- https://www.paypal.me/stumurray Thanks > - Stu
Thanks to all of the subscribers that contributed to the list to help with the costs involved. If you want to show your support to the list - use PayPal to send contribution -- https://www.paypal.me/stumurray Thanks - Stu
