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Old 14-03-2011, 11:06   #1
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Cruising the World with a State Registration ?

Two questions:
My boat is state registered (DE). It can not be documented as I am not a US citizen. I do plan a circumnavigation and I heard stories about foreign countries/territories not accepting state registration.
Q: can anybody confirm that foreign countries/territories do not accept US state registration?
Q: What are possible low cost solutions?
Thanks a lot for your thoughts!
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Old 14-03-2011, 11:08   #2
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Re: Cruising the world with a State registration?

I look forward to reading the answers. We are not documented but since my far superior half is a citizen we could do so if needed.



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Old 14-03-2011, 11:16   #3
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Re: Cruising the world with a State registration?

in the med we see many turkish and isreali vessels registered in dover ,delaware flying the us flag.

would look into this,as dont belive a state rego is going to cut the mustard out side of us waters.
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Old 14-03-2011, 11:33   #4
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Re: Cruising the world with a State registration?

I don't know of any list of specific country-by-country list of this particular regulation, but I have heard that for some reason the French Caribbean islands can be a problem, particularly Guadeloupe I believe. In every country I've ever cleared into they want to see your US Coast Guard documentation paper, but I think that is just to prove you own the boat. I don't know how they would react if I pulled out a wallet-sized paper from my state instead. Particularly when you don't speak the language, or don't speak it well, it is not usually a good idea to surprise officials with unusual looking paperwork. However, I had some friends who owned a series of homebuilt small cats and tris and they sailed across the Atlantic to the Azores and Portugal several times and back via the Caribbean, and they were always just state registered. They somehow managed to do it.
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Old 14-03-2011, 11:35   #5
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Re: Cruising the world with a State registration?

Create a small company, Inc. in the US (Delaware is perfect for that) with only purpose to own the ship. You don't even need money as the boat would be your participation in capital. You will be able to document the boat as the company will be US. You can even have some tax benefits .
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Old 14-03-2011, 12:46   #6
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Re: Cruising the World with a State Registration ?

arjand, There are many countries that will not accept a state registration as proof of ownership and in some countries the fines and potential problems are serious. I would suggest that you research the countries you plan to visit to see what their exact policies are. Chuck
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Old 14-03-2011, 12:54   #7
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Re: Cruising the World with a State Registration ?

Thank you all very much! The boat is owned by an DE Inc so I guess that makes most sense, thank you all!
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Old 14-03-2011, 12:57   #8
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Re: Cruising the World with a State Registration ?

Well at various times on various boats I have done it with State, CG documentation, BVI and British SSR (Which is not proof of ownership) and never had a problem. All of them allow you to legally fly a US or British flag. I do carry proof of purchase.

I have never had any suggestion that the officials knew or cared about the type of registration and all the posts appear to be anecdotal.

Has anyone personally been 'busted' while using a State registration?
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Old 14-03-2011, 15:09   #9
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Re: Cruising the World with a State Registration ?

@arjand - how about registering it in the country of which you are a citizen?
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Old 14-03-2011, 15:09   #10
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Re: Cruising the World with a State Registration ?

Certainly in the EU, all that is required is that the yacht can prove its nationality. State registration would be fine IMHO

Dave
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Old 14-03-2011, 15:28   #11
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Re: Cruising the World with a State Registration ?

In FP we run into a US boat with this problem. They were not kicked out not arrested but went thru too many too unpleasant conversations with the administration there. To make the situation worse they did not speak French.

b.
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Old 16-03-2011, 06:36   #12
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Re: Cruising the World with a State Registration ?

@ auspicious: In order to register in the Netherland (I am Dutch) I will first have to import it and pay VAT.... That would set me back USD 20k....

@ barnakiel: FP is French Polynesia?
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Old 16-03-2011, 07:36   #13
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Re: Cruising the World with a State Registration ?

@ alecadi: an Inc does not work if is is owned by only foreign nationals. I guess I will need a cheap registration outside the US. Bizar.
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Old 16-03-2011, 07:46   #14
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Re: Cruising the World with a State Registration ?

Quote:
Originally Posted by goboatingnow View Post
Certainly in the EU, all that is required is that the yacht can prove its nationality. State registration would be fine IMHO

Dave
FWIW, for foreign vessels visiting Australia,you have to prove the nationality of the yacht and here you can ONLY do this if the yacht is on the your (or any) nations register, a state registration won't cut it.
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Old 16-03-2011, 08:29   #15
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Re: Cruising the World with a State Registration ?

Quote:
Originally Posted by arjand View Post
@ auspicious: In order to register in the Netherland (I am Dutch) I will first have to import it and pay VAT.... That would set me back USD 20k....

@ barnakiel: FP is French Polynesia?
Not to put too blunt of a tip on this, but I think you need to rethink what you are trying to do. I assume you are visiting the US on a resident visa, (green card)? But you want to travel the world on your boat? Once you leave the US you have no ties here, except a state registry, (which is completely seperate from a national resgistry).

The US operates like a country within a country. The states only have jurisdiction within themselves, and only by agreement with other states, (kinda like a minature EU).

The state registry is basically a tax stamp, and serves no other purpose.

I don't know why you bought your boat here, but once you leave, the US becomes a country you once used to visit. The requirement of being a citizen to register a boat in a nation is specifically to prevent the sort of "tax evasion" you propose to do. If you keep your visa and remain in US waters it is a non issue, but once you leave you are again a citizen of Netherlands, and subject to its laws...and taxes.
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