Changing N reg to C

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zulu168
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Changing N reg to C

Post by zulu168 »

I am new to flying and this questions has probably been asked before, what is/are the cost involved in buying an a plane from the states and changing to C registration in Canada. Thx.
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PilotDAR
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Re: Changing N reg to C

Post by PilotDAR »

Zulu, that's a very "depends" question. Certainly many thousands of dollars, variable upon the condition, and modifications to the plane, and the quality of paperwork accompanying it. There are mods and maintenance condition which are legal in the US, and not accepted by Transport Canada at face value, so you'll have to be a lot more specific to get a meaningful answer. If a plane close to what you're looking for can be found in Canada, most likely that will be a more cost effective way of purchasing.
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SuperchargedRS
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Re: Changing N reg to C

Post by SuperchargedRS »

What about spending a couple hundred to start a US LLC, register the plane to the LLC, convert to a FAA cert and just leave it N reg?
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cdnpilot77
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Re: Changing N reg to C

Post by cdnpilot77 »

SuperchargedRS wrote:What about spending a couple hundred to start a US LLC, register the plane to the LLC, convert to a FAA cert and just leave it N reg?

I accompanied a guy from the wipair factory to muskoka on his new floats because he was brand new to float flying. His 182 was n registered to his US company and he had an FAA license but was a Canadian, travelling on a Canadian passport. On clearing customs at the bush plane museum in Sault Ste. Marie, the CBSA met us at the dock and escorted him to the bridge to pay the $20k in import taxes that CBSA was "rightfully owed" as they had no proof the airplane would ever leave Canada. When asked if he could get it back upon leaving the country, he was told, you are a Canadian citizen flying an airplane in Canada, the tax is mandatory and payable regardless of where it is registered. They threatened him with the "you're lucky we are being lenient, you should have reported this when you bought it" nonsense. Moral of the story, you never know what you're gonna get when you cross the border.
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PilotDAR
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Re: Changing N reg to C

Post by PilotDAR »

you are a Canadian citizen flying an airplane in Canada, the tax is mandatory and payable regardless of where it is registered.
Yup! 'Been there, done that - twice! Once in YVR, and once in YKZ, both time in 182's. CBSA was very well informed as to the importation of aircraft, and how to value them. Happily, both times, I was legitimately importing the plane for a friend, so paying the taxes was not a problem.
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AirFrame
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Re: Changing N reg to C

Post by AirFrame »

Certified? Amateur-built? Too many unknowns here to give a useful answer.
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Panama Jack
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Re: Changing N reg to C

Post by Panama Jack »

cdnpilot77 wrote: I accompanied a guy from the wipair factory to muskoka on his new floats because he was brand new to float flying. His 182 was n registered to his US company and he had an FAA license but was a Canadian, travelling on a Canadian passport. On clearing customs at the bush plane museum in Sault Ste. Marie, the CBSA met us at the dock and escorted him to the bridge to pay the $20k in import taxes that CBSA was "rightfully owed" as they had no proof the airplane would ever leave Canada. When asked if he could get it back upon leaving the country, he was told, you are a Canadian citizen flying an airplane in Canada, the tax is mandatory and payable regardless of where it is registered. They threatened him with the "you're lucky we are being lenient, you should have reported this when you bought it" nonsense. Moral of the story, you never know what you're gonna get when you cross the border.

This kind of jack-booted thug mentality is really disturbing. Being a Canadian, travelling on a Canadian passport shouldn't mean anything.

Is he a Canadian resident? If so, then it makes some sense but if he was a non-resident he should have told them "Fk-you, I'm going back home." :butthead:
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cdnpilot77
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Re: Changing N reg to C

Post by cdnpilot77 »

Canadian resident officially, although Florida resident for 5months/year
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cgartly
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Re: Changing N reg to C

Post by cgartly »

SuperchargedRS wrote:What about spending a couple hundred to start a US LLC, register the plane to the LLC, convert to a FAA cert and just leave it N reg?
Doesn't work unless you are a USA citizen, FAA rules state that whoever controls the LLC needs to be either a citizen of the USA or a resident of the USA.

You can setup a trust though which is exactly what I have done, cost is approx $300 USD per year.

Sales taxes are payable the first time the A/C comes into Canada and I suggest keeping a copy of proof of payment in the A/C for subsequent trips.

I've done the above but have been debating recently about completing the change to C reg, in my case the cost is about the same as an annual plus $800 to the TC delegate who issues the C of A plus another $110 to TC for the C of R. Again depends largely on what type of A/C it is and how many mods there are, what condition the paperwork is in etc.
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Canadian Skyhawk
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Re: Changing N reg to C

Post by Canadian Skyhawk »

cgartly,

I've been thinking of doing the same thing. Not to avoid paying the import taxes - I'll gladly pay those - but rather to avoid onerous TC regs regarding a privately operated turboprop. Unlike the USA, in Canada there is no such thing (in practice) as a privately operated King Air. Any pressurized turboprop certified for more than 6 requires a 604 operating certificate. This means practically the same paperwork burden as operating a 703 charter operation. Just ridiculous!
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Re: Changing N reg to C

Post by x15 »

Curious

What if it is a much larger airplane. A friend of mine is currently working on getting a Challenger 300 going for a US resident that owns a company in Canada. Some travel to Canada will take place, but the airplane will be N registered.

The first time you come to Canada you need to pay taxes? On the selling price? Bluebook value? Any way around that?
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Re: Changing N reg to C

Post by photofly »

cgartly wrote:
SuperchargedRS wrote:What about spending a couple hundred to start a US LLC, register the plane to the LLC, convert to a FAA cert and just leave it N reg?
Doesn't work unless you are a USA citizen, FAA rules state that whoever controls the LLC needs to be either a citizen of the USA or a resident of the USA.

You can setup a trust though which is exactly what I have done, cost is approx $300 USD per year.
Is it hard to arrange insurance for an N reg aircraft based in Canada?
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