Private aircraft import

[photofly]

C'mon photofly, you're smarter than that. A legal contract with funds in escrow is acceptable, you're not asking for a free ride, the deal works both ways. Like I said, probably not worth it on a cherokee but we have done this for bigger projects.

OR, if you made a deal where you paid them to fly it up N reg and then did the deal here.

I know how it works, I’ve done it twice. But you don’t get to give the plane back and keep your money if you later discover it’s not eligible for import.

You can make a sale contract that stipulates importation success

Like I said, this is not a realistic proposition for a Canadian buyer to get from a private US owner selling a piston single. They neither know nor care about Canuckistan aircraft standards; most US airplane owners don’t know where Canada is and think it’s part of France. Why would anyone cut a deal that depends on a foreign government?

When you explain the difficulties with getting an airplane into Canada you’re already at a huge disadvantage to any potential US buyer. “Wait, so you want to give your money to some cockamamie escrow outfit and fly off in my plane to Canadaland, and I don’t get my money for a week? If your escrow buddies are even legit? What kind of BS deal is that when Larry from the next town is driving up with his son and a certified check for me this afternoon?”

You need to do your paperwork research before purchase, and caveat emptor.

[photofly]

Just to add: the process of verifying an aircraft can be imported into Canada has two parts:

1. Make sure that the paperwork is acceptable. This is where you make sure that all modifications and repairs were supported by the correct data, that all STCs applied were eligible, and that the airframe, engine and propellor ilsted in the logs are all correct and match the TCDS. You can do this from Canada, if you can get copies of the logs. What about Airworthiness directives - are there any in Canada for that aircraft/engine/propeller that aren't required in the US and that will cause you trouble to be done, before import?

2. Make sure the reality of the airplane matches the paperwork provided: for example, is the engine actually on the airplane the same serial number listed in the log books? This can be done by an A&P, or yourself, in the USA. Anything you don't check (magnetos? seatbelts?) be prepared to pay to replace.

The Minister's delegate has access to the same airplane and paperwork as you do; and follows the same process, which is deterministic and not stochastic.

[fleetcanuck]

Years ago an Aero Commander twin was imported. Looked quite impressive. During the import it was discovered the engines had been overhauled by a shop not on the list approved by TC. Two majors and a lot of money later the import was completed.

[photofly]

Does TC maintain a list of "approved" engine repair shops in the US?

Per CAR standard 571.04 “Specialized Maintenance”
“ iii) In the case of engine overhaul, an AMO with only an engine category can perform the overhaul, provided that any specialized NDT/welding forming part of the overhaul is carried out by an AMO approved for those processes.”

In the US, according to AOPA:

In most cases, an FAA-certificated airframe and powerplant (A) technician can legally overhaul your piston aircraft engine and return it to service, providing it doesn't need any major repairs. FAR Part 43, Appendix A (b)(2), says a major engine repair is one of three things: (i) Separation or disassembly of a crankcase or crankshaft of a reciprocating engine equipped with an integral supercharger; (ii) Separation or disassembly of a crankcase or crankshaft of a reciprocating engine equipped with other than spur-type propeller reduction gearing; and (iii) Special repairs to structural engine parts by welding, plating, metalizing, or other methods.

[geodoc]

Not only specific paperwork, specific evidence of compliance but probably most importantly, the correct sequence for submittals, acceptance, etc. needs careful adherence. I have a friend in the US who has done many imports and exports in both directions. Would highly recommend and will send you his contact info if you wish to PM me. (He's in Seattle). Also can do comprehensive pre-purchase inspections.

[tommywcom]

I believe the safest way of doing an import is to retain the service of a Transport Canada DMD from the get-go. I know it seems like a conflict of interest, but these individuals do provide private consulting services, and some of them even advertise.

Basically if a DMD is satisfied that a US aircraft is fit to be imported, it's a done deal. I'm not sure if the same DMD would do the actual approval or if it's a different individual. And if the aircraft cannot be imported unless certain things need to be addressed - you'd know that too.

[digits_]

Does anyone have a lead on a trustworthy AME to import a private single engine plane in the Vancouver area? Plane is located in Oregon, so it would probably be easiest to import it into Vancouver and then fly it to Manitoba. Or maybe Calgary would be feasible as well.

Does the tax due at import depend on which province you are performing the import in? Or is it GST only initially, and then Pst when you declare it in the province it will be based in?

[Kejidog]

God. Would it be worth the trouble to import a plane at all? It would have to be some smoking deal. Is a plane that is 30-35% more in Canadian dollars more economical than any other Cherokee that may be for sale in here in canada?

[photofly]

Domestic aircraft are priced in US dollars (explicitly or implicitly) so they’re equally more expensive than they used to be.

