What happens when your boat has completed 12 months on Canadian Border Services Agency (CBSA) Form E29B
Brief summary of the E29B: An owner of a Canadian registered boat has not paid Canadian taxes on his boat, therefore, navigating in American waters, but who wishes to bring his boat into Canadian territory for winter storage for example, he is required to obtain the E29B from the CBSA. Link to full details. Important note that while your boat is in Canada on a E29B, the boat cannot be used for pleasure and that the expected duration is 12 months. The boat must then leave Canadian territory after 12 months.
Customs in Lacolle on the Richelieu river.
Rules are provided for in the event that the boat remains in Canadian territory for more than 12 months. After the first 12 months, owner must pay 1/120 of the GST per month, and this until the 24th month. Only option should the owner wish to leave the boat in Canada. For example, your boat was valued on the E29B at $ 150,000 CAD, so to calculate the monthly fee: $ 150,000 / 120 (month) x 1 month x 5% (GST) = $ 62.50 Remember that this extension is only possible for 12 months following the expected end of your E29B. There are rules that apply to govern this monthly payment. We all know that the Covid-19 has caused several owners to leave their boat in Canada, but the CBSA specifies that the rule is part of a law and that this law does not mention an exception rule, therefore the agency must apply the law blindly and collect the amounts mentioned. So after 24 months, if the boat is still in Canadian territory, the CBSA will apply the following rule: GST becomes payable in full if the boat remains for more than 4 years, then all taxes are payable. Payment must be made according to the rules of form B3.
Of course, if the boat leaves Canadian territory these rules no longer apply. After 4 years, the boat will have to be ceded to the crown or else destroyed under its supervision.
You always have the possibility to fully pay duties and taxes, and then the right to remain in Canada and of course to navigate and fully enjoy your boat at all times without any restrictions. For more details, consult the two memorandums of the agency, D8-1-1 and D8-1-4 or call 1-800-461-9999 CBSA.
