Can a Canadian Own a N-Reg amateur built aircraft?

[Nanart]

I've been looking at buying a home built aircraft in the US and have it all planned to go look at it. the problem I have is that the plane is new and isn't even done testing yet. According to TC you cannot import an amateur built aircraft into Canada unless it has 100 hours of air time which this plane doesn't. So can I buy the plane and fly it with the N-Reg and my FAA private license until it gets 100 hours on it at which point I can import it into Canada?

[Sasquash]

Don't forget to check 202.42(1) regarding the maximum period of time a foreign aircraft can be in Canada..

[Brewguy]

Living in a border town, I've known a lot of people who buy an N registered, and keep it in the US (flying with their FAA license). Cheaper / easier access to hangars, more small strips with active clubs, cheaper insurance, etc. Depending on where you are, that may be an option while you build some hours on it.

[photofly]

According to US law the instant the American owner of an N-reg aircraft sells it, the certificate of registration becomes invalid. If it's sold to an American, the vendor fills in the form on the back (or somesuch) which acts as a temporary CofR until the FAA issues a new one.

However it's explicitly stated that the temporary certificate can't be used for foreign owners, and in fact non US citizens or bodies are not eligible to receive a certificate of registration for an N-reg aircraft.

The "official" way to export an aircraft is to 1) buy it, 2) deregister it while still in the US, 3) get a temporary registration from Transport Canada, 4) change the tail number in the US (with duct tape if you have to) then 4) fly it to Canada where it gets inspected etc. and a permanent certificate is issued.

The "unofficial" way is to arrange for the sale to complete only after the aircraft is sitting in Canada; either because the owner trusts you to hand over the dosh long after he's parted with the aircraft, or because he ferries it into Canada for you, or because you've put the money into escrow with a trusted broker (AOPA/COPA maintain lists.) If you're flying it you need an FAA ticket, obviously, because it's still on its US certificate of registration.

If you don't use either of these methods, then you're flying an aircraft without a valid certificate of registration, and if you get ramp checked, or the lack of correct paperwork comes to official attention some other way, then you have the potential for a lot of trouble.

Naturally whichever method you use, you'll need insurance of the appropriate type.

The 100-hour issue is a bolt-on problem that will have to be solved somehow - good luck!

PS. the way some people "own" N-reg aircraft is to set up a US corporation to front it, which is legal. But unless it's a very expensive aircraft the lawyer's fees are likely to be more than the extra costs of importing it legally. Even if you do keep it on the US register in that way, Revenue Canada will still want their 13% HST when it enters the country.

[Beefitarian]

Hedley would be the one to talk to. He was explaining once when we were posting about a pitts that importing a home built is easier than a commercially produced aircraft because the regulations are still a little looser.

[photofly]

You can read Hedley's suggestions here:
viewtopic.php?p=395998#p395998

[ahramin]

It's not that expensive to set up a US corporation. Make sure you choose the state carefully though or you may get a big tax bill.

[photofly]

The expensive part is not the corporation. The FAA's test for the eligibility of a corporation to own a US aircraft is (FAR 47.2):

A corporation or association organized under the laws of the United States or a State, the District of Columbia, or a territory or possession of the United States, of which the president and at least two-thirds of the board of directors and other managing officers are citizens of the United States, which is under the actual control of citizens of the United States, and in which at least 75 percent of the voting interest is owned or controlled by persons that are citizens of the United States.

You can arrange that, by having an attorney fulfil those roles for you, but it's expensive.

[Nanart]

Does anyone know anything about the owner trust agreement:

One method for Non-Citizen individuals or corporations to register aircraft with the FAA is
to transfer title to a U.S. Citizen to hold in trust for the benefit of the Non-Citizen. The Trustee can
be either an individual or corporation, as long as it meets the Citizenship requirements of the Act.
The FAA recognizes this arrangement, often referred to as an owner trust agreement ("Owner Trust
Agreement"), as a legitimate vehicle to satisfy the U.S. Citizenship requirements of the Act. 4
The Owner Trust Agreement creating a trust with one or more Non-Citizen beneficiaries
must provide that such beneficiaries will not have more that 25 percent of the aggregate power to
direct or remove the trustee; although they may have more than 25 percent of the beneficial interest
in the trust. The Trustee must execute and submit to the FAA an Affidavit confirming that fact. 5

The trustee in this case would be the seller of the aircraft

Could this be an option until I get 100 hours on the aircraft to import it into canada... Also under this agreement can the aircraft be kept in Canada if I apply for this

Federal Aviation Administration Special Airworthiness Certificate - Experimental, for the purpose of operating a United States - registered amateur-built aircraft in Canadian airspace

[Beefitarian]

Question, if you have it owned by a company you still need a FAA license right?

[photofly]

Yes, the licence nationality follows the tail-number.

[Nanart]

If the seller agrees can I have the aircraft brought to canada still under the sellers ownership but I pay for all operational costs and under CAR 202.42(1) keep it in Canada for 90 days at which point I can accumuate 100 hours on the aircraft and then purchase and import the aircraft

[robertsailor1]

Why would a seller want to take the risk?????

[trey kule]

Revenue Canada will still want their 13% HST

one word.....ALBERTA!!!......5% (that doesnt count as a word)

Nevada and Delaware are the two states I have been told are the best to register aircraft, but it is easier to stay out of trouble than to get out of it.....just saying is all.

[photofly]

Yes, I wish I'd thought of Alberta a year ago. I would have saved a few $$$! Next time, eh?