[AirFrame]

Does anyone have a lead on a trustworthy AME to import a private single engine plane in the Vancouver area? Plane is located in Oregon, so it would probably be easiest to import it into Vancouver and then fly it to Manitoba. Or maybe Calgary would be feasible as well.

I'd recommend Langley Aero Structures at the Langley Airport. They have done numerous imports.

Does the tax due at import depend on which province you are performing the import in? Or is it GST only initially, and then Pst when you declare it in the province it will be based in?

Tax is paid to the CBSA agency at the location of import. PST and GST are collected (or HST, as applicable).

[digits_]

Does anyone have a lead on a trustworthy AME to import a private single engine plane in the Vancouver area? Plane is located in Oregon, so it would probably be easiest to import it into Vancouver and then fly it to Manitoba. Or maybe Calgary would be feasible as well.

I'd recommend Langley Aero Structures at the Langley Airport. They have done numerous imports.

Does the tax due at import depend on which province you are performing the import in? Or is it GST only initially, and then Pst when you declare it in the province it will be based in?

Tax is paid to the CBSA agency at the location of import. PST and GST are collected (or HST, as applicable).

Thanks!

Why doesn't everyone import planes into Alberta then, to avoid PST?

[photofly]

In theory, if you rebase a plane into another province, provincial taxes are due on its value.

[digits_]

In theory, if you rebase a plane into another province, provincial taxes are due on its value.

So if you import it into BC, do the paperwork in BC, then fly it to your home in Ontario you would end up paying GST + BC PST + Ontario PST? Yikes.

[photofly]

Ontario vehicle tax for a plane purchased in Canada is called RST.

I think (but I’m not sure) that if you are a private individual resident in Ontario and you import a plane anywhere in Canada, you pay HST, because *you* live in Ontario. EDIT: yes, that’s correct, per the CRA website:

In most cases, the HST applies at the border to taxable importations of non-commercial goods imported by a resident of a participating province, regardless of the point of entry into Canada or customs clearance.

If you’re moving address into Ontario and you already own the vehicle then no RST is payable. So you could move to Alberta, import the airplane, then move back.

There’s no provincial register of airplanes (unlike cars) so there’s no mechanism for a province to police aircraft taxation.

[ahramin]

Ontario vehicle tax for a plane purchased in Canada is called RST.

I think (but I’m not sure) that if you are a private individual resident in Ontario and you import a plane anywhere in Canada, you pay HST, because *you* live in Ontario. EDIT: yes, that’s correct, per the CRA website:

In most cases, the HST applies at the border to taxable importations of non-commercial goods imported by a resident of a participating province, regardless of the point of entry into Canada or customs clearance.

If you’re moving address into Ontario and you already own the vehicle then no RST is payable. So you could move to Alberta, import the airplane, then move back.

There’s no provincial register of airplanes (unlike cars) so there’s no mechanism for a province to police aircraft taxation.

In actual practice the province looks at the federal aircraft registry to determine if the aircraft is in that province.

[photofly]

Has anyone from provincial government ever contacted you about an aircraft?

[ahramin]

Of course! Any aircraft registered to a British Columbia address will get a letter from the province demanding the PST be paid. How do they collect HST on aircraft purchases in Ontario? Volunteer payments only?

[Cessna 180]

You also have the option, though it may not be the most prudent, to keep the plane N registered, pay a trust company a fee to hold the ownership, and then just pay GST/HST upon import. A Canadian AMO (not just a mechanic) can maintain the plane, save for annual inspections. There are plenty of A&P mechanics here that will do the annual for you, or you can make the trip to the US to have it done.

You benefit from a simpler maintenance and modification regime, as well as higher value being N-registered. Licensing from Canada to the US is easy to convert, though it's only required if you fly outside of Canadian Airspace.

It's not nearly as common here, as Canadian licensing and maintenance is as close to FAA standards as they come, but it's likely the most common method of ownership in Europe.

[photofly]

Of course! Any aircraft registered to a British Columbia address will get a letter from the province demanding the PST be paid. How do they collect HST on aircraft purchases in Ontario? Volunteer payments only?

I know of nobody in Ontario who has been contacted to pay RST on an aircraft.

You also have the option, though it may not be the most prudent, to keep the plane N registered, pay a trust company a fee to hold the ownership, and then just pay GST/HST upon import.

No you don’t. CAR202.42. TC issues fines of up $5000 for every flight, if you get caught.

[RatherBeFlying]

It costs about $700 to register an Alberta corporation + annual report fee. Look up "Alberta Corporate Care".

You may also need a business bank account.

When it comes time to sell, you can sell the corporation, but would then have to set up another one for your new aircraft.