Fall 2004

little helmsman

How to Buy and Import a Sailboat From the USA

By Paul Nikkanen

The ideas and comments in the following article describes the process I went through 2 years ago to buy and import my sailboat from Newport, Rhode Island, USA.

In review of what I did, it came down to 5 steps from searching, to surveying, buying, insuring, and getting the sailboat home to the dock slip.

1. Determine what kind of boat you want and where to find it!
2. Select a surveyor!
3. Select a transporter!
4. Select a customs broker and insurance broker!
5. Delivery and enjoyment!

STEP 1 - Determine What Kind of Boat you Want and Where to Find it!

The search for a new sailboat is very exciting providing you have the time, interest, and patience to find the right sailboat for you. When searching for the right sailboat, you need time to travel to see the condition of the vessel, to learn more about the different kinds of sailboats, and to learn the specifications of the sailboat.

There are a number of places in Canada to find a sailboat. Before attempting to go outside Canada, take a look at your local sailing clubs, various boat dealers, and the Internet which, has a wealth of information. The following website has plenty of information to understand the different Canadian made boats available on the market today. To help you with your decision, there are complete specifications, prices, and drawings for each boat model. sailquest.com/market/index.htm For my own search I looked for a mono-hull keelboat that I could trailer to other waters easily and sleep on the boat for 3 to 5 days at a time. This meant approximately 23 feet in length, with a short draft of 1-3 feet and a trailer that could tow the boat to my next adventure.

At some point in your search you may decide that the only way to get the sailboat you want is to import it from another country. In this case I selected the United States of America as other countries have tougher challenges to bring a sailboat into Canada. For example, to import a boat from the USA that is made in the USA there is the normal GST tax, whereas if the boat is made in another country and you import it through the USA you pay an additional 9% tax in import duties.

There are a number of wonderful boating areas in the USA; the eastern coast has Annapolis (Chesapeake Bay), Boston, and New York. This article concentrates on these areas rather than the middle and western states.

If you are looking for a powerboat, catamaran, or other type of boat then the following process should be the same.

Here are a few websites that have lots of boats for sale and where I started my search.
yachtworld.com
yachtcouncil.com
boats.com
sailnet.com/boatsearch/listing/sail/index.cfm
sailmarket.com/search_listings.html

STEP 2 - Select a Surveyor!

The next step is to select a good marine surveyor with the proper experience and qualifications to give you a full detailed understanding of your new boat. A good place to start is to ask the various boat dealers, and/or boat brokers who they recommend to do a quality survey of your prospective new boat.

I selected a surveyor who worked near the boat I wanted to purchase; Thomas J. Ferguson located in Manchester, NH as recommended by a reputable boat dealer. He is fully qualified in sailboats, commercial ships, and marine systems. He has been involved in the marine industry for 20 plus years and spoke with a high level of knowledge of vessels and their structure. He did an amazing job providing numerous pictures, full description of the vessel, water penetration tests, MIC database search, recommendations for repairs, certificate of origin (without this you have to pay 9% more for import taxes) and estimates for fair market/replacement values.

The entire report was 18 pages in length and was used to provide information to the customs broker, the transportation company, and the insurance broker. The surveyor included various do-it-yourself guides, marine statistics, corrosion information, and the USCG navigation rules, which are probably not used in Canada, but are useful in getting to know the rules of the water.

Here is a picture of the boat from the surveyor:

The survey can also be used as a bargaining chip for reducing the price of the boat if there are defects you can live with and repair later. The cost of a good surveyor depends upon the location and experience of the surveyor but in general, I found the prices were a little higher in the USA than in Canada. The price will range from $15 - $20 per foot USD plus traveling expenses for a qualified boat surveyor.

The most important lesson is to not buy the boat without visually inspecting the vessel in person. Pictures show the more positive aspects of the parts, hull, and entire package which, when viewed at in person, appear much differently.

The other lesson is to consider the type of anti-fouling used in other countries. For example, certain anti-fouling paints are not legal in Canada and you want to ensure you don't have a huge job taking off the old paint. To sand down the hull to remove the old anti-fouling paint takes numerous hours of labour and can cost thousands of dollars. For more details on importing goods into Canada, consult the various government organizations.

STEP 3 - Select a Transporter!

The method of transportation depends on where and how far the new boat is located? If the boat is within driving distance, you might want to drive down and trailer the boat home. If you are concerned with driving the boat home, a reputable boat transporter can handle the job easily. Most trucking companies make the trip between Halifax, Nova Scotia and Florida every week and if they have a return load the cost is lower. ($1,000 to $3,000 depending upon the size of the boat). I selected Kingston Haulage and the contact information is available on the following website:nsc.ca

There are other ways to transport a boat, namely by water (sailing the new boat home), or combining water and ground, but there are quite a few good truck transporters in eastern Canada that can handle small and large vessels.

STEP 4 - Select a Customs Broker and Insurance Broker!

So what happens when you have found the right sailboat, made an offer, had the survey done, selected the transporter? The next step is to insure the boat before it is transported from its current location to your dock slip.

This can be more difficult than it sounds, as most people obtain their boat insurance from the same place they get their car and home insurance. In my case I had my car insurance with a broker for the last 20 years and believe it or not they would not insure the new boat, because it was located in the USA. Fortunately, I found a place that would insure the boat; a specialty boat insurance company in Toronto, Ontario. After one quick phone call and a fax of the survey the boat was insured for less than a regular insurance broker. JW Smith (the Customs Broker) and Robertson Insurance (the Insurance Broker) were very professional and quick to provide information and service.

The cost of the customs broker is $100 and they handled the paperwork, pre-paid the GST, and ensured that the paperwork was at the customs office when the transporter crossed the border with the vessel. There are many other customs and insurance brokers in Canada - please check your local phone listings and/or the Internet search engines.

I was impressed when Robertson Insurance looked up my sailboat and said, "Make sure you have a baby stay installed for increased stability". This is definitely not your typical insurance broker.

STEP 5 - Delivery and Enjoyment!

The last step in the adventure is to watch your boat get dropped off. You should plan in advance to be there to ensure everything is delivered properly.

A final note is that if you decide to register your new boat, be prepared to pay additional taxes at that time.

Good luck in finding your next boat.
L'escargot, Out!

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