Boats taxed as of June 22, 2018
Decided in retaliation for U.S. taxes on steel and aluminum imports to the United States by the Trump administration, a series of tariffs are being implemented this Friday, June 22, 2018. They affect in particular the recreational sector, through a 25% tax on the following categories of boats:
- Sailing, pleasure or sport boats, even with auxiliary engine, for maritime navigation
- Sailing, pleasure or sports boats, even with auxiliary motor (other than for maritime navigation)
- Boats, pleasure or sport, motorized (other than outboard), for marine navigation
- Boats, pleasure or sport, motorized (other than outboard) (other than for marine navigation), length <= 7.5 m
- Boats, pleasure or sport, motorized (other than outboard) (other than for marine navigation), length > 7.5 m
- Boats, pleasure or sport boats, rowing boats and canoes, unit weight <= 100 kg (except motor boats other than outboard, sailing boats, even with auxiliary motor, and inflatable boats)
- Boats, pleasure or sport boats, rowing boats and canoes, unit weight > 100 kg, length <= 7,5 m (except motor boats other than outboard, sailing boats, even with auxiliary motor, and inflatable boats)
- Boats, pleasure or sport boats, rowing boats and canoes, unit weight > 100 kg, length > 7.5 m (except motor boats other than outboard, sailing boats, even with auxiliary motor, and inflatable boats)
With the exception of inflatable boats, all pleasure craft imported from the United States will be subject to this sharp increase in customs duties.
A heavy uncertainty
If the future taxes had been envisaged for several weeks, the French nautical sector did not have time to prepare for them. While waiting for the declarations of the American shipyards, several importers did not wish to express themselves. The uncertainty about the timing of the taxes and the duration of their application in case of agreement with the US government, is detrimental to professionals. "How will it work for the boats we have already ordered and paid for, but which have not yet arrived?" asks Alban Ramora-Mazier, director of Inshore Yachts, distributor of the Chris-Craft and Cobalt Boats brands. "This political uncertainty is affecting our purchases. On the other hand, how will the American brands produced in Poland, such as Sea-Ray, or the American shipyards owned by the Bénéteau Group, be taxed?"
Pricing issues
In addition to administrative problems, the impact of a 25% tax on the price of boats will have commercial consequences. "Our brands Chris Craft and Cobalt are already on the high-end market, if we add 25% it will be difficult. But as far as we know, the shipyards are not going to make any effort. For Cobalt, international business represents only 3% of the activity. It will be up to us to apply the price increase," adds Alban Ramora-Mazier. "In addition, a 25% uncertainty on the final price for a 600,000 euro boat makes discussions with the client problematic
What's next?
Future discussions at the WTO between the United States and the European Union will determine whether the situation continues. Let's hope for the French boating industry that the law of retaliation, which is in fashion in the current period, does not push the United States to take customs measures against European boats.
