[Public-list] Canadian/US Alberg Market ~ Boats repatriated to Canada and US destined Albergs built "in bond"

[John Birch]

To those of you Americans who purchased your A-30's from a second or 
subsequent Canadian owner, as opposed to having bought new from the factory, 
where the boat was built "in bond." If you still have the documents that the 
boat came from a Canadian owner and if it shows the then Manufacturers Sales 
Tax (MST) was paid by the original Canadian owner you will have an edge up 
on the market when it comes time for you to sell.

This is because any Canadian built boat that had the MST paid for 
originally, if the boat is later repatriated to Canada, the next purchasing 
Canadian owner will not have to pay the Goods and Service Tax (GST) as the 
MST had been already paid. The GST was brought in to replace, in part, the 
MST - however you will have to have the MST receipt.

Boats built "in bond" did not have the MST charged against them as they were 
designated for direct export.

If you do have that MST receipt, effectively, the next owner importing the 
boat back to Canada will not have to pay the 7% GST - which is normally 
collected at the border. They will still have to pay PST -(Provincial Sales 
Tax) which in Ontario is 8% - but effectively you, as a US owner selling, 
will have a 7% pricing advantage over Albergs built "in bond."

For instance, "if you buy my boat it will be 7% cheaper for you to return 
home to Canada with than my good friend Wally's down the road - whose boat 
was always a US flagged boat."

But the new owner will need that document.

As the Canadian dollar has been steadily rising relative to the US dollar, I 
would expect to see more Canadians shopping South of the border for their 
new baby. Just an extra market to tap in to. If you are selling then I would 
suggest an advert in GAM on Yachting http://www.gamonyachting.com/cover.html 
as it seems to be the place to move boats in Canada.

On a per capita basis there are more boats registered in Canada as a 
percentage of population than in the US - and as a seller you only need one 
buyer. By the way, in Canada boats are not registered below 9.9hp or if 
engineless like canoes, dinghys etc.

Just an FYI.

Hope that this info is helpful to someone out there.

Cheers,

John - and no I don't work for GAM





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