Tariffs and Recreational Boats

[Airstream345]

Any known impact on the used markets? Asking as I had a discussion with a broker about two different used boats in Vancouver: one was made in China (originally) and the other in the US.

He suggested that the used, Chinese made vessel would have a 10% tariff applied when bringing back into the US but the US made vessel would not.

Sounded strange to me given both are used vessels but there isn't a lot of official documentation to find/read on the topic. Curious is anyone here actually knows.

 

[AdmiralS]

Any known impact on the used markets? Asking as I had a discussion with a broker about two different used boats in Vancouver: one was made in China (originally) and the other in the US.

He suggested that the used, Chinese made vessel would have a 10% tariff applied when bringing back into the US but the US made vessel would not.

Sounded strange to me given both are used vessels but there isn't a lot of official documentation to find/read on the topic. Curious is anyone here actually knows.

I'm not so sure about that. The boat was imported from China into Canada.


Now the boat is being imported from Canada into the US. That is a different story but outside the scope of the China tarrif.

A customs broker would easily be able to answer this one with certainty.

 

[ProMaritime]

This information is so simple to find how can intelligent people on this forum be so deluged by BS and believe it. The import duty on foreign built pleasure boats is 1.5%, not 10%. And boats built in some countries, like South Africa for example, are exempt for US duty.

https://help.cbp.gov/app/answers/detail/a_id/1184/~/importing-a-boat-for-personal-use-into-the-u.s.

 

[firehoser75]

Personally, I find the whole situation (trade disputes between Canada and US, as well as the worsening political situation) to be very unfortunate, as well as divisive between such good allies and neighbours. However, I am far from an economics expert.

For me personally, if I was trying to purchase the same US built boat (used from the US) today, as I did in 2016, I could not afford it! It is now subject to a 10% import duty, the same as Chinese and most other import built boats.
So, the boat is priced in US dollars (as most boats are even a lot of them that are for sale in Canada), then I have to covert to Canadian dollars (an increase in price of 32% - changes day to day), then add 10% duty, followed by 12% sales tax on the total (so tax on the duty)!
So, for example, a $250,000 US boat ends up costing approximately $410,000 Can. after taxes, duties, and exchange. In this example, the duty added about $37,000 Can. to the end cost.

Will this affect Canadian boat buyers, with the spin offs into other aspects of the marine industry, I would think so. Could that have a negative impact on US boat builders, maybe!

 

[ProMaritime]

Foreign built boats imported onto Canada are taxed at 10% or more where as foreign boats imported into the US are taxed and 1.5% or less and in some cases zero.

 

[AdmiralS]

Foreign built boats imported onto Canada are taxed at 10% or more where as foreign boats imported into the US are taxed and 1.5% or less and in some cases zero.

Boats imported into the US from China today now carry an import duty of 10% (Not the entire purchase price, but of certain items and materials in the build)

That was set to go to 25% Jan 1, 2019, but has now been delayed 90 days to allow negotiations to continue between the US and China.

The days of 1.5% are over....

 

[ProMaritime]

Over for China perhaps, at least for this week, but not for the rest of the world's boat builders.

 

[Alaskan Sea-Duction]

So I wonder if MV Mahalo had a tariff tax assessed?

 

[Group9]

My thoughts would be deemed political, so I will bite my tongue.

Well, we knew, that sooner or later, somebody was going to keep their political thoughts to themselves!

 

[ancora]

"If it moves, tax it...

 

[Airstream345]

This information is so simple to find how can intelligent people on this forum be so deluged by BS and believe it. The import duty on foreign built pleasure boats is 1.5%, not 10%. And boats built in some countries, like South Africa for example, are exempt for US duty.

https://help.cbp.gov/app/answers/detail/a_id/1184/~/importing-a-boat-for-personal-use-into-the-u.s.

Yes, I found that info along with conflicting info therefore asking for perspective here. Again, my post was specific to a Chinese made but now pre-owned vessel being brought back into the US. Any import tariffs would have been paid by the original owner but now, 35 years later, I'm trying to determine if what the broker told me was BS or not.

 

[BandB]

Yes, I found that info along with conflicting info therefore asking for perspective here. Again, my post was specific to a Chinese made but now pre-owned vessel being brought back into the US. Any import tariffs would have been paid by the original owner but now, 35 years later, I'm trying to determine if what the broker told me was BS or not.

Go beyond a broker to a documentation and title service with some of your questions as they get complicated and depend on information we don't have here. For instance, a used boat in many cases depends on whether it has been previously documented or registered in the US. If it has not and tariff has never been paid, then, I believe, it will be due. This is the 1.5% referenced above. We have many boats in the South Florida area that can't be sold in US waters because tariff has never been paid. If purchased, then the tariff must be paid to import them.