International Shipping News & Insights for Profitable Shipping - 31 July 2010
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Daily Fairplay News 19 Nov 2009

Canada could end duty

CANADA could drop its duty on imported ships, which has been attacked by companies that see it blocking replacement of Great Lakes ships.

The federal finance department has asked for comments on a plan to end the duty on ships of 179m-plus, including cargo ships on the lakes and in East Coast waters.

The Canadian Shipowners Association has lobbied for years against the tariff, which Ottawa could end as early as January.

But Canadian Shipbuilding Association president Peter Cairns said members want to keep it for ferries and smaller vessels, which they can build.

Chamber of Maritime Commerce president Ray Johnston said the duty imposes adds C$10M ($9.5M) to C$15M to the price of a new ship.

He cited one owner who called the duty like “paying for five ships and only getting four”.
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