Accessing U.S. Customs Information

General
1

We were approached by someone who’d been told by U.S. customs brokers that the current U.S. tariff regime introduces a complexity in cross-boarder purchases. Apparently, they were told, a document from a credible source indicating that Nonsuch sailboats were built with at least 60% US/Canadian/Mexican content is required to avoid the 35% tariff.

It’s been suggested that, because the original Canada/USA Free Trade Agreement was in effect before Hinterhoeller went out of business, that such a document might already be on file with U.S. Customs.

Is there anyone out there who knows their way around the Federal bureaucracy who could help find out how to access such a document, if it exists?

Thanks,

– Bob (on behalf of potential Nonsuch buyers contacting the INA)

2

Bob,
I assume this information would affect anyone wanting to purchase one of our boats above or below the border between our countries. If that is true then if I were in that situation I would want to find out everything I could about that. Or maybe just see where the wind wants me. If I end up in San Diego from British Colombia so be it. Or in Westbrook Ct. from Nova Scotia let the pirates make the deal. Sad to think about but real. Sorry I’m just dreaming of a better day.
Brian

3

Dave Harris would know the answer, he brokered 100’s of cross border deals from the first boat until this year

4

When I imported my Nonsuch from Canada in 2001 the definitive guide was the “Blue Book” and I referred to that with the customs agent and paid no fees. At first customs disagreed that it was covered by Nafta but came back a few days later after they did their cross checking and released the boat.

Things may be more complex now on what is currently covered or how.

Good Luck!

Peter Courtway

Passport NS36

5

Peter,
Thanks for the link to the .gov website for CPB. I suppose the saying ‘When all else fails read the instructions.’ applies to this thread. I’m thankful that NAFTA was in effect when you did and hope it is still in effect thru all this confusion.
Great boat name!.
Brian

6

Thanks, Peter, that was a helpful link. I could still use a lawyer / customs expert to decipher what I’ve learned so far from following it.

For anyone interested in joining me on a trip down a (rabid?) rabbit hole, here’s what I found and the reasoning behind me saying that I think(???) it means the current applicable tariff on Canadian boats imported to the U.S. is 26.5%[1].

For those who wish to follow, here’s the path by which I arrived at that.

FWIW, as near as I can tell, the “Harmonized Tariff Schedule” code for applicable to N22s is 8903.21, and for Nonsuch sailboats N26 and up is 8903.22. The 8903 refers to “Yachts and other vessels for pleasure or sports” and the .21 and .22 refer to sailboats of certain length overall.

There are additional “Stat Suffixes” which appear to further differentiate the descriptions, but which don’t seem to affect the tax rate. Which is a good thing, because I can’t figure out what the hell they are.

There’s a set of rules which I could only capture as an image that govern exactly which duties in a table are applicable:

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As near as I can tell, this translates to: Check column 1. The general rate counts. Since there’s a trade agreement with Canada, ignore column 2. BUT before you get too excited, check any footnotes on column 1.

The information in the relevant columns 1 & 2 for both the categories applicable to our boats reads as follows:

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The good news, I think, is that we get to ignore the 30% rate in column 2, because the “S” under the Special column stands for the USMCA trade agreement that covers Canada. The bad news, is the 1/ footnote next to the General column’s 1.5% rate tells you to look at rate heading 9903.88.03. That, in turn, says: “The duty provided in the applicable subheading + 25%”

Based on all that, I think (???) that the applicable import tax for a Nonsuch purchased in Canada and brought into the United States in 26.5%. For now. Until things change. Again.

If you’re still reading this, and still awake, and still care, then please let me know if my reasoning makes sense.

– Bob

  1. PLEASE run this by an attorney or customs expert before relying upon it for any decisions. I’m not an expert. This is just my best guess. ↩︎

7

In New England we say if you don’t like the weather wait five minutes.
I hope things get back to normal soon with this trade turmoil, it’s more unpredictable than the weather.
Brian