Living Abroad Life in Canada

Boat import duty from Canada to the US

Ucha Vekua

19.12.25

Read time 3 minutes

Canada and the US share thousands of miles of border and waterways, so some Americans think about making a cross-border boat purchase.

You may have found a great deal on a used sailboat in Canada, or you are buying a new one from a Canadian manufacturer. Either way, you'll need to pay import duty when you bring that boat into the US.

Most pleasure boats face import duties between 1.5% and 2.7% of the boat's value, and the exact rate will depend on the type of vessel.¹

That said, you also need to factor in potential tariffs and shipping costs if you're having the boat delivered to get an accurate idea of what it'll cost you to import your vessel.

Here's everything you need to know.

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Table of contents
What is boat import duty? How is boat import duty calculated? Typical US duty rates by boat type How and when you need to pay boat duty

What is boat import duty?

Import duty is a tax the US government charges on goods brought into the country from abroad. When you import a boat from Canada, US Customs and Border Protection (CBP) collects this duty based on the boat's type and declared value.

The duty applies whether you're buying a brand new boat from a Canadian dealer or a used vessel from a private seller. You pay it when the boat crosses into US territory, either at a land border crossing or when entering a US port by water.

If you're thinking about importing a boat from Canada, it's also important to think about tariffs.

Recent trade policy changes have introduced tariffs on Canadian goods that can reach up to 35%, though these rates can change based on ongoing negotiations between the US and Canada.²

These tariff rates can change quickly, so make sure to check the current ones before making a budget for your purchase.

How is boat import duty calculated?

Import duty is calculated as a percentage of the boat's transaction value. This is typically the price you paid for the boat.

You'll need to provide a commercial invoice to the US Customs and Border Protection and convert all foreign currencies, such as CAD, into USD.³

Import duty is separate from other expenses like shipping, insurance, or any state taxes you'll pay after the boat enters the US, if any are applicable in your state.

Typical US duty rates by boat type

US Customs uses the Harmonized Tariff Schedule to determine duty rates for different types of boats. The rate you pay depends on your boat's classification and things like propulsion method, size, and intended use.

Most pleasure boats fall into one of these categories:

Boat type	Duty rate¹
Sailboats (with or without auxiliary motor)	1.5%
Motorboats (inboard/outdrive, cabin cruisers)	1.5%
Outboard motorboats	1%
Inflatable boats	2.4%
Canoes	Duty-free
Rowboats (not designed for motors or sails)	2.7%

If you're unsure which category your boat falls into, CBP will make the final classification determination at the border. They'll primarily look at your boat's design and features.

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How and when you need to pay boat duty

You pay import duty when your boat enters the US. Usually, this means either at a land border crossing or when arriving at a port by water.

At the border, you'll declare the boat to CBP and present your documentation. The CBP officer will review your paperwork, verify the boat's value, and calculate the duty owed.

You'll need to pay this duty before the boat can be released into the US.

Required documents

Typically, you'll need the following documents to import your boat from Canada to the US:⁴

Proof of ownership: Bill of sale showing the purchase price and date, plus any title documents if your boat is titled in Canada

Commercial invoice or receipt: This should show the boat's value in USD

EPA compliance documentation: Engine Declaration Form 3520-21 to prove that the boat meets EPA emissions standards

Trailer documentation (if applicable): If you're towing the boat, you'll need the trailer's 17-character VIN and DOT Form HS-7 for the Department of Transportation

It's a good idea to have both original documents and copies available because CBP may want to keep the copies for their records.

Bottom line

You can import a boat from Canada to the US, but it's important to prepare for duty fees and, potentially, tariffs if they're in effect.

You'll also need to deal with some paperwork, such as the Engine Declaration Form 3520-21.⁴

Many American boat owners research duties and taxes, but overlook a high cost: international payment fees.

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Sources

United States International Trade Commission - Harmonized Tariff Schedule, Chapter 89
National Marine Manufacturers Association - White House Announces New Tariff Adjustments
US Customs and Border Protection - What value should be on the commercial invoice submitted to US Customs and Border Protection?
US Customs and Border Protection - Importing a Boat for Personal Use into the United States

Sources checked 09/29/2025

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