Quote:
Originally Posted by GregF
Hello,
I have been looking at adds for sailboats for some time now and have noticed several nice boats that are listed as being unable to be sold to US residents while in US waters. I am wondering why these boats are unable to be sold to US residents?
Thank you,
Greg
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From the
archives of the
Multihull Company....
As you are browsing through listings of potential catamarans to consider while you are online
shopping, Web Shoppingyou may keep recognizing a familiar phrase for boats
for sale that have you interested. Directly at the top of the listing you are looking at is a bolded “Not
For Sale In US Waters To A US Resident”, but what does this really mean? As a US Citizen are you not able to buy the
boat?
The language “Not For
Sale In US Waters To A US Resident” must legally be added to listings for non-US Registered boats that are in US Waters under a cruising
permit and placed for
sale by the owner. As the
current owner of the
boat has not paid the US Import Duty on the boat, a sale cannot legally occur on the boat while she is in US Waters, and a
broker cannot legally advertise the boat without making prominently clear that the boat is “Not For Sale In US Waters To A US Resident”.
Does this mean that a US Citizen cannot
purchase the boat? No, not necessarily..
There are several ways a sale could occur on the boat you are looking at as a US Citizen. The first and preferred way would be for the seller of the boat to
purchase a US
Customs Entry Bond and pay the US Import Duty due on the boat. Exact rates of the US Import Duty would depend on where the boat was built and can range from .02% to 1.8% of the value of the boat.
The second way would method would be an “Offshore Closing” or a closing that occurs in the
Bahamas or somewhere else outside of US Territory that is at least 12 nautical miles off the coast. An “Offshore Closing” transaction does complicate matters slightly as potential buyers for boats that have not been US Duty paid cannot board or view the boat while she is US Waters, so the transaction details must follow a strict protocol that abides by the laws of the United States. This will take the coordination and expertise of your
broker for a transaction to be completed properly.
Now, the
Florida Yacht Brokers Association is proposing a change to the US law to allow owners of used foreign flagged boats in US waters with a valid cruising
license to offer them for sale to US residents while in US waters, without paying duty, but to date this change has not been made. If and when these changes are made, this article will be updated to reflect the updated laws.
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