The Authority on Canada's Recreational Boating Industry

Message From The Editor

TARIFFS AND THE LESS SAID THE BETTER

We are now just over two weeks into the new 10% tariffs being applied to boats and there remains a lot of discussion and uncertainty about how these will impact our businesses. I just called the Canada Border Services Agency and got a senior advisor who told me that all boats being imported from the United States, new or used, were affected but that an engine alone was not impacted.

Seems surprising…could we ship engines separately and escape the tariff on that? The first CBSA advisor I spoke to seemed uncertain. He did not seem to be a boater either. But he was clear that tariffs are applied, and have to be paid, at "importation" so a dealer will need to pay the tariff as their boat comes into Canada and not any time after. Therefore, importing a boat for inventory will immediately attract payment of the appropriate tariff.

I didn't ask about bringing boats into Canada in Bond but I believe your OEM or customs agent can guide you through that. It may help the dealer's cash flow in important ways as long as your OEM suppliers are willing to work with that.

Last week, I wrote in this column that I believed the entire marine industry in Canada, coast to coast, should react in the same way to Canada's imposition of 10% retaliatory tariffs on American boats. I still feel that we should all be singing from the same hymn sheet, but several readers were quick to point out that we should not show the specific tariff amount.

My mistake there…I said we should show the 10% tariff clearly on the sales contracts but that would reveal the dealer's net cost on the boat. Bad idea. Let's all agree not to do that.

Worse, it is now emerging that dealer costs will rise with other tariff impacts, not just the Canadian 10% tariff. The new U.S. tariff on parts coming into America from China will increase the cost of many components. Tariffs on steel and aluminum coming into America from Canada, Mexico, Europe and China will also increase costs.

The total cost impact on any given boat will almost certainly be more than just Canada's 10% tariff, but how much more will vary - perhaps widely. It's a matter of what parts are used and where they came from.

So, there isn't even a clear explanation that you could offer your buyers. As much as I am in favour of being open and up front with buyers, the best route is to simply adjust your pricing accordingly and say nothing to draw attention to the tariffs.

The NMMA is working on another letter asking the government to consider compensation to dealers in the short term and also for our accessory and boat manufacturers to be considered for the aluminum and steel compensation. The NMMA's office in Washington D.C. is asking for a meeting with the Vice President to continue putting pressure on in the U.S. and we are also asking for exclusions on the aluminum and steel tariffs in the U.S. which are affecting the Canadians.

The NMMA and all the marine trade associations will continue to work hard on this matter with the government, but in our dealings with the public, this is just the new reality. We are in the middle of a great season all across Canada so, we should focus on the summer weather, the otherwise solid Canadian economy and just get on with business.

Follow the news and developments here in News Week. Get all your people reading it regularly. There is no cost to subscribe and it's important to be up to date.

Back to the tariff details; the list is at www.fin.gc.ca - scroll down to the yellow area for the new tariffs. Then click that and look near the bottom for the boat listings. Special thanks to Marc Duhamel at Legend Boats who shared a memorandum D10-14-21 from April 23 2014 that defines boats and motors. Richard Tremblay at the CBSA call centre in Montreal clarified to me that a loose outboard motor attracts no tariff, but if it is mounted on a boat the whole package will attract the 10% at the border.

Anyway, when it comes to the new tariffs - for now, the less said the better.

Andy Adams, Editor
aadams@kerrwil.com

Feature

MIKE GRIDLEY: SHOW CHAIRMAN OF GRAVENHURST'S ANTIQUE BOAT SHOW

We had the pleasure of speaking to Mike Gridley, Show Chairman of the Gravenhurst Antique Boat Show, which took place this past weekend, on July 7th as part of the Toronto Chapter of the Antique and Classic Boat Society. Read More

Changing Scene

	BOATING ONTARIO ANNOUNCES NEW "MARINEWORX" DEVELOPMENT FUND At the June 6th Boating Ontario Golf Tournament, Rick Layzell CEO of Boating Ontario announced a new initiative called the MarineWorx Development Fund. Layzell went on to explain that through the process of creating their new strategic plan, they came to realize... Read More
	IBEX EXPANDS INTERNATIONAL PROGRAMS TO ATTRACT A DIVERSE DELEGATION OF GLOBAL VISITORS The 28th International BoatBuilders' Exhibition and Conference (IBEX), held October 2nd through 4th at the Tampa Convention Center will include expanded programs for international visitors. Read More
	BARNACLE SYSTEMS AWARDED "STARTUP OF THE YEAR" FROM VIATEC Barnacle Systems has been named "Startup of the Year" for 2018 by VIATEC, an organization focused on facilitating the growth of tech companies in Victoria, BC, Canada. Barnacle Systems was announced as "Startup of the Year" at the annual VIATEC Awards. Read More

Events

HERVÉ GASTINEL, CEO GROUPE BENETEAU, WILL OPEN METSTRADE 2018

The 2018 METSTRADE Show opening ceremony - 'Breakfast Briefing' - will be held on 13 November and will include a keynote address by Chief Executive Officer of Groupe Beneteau, Hervé Gastinel. Read More

Education

NASBLA & ABYC ANNOUNCE PARTNERSHIP TO OFFER NEW MARINE EDUCATION COURSES

For the first time ever - the National Association of State Boating Law Administrators (NASBLA) is opening up two of their courses previously only available to law enforcement officials. Read More

IBEX SUPER SESSIONS -MARINA 101 & STUDY TOUR, OFFERED BY THE INTERNATIONAL MARINA INSTITUTE

The International Marina Institute (IMI) is hosting a one-day Marina and Boatyard Study Tour leading into The International Boatbuilders' Exhibition and Conference (IBEX), on October 1, 2018. Read More

New Products

XTREME BOAT PROOF MAY BE THE LAST COATING YOU WILL EVER HAVE TO APPLY

Xtreme Boat Proof is dedicated to providing new generation durable coatings and sealants for the marine industry applied using our Fusion Gun. Products like fastest curing polysulphide teak sealers and anti-graffiti silicone coatings… Read More

NEW NAVPOD PEDESTALPOD WATERPROOF HOUSING PROTECTS MARINE ELECTRONICS ON THE BOW OF SPORTFISHING BOATS

NavPod, manufacturer of waterproof housings for marine electronics, has announced an all new product line - the PedestalPod 70 Degree. The new line is specifically designed for protection of marine electronics on the bow of sportfishing boats. Read More

TITAN MARINE PRODUCTS ANCHOR FLIP SWIVEL

Canada Metal (Pacific's) brand, Titan Marine Products has a clever anchor flip swivel to make hauling your anchor easier and less likely to cause any hull damage. The Duplex Stainless Steel Self-Righting Swivels provide self-righting function… Read More

Launchings

THE LAUNCH OF THE NEW PRESTIGE 590 FLYBRIDGE

For the 2019 season, Prestige will be offering a new Flybridge yacht with far-reaching scope: the Prestige 590. This new Prestige concentrates all the latest evolutions of the brand while respecting the tradition and heritage of Prestige Yachts. On the exterior... Read More

Boating Stock Market

THE BOATING STOCK MARKET

Muskoka Boat and Cottage Show July 27 - 29, 2018 Graventhurst, ON	Port Credit In-Water Boat Show August 24 - 26, 2018 Port Credit, ON
Victoria Classic Boat Festival August 31 - September 2, 2018 Victoria, BC	... View All Events

Daily Updates

For daily updates and more interesting news follow
Boating Industry Canada on LinkedIn.

Boating Industry Canada is published by AD ASTRA Media Inc. in association with Kerrwil Publications Limited
538 Elizabeth Street Midland Ontario, L4R 2A3