Canada Waives Imported Ship Duty

Canada Waives Imported Ship Duty

Canada’s federal Department of Finance has announced a proposal to waive the payment of a 25% customs duty on imported cargo vessels and ferries of more than 129 m loa. The duty applies to ships active in both the domestic and ocean trades and the announcement has been welcomed by the shipping industry. The duty was put in place three decades ago, ostensibly to encourage carriers to order newbuildings from domestic shipyards, but these yards have been unable to build vessels at competitive prices compared with Asian and European yards. It is proposed that a remission order be put in place to remit the customs duties paid or payable on or after January 1, 2010. Interested parties have been invited to submit their views in writing by December 11 to the international trade policy division at the Department of Finance.  [Ships from the US and Mexico can already enter Canada duty-free under NAFTA.